Welcome!

Mobile IoT Authors: Elizabeth White, Yeshim Deniz, Pat Romanski, Zakia Bouachraoui, Carmen Gonzalez

News Feed Item

YOU On Demand Reports 2014 Q2 Results

Investor Update Call Scheduled Today at 4:30 p.m. ET

NEW YORK, Aug. 14, 2014 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), a leading Video On Demand service provider in China delivering Hollywood movies to mobile and TV screens, today announced its operating results for the three- and six-month periods ended June 30, 2014 (a full copy of its quarterly report on Form 10-Q will be posted at www.sec.gov).  Chairman Shane McMahon, CEO Weicheng Liu and President and CFO Marc Urbach are hosting an investor update conference call today at 4:30 p.m. ET to discuss the Company's recent results.  To join the webcast, please visit the 'Webcasts and Events' section of the YOD corporate website, http://corporate.yod.com.  Otherwise, the toll-free dial-in is: 877/407-3107; international callers should dial: 201/493-6796.

Shane McMahon, Chairman of YOU On Demand, commented, "During the first half of 2014 we successfully pivoted the Company's strategy and its resources to prioritize our IPTV, OTT and Mobile platforms. Given the exciting potential of these fast-growing distribution modes, which are increasingly popular amongst China's tech-savvy and most active consumers of entertainment, YOU On Demand expects to continue generating positive momentum from this strategic shift. As a result, we expect to generate both improved operating efficiencies and enhanced financial results during the second half of this year."

YOU On Demand CEO Weicheng Liu, stated, "Building on the growing popularity of our YOU Hollywood App with Huawei device users, Xiaomi OTT Box owners and other early adopters, we recently softly launched our Hollywood App independently via popular app stores and online channels.  We believe select advertising, marketing and social media outreach, combined with word-of-mouth recommendations and endorsements from satisfied App users, will help promote our unique, differentiated service to an appreciative audience of China's most ardent movie fans."

YOU On Demand President & CFO Marc Urbach commented, "During this critical phase in our organization's corporate development, the senior financial and operations teams will continue striving to combine our strong, unlevered balance sheet, with conservative expense management and moderate levels of fixed overhead costs. There are many opportunities that lie ahead and we expect to best leverage these by maintaining our fiscally prudent strategy for the long-term benefit of the Company's shareholders."

2014 Q2 Operating Results

Revenue for the quarter ended June 30, 2014 increased to $183,000, up from $51,000 in the year-ago Q2 and up 33% over Q1 2014.   Gross loss for the quarter declined to $674,000, down from $739,000 in the comparable 2013 period. Total operating expenses for the quarter fell 10.6% to $2.5 million, reflecting a combination of content revenue-sharing agreements and disciplined corporate overhead levels. The loss from operations of $3.2 million for the quarter was down from a $3.5 million loss from operations in the comparable 2013 period. The net loss from continuing operations for the quarter was $1.1 million – which included a $1.5 million change in the fair value of warrant liabilities – versus $3.5 million net loss from continuing operations in the comparable 2013 period. The net loss attributable to YOU on Demand shareholders amounted to $793,000, down from approximately $3.3 million net loss in Q2 2013. The basic and diluted per share loss was $0.05, compared to a $0.22 basic and diluted per share loss in the year-ago Q2.

Cash and cash equivalents increased from $3.8 million at December 31, 2013, to $15.6 million at June 30, 2014.

YOU On Demand is maintaining full-year 2014 revenue guidance of $3 million.  

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

About YOU On Demand Holdings, Inc. (http://corporate.yod.com)

YOU On Demand (NASDAQ: YOD), is a leading multi-platform entertainment company delivering premium content, including leading Hollywood and China-produced movie titles, to customers across China via Subscription Video On Demand and Transactional Video On Demand. The Company has secured alliances with leading global media operators and content developers.  YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers. The Company has a comprehensive end-to-end secure delivery system, governmental partnerships and approvals and offers additional value-added services. YOU On Demand has strategic partnerships with the largest media entities in China, a highly experienced management team with international background and expertise in Cable, Television, Film, Digital Media, Internet and Telecom. YOU On Demand is headquartered in New York, NY with its China headquarters in Beijing.

CONTACT:


Jason Finkelstein                  

Robert Rinderman or Norberto Aja

YOU On Demand                   

JCIR

212-206-1216                          

212-835-8500

[email protected]       

[email protected]

@youondemand


 

–      Financial Tables Follow –

 

YOU On Demand Holdings, Inc.,  Its Subsidiaries and Variable Interest Entity

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS












Three Months Ended


Six Months Ended



June 30,


June 30,


June 30,


June 30,



2014


2013


2014


2013










Revenue

$         182,696


$           50,619


$         320,377


$          51,557

Cost of revenue

857,179


790,019


1,733,117


1,638,604

Gross loss

(674,483)


(739,400)


(1,412,740)


(1,587,047)










Operating expense:









Selling, general and administrative expenses

2,270,657


2,073,537


3,911,297


4,050,767


Professional fees

76,231


223,051


261,715


474,485


Depreciation and amortization

139,590


173,394


289,550


466,227


Impairments of long-lived assets

-


311,249


-


311,249

Total operating expense

2,486,478


2,781,231


4,462,562


5,302,728










Loss from operations

(3,160,961)


(3,520,631)


(5,875,302)


(6,889,775)










Interest & other income (expense):









Interest expense, net

(28,321)


(29,704)


(2,317,059)


(59,064)


Change in fair value of warrant liabilities

1,501,632


(4,885)


(937,386)


(30,290)


Change in fair value of contingent consideration

589,994


(42,046)


(113,132)


(83,694)


Gain (loss) on investment in unconsolidated entities

(5,349)


2,275


(10,257)


(719)


Gain (loss) on sale of subsidiary

-


-


755,426


-


Loss on dissolution of variable interest entity

-


-


(27,463)


-


Other

(15,015)


71,777


(67,681)


70,596










Net loss from continuing operations









before income taxes and noncontrolling interest

(1,118,020)


(3,523,214)


(8,592,854)


(6,992,946)










Income tax benefit

32,495


29,821


55,437


60,961










Net loss from continuing operations

(1,085,525)


(3,493,393)


(8,537,417)


(6,931,985)










Net loss from discontinued operations 

-


(97,823)


-


(334,398)










Net loss

(1,085,525)


(3,591,216)


(8,537,417)


(7,266,383)










Plus:  Net loss attributable to noncontrolling interests

292,560


310,771


527,344


641,173










Net loss attributable to YOU On Demand shareholders

(792,965)


(3,280,445)


(8,010,073)


(6,625,210)

Dividends on preferred stock

-


-


(16,402,161)


-










Net loss attributable to YOU on Demand common shareholders

$       (792,965)


$    (3,280,445)


$   (24,412,234)


$   (6,625,210)










Basic and diluted loss per share:









Loss from continuing operations

$              (0.05)


$              (0.22)


$              (1.50)


$             (0.44)


Loss from discontinued operations

-


 nil 


-


(0.01)


Basic and diluted loss per share

$              (0.05)


$              (0.22)


$              (1.50)


$             (0.45)










Weighted average shares outstanding:









Basic and diluted

16,598,990


14,938,780


16,267,036


14,771,261










 

 

YOU On Demand Holdings, Inc.,  Its Subsidiaries and Variable Interest Entity

UNAUDITED CONSOLIDATED BALANCE SHEETS




June 30,


December 31,



2014


2013

ASSETS




Current assets:





Cash and cash equivalents

$       15,671,408


$          3,822,889


Accounts receivable, net

182,601


175,211


Licensed content, current

725,450


428,322


Prepaid expenses

316,249


330,013


Debt issuance costs, net

-


128,879


Other current assets

58,994


48,928

Total current assets

16,954,702


4,934,242






Property and equipment, net

428,812


499,858

Licensed content, noncurrent

79,868


162,646

Intangible assets, net

2,456,201


2,621,527

Goodwill

6,105,478


6,105,478

Investment in unconsolidated entities

658,436


673,567

Other noncurrent assets

224,876


-

Total assets

$       26,908,373


$       14,997,318






LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY




Current liabilities:





Accounts payable

$             354,532


$             656,545


Deferred revenue

26,941


68,969


Accrued expenses and liabilities

1,301,692


1,075,944


Deferred license fees

1,364,716


1,200,764


Contingent purchase price consideration liability

691,876


578,744


Convertible promissory note

3,000,000


3,000,000


Warrant liabilities

901,197


1,344,440

Total current liabilities

7,640,954


7,925,406






Deferred income tax liability

70,372


125,809

Convertible promissory note

-


2,000,000

Total liabilities

7,711,326


10,051,215






Commitments and Contingencies









Convertible redeemable preferred stock, $.001 par value; 50,000,000





shares authorized





Series A - 7,000,000 shares issued and outstanding, liquidation preference





    of $3,500,000 at June 30, 2014 and December 31, 2013, respectively

1,261,995


1,261,995


Series C - 0 and 87,500 shares issued and outstanding, liquidation preference





    of $0 and $350,000 at June 30, 2014 and December 31, 2013, respectively

-


219,754


Series D 4% - 0 and 2,285,714 shares issued and outstanding, liquidation preference





    of $0 and $4,000,000 at June 30, 2014 and December 31, 2013, respectively

-


4,000,000






Equity:





Preferred Series E stock, $.001 par value; 16,500,000 shares authorized, 13,428,571 and 0 shares issued
and outstanding, liquidation preference of $23,500,000 and $0 at June 30, 2014 and December 31, 2013,
respectively

13,429


-


Common stock, $.001 par value; 1,500,000,000 shares authorized, 17,410,220 and 15,794,762 shares
issued at June 30, 2014 and December 31, 2013, respectively

17,410


15,794


Additional paid-in capital

111,566,478


67,417,025


Accumulated deficit

(90,346,752)


(65,856,053)


Accumulated other comprehensive loss

(1,402,245)


(715,090)

Total YOU On Demand equity 

19,848,320


861,676

Noncontrolling interests

(1,913,268)


(1,397,322)






Total equity

17,935,052


(535,646)






Total liabilities, convertible redeemable preferred stock and equity

$       26,908,373


$       14,997,318






SOURCE YOU On Demand Holdings, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

IoT & Smart Cities Stories
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...