SOURCE: NeuLion, Inc.

NeuLion, Inc.

May 12, 2011 08:33 ET

NeuLion Reports Q1 2011 Results

PLAINVIEW, NY--(Marketwire - May 12, 2011) - NeuLion, Inc. (TSX: NLN), the multi-platform broadcast technology company, today announced results for the three months ended March 31, 2011 (all amounts are in U.S. dollars):

  • Revenue was $9.9 million, as compared to $7.8 million for the three months ended March 31, 2010, marking a period-over-period increase of $2.1 million, or 27%.

  • Cost of revenue, exclusive of depreciation and amortization, was $4.0 million, as compared to $3.7 million for the three months ended March 31, 2010, marking a period-over-period increase of $0.3 million, or 8%. Cost of revenue, exclusive of depreciation and amortization, as a percentage of revenue was 38%, as compared to 45% for the three months ended March 31, 2010, marking a period-over-period improvement of 7%.

  • Consolidated net loss was $3.9 million, which includes $1.9 million of non-cash charges, netting a non-GAAP Adjusted EBITDA loss of $2.0 million, as compared to a consolidated net loss of $3.5 million, which includes $0.5 million of non-cash charges, netting a non-GAAP Adjusted EBITDA loss of $3.0 million for the three months ended March 31, 2010, marking a period-over-period improvement in non-GAAP Adjusted EBITDA loss of $1.0 million, or 33%.

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

As of March 31, 2011, we had $8.1 million in cash and cash equivalents.

Q1 Highlights

This quarter was characterized by continued momentum with the launch of several new partner networks, live streaming and product launches. We announced the debut of UFC.TV, a premium live video experience for Ultimate Fighting Championships providing fans the most interactive, digital experience to date. We also continued to strengthen our college business throughout March 2011 with streaming 400+ live college basketball events where viewers spent an average of 31 minutes consuming this video and audio content. We are in the midst of successfully carrying the NBA and NHL playoffs as well as the 2011-12 Major League Soccer season. As mainstream adoption of Internet-enabled devices continues to grow, forthcoming new enhancements and upgraded services for smartphones, such as Android, and tablets are expanding to a number of our existing partner networks.

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. generally accepted accounting principles (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 U.S. GAAP measure, consolidated net loss:

Consolidated Statement of Operations Reconciliation:
Three months ended,
March 31,
20112010
$$
Consolidated net loss on a GAAP basis(3,903,054)(3,511,802)
Depreciation and amortization1,445,4191,276,965
Stock-based compensation395,214207,257
Unrealized gain on derivative0(999,900)
Investment income and foreign exchange loss24,18627,223
Non-GAAP Adjusted EBITDA loss(2,038,235)(3,000,257)

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 are 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2010, which is 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