Full Press Release Details
| FOR IMMEDIATE RELEASE | CONTACT: | Nicola Piggott - For Press Inquiries |
| November 14, 2007 | 310-633-9478 | |
| Nicola.Piggott@HillandKnowlton.com |
MOTION INCREASES REVENUE
YEAR-OVER-YEAR IN THE THIRD QUARTER
Paid Subscriber Growth Approximately 750,000;
By Approximately 180,000 Over Last Quarter
(OTCBB: NWMO) today announced results for its fiscal third quarter ended
September 30, 2007. The Company continues to demonstrate strong momentum,
growing quarterly revenues 88% year-over-year in the third quarter, annd
revenue 84% year-over-year for the nine months ended September 30, 2007.
digital content and products - both mobile and online - generates a wide
audience, and New Motion's unique business model illustrates it can convert this
audience into a premium mobile subscriber. The company's approach integrates the
Internet and mobile platforms across all four of their core direct-to-consumer
business areas - digital music, casual gaming, community/lifestyle, and
interactive contests. This integrated approach, coupled with an ability to
acquire new customers across a broad demographic at greatly reduced costs,
resulted in New Motion becoming a leading company in the U.S. direct-to-consumer
mobile entertainment marketplace.
sales for New Motion's third quarter of fiscal 2007 grew to $10.5 million, up
88% from $5.6 million in the third quarter of fiscal 2006. Net loss for the
third quarter of fiscal 2007 was $1.9 million, or $0.16 per basic and diluted
share, compared to a net loss of $0.4 million, or $0.06 per basic and diluted
share, in the third quarter of fiscal 2006. Included in the 2007 third quarter
net loss is approximately $0.7 million of non-cash depreciation, amortization
and stock compensation expense. New Motion ended the third quarter with $13.0
million of cash and cash equivalents and working capital of $15.1
Motion had approximately 750,000 monthly paying subscribers at September
2007, an increase of approximately 180,000 paying subscribers over June 30,
2007. This anticipated and significant growth in subscribers is attributable
New Motion's ability to attract customers to its unique array of products,
expand the sector's demographic audience, and acquire new customers in the most
cost-efficient manner.
sales for the nine months ended September 30, 2007 grew to $23.0 million,
from $12.5 million in the year ago period. Net loss for the nine months ended
September 30, 2007 was $3.2 million, or $0.29 per basic and diluted share,
compared to net income of $1.1 million, or $0.15 per basic and $0.13 per
share in the prior year period. Included in the 2007 nine month net loss
approximately $1.8 million of non-cash depreciation, amortization and stock
compensation expense.
the course of the year, New Motion has continued to build its technology
human resources infrastructure. Over the last year, the Company has almost
tripled its number of staff, including a significantly expanded leadership
Susan Swenson, former chief operating officer of T-Mobile and a highly respected
industry leader, joined New Motion as chief operating officer in August,
Jonathan Katz, formerly vice president, AzoogleAds, a leader in Internet
performance-based marketing, joined New Motion in November, 2007 as executive
vice president, global sales and distribution.
are building one of the most seasoned management teams and diversified mobile
entertainment companies in the United States," said Burton
chief executive officer. "As we continue to hire top talent, expand our product
offerings, grow both our paid and ad-supported subscriber base, and prepare
the completion of our merger with Traffix, Inc., we are well positioned for
exciting year of growth in 2008."
the third quarter, New Motion also announced that it entered into a merger
agreement with Traffix,
(NASDAQ: TRFX), a leading Internet marketing and interactive media company.
combined companies will have the resources to create a vertically integrated
Mobile Entertainment Network' with diverse customer acquisition platforms, an
extensive library of proprietary digital content, and a large, growing
subscriber base. Under the terms of the all equity merger agreement, New
shareholders will own approximately 55% of the combined company on a fully
diluted basis. New Motion currently projects that the transaction will close
the first quarter of 2008.
Motion expects to continue its current sales momentum growth, and to see
continued improvement in profitability throughout the fourth quarter of 2007.
The Company plans to accomplish these goals by leveraging its ability to
sufficiently grow its subscriber base across its core product portfolios,
continuing to invest in technology and human resources to support growth,
further expanding its mobile entertainment network. Looking towards its upcoming
merger with Traffix in early 2008, New Motion anticipates entering a period
global expansion, continuing to build a global advertising network, and
considering targeted acquisition opportunities.
Motion chief executive officer Burton Katz will host a conference call on
Thursday, November 15th, 2007 at 1:00 p.m. PDT / 4:00 p.m. EDT, at which
will share more about the Company's outlook for 2007 and 2008 and the pending
merger with Traffix, Inc. He will also answer questions from call participants.
dial 1-800-857-7212 or if outside the U.S., 1-773-799-3910 with passcode
to access the conference call at least five minutes prior to the 1:00 p.m.
start time. A full transcript and audio recording of the call will also be
available at www.newmotioninc.com/ir/transcripts.asp
by 9:00 a.m. PST November 19th. An audio replay will be available between
a.m. PT, November 19th, 2007, and 5:00 p.m. PT, November 23rd, 2007, by calling
1-866-442-2121 or 1-203-369-1084.
Motion, Inc. (OTCBB: NWMO) is a mobile entertainment and Internet media company
providing a broad range of digital and mobile products. New Motion, Inc.
combines and applies the power of the Internet, the latest in mobile technology,
and traditional marketing/advertising methodologies to three strategic services
- digital music, casual games and interactive contests. Brands include
Bid4Prizes, a low-bid mobile auction game, GatorArcade, a premium online
mobile gaming site, YourCrush, an astrology-driven mobile dating help site
Altnet, a mobile legal music download service featuring original artists.
by a team of Internet, new media, entertainment and technology professionals,
New Motion, Inc. was founded in 2005 and is headquartered in Irvine, California
with technology assets in Seattle. New Motion, Inc. was recently called "a
company to watch" by Wireless Business Forecast, and their mobile content
capabilities were named a "rival to those of their mainstream-media
counterparts," by Wired Magazine. For more information, please visit
press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements