MediaNet Group Technologies Announces Results for the Third Quarter of 2012
Expanding Upon Unprecedented Growth
(firmenpresse) - BOCA RATON, FL -- (Marketwire) -- 08/13/12 -- MediaNet Group Technologies, Inc. (OTCQB: MEDG) (PINKSHEETS: MEDG), a global marketing company that provides consumers around the world with a variety of innovative, online shopping and entertainment opportunities, today announced financial results for the fiscal third quarter and nine months ended June 30, 2012.
Michael Hansen, President and Chief Executive Officer of MediaNet Group, stated, "We are satisfied with our results for the quarter. Our quarterly sales topped $151.9 million, three times greater than the first and second quarter combined sales of $49.5 million resulting in total sales for the nine months ended June 30 of $201.4 million. This quarter was in line with the Company's marketing strategy to attract traffic and business to our websites in order to drive incremental revenue from advertising and marketing programs. The continued enthusiasm for our recently expanded Xpress Gift Card auctions is also in line with our expectations. In addition, we experienced significant growth in our DubLi Network business and have seen increased acceptance of our international shopping malls, which continue to gain traction with many DubLi customers worldwide who appreciate the unique value proposition DubLi offers. The expansion of our customer acquisition program continues to increase traffic and build our DubLi brand. We expect our growth to continue to increase in the fourth quarter of 2012. Our investment in building our infrastructure is continuous and designed to support our future growth and development."
For the third quarter ended June 30, 2012, revenues increased 1,770.5% to $151.9 million compared to $8.1 million for the third quarter ended June 30, 2011.This is in line with the company's marketing strategy to attract traffic and business to our websites in order to drive overall sales volumes and incremental revenue from advertising and partner programs. Gross profit for the quarter was $0.9 million, or 0.6% of revenue, down 75% compared to $3.5 million, or 43.0% of revenue, in the same period of 2011 as a direct result of changing the format of the Xpress auction from low volume high margin goods, to high volume, low margin electronic gift cards. Net loss for third quarter was $2.3 million resulting in a loss per basic and fully diluted share of $0.01, as compared to a net income of $0.8 million, or net income per basic and fully diluted share of $0.00 in the third quarter of 2011. For the third quarter 2012, the weighted average number of basic and fully diluted shares outstanding was 366,506,095 and 381,089,154, respectively as compared to the same period of 2011, when the weighted average number of basic and fully diluted shares outstanding was 319,741,435 and 324,735,748, respectively. Net income or loss per share for both basic and fully diluted is computed on the weighted average number of basic shares outstanding because derivatives are considered anti-dilutive to net loss.
For the nine months ended June 30, 2012, revenues increased 1320.7% to $201.4 million compared to $14.2 million for the nine months ended June 30, 2011. Gross profit for the nine months was $1.5 million, or 0.8% of revenue, compared to $7.2 million, or 50.5% of revenue, in the same period of 2011. Net loss for the first nine months of fiscal 2012 was $8.2 million resulting in a loss per basic and fully diluted share of $0.02, as compared to a net loss of $1.3 million, or a loss per basic and fully diluted share of $0.00 in the first nine months of 2011. For the first nine months of fiscal 2012, the weighted average number of basic and fully diluted shares outstanding was 362,624,526 and 374,144,697, respectively as compared to the same period of 2011, when the weighted average number of basic and fully diluted shares outstanding was 270,679,678 and 274,008,730, respectively. Net loss per share for both basic and fully diluted is computed on the weighted average number of basic shares outstanding because derivatives are considered anti-dilutive to net loss.
MediaNet reports net income or loss on a GAAP and non-GAAP basis. Non-GAAP net income or loss excludes non-cash expenses for depreciation, amortization and for stock-based compensation ("SBC"). In the third fiscal quarter 2012, the charge related to SBC was $1.3 million, compared to $0.9 in the third quarter of 2011 Depreciation and amortization was $0.02 million in the third quarter of 2012, compared to $0.2 million in 2011. The result is that Non-GAAP net loss for the third quarter ended June 30, 2012 was $0.9 million compared to Non-GAAP net income of $2.0 million for the same period in 2011 or 0.6% and 24.7% of revenues, respectively. The non-GAAP measure is reconciled to the corresponding GAAP measures in the accompanying financial tables.
MediaNet Group Technologies, Inc. (OTCQB: MEDG) (PINKSHEETS: MEDG), through its wholly-owned subsidiaries under the DubLi brand addresses consumer needs both online and offline through innovative engagement models, as well as virtual shopping experiences. Through its DubLi.com website, the company also creates tremendous opportunities by helping entrepreneurs both large and small create micro-distributor organizations by joining Dublinetwork.com. MediaNet Group Technologies main focus is to provide consumers around the world with the highest online value for their shopping and entertainment opportunities. The foundation of MediaNet Group was built upon an innovative business concept, a global presence and a consumer-centric business model that seeks to capitalize on global economic trends and changing consumer behaviors. The central hub of the MediaNet Group universe is DubLi.com, a comprehensive online shopping and entertainment community. DubLi Network is the sales and marketing engine for DubLi.com that is driven by a marketing network of Business Associates who use word-of-mouth advertising, the most effective form of direct selling, to sell a variety of memberships and packages that generate traffic to DubLi.com. DubLi Partner offers a white-label version of its DubLi.com platform giving participating organizations a professional, reliable web presence while providing access to DubLi's global online shopping and entertainment community. BSP Rewards, also known as DubLi Shopping, is responsible for the management and operations of DubLi's Shopping Mall platforms around the world. MediaNet Group is emerging as a leading provider of innovative shopping and entertainment solutions to consumers in over 100 countries.
Additional information about the Company is available in its filing with the Securities and Exchange Commission at .
Except for historical matters contained herein, statements made in this press release are forward-looking. Without limiting the generality of the foregoing, words such as "may," "will," "to," "plan," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," or "continue" or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements.
Investors and others are cautioned that a variety of factors, including certain risks, may affect our business and cause actual results to differ materially from those set forth in the forward-looking statements. These risk factors include, without limitation, the risk of (i) an inability to establish and/or maintain a large, growing base of productive business associates; (ii) an inability to develop and/or maintain brand awareness for our online auctions; (iii) a failure to maintain the competitive bidding environment for our online auctions; (iv) a failure to adapt to technological change; (v) a failure to comply with governmental laws and regulations applicable to our business; and (vi) a failure to maintain our internal controls. The Company is also subject to the risks and uncertainties described in its filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended September 30, 2011.
Presented below is selected financial information. Readers are encouraged to read the Company's Quarterly Report on Form 10-Q for the three and nine months ended June 30, 2012 filed with the Securities and Exchange Commission.
The following table reconciles the non-GAAP measures to the corresponding GAAP measures:
MediaNet Group Technologies Contact:
Stefanie Kitzes
561-417-1500
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Datum: 13.08.2012 - 14:33 Uhr
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News-ID 173989
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