![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Burst Med Reg S | LSE:BRST | London | Ordinary Share | COM SHS USD0.01 (REGS) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 31.25 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMBRST RNS Number : 3168Q Burst Media Corporation 08 April 2009 8 April 2009 Burst Media Corporation Preliminary results for the year ended 31 December 2008 Burst Media Corporation ("Burst" or "the Company"), the international online advertising services and technology business, announces its preliminary results for the year ended 31 December 2008. Financial Summary The Board is pleased that the Company ended 2008 broadly in-line with management expectations as published in July 2008. As has been well publicized, the macroeconomic conditions deteriorated quickly and dramatically in the second half of 2008. However, despite the challenging trading environment, the Company's total revenue for the full year is broadly within the targeted range and EBITDA finished at the top-end of expectations. +--------------+-----------------------------------------------------------------------------+ | * | Total revenue was $27.3 million (2007: $27.1 million) | +--------------+-----------------------------------------------------------------------------+ | * | Total media business revenue decreased 5% to $22.6 million (2007:$23.8 | | | million) | +--------------+-----------------------------------------------------------------------------+ | * | Burst adConductor revenue increased 41% to $4.7 million (2007: $3.3 | | | million) | +--------------+-----------------------------------------------------------------------------+ | * | Gross profit decreased 1.4% to $13.0 million (2007: $13.2 million) | +--------------+-----------------------------------------------------------------------------+ | * | Adjusted net income(1) was $0.2 million (2007: $1.3 million) | +--------------+-----------------------------------------------------------------------------+ | * | Adjusted EBITDA was $0.5 million (2007: $1.4 million) | +--------------+-----------------------------------------------------------------------------+ | * | Net income (loss)(1) was $(0.3) million (2007: $0.3 million) | +--------------+-----------------------------------------------------------------------------+ Cash and cash equivalents at December 2008 was $10.6 million (2007: $12.6 million). Approximately $1.0 million of cash was utilized during 2008 to fund the development of the Company's core technology. These costs were capitalized and will be amortized over three years following completion of the project, expected at the end of 2009. We anticipate the project will continue at the current pace in 2009. In January 2009, the Company used $0.5 million of its cash to purchase and cancel 9.8 million common shares. Due to the strong collection of receivables, the Company has seen its cash balances remain strong post the year-end. Commenting, Jarvis Coffin, Chief Executive Officer, said: "Today, Burst Media's three divisions are providing value to web publishers in ways that they can recognize and support. Burst Network successfully raised prices for its vertical niche publishers in a deteriorating economy; Burst Direct's rapid growth rate helped fill more remnant inventory; and adConductor provided the expertise and technology to help large publishers such as BET Networks and MTV Networks expand their online reach by managing their own ad networks. Burst remains committed to its customers with its strong value proposition, which fortifies our Company even in the face of the challenging economic environment presented to us in 2009." Reconciliation of Net Income (loss) to Adjusted net income (loss)(1) and Adjusted EBITDA(1) (000's): +---------------------------------+--------+---------+ | | Year ended | | | December 31, | +---------------------------------+------------------+ | | 2008 | 2007 | +---------------------------------+--------+---------+ | Net | $(274) | $332 | | income | | | | (loss) | | | +---------------------------------+--------+---------+ | | | | +---------------------------------+--------+---------+ | Adjustments: | | | +---------------------------------+--------+---------+ | Restructuring | - | 735 | | charge | | | +---------------------------------+--------+---------+ | Strategic | 283 | - | | alternatives | | | +---------------------------------+--------+---------+ | Equity-based | 192 | 236 | | compensation | | | +---------------------------------+--------+---------+ | Adjusted | 201 | 1,303 | | net | | | | income (1) | | | +---------------------------------+--------+---------+ | Adjustments: | | | +---------------------------------+--------+---------+ | Interest | (239) | (579) | | income | | | +---------------------------------+--------+---------+ | Income | 73 | 296 | | tax | | | | expense | | | | (benefit) | | | +---------------------------------+--------+---------+ | | | | +---------------------------------+--------+---------+ | Depreciation | 466 | 369 | | and | | | | amortization | | | +---------------------------------+--------+---------+ | Adjusted | $501 | $1,389 | | EBITDA | | | | (1) | | | +---------------------------------+--------+---------+ (1) "Adjusted net income" (net income (loss) excluding restructuring charges, strategic alternatives and equity-based compensation) and "Adjusted EBITDA" (Adjusted net income before interest income, income tax expense (benefit), depreciation and amortization) are non-U.S.GAAP financial measures. The Company believes Adjusted net income and Adjusted EBITDA provide meaningful insight into the Company's ongoing economic performance and therefore uses both Adjusted net income and Adjusted EBITDA internally to assist in evaluating and managing the Company's operations. Note concerning forward looking statements This press release contains "forward-looking" statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business; any statements of the plans, strategies, and objectives of management for future operations; any statements of expectation or belief regarding future events, technology developments, or enforceability of our intellectual property rights; and any statements of assumptions underlying any of the foregoing. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: the unpredictable nature our rapidly evolving market and fluctuations in our business; the effects of competition; and any adverse changes in our customers' business. These and other risks and uncertainties associated with our business are described in our filings on AIM. We assume no obligation and do not intend to update these forward-looking statements. Enquiries: +-------------+--------------+ | Burst | | | Media | | | Corporation | | +-------------+--------------+ | Jarvis | +1 | | Coffin, | 781-852-5271 | | Chief | | | Executive | | | Steven | | | Hill, | | | Chief | | | Financial | | | Officer | | +-------------+--------------+ | | | +-------------+--------------+ | Hudson | | | Sandler | | +-------------+--------------+ | Nick | +44 | | Lyon / | (0) 20 | | James | 7796 4133 | | White | | +-------------+--------------+ | | | +-------------+--------------+ | Altium | | +-------------+--------------+ | Tim | +44 | | Richardson | (0) 20 | | / Paul | 7484 4040 | | Chamberlain | | +-------------+--------------+ Chairman's Statement The Board is pleased that the Company ended 2008 broadly in-line with management expectations as published at mid-year. As has been well publicized, the macroeconomic conditions deteriorated quickly and dramatically in the second half of 2008. However, despite the challenging trading environment, the Company's total revenue for the full year is broadly within the targeted range and EBITDA finished at the top-end of expectations. Historically, Burst Media has always reported the financial performance of its two media business units, Burst Network and Burst Direct, separately. However, as reported in our Interim Statement of 25 September 2008, following the successful consolidation of the management of the sales organization for these two business units and the increasing overlap in clients and accounts, the publication of the two separate revenue figures is no longer appropriate. Through the second half of 2008, the Company's brand advertising division, Burst Network, successfully completed the launch of 16 vertical networks. Each vertical is a network of specialist websites which focus on the interests of a particular demographic or consumer group. For example, one of the vertical networks is dedicated to environmental issues. Management implemented this strategy because brand advertisers will pay a premium to be able to directly advertise to its target consumer group through these dedicated Burst Media verticals. This strategy has delivered positive results with the average cost per thousand (CPM) price for the Burst Network increasing by approximately 25% compared to the prior year. These positive results were achieved during a period in which declining prices were the market trend across the ad network sector. During the second half of 2008, the economic downturn impacted all forms of internet advertising including brand advertising. However, the Board is confident that the transformation of this division from low-price run of network campaigns to brand-oriented solutions over the past two years means that the Burst Network is particularly well positioned to serve the needs of brand advertisers in the future. Burst Direct, the Company's direct response advertising division, enjoyed another year of rapid growth that in the second half of 2008 was supported by the emergence of Burst Direct's cost per action (CPA) program. The Board believes that having a robust CPA capability as part of its Burst Direct service is important especially in difficult economic times when marketers are apt to reallocate budgets to performance-based advertising programs. The Company's adConductor unit sells the technology and professional services to operate an online ad network. The unit continued its significant progress from 2007 by announcing six new customer wins in 2008. The headline contract win was BET Networks which is the second division of Viacom to select adConductor to manage their vertical network offering. The Company has continued to invest in adConductor's user interfaces to improve the productivity of existing customers, and the marketability of the product to new customers. Those programs began in 2008 and are on schedule. The Board believes these will help continue to accelerate the pace of new business contracts. In January 2009 the Board announced that, in view of its current trading performance and strong balance sheet and the challenging macro economic climate, proactive efforts to sell the Company at this time would not be in the best interest of the shareholders. The Board is focused on the ongoing development of the Company and believes that opportunities exist for the Company to take advantage of its relative strength to add critical mass to its businesses and to generate shareholder value. In January 2009 the Company purchased and cancelled 9.8 million common shares in order to provide liquidity to shareholders. On 3 March 2009, the Board announced that on 22 January 2009 it had received an unsolicited indicative expression of interest regarding a potential offer for the Company (the "Expression of Interest") but that it had unanimously rejected it. The Board acknowledged in that announcement the possibility that the Expression of Interest might be revised and resubmitted for further consideration. However, the Board now confirms that the potential offer for the Company contained within the Expression of Interest has been withdrawn. David J Hanger Non-Executive Chairman Chief Executive's Review Burst Media's ongoing objective is to provide recognizable value to independent web publishers that make up the "long tail" of the Internet. The "long tail" defines the individual web publishers that, in aggregate, exemplify the reason for the Internet's success. The audiences of these special interest websites are deeply engaged with their content, providing value for online advertisers. All three of our business units support the representation of these sites, individually and in aggregate, with the major advertisers whose budgets support these publishers' online endeavors. Online Reach Ad networks serve campaigns across a wide variety of sites that represent internet traffic as measured in individual visitors to a site, or "unique visitors" As measured and reported by comScore MediaMetrix. Burst Media, including inventory on some of its adConductor customers, reached 112.6 million unique monthly internet visitors in the U.S. in December 2008, up 40.2% from 80.3 million unique visitors in December 2007. This placed Burst Media as the 22nd largest internet property in the U.S. at December 2008. Burst Media reached 10.9 million unique monthly internet visitors in the U.K. in December 2008, up slightly from 10.6 million unique monthly visitors in December, 2007 and was the 20th largest U.K. internet property at December 2008(2). Media Business For the full year, revenue from the Company's two media divisions, Burst Network and Burst Direct, was down 5% to $22.6 million (2007: $23.8 million). This decrease is attributed to Burst Network which saw flat sales in the second half versus the first half due mostly to the deteriorating economic situation. In the fourth quarter, brand display advertising saw an increase in the number of delayed or cancelled advertising programs. However, productivity in key regional offices improved in the second half, reflecting the progress in our efforts to strengthen the sales force. Burst Network gives brand advertisers targeted access to tens of millions of monthly unique visitors across the independent web sites that are often referred to as the "long tail" of the Internet. The Burst Network offers brand advertisers guaranteed full disclosure on which special interest web sites will show their advertisements. There were approximately 4,800 premium web sites as of 31 December 2008 as compared to over 4,600 as of 31 December 2007(3). The advertisers can create custom web site packages targeting by content, behavior, demographics, geography and time of day. The inventory of available advertising impressions for Burst Network was 47.7 billion in 2008 as compared to 50.5 billion in 2007. Burst Network launched twelve Burst-branded vertical networks and four publisher-sponsored networks in 2008. Examples include the Burst Moms Network, the Auto Intenders Network and the Kiwibox Teen Network. This vertical network strategy contributed to average price increases of approximately 25% for the year versus 2007, which we believe reflects the success the Company had last year repositioning Burst Network with valuable brand advertisers. Burst Direct has made significant progress in the direct response, performance advertising segment of the market and has provided those customers seeking performance with an effective channel through which to pursue their advertising campaigns. It has experienced significant growth through its Direct Connect product offering and the increased use of purchased inventory to fulfill campaigns. Burst Direct successfully launched its cost per action (CPA) product offering in the second half, and gained approximately 25 unique advertisers by year-end. CPA advertising has been a potent part of the product offering for many of the online advertising companies, but it has been ill-suited to the full transparency rules that govern Burst Network and protect its brand customers. Burst Direct manages campaigns to maximize return on investment, which requires the ability to quickly reallocate advertising impressions based on action rates. This offer appeals to advertisers that are less focused on the exact placement of their advertising messages and more focused on the sales or leads that result from those messages. Burst Direct was associated with approximately 3,000 websites as of 31 December 2008 as compared to 3,900 as of 31 December 2007(3). This reduction was the result of a performance review of all sites in Burst Direct, following which a number of the underperforming sites were removed. Additionally, Burst Direct secures additional inventory from 51 strategic suppliers to support the performance requirements of their clients' campaigns. Co-operation and collaboration between our two media groups has continued to improve since combining the divisions in the first half, increasing our ability to serve advertisers with both brand and direct response advertising requirements. adConductor Revenue for the adConductor business unit grew 41% to $4.7 million in 2008 from $3.3 million in the prior year. As of the end of 2008, adConductor managed ten Network customers and 23 Publisher customers. During 2008, adConductor introduced enhanced user targeting capabilities, significantly improved its ad management tools to more effectively manage advertising campaigns and was awarded its eighth consecutive systems certification by BPA Worldwide. Burst Media has invested in the technology and processes required to run online advertising networks made up of unaffiliated web properties since its inception 13 years ago. With the adConductor product offering, we can support other companies in this activity. For these companies, adConductor provides the foundation for building advertising networks - namely the end-to-end ad management workflow and systems - as well as the expertise and business processes required to manage complex advertiser and publisher relationships. There are two products offered; multisite operators use adConductor for Networks; and single site publishers use adConductor for Publishers. In late 2008 we rebranded adConductor to reflect the distinction between our technology and media businesses by removing the "Burst" name from the product. This assists us in selling the platform to companies whose business objectives compete with our media businesses in the marketplace. Additionally, in early 2009 the division re-launched the Audience Backplane as the adConductor Inventory Exchange. This allows other media buyers to access inventory across our adConductor customer base with a low-commitment offering. We are confident that this will enable us to build stronger visibility and relationships with large online publishers. adConductor's first customer, TACODA, ended its relationship with Burst Media at the end of 2008 as AOL, which purchased TACODA in August of 2007, chose to bring all of TACODA's ad management functions inside its Platform-A division. Today, adConductor supports ten other networks, including MTV Networks and its six Tribes, Reed Business Information, and new customers including BET Networks, Artfact, Better the World, Dwell Magazine, and ShortTail Media. 2009 Outlook In 2009 the advertising world is facing a challenging economic environment. Despite hopes that were still being expressed by some late last year, the Board does not believe the Internet will be immune to the resulting pressures. In light of these circumstances, Burst Media has maintained a strong balance sheet with no debt and good reserves of cash. The depth of the operational management team has been reinforced and the strength of the customer base has increased. The Company survived the internet recession of 2001, and since then has transformed as a business, making it more capable of addressing different customer demands. Therefore it is now in a stronger position to trade through these challenging times. We believe Burst Network can maintain its position with regard to price and quality for the brand advertisers because the Burst Direct business is able to supply those customers who are more price conscious and focused upon performance related advertising.adConductor continues to improve the marketability of the product in order to gain share in its market segment. The Board anticipates a very challenging year ahead. Nevertheless, it believes that difficult economic times can offer opportunity for companies with the experience, financial resources and expertise to respond to customers' evolving needs. Jarvis Coffin Chief Executive Officer Notes: +-----+--------------------------------------------------------------------------+ | (1) | See reconciliation of Net income (loss) to Adjusted net income and | | | Adjusted EBITDA above. | +-----+--------------------------------------------------------------------------+ | (2) | Source: comScore MediaMetrix, December 2008 | +-----+--------------------------------------------------------------------------+ | (3) | Inclusive of approximately 1,900 and 2,000 web sites that are in both | | | Burst Network and Burst Direct at 31 December 2008 and 31 December 2007 | | | respectively | +-----+--------------------------------------------------------------------------+ CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS Years Ended December 31, 2008 and 2007 (in thousands, except share amounts) +-----------------------------------------------------------------------+-------------+--------+-------------+ | | 2008 | | 2007 | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Revenue | $27,257 | | $27,053 | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Cost | 14,258 | | 13,876 | | of | | | | | revenue | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Gross | 12,999 | | 13,177 | | profit | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Operating | | | | | expenses: | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Sales | 7,547 | | 6,270 | | and | | | | | marketing | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | General | 3,358 | | 3,751 | | and | | | | | administrative | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Technology | 2,471 | | 2,443 | | and | | | | | product | | | | | development | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Restructuring | - | | 735 | | charge | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Total | 13,376 | | 13,199 | | operating | | | | | expenses | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Loss | (377) | | (22) | | from | | | | | operations | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Other | | | | | income: | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Interest | 239 | | 579 | | income | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Other | (63) | | 71 | | income | | | | | (expense), | | | | | net | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Total | 176 | | 650 | | other | | | | | income | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Income | (201) | | 628 | | (loss) | | | | | before | | | | | income | | | | | tax | | | | | expense | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Income | 73 | | 296 | | tax | | | | | expense | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Net | $(274) | | $332 | | income | | | | | (loss) | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Basic | $0.00 | | $0.00 | | earnings | | | | | (loss) | | | | | per | | | | | share | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Fully | $0.00 | | $0.00 | | diluted | | | | | earnings | | | | | (loss) | | | | | per | | | | | share | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Weighted | | | | | average | | | | | shares | | | | | used in | | | | | calculating: | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Basic | 83,028,562 | | 82,996,781 | | earnings | | | | | (loss) | | | | | per | | | | | share | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ | Fully | 83,028,562 | | 83,049,529 | | diluted | | | | | earnings | | | | | (loss) | | | | | per | | | | | share | | | | +-----------------------------------------------------------------------+-------------+--------+-------------+ CONSOLIDATED CONDENSED BALANCE SHEETS December 31, 2008 and 2007 (in thousands, except share amounts) +-------------------------------------------------------------------+----------+--+----------+ | | 2008 | | 2007 | +-------------------------------------------------------------------+----------+--+----------+ | ASSETS: | | | | +-------------------------------------------------------------------+----------+--+----------+ | CURRENT ASSETS | | | | +-------------------------------------------------------------------+----------+--+----------+ | Cash and cash equivalents | $10,599 | | $12,583 | +-------------------------------------------------------------------+----------+--+----------+ | Accounts receivable, less allowance for doubtful | 7,141 | | 5,852 | | accounts of $222 in 2008 and $221 in 2007 | | | | +-------------------------------------------------------------------+----------+--+----------+ | Prepaid expenses and other current assets | 927 | | 412 | +-------------------------------------------------------------------+----------+--+----------+ | Total | 18,667 | | 18,847 | | current | | | | | assets | | | | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | PROPERTY AND EQUIPMENT, NET | 1,638 | | 831 | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | DEFERRED INCOME TAXES, NET | - | | 345 | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | OTHER ASSETS | 152 | | 221 | +-------------------------------------------------------------------+----------+--+----------+ | | $20,457 | | $20,244 | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | LIABILITIES AND STOCKHOLDERS' EQUITY: | | | | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | CURRENT LIABILITIES | | | | +-------------------------------------------------------------------+----------+--+----------+ | Due to publishers | $2,370 | | $2,454 | +-------------------------------------------------------------------+----------+--+----------+ | Other current liabilities | 1,512 | | 1,204 | +-------------------------------------------------------------------+----------+--+----------+ | Total | 3,882 | | 3,658 | | current | | | | | liabilities | | | | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | OTHER LONG TERM LIABILITIES | 175 | | 104 | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | Total | 4,057 | | 3,762 | | liabilities | | | | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | COMMITMENTS AND CONTINGENCIES | | | | +-------------------------------------------------------------------+----------+--+----------+ | | | | | +-------------------------------------------------------------------+----------+--+----------+ | STOCKHOLDERS' EQUITY | | | | +-------------------------------------------------------------------+----------+--+----------+ | Common stock, $.01 par value; 150,000,000 shares | | | | | authorized, | | | | +-------------------------------------------------------------------+----------+--+----------+ | 83,028,562 shares issued | 830 | | 830 | | and outstanding at December | | | | | 31, 2008 | | | | | and 2007 | | | | +-------------------------------------------------------------------+----------+--+----------+ | Additional paid-in capital | 25,658 | | 25,466 | +-------------------------------------------------------------------+----------+--+----------+ | Accumulated deficit | (10,088) | | (9,814) | +-------------------------------------------------------------------+----------+--+----------+ | Total | 16,400 | | 16,482 | | stockholders' | | | | | equity | | | | +-------------------------------------------------------------------+----------+--+----------+ | | $20,457 | | $20,244 | +-------------------------------------------------------------------+----------+--+----------+ CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2008 and 2007 (in thousands, except for share amounts) +----------------------------------------------------------------------------------------+----------+--------+----------+ | | 2008 | | 2007 | +----------------------------------------------------------------------------------------+----------+--------+----------+ | CASH | | | | | FLOWS | | | | | FROM | | | | | OPERATING | | | | | ACTIVITIES | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Net | $(274) | | $332 | | income | | | | | (loss) | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Adjustments | | | | | to | | | | | reconcile | | | | | net income | | | | | (loss) to | | | | | net cash | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | provided | | | | | by (used | | | | | in) | | | | | operating | | | | | activities: | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Depreciation | 466 | | 369 | | and | | | | | amortization | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Deferred | 280 | | (56) | | income | | | | | taxes | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Equity-based | 192 | | 364 | | compensation | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Unrealized | 83 | | (23) | | foreign | | | | | currency | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Provision | 26 | | 307 | | for bad | | | | | debts | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Deferred | 22 | | 57 | | rent | | | | | expense | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Changes | | | | | in: | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Accounts | (1,398) | | (579) | | receivable | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Prepaid | (401) | | 138 | | expenses | | | | | and | | | | | other | | | | | current | | | | | assets | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Other | 4 | | (14) | | assets | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Due | (84) | | (1,046) | | to | | | | | publishers | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Other | 308 | | 170 | | current | | | | | liabilities | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Net | (776) | | 19 | | cash | | | | | provided | | | | | by (used | | | | | in) operating | | | | | activities | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | CASH | | | | | FLOWS | | | | | FROM | | | | | INVESTING | | | | | ACTIVITIES | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Purchases | (1,270) | | (446) | | of | | | | | property | | | | | and | | | | | equipment | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Return | 62 | | - | | of | | | | | escrow | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Net | (1,208) | | (446) | | cash | | | | | used | | | | | in | | | | | investing | | | | | activities | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | CASH | | | | | FLOWS | | | | | FROM | | | | | FINANCING | | | | | ACTIVITIES | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Stock | - | | 11 | | option | | | | | exercises | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Repayments | - | | (13) | | of capital | | | | | lease | | | | | obligation | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | Net | - | | (2) | | cash | | | | | used | | | | | in | | | | | financing | | | | | activities | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | NET DECREASE | (1,984) | | (429) | | IN CASH AND | | | | | CASH | | | | | EQUIVALENTS | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | CASH | 12,583 | | 13,012 | | AND | | | | | CASH | | | | | EQUIVALENTS, | | | | | BEGINNING OF | | | | | YEAR | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ | CASH | $10,599 | | $12,583 | | AND | | | | | CASH | | | | | EQUIVALENTS, | | | | | END OF YEAR | | | | +----------------------------------------------------------------------------------------+----------+--------+----------+ +-----------------------------+--------+--------+--------+ | SUPPLEMENTAL | | | | | DISCLOSURE | | | | | OF CASH FLOW | | | | | INFORMATION | | | | +-----------------------------+--------+--------+--------+ | Cash | $- | | $1 | | paid | | | | | for | | | | | Interest | | | | +-----------------------------+--------+--------+--------+ | Cash | $67 | | $277 | | paid | | | | | for | | | | | taxes | | | | +-----------------------------+--------+--------+--------+ +-------------------------------+--------+--------+--------+ | NON-CASH | | | | | INVESTING | | | | | ACTIVITIES | | | | +-------------------------------+--------+--------+--------+ | Equity | $- | | $8 | | securities | | | | | received | | | | | in payment | | | | | of | | | | | accounts | | | | | receivable | | | | +-------------------------------+--------+--------+--------+ NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (in thousands, except share amounts) NOTE 1 - DESCRIPTION OF THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of BURST! Media UK Limited, the Company's wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain previously recorded amounts have been reclassified to conform to the current period presentation. Foreign Currency The financial accounts of BURST! Media UK Limited are measured using the local currency as its functional currency. The assets and liabilities of this subsidiary are translated into U.S.dollars at the current exchange rates as of the balance sheet dates and revenues and expenses are translated at average exchange rates each month. The cumulative effects of translating the functional currency into U.S. dollars are insignificant at December 31, 2008 and 2007. The Company also conducts certain transactions denominated in foreign currencies. Included in other income (expense), net were realized and unrealized net foreign currency losses of $12 and $82, respectively for the year ended December 31, 2008. Included in other income (expense), net were realized and unrealized net foreign currency gains of $2 and $23, respectively for the year ended December 31, 2007. Property and Equipment Property and equipment are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized using the straight-line method over the lesser of the lease term or the useful life of the asset. Certain costs related to computer software developed or obtained for internal use are capitalized in accordance with American Institute of Certified Public Accountants Statement of Position No. 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use." The Company amortizes internal use software costs over their estimated useful lives, which typically range from two to five years. The Company capitalized software developments costs of $954 for the year ended December 31, 2008. The Company did not capitalize any software development costs for the year ended December 31, 2007. There was no amortization expense related to technology and product development costs for the year ended December 31, 2008 as the product has not yet been placed in service. NOTE 2 - EARNINGS (LOSS) PER SHARE Basic and diluted earnings (loss) per share for the years ending December 31 are calculated as follows: +----------------------------------------+------------+--------+------------+ | | 2008 | | 2007 | +----------------------------------------+------------+--------+------------+ | Numerator: | | | | +----------------------------------------+------------+--------+------------+ | Net | $(274) | | $332 | | income | | | | | (loss) | | | | | used | | | | | in | | | | | calculating | | | | | basic and | | | | | diluted | | | | | earnings | | | | | (loss) per | | | | | share | | | | +----------------------------------------+------------+--------+------------+ | | | | | +----------------------------------------+------------+--------+------------+ | Denominator: | | | | +----------------------------------------+------------+--------+------------+ | Shares | 83,028,562 | | 82,996,781 | | used | | | | | in | | | | | calculating | | | | | basic | | | | | earnings | | | | | per share - | | | | | weighted | | | | | average | | | | | number of | | | | | common | | | | | shares | | | | | outstanding | | | | +----------------------------------------+------------+--------+------------+ | Effect | - | | 52,748 | | of | | | | | dilutive | | | | | securities | | | | | - stock | | | | | options | | | | +----------------------------------------+------------+--------+------------+ | Shares | 83,208,562 | | 83,049,529 | | used | | | | | in | | | | | calculating | | | | | diluted | | | | | earnings | | | | | per share | | | | +----------------------------------------+------------+--------+------------+ Antidilutive options outstanding were 3,306,705 and 3,353,455 at December 31, 2008 and 2007, respectively. NOTE 3 - RESTRUCTURING In 2007, the Company restructured its senior management team. As part of the restructuring, on February 26, 2007, William Davlin, the former Chief Financial Officer and Robert Hanna, the former Senior Vice President of Sales, announced their resignations from the Company to pursue other interests. They remained on the Board as uncompensated non-executive Directors until December 2007. On December 4, 2007 and December 7, 2007, respectively, Mr. Davlin and Mr. Hanna resigned from the Board of Directors. As part of their severance agreements, Mr. Davlin and Mr. Hanna each received lump sum payments of $297 and reimbursement for combined legal services of approximately $13. Both Mr. Davlin and Mr. Hanna had 110,000 options as of their separation date at a strike price of $1.46 that was immediately vested on February 26, 2007. In connection with the acceleration of these options, the Company recorded approximately $128 of equity-based compensation expense at the date of their resignation. These options expired unexercised in 2007. As of December 31, 2007 and 2008, Mr. Davlin and Mr. Hanna owned 5,274,583 shares and 10,305,860 shares of the Company's Common stock, which represented approximately 6.4% and 12.4% of the total outstanding Common shares of the Company, respectively. NOTE 4 - SUBSEQUENT EVENTS On January 19, 2009, the Board of Directors authorized the Company to repurchase the Company's common stock with an aggregate market value of up to $500. On January 21, 2009, the Company repurchased and cancelled 9,800,000 of the common shares outstanding at a price of 3.6 pence or $0.05 per share with an aggregate market value of $497. This information is provided by RNS The company news service from the London Stock Exchange END FR EANLXELSNEFE
1 Year Burst Media Corporation Chart |
1 Month Burst Media Corporation Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions