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Enliven Marketing Technologies Corporation Announces Second Quarter 2008 Financial Results
2008-08-08 07:30:00
Enliven Marketing Technologies Corporation Announces Second Quarter 2008 Financial Results
NEW YORK, N.Y., Aug. 8 /EMWNews/ -- Enliven Marketing Technologies (Nasdaq: ENLV), a leading internet marketing technology company, today announced financial results for the second quarter ended June 30, 2008. Enliven reported total revenue of $5.6 million for the second quarter 2008, a 28 percent increase as compared to $4.4 million in the first quarter 2008 and a 46 percent increase as compared to $3.8 million in the second quarter 2007. Gross profit was $2.9 million for the second quarter of 2008, an increase of 56 percent as compared to the $1.8 million for the first quarter of 2008 and an increase of 21 percent as compared to $2.4 million for the second quarter of 2007. Patrick Vogt, Chief Executive Officer, commented, "We are continuing to scale our company to support growth in the core business areas of Unicast and Springbox. These businesses drove a significant improvement in EBITDA performance despite a further decline in the search business. Furthermore, we expect improvement in sales and EBITDA performance in the second half, which will truly provide the foundation for future growth. We look forward to our merger with DG FastChannel announced in May. We believe the combined companies will meet a wider set of customer needs and enable us to grow and expand in both the online and traditional advertising market." Operating loss for the second quarter of 2008 was $3.2 million, as compared to an operating loss of $3.9 million in the first quarter of 2008 and as compared to an operating loss of $2.6 million for the second quarter of 2007. Operating expenses for the second quarter of 2008 were $6.0 million, a 6 percent increase as compared to $5.7 million in the first quarter of 2008 and a 21 percent increase as compared to $5.0 million in the second quarter of 2007. Net loss for the second quarter of 2008 was $3.6 million, or $(0.04) per share, compared to a net loss of $7 thousand or $(0.00) per share in the first quarter 2008 and a net loss of $5.2 million or $(0.07) per share, in the second quarter of 2007. Adjusted operating loss as defined below was $0.9 million for the second quarter of 2008, as compared to a loss of $2.3 million in the first quarter of 2008 and a loss of $1.5 million for the second quarter of 2007. For the six months ended June 30, 2008, the Company reported revenue of $10.0 million, compared with $7.2 million for the same period in 2007. For the six months ended June 30, 2008, gross profit remained flat, at $4.7 million versus the prior year period. Enliven's operating expenses for the six months ended June 30, 2008 were $11.8 million, which included $0.8 million of merger related costs, compared with $9.3 million for the six months ended June 30, 2007. The Company's net loss for the six months ended June 30, 2008 of $3.6 million, or $(0.04) per share, was based on a loss from operations of $7.0 million, which included charges of $0.7 million for stock based compensation and $2.3 million for depreciation and amortization. This compares to a net loss for the six months ended June 30, 2007 of $7.2 million, or $(0.10) per share, based on a loss from operations of $4.6 million, which included charges of $1.0 million for stock based compensation and $0.7 million for depreciation and amortization. Adjusted operating loss for the first six months ended June 30, 2008 was $3.2 million as compared to an adjusted operating loss of $2.9 million for the first six months ended June 30, 2007. Enliven's cash, cash equivalents, and marketable securities as of June 30, 2008 were $1.6 million compared to $2.2 million as of March 31, 2008 and compared to $5.7 million as of June 30, 2007. Due to the pending merger with DG FastChannel, Inc. (NASDAQ: DGIT), which was announced on May 8, 2008, Enliven will not hold a conference call to discuss the financial results for the second quarter. FINANCIAL INFORMATION Management prepares and is responsible for the Company's consolidated financial statements which are prepared in accordance with accounting principles generally accepted in the United States. The financial information contained in this press release, which is unaudited, is subject to revision and should not be considered final until the Company files its Quarterly Report on Form 10-Q. At the present time, the Company has no reason to believe that there will be changes to the financial information contained herein. FINANCIAL MEASURES In addition to the results presented above in accordance with generally accepted accounting principles, or GAAP, the Company presents financial measures that are non-GAAP measures, specifically adjusted operating income. The Company believes that this non-GAAP measure, viewed in addition to and not in lieu of the Company's reported GAAP results, provides useful information to investors regarding its performance and overall results of operations. These metrics are an integral part of the Company's internal reporting to measure the performance of the Company and the overall effectiveness of senior management. Reconciliations to comparable GAAP measures are available in the accompanying schedules and on the Company's website. The financial measures presented are consistent with the Company's historical financial reporting practices. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies, and are not identical to corresponding measures used in our various agreements or public filings. ABOUT ENLIVEN MARKETING TECHNOLOGIES Enliven Marketing Technologies Corporation (formerly Viewpoint Corporation) is a leading Internet Marketing Technology Company, offering Internet marketing and online advertising solutions through a powerful combination of proprietary visualization technology, and a Premium Rich Media advertising platform for the creation, delivery and reporting of PRM. Enliven's family of brands include Unicast, the Internet Marketing and Advertising Technology Group, and Springbox, the Creative Digital Marketing Solutions Group. The company's technology and online advertising solutions are leveraged by some of the world's most esteemed brands, including AOL, GE, Sony, and Toyota. More information can be found at http://www.enliven.com. The company has approximately 140 employees with offices in New York, NY, Los Angeles, CA, Austin, TX and London, England. Safe Harbor for Forward-Looking Statements Statements in this Press Release may contain certain forward-looking statements relating to Enliven Marketing Technologies and its expectations for the proposed merger with DG FastChannel. All statements included in this Press Release concerning activities, events or developments that Enliven Marketing Technologies expects, believes or anticipates will or may occur in the future are forward-looking statements. Actual results could differ materially from the results discussed in the forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and involve known and unknown risks, uncertainties and other factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by forward-looking statements, including the following: the risk that the Merger will not close because of a failure to satisfy one or more of the closing conditions; the risk that Enliven Marketing Technologies' business will have been adversely impacted during the pendency of the Merger; the risk that the operations will not be integrated successfully; and the risk that the expected cost savings and other synergies from the transaction may not be fully realized, realized at all or take longer to realize than anticipated. Additional information on these and other risks, uncertainties and factors is included in Enliven Marketing Technologies' Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other documents filed with the SEC. Additional Information In connection with the proposed merger, DG FastChannel and Enliven Marketing Technologies have filed a proxy/registration statement and other related documents with the Securities and Exchange Commission (SEC). INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY/REGISTRATION STATEMENT, INCLUDING AMENDMENTS THERETO, WHEN THEY BECOME AVAILABLE, AS THEY CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND RELATED MATTERS. INVESTORS AND SECURITY HOLDERS WILL HAVE ACCESS TO FREE COPIES OF THE PROXY STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC BY DG THROUGH THE SEC WEB SITE AT http://WWW.SEC.GOV. THE PROXY/REGISTRATION STATEMENT AND RELATED MATERIALS MAY ALSO BE OBTAINED FOR FREE FROM DG FASTCHANNEL, INC. BY DIRECTING A REQUEST TO: DG FASTCHANNEL, INC. ATTN: INVESTOR RELATIONS DEPARTMENT, 750 WEST JOHN CARPENTER Freeway, Suite 700, Irving, TX 75039, telephone 972/581-2000. Participants in the Solicitation Enliven Marketing Technologies and its executive officers and directors and certain other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Enliven Marketing Technologies' stockholders with respect to the proposed merger. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the companies' stockholders in connection with the proposed merger are set forth in the proxy statement/prospectus filed with the SEC. More detailed information regarding the identity of potential participants, and their direct or indirect interests, by securities, holdings or otherwise, is also set forth in the definitive proxy statement. You can find more information about Enliven Marketing Technologies' executive officers and directors in Amendment No. 1 to its annual report on Form 10-K filed with the SEC on April 29, 2008. Copyright (C) 2008 Enliven Marketing Technologies Corporation. All Rights Reserved. Enliven, Unicast, and Springbox are trademarks or registered trademarks of Enliven Marketing Technologies Corporation.
Contact: Investor Relations: 212-201-0800 [email protected] ENLIVEN MARKETING TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) Three Months Ended June 30, March 31, 2008 2007 2008 Revenue: Advertising systems $1,628 $1,426 $1,377 Search 729 1,726 958 Services 3,262 680 2,069 Licenses 1 5 - Total revenue 5,620 3,837 4,404 Cost of revenue: Advertising systems 702 873 717 Search 25 28 28 Services 1,882 481 1,693 Licenses - - - Non-cash stock-based compensation charges 30 13 31 Depreciation 97 27 90 Amortization of intangible assets - 28 - Total cost of revenue 2,736 1,450 2,559 Gross profit 2,884 2,387 1,845 Operating expenses: Sales 546 809 593 Marketing 272 422 257 Research and development 783 778 835 General and administrative 3,129 1,994 2,629 Non stock-base compensation charges 313 630 341 Depreciation 117 113 119 Amortization of intangible assets 881 230 952 Total operating expenses 6,041 4,976 5,726 Loss from operations (3,157) (2,589) (3,881) Other income (expense) Interest and other income, net 12 61 39 Interest expense (208) (200) (208) Gain/(Loss) on Disposal of Fixed Assets - - - Loss on early extinguishment of debt - - - Loss on conversion of debt - - - Changes in fair values of warrants to purchase common stock and conversion feature of convertible notes (213) (2,418) 4,055 Total other income (expense) (409) (2,557) 3,886 Gain/loss before provision for income taxes (3,566) (5,146) 5 Provision for income taxes - 16 12 Net Loss from continuing operations (3,566) (5,162) (7) Net Loss $(3,566) $(5,162) $(7) Basic and diluted net loss per common share $ (0.04) $(0.07) $(0.00) Weighted average number of shares outstanding-basic and diluted 99,088 76,577 99,079 ENLIVEN MARKETING TECHNOLOGIES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (Unaudited) Six Months Ended June 30, 2008 2007 Revenue: Advertising systems $3,005 $2,536 Search 1,687 3,211 Services 5,331 1,399 Licenses 1 11 Total revenue 10,024 7,157 Cost of revenue: Advertising systems 1,419 1,285 Search 53 71 Services 3,575 937 Licenses - - Non-cash stock-based compensation charges 61 24 Depreciation 187 53 Amortization of intangible assets - 56 Total cost of revenue 5,295 2,426 Gross profit 4,729 4,731 Operating expenses: Sales 1,139 1,531 Marketing 529 809 Research and development 1,618 1,560 General and administrative 5,758 3,859 Non stock-base compensation charges 654 957 Depreciation 236 228 Amortization of intangible assets 1,833 358 Total operating expenses 11,767 9,302 Loss from operations (7,038) (4,571) Other income (expense) Interest and other income, net 51 112 Interest expense (416) (404) Gain/(Loss) on Disposal of Fixed Assets - - Loss on early extinguishment of debt - - Loss on conversion of debt - - Changes in fair values of warrants to purchase common stock 3,842 (2,261) and conversion feature of convertible notes Total other income (expense) 3,477 (2,553) Gain/loss before provision for income taxes (3,561) (7,124) Provision for income taxes 12 28 Net Loss from continuing operations (3,573) (7,152) Net Loss ($3,573) ($7,152) Basic and diluted net loss per common share ($0.04) $0.10 Weighted average number of shares outstanding-basic and diluted 99,084 72,148 ENLIVEN MARKETING TECHNOLOGIES CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (Unaudited) June 30, 2008 December 31, 2007 Assets Current assets: Cash and cash equivalents $ 1,351 $6,929 Marketable securities 293 311 Accounts receivable, net of reserve of $229 and $202, respectively 5,872 7,701 Prepaid expenses and other current assets 431 723 Total current assets 7,947 15,664 Restricted cash 422 417 Property and equipment, net 2,392 1,403 Goodwill 15,103 15,103 Intangible assets, net 7,735 9,553 Other assets 99 61 Total assets $33,698 $42,201 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,701 $ 4,712 Accrued expenses 453 345 Deferred revenue 273 234 Current portion of notes payable 389 488 Current portion of warrants 92 469 Accrued incentive compensation 545 545 Current liabilities related to discontinued operations 231 231 Total current liabilities 4,684 7,024 Accrued expenses - Deferred Rent 150 271 Warrants to purchase common stock 4,999 8,464 Subordinate notes 2,801 2,616 Unicast notes 1,307 1,381 Springbox accrual 2,966 2,818 Stockholders' equity Preferred stock - - Common stock 99 99 Paid-in capital 320,385 319,644 Treasury stock (1,015) (1,015) Accumulated other comprehensive loss 5 9 Accumulated deficit (302,683) (299,110) Total stockholders' equity 16,791 19,627 Total liabilities and stockholders' equity $33,698 $42,201 ENLIVEN MARKETING TECHNOLOGIES CORPORATION
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO ADJUSTED OPERATING INCOME
(LOSS) (in thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, 2008 2007 2008 2008 2007 Income (Loss) from Operations ($3,157) ($2,589) ($3,881) ($7,038) ($4,571) Plus: Stock based Compensation: COS-Ad Systems 4 4 4 8 8 COS - Services 26 9 27 53 16 Sales and marketing 76 91 88 164 177 Research and development 26 26 33 59 54 General and administrative 211 513 220 431 726 Depreciation 214 140 209 423 281 Amortization 881 258 952 1,833 414 Acquisition Costs 843 0 0 843 0 Adjusted Operating Income (Loss) ($876) ($1,548) ($2,348) ($3,224) ($2,895)
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