SOURCE: NeuLion, Inc.

NeuLion, Inc.

March 17, 2011 08:10 ET

NeuLion Reports 2010 Year-End Results

PLAINVIEW, NY--(Marketwire - March 17, 2011) - NeuLion, Inc. (TSX: NLN), the multi-platform broadcast technology company, today announced results for the three months and year ended December 31, 2010. (All amounts are in U.S. dollars.)

For the three months ended December 31, 2010:

  • Revenue was $11.1 million, as compared to $9.0 million for the three months ended December 31, 2009, marking a period-over-period increase of $2.1 million, or 23%.
  • Cost of revenue, exclusive of depreciation and amortization, was $4.6 million, as compared to $4.0 million for the three months ended December 31, 2009, marking a period-over-period increase of $0.6 million, or 15%.
  • Consolidated net loss was $2.9 million (including $1.8 million of non-cash charges), as compared to $1.5 million (including a $1.0 million recovery of non-cash charges) for the three months ended December 31, 2009, marking a period-over-period increase of $1.4 million, or 93%.
  • Non-GAAP Adjusted EBITDA Loss was $1.1 million, as compared to $2.5 million for the three months ended December 31, 2009, marking a period-over-period improvement of $1.4 million, or 56%.

For the year ended December 31, 2010:

  • Revenue was $33.2 million, as compared to $28.1 million for the year ended December 31, 2009, marking a year-over-year increase of $5.1 million, or 18%.
  • Cost of revenue, exclusive of depreciation and amortization, remained constant at $14.4 million.
  • Consolidated net loss was $17.2 million (including $6.2 million of non-cash charges), or $0.14 per share of common stock, basic and diluted, as compared to $19.6 million (including $6.1 million of non-cash charges), or $0.18 per share of common stock, basic and diluted, for the year ended December 31, 2009, marking a year-over-year improvement of $2.4 million, or 12%.
  • Non-GAAP Adjusted EBITDA Loss was $11.0 million, as compared to $13.9 million for the year ended December 31, 2009, marking a year-over-year improvement of $2.9 million, or 21%.

Non-cash charges consist of depreciation and amortization, stock-based compensation and unrealized gain/loss on derivative.

As of December 31, 2010, we had $12.9 million in cash and cash equivalents.

2011 Outlook

We expect 2011 to be a year of strategic transformation and improved recognition. Over the past few years, most of our resources have been focused on building and deploying our leading video platform for professional and collegiate sports content. We have assembled a market-leading customer base that includes the NHL, the NBA, the NFL, and Ultimate Fighting Championship along with Duke University, the University of Nebraska, Ohio State, and many others.

Recently, we have built our reputation outside of sports with key customers such as Dish Network and SundanceNow. In 2011, in addition to continued investment and expansion of our sports-related business, a key initiative will focus on further diversifying our customer base by providing broadcast services to additional non-sports business sectors. These include cable networks, cable programmers, video content aggregators, and telecommunications companies which are in the midst of planning and implementing their Internet delivery strategy. In the coming months, we will provide details on the strategy and customer implementations.

"The demand for our Internet broadcasting services continues to be strong. The dramatic increase in consumer preference for Internet-delivered content will significantly expand our set of prospective customers and create a deeper opportunity for lasting growth," said Nancy Li, Chief Executive Officer of NeuLion.

Use of Non-GAAP Measures
We report Non-GAAP Adjusted EBITDA Loss because it is a key measure used by management to evaluate our results and make strategic decisions about our company, including potential acquisitions. Non-GAAP Adjusted EBITDA Loss represents consolidated net loss before interest, income taxes, depreciation and amortization, stock-based compensation, unrealized gain/loss on derivatives, investment income, non-controlling interests and foreign exchange gain/loss. This measure does not have any standardized meaning prescribed by U.S. GAAP and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP. The below table reconciles our non-GAAP Adjusted EBITDA Loss to its most directly comparable GAAP measure, consolidated net loss:

Consolidated Statement of Operations Reconciliation:                    
  Years ended,     Quarter ended,  
  December 31,     December 31,  
  2010     2009     2010     2009  
  $     $     $     $  
                       
Consolidated net loss on a GAAP basis (17,167,466 )   (19,640,921 )   (2,957,255 )   (1,454,961 )
                       
Depreciation and amortization 5,177,980     4,141,117     1,393,876     1,045,520  
Stock-based compensation 2,360,187     1,167,789     481,350     152,712  
Unrealized (gain) loss on derivative (1,389,300 )   801,350     0     (2,236,850 )
Investment income and foreign exchange gain (loss) (14,634 )   (362,070 )   (49,604 )   3,785  
                       
Non-GAAP Adjusted EBITDA loss (11,033,233 )   (13,892,735 )   (1,131,633 )   (2,489,794 )

About NeuLion
NeuLion, Inc. (TSX: NLN) is a multi-platform broadcast technology company that enables its partners to stream and monetize digital broadcast content. Consumers can view and interact with this content on any Internet-enabled device. NeuLion works with internationally recognized brands including: the NHL, the NFL, the NBA, UFC and NCAA Division I schools and conferences, KyLinTV (Chinese), ABS-CBN (Filipino), Talfazat and Talfazat-ART (Arabic), TV-Desi (South Asian), Sky Angel (Christian), Dish Network and Sundance. Partner content can be viewed via the Internet on PCs, mobile devices, tablets, Internet-enabled TVs, gaming consoles, on the television through NeuLion's set top boxes as well as via other consumer accessories. NeuLion's corporate headquarters is based in New York. For more information, visit www.neulion.com.

Forward-Looking Statements
Forward-looking statements involve significant risk, uncertainties and assumptions. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, we cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and we assume no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to develop and execute on our business plan, including further diversifying our customer base; continuing to invest in and expand our sports-related business, our ability to integrate the operations of TransVideo International Ltd. with our own; our ability to increase revenue; general economic and market segment conditions; our customers' subscriber levels; the financial health of our customers; our ability to pursue and consummate acquisitions in a timely manner; our continued relationships with our customers; our ability to negotiate favorable terms for contract renewals; competitor activity; product capability and acceptance rates; technology changes; regulatory changes; foreign exchange risk; interest rate risk; and credit risk. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in Item 1A, "Risk Factors" in our 2010 Annual Report on Form 10-K available on www.sec.gov and filed on www.sedar.com.

Contact Information

  • Press Contact:
    Jennifer Powalski
    Corporate Communications
    516-622-8334
    Email Contact

    Investor Relations Contact:
    G. Scott Paterson
    Vice Chairman
    416-368-6464
    Email Contact