Welcome!

News Feed Item

Broadcast International Reports Third Quarter 2012 Results

SALT LAKE CITY, UT -- (Marketwire) -- 11/13/12 -- Broadcast International (OTCQB: BCST) ("BI"), a leading provider of video-powered broadcast solutions, reported financial results for the third quarter ended September 30, 2012.

Q3 2012 Highlights

  • Cayman Islands-based WestStar TV selected CodecSys to provide the framework for its new Over-the-Top (OTT) service. Based on BI's CodecSys patented multi-codec compression software, the solution enables WestStar's subscribers to receive local and global content on their mobile devices.

  • Partnered with netTALK.com to provide a triple play OTT video service for netTALK's more than 1 million subscribers. netTALK TV, an extension of netTALK's Voice over Internet Protocol (VoIP) service, will bring customers a total communications and entertainment experience by permitting access to online video content via a CodecSys-enabled OTT or Video on Demand (VOD) playback service.

  • Binbit Group, a global provider of mobile entertainment services, selected CodecSys to expand its video on demand web and mobile device capabilities. CodecSys encoding and transcoding systems were installed in Binbit's Austin, Texas data center to support its regional operations.

Q3 2012 Financial Results
Revenue in the third quarter 2012 increased 2% sequentially to $2.05 million from $2.00 million in the prior quarter, and decreased 10% from $2.3 million in the same year-ago period. The year-over-year decrease was primarily due to fewer expansion sites installed for the company's largest digital signage customer, partially offset by an increase in license fees and other professional services.

Gross profit in the third quarter 2012 was $779,000 (a record since becoming publicly-traded company) or 38% of total revenue. This was an improvement from $654,000 or 33% of total revenue in the previous quarter and from $758,800 or 33% of total revenue in the same year-ago period.

Total operating expenses in the third quarter 2012 decreased 24% sequentially to $1.9 million from $2.5 million in the prior quarter, and decreased 22% from $2.4 million in Q3 2011.

Operating loss in the third quarter 2012 was $1.1 million, an improvement from an operating loss of $1.8 million in the previous quarter and an operating loss of $1.7 million in the same year-ago period. The significant decrease in operating losses is primarily due to effective cost cutting programs, along with increased gross profits that have helped to reduce the monthly burn rate by nearly 50% or $239,000.

Net loss in the third quarter 2012 totaled $711,000 or $(0.01) per basic and diluted share, compared to a net profit of $847,000 or $0.01 per basic and diluted share in the prior quarter, and compared to a net profit of $4.0 million or $0.05 per basic and diluted share in Q3 2011. The year-over-year decline was primarily due to a $4.8 million change in the fair value of the company's warrants and convertible notes.

Management Commentary
"Our third quarter results reflect our ongoing efforts to reduce expenses and drive margin expansion," said Jim Solomon, CFO of Broadcast International. "In fact, we achieved our highest-ever gross margins since becoming a publicly-traded company. We continued to see our operating expenses decrease both on a year-over-year and sequential basis, and anticipate further optimization going forward.

"As we wrap up the year and prepare for 2013, we remain focused on expanding and diversifying our BI Networks and CodecSys customer base. We are confident that over the course of 2012, we have put in place the right personnel and resources to handle the anticipated ramp-up in our business, while continuing to provide our loyal customers exceptional service and support. Our BI Networks division continues to gain traction in the financial services industry, and we remain well positioned to capitalize on the growing opportunity for CodecSys in the enterprise IP video and OTT markets, both domestically and overseas."

Earnings Podcast
Broadcast International will stream its third quarter 2012 results podcast tomorrow (Wednesday, November 14) at 9:00 a.m. Eastern time. The video podcast will be available via the Investor Relations section of the company's website at www.brin.com.

Broadcast International management will discuss the company's financial results, and provide an operational update and outlook for the remainder of 2012.

Date: Wednesday, November 14, 2012
Time: 9:00 a.m. Eastern time (7:00 a.m. Mountain time)
Podcast: www.brin.com/news/podcast-new

If you have any difficulty connecting with the podcast, please contact Liolios Group at 1-949-574-3860.

About Broadcast International
Broadcast International is a leading provider of video-powered broadcast solutions, including IP, digital satellite, Internet streaming and other types of wired/wireless network distribution. BI's patented CodecSys software is a breakthrough, multi-codec video compression technology that cuts video bandwidth requirements over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of rich-media applications and offers unprecedented price/ performance benefits for existing applications. Broadcast International is a public company (OTCQB: BCST) headquartered in Salt Lake City, UT.

For more information visit: www.brin.com and www.codecsys.com.

Forward Looking Statements
All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our Business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.


                        BROADCAST INTERNATIONAL, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS

                                                  December 31, September 30,
                                                      2011          2012
                                                 ------------- -------------
                                                                (Unaudited)
ASSETS:
  Current Assets
    Cash                                         $     961,265 $     373,119
    Trade accounts receivable, net                   1,239,903     1,161,101
    Inventory                                           60,851       362,335
    Prepaid expenses                                   203,973       178,008
                                                 ------------- -------------
    Total current assets                             2,465,992     2,074,563
                                                 ------------- -------------
  Property and equipment, net                        1,417,134       664,750
                                                 ------------- -------------
  Other Assets, non current
    Debt offering costs                                123,278        61,643
    Patents, net                                       131,079       123,466
    Deposits and other assets                          406,004       226,794
                                                 ------------- -------------
    Total other assets, non current                    660,361       411,903
                                                 ------------- -------------

  Total assets                                   $   4,543,487 $   3,151,216
                                                 ============= =============

LIABILITIES AND STOCKHOLDERS DEFICIT:

  Current Liabilities
    Accounts payable                             $   1,252,538 $   2,002,821
    Payroll and related expenses                       390,206       329,203
    Other accrued expenses                             175,008       221,031
    Unearned revenue                                    10,449        30,521
      Current portion of notes payable (net of
       discount of $103,859 and $861,335,
       respectively)                                 2,068,016     1,938,665
    Other current obligations                        1,067,649            --
    Derivative valuation                             3,760,200     4,346,021
                                                 ------------- -------------
    Total current liabilities                        8,724,066     8,868,262
                                                 ------------- -------------
  Long-term Liabilities
      Long-term portion of notes payable (net of
       discount of $659,496 and $409,494,
       respectively)                                 6,349,445       590,506
                                                 ------------- -------------
    Total long-term liabilities                      6,349,445       590,506
                                                 ------------- -------------
  Total liabilities                                 15,073,511     9,458,768
                                                 ------------- -------------
  Commitments and contingencies
  STOCKHOLDERS' DEFICIT:
        Preferred stock, no par value,
         20,000,000 shares authorized; none
         issued                                             --            --
        Common stock, $.05 par value,
         180,000,000 shares authorized;
         75,975,656 and 107,405,328 shares
         issued as of December 31, 2011 and
         September 30, 2012, respectively            3,798,783     5,370,266
    Additional paid-in capital                      96,859,058    99,559,404
    Accumulated deficit                           -111,187,865  -111,237,222
                                                 ------------- -------------
    Total stockholders' deficit                    -10,530,024    -6,307,552
                                                 ------------- -------------

  Total liabilities and stockholders' deficit    $   4,543,487 $   3,151,216
                                                 ============= =============



                        BROADCAST INTERNATIONAL, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)

                              For the three months     For the nine months
                                      ended                   ended
                                  September 30,           September 30,
                            ------------------------ -----------------------
                                2011        2012         2011        2012
                            ----------- ------------ ----------- -----------

Net sales                   $ 2,277,074 $  2,045,278 $ 6,321,495 $ 5,790,363
Cost of sales                 1,518,310    1,266,224   4,414,402   3,857,682
                            ----------- ------------ ----------- -----------
Gross profit                    758,764      779,054   1,907,093   1,932,681
                            ----------- ------------ ----------- -----------

Operating expenses:
  Administrative and
   general                    1,280,183    1,001,001   5,124,883   3,589,602
  Selling and marketing         401,826      442,495     824,771   1,557,735
  Research and development      570,197      325,126   1,793,596   1,346,540
  Depreciation and
   amortization                 169,592      127,334     517,751     454,009
                            ----------- ------------ ----------- -----------
  Total operating expenses    2,421,798    1,895,956   8,261,001   6,947,886
                            ----------- ------------ ----------- -----------
Total operating loss         -1,663,034   -1,116,902  -6,353,908  -5,015,205
                            ----------- ------------ ----------- -----------

Other income:
  Interest income                   338           --       2,324           1
  Interest expense             -176,047     -460,388    -745,925  -1,066,599
  Gain (loss) on derivative
   valuation                  5,851,300    1,051,516  12,257,500   5,639,996
  Equity issuance costs
   related to warrants               --           --    -476,234  -1,095,309
  Loss on note conversion
   offering expense                  --      -47,348          --     -47,348
  Gain (loss) on
   extinguishment of debt        16,000      -83,754    -954,033   1,588,821
  Loss on retirement of
   debt offering costs               --      -53,150          --     -53,150
  Gain (loss) on sale of
   assets                            --        2,421        -362         781
  Other income (expense),
   net                            5,597       -3,467         151      -1,345
                            ----------- ------------ ----------- -----------
  Total other income          5,697,188      405,830  10,083,421   4,965,848
                            ----------- ------------ ----------- -----------

Profit (loss) before income
 taxes                        4,034,154     -711,072   3,729,513     -49,357
Provision for income taxes           --           --          --          --
                            ----------- ------------ ----------- -----------
Net profit (loss)           $ 4,034,154 $   -711,072 $ 3,729,513     -49,357
                            =========== ============ =========== ===========

Net profit (loss) per share
 - basic                    $      0.05 $      -0.01 $      0.05           0
                            =========== ============ =========== ===========
Net profit (loss) per share
 - diluted                  $      0.05 $      -0.01 $      0.05           0
                            =========== ============ =========== ===========

Weighted average shares -
 basic                       75,844,526  107,263,073  75,240,313  98,564,531
                            =========== ============ =========== ===========
Weighted average shares -
 diluted                     78,414,453  107,263,073  77,970,216  98,564,531
                            =========== ============ =========== ===========

Add to Digg Bookmark with del.icio.us Add to Newsvine

Company Contact:
Cameron Francis
Vice President Products
Broadcast International
801-562-2252
Email Contact

Investor Relations Contact:
Michael Koehler or Matt Glover
Liolios Group, Inc.
949-574-3860
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...