SOURCE: Broadcast International, Inc.

Broadcast International, Inc.

April 03, 2013 09:00 ET

Broadcast International Reports Full Year 2012 Results

SALT LAKE CITY, UT--(Marketwired - Apr 3, 2013) - Broadcast International (OTCQB: BCST) ("BI"), a leading provider of video-powered broadcast solutions, reported financial results for the fiscal year ended December 31, 2012.

Revenue was $7.5 million compared to $8.4 million in 2011. The decrease was primarily due to fewer expansion sites installed for the company's largest digital signage customer.

Gross profit was a record $2.7 million or 36% of total revenue, an improvement from $2.6 million or 31% of total revenue in 2011.

Total operating expenses decreased 17% to $8.8 million from $10.6 million in 2011. The decrease was primarily due to effective cost cutting programs.

Net income totaled $1.6 million or $0.02 per diluted share compared to $1.3 million or $0.02 per diluted share in 2011. The improvement was primarily due to a gain on the extinguishment of debt, as well as a decrease in the company's loss from operations, partially offset by a decrease in the amount of derivative valuation gain related to the company's convertible notes and investor warrants.

About Broadcast International
Broadcast International is a leading provider of video-powered broadcast solutions, including IP, digital satellite, Internet streaming and other types of wired/wireless network distribution. BI's patented CodecSys software is a breakthrough, multi-codec video compression technology that cuts video bandwidth requirements over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of rich-media applications and offers unprecedented price/ performance benefits for existing applications. Broadcast International is a public company (OTCQB: BCST) headquartered in Salt Lake City, UT.

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Forward Looking Statements
All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our Business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.

    31-Dec-11   31-Dec-12
Current Assets            
  Cash and cash equivalents   $ 961,265   $ 394,342
  Restricted cash     --     140,700
  Trade accounts receivable, net     1,239,903     821,608
  Inventory     60,851     306,296
  Prepaid expenses     203,973     90,067
  Total current assets     2,465,992     1,753,013
Property and equipment, net     1,417,134     572,107
Other Assets, non current            
  Debt offering costs     123,278     42,176
  Patents, net     131,079     120,928
  Deposits and other assets     406,004     196,292
  Total other assets, non current     660,361     359,396
  Total assets   $ 4,543,487   $ 2,684,516
Current Liabilities            
  Accounts payable   $ 1,252,538   $ 2,293,470
  Payroll and related expenses     390,206     363,568
  Other accrued expenses     175,008     299,728
  Unearned revenue     10,449     51,335
  Current portion of notes payable (net of discount of $103,859 and $947,994, respectively)     2,068,016     3,102,006
  Other current obligations     1,067,649     --
  Derivative valuation     3,760,200     1,191,269
    Total current liabilities     8,724,066     7,301,376
Long-term Liabilities            
  Long-term portion of notes payable (net of discount of $659,496 and $0, respectively)     6,349,445     --
  Total long-term liabilities     6,349,445     --
  Total liabilities     15,073,511     7,301,376
Commitments and contingencies     --     --
  Preferred stock, no par value, 20,000,000 shares authorized; none issued     --     --
  Common stock, $.05 par value, 180,000,000 shares authorized; 75,975,656 and 107,473,820 shares issued as of December 31, 2011 and December 31, 2012, respectively     3,798,783     5,373,691
  Additional paid-in capital     96,859,058     99,594,490
  Accumulated deficit     -111,187,865     -109,585,041
    Total stockholders' deficit     -10,530,024     -4,616,860
    Total liabilities and stockholders' deficit   $ 4,543,487   $ 2,684,516
    For the Year Ended Dec 31, 2011   For the Year Ended Dec 31, 2012
Net sales   $ 8,446,082   $ 7,523,624
Cost of sales     5,868,601     4,819,624
Gross profit     2,577,481     2,704,000
Operating expenses:            
  Administrative and general     6,172,794     4,546,612
  Selling and marketing     1,277,629     1,908,763
  Research and development     2,410,249     1,754,163
  Impairment of assets     26,180     --
  Depreciation and amortization     685,191     558,148
    Total operating expenses     10,572,043     8,767,686
    Total operating loss     -7,994,562     -6,063,686
Other income (expense):            
  Interest income     2,327     --
  Interest expense     -1,000,072     -1,542,424
  Gain on derivative valuation     11,724,400     8,829,748
  Note conversion offering expense     --     -47,348
  Retirement of debt offering costs     --     -53,150
  Debt conversion costs     -476,234     -1,095,309
  (Loss) gain on extinguishment of debt     -954,017     1,578,914
  (Loss) gain on sale of assets     -362     512
  Other income, net     2,966     -4,433
    Total other income     9,299,008     7,666,510
Income before income taxes     1,304,446     1,602,824
Provision for income taxes     --     --
Net income   $ 1,304,446   $ 1,602,824
Income per share basic   $ 0.02   $ 0.02
Income per share diluted   $ 0.02   $ 0.02
Weighted average shares basic     75,416,916     100,798,223
Weighted average shares diluted     78,098,166     106,533,844

Contact Information

  • Company Contact:
    Cameron Francis
    Vice President Products
    Broadcast International
    Email Contact

    Investor Relations Contact:
    Michael Koehler or Matt Glover
    Liolios Group, Inc.
    Email Contact