Message #22 From:
NewsBot Date: November 14, 2006 11:09:00 AM
VCST News ViewCast Corporation Announces Third Quarter 2006 Financial Results
PLANO, Texas--(BUSINESS WIRE)--ViewCast Corporation (OTCBB: VCST), a leading global provider of
high-quality audio and video communication products, today reported
financial results for the third quarter ended September 30, 2006.
Third Quarter Financial Results
Net sales or total revenues from continuing operations for the third
quarter of 2006 were $3.3 million, an increase of 3 percent over the
$3.2 million reported in the third quarter of 2005, primarily due to
sales growth of the Niagara® Streaming Systems
product line. During the third quarter, ViewCast began shipping orders
for one of the company’s increasingly popular
products, the Niagara® GoStream™.
On a combined basis, Niagara system and application software product
sales increased 50 percent during the third quarter 2006 compared to
sales in the same quarter last year. Management expects continued sales
growth as new products begin to ship during the fourth quarter of 2006
and into 2007 and as orders are fulfilled from a recently signed OEM
contract.
“During the third quarter, the first orders
for Niagara GoStream came pouring in. Niagara GoStream is a distinctive
product because the user has single-button control in the creation and
presentation of video and audio on the Internet. No other product in the
market is comparable. Due to the popularity of GoStream, product orders
and shipments are increasing rapidly,” said
Dave Stoner, president of ViewCast Corporation. “If
anyone has looked at some form of streaming video on the Internet, it is
quite likely that ViewCast equipment was used to encode the image. As
our reputation continues to expand, the media and communications
industries increasingly turn to ViewCast to provide reliable and high
quality audio and video products.”
Total operating expenses from continuing operations for the third
quarter of 2006 were slightly less than $2.0 million, a 2 percent
increase from the $1.9 million reported in the third quarter of 2005.
Increased operating expenses primarily reflect the expenses incurred
during the third quarter related to ViewCast’s
participation in a major tradeshow, in addition to increased sales and
marketing personnel and activities during the third quarter of 2006.
Interest expense decreased during the third quarter of 2006 by almost 6
percent compared to similar expenses in the 2005 quarter.
The net loss from continuing and discontinued operations for the third
quarter of 2006 was $416,650, or $(0.02) per share, compared to a net
loss of $242,775, or ($0.02) per share, in the comparable 2005 quarter.
Third quarter EBITDA (earnings before interest, taxes, depreciation,
amortization and other income/expense items) loss was $99,880, compared
with the EBITDA of $254,182 reported in the third quarter of 2005. The
company considers EBITDA to be an important measure of performance
because it reflects one of the capital resources available to the company’s
operations that may be used to evaluate the actual performance of the
company.
“Although we experienced a loss in the third
quarter, we continue to make appropriate investments in R&D and sales to
support our growth and in anticipation of increased sales activity. We
have seen this result in new customers and contracts with potential for
sustained business in the future,” said
Laurie Latham, chief financial officer of ViewCast Corporation. “Our
move into expanded manufacturing facilities will soon be complete and
provide us with additional capacity to support the expected higher sales
volume.”
Nine-Month 2006 Results
Net sales or total revenues from continuing operations for the first
nine months of 2006 were $9.7 million, up 17 percent from revenues of
$8.3 million reported for the same period in 2005. The increase in
revenue was due to the continued demand for video capture cards and a
sharp rise in systems sales during the first nine months of the year.
Total operating expenses from continuing operations for the first nine
months of 2006 were $6.5 million, up 9 percent from $6.0 million during
the same period in 2005. Net loss from continuing and discontinued
operations for the first nine months of 2006 was $1.9 million, or
($0.10) per share, compared to a net loss of $2.1 million or ($0.11) per
share during the same period in 2005. The decrease in net loss was
primarily due to increased revenues and a reduction in other expenses
due to a charge for debt conversion expense in 2005 of $485,798 with no
similar expense incurred in 2006.
The EBITDA loss for the nine months of 2006 was $970,752 compared to an
EBITDA loss of $235,365 in 2005.
Business Highlights
ViewCast Chosen as OEM Supplier to a Global Network Leader
As a part of the company’s ongoing business
development strategy, an original equipment manufacturing (OEM)
agreement was signed on November 2 with one of the world’s
largest leaders in Internet networking. ViewCast will sell and license
certain products for resale on a stand-alone basis and/or as
incorporated into their products. Under the terms of the one-year
renewable agreement, orders have been placed and shipping begun for a
supply of Niagara GoStream and PowerStream Pro equipment.
ITVN Selects Osprey Video Capture Card for IPTV Streaming
During the third quarter, Interactive Television Networks, Inc.
purchased ViewCast’s Osprey digital capture
cards to stream on-demand content to the network’s
subscriber base.
Osprey-530 Video Capture Card Launched
The newest addition to the company’s Osprey
Studio Series, the Osprey-530 digital video capture card, launched on
September 11. Designed as a cost-effective streaming media solution for
broadcast professionals, the card combines digital and analog inputs for
live and on-demand video streaming.
Niagara GoStream is Shipping
ViewCast’s highly anticipated single-channel,
portable streaming media encoder, the Niagara GoStream started shipping
early in the third quarter. The compact encoder creates streaming video
content for Internet TV and mobile video devices. Designed for streaming
experts and beginners, the device is easy to use, and can quickly
transfer from indoor environment to remote locations. The simple, push
button technology, coupled with advanced operating features make
GoStream one of ViewCast’s most popular new
products. The first GoStream was shipped to Cherokee County School
District in South Carolina.
About ViewCast Corporation
ViewCast develops video and audio communication products for
delivering media dynamically via a variety of network types and
protocols.These products include Osprey®
Video capture cards and Niagara® video
encoders/servers featuring Niagara SCX encoder management software.Our products address the media capture, processing and delivery
requirements for a broad range of applications and markets.
Certain statements, including those made by Dave Stoner and Laurie
Latham and those regarding business outlook, contain “forward-looking”
information within the meaning of the Private Securities Litigation
Reform Act of 1995, which reflect the company's current judgment on
certain issues.Because such statements apply to future
events, they are subject to risks and uncertainties that could cause the
actual results to differ materially. Important factors which could cause
the actual results to differ materially include, without limitation, the
following: the ability of the company to service its debt; continued
losses by the company; the ability of the company to develop and market
new products as technology evolves; the ability of the company to meet
its capital requirements; increased competition in the video
communications; the ability of the company to meet governmental
regulations; and the ability of the company to obtain and enforce its
patents; avoid infringing upon third parties’
patents.The company will not update the guidance or
targets given in these statements during the next reporting period or
comment on its progress in the next reporting period to analysts or
investors until after it has closed its books on that reporting period.Any statements by persons outside the company speculating on the
progress of the quarter will not be based on internal company
information and should be assessed accordingly by investors.For
a detailed discussion of these and other cautionary statements and
factors that could cause actual results to differ from the company’s
forward-looking statements, please refer to the company’s
reports on Form 10-KSB and 10-QSB on file with the Securities and
Exchange Commission.
All trademarks are property of their respective holders.
