About UsMon, Jan 14, 2008 |
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Narrowstep Reports 49% Increase in Narrowcasting Revenue in Q3 Fiscal Year 2008
NEW YORK / LONDON, January 14, 2008 - Narrowstep™ Inc. (OTC BB: NRWS), the TV on the Internet company, announced its results for the third quarter of fiscal year 2008, ended November 30, 2007.
Operating Highlights for the third quarter:
- Narrowcasting revenue increased 49% over the same quarter of the previous year
- Operating costs decreased by 19% quarter over quarter
- Completed upgrade to content distribution network
- Roll out of upgraded platform with Player 2.7
- Completed phase I of Microsoft Silverlight integration
- Formed strategic relationship with TSS Cross Media Group
- Strategic focus changed to larger enterprise customers
Narrowcasting and other revenues for the three months ended November 30, 2007 increased by $571,571, or 49%, to $1,735,539 as compared to $1,163,968 for the three months ended November 30, 2006. Narrowcasting revenues for the nine months ended November 30, 2007 increased by $1,252,193, or 41%, to $4,294,654 as compared to $3,042,461 for the nine months ended November 30, 2006. The increase in quarter-to-date and year-to-date revenue resulted primarily from the addition of new customers while focusing on retaining its larger and more profitable customers.
Operating costs for the three months ended November 30, 2007 decreased by 19% to $4,555,711, compared to $5,594,024 for the previous quarter. This reduction in operating costs resulted from headcount and other cost reductions due to the Company's previously announced change in strategic focus. While these reductions contributed to an increase in severance expense during the quarter, the Company has recently made various additional cuts in its operating expenses as a result of streamlining the sales support process. These additional reductions will be reflected gradually over the next two quarters. Total operating expenses for the nine months ended November 30, 2007 were $14,819,900, compared to $8,399,571 for the nine months ended November 30, 2006 reflecting the Company's investment in its video delivery platform and content distribution network over the last nine months.
As of November 30, 2007, the Company had $6,558,875 in cash.
"Now that the investment phase in our platform is behind us, we will continue to focus on driving revenue," said David C. McCourt, Chairman and Interim Chief Executive Officer. "We are excited about our pipeline of deals headed into 2008 and look forward to communicating the addition of new enterprise customers that fit our new strategic focus."
The Company reported a net loss of $2,791,190 or $0.02 loss per share for the three months ended November 30, 2007, compared to a loss of $1,477,404 or $0.03 loss per share for the three months ended November 30, 2006. The Company reported a loss of $10,973,591 or $0.14 loss per share for the nine months ended November 30, 2007, compared to a loss of $3,932,796 or $0.09 loss per share for the nine months ended November 30, 2006.
About Narrowstep
Narrowstep™ Inc. (OTC BB: NRWS), the TV on the Internet company, is a leading provider of Internet TV services supporting over 180 channels worldwide. Narrowstep's proprietary technology platform delivers the highest quality, TV-like experience available on the Internet. A pioneer in delivering Internet TV, Narrowstep offers the expertise and technology to move, manage and monetize video content across the Internet. For more information about Narrowstep, please visit http://www.narrowstep.com or call 609-945-1760.
Forward-looking Statement:
Certain statements in this news release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known or unknown risks, including those detailed in the Company's filings with the Securities and Exchange Commission, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
For additional information please contact, Jesse Case at jcase@narrowstep.com or visit http://www.narrowstep.com.