Full Press Release Details
| FOR IMMEDIATE RELEASE | CONTACT: |
| November 12, 2008 | Andrew Zaref, CFO |
| (212) 716-1977 |
OPERATING RESULTS FOR THE THIRD QUARTER 2008
| n | Proforma Revenues of $30.8 million and $105.5 million, and Proforma Adjusted EBITDA of $1.0 million ($0.04 per share) and $6.8 million ($0.31 per share) for the three and nine months ended September 30, 2008. | |
| n | Reported revenues of $30.8 million and $91.0 million, and net loss of ($6.0) thousand ($0.00 per share) and net income of $0.8 million ($0.04 per share) for the three and nine months ended September 30, 2008. | |
| n | Overall improvement in available capital resources, including $29.8 million in cash and marketable securities at September 30, 2008, an increase of $4.6 million, from $25.2 million at June 30, 2008. | |
| n | Successfully launched new casual game program with continued development of additional content offerings expected to be released in fourth quarter of 2008. Expanded billable audience and demographic target with investment in fixed line billing operation. |
Motion, Inc., doing business as Atrinsic, (NASDAQ: NWMO), a premier online
mobile marketing services company, announced today that revenues for the third
quarter of 2008 were $30.8 million compared with $10.5 million in the third
quarter of 2007, an increase of 193%. Revenues for the nine months ended
September 30, 2008 and 2007 were $91.0 million and $23.0 million, an increase
295%. The increase in revenues is primarily attributable to the Company's merger
with Traffix, Inc., which was consummated on February 4, 2008, that added $20.0
and $57.1 million in revenues for the three and nine month periods ended
September 30, 2008. The Company continues to leverage the benefits of its cross
media Internet and Mobile platforms, vertically integrate its proprietary
content and online distribution network, and diversify its revenues with new
service offerings. For the third quarter of 2008, on a comparable basis, the
Company experienced a 3.0% increase in revenues derived from its mobile
offerings and a 100% increase in revenues from its online service offerings
result of the Traffix acquisition, effective February 4, 2008. For the nine
months ended September 30, 2008, revenues derived from mobile and online service
offerings increased 47.0% and 100%, respectively.
expenses for the third quarter of 2008 were $9.8 million compared with operating
expenses of $11.2 million in the third quarter of 2007, a decrease of
approximately $1.4 million, primarily attributable to efficiencies gained
through post merger integration, decreased discretionary Selling & Marketing
expenses, a reduction in non cash equity based compensation, partially offset
an increase in depreciation and amortization. The Company is continuing to
achieve the anticipated $4.1 million in efficiencies from the Traffix 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 activities.
for the third quarter of 2008 was ($6.0) thousand ($0.00 per basic and diluted
earnings per share) compared with a net loss of ($1.9) million for the third
quarter of 2007 (($0.16) per basic and diluted loss per share). Net income
the nine months ended September 30, 2008 was $0.8 million ($0.04 per basic
diluted earnings per share) compared with a net loss of ($3.2) million for
nine months ended September 30, 2007 (($0.29) per basic and diluted loss per
September 30, 2008, the Company had cash and cash equivalents of $21.9 million,
marketable securities of approximately $7.9 million coupled with significant
working capital to support future growth, business development initiatives,
capital activities. The Company repurchased 387,072, and 619,372 shares of
Common stock for the three and nine months ended September 30, 2008 at a cost
approximately $2.6 million pursuant to its stock repurchase program previously
announced on April 9, 2008. To date, since inception of the plan, the company
has repurchased 1,695,325 shares at a cost of approximately $3.7
EBITDA for the third quarter 2008 was $1.0 million as compared with $(1.7)
million loss for the third quarter of 2007. On a non-GAAP per diluted share
basis, Adjusted EBITDA per share for the third quarter of 2008 was $0.05 as
compared to ($0.15) for the third quarter of 2007.
2008, the Company 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 for 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 to build long
term shareholder value by prudently deploying capital with expectations for
anticipated risk adjusted return.
will continue to identify, and execute, additional strategic initiatives,
however, as a result of market conditions, there are limited opportunities
meet our investment criteria. We currently do not expect to consummate
additional business combinations during 2008. In addition, the Company is
committed to capital preservation and continuing to generate positive cash
and expects to finish 2008 with sufficient capital resources enabling continued
development and growth into the future.
Company continues to execute on its long term strategic plans; however, the
term business climate, volatile pricing trends, limited or unstable demand
(particularly in the financial services and retail sectors), and uncertainties
in discretionary consumer spending patterns will negatively impact our operating
performance. Despite these challenges, management remains committed to reducing
discretionary operating expenses and reevaluating new initiatives in order
preserve operating margins and generate positive cash flow.
non-GAAP amounts have been adjusted from comparable GAAP measures. A description
of all adjustments and reconciliations to comparable GAAP measures for all
periods presented are included within this communication.
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.