Attached files
file | filename |
---|---|
8-K - Onstream Media CORP | v205338_8k.htm |
Exhibit
99.1
Onstream
Media Announces Recent Developments
POMPANO BEACH, FL – December 13, 2010
– Onstream Media Corporation (NASDAQ: ONSM), a leading online service
provider of live and on-demand Internet broadcasting, corporate web
communications and virtual marketplace technology, today provided status reports
on recent developments with respect to our MarketPlace365TM product
and our patent pending on certain video ingestion and flash transcoder
technology. In addition, we reported the receipt of a letter from NASDAQ, as a
result of the bid price of our common stock closing below $1.00 per share for
the preceding thirty consecutive business days.
MarketPlace365TM status
update
As of
today, there are four active MarketPlace365TM
promoter sites – SUBWAY (a private marketplace for internal use by SUBWAY
vendors, franchisees and staff), Home Service Expo (a general public accessible
marketplace providing services for homeowners in the Dade, Broward and Palm
Beach counties of Florida), Green Light Expo (a general public accessible global
products and services expo targeting all things green for lifestyle and business
applications) and ProActive Capital Forum (general public accessible and
believed to be the first 24/7/365 financial tradeshow concentrating on companies
in the life-sciences and technology areas).
Randy
Selman, Onstream Media’s President and CEO, observed, “We are pleased to be at
the point where we are beginning to recognize revenue from this product line.
After thorough research and extensive discussions with promoters and industry
professionals, we identified new MarketPlace365 features and capabilities
required in the platform in order to fully address our clients’ needs. Although
this resulted in a temporary delay in the launch of additional MarketPlace365
sites we are now actively deploying new marketplaces several of which will be
operational in the next few weeks.”
”MarketPlace365
now has the flexibility to provide both local and global applicability, to
support marketplaces with very large numbers of aisles and exhibitors, to
provide a vast array of content and social networking services and to offer a
substantial number of additional revenue generating functionalities not part of
the original design specification. These revenue opportunities
include additional areas for billboard and banner ads, sponsorships,
subscriptions and pay-per-view,” continued Mr. Selman.
Mr.
Selman added, “MarketPlace365 has been a highly complex development effort in
order to enable it to fit a myriad of applications. However, this effort has
resulted in a technology platform that is simple to use and operate. Our
webcasting technology, audio and web conferencing services, user generated
content, e-commerce, content management and publishing platform, other Onstream
products and services as well as third party products such as Agendize,
e-Touches and Microsoft Communications services, have all been integrated into a
single platform for both event and permanent (community)
applications.”
99.1-1
Mr.
Selman concluded, “In addition to the four active marketplaces, we have signed
MarketPlace365 promoter contracts for another 15 marketplaces, many of which we
expect will launch and become active in the coming weeks and months. In addition
more than 50 promoter prospects are in the pipeline with new ones being added
daily. As this process continues, we expect that revenues from MarketPlace365
will soon be a meaningful part of our overall operating results.”
Pending
patent status update
On
November 22, 2010 we filed a Notice of Appeal with the U.S. Patent Office
(USPO), with respect to their previous rejection of certain aspects of our
pending patent for certain video ingestion and flash transcoder technology. Our
next step is to file an appeal brief, which will be due on January 24, 2011,
although extensions for this filing are available until June 22, 2011 with the
payment of additional fees. After our appeal document is filed, the USPO
would be expected to file a response and following that, a decision would be
made by a three member panel, either based on the filings or a hearing if
requested by us.
NASDAQ
letter
We
received a letter from NASDAQ dated December 7, 2010 indicating that we have 180
calendar days, or until June 6, 2011, to regain compliance with Listing Rule
5550 (a)(2)(a), which is necessary in order to be eligible for continued listing
on The NASDAQ Capital Market. The letter from NASDAQ indicated that our
non-compliance with that rule resulted from the bid price of our common stock
closing below $1.00 per share for the preceding thirty consecutive business
days. We may be considered compliant, subject to the NASDAQ staff’s discretion,
if our common stock closes at $1.00 per share or more for a minimum of ten
consecutive business days before the June 6, 2011 deadline. If we are not
considered compliant by June 6, 2011, but meet the continued listing requirement
for market value of publicly held shares and all other initial listing standards
for The NASDAQ Capital Market, and we provide written notice of our intention to
cure the deficiency during the second compliance period, we will be granted an
additional 180 calendar day compliance period. During the compliance period(s),
our stock will continue to be listed and eligible for trading on The NASDAQ
Capital Market.
Mr.
Selman commented, “We recently announced not only an approximately $330,000
improvement in our fiscal 2010 fourth quarter revenues over the same period of
last year, but also that we had positive cash provided by operating activities
(before changes in current assets and liabilities) for the fiscal 2010 fourth
quarter, the first time in the company's history that it has had consecutive
quarters with positive cash from operations (before changes in current assets
and liabilities). We are also encouraged by the response to the MarketPlace365
program thus far, which we believe will contribute to achieving our growth plans
for fiscal 2011.”
99.1-2
Mr.
Selman continued, “Accordingly, relative to the NASDAQ notification, we remain
confident that the market will reflect the value we are creating and the
progress we have made in executing our growth strategy. Furthermore, we believe
that if necessary we will be able to meet the NASDAQ criteria to receive a
second 180 day compliance period, which would then give us up to a full year to
regain compliance.”
About
Onstream Media:
Onstream
Media Corporation (Nasdaq: ONSM) is a leading, online, service provider of live
and on-demand Internet broadcasting, corporate web communications and virtual
marketplace technology. Onstream Media's innovative Digital Media Services
Platform (DMSP) provides customers with cost-effective tools for encoding,
managing, indexing, and publishing content via the Internet. The company’s MarketPlace365™
solution enables publishers, associations, tradeshow promoters and entrepreneurs
to rapidly and cost-effectively self-deploy their own online virtual
marketplaces. In addition, Onstream Media provides live and on-demand
webcasting, webinars, web and audio conferencing services. To date,
almost half of the Fortune 1000 companies and 78% of the Fortune 100 CEOs and
CFOs have used Onstream Media's services. Select Onstream Media customers
include: AAA, Dell, Disney, Georgetown University, National Press Club, PR
Newswire, Shareholder.com (NASDAQ), Sony Pictures and the U.S. Government.
Onstream Media's strategic relationships include Akamai, Adobe, BT Conferencing,
Qwest and Tradeshow News Network (TSNN). For more information, visit Onstream
Media at www.onstreammedia.com or call 954-917-6655.
Cautionary
Note Regarding Forward Looking Statements
Certain
statements in this document and elsewhere by Onstream Media are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such information includes, without limitation, the business outlook,
assessment of market conditions, anticipated financial and operating results,
strategies, future plans, contingencies and contemplated transactions of the
company. Such forward-looking statements are not guarantees of future
performance and are subject to known and unknown risks, uncertainties and other
factors which may cause or contribute to actual results of company operations,
or the performance or achievements of the company or industry results, to differ
materially from those expressed, or implied by the forward-looking statements.
In addition to any such risks, uncertainties and other factors discussed
elsewhere herein, risks, uncertainties and other factors that could cause or
contribute to actual results differing materially from those expressed or
implied for the forward-looking statements include, but are not limited to
fluctuations in demand; changes to economic growth in the U.S. economy;
government policies and regulations, including, but not limited to those
affecting the Internet. Onstream Media undertakes no obligation to publicly
update any forward-looking statements, whether as a result of new information,
future events or otherwise. Actual results, performance or achievements could
differ materially from those anticipated in such forward-looking statements as a
result of certain factors, including those set forth in Onstream Media
Corporation's filings with the Securities and Exchange Commission.
99.1-3
Media
Relations:
Chris
Faust
Fastlane
973-226-4379
cfaust@fast-lane.net
Investor
Relations:
Jeffrey
Ramson
ProActive
Capital Resources Group
212-297-6103
jramson@proactivecrg.com
99.1-4