Onstream Media Corporation (ONSM)
F3Q2010 Earnings Call Transcript
August 17, 2010 4:30 pm ET
Brett Maas – IR, Hayden IR
Randy Selman – Chairman, President and CEO
Robert Tomlinson – SVP and CFO
Jeff Miller [ph]
Leo Novat [ph]
Alan Messner [ph] – Alcore Associates [ph]
Howard Geiger [ph]
Fred Milligan – Sanders Morris Harris
Previous Statements by ONSM
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Good afternoon, and welcome to the Onstream Media Corporation conference call to discuss the company's fiscal 2010 third quarter financial results. All participants have been placed on a listen-only mode and the floor will be opened for questions and comments following the presentation.
At this time, I would like to turn the floor over to our host, Brett Maas of Hayden IR. Sir, you may begin.
Thank you. Hello, good afternoon. Slide two, forward-looking statements. I'd like to point out that during the course of the conference call, there may be statements made relating to future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.
Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors including those set forth in the company's filings with the Securities and Exchange Commission.
It also should be noted that the webcast of today's conference call may be found on the Internet by visiting Onstream Media’s corporate website at www.onstreammedia.com and then by selecting company at the top of the web page and then clicking on the Press Releases. At that web page, you will find a link to the news release we issued to announce the company's fiscal 2010 third quarter financial results and webcast.
An archived version of the webcast will be available shortly and accessible from the Press Release’s page and be available for the next 12 months pursuant to SEC guidelines.
Finally, those interested in reviewing our recently filed 10-Q, which contains all of the financial information being discussed today, can find this document also via our corporate website by selecting Company and under that heading Investor Relations and then clicking on SEC Filings, where all of our recent SEC filings can be found as well as the Edgar database directly at www.sec.gov and then search for company filings.
At this time, I would like to introduce Randy Selman, President and Chief Executive Officer of Onstream. Randy, floor is yours.
Good afternoon and thank you for joining us. Today we will review our results for the third fiscal quarter 2010 which ended June 30, 2010 as well as our year-to-date results. We'll also update on our overall strategic progress including some details about our products including MarketPlace365. With me today is our Chief Financial Officer, Robert Tomlinson.
Hopefully you’ve all had the opportunity to review our financial results which were released yesterday afternoon, August, 16 after the close of the market.
This was a strong quarter for Onstream as we generated 188,000 in cash before changes in working capital, our best operating performance to-date, due to a sequential increase in our revenue and our aggressive cost reduction initiatives.
Revenues for our third fiscal quarter 2010, the period ended June 30, 2010 were approximately 4.4 million, up 7.2% sequentially from our second fiscal quarter of 2010 and even with revenues of 4.4 million in the third fiscal quarter of 2009.
Audio and web conferencing services group revenues were approximately 2.3 million for the three months ended, June 30, 2010, a decrease of approximately 19,000, 0.8% from the corresponding period of the prior fiscal year. But the sequential quarter-over-quarter revenues were up 211,000 or 9.9% over the previous second quarter of 2010. From this increase it appears the revenue reduction we’ve experienced over the past year in this segment is beginning to abate.
Digital media services group revenues were approximately 2.1 million for the three months ended, June 30, 2010 as well as for the three months ended, June 30, 2009. However, as we have seen over the last several quarters and again this quarter DMSP and hosting revenues showed growth by 15.5% as compared to the same quarter last year and 20.4% compared to year-to-date results in the prior year’s same period. For the quarter, webcasting revenues
were flat with last year’s same quarter.
In August of 2010 we announced the debut of
MarketPlace365 with SUBWAY. Over 100 of the top food, beverage and consumer packaged goods and service providers are participating in the restaurant chain's new online, perpetual business-to-business marketplace. The launch of the marketplace coincided with SUBWAY's annual convention held July 23 to 25 2010.
The virtual tradeshow was well received by the SUBWAY franchises and will serve as a great case study for other promoters and corporations considering deploying our innovative solution. In addition to the initial MarketPlace365 launch with SUBWAY more marketplaces are expected to launch in the coming months with MarketPlace365 revenues increasing to more meaningful levels during fiscal 2011.
Currently we have 15 signed MarketPlace365 promoter agreements, a dozen channel partners and a pipeline of tradeshow organizers, publishers and associations continues to go. I will talk more about our products, particularly our MarketPlace365 platform and growth opportunities later before opening the call for questions, but for now I will turn the call over to Robert who will provide financial details of the quarter and year-to-date. Robert?
Thank you, Randy, and good afternoon. As Randy mentioned, consolidated revenues were approximately $4.4 million for the three months ended June 30, 2010, approximately equal to the revenues for the corresponding prior year quarter. However, please note that the quarter consolidated revenues represent a 7.2 sequential increase from the consolidated revenues for the immediately preceding second quarter of this same fiscal year.