Broadcast International Reports Third Quarter 2012 Results
(firmenpresse) - SALT LAKE CITY, UT -- (Marketwire) -- 11/13/12 -- Broadcast International (OTCQB: BCST) ("BI"), a leading provider of video-powered broadcast solutions, reported financial results for the third quarter ended September 30, 2012.
Cayman Islands-based WestStar TV selected CodecSys to provide the framework for its new Over-the-Top (OTT) service. Based on BI's CodecSys patented multi-codec compression software, the solution enables WestStar's subscribers to receive local and global content on their mobile devices.
Partnered with netTALK.com to provide a triple play OTT video service for netTALK's more than 1 million subscribers. netTALK TV, an extension of netTALK's Voice over Internet Protocol (VoIP) service, will bring customers a total communications and entertainment experience by permitting access to online video content via a CodecSys-enabled OTT or Video on Demand (VOD) playback service.
Binbit Group, a global provider of mobile entertainment services, selected CodecSys to expand its video on demand web and mobile device capabilities. CodecSys encoding and transcoding systems were installed in Binbit's Austin, Texas data center to support its regional operations.
Revenue in the third quarter 2012 increased 2% sequentially to $2.05 million from $2.00 million in the prior quarter, and decreased 10% from $2.3 million in the same year-ago period. The year-over-year decrease was primarily due to fewer expansion sites installed for the company's largest digital signage customer, partially offset by an increase in license fees and other professional services.
Gross profit in the third quarter 2012 was $779,000 (a record since becoming publicly-traded company) or 38% of total revenue. This was an improvement from $654,000 or 33% of total revenue in the previous quarter and from $758,800 or 33% of total revenue in the same year-ago period.
Total operating expenses in the third quarter 2012 decreased 24% sequentially to $1.9 million from $2.5 million in the prior quarter, and decreased 22% from $2.4 million in Q3 2011.
Operating loss in the third quarter 2012 was $1.1 million, an improvement from an operating loss of $1.8 million in the previous quarter and an operating loss of $1.7 million in the same year-ago period. The significant decrease in operating losses is primarily due to effective cost cutting programs, along with increased gross profits that have helped to reduce the monthly burn rate by nearly 50% or $239,000.
Net loss in the third quarter 2012 totaled $711,000 or $(0.01) per basic and diluted share, compared to a net profit of $847,000 or $0.01 per basic and diluted share in the prior quarter, and compared to a net profit of $4.0 million or $0.05 per basic and diluted share in Q3 2011. The year-over-year decline was primarily due to a $4.8 million change in the fair value of the company's warrants and convertible notes.
"Our third quarter results reflect our ongoing efforts to reduce expenses and drive margin expansion," said Jim Solomon, CFO of Broadcast International. "In fact, we achieved our highest-ever gross margins since becoming a publicly-traded company. We continued to see our operating expenses decrease both on a year-over-year and sequential basis, and anticipate further optimization going forward.
"As we wrap up the year and prepare for 2013, we remain focused on expanding and diversifying our BI Networks and CodecSys customer base. We are confident that over the course of 2012, we have put in place the right personnel and resources to handle the anticipated ramp-up in our business, while continuing to provide our loyal customers exceptional service and support. Our BI Networks division continues to gain traction in the financial services industry, and we remain well positioned to capitalize on the growing opportunity for CodecSys in the enterprise IP video and OTT markets, both domestically and overseas."
Broadcast International will stream its third quarter 2012 results podcast tomorrow (Wednesday, November 14) at 9:00 a.m. Eastern time. The video podcast will be available via the Investor Relations section of the company's website at .
Broadcast International management will discuss the company's financial results, and provide an operational update and outlook for the remainder of 2012.
: Wednesday, November 14, 2012
: 9:00 a.m. Eastern time (7:00 a.m. Mountain time)
:
If you have any difficulty connecting with the podcast, please contact Liolios Group at 1-949-574-3860.
Broadcast International is a leading provider of video-powered broadcast solutions, including IP, digital satellite, Internet streaming and other types of wired/wireless network distribution. BI's patented CodecSys software is a breakthrough, multi-codec video compression technology that cuts video bandwidth requirements over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of rich-media applications and offers unprecedented price/ performance benefits for existing applications. Broadcast International is a public company (OTCQB: BCST) headquartered in Salt Lake City, UT.
For more information visit: and .
All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our Business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.
Cameron Francis
Vice President Products
Broadcast International
801-562-2252
Michael Koehler or Matt Glover
Liolios Group, Inc.
949-574-3860
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Datum: 13.11.2012 - 22:34 Uhr
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