Gross Profit Increases by Over 26% Compared to Q3 2013
Net Loss Narrows by Over 15% Compared to Q3 2013
IRVINE, Calif., Nov. 17, 2014 (GLOBE NEWSWIRE) -- AllDigital Holdings, Inc. (OTCBB:ADGL), a leading provider of digital broadcasting solutions, announced financial results for the third quarter of 2014.
Total revenue was $949,866 for the third quarter of 2014, compared to $959,882 for the third quarter of 2013, a decrease of $10,016, or 1%.
Gross profit was $354,733, or 37.3% of revenues, for the third quarter of 2014, compared to $279,777, or 29.1% of revenues, for the third quarter of 2013, an increase of $74,956, or 26.8%.
Total operating expenses for the third quarter of 2014 were $588,678, compared to $557,002 for the third quarter of 2013, an increase of $31,676, or 5.7%.
Net loss for the third quarter of 2014 was $235,626, as compared to a net loss of $277,897 for the third quarter of 2013, a decrease of $42,270, or 15.2%.
"We implemented a number of financial and operational initiatives in August 2014, with many of them starting to take hold," said Brad Eisenstein, AllDigital's Chief Financial Officer and Chief Operating Officer. "Our goal is to achieve cash flow profitability in 2015."
AllDigital anticipates that through the growth and expansion of its patented technology, tighter cost controls and continuing efficiencies in its own development methodologies, direct costs should decrease and gross profit should improve [in the near and long-term].
Third Quarter 2014 Highlights Include:
- Completed and delivered a significant VoD paid proof of concept to a global content delivery partner;
- Commenced and completed Phase I of a multi-phased development of a streaming media platform for a large, multi-national provider of innovative entertainment and connectivity solutions;
- Achieved pre-launch development milestones on AllDigital's Ultra Low Latency Live ("ULL Live") streaming server platform and its next generation digital broadcasting platform, AD Cloud v2;
- Became the winning bidder on substantially all of the assets of Brevity Ventures, Inc. ("Brevity"), including patented technology that allows for the concurrent transport and transcoding of large digital media files.
"The third quarter looks to be a pivot point for our company, and I'm proud of what we have accomplished," said Michael Linos, AllDigital's CEO and President. "That said, there is plenty of work to be done, including increasing our revenues. I am very excited about our recent acquisition of the Brevity ultrafast transcode/transport technology and the early demand indications for our AllDigital Brevity product. This could be a real game changer for our company and our customers."
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this press release including, without limitation, AllDigital achieving cash flow profitability in 2015, anticipated decreases in direct costs and improvement in gross profit [in the near and long-term], and the positive effects of the Brevity ultrafast transcode/transport technology on AllDigital's financial results, are forward looking statements that involve a number of risks and uncertainties. The actual future results and performance of AllDigital could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, unexpected product development delays; adverse economic and market conditions; lack of capital necessary to fund new product development; the inability to achieve operational improvements; and other events, factors and risks previously and from time to time disclosed in AllDigital's filings with the Securities and Exchange Commission including, specifically, those factors set forth in the "Risk Factors" section contained in AllDigital's Form 10-Q filed with the Securities and Exchange Commission on November 14, 2014. AllDigital expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in expectations or results or any change in events.
About AllDigital: AllDigital (OTCBB:ADGL), a leader in digital broadcasting solutions, is the developer of AllDigital Cloud, a content management system (CMS) focused on the virtualization of digital content. AllDigital Cloud empowers enterprises to stream content across multiple devices including mobile, desktop, and digital television, providing total control over the global distribution of digital media assets. AllDigital Cloud provides high-speed data transfer, scalable storage, encoding / transcoding, VoD, linear programming, and real-time reporting. AllDigital's patented AllDigital Brevity technology enables companies to power broadcast and Internet video workflows for high resolution content. Mainly serving media and entertainment companies, enterprise brands, non-profit and government organizations, AllDigital sets itself apart by offering highly scalable and ultra-low latency (ULL) digital broadcasting solutions, including cloud storage, origin transit, content management solutions, integration services, and related customer support.