Full Press Release Details
| FOR IMMEDIATE RELEASE | CONTACT: |
| August 14, 2008 | Andrew Zaref, CFO |
| (212) 273-1141 |
REPORTS OPERATING RESULTS FOR THE SECOND QUARTER 2008
Motion, Inc., doing business as Atrinsic, (NASDAQ: NWMO), a premier online
mobile marketing services company,
announced today that revenues for the second quarter of 2008 were $31.5 million
compared with $6.9 million in the second quarter of 2007, an increase of 356%.
Revenues for the six months ended June 30, 2008 and 2007 were $60.2 million
$12.5 million, an increase of 380%. The increase in revenues is primarily
attributable to the Company's merger with
Traffix, Inc., which was consummated on February 4, 2008, that added
$21.5 and $37.1 million in revenues for the three and six month periods ended
June 30, 2008. The Company continues to leverage the benefits of its cross
Internet and Mobile platforms, vertically integrate its proprietary content
online distribution network, and diversify its revenues with new service
offerings. For the second quarter of 2008, on a comparable basis, the Company
experienced a 45% increase in revenues derived from its mobile offerings and
100% increase in revenues from its online service offerings as a result of
Traffix acquisition, effective February 4, 2008. For the six months ended June
30, 2008, revenues derived from mobile and online service offerings increased
84% and 100%, respectively.
expenses for the second quarter of 2008 were $11.3 million compared with
operating expenses of $7.4 million in the second quarter of 2007, an increase
approximately $4 million, primarily attributable to the acquisition of Traffix.
The Company is continuing to achieve the anticipated $4.1 million efficiencies
gained from the merger while simultaneously developing an appropriate
infrastructure to support anticipated growth. In addition, the Company is
carefully monitoring its performance expectations and market conditions relative
to its discretionary customer acquisition and lead generation
income for the second quarter of 2008 was $1.1 million ($0.05 per basic and
diluted earnings per share) compared with a net loss of $0.9 million for the
second quarter of 2007 ($0.08 per basic and diluted loss per share). Net income
for the six months ended June 30, 2008 was $0.8 million ($0.04 per basic and
diluted earnings per share) compared with a net loss of $1.3 million for the
months ended June 30, 2007 ($0.12 per basic and diluted loss per
June 30, 2008, the Company had cash and cash equivalents of $17.2 million,
marketable securities of approximately $8.05 million coupled with significant
working capital to support future growth, business development initiatives,
capital activities. To date the Company has repurchased 469,800 shares of
its Common stock at a cost of approximately $2.0 million pursuant to its stock
repurchase program previously announced on April 9, 2008.
EBITDA for the second quarter was $2.9 million compared with $(1.4) million
the second quarter of 2007. On a non-GAAP per diluted share basis, Adjusted
EBITDA per share for the second quarter of 2008 was $0.12 as compared to $(0.12)
for the second quarter of 2007.
2008, the Company has consummated two significant business combinations and
taken significant actions to maximize the efficiencies related to those
transactions. In addition, management has reduced operating expenses, launched
numerous operational initiatives, and continues to monitor the marketplace
additional opportunities. The nature, timing, and magnitude of future activities
will depend on, among other things, operating performance, post merger
integration activities, and market conditions. Management continuously seeks
build long term shareholder value by prudently deploying capital with
expectations for an anticipated risk adjusted return.
goal is to continue to identify, and execute, additional transformative type
activities which, coupled with its expectations for an improved operating
environment, are expected to establish a Company with Estimated 2008
the range from $145 million to $160 million, resulting in Estimated 2008
Adjusted EBITDA to be in the range from $15 million to $20 million. In addition,
the Company expects to finish 2008 with sufficient capital resources enabling
continued development and growth into the future.
non-GAAP amounts have been adjusted from comparable GAAP measures. A description
of all adjustments and reconciliations to comparable GAAP measures for
periods presented are included within this communication.
Estimated 2008 Revenues and Estimated 2008 Adjusted EBITDA include the
actual reported amounts prepared in accordance with GAAP, the items necessary
reconcile from GAAP to the associated non-GAAP EBITDA, the related contributed
amounts from the Traffix and Ringtone.com transactions as if those transactions
occurred at the beginning of the periods presented, and other transactions
should such opportunities become available. There can be no assurance that
opportunities will become available, under appropriate terms and conditions,
within the time period described above.
New Motion, Inc. (doing business as Atrinsic)
Motion, Inc., doing business as Atrinsic, is one of the leading digital
advertising and entertainment networks in the United States. Atrinsic is
organized as a single segment business with two principal activities: (1)
Networks services - offering full service online marketing and distribution
services which are targeted and measurable online campaigns and programs for
marketing partners, corporate advertisers, or their agencies, generating
qualified customer leads, online responses and activities, or increased brand
recognition, and (2) Entertainment services - offering our portfolio of
subscription-based content applications direct to users working with wireless
carriers and other distributors.
brings together the power of the Internet, the latest in mobile technology,
traditional marketing/advertising methodologies, creating a fully integrated
vehicle for the generation of qualified leads monetized by the sale and
distribution of entertainment content, brand-based distribution and
pay-for-performance advertising. Atrinsic's Entertainment service's content is
organized into four strategic service groups - digital music, casual games,
interactive contests, and communities/lifestyles. The Atrinsic brands include
GatorArcade, a premium online and mobile gaming site, Bid4Prizes, a low-bid
mobile auction interactive game, and iMatchUp, one of the first integrated
web-mobile dating services. Feature-rich advertising services include a mobile
ad network, extensive search capabilities, email marketing, one of the largest
and growing publisher networks, and proprietary entertainment content. Services
are provided on a variety of pricing models including cost per action, fixed
fee, or commission based arrangement.
of Annual Report on Form 10-KSB and Interim Report on Form
29, 2008, the Company filed an amendment on Form 10-KSB/A to its Form 10-KSB
the sole purpose of including the Part III information. A copy of the Form
10-KSB can be obtained at no cost on the Company's website, www.atrinsic.com,