mdlk - Medialink Reports Third Quarter 2007 Results

Medialink Reports Third Quarter 2007 ResultsPR Newswire "US Press Releases "
NEW YORK, Nov. 14 /PRNewswire-FirstCall/ -- Medialink Worldwide Incorporated (Nasdaq: MDLK), a leading provider of diversified media services for professional communicators and marketers and, through its Teletrax(R) subsidiaries, a leading provider of digital video tracking services to content owners, today reported financial results for the third quarter ended September 30, 2007.
Revenues for the three months ended September 30, 2007, of $8.2 million increased by 14.0% from revenues of $7.2 million in the comparable 2006 period. Revenues from Teletrax digital video tracking services increased $226,000 or 31.4%, and revenues from media communications services increased $786,000 or 12.1%. Revenues from media communications services in the third quarter of 2007 included $631,000 recognized under a minimum commitment arrangement for which services were not required. This arrangement relates to a services agreement that was entered into in connection with the sale of U.S. Newswire in September 2006.
The Company incurred an operating loss of $2.1 million in the third quarter of 2007 as compared to an operating loss of $3.4 million in the 2006 quarter. Exclusive of Teletrax, the Company incurred an operating loss of $1.2 million in the third quarter of 2007, compared to an operating loss of $2.4 million in the 2006 quarter. The operating loss in the 2006 quarter includes $1.2 million for transaction-specific compensation paid in connection with the sale of U.S. Newswire.
For the three months ended September 30, 2007, the Company reported a net loss of $1.6 million, or $0.25 per share. For the comparable period in 2006, the Company reported net income of $3.6 million, or $0.59 per share, consisting of a loss from continuing operations of $956,000, or $0.16 per share, and income from discontinued operations of $4.6 million, or $0.75, relating to the gain on sale and results of operations of U.S. Newswire. The Company had both cash reserves and working capital totaling $12.9 million and $14.5 million, respectively, at September 30, 2007.
"Teletrax revenue growth was fueled both by new clients and additional services provided to our existing clients," said Laurence Moskowitz, President and Chief Executive Officer of Medialink. "Our full-service agreement with CBS Television to track network promotions and our test agreement with Major League Baseball to track both live and taped broadcasts of its games were important achievements for us. These new agreements further increase our confidence in Teletrax, reinforced by our recently announced contracts with CBS Television Distribution to track syndicated programs such as "Jeopardy!" and "Wheel of Fortune" and with Agence France-Presse to track its news content. We are also excited about our recent alliance with Pilson Communications and DPB Communications, which is intended to leverage our initial success with Major League Baseball into broader acceptance in the global sports television marketplace.
"The successful launch of Mediaseed(TM), our web-based content management and distribution platform, in September 2007 provides a new Internet-based service to bolster our media communications business," concluded Moskowitz. "Offering our clients this end-to-end online video solution for their marketing communications needs provides great potential for our traditional business."
For the nine months ended September 30, 2007, revenues increased by $2.1 million, or 9.5%, to $24.5 million as compared to the comparable 2006 period. Revenues from Teletrax services increased $631,000, or 33.0%, and revenues from media communications services increased $1.5 million, or 7.3%. Revenues from media communications services in the first nine months of 2007 included $631,000 recognized under the minimum commitment arrangement entered into in connection with the sale of U.S. Newswire for which services were not required.
The Company incurred an operating loss of $6.9 million in the first nine months of 2007, compared to an operating loss of $7.7 million in the comparable 2006 period. Exclusive of Teletrax, the Company incurred an operating loss of $4.1 million in the first nine months of 2007, compared to an operating loss of $5.1 million in the 2006 period. The operating losses in the 2007 and 2006 periods include $178,000 and $1.2 million, respectively, for transaction-specific compensation paid in connection with the sale of U.S. Newswire.
For the nine months ended September 30, 2007, the Company reported a net loss of $2.4 million, or $0.38 per share, consisting of a loss from continuing operations of $5.0 million, or $0.79 per share, and income from discontinued operations of $2.6 million, or $0.41 per share, relating to additional gain recognized on the sale of U.S. Newswire. For the comparable period in 2006, the Company reported net income of $387,000, or $0.06 per share, consisting of a loss from continuing operations of $5.0 million, or $0.82 per share, and income from discontinued operations of $5.4 million, or $0.88 per share, relating to the gain on sale and results of operations of U.S. Newswire.
For the third quarter ended September 30, 2007, Teletrax service revenues were $945,000 as compared to $688,000 for the third quarter of 2006 and $800,000 in the second quarter of 2007, increases of 37.4% and 18.1%, respectively. Teletrax incurred an operating loss of $921,000 in the third quarter of 2007 as compared to an operating loss of $936,000 in the 2006 quarter. For the nine months ended September 30, 2007, Teletrax service revenues were $2.5 million as compared to $1.9 million in the comparable 2006 period, an increase of 34.2%.
Medialink will host a teleconference with a simultaneous webcast at 11:00 a.m. Eastern Time today to discuss the Company's quarterly results and the overall industry outlook. Participating on the teleconference will be Laurence Moskowitz, Chairman, President and Chief Executive Officer, and Kenneth G. Torosian, Chief Financial Officer. To access the teleconference, please dial 1-866-383-8108 (domestic) or 1-617-597-5343 (international) and use "86836768" as the passcode, approximately 10 minutes prior to the start time. The conference call will be webcast live by Thomson Financial and can be accessed on Medialink's website at http://www.medialink.com by clicking on the "Investor Relations" link at the bottom of the page. The webcast is also being distributed through the Thomson StreetEvents Network via http://www.earnings.com (for individual investors) and http://www.streetevents.com (for institutional investors). To listen to the webcast, please go to any of these websites about 10 minutes prior to the start of the call to register, download, and install any necessary audio software.
For those unable to listen to the live broadcast, a replay will be available on the Company's Web site or by dialing 1-888-286-8010 (domestic) or 1-617-801-6888 (international), with playback access code "66278701", starting approximately two hours after the conclusion of the call and available until December 12, 2007.
About Medialink:
Medialink is a global leader in providing unique news and marketing media strategies and solutions that enable corporations and organizations to inform and educate their target audiences with maximum impact on television, radio, print, and the Internet. The Company offers creative services and multimedia distribution programs including video and audio news and short-form programming. Through its majority-owned subsidiaries, Medialink also provides Teletrax, a global television tracking and media asset management service to help clients evaluate return on investment from their programming and advertising efforts. Teletrax is 76%-owned by Medialink and 24%-owned by Royal Philips Electronics. Based in New York, Medialink has offices in major cities throughout the United States and an international hub in London. For additional investor and fi