POMPANO BEACH, Fla., Aug. 15 FL-Onstream-Recap
POMPANO BEACH, Fla., Aug. 15 /PRNewswire-FirstCall/ -- Onstream Media
Corporation (Nasdaq: ONSM), a leading online service provider of live and
on-demand digital media communications and applications, today provided a
recap of the Company's conference call held on August 14, 2008. Fiscal year
2008 third quarter financial results and recent financial and business
developments, as well as the outlook for the remainder of the fiscal year and
the proposed Narrowstep acquisition, were discussed on the conference call.
Financial highlights of the management-led presentation included the
following:
-- Quarterly revenue increased 18.7% year-over-year and Web Communications
Services Group revenue increases 20.3% year-over-year. Total year-to-date
revenue has increased by approximately $5.2 million, or 64.9%, to
approximately $13.2 million compared to approximately $8 million last year.
-- The Webcasting division's revenues increased 25.3% year-to-date,
reaching almost $4.5 million, compared to approximately $3.6 million last
year. The DMSP and hosting division had year-to-date revenues of approximately
$1.1 million, representing 113.3% growth.
-- Guidance was increased to a record breaking $17.5 million in revenues
for the 2008 fiscal year, or 45% year-over-year revenue growth, including the
contribution from Infinite Conferencing, up from previous guidance of
approximately $17.0 million, or 40% growth. This guidance does not include key
catalysts for growth including Qwest, the Auction Video initiatives and sales
of iEncode, which are not expected to result in any meaningful revenue
contribution for the remainder of fiscal 2008, although management expects
them to positively impact 2009 revenues.
-- Organically, Onstream grew its revenues approximately 9% in the third
quarter over the comparable prior year quarter, and has posted 16.7% organic
revenue growth year-to-date. Management announced that it anticipates higher
organic growth rates in fiscal 2009.
Business and product development highlights of the management-led
presentation included the following:
-- The Narrowstep acquisition is anticipated to close during the first
quarter of fiscal 2009 and is considered by Onstream's management to be one
of, if not the last, key components of the finalization of the Digital
Management Services Platform (DMSP). Research and development spending, which
has recently affected operating performance, on the current projects is
expected to be completed by March 31, 2009. Management indicated that a fully
developed DMSP will be a complete solution for virtually any type or size
customer to participate and use Internet video services to promote their
products and services to targeted audiences via the web.
Randy Selman, Onstream's CEO, stated, "The overall growth in the digital
media sector has been slower than analysts and management expected. However,
the analysts continue to discuss and report on an expected migration of
dollars being spent in the broadcasting media, which are expected to shift
toward Internet-based video services. This is the wave of the future, and
Onstream is at the forefront of this." He continued, "We believe the
accelerating shift to Internet-based video services will soon result in a
significant improvement in the overall sector's revenues. Our strong
competitive position, including our large established customer base and the
powerful, comprehensive offering we're creating, puts Onstream in a
particularly strong competitive position as this market matures."
Elaborating on the role of the Narrowstep acquisition in Onstream's future
plans, Mr. Selman responded, "Narrowstep's telvOS technology takes the DMSP
platform to the next level. Integrating telvOS into the DMSP will not only
provide the TV on the Web experience with all the quality, channels, and
superb user experience, but also enables us to offer Web on the TV.
Advertising insertion, pay per view, HD quality, playlist generator, digital
rights management and advanced content management are all part of the telvOS
technology. When the integration of telvOS and DMSP is completed, Onstream
will have a single platform that will enable any creator of content to not
only stream it on the web but make it also available to the next generation of
set top boxes in the home."
-- In January, Onstream introduced iEncode(TM), a full-featured, turnkey,
standalone webcasting solution. Onstream has delivered this product to key
test customers and is making some adjustments to the user interface based on
their feedback. Units have been shipped to several resellers and Onstream will
soon launch joint sales and marketing programs with them. Negotiations with a
key hardware manufacturer to joint market a combined product are underway.
-- For the more advanced users such as publishers, broadcasters and other
more sophisticated content developers, Onstream will soon release the
Streaming Publisher version of the DMSP. Streaming publisher provides
additional features such as automated transcoding of video files, ability to
define a player template, permissioning (which enables users to define access
to content), secure streaming, and a reports portal.
A rebroadcast of the conference call, to be archived for one year, can be
accessed online at http://www.visualwebcaster.com/event.asp?id=50412.
About Onstream Media:
Onstream Media Corporation (Nasdaq: ONSM) is an online service provider of
live and on-demand internet video, corporate web communications and content
management applications. Onstream Media's pioneering Digital Media Services
Platform (DMSP) provides customers with cost effective tools for encoding,
managing, indexing, and publishing content via the Internet. The DMSP provides
our clients with intelligent delivery and syndication of video advertising,
and supports pay-per-view for online video and other rich media assets. The
DMSP also provides an efficient workflow for transcoding and publishing
user-generated content in combination with social networks and online video
classifieds, utilizing Onstream Media's Auction Video(TM) (patent pending)
technology. In addition, Onstream Media provides live and on-demand
webcasting, webinars, web and audio conferencing services. In fact, almost
half of the Fortune 1000 companies and 78% of the Fortune 100 CEOs and CFOs
have used Onstream Media's services.
Select Onstream Media customers include: AAA, AXA Equitable Life Insurance
Company, Bonnier Corporation, Dell, Deutsche Bank, Disney, National Press
Club, NHL, MGM, PR Newswire, Televisa, WireOne, Shareholder.com, and the U.S.
Government. Onstream Media's strategic relationships include Akamai, Adobe,
eBay, FiveAcross/Cisco and Qwest. For more information, visit Onstream Media
at http://www.onstreammedia.com or call 954-917-6655.
Cautionary Note Regarding Forward Looking Statements
Certain statements in this document and elsewhere by Onstream Media are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such information includes, without limitation,
the business outlook, assessment of market conditions, anticipated financial
and operating results, strategies, future plans, contingencies and
contemplated transactions of the company. Such forward-looking statements are
not guarantees of future performance and are subject to known and unknown
risks, uncertainties and other factors which may cause or contribute to actual
results of company operations, or the performance or achievements of the
company or industry results, to differ materially from those expressed, or
implied by the forward-looking statements. In addition to any such risks,
uncertainties and other factors discussed elsewhere herein, risks,
uncertainties and other factors that could cause or contribute to actual
results differing materially from those expressed or implied for the
forward-looking statements include, but are not limited to fluctuations in
demand; changes to economic growth in the U.S. economy; government policies
and regulations, including, but not limited to those affecting the Internet.
Onstream Media undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or
otherwise. 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 Onstream Media Corporation's
filings with the Securities and Exchange Commission.
Additional Information and Where to Find It
Onstream intends to file with the SEC a Registration Statement on Form
S-4, which will include a joint proxy statement/prospectus of Onstream and
Narrowstep and other relevant materials in connection with the proposed
transaction. THE JOINT PROXY STATEMENT/PROSPECTUS WILL BE MAILED TO THE
STOCKHOLDERS OF ONSTREAM AND NARROWSTEP. INVESTORS AND SECURITY HOLDERS OF
ONSTREAM AND NARROWSTEP ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS
AND THE OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT ONSTREAM, NARROWSTEP AND THE PROPOSED
TRANSACTION. The joint proxy statement/prospectus and other relevant materials
(when they become available), and any other documents filed by Onstream or
Narrowstep with the SEC, may be obtained free of charge at the SEC's web site
at www.sec.gov. Investors and security holders may obtain free copies of the
documents filed with the SEC by Narrowstep at narrowstep.com or by contacting
Narrowstep Investor Relations via telephone at (609) 945-1772. In addition,
investors and security holders may obtain free copies of the documents filed
with the SEC by Onstream at www.onstreammedia.com or by contacting Onstream's
Investor Relations via telephone at 646-536-7331. Investors and security
holders are urged to read the joint proxy statement/prospectus and the other
relevant materials when they become available before making any voting or
investment decision with respect to the proposed transaction.
Narrowstep and its respective directors and executive officers may be
deemed to be participants in the solicitation of proxies from the stockholders
of Narrowstep and Onstream in favor of the proposed transaction. Information
about the directors and executive officers of Narrowstep and their respective
interests in the proposed transaction will be available in the joint proxy
statement/prospectus.
Onstream and its respective directors and executive officers may be deemed
to be participants in the solicitation of proxies from the stockholders of
Onstream and Narrowstep in favor of the proposed transaction. Information
about the directors and executive officers of Onstream and their respective
interests in the proposed transaction will be available in the joint proxy
statement/prospectus
Media Relations:
Chris Faust
FastLane Communications
973-582-3498
cfaust@fast-lane.net
Investor Relations:
Brett Maas
Hayden Communications
646-536-7331
brett@haydenir.com
SOURCE Onstream Media Corporation
