BOULDER, Colo.—New Frontier Media (NOOF), the Colorado-based publicly traded adult entertainment company, issued a press release Friday reporting its fiscal 2011 second quarter results. Despite reporting losses of approximately $200,000 for the third quarter ending Sept. 30, 2010, CEO Michael Weiner said the company has “made meaningful progress towards its fiscal 2011 objectives.”
“We have been successful in growing our Transactional TV international revenue with little incremental investment in the business thus far, and we recently launched our content in Asia and are optimistic that this region will provide another opportunity to expand our international revenue,” continued Weiner. “During the most recent quarter, we began making additional investments to support and further expand the international services. Those investments have included the licensing of new pay-per-view channels in Latin America and Europe as well as the addition of storage equipment to support international content packages.”
Weiner also commented on the company cash balances, which, he said, “continue to be solid at $14.8 million despite our $3.6 million investment in a producer-for-hire project, our $0.4 million use of cash to repurchase shares, and our other uses of cash to invest in the expansion of our international services. We believe these investments will provide shareholder return over the long term and overall, New Frontier Media will continue to be a leader in its industry for the foreseeable future.”
Comparisons with last year’s performance show a mixed bag in terms of revenue, but also consistency in terms of increased operating expenses, which increased to $7.2 million as compared to $5.5 million in the same prior year quarter and were primarily impacted by:
- A $0.3 million increase in Transactional TV segment expenses
- A $1.1 million increase in Film Production segment expenses
- A $0.2 million increase in Corporate Administration segment expenses
According to the release, fiscal year to date financial highlights include:
- For the six-month period ending Sept. 30, 2010, net sales were $23.6 million as compared to $23.9 million in the same period the prior year.
- The company reported net income from continuing operations during the six-month period ending Sept. 30, 2010, of $0.4 million, or $0.02 per share, compared to $2.1 million, or $0.11 per share, in the same period the prior year.
- Cash flows from operating activities of continuing operations during the six-month period ending Sept. 30, 2010 were $0.4 million as compared to $2.9 million during the same period the prior year.
- Cash flows from operating activities of continuing operations during the six-month period ending Sept. 30, 2010, reflect $3.6 million of cash outflows invested in a producer-for-hire arrangement, and the company expects to fully recover these amounts in the next six months.
NOOF stock, which is traded on Nasdaq, opened the day at $1.86 and closed slightly higher, at $1.90.
The announcement can be read here.
