CHICAGO, IL--(Marketwired - March 20, 2014) -
rVue Holdings, Inc., (OTCQB: RVUE), a premier advertising technology platform for digital place-based media, announced its financial results for the fourth quarter and full year periods ended December 31, 2013.
Fourth Quarter Highlights include:
- Fourth Quarter core revenue increased 1.9% to $154,100, from $151,300 last year. Core revenue increased 38.5% sequentially compared to the $111,300 for the third quarter.
- Total revenue decreased 23.8% to 190,000 from $249,200 for such period last year, due to decreases in non-core revenue from managed third party networks. Sequentially, total revenue increased 29.1% compared to the $147,200 for the third quarter.
- Total expenses decreased 8.9% to $458,100 from $503,000, reflecting continued focus on expense reduction.
- Net loss for the fourth quarter was $268,100, or less than one cent per share, down 5.6% compared to a net loss of $254,800, or less than one cent per share, in the fourth quarter last year, largely due to non-recurring expense related to stock awards for directors.
Full-Year Highlights include:
- Full-year core revenue was $508,400, up 157.5% compared to $197,444 for 2012.
- Total revenue was $674,406, up 12.0% compared to the $602,363 for 2012.
- Total expenses were $2.8 million, down 36.9% compared to $4.4 million in 2012.
- Net loss for the year was $2.1 million, or $(0.02) per share, down 44.5% compared to a net loss of $3.8 million, or $(0.07) per share last year.
"This was a productive transition year for rVue, as we grew our core revenue -- which represents our primary source of growth going forward -- and significantly reduced operating expenses … resulting in a substantial drop in our losses," commented Mark Pacchini, President and CEO of rVue Holdings, Inc. "As a result, we are positioned to achieve break-even at approximately $5 million in annualized revenue, and we are focused on growing our top line to surpass this threshold. It was particularly encouraging that our core revenue growth resulted from both new and existing clients, demonstrating the progress we are making in penetrating this emerging market. We remain very optimistic about the digital place-based media opportunity, because traditional media continues to see its audience erode and advertisers are looking for efficient alternatives. More importantly, we are increasingly confident in rVue's 'one source' positioning within this space."
Mr. Pacchini continued, "We have refocused our business development efforts on four key segments: 1) large agencies; 2) small and mid-sized agencies; 3) a direct-to-client offering; and 4) political agencies and special interest groups. We have allocated resources to support each of these segments. I am actively involved in business development, along with Steve Schildwachter, our chief marketing officer, leveraging our rolodexes from the large agency world and top-tier corporate accounts. Our board members are helping us dialog with the two major U.S. political parties, fueling our political segment. Though our industry is still in its infancy, the early response is encouraging. Our innovative platform helps to simplify, standardize and reduce the time and labor costs which hinders the digital place-based advertising process."
Steve Schildwachter, rVue's chief marketing officer, added, "In 2014, expanding our network relationships is a key area of focus for rVue. We are committed to building our network partnerships and keeping our network data complete and current."
Eric Kristoff, rVue's chief technology officer, said "rVue's team is making frequent upgrades to the rVue platform. This ensures that our software leads change in the industry and makes us increasingly relevant to network partners, agencies and clients."
"Our operating expenses have been rationalized to our current revenue level, creating a more solid platform from which we can build," added Mr. Pacchini. "During 2014, our focus will be on top-line growth, as we leverage our innovative platform, and communicate with our 180-plus network partners regarding the efficiencies we bring to the industry. Already during the first 10 weeks of 2014 we have met with numerous potential clients, discussing plans for 2014 and beyond. The adoption curve for any new advertising platform is long, and this is no different. But our platform represents software that augments human thinking, providing what we believe to be unrivaled simplicity and tremendous flexibility to advertisers. We will also be expanding this medium's reach by adding engagement tools, such as Instagram and Star Star Brand, making advertising more relevant. In the aggregate, our efforts will strengthen the digital place-based advertising market and bolster rVue's leadership role within it."
Management will host a conference call to discuss its financial results at 4:30 p.m. ET today, March 20, 2014. Details are as follows:
rVue Holdings, Inc. is an advertising technology company providing the digital distribution platform for the Digital Place-Based Advertising industry. The Company connects approximately one million digital screens across 190 networks delivering access to 250 million daily impressions in one simple platform. Backed by the industry's most intuitive and intelligent platform, rVue has the technology, data and expertise to connect brands and targeted consumers where and when it matters most. For more information, please visit http://www.rvue.com.
Forward Looking Statements:
This press release contains "forward looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements contained in this press release that are not purely historical are forward-looking statements. Forward-looking statements give the Company's current expectations or forecasts of future events. Such statements are subject to risks and uncertainties that are often difficult to predict and beyond the Company's control, and could cause the Company's results to differ materially from those described. The Company is providing this information as of the date of this press release and does not undertake any obligation to update any forward looking statements contained in this press release as a result of new information, future events or otherwise. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Important factors that could cause such differences include, but are not limited to, the Risk Factors and other information set forth in the Company's Annual Report on Form 10-K to be filed today and in our other filings with the Securities and Exchange Commission.