Onstream Media Corporation Reports First Quarter Fiscal 2012 Results -- Continuation of Revenue Records and Positive Cash from Operating Activities (before changes in working capital) --

POMPANO BEACH, Fla., Feb. 21, 2012 /PRNewswire/ -- Onstream Media Corporation (NASDAQ: ONSM), a leading online service provider of live and on-demand corporate audio and web communications, virtual event technology and social media marketing, reported today its financial results for the first quarter of fiscal 2012, the three months ended December 31, 2011.

Financial Highlights

  • Revenues for the three months ended December 31, 2011 topped $4.5 million, representing a 6.5% increase from the first quarter of fiscal 2011. The fiscal 2012 first quarter revenues represented a record high as compared to any previous fiscal first quarter. It also represented the sixth consecutive quarter of our revenues exceeding revenues for the corresponding quarter of the previous fiscal year.
  • Cash flow from operating activities (before changes in current assets and liabilities) for the three months ended December 31, 2011 was approximately $110,000, compared to cash used in operating activities of approximately $127,000 for the three months ended December 31, 2010. This is only the second time in our company's history that we have achieved a positive operating cash flow result for our first fiscal quarter.
  • Gross margin of approximately $3.0 million for the three months ended December 31, 2011, representing 65.7% of total revenues, was an increase of 5.0% as compared to the year-ago quarter.
  • Onstream's net loss for the three months ended December 30, 2011 was approximately $653,000, a 27.3% decrease as compared to a net loss of approximately $898,000 for the first quarter of fiscal 2011. These losses included non-cash expenses for depreciation and amortization (approximately $357,000 and $386,000, for the three months ended December 31, 2011 and 2010, respectively) as well as other non-cash expenses, which are discussed in more detail below.

Financial Discussion
Consolidated revenues for the three months ended December 31, 2011 topped $4.5 million, representing an increase of $277,000, or 6.5%, over our revenues for the three months ended December 31, 2011 and primarily due to higher sales from the Company's Audio and Web Conferencing Services Group. Consolidated revenues for the three months ended December 31, 2011 also represented an increase of $165,000, or 3.8%, over our revenues for the immediately preceding quarter, the three months ended September 30, 2011.

Audio and Web Conferencing Services Group revenues were approximately $2.5 million for the three months ended December 31, 2011, an increase of approximately $216,000, or 9.4%, from the corresponding period of the prior fiscal year and primarily a result of increased audio conferencing revenues in the Infinite division. The Infinite division's revenues of approximately $2,012,000 for the first quarter of fiscal 2012 represented a new record high for that division, surpassing the previous high which was just set in the immediately preceding quarter, the fourth quarter of fiscal 2011.

Digital Media Services Group revenues were approximately $2.0 million for the three months ended December 31, 2011, an increase of approximately $61,000, or 3.1%, from the corresponding period of the prior fiscal year, primarily due to an increase in webcasting division revenues.

Onstream's net loss for the three months ended December 30, 2011 of approximately $653,000 included approximately $763,000 of non-cash items (non-cash expenses, net of non-cash income), resulting in $110,000 positive cash flow from operating activities (before changes in current assets and liabilities) for that period. The primary non-cash expenses included in that net loss were depreciation and amortization and certain items (employee compensation, professional fees and interest) paid with equity.

The $110,000 positive cash flow from operating activities (before changes in current assets and liabilities) for the three months ended December 31, 2011 represented an improvement of approximately $237,000, as compared to cash used in operating activities of approximately $127,000 in the corresponding quarter of the previous fiscal year. This was only the second time in our company's history this measurement has been positive for the first fiscal quarter.

Onstream's first quarter fiscal 2012 net loss of approximately $653,000, or $(0.06) per share was based on 11.9 million weighted average shares outstanding and represented a 27.3% decrease from the first quarter fiscal 2011 net loss of approximately $898,000 or $(0.10) per share, which was based on 8.7 million weighted average shares outstanding.

Management Commentary
Randy Selman, President and Chief Executive Officer of Onstream Media, stated, "We are pleased that we were able to accomplish new revenue records in the most recently completed fiscal quarter, continuing such records achieved over our past five quarters. Our first quarter fiscal 2012 revenues represented 6.5% growth versus the same quarter of the previous year and 3.8% growth over our revenues for the immediately preceding quarter, the three months ended September 30, 2011. Looking forward to the remainder of fiscal 2012, we believe that our core businesses, including conferencing and webcasting services, will continue to drive our revenue growth."

Mr. Selman added, "We were also pleased to report positive cash flow from operating activities (before changes in current assets and liabilities) of $110,000 for the three months ended December 31, 2011, which is only the second time in our company's history that we have achieved a positive operating cash flow result for our first fiscal quarter This is of course coming after we reported our first full fiscal year - 2011 - having positive cash provided by operating activities (before changes in current assets and liabilities). Addressing cash flow going forward, based on our results for the year ended September 30, 2011 and for the quarter ended December 31, 2011 and expense reductions already implemented by us that will affect fiscal 2012, we have estimated that even with no increase from historic revenue levels our operations would result in sufficient cash flow to adequately fund all but approximately $515,000 of our anticipated ongoing cash expenditures through September 30, 2012, including capital expenditures and debt service. Since we expect to see year-over-year increases in gross margin exceeding that amount for the remaining nine months of fiscal 2012, we expect our operations to cover all of our cash requirements for the next fiscal year, although we may still choose to accept additional financial investment in the company if necessary to finance worthy initiatives."

Teleconference
Management will hold a conference call on Wednesday, February 22, 2012 at 4:30 p.m. ET to discuss its financial results for the three months ended December 31, 2011, as well as provide an outlook for the remainder of fiscal 2012. Management discussion will be followed by an open Q&A session. Interested parties may listen to the presentation live online at http://www.visualwebcaster.com/event.asp?id=85337 or by calling 1-888-645-4404 or 201-604-0169. It is recommended to dial in approximately 10 to 15 minutes prior to the scheduled start time. An audio rebroadcast of the conference call will be archived for one year online at http://www.visualwebcaster.com/event.asp?id=85337.

About Onstream Media
Onstream Media Corporation (NASDAQ: ONSM) is a leading online service provider of live and on-demand corporate audio and web communications, virtual event technology and social media marketing. Onstream Media's innovative Digital Media Services Platform (DMSP) provides customers with cost effective tools for encoding, managing, indexing, and publishing content via the Internet. The company's MarketPlace365® solution enables publishers, associations, tradeshow promoters and entrepreneurs to rapidly and cost effectively self deploy their own online virtual marketplaces. In addition, Onstream Media provides live and on-demand webcasting, webinars, web and audio conferencing services. To date, almost half of the Fortune 1000 companies and 78% of the Fortune 100 CEOs and CFOs have used Onstream Media's services. Select Onstream Media customers include: AAA, Dell, Disney, Georgetown University, National Press Club, PR Newswire, Shareholder.com (NASDAQ), Sony Pictures and the U.S. Government. Onstream Media's strategic relationships include Akamai, BT Conferencing, Qwest and Trade Show News Network (TSNN). For more information, visit Onstream Media at http://www.onstreammedia.com or call 954-917-6655.

Cautionary Note Regarding Forward Looking Statements

Certain statements in this document and elsewhere by Onstream Media are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward- looking statements include, but are not limited to fluctuations in demand; changes to economic growth in the U.S. economy; government policies and regulations, including, but not limited to those affecting the Internet. Onstream Media undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in Onstream Media Corporation's filings with the Securities and Exchange Commission.

Media Relations:

Investor Relations:

Chris Faust

Jeff Ramson

FastLane Communications

ProActive Newsroom

973-582-3498

646-863-6341  

cfaust@fast-lane.net

jramson@proactivecrg.com



Financial Tables Follow

ONSTREAM MEDIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS



Three months ended
December 31,


2011

2010


(unaudited)

REVENUE:



   Audio and web conferencing

$       2,011,701

$       1,809,460

   Webcasting

1,499,954

1,454,837

   DMSP and hosting

472,957

488,809

   Network usage

479,445

465,120

   Other

50,060

19,027

Total revenue

4,514,117

4,237,253




COSTS OF REVENUE:



   Audio and web conferencing

645,511

600,107

   Webcasting

431,997

359,277

   DMSP and hosting

239,794

221,505

   Network usage

216,345

208,706

   Other

13,441

21,639

Total costs of revenue

1,547,088

1,411,234




GROSS MARGIN

2,967,029

2,826,019




OPERATING EXPENSES:



 General and administrative:



        Compensation

1,995,876

2,110,509

        Professional fees

606,235

541,925

      Other

521,735

530,814

   Depreciation and amortization

356,508

386,197

Total operating expenses

3,480,354

3,569,445




Loss from operations

(513,325)

(743,426)




OTHER EXPENSE, NET:



   Interest expense

(182,848)

(300,340)

   Gain from adjustment of derivative    

       liability to fair value

23,051

138,661

   Other income, net

20,284

7,412




Total other expense, net

(139,513)

(154,267)




Net loss

$       (652,838)

$         (897,693)




Loss per share – basic and diluted:






Net loss per share

$             (0.06)

$              (0.10)

Weighted average shares of common stock outstanding – basic and diluted

11,852,414

8,742,092




ONSTREAM MEDIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



December 31,
2011

September 30,
2011


(unaudited)


ASSETS



CURRENT ASSETS:



 Cash and cash equivalents

$            408,547

$            290,865

 Accounts receivable, net of allowance for doubtful accounts

2,375,288

2,453,390

 Prepaid expenses

491,449

580,185

 Inventories and other current assets

137,901

139,099

Total current assets

3,413,185

3,463,539

PROPERTY AND EQUIPMENT, net

2,721,714

2,714,676

INTANGIBLE ASSETS, net

662,811

785,927

GOODWILL, net

10,696,948

10,696,948

OTHER NON-CURRENT ASSETS

104,263

104,274

Total assets

$       17,598,921

$       17,765,364





LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:



 Accounts payable

$         1,771,776

$         1,573,703

   Accrued liabilities

1,203,234

1,193,473

   Amounts due to directors and officers

472,171

396,392

 Deferred revenue

82,886

96,437

 Notes and leases payable –  current portion, net of discount

1,614,694

1,533,966

   Convertible debentures, net of discount

729,890

407,790

Total current liabilities

5,874,651

5,201,761

Notes and leases payable, net of current portion and discount

9,787

11,962

Convertible debentures, net of discount

666,379

1,031,870

Detachable warrants, associated with sale of common shares

   and Series A-14 Preferred

165,160

188,211

Total liabilities

6,715,977

6,433,804




COMMITMENTS AND CONTINGENCIES






STOCKHOLDERS' EQUITY:



Series A-13 Convertible Preferred stock, par value $.0001 per share,

 authorized 170,000 shares, 35,000 issued and outstanding

3

3

Series A-14 Convertible Preferred stock, par value $.0001 per share,

 authorized 420,000 shares, 420,000 issued and outstanding

42

42

Common stock, par value $.0001 per share; authorized 75,000,000 shares,

  11,889,665 and 11,779,521 issued and outstanding, respectively

1,188

1,177

Additional paid-in capital

140,497,369

140,291,514

Unamortized discount

(109,179)

(146,418)

Accumulated deficit

(129,506,479)

(128,814,758)

Total stockholders' equity

10,882,944

11,331,560

Total liabilities and stockholders' equity

$       17,598,921

$     17,765,364




SOURCE Onstream Media Corporation



RELATED LINKS
http://www.onstreammedia.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.