Balance Sheet Highlights: Financial Discussion: Randy Selman, president and chief executive officer of Onstream Media, stated, “As a result of increased sales and the integration of the Infinite Conferencing acquisition, I am pleased to report that Onstream has achieved our long-held goal of becoming cash flow positive. Just as importantly, we have expanded our growth rate, with the operations of Infinite Conferencing having been fully integrated and a cross marketing program now underway resulting in increased sales to existing customers. It should be noted that even without the full benefit of such marketing efforts, Infinite’s revenue base grew to approximately $1.9 million during the June 30, 2007 quarter, versus approximately $1.8 million during the March 31, 2007 quarter. Approximately $1.3 million of that $1.9 million, representing revenue after the acquisition date, was included in Onstream’s reported sales. In addition our webcasting revenues grew by approximately 28% and 35% for the nine and three months ended June 30, 2007, respectively, as compared to the comparable prior year periods. In addition, the number of DMSP accounts continues to increase and is up to 115, from the 80 accounts we reported on May 21.” “We believe that the considerable number of transactions and agreements we’ve announced in recent months will shortly begin to be reflected by an even further expansion of our revenue base,” continued Mr. Selman. “In fact, our recently completed distribution agreement with ASPA Japan Co., Ltd., which expands our presence into the Middle East and calls for a $1 million advance cash payment to us for the territory rights, comes as a direct result of our March 2007 purchase of Auction Video. As a result of this agreement, ASPA will shortly begin marketing all of Onstream’s products and services and will be paid commissions on all sales made by them in the region. We also expect our results in future quarters to benefit from our emerging relationships with Dell, Televisa, eBay, Bonnier, FiveAcross/Cisco, Qwest, Adobe and Akamai, among others.” “Looking ahead,” Mr. Selman continued, “we expect our fiscal fourth quarter results, due to internally generated growth coupled with a full quarter of contribution from the acquired operations of Infinite Conferencing, to reflect quarterly revenues in excess of $4.1 million and a continuing reduction of our quarterly net loss. Moreover, that quarterly net loss will be entirely due to non-cash expenses, as we expect to maintain positive cash flow – cash provided by operating activities, before working capital changes – for the quarter.” The approximately 63% increase in revenues for the quarter ended June 30, 2007, as compared to the comparable quarter of the previous fiscal year, was primarily due to approximately $1.3 million of audio and web conferencing revenues recognized since the Infinite acquisition on April 27, 2007, having no corresponding effect in the comparable prior year quarter. The increased revenues also reflect continued higher webcast production services sales and a continuation of the past growth in sales of higher priced video webcasts. The number of webcasts produced increased to approximately 1,600 webcasts for the quarter ended June 30, 2007, versus approximately 1,300 webcasts for the comparable quarter of fiscal 2006. Onstream Media will hold a conference call on Monday, August 13, 2007 at 4:15 pm ET to discuss its fiscal year 2007 third quarter financial results. Management discussion will be followed by an open Q&A session. Interested parties may listen to the presentation live online at http://www.visualwebcaster.com/event.asp?id=41805 or by calling 1-866-682-6100 or 201-499-0416 approximately 5 to 10 minutes prior to the start of the call. An audio rebroadcast of the conference call will be archived for one year online at http://www.visualwebcaster.com/event.asp?id=41805. COMPARATIVE OPERATING HIGHLIGHTS For the Three Months Ended June 30: 2007 2006 Revenue $3,775,216 $2,317,381 Net Loss $(1,506,700) $(1,179,297) Net Loss per common share $(0.04) $(0.08) Weighted average shares outstanding 36,664,325 14,118,141 For the Nine Months Ended June 30: 2007 2006 Revenue $8,015,060 $6,129,128 Net Loss $(13,032,769) $(5,605,631) Net Loss per common share $(0.49) $(0.42) Weighted average shares outstanding 26,859,059 13,261,656 About Onstream Media: Media Relations: Investor Relations: Certain statements in this document and elsewhere by Onstream Media are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward- looking statements include, but are not limited to fluctuations in demand; changes to economic growth in the U.S. economy; government policies and regulations, including, but not limited to those affecting the Internet. Onstream Media undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in Onstream Media Corporation's filings with the Securities and Exchange Commission. |
||||||||||||||||||||||||||||||||||||