Business & Finance
Business and Finance
Business and Finance
Wed, November 19, 2008
Tue, November 18, 2008 
LOS ANGELES--([ BUSINESS WIRE ])--Mandalay Media, Inc. (OTCBB: MNDL) (the "Company" or "Mandalay") announced today results for the quarterly period ended September 30, 2008. The results exclude the acquisition of AMV Holding Limited ("AMV"), a European leader in direct-to-consumer mobile Internet content and services, which occurred on October 23, 2008 subsequent to the end of the quarter. The Company had quarterly revenue of approximately $5.0 million, EBITDA excluding stock option expense, a non-GAAP measure of $(1.3 million) and a net loss of $3.0 million, or $(0.09) per share. The net loss includes $0.7 million of stock option expense. Mandalay had no operations during the same period in 2007.
For the six months ended September 30, 2008, Mandalay had revenue of $10.3 million, EBITDA excluding stock option expense, a non-GAAP measure of $(2.7 million) and a net loss of $6.4 million, or $0.20 per share. The net loss includes $2.0 million of stock option expense.
On an unaudited pro forma basis, assuming the Company had completed the acquisition of AMV and had consolidated the results of its operations, for the quarterly period ended September 30, 2008, the combined companies would have had revenue of $14.5 million and EBITDA excluding stock option expense of $0.4 million. For the six months ended September 30, 2008, on an unaudited pro forma basis, the two companies would have generated revenue of $30.0 million and EBITDA excluding stock option expense of $0.1 million.
Some of the highlights include:
- Expanded Distribution with Major Mobile Operators in:
- United States
- Brazil
- Italy
- Strong Growth in Key Monthly Operating Metrics:
- Page Views: Approximately 30 million – growth of 33% over previous quarter
- Downloads: Approximately 3.5 million – growth of 14% over previous quarter
- Subscription Revenue: Approximately 15% of Revenue – growth of 9% over previous quarter
- Improved Operating Margins Driven by:
- Improved licensing agreements with major Content Partners
- Growth in Subscription Revenue Services
- Addition of WAP Advertising Revenue in Twistbox lifestyle content portals
- Lower Operating costs
- Expanded Direct-to-Consumer marketing capability. The acquisition of AMV has enhanced Mandalay's ability to reach consumers directly. The combination of Twistbox's global on-deck distribution with AMV's direct-to-consumer expertise uniquely positions Mandalay Media to maximize revenues for its wireless operator and content partners.
"With the acquisitions of Twistbox and AMV over the past 8 months, we have been able to leverage Mandalay Media as a platform to build a compelling mobile media business, " said Bruce Stein, CEO of Mandalay Media. "Based on our success in acquiring, financing and integrating companies in this difficult global economic environment, we are exploring other accretive opportunities as well."
"The recent acquisition of AMV, with its Direct-to-Consumer revenue and services in Games and Life Style categories is a perfect complement to our On-Deck revenues in the same genres," stated Twistbox CEO Ian Aaron. "AMV has experienced strong growth and earnings over the past 4 years in the United Kingdom, Australia and South Africa. We intend to begin rolling out AMV's services and business models to several of our key markets including the United States, Russia, Spain and Germany during the second half of our fiscal year."
NON-GAAP Financial Measures
To comply with Regulation G promulgated pursuant to the Sarbanes-Oxley Act, Mandalay Media attached to this news release and will post to the company's investor relations web site ([ www.mandalaymediainc.com ]) any reconciliations of differences between non-GAAP financial information that may be required in connection with issuing the company's quarterly financial results.
The Company, as is common in its industry, uses EBITDA as a measure of performance to demonstrate earnings exclusive of interest and non-cash events. The Company manages its business based on its cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses EBITDA as its primary management guide. Since an outside investor may base its evaluation of the Company's performance based on the Company's net loss not its cash flows, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net loss, loss from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principals generally accepted in the United States (GAAP). The most directly comparable GAAP reference in the Company's case is the removal of interest, depreciation, amortization, taxes and other non-cash expense.
About Mandalay Media, Inc.:
Managed by leading media and technology industry executives, the Company's mission is to build a unique combination of new media distribution and content companies through acquisitions with domestic and foreign businesses with strong management teams and historical financial performance. For more information, please visit [ www.mandalaymediainc.com ].
About Twistbox Entertainment, Inc.:
Twistbox is a leading global producer and publisher of mobile entertainment. Twistbox has exclusive licenses with industry-leading brands, direct distribution with more than 120 wireless operators in over 45 countries and provides an extensive portfolio of award-winning games, WAP sites and mobile TV channels. For more information, please visit [ www.twistbox.com ].
About AMV Holding Limited:
AMV is a leading mobile media and marketing company delivering games and lifestyle content directly to consumers in the United Kingdom, Australia, South Africa and various other European countries. AMV markets its well established branded services including Bling, Phonebar and GameZone through a unique Customer Relationship Management (CRM) platform that drives revenue through mobile internet, print and TV advertising. For more information, please visit [ www.amvholding.com ].
Safe Harbor:
This press release contains forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "estimate", "expect", "anticipate" or "believe" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause the Company's results to differ materially from the expectations include the following: consumer demand for the Company's products; consumer spending trends; fluctuations in the currencies of the countries in which the Company operates against the US dollar; timely development and release of the Company's products; competition in the industry; the Company's ability to manage expenses; the Company's ability to manage and sufficiently integrate acquisitions of other companies; adverse changes in the securities markets; and other factors described in our filings with the SEC, including our Annual Report on Form 10-KT for the transition period from January 1, 2008 to March 31, 2008. The Company does not undertake, and specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
