BOULDER, Colo.—Broadcast and satellite distributor New Frontier Media has released its fiscal results for the fourth quarter that ended March 31.
"New Frontier Media continued to advance its strategic objectives during the fourth quarter," said Michael Weiner, chief executive officer of New Frontier Media, Inc. "We grew international revenue within the Transactional TV segment by over 250 percent as compared to the same prior year quarter through new launches, gains in shelf space, and improved content performance. Our domestic Transactional TV business appears to have stabilized. Within the Film Production segment, our producer-for-hire arrangements generated approximately $3.9 million of revenue in the fourth quarter, and our distribution of mainstream content to cable platforms continued to provide meaningful growth for this segment.
"For the fiscal year as a whole, we generated approximately $6.5 million in operating cash flows from continuing operations after dedicating approximately $1.8 million in cash to fund a producer-for-hire arrangement. The $1.8 million is expected to flow back to the Company in the first half of fiscal year 2011 upon delivery of the remaining films and collection of the outstanding balance due. We ended fiscal year 2010 with approximately $17.2 million in cash and only $1.0 million outstanding under our line of credit facility after paying down $2.0 million in the fourth quarter."
Looking forward, the company plans to expand its international reach with launches in new markets, improve customer value in the Transactional TV segment, deliver the fourth installment of an episodic series and complete a new producer-for-hire agreement.
Going inside the numbers, the company’s overall revenue was $15.1 million compared to $13.6 million in the same quarter of the previous year. Transactonal TV revenue was down $1.4 million while video-on-demand only shrunk $600,000 to $5.5 million. The loss was partially offset by a $200,000 increase in international PPV revenue.
The company estimates that the lower revenue figures in the above segments was due to customers’ lower discretionary spending.
Pay-per-view revenue was down to $3.6 million compared to $4.4 million the prior year due to the loss of a channel on the largest direct broadcast satellite provider in the U.S.
Film production segment revenue enjoyed quite a healthy increase from $2.6 million to $5.6 million.
Producer-for-hire and other revenue increased by $3.9 million due to the completion of a $2.6 million producer-for-hire transaction as well as the initial delivery of films from a second producer-for-hire arrangement which generated approximately $1.3 million of revenue.
During the fourth quarter of the fiscal year 2010, New Frontier discontinued the operations of its IPTV set-top boxes due to lower than expected performance.
Net sales were $50.4 million for fiscal year 2010 as compared to $52.6 million in the prior fiscal year.
