BOULDER, Colo. - New Frontier Media plans to test a direct-to-consumer set-top box in the European market this year, according to the company's fourth quarter financial report.

The publicly traded company reported net income of $1.9 million for the period ending March 31, up from $1.7 million in the same quarter last year. Earnings per share increased to $0.08 from $0.07 in fourth quarter 2007.

"New Frontier Media's financial performance during the fourth fiscal quarter was solid," said CEO Michael Weiner. "The company's fundamentals are strong and we intend to leverage our strong balance sheet, including over $19 million of cash and investments, to pursue selective projects and acquisitions geared to future growth."

New Frontier's plans for the fiscal year 2009 include growing the company's core transactional TV business with the continued rollout of its Penthouse TV brand.

Weiner said the company expects an increase in distribution opportunities in both the U.S. and Europe as a result of the strong euro and the economic advantages gained from New Frontier's domestic expansion.