IRVINE, Calif., Aug. 17, 2010 (GLOBE NEWSWIRE) -- DigitalPost Interactive, Inc. (OTCBB:DGLP) (www.dglp.com/" target="_top" rel="nofollow">http://www.dglp.com), a leader in the digital media-sharing and social networking space, reported financial results for the second quarter ended June 30, 2010.
Second-quarter revenues were $144,700, compared to $376,400 in second-quarter 2009. The decline was due to a reduction in the number of recurring subscribers from B2B partnerships and lower professional services provided.
DigitalPost Chief Executive Michael Sawtell commented: "The factors that contributed to first-quarter results continued into the second quarter, but during third and fourth quarter this year we expect to return to our earlier positive trend. Our acquisition of Rovion is expected to close by the end of the third-quarter, at which time we expect to begin consolidating revenue from their operations. In addition, the recent launch of Ritz Camera & Image's interactive video gallery and the Q4 scheduled launch of Lucidiom's FamilyPhotoZoo.com family website platform are expected to begin attracting new subscribers and recurring revenue.
"During the last several quarters we focused on building the foundation for sustainable growth by adding new business partners, developing new websites to attract new subscribers, developing version 6.0 of our digital media sharing platform, and seeking opportunities to expand market share and grow revenue," Sawtell added. "The Rovion acquisition will add a complementary business that broadens our market participation, ongoing revenue, and is expected to reduce expense ratios by leveraging technologies and achieving operating efficiencies as we integrate the two companies."
Sawtell said that the Company is continuing to raise working capital to bolster its financial condition and support business growth. "The recent inflow of capital has strengthened our balance sheet by improving liquidity and enabled the full satisfaction of approximately $660,000 of our promissory notes and long-term debt. As a result, we are now better positioned, financially and strategically, to resume growth."
Second-quarter comparative summary:
Revenues: Total revenue was $144,700 and $376,400 for the second quarters of 2010 and 2009, respectively, representing a decrease of $231,700. The change was due to a decrease in subscription revenues of $87,100 during second-quarter 2010 as compared to the same period last year and a decrease in professional services of $144,600 during second-quarter 2010 as compared to the same period last year:
|
Revenues: |
Second-Quarter 2010 |
Second-Quarter 2009 |
| Subscriptions | $96,800 | $183,900 |
| Professional Services | $47,900 | $192,500 |
| Total | $144,700 | $376,400 |
Subscribers: Subscription revenues for second-quarter 2010 were $96,800 as compared to $183,900 during the same period last year. Subscription revenues decreased $87,100 due to a decrease in our customers to 10,079 recurring subscribers as of June 30, 2010, from 15,288 subscribers as of June 30, 2009.
Professional services: Professional services revenue for second-quarter 2010 was $47,900 as compared to $192,500 during the same period last year. The decrease was due to the continuing of work on software development contracts entered into during the first quarter of 2010 that were different in scope and lower in total contract amount, compared to the same period last year.
Net loss and non-cash items: Net loss for second-quarter 2010 was $916,200, compared to a net loss of $424,200 in second-quarter 2009. Net loss for second-quarter 2010 included non-cash items consisting of: $282,800 in stock-based compensation, $282,100 of amortization of debt discounts and $27,200 of depreciation and amortization expense. Net loss for second-quarter 2009 included non-cash items consisting of $168,300 in stock-based compensation, $154,700 of amortization of debt discounts, $62,400 of beneficial conversion liability and $38,900 of depreciation and amortization.
Cash used in operations: Net cash used by operating activities for the quarter was $405,900, compared to $64,900 in second-quarter 2009. The increase was primarily due to higher net loss resulting from lower subscription and professional service revenues. The increase was also due to certain one-time professional service fees in the amount of $54,700 and also providing one-time extended credit terms to one of our marketing partners resulting in increased accounts receivable of $57,000.
Subscriber growth outlook: The Company continues to service customers initially generated from www.OurFamilyLife.com that continue to utilize their subscriptions although signups have decreased due to the change in ownership of the photo studio provider. On July 20, the Company announced the launch of a new video gallery for Ritz Camera and Image at www.RitzPix.com/" target="_top" rel="nofollow">www.RitzPix.com, which is now available online and in more than 300 Ritz Camera stores throughout the United States. The Company's recently launched web site, www.FamilyPhotoZoo.com/" target="_top" rel="nofollow">www.FamilyPhotoZoo.com, is being integrated into Lucidiom's customer site PhotoFinale and is expected to launch during Q4 of 2010.
Other technology/product developments: Development of version 6.0 digital media sharing platform is nearly complete and its release is schedule for September 2010. This platform includes additional social networking integration with the ability to push content to Facebook and Twitter.
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=188011%26l=13%26a=TheFamilyPost.com%26u=http%253A%252F%252Fwww.thefamilypost.com%252F">TheFamilyPost.com, please visit www.dglp.com/" target="_top" rel="nofollow">http://www.dglp.com/.
About Rovion
Rovion, Inc. 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™ video spokesperson ad unit. Rovion is headquartered in Boston, Massachusetts.
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.
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