iBEAM Broadcasting Reports Record Revenue for the Fourth Quarter 2000 TUESDAY, JANUARY 30, 2001 4:31 PM - BusinessWire
P. SUNNYVALE, Calif., Jan 30, 2001 (BUSINESS:IBEM), the leading global Streaming Media Network (SMN), today reported its financial results for the fourth quarter and year ended December 31, 2000. Revenues for the quarter increased 76% to $9.1 million, compared to $5.2 million in the third quarter of 2000. For the fourth quarter of 2000, the company recorded a net loss of $380.7 million including restructuring and goodwill charges, or $3.22 per share, as compared to a net loss of $36.2 million, or $0.36 per share, for the third quarter of 2000. Excluding non-cash charges (earnings before depreciation and amortization) and restructuring, the company recorded a net loss of $26.0 million, or $0.22 per share in the fourth quarter of 2000, compared to $19.4 million, or $0.19 per share in the third quarter of 2000.
Fourth quarter 2000 results include a non-cash charge of $333.8 million, reflecting a one-time goodwill impairment charge of $310 million and amortization of $23.8 million related to the goodwill and intangible assets associated with the acquisitions of webcasts.com and NextVenue during fiscal 2000. Fourth quarter 2000 results also include a restructuring charge of $12.0 million, which is largely non-cash, reflecting write-down of certain fixed assets. The company plans to incur further restructuring charges in the first quarter of 2001 associated with cost-savings initiatives that will enable the company to move more quickly to profitability, now projected to be the fourth quarter of 2002, a year in advance of the company's prior estimate.
For the year ended December 31, 2000, revenues were $18.1 million, with a net loss of $482.1 million, or $5.03 per share. Excluding non-cash charges and restructuring, the company recorded a net loss of $81.1 million, or $0.85 per share, for the year. Per share results presented for the year assume conversion of the company's preferred stock on January 1, 2000 or at the date of issuance, if later.
iBEAM's acquisition of NextVenue, a leader in streaming media solutions for the financial services market, announced in late July, closed October 3, and is included in iBEAM's fourth quarter results.
Peter Desnoes, iBEAM's Chairman and CEO, commented, "I am extremely pleased with our continued success in extending our leadership position in streaming media during the quarter, exemplified by our ability to execute strong growth in key metrics of customer acquisition, revenue per customer, networks reached, and traffic delivered. With the addition of NextVenue, our enterprise business has grown dramatically. During the fourth quarter, nearly two-thirds of our revenue was generated from enterprise customers using iBEAM services and applications to communicate with streaming media for purposes such as training and development, corporate communications, sales and marketing, and web-based seminars. Overall growth also benefited from the entertainment segment of our business as it grew by more than 50%, and was responsible for the majority of a record 258 million megabytes of traffic delivered over our network in the quarter."
In the fourth quarter, iBEAM's customer base grew to more than 425 streaming media content providers, a 42% increase over the 300 reported as of the end of the third quarter. Customers using iBEAM's network to deliver their entertainment content include MTVi, RollingStone.com and LAUNCH.com. Enterprise customers using iBEAM's services and applications to effectively communicate with streaming media include Bristol-Myers Squibb, IBM, Accenture (formerly Andersen Consulting), Merrill Lynch and Goldman Sachs.
During the quarter, iBEAM continued rapid deployment of its hybrid fiber and satellite network in order to deliver high-quality streaming media as close to the end user as possible. iBEAM has signed agreements with 190 network partners including such notables as America Online, Inc., Excite@Home, and the fourth quarter addition of BellSouth. This reflects 19% growth over the 160 networks reported as of the end of the third quarter.
"We continue to introduce new applications and services that allow our customers to monetize their content and complement our suite of end-to-end streaming media solutions," remarked Desnoes. "Our recently announced Syndication Manager(TM) is the first fully-integrated Internet-based application that gives media and enterprise companies the power to set specific, business-based usage rules to control the distribution of their streaming media assets to multiple websites, and collect detailed usage data on their content. Our On-Target(TM) streaming ad insertion and On-Guard(TM) secure digital rights management offerings are meeting outstanding acceptance by our customer base. We have now served over 25 million streaming ads and provided more than 2.6 million secure downloads for our customers."
Geoff Ribar, chief financial officer of iBEAM, said, "Our core revenue, excluding consulting associated with our international joint ventures, grew nearly 87% from the third quarter, resulting from both organic growth and the addition of NextVenue. Expense growth experienced in the fourth quarter was anticipated as we added NextVenue operational costs and increased our promotional and branding efforts. We have largely completed the most capital intensive fixed-cost component of our network, and are now beginning to make a strong push towards profitability."
"In the fourth quarter, we incurred a restructuring charge primarily associated with the write down of certain fixed assets," Ribar continued. "During the first quarter of 2001, we anticipate incurring an additional restructuring charge of between $15 million and $20 million to maximize network efficiency based on our newly combined operations. We have also identified a substantial amount of discretionary spending that has been removed from our operating plan, which will dramatically improve our EBITDA moving forward."
"Based upon these actions and our expectation of continued strong top line growth, we now believe we will turn EBITDA-positive in the fourth quarter of 2002, and have sufficient funding for operations through fiscal 2001. We have substantially reduced our cash need for a fully funded business model to between $50 million and $60 million, and reaffirm our expectation that we will turn gross margin positive for the third quarter of 2001," Ribar concluded.
The fourth quarter 2000 goodwill impairment charge was taken following an impairment review triggered by the change in value of the company's stock since the date the shares in each of the acquisitions were valued.
iBEAM will hold a conference call to discuss these results on Tuesday, January 30, 2000 at 5:00 PM ET. The dial-in number is 913-981-4900. The replay number is 719-457-0820 (available 1/30-2/6). The confirmation code is 774087. The call will also be available via live webcast and subsequent replay on the company's website. To listen via this alternative, go to the investor information page at www.ibeam.com for complete details just prior to the call.
About iBEAM Broadcasting(R) Corp. iBEAM Broadcasting(R) Corp. (Nasdaq:IBEM) offers streaming media distribution, revenue-producing applications, and interactive Webcasting services to major entertainment and enterprise customers. iBEAM is leading the future of streaming media through its focus on customer care and improving its customers' businesses. iBEAM's On-Target(TM) ad insertion technology and Activecast(TM) interactive Webcasting capabilities create value for companies who use streaming media. iBEAM currently delivers over 70 million streams per month across its network of high-performance servers located in more than 190 networks around the world, connected by satellite, and augmented with fiber optic cable. More than 425 innovative companies use iBEAM, including media and entertainment leaders MTVi, Sony Music Entertainment, and LAUNCH.com. iBEAM was founded in 1998. For more information about iBEAM's services, visit www.ibeam.com, or contact the company at 645 Almanor, Suite 100, Sunnyvale, CA 94085, telephone 408-523-1600.
P. iBEAM's Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements, including but not limited to statements regarding iBEAM's ability to continue to increase its revenues and expand its customer base, reduce its capital expenditures and other operating expenses, improve its gross margins and reduce its cash consumption, iBEAM's expected target dates for turning EBITDA-positive and operating margin-positive, the projected sufficiency of iBEAM's cash resources, the deployment of iBEAM's streaming media services to the market, the success of recent acquisitions and joint ventures, market position, customer growth and adoption of iBEAM's services and products including newly introduced services and products. Actual results may differ materially from those anticipated in any forward-looking statement as a result of certain risks and uncertainties, including, without limitation, the early stage of iBEAM's operating history and the industry for Internet broadcast services, our inability to predict future demand for our services from new and existing customers, the impact of any future decline in the growth and valuation of entertainment and technology-oriented companies and the resulting impact on their capital spending, iBEAM's ability to reduce operating expenses and achieve additional cost efficiencies, iBEAM's ability to build its network to the edge of the Internet, iBEAM's ability to manage its expansion and raise additional capital and the complexity of iBEAM's broadcast network, iBEAM's ability to integrate new acquisitions and new joint ventures, the ability to add additional customers, iBEAM's ability to increase the size of its network and operate it without interruptions, and the impact of competition. For other risks and uncertainties applicable to iBEAM's business, investors are encouraged to refer to iBEAM's Form 10-Q for the period ended September 30, 2000 filed with the Securities and Exchange Commission.
iBEAM BROADCASTING CORPORATION Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)
12 Months Three months ended Ended Dec. 31, Sept. 30, June 30, March 31, Dec. 31, 2000 2000 2000 2000 2000
Revenue $9,062 $5,160 $3,380 $ 532 $18,134
Operating costs and expenses:
Cost of revenue 19,350 12,934 10,748 7,130 50,162 Engineering and development 4,801 4,925 4,755 3,904 18,385 Selling, general and administrative 18,799 12,834 12,829 7,076 51,538 Amortization of goodwill and intangibles (a) 333,755 9,234 5,287 -- 348,276 Amortization of stock-based compensation 2,012 2,951 3,646 4,094 12,703 Restructuring 11,964 -- -- -- 11,964
Total operating costs and expenses 390,681 42,878 37,265 22,204 493,028
Loss from operations (381,619) (37,718) (33,885) (21,672) (474,894) Interest and other income, net 960 1,538 805 317 3,620 Net loss (380,659) (36,180) (33,080) (21,355) (471,274) Deemed dividend related to preferred stock -- -- -- (10,796) (10,796) Net loss attributable to common stock ($380,659) ($36,180) ($33,080) ($32,151) ($482,070) Net loss per share attributable to common stock - basic and diluted ($ 3.22) ($ 0.36) ($ 0.61) ($ 3.04) ($ 6.82) Weighted average common shares outstanding 118,156 101,591 54,625 10,589 70,698
Pro forma: Pro forma net loss per share attributable to common stock (b) ($ 3.22)($ 0.36) ($ 0.36) ($ 0.43) ($ 5.03)
Net loss attributable to common stock ($380,659) ($36,180) ($33,080) ($32,151) ($482,070)
Less: Depreciation and amortization 6,921 4,604 3,502 2,158 17,185 Amortization of goodwill and intangibles (a) 333,755 9,234 5,287 -- 348,276 Amortization of stock-based compensation 2,012 2,951 3,646 4,094 12,703 Restructuring 11,964 -- -- -- 11,964 Deemed dividend related to preferred stock -- -- -- 10,796 10,796
Pro forma net loss ($ 26,007) ($19,391) ($20,645) ($15,103) ($ 81,146) Pro forma net loss per share excluding non-cash charges (b) ($ 0.22) ($ 0.19) ($ 0.23) ($ 0.20) ($ 0.85) Pro forma weighted average shares outstanding (b) 118,156 101,591 90,816 74,860 95,797
§ (a) Includes $310 million of impairment charges, as required by FAS 121, due to the change in the market value of the company.
§ (b) Assumes the conversion of preferred stock on January 1, 2000 or at the date of original issuance, if later.
iBEAM BROADCASTING CORPORATION Condensed Consolidated Balance Sheets (unaudited, in thousands)
December 31, December 31, ASSETS 2000 1999
Current assets: Cash and investments $ 71,597 $ 29,840 Accounts receivable 7,284 70 Prepaid expenses and other current assets 8,067 796
Total current assets 86,948 30,706
Property and equipment, net 67,578 12,912 Goodwill and other intangible assets, net 51,210 -- Other assets 5,181 1,123
$210,917 $ 44,741
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK
AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities: Accounts payable and accrued liabilities $ 18,188 $ 3,934 Deferred revenue 489 448 Restructure reserve 4,128 -- Current portion of capital lease obligations 8,727 1,573
Total current liabilities 31,532 5,955
Capital lease obligations, net of current portion 15,989 3,627
Total liabilities 47,521 9,582
Redeemable convertible preferred stock -- 61,192 Stockholders' equity (deficit) 163,396 (26,033)
$210,917 $ 44,741
CONTACT: iBEAM Broadcasting Corporation Rick Gaisser, 408/830-3548 ir@ibeam.com
URL: http://www.businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.
Copyright (C) 2001 Business Wire. All rights reserved.
KEYWORD: CALIFORNIA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET SOFTWARE EARNINGS
Auf Grund der Zahlen fällt die Aktie nachbörslich um 21,74% auf 2,25$, wo sie auf Tagestief schließt.
Hoffe Ihr habt den Absprung geschafft! Grüsse Auhof |