IRVINE, Calif., Nov. 24, 2010 (GLOBE NEWSWIRE) -- DigitalPost Interactive, Inc. (OTCBB:DGLP) (www.globenewswire.com/newsroom/ctr%3Fd=199553%26l=1%26a=http%253A%252F%252Fwww.dglp.com%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D10pe4j906%252F%252A%252Ahttp%25253A%252Fwww.dglp.com%252F" target="_top" rel="nofollow">http://www.dglp.com), a leader in the digital media-sharing and social networking space, reported financial results for the third quarter ended September 30, 2010.
Third-quarter revenues were $176,900, compared to $371,600 in third-quarter 2009. The decline was due in part to a lower number of recurring subscribers which led to a $97,000 decrease in subscription fees. Professional services fees fell $97,700 to $106,700, from $204,400 in third-quarter 2009. The decline was partially offset by revenues consolidated from Rovion commencing September 1, 2010.
DigitalPost Chief Executive Michael Sawtell commented: "We continued to experience declining revenues from our digital media sharing business, but those declines were partially offset by new revenues from the acquisition of Rovion, our rich media advertising business unit.
"Based on recent performance, Rovion is exhibiting the potential for significant revenue growth," Sawtell continued. "During September and October, we grew Rovion's bookings to $151,000 and $184,000 respectively, compared to average monthly bookings of $125,000 for the first eight months of 2010. If we continue on this favorable trend, our annual bookings run rate could exceed $2.0 million. While bookings represent business in the pipeline and not immediate revenue and cash flow, the longer-term potential for Rovion appears substantial."
Third-quarter comparative summary:
Revenues: Total revenue was $176,900 and $371,600 for the third quarters of 2010 and 2009, respectively, representing a decrease of $194,700. The change was due to a decrease in subscription revenues of $97,000 during third-quarter 2010, compared to the same period last year, and a decrease in professional services revenue of $97,700 during third-quarter 2010, compared to the same period last year. Third-quarter 2010 professional services revenue included revenue of $83,000 from Rovion, which was acquired on August 31, 2010:
|
Revenues: |
Third-Quarter 2010 | Third-Quarter 2009 |
| Subscriptions | $70,200 | $167,200 |
| Professional Services | $106,700 | $204,400 |
| Total | $176,900 | $371,600 |
Subscribers: Subscription revenues for third-quarter 2010 were $70,200, compared to $167,200 during the same period last year. Subscription revenues decreased $97,000 due to a decrease in the number of recurring subscribers to 9,701 on September 30, 2010, from 15,288 subscribers a year ago.
Professional services: Professional services revenue for third-quarter 2010 was $106,700, and included $83,000 from Rovion, compared to $204,400 during the same period last year. The decrease was due to continuing work on software development contracts entered into during the first and second quarters of 2010 that were different in scope and lower in total contract amount, compared to the same period last year. Consolidation of Rovion revenues began on September 1, 2010.
Net loss and non-cash items: Net loss for third-quarter 2010 was $630,900, compared to a net loss of $600,900 in third-quarter 2009. Net loss for third-quarter 2010 included non-cash items consisting of: $43,100 in stock-based compensation, $109,200 of amortization of debt discounts, and $33,300 of depreciation and amortization expense. Net loss for the third-quarter 2009 included non-cash items consisting of $171,500 in stock-based compensation, $155,000 of amortization of debt discounts, $187,100 of beneficial conversion liability, and $42,800 of depreciation and amortization.
Cash used in operations: Net cash used by operating activities for the quarter was $447,900, compared to $75,600 in third-quarter 2009. The increase was primarily due to lower non-cash charges during third-quarter 2010, compared to third-quarter 2009—stock compensation expense declined $128,400; amortization of debt discounts fell by $45,800, and beneficial conversion liability was zero, compared to $187,100.
Subscriber growth outlook: We continue to service and earn revenue from TheFamilyPost.com and OurFamilyLife.com. During third-quarter 2010 the new video gallery for Ritz Camera and Image at www.globenewswire.com/newsroom/ctr%3Fd=199553%26l=12%26a=www.RitzPix.com%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D10sk2p0q2%252F%252A%252Ahttp%25253A%252Fwww.RitzPix.com%252F" target="_top" rel="nofollow">www.RitzPix.com was launched and is available online and in more than 300 Ritz Camera stores throughout the United States.
About Rovion, Inc., a subsidiary of DigitalPost Interactive, Inc.
Rovion is the leading provider of talent-based rich media content development, delivery and reporting, meeting the needs of online publishers and advertisers globally. Rovion specializes in complex video-based ads both in and outside of existing ad placement locations and is best known for its invention of the InPerson(TM) video spokesperson ad unit. Rovion is headquartered in Boston, Massachusetts. For more information about Rovion, please visit www.globenewswire.com/newsroom/ctr%3Fd=207305%26l=6%26a=www.rovion.com%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D1o0dp7c2t%252F%252A%252Ahttp%25253A%252Fwww.globenewswire.com%252Fnewsroom%252Fctr%25253Fd%253D204076%252526l%253D8%252526a%253Dwww.rovion.com%252526u%253Dhttp%2525253A%2525252F%2525252Fus.lrd.yahoo.com%2525252FSIG%2525253D1dp9rrtkj%2525252F%2525252A%2525252Ahttp%252525253A%2525252Fwww.globenewswire.com%2525252Fnewsroom%2525252Fctr%252525253Fd%2525253D202454%2525252526l%2525253D9%2525252526a%2525253Dwww.rovion.com%2525252526u%2525253Dhttp%25252525253A%25252525252F%25252525252Fus.lrd.yahoo.com%25252525252FSIG%25252525253D162po2h0h%25252525252F%25252525252A%25252525252Ahttp%2525252525253A%25252525252Fwww.globenewswire.com%25252525252Fnewsroom%25252525252Fctr%2525252525253Fd%25252525253D201679%25252525252526l%25252525253D6%25252525252526a%25252525253Dwww.rovion.com%25252525252526u%25252525253Dhttp%252525252525253A%252525252525252F%252525252525252Fus.lrd.yahoo.com%252525252525252FSIG%252525252525253D10r85oi9n%252525252525252F%252525252525252A%252525252525252Ahttp%25252525252525253A%252525252525252Fwww.rovion.com%252525252525252F" target="_top" rel="nofollow">www.rovion.com. For more info about DigitalPost Interactive, please visit www.globenewswire.com/newsroom/ctr%3Fd=207305%26l=6%26a=www.dglp.com%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D1jr62ebdk%252F%252A%252Ahttp%25253A%252Fwww.globenewswire.com%252Fnewsroom%252Fctr%25253Fd%253D204076%252526l%253D8%252526a%253Dwww.dglp.com%252526u%253Dhttp%2525253A%2525252F%2525252Fus.lrd.yahoo.com%2525252FSIG%2525253D1aijlo71d%2525252F%2525252A%2525252Ahttp%252525253A%2525252Fwww.globenewswire.com%2525252Fnewsroom%2525252Fctr%252525253Fd%2525253D202454%2525252526l%2525253D9%2525252526a%2525253Dwww.dglp.com%2525252526u%2525253Dhttp%25252525253A%25252525252F%25252525252Fus.lrd.yahoo.com%25252525252FSIG%25252525253D13plgdj06%25252525252F%25252525252A%25252525252Ahttp%2525252525253A%25252525252Fwww.globenewswire.com%25252525252Fnewsroom%25252525252Fctr%2525252525253Fd%25252525253D201679%25252525252526l%25252525253D6%25252525252526a%25252525253Dwww.dglp.com%25252525252526u%25252525253Dhttp%252525252525253A%252525252525252F%252525252525252Fwww.dglp.com%252525252525252F">www.dglp.com.
The DigitalPost Interactive Inc. logo is available at www.globenewswire.com/newsroom/ctr%3Fd=199553%26l=21%26a=http%253A%252F%252Fwww.globenewswire.com%252Fnewsroom%252Fprs%252F%253Fpkgid%253D7260%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D14qcm6qsq%252F%252A%252Ahttp%25253A%252Fwww.globenewswire.com%252Fnewsroom%252Fctr%25253Fd%253D192189%252526l%253D16%252526u%253Dhttp%2525253A%2525252F%2525252Fwww.globenewswire.com%2525252Fnewsroom%2525252Fprs%2525252F%2525253Fpkgid%2525253D7260" target="_top" rel="nofollow">http://www.globenewswire.com/newsroom/prs/?pkgid=7260
About DigitalPost Interactive
DigitalPost Interactive is a SaaS (Software as a Service) and application provider that delivers B2B and B2C digital media-sharing solutions that are both easy to offer and easy to use. The company's visually-stunning, user-friendly Web 2.0 technology gives consumers a single, engaging place online for permanently storing and sharing a lifetime of digital media and memories, connecting with family and friends, and keeping organized in today's digital world.
Completely scalable and re-brandable, DigitalPost Interactive's technology gives companies in the photo, travel, entertainment, sports, and other vertical markets a fast and efficient way to offer dynamic Web 2.0 products and services. This technology can create exciting new revenue streams for all companies looking to monetize this emerging new Internet opportunity. For more information about DigitalPost Interactive or its consumer site www.globenewswire.com/newsroom/ctr%3Fd=199553%26l=16%26a=TheFamilyPost.com%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D1482vg25g%252F%252A%252Ahttp%25253A%252Fwww.globenewswire.com%252Fnewsroom%252Fctr%25253Fd%253D188011%252526l%253D13%252526a%253DTheFamilyPost.com%252526u%253Dhttp%2525253A%2525252F%2525252Fwww.thefamilypost.com%2525252F">TheFamilyPost.com, please visit www.globenewswire.com/newsroom/ctr%3Fd=199553%26l=16%26a=http%253A%252F%252Fwww.dglp.com%252F%26u=http%253A%252F%252Fus.lrd.yahoo.com%252FSIG%253D10pe4j906%252F%252A%252Ahttp%25253A%252Fwww.dglp.com%252F" target="_top" rel="nofollow">http://www.dglp.com/.
Safe Harbor Statement
This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and may include statements regarding the acquisition, business estimates, future contracts, future financial performance and results of operations, including the number of recurring subscribers, revenue growth, cost of revenues, operating expenses, interest expense, net loss and cash flow. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. Additional information concerning risks and uncertainties that may cause actual results to differ materially from those projected or suggested in the forward-looking statements may be found in Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K filed with the U.S. Securities and Exchange Commission.