Attached files
Exhibit
99.1
Betawave
Corporation Reports Third Quarter 2009 Financial Results
SAN
FRANCISCO, CA – November 16, 2009 – Betawave Corporation (OTCBB: BWAV, www.betawave.com),
the online media network that delivers highly attentive audiences to brand
marketers, reported its results for the quarter ended September 30, 2009
today.
The
Company’s total revenues decreased to $1,725,499 for the three months ended
September 30, 2009. We believe this is primarily because retail advertising,
which comprised the majority of the Company’s third quarter 2008 revenue, was
one of the advertising sectors hardest hit by the recent economic
crisis.
The
Company has taken several steps to return to revenue growth and was aggressive
in September and October 2009 about cutting expenses. The Company
anticipates that revenue will be in excess of $2 million for the fourth quarter
of 2009 and that it could return to year-over-year revenue growth as early as
the first quarter of 2010.
Betawave’s
network has grown to 32 million unique U.S. visitors per month. When ranked with
major youth media, the Betawave Network reaches more visitors than any other
youth oriented sites. In addition to its youth audience, Betawave achieves the
highest time spent across core women demographics with 63 minutes of time spent
on the site per month, over 240% higher than our closest
competitor.
Management Comment, Matt
Freeman, CEO of Betawave
“The
third quarter was the most difficult quarter of the last two years for us as the
full brunt of the economic crisis impacted our business. The steps we have taken
this quarter led to immediate increased revenue for the Company and should help
us stay flexible enough to compete during 2010. Our customers, which are some of
the largest advertisers in the world, continue to be enthusiastic about our
products and services. We expect this to translate into growth next
year.”
The
following summarizes certain selected financial data of Betawave.
SELECTED
CONDENSED
CONSOLIDATED
STATEMENTS OF OPERATIONS DATA
|
For the Three Months
Ended
|
|
September 30, 2009
|
September 30, 2008
|
|
Revenues
|
$1,725,499
|
$2,786,139
|
Total
costs of revenues and expenses
|
$6,023,914
|
$5,147,610
|
Net
loss
|
$(4,331,469)
|
$(3,249,036)
|
Net
loss per share – basic and diluted
|
$(0.15)
|
$(0.13)
|
SELECTED
CONDENSED
CONSOLIDATED
CASH FLOWS DATA
|
For the Nine Months
Ended
|
|
September 30, 2009
|
September 30, 2008
|
|
Net
cash used in operating activities^
|
$(9,181,539)
|
$(4,278,066)
|
Net
cash used in investing activities
|
$(82,178)
|
$(583,396)
|
Net
cash provided by financing activities
|
$1,414,421
|
$3,798,700
|
^Net
decrease in cash and cash equivalents for the three months ended September 30,
2009 was $1,721,757.
SELECTED
CONDENSED
CONSOLIDATED
BALANCE SHEETS DATA
|
As of
|
|
September 30, 2009
|
December 31, 2008
|
|
Current
assets
|
$5,989,643
|
$15,933,086
|
Total
assets
|
$6,300,240
|
$16,282,563
|
Total
current liabilities
|
$4,850,942
|
$5,796,969
|
Total
stockholders’ equity
|
$1,449,298
|
$10,485,594
|
Total
liabilities and stockholders’ equity
|
$6,300,240
|
$16,282,563
|
The
financial statement information set forth in this press release should be read
in conjunction with Item 2, “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and the unaudited condensed consolidated
financial statements and related notes thereto included in Betawave’s Quarterly
Report on Form 10-Q for the three months ended September 30, 2009, which will be
filed today with the Securities and Exchange Commission (“SEC”) and will be
available for review on the SEC’s website at www.sec.gov and
Betawave’s Annual Report on Form 10-K for the fiscal year ended December 31,
2008 filed with the SEC on March 31, 2009.
* Source:
comScore Media Metrix, October 2009, Unduplicated Audience. Rankings based on
the following categories: Kids-Entertainment, Lifestyle-community,
Parenting-community.
Betawave Corporation
(www.betawave.com) (OTCBB:BWAV), is an online media network that delivers highly
attentive audiences online. The company reaches 32 million U.S.
unique users in high quality editorial environments. Betawave’s
publishers are leading mid-tail publishers that capture substantial time spent
per user each month.* The Betawave network of sites ranks at or near
the top in total audience reach and time spent across the relevant demographics
in five key categories: Teens, Kids Entertainment, Games, Lifestyles and
Parenting. (*Source: comScore, October 2009.) Betawave is
headquartered in San Francisco and New York with sales offices in Los Angeles
and Chicago.
Safe Harbor
Statement
This
press release may contain forward-looking statements that involve risks and
uncertainties, such as statements of Betawave’s plans, objectives, expectations
and intentions. Forward-looking statements are generally identified by words,
such as “projects,” “believes,” “anticipates,” “plans,” “expects,” “will,” and
“would,” and similar expressions that are intended to identify forward-looking
statements. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause the actual results, performance
or achievements of Betawave to be materially different from those expressed or
implied by forward-looking statements. Actual events may differ materially from
those mentioned in these forward-looking statements because of a number of risks
and uncertainties. Discussion of factors affecting Betawave’s business and
prospects is contained in Betawave’s periodic filings with the Securities and
Exchange Commission, including Betawave’s Quarterly Report on Form 10-Q for the
three months ended September 30, 2009, which is expected to be filed today with
the Securities and Exchange Commission. Betawave undertakes no obligation to
publicly update or revise any forward-looking statements or to make any other
forward-looking statements, whether as a result of new information, future
events or otherwise unless required to do so by the securities laws. Investors
are cautioned that forward-looking statements are not guarantees of future
performance and that undue reliance should not be placed on such
statements.
Contact:
Betawave
Corporation
David
Lorie, 415-738-8706 (Investor Relations)
General
Counsel