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Unassociated Document FOR IMMEDIATE RELEASE CONTACT

Key Takeaway: FOR IMMEDIATE RELEASE CONTACT: May 12, 2009 Andrew Zaref, CFO (212) 716-1977 OPERATING RESULTS FOR THE FIRST QUARTER 2009 New Motion, Inc., doing business as Atrinsic, (NASDAQ: NWMO), a premier diversified online marketing services company, announced today that revenues for

Full Press Release Details

FOR IMMEDIATE RELEASE CONTACT:
May 12, 2009 Andrew Zaref, CFO
(212) 716-1977
OPERATING RESULTS FOR THE FIRST QUARTER 2009
New Motion, Inc., doing business as Atrinsic, (NASDAQ: NWMO), a premier
diversified online marketing services company, announced today that revenues for
the first quarter of 2009 were $23.5 million compared with $28.7 million in the
first quarter of 2008, a decrease of 18%. The decrease in revenue is principally
attributed to a decline in the average number of subscribers as compared to the
first quarter of 2008. For the three months ended March 31, 2009, Subscription
revenues decreased by 60% and revenues from Transactional service offerings
increased by 18% when compared to the first quarter of 2008. Notwithstanding
the quarter-over-quarter decline in Subscription revenues, the Company is
developing and launching new mobile products in the music, games, commerce, and
lifestyle categories to support increasing demand for rich media mobile content
expenses for the first quarter of 2009 were $25.3 million compared with
operating expenses of $29.4 million in the first quarter of 2008, a decrease of
approximately $4.0 million. The decrease is primarily attributable to a reduced
amount of purchased third party media, a reduction in labor and operating costs
and efficiencies gained from the merger with Traffix, Inc. In addition, the
Company is carefully monitoring its performance relative to expectations and
market conditions to manage its fixed and discretionary customer acquisition,
lead generation activities, and other operating expenses.
for the first quarter of 2009 was ($1.187) million (($0.06) per basic and
diluted loss per share) compared with a net loss of ($267) thousand for the
first quarter of 2008 (($0.01) per basic and diluted loss per
March 31, 2009, the Company had $22.9 million of cash, cash equivalents and
marketable securities with significant working capital to support future growth,
business development initiatives, and capital activities. Pursuant to its
previously announced stock repurchase program, which ends May 2009, the Company
repurchased 832,392 shares of Common stock during the first quarter of 2009 at a
cost of approximately $1.0 million.
2008, the Company consummated two significant business combinations and took
significant actions to maximize the efficiencies related to those transactions.
In addition, management reduced operating expenses, launched numerous
operational initiatives, and continued to monitor the marketplace for additional
some of the Company's specific goals include:
business climate is challenging and the Company continues to consolidate
operations acquired in its most recent business combinations. In response, the
Company is (i) implementing various cost control measures to better align
expenses with revenues, (ii) implementing improved technologies and processes to
enhance productivity and create competitive advantages, and (iii) eliminating
activities that don't meet current expectations of profitability. It is expected
that these cost control measures will reduce reported operating expenses by 20%
- 25% annually and consolidate the Company's operations into two
1 All 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.
About New Motion, Inc.
(doing business as Atrinsic)
Motion, Inc., doing business as Atrinsic, is one of the leading digital
advertising and marketing services company in the United States. Atrinsic is
organized as a single segment with two principal offerings: (1)
Transactional 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) Subscription 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, and
traditional marketing/advertising methodologies, creating a fully integrated
multi platform vehicle for the advanced generation of qualified leads monetized
by the sale and distribution of subscription content, brand-based distribution
and pay-for-performance advertising. Atrinsic's content is organized into four
strategic content groups - digital music, casual games, interactive contests,
and communities/lifestyles. The Atrinsic brands include GatorArcade, a premium
online and mobile gaming site, Ringtone.com, a mobile music download service,
and iMatchUp, one of the first integrated web-mobile dating services.
Feature-rich Network advertising services include a mobile ad network, extensive
search capabilities, email marketing, one of the largest and growing publisher
networks, and proprietary subscription content. Services are provided
on a variety of pricing models including cost per action, fixed fee, or
commission based arrangements.
Availability of Annual
26, 2009, the Company filed its Form 10-K. A copy of the Form 10-K can be
obtained at no cost on the SEC's website, www.sec.gov. A
copy of the Company's Form 10-K is also available in print at no cost to any
Company shareholder upon request.
press release contains "forward-looking" statements based on management's
current expectations as of the date of this release. These statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward looking statements include the
Company's expectations that it will have sufficient capital resources to
enable continued development and growth into the future. Because such
statements inherently involve risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward looking statements.
Such risks include, among others, risks related to the successful offering of
the Company's products and services; the risk that the anticipated benefits of
the Traffix merger or the Ringtone.com acquisition may not be realized and other
risks that may impact the Company's business, some of which are discussed in the
Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission (the "SEC") on or about the date of this release under the caption
"Risk Factors" and elsewhere, including in the Company's other reports filed
from time to time with the SEC. All information in this release is as of May 12,
2009. The Company does not undertake any obligation to update or revise these
forward-looking statements to conform to actual results or changes in the
Company's expectations.
Supplemental Disclosure
regarding Non-GAAP Measures
following tables set forth the Company's EBITDA and Adjusted EBITDA for the
Last updated: May 12, 2009