Published:
Enliven Marketing Technologies Corporation Announces First Quarter 2008 Financial Results
NEW YORK, May 9 /PRNewswire-FirstCall/ -- Enliven Marketing Technologies
(Nasdaq: ENLV), a leading internet marketing technology company, today
announced financial results for the first quarter ended March 31, 2008.
Enliven reported total revenue of $4.4 million for the first quarter 2008,
a 38 percent decrease as compared to $7.1 million in the fourth quarter 2007
and a 33 percent increase as compared to $3.3 million in the first quarter
2007. Gross profit was $1.8 million for the first quarter of 2008, a decrease
of 28 percent as compared to the $2.6 million for the fourth quarter of 2007
and a decrease of 21 percent as compared to $2.3 million for the first quarter
of 2007.
Yesterday Enliven and DG FastChannel announced that they have entered into
a definitive agreement to merge in a stock-for-stock transaction. The merger
will combine DG FastChannel's leadership in traditional advertising and media
distribution services with Enliven's groundbreaking digital marketing
technologies for online, mobile and in-game advertising solutions. Based on
DG FastChannel's last reported sales price of $18.49 on May 7, 2008 (the date
of entry into the definitive agreement) the proposed transaction values
Enliven at approximately $98.0 million, inclusive of approximately $4.5
million based on the fair market value of Enliven's debt.
Patrick Vogt, Chief Executive Officer, commented, "Our team at Enliven is
very excited by our announcement yesterday of our merger with DG FastChannel.
By combining DG FastChannels' innovative media solutions with Enliven's unique
Internet marketing and advertising technology, we will deliver a technology
platform that will drive efficiencies and enhancements across the entire
advertising value chain. Furthermore, we believe this merger is great for our
company, customers and shareholders alike and are delighted to have structured
this transaction in a manner that will allow Enliven shareholders to
participate in the combined company's future growth. Together, DG FastChannel
and Enliven will meet a wider set of customer needs and have a significantly
greater opportunity to grow and expand into the emerging advertising markets.
We look forward to working closely with Scott Ginsburg and his team."
Operating loss for the first quarter of 2008 was $3.9 million, as compared
to an operating loss of $2.7 million in the fourth quarter of 2007 and as
compared to an operating loss of $2.0 million for the first quarter of 2007.
Operating expenses for the first quarter of 2008 were $5.7 million, a 9
percent increase as compared to $5.2 million in the fourth quarter of 2007 and
a 32 percent increase as compared to $4.3 million in the first quarter of
2007.
Net loss for the first quarter of 2008 was $7 thousand, or $(0.00) per
share, compared to a net loss of $6.1 million, or $(0.06) per share in the
fourth quarter 2007 and a net loss of $2.0 million or $(0.03) per share, in
the first quarter of 2007.
Enliven's working capital as of March 31, 2008 was $5.5 million compared
to $8.6 million as of December 31, 2007.
FINANCIAL INFORMATION
Management prepares and is responsible for the Company's consolidated
financial statements which are prepared in accordance with accounting
principles generally accepted inthe United States. The financial information
contained in this press release, which is unaudited, is subject to revision
and should not be considered final until the Company files its Quarterly
Report on Form 10-Q. At the present time, the Company has no reason to
believe that there will be changes to the financial information contained
herein.
FINANCIAL MEASURES
In addition to the results presented above in accordance with generally
accepted accounting principles, or GAAP, the Company presents financial
measures that are non-GAAP measures, specifically adjusted operating income.
The Company believes that this non-GAAP measure, viewed in addition to and not
in lieu of the Company's reported GAAP results, provides useful information to
investors regarding its performance and overall results of operations. These
metrics are an integral part of the Company's internal reporting to measure
the performance of the Company and the overall effectiveness of senior
management. Reconciliations to comparable GAAP measures are available in the
accompanying schedules and on the Company's website. The financial measures
presented are consistent with the Company's historical financial reporting
practices. The non-GAAP measures presented herein may not be comparable to
similarly titled measures presented by other companies, and are not identical
to corresponding measures used in our various agreements or public filings.
ABOUT ENLIVEN MARKETING TECHNOLOGIES
Enliven Marketing Technologies Corporation is a leading Internet Marketing
Technology Company, offering Internet marketing and online advertising
solutions through a powerful combination of proprietary visualization
technology, and a Premium Rich Media advertising platform for the creation,
delivery and reporting of PRM. Enliven's family of brands include Unicast, the
Internet Marketing and Advertising Technology Group, and Springbox, the
Creative Digital Marketing Solutions Group. The company's technology and
online advertising solutions are leveraged by some of the world's most
esteemed brands, including AOL, GE, Sony, and Toyota. More information can be
found at www.enliven.com. The company has approximately 140 employees with
offices inNew York, NY,Los Angeles, CA,Austin, TX andLondon, England.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Statements in this Press Release may contain certain forward-looking
statements relating to Enliven Marketing Technologies and its expectations for
the proposed merger with DG FastChannel. All statements included in this
Press Release concerning activities, events or developments that Enliven
Marketing Technologies expects, believes or anticipates will or may occur in
the future are forward-looking statements. Actual results could differ
materially from the results discussed in the forward-looking statements.
Forward-looking statements are based on current expectations and projections
about future events and involve known and unknown risks, uncertainties and
other factors that may cause actual results and performance to be materially
different from any future results or performance expressed or implied by
forward-looking statements, including the following: the risk that the Merger
will not close because of a failure to satisfy one or more of the closing
conditions; the risk that Enliven Marketing Technologies' business will have
been adversely impacted during the pendency of the Merger; the risk that the
operations will not be integrated successfully; and the risk that the expected
cost savings and other synergies from the transaction may not be fully
realized, realized at all or take longer to realize than anticipated.
Additional information on these and other risks, uncertainties and factors is
included in Enliven Marketing Technologies' Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other
documents filed with the SEC.
ADDITIONAL INFORMATION
In connection with the proposed merger, DG FastChannel and Enliven
Marketing Technologies will file a proxy/registration statement and other
related documents with the Securities and Exchange Commission (SEC).
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY/REGISTRATION
STATEMENT WHEN IT BECOMES AVAILABLE AS IT WILL CONTAIN IMPORTANT INFORMATION
ABOUT THE MERGER AND RELATED MATTERS. INVESTORS AND SECURITY HOLDERS WILL
HAVE ACCESS TO FREE COPIES OF THE PROXY STATEMENT (WHEN AVAILABLE) AND OTHER
DOCUMENTS FILED WITH THE SEC BY DG THROUGH THE SEC WEB SITE AT WWW.SEC.GOV.
THE PROXY/REGISTRATION STATEMENT AND RELATED MATERIALS MAY ALSO BE OBTAINED
FOR FREE (WHEN AVAILABLE) FROM DG FASTCHANNEL, INC. BY DIRECTING A REQUEST TO:
DG FASTCHANNEL, INC. ATTN: INVESTOR RELATIONS DEPARTMENT, 750 WEST JOHN
CARPENTER Freeway, Suite 700,Irving, TX 75039, telephone 972/581-2000.
PARTICIPANTS IN THE SOLICITATION
Enliven Marketing Technologies and its executive officers and directors
and certain other members of management and employees may be deemed, under SEC
rules, to be participants in the solicitation of proxies from Enliven
Marketing Technologies' stockholders with respect to the proposed merger.
Information regarding the persons who may, under the rules of the SEC, be
deemed participants in the solicitation of the companies' stockholders in
connection with the proposed merger will be set forth in the proxy
statement/prospectus when it is filed with the SEC. More detailed information
regarding the identity of potential participants, and their direct or indirect
interests, by securities, holdings or otherwise, will also be set forth in the
definitive proxy statement. You can find more information about Enliven
Marketing Technologies' executive officers and directors in Amendment No. 1 to
its annual report on Form 10-K filed with the SEC on April 29, 2008.
Copyright (C) 2008 Enliven Marketing Technologies Corporation. All Rights
Reserved. Enliven, Unicast, and Springbox are trademarks or registered
trademarks of Enliven Marketing Technologies Corporation.
Contact: Investor Relations:
212-201-0800
ir@Enliven.com
ENLIVEN MARKETING TECHNOLOGIES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31, December 31,
2008 2007 2007
Revenue:
Advertising systems $1,377 $1,116 $4,271
Search 958 1,485 1,338
Services 2,069 719 1,455
Total revenue 4,404 3,320 7,064
Cost of revenue:
Advertising systems 730 452 2,993
Search 28 43 28
Services 1,801 481 1,492
Total cost of revenue 2,559 976 4,513
Gross profit 1,845 2,344 2,551
Operating expenses:
Sales and marketing 938 1,195 1,023
Research and development 868 810 759
General and administrative 2,849 2,078 2,405
Depreciation 119 115 297
Amortization of
intangible assets 952 128 748
Total operating expenses 5,726 4,326 5,232
Loss from operations (3,881) (1,982) (2,681)
Other income (expense)
Interest and other
income, net 39 51 84
Interest expense (208) (204) (201)
Changes in fair values
of warrants to purchase
common stock and
conversion feature of
convertible notes 4,055 157 (3,311)
Total other income (expense) 3,886 4 (3,428)
Gail/loss before provision
for income taxes 5 (1,978) (6,109)
Provision for income taxes 12 12 7
Net Loss from continuing
operations $(7) $(1,990) $(6,116)
Net Loss $(7) $(1,990) $(6,116)
Basic and diluted net loss
per common share $(0.00) $(0.03) $(0.06)
Weighted average number of
shares outstanding-
basic and diluted 99,079 67,670 95,918
ENLIVEN MARKETING TECHNOLOGIES CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(Unaudited)
March 31, December 31,
2008 2007
Assets
Current assets:
Cash and cash equivalents $1,951 $6,929
Marketable securities 296 311
Accounts receivable, net of reserve of
$229 and $202, respectively 6,938 7,701
Prepaid expenses and other current assets 712 723
Total current assets 9,897 15,664
Restricted cash 420 417
Property and equipment, net 2,081 1,403
Goodwill 15,103 15,103
Intangible assets, net 8,585 9,553
Other assets 92 61
Total assets $36,178 $42,201
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,172 $ 4,712
Accrued expenses 407 345
Deferred revenue 469 234
Current portion of notes payable 488 488
Current portion of warrants 102 469
Accrued incentive compensation 545 545
Current liabilities related to
discontinued operations 231 231
Total current liabilities 4,414 7,024
Accrued expenses - Deferred Rent 244 271
Warrants to purchase common stock 4,776 8,464
Subordinate notes 2,706 2,616
Unicast notes 1,344 1,381
Springbox accrual 2,690 2,818
Stockholders' equity
Preferred stock - -
Common stock 99 99
Paid-in capital 320,037 319,644
Treasury stock (1,015) (1,015)
Accumulated other comprehensive loss - 9
Accumulated deficit (299,117) (299,110)
Total stockholders' equity 20,004 19,627
Total liabilities and stockholders' equity $36,178 $42,201
ENLIVEN MARKETING TECHNOLOGIES CORPORATION
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO ADJUSTED OPERATING INCOME
(LOSS)
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31, December 31,
2008 2007 2007
Income (Loss) from
Operations $(3,881) $(1,982) $(2,681)
Plus:
Stock based Compensation:
COS-Ad Systems 4 4 4
COS - Services 27 7 18
Sales and marketing 88 86 89
Research and development 33 28 31
General and administrative 220 213 220
Depreciation 209 141 365
Amortization 952 156 776
Adjusted Operating
Income (Loss) $(2,348) $(1,347) $ (1,178)
SOURCE Enliven Marketing Technologies
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