Trading Update

 

TIDMBRST 
 
RNS Number : 7527V 
Burst Media Corporation 
16 July 2009 
 

 
 
16 July 2009 
 
 
Burst Media Corporation 
 
 
Trading Update 
 
 
Burst Media Corporation ("Burst" or "the Company"), the international online 
advertising services company, today announces an update on trading ahead of the 
announcement of its results for the six months ended 30 June 2009, which is 
scheduled for 24 September 2009. 
 
 
Trading for the six months to 30 June 2009 in line with management expectations 
 
 
The Company completed the half year in line with management's expectations, 
despite operating in a very challenging trading environment. As anticipated by 
the Board, the Company was impacted by a general slowdown in ad spend in the 
first quarter, however trading improved significantly in the second quarter. 
 
 
Total revenue for the first half of the current year is estimated to be 
approximately US$12.1m, down approximately US$1.3m compared to the same period 
last year. This is due to the adConductor business where sales in the half are 
expected to be US$1.3m (2008: US$ 2.7m). adConductor was affected by the loss of 
the significant TACODA account, which was cancelled when AOL acquired TACODA at 
the end of 2007 and decided to take this function in-house. Revenue from 
adConductor customers other than TACODA increased year on year by over 70%. The 
Board is also pleased to announce that adConductor added four significant new 
customers in the first half including Wolters Kluwer, the international 
publisher of scientific and medical journals. 
 
 
Revenue from the Company's media businesses, Burst Network and Burst Direct, is 
expected to be US$10.8m in the first half (2008: US$10.7m). The general slowdown 
in ad spending that began in the last quarter of 2008 impacted significantly on 
the Company's media business in the first quarter of the current year. However, 
in the second quarter, as negative economic factors began to abate, the Company 
achieved a 23% year-over-year growth in Network and Direct revenue resulting in 
an overall performance at similar levels to the same period in 2008. 
 
 
As of 30 June 2009, the Company had US$9.4m in cash on its balance sheet (2008: 
US$11.1m). During the period the Company utilised US$749,000 of its cash 
resources to re-purchase and retire a total of 12.4 million common shares. It is 
the Board's intention that the Company will continue to re-purchase shares when 
appropriate. However, the Board considers it unlikely that further re-purchases 
will take place prior to the announcement of the Company's interim results on 24 
September 2009. In addition, the Board notes that the Company has capitalised 
US$1.3m in software development costs since 30 June 2008. 
 
 
The Company continues to actively and opportunistically look for investments 
that enhance Burst's core network business. 
 
 
Commenting, David Hanger, Chairman of the Board of Directors, said, 
"Anticipating the weak economy at the start of the year in our plans, Burst has 
performed in line with the Board's expectations in the first half of 2009 and is 
currently on-track for the full year with good prospects in each of our business 
units. We are in strong fiscal shape with no debt and significant cash reserves 
and are looking forward to executing on our plan for the remainder of 2009." 
 
 
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 Coffin, Chief Executive Officer+1 781-852-5271 
Steven Hill, Chief Financial Officer [phone] 
 
 
Hudson Sandler 
 
 
Nick Lyon / James White [phone] 
 
 
Altium 
 
 
Tim Richardson / Paul Chamberlain [phone] 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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