Welcome!

News Feed Item

Salon Media Group Reports Third Quarter Fiscal 2014 Results

Salon Media Group, Inc. (OTCQB:SLNM) today announced its results for the three months and nine months ended December 31, 2013. Net revenue from continuing operations for the quarter ended December 31, 2013, was $1.9 million, an increase of 82% from the same period last year. For the nine months ended December 31, 2013, net revenue was $4.6 million, an increase of 70% versus the same period last year.

Continued robust traffic at Salon.com resulted in $1.8 million in advertising revenues for the three months ended December 31, 2013, an 80% increase compared to the same period last year. For the nine month period, ad revenues were $4.3 million, or an increase of 72% compared to the same period in the prior year. The improvement in the current quarter stemmed primarily from increased advertising sold by Salon’s internal sales team, which rose 175% to $1.1 million for the three months ended December 31, 2013 as compared to the three months ended December 31, 2012.

Operating expenses for the three months ended December 31, 2013 rose 23% to $2.2 million compared to the same period last year. The $0.4 million increase resulted primarily from higher stock compensation costs and commissions paid to the advertising sales team. The company’s loss from operations for the December 2013 quarter declined to $0.3 million, a 62% reduction from the $0.8 million loss for the same period last year.

Overall, Salon has been able to achieve revenue growth without a corresponding increase in operating expenses. Excluding the impact of discontinued operations, operating expenses for the nine months ended December 31, 2013 increased 6% to $6.0 million compared to $5.8 million the same period last year. Controlling the increase in expenses helped to narrow the company’s loss from continuing operations to $1.5 million for the nine months ended December 31, 2013, a 51% reduction from the $3.0 million loss for the same period last year.

Unique visitors to the Salon.com Website is an important driver for Salon’s business. Unique visitors during the December 2013 quarter increased 12% as compared to the quarter ended September 30, 2013, and declined 3% compared to the same period the prior year, according to data compiled by Google Analytics. However, unique visitors in the quarter ended December 2012 included traffic to an affiliated Website that has since been shut down. Excluding the traffic from the affiliated Website, unique visitors to the Salon.com Website in the quarter ended December 2013 increased 43% compared to the December 2012 quarter, pointing to consistent growth in readership at the core brand. Unique visitors as measured by Comscore increased 13% compared to the quarter ended September 30, 2013, and no comparable data was available for the December quarter 2012 as the Comscore data is a new measurement that includes mobile traffic and is available only since July 2013.

Salon also experienced a 60% increase in mobile browser traffic in the December 2013 quarter, compared to the same quarter last year. The company continues to see a significant shift to readers accessing Salon from mobile devices, with 48% of users visiting the Website from mobile devices in December 2013. The entire company is focused on providing the best possible experience on mobile, from content delivery to unique advertising implementations.

Salon’s traffic has also been fuelled by social referral traffic, which grew 18% in the December 2013 quarter versus the September 2013 quarter, and 64% compared to the same period in the prior year. Facebook continues to be the largest social referral, and grew 44% compared to the September 2013 quarter and 123% versus the December 2012 quarter. We saw a doubling of Facebook referrals from September to December 2013, partly as a result of the increase in our mobile traffic.

“There has been a major shift underway in the media. Digital news sources, driven by advanced technologies and improved user experiences across multiple devices, have begun to attract the industry’s best journalists and most creative advertisers,” said Cynthia Jeffers, CEO and CTO of Salon Media Group. “Salon was the first quality online media outlet, earning a reputation for our bold, progressive journalistic voice. We maintain our commitment to that quality, while further integrating the latest technology to ensure our journalists and readers have the most current, and consistent and readily available access. All of this is leading us to our most exciting period of growth yet, and steady progress toward a sustainable and profitable business.”

Salon also announced on February 11th that Thomas Frank would be joining as a politics and culture columnist. Frank will become Salon’s new Sunday morning essayist, and will also host Q-and-As and provide commentary on breaking stories. “Tom brings a leading voice in political commentary to Salon, and his committed progressive worldview represents the principled and fearless independence of mind that’s at the core of Salon,” said Dave Daley, Salon’s Editor-in-Chief. “We are very excited that Tom is joining our team.”

About Salon Media Group

Salon Media Group (OTCQB:SLNM) operates the pioneering, award-winning news site, Salon.com. Salon.com covers breaking news, politics, culture, technology and entertainment through investigative reporting, fearless commentary and criticism, and provocative personal essays. Salon.com has been a leader in online media since the dawn of the digital age and has bureaus in San Francisco, New York City and Washington D.C.

Forward Looking Statements

This press release for the quarter and nine months ended December 2013 contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are made as of the date of this press release based upon our current expectations. All statements, other than statements of historical fact, including, but not limited to, statements regarding our traffic, strategy, plans, objectives, expectations, intentions, financial performance, financing, economic conditions, on-line advertising, market performance, and revenue sources constitute “forward-looking statements.” The words “may,” “will,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “potential” or “continue” and similar types of expressions identify such statements, although not all forward-looking statements contain these identifying words. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause such differences include, but are not limited to:

  • Our dependence on advertising sales for significant revenues
  • Our cash flows may not meet expectations
  • Our ability to control our expenses
  • Our reliance on related parties for significant operating and investment capital
  • Our principal stockholders exercise a controlling influence over our business affairs and may make business decisions with which non-principal stockholders disagree and may affect the value of their investment
  • The impact of controversial content on our website
  • Our ability to promote the Salon brand to attract and retain users, advertisers and strategic partners
  • Our ability to increase referrals from our social media presence
  • Our technology development efforts may not be successful in improving the functionality of our network

This press release should be read in conjunction with our annual report on Form 10-K for the fiscal year ended March 31, 2013, filed with the SEC on June 26, 2013, and our quarterly report on Form 10-Q for the quarter and nine months ended December 31, 2013, filed with the SEC on February 14, 2014, including the “Risk Factors” set forth in such reports, and our other reports currently on file with the Securities and Exchange Commission, which contain more detailed discussion of risks and uncertainties that may affect future results. We do not undertake to update any forward-looking statements except as otherwise required by law.

SALON MEDIA GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and par value amounts)
   
 
December 31, March 31,
2013

2013 (1)

Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 280 $ 96
Accounts receivable, net of allowance of $60 and $62 1,810 720
Prepaid expenses and other current assets 172   318  
Total current assets 2,262 1,134
Property and equipment, net 53 58
Other assets, principally deposits 97   107  
Total assets $ 2,412   $ 1,299  
Liabilities and Stockholders' Deficit
Current liabilities:
Short-term borrowings $ 1,000 $ 1,000
Related party advances 2,591 9,171
Accounts payable and accrued liabilities 1,114 1,128
Deferred revenues -   15  
Total current liabilities 4,705 11,314
 
Deferred rent 3   12  
Total liabilities 4,708   11,326  
Commitments and contingencies
 
Stockholders’ deficit:

Preferred Stock, $0.001 par value, 5,000,000 shares authorized, 1,075 shares issued and outstanding at December 31, 2013 and 8,141 shares issued and outstanding at March 31, 2013 (liquidation value of $9,717 at December 31, 2013 and $21,803 at March 31, 2013)

- -

Common stock, $0.001 par value, 150,000,000 shares authorized, 76,245,442 shares issued and outstanding at December 31, 2013 and 30,000,000 shares authorized, 29,573,265 shares issued and outstanding at March 31, 2013

76 30
Additional paid-in capital 115,561 106,408
Accumulated deficit (117,933 ) (116,465 )
Total stockholders' deficit (2,296 ) (10,027 )
Total liabilities and stockholders' deficit $ 2,412   $ 1,299  
 

(1) Derived from the Company’s audited consolidated financial statements.

 
SALON MEDIA GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
         
 
Three Months Ended Nine Months Ended
December 31, December 31,
2013 2012 2013 2012
 
Revenue, net $ 1,877   $ 1,032   $ 4,637   $ 2,721  
 
Operating expenses:
Production and content 887 833 2,553 2,514
Sales and marketing 473 349 1,377 1,151
Technology 377 340 1,135 967
General and administrative 430 244 1,012 902
Separation expenses -   -   -   218  
Total operating expenses 2,167   1,766   6,077   5,752  
 
Loss from operations (290 ) (734 ) (1,440 ) (3,031 )
Interest expense, net (9 ) (72 ) (28 ) (200 )
Loss from continuing operations (299 ) (806 ) (1,468 ) (3,231 )
Income from discontinued operations -   -   -   233  
Net loss $ (299 ) $ (806 ) $ (1,468 ) $ (2,998 )
 
Basic and diluted net loss per share
Loss from continuing operations $ (0.00 ) $ (0.25 ) $ (0.02 ) $ (0.98 )
Income from discontinued operations -   -   -   0.07  
Net loss $ (0.00 ) $ (0.25 ) $ (0.02 ) $ (0.91 )
 

Weighted average shares used in computing basic and diluted net loss per share

76,245 3,283 73,163 3,283
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, will provide a fun and simple way to introduce Machine Leaning to anyone and everyone. Together we will solve a machine learning problem and find an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intellige...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Amazon is pursuing new markets and disrupting industries at an incredible pace. Almost every industry seems to be in its crosshairs. Companies and industries that once thought they were safe are now worried about being “Amazoned.”. The new watch word should be “Be afraid. Be very afraid.” In his session 21st Cloud Expo, Chris Kocher, a co-founder of Grey Heron, will address questions such as: What new areas is Amazon disrupting? How are they doing this? Where are they likely to go? What are th...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
The dynamic nature of the cloud means that change is a constant when it comes to modern cloud-based infrastructure. Delivering modern applications to end users, therefore, is a constantly shifting challenge. Delivery automation helps IT Ops teams ensure that apps are providing an optimal end user experience over hybrid-cloud and multi-cloud environments, no matter what the current state of the infrastructure is. To employ a delivery automation strategy that reflects your business rules, making r...