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HandHeld Entertainment Provides Business Update and Outlook Wednesday August 15, 8:30 am ET eBaum's World Acquisition Will Position Company Among Market Leaders; Company Proposes Name Change to ZVUE Corporation to Reflect Growing Global Digital Media Network
SAN FRANCISCO--(BUSINESS WIRE)--HandHeld Entertainment(TM) (NASDAQ:ZVUE - News), a global digital entertainment company, announced yesterday in its conference call additional details on its acquisition of eBaum's World and several important business updates. Specifically, the company: proposed changing its name to ZVUE Corporation to better reflect the company's growth in its digital media and product businesses, outlined opportunities to increase its retail distribution channels, and detailed additional financing from company co-founder, Carl Page. "The acquisition of eBaum's World is a transformational event for the company and clearly places us among the recognized industry giants," said Jeff Oscodar, president and CEO of HandHeld Entertainment. "This transaction makes us a major force in the online entertainment industry. Advertisers are already spending more than $1 billion a year on user-generated content sites, and that amount is expected to grow to more than $4 billion on user-generated content sites by 2011. I am very excited by the scale of the opportunities that are immediately ahead of us and believe that we are in an excellent position to benefit from this growth in advertising spending."
Acquisition of eBaum's World will place the ZVUE network among world's leading digital media providers
On August 2, 2007, the company announced that it had signed a definitive agreement to acquire eBaum's World, a pioneering Web site for online video and user-generated content, and one of the largest and most widely recognized online video sites in the world. In addition, the company announced that it has secured commitments for financing to complete the acquisition and provide additional growth capital.
"Making money on user-generated content is something that the eBaum's team does better than anyone else in the business," said Oscodar. "We are very pleased to have the eBaum's team join the ZVUE network, and to acquire the site on what I believe are very favorable terms that benefit not only eBaum's World, but our shareholders as well. We believe that the structure of the acquisition creates a win for all parties involved, and focuses all of our interests in succeeding in this exciting and growing market."
Key metrics and data points for eBaum's World include:
-- $5.2 million in revenue in 2006
-- EBITDA margins and income of approximately 60% and $3.0 million on a pro forma basis for 2006, respectively
-- Online video leadership:
-- 14 million to 19 million daily unique visitors per month
-- More than 2.5 billion page views per year
-- 100% organic user traffic allowing zero cost of customer acquisition
-- A highly loyal and engaged audience:
-- 65% repeat visitors
-- The second ranked video site as measured by time on site, behind only Google's YouTube, according to an April report by Merrill Lynch.
-- Strategic partnerships with leading companies such as AOL Video, Fox Mobile, Facebook, Helio, and Orange, among others.
The new ZVUE network: With the addition of eBaum's World, the ZVUE network becomes the world's sixth largest online video site.(1) Key pro forma metrics for the new ZVUE network include:
The first publicly traded user-generated content company to be EBITDA positive As many as 24 million daily unique visitors per month Approximately 3.5 billion page views annually Eight Web properties focused on user-generated content and select commercial content for humor and extreme sports Commercial content under license covers approximately 12,000 titles from such content producers as Sony BMG Music Entertainment, Showtime, International Marketing Group, Canadian Broadcast Corporation and many others Acquisition terms: The company has agreed to an initial payment of $17.5 million for eBaum's World, comprised of $15 million in cash and $5 million in stock, with $2.5 million of the stock contingent upon eBaum's World delivering approximately $5.7 million in revenue through a 12 month period ending June 2008. In addition, the company may pay earn-outs of up to $32.5 million in cash and stock, subject to eBaum's World meeting specific financial and project-based milestones. The acquisition terms are based upon a valuation of 6X EBITDA which is a strong value relative to the company's peers.
Financing terms: The company has agreed to sell $24.0 million of three-year, 7.5% convertible debentures with a fixed conversion price stock at $1.90 per share, subject to adjustment and customary anti-dilution provisions. The purchasers of the convertible debentures will also receive warrants to purchase approximately 6 million shares of common stock. Of the proceeds, $15.0 million is for the acquisition of eBaum's World and $9.0 million is for growth, working capital and fees. Certain insiders of the company and eBaum's World are expected to provide $1 million of the $24 million financing.
Additional terms of the acquisition and convertible notes are available in a proxy statement filed with the SEC on August 14, 2007 in connection with shareholder approval of certain matters which is required prior to closing.
Development of the ZVUE digital media network
"During the course of the past three years, through innovation and acquisition we have quietly but quickly grown into a significant global digital media company, with a leadership position in a rapidly evolving, high growth market that has developed an extremely loyal and active community of users that is highly prized by advertisers and marketers," added Oscodar. "We have built an online network with a large and engaged audience to whom we are presenting exciting content and we have made significant progress to cash-generation, stability, self-sufficiency and a place from which we can drive future growth. I am pleased to share these updates on our company's development and growth with our partners and especially our shareholders."
Name change: HandHeld Entertainment, Inc. is proposing to change its name to ZVUE Corporation. Growing from its roots as a provider of value-priced digital media players, the new name more accurately reflects the transformation and growth of the company to a global digital entertainment company under the ZVUE brand from what started as a hardware business in 2003. The company's stock will continue to trade on the Nasdaq exchange under the symbol ZVUE.
Bridge financing: The company has arranged for bridge financing of up to $5 million through company co-founder, Carl Page. Any borrowings under this agreement will be represented by notes bearing 6% annual interest and having a due date of January 31, 2008. Up to $500,000 of the note is mandatorily convertible into securities offered in any financing of greater than $20 million, and is included in the $1 million of convertible debentures the company expects to sell to certain insiders of the company and eBaum's World in the previously announced financing transaction.
ZVUE Products: The ZVUE device business is focused on value-priced digital media players with retail mass market distribution. ZVUE's product strategy is to produce high quality devices through relationships with original equipment manufacturers (OEMs) that reduce design and manufacturing costs, customer acceptance risks and time constraints typically associated with the development and distribution of digital media devices. The ZVUE players are currently available at Wal-Mart and InMotion stores throughout the United States and online at Walmart.com and Amazon.com. The company expects that two additional national retail chains will carry its products by the end of 2007. In 2007, the company expects to ship approximately 100,000 ZVUE players, compared to approximately 70,000 units shipped in 2006.
Financial Outlook
Based on the company's current outlook for sales of its ZVUE products, increased monetization of the existing ZVUE network and the expected closing of the eBaum's World acquisition in the fourth quarter of 2007, the company expects revenue of between $6.0 million and $6.5 million for 2007. The company also expects to achieve positive cash flow by the end of the year. For 2008, the company expects revenue to grow by approximately 100%, with 60% of total revenue coming from its digital media business.
Replay of the conference call
A replay of the conference call will be available after 3:30 p.m. PDT on August 14, 2007 through August 28, 2007 by dialing (800) 405-2236 and entering pass code 11095365#. A replay of the conference call and presentation will also be available at www.zvue.com.
About Handheld Entertainment, Inc.
Handheld Entertainment, Inc. (NASDAQ:ZVUE - News) is a global digital entertainment company. Its ZVUE Entertainment Network of Web sites (Putfile.com, Holylemon.com, UnOriginal.co.uk, YourDailyMedia.com, Dorks.com, FunMansion.com and ZVUE.com) now houses more than 850,000 user-generated and commercial videos available for purchase or free viewing, as well as millions of free user-submitted photos and other media, and is expected to deliver nearly one billion page views/video streams in 2007. Its ZVUE personal media players are mass-market priced and currently available for purchase online and in more than 2,200 Wal-Mart stores throughout the U.S. For more information, visit www.zvue.com.
Safe Harbor Statement
Statements made in this release that are not historical in nature constitute forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as expects," plans" will," may," anticipates," believes," should," intends," estimates," and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks associated with the uncertainty of future financial results, additional financing requirements, development of new products and service offerings, change in product and service mix, decreasing reliance for financial results on consumer electronics product sales, ability to monetize, grow users and obtain synergies from acquired user-generated content providers, ability to integrate acquisitions, the effectiveness, profitability, and marketability of such products and services, the ability to protect proprietary information, the impact of current, pending, or future legislation and regulation on the industry, the impact of competitive products, services, pricing or technological changes and the effect of general economic and business conditions. Additional risks and forward looking statements are set forth from time to time in the company's filings with the United States Securities and Exchange Commission, including Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K, and other filed reports which are available on the SEC's website at www.sec.gov. All forward-looking statements included in this release are made as of the date of this press release, and the company assumes no obligation to update any such forward-looking statements.
(1) Pro forma, based on 4/13/07 Merrill Lynch report, "March US Internet Traffic update."
Contact: The Blueshirt Group Scott Wilson, 415-489-2188 (Investors) scott*blueshirtgroup.com or Politis Communications David Politis, 801-523-3730 (Media) Cell: 801-556-8184 dpolitis*politis.com Jonathan Bacon, 801-523-3730 (Media) Cell: 801-660-7820 jbacon*politis.com
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Mad Catz Reports First Quarter Fiscal 2008 Results Tuesday August 14, 4:00 pm ET - Gross Profit Margin Rises to a Record 32% and Gross Profit Rises 32% to $4.7 Million -
SAN DIEGO--(BUSINESS WIRE)--Mad Catz Interactive, Inc. ("Mad Catz" or "the Company") (AMEX/TSX: MCZ), a leading worldwide provider of third-party video game peripherals, today announced financial results for the fiscal 2008 first quarter ended June 30, 2007.
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WWA Group Reports Record Revenues and Earnings for the Three- and Six-Month Periods Ended June 30, 2007 Wednesday August 15, 10:55 am ET Revenue and Gross Margins Increase by 59% and 36% Year over Year
DUBAI, United Arab Emirates--(BUSINESS WIRE)--WWA Group Inc. (OTCBB: WWAG - News), one of the world's largest auctioneers of transportation and industrial equipment, announced today its record setting results for the three and six month periods ended June 30, 2007, as disclosed in WWA Group's Form 10-QSB, available at http://www.sec.gov. ADVERTISEMENT
Revenue for the three months ended June 30, 2007 was $8,063,663 as compared to revenue of $4,345,727 for the three months period ended June 30, 2006, an increase of 86%. Revenue for the six months ended June 30, 2007 increased to $13,686,334 from $8,609,687 for the six months period ended June 30, 2006, an increase of 59%. The increase in revenues over the six month periods can be primarily attributed to an increase in the sale of owned equipment which rose from $4,714,046 for the period ended June 30, 2006 to $9,024,044 for the period ended June 30, 2007, an increase of 91%.
Gross profit for the three months ended June 30, 2007 was $2,568,240 as compared to gross profit of $1,889,378 for the three months ended June 30, 2006, an increase of 36%. Gross profit for the six months ended June 30, 2007 was $3,882,562 as compared to gross profit of $2,622,965 for the six months ended June 30, 2006, an increase of 33%.
Net income for the three months ended June 30, 2007 increased to $1,041,775 as compared to net income of $837,870 for the three months period ended June 2006, an increase of 24% mainly due to higher gross margins on sale of owned equipment. Cash net income before depreciation expenses in the quarter ending June 30, 2007 was approximately $1,240,000 or $0.07 per share for the three month period.
"Our record performance in the first half of 2007 demonstrates our ability to increase profitability from our core operations, and at the same time develop our investments in our mining and shipping ventures," commented WWA Group CEO Eric Montandon. "Based on our current auction schedule, and owned inventory in the sales pipeline, we are on track to continue to outperform revenues and net income in 2007 as compared to 2006. We expect the shipping and mining businesses to add significant contributions to our financial results by year end."
Actual sale prices for all items sold at all auctions are published for members at www.ironauctions.com. Member registration to the site is free by clicking on "Auction Results." Lists of equipment for sale at upcoming WWA Group auctions are updated daily on the site. Anyone interested in consigning equipment to the auctions, or registering to bid, can e-mail info*ironauctions.com or call 011-971-4-881-6142.
About WWA Group
WWA Group, through its wholly owned subsidiary World Wide Auctioneers Ltd. (WAA), is one of the world's largest auctioneers of transportation and industrial equipment. WWA operations are focused on high-growth, underserved regions outside of North America that are transforming into luxury tourism and international economic centers. Since its inception in 2001, WWA has auctioned more than $550 million worth of vehicles and equipment from its Dubai facilities. WWA also manages unreserved auctions in Australia through a joint venture partner. WWA is further distinguished as the largest seller of second-hand construction equipment in the Arab Gulf Cooperation Council (GCC) countries -- Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman. Auctions are conducted on location and through the WWA BIDLive online bidding system.
WWA is now expanding operations to leverage its dominant equipment auction and trading base into a diversified business conglomerate focused on commercial growth opportunities in the Gulf region. For more information, visit http://www.wwagroup.com. For recent news and quotes, visit Yahoo! Finance at http://finance.yahoo.com/q?s=wwag.ob. To sign up to receive e-mail alerts with the latest news on WWA Group, go to: http://otcfn.com/wwag/email_update.html.
Forward Looking Statements
A number of statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. A safe-harbor provision may not be applicable to the forward-looking statements made in this press release because of certain exclusions under Section 27A (b). These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results that WWA Group may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. WWA Group encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-KSB and Form 10-QSB. WWA Group's public filings may be viewed at www.sec.gov.
Contact: WWA Group Inc. Eric Montandon, 011-971-4-881-6142 info*ironauctions.com www.wwagroup.com
-------------------------------------------------------------------------------- Source: WWA Group Inc.
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Paid Inc. Reports Second Quarter 2007 Financials: Revenue up 40% over Q2 2006, Operating Expenses Decrease 21% Wednesday August 15, 11:50 am ET
WORCESTER, Mass.--(BUSINESS WIRE)--Paid, Inc. (OTCBB:PAYD - News) announced that its second quarter 2007 revenue was $843,900, an increase of $239,600 (40%) over revenue of $604,400 for the three months ended June 30, 2006. The increase was due primarily to revenue from tours of performing artists. ADVERTISEMENT
"In the second quarter of 2006, we posted a record 215% increase in revenue from fan experiences and related sales to fans and we've now posted double digit growth on top of that in the second quarter of 2007 while substantially reducing operating expenses," said Greg Rotman, Paid, Inc. CEO. "We've made progress in our stated goal of operational profitability in the second quarter of 2007. We've been expanding our business development efforts and our sales pipeline has increased as a result. With existing and recently signed clients, we believe we'll be able to accelerate our revenue growth in the remainder of 2007. As new business in our sales pipeline comes to fruition over coming months, we anticipate even greater strides in revenue growth in 2008 and beyond, and movement toward future profitability."
For the second quarter of 2007, $810,100 (96%) of gross revenue came from fan experiences, fan club memberships and related merchandise sales, an increase of $379,000 over Q2 2007 due to the Company's artist clients being on tour for a larger portion of the quarter. The increase in revenue was offset by lower revenues related to sports marketing services of $42,700 and lower sales of Company owned product of approximately $102,800 compared to the same period in 2006.
Total operating expenses for the second quarter of 2007 were $746,200 compared to $953,100 in 2006, a decrease of $206,900 (21%) primarily due to decreases in consulting fees of $152,200, and payroll and related costs of $85,800 and web site costs of $23,200, offset by increases in rents and travel totaling $54,100.
Paid realized a net loss for the second quarter of 2007 of $417,200, a decrease of 24% compared to a net loss of $550,700 for the comparable quarter of 2007. The 2007 and 2006 second quarter losses each represent less than $.01 per share. In the second quarter of 2006, Paid retired its long-term debt and continues to be long-term debt free.
Year-to-date financial results
Revenue for the first half of 2007 was $1,312,400, a decrease of approximately $2,098,800 from the first half of 2006 revenue of $3,411,200. There was a $1,908,500 decrease related to the tours of performing artists, lower revenues related to sports marketing services of $96,100 and lower sales of Company owned product of approximately $119,900 from the same period in 2006. Fewer of the Company's artists were on tour during the first half of 2007 and those that were on tour began their tours during the second quarter.
Total operating expenses for the first half of 2007 were $1,944,600 compared to $2,033,700 in 2006, a decrease of $89,100. The Company realized a net loss for the first six months in 2007 of $1,334,400 compared to a net loss of $802,700 for the comparable period in 2006.
Paid's 10-QSB filing is available in its entirety at www.sec.gov.
About Paid, Inc.:
Paid, Inc. operates a diversified set of businesses, including its celebrity services and AuctionInc ecommerce technology businesses. Using proprietary patent-pending technology, Paid's innovative AuctionInc brand shipping calculation and auction management software and services are utilized to streamline online auctions, ecommerce and web site development and hosting. Paid, Inc.'s celebrity services provides celebrities and organizations with official Web sites and fan club services that include e-commerce storefronts, ticketing and fan experience packages and web site content to attract tens of thousands of visitors daily, as detailed on its web site, www.paidcelebrity.com. The Company also sponsors autograph signing events and other sports marketing services for sports clientele. The Company's common stock is traded on the OTC Bulletin Board under the symbol PAYD. For further information, visit http://www.paid.com.
Forward Looking Statements:
This Press Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are based upon current expectations or beliefs, as well as a number of assumptions about future events, including matters related to the Company's operations, profitability, business development efforts, and expectations about celebrity programs and fan club activities, technologies, and services. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which they are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. The reader is cautioned not to put undue reliance on these forward-looking statements, as these statements are subject to numerous factors and uncertainties. In addition, other factors that could cause actual results to differ materially are discussed in the Company's most recent filings, including Form 10-QSB with the Securities and Exchange Commission.
Contact: for Paid, Inc. Accentuate PR Julie Shepherd, +1-815-479-1833 Julie*accentuatePR.com
quote:Originally posted by fourseven: Please don't post multi-paragraphs PRs / news here.. just symbols and quick blurbs about what/why, maybe a link to news if relevant.
thanks!
Although we don't want this to look like Juice's PR thread....I don't see a problem with posting some good PR's... Posts: 2321 | Registered: Aug 2006
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-------------------- The difference between genius and stupidity is that genius has its limits Posts: 10204 | From: NYC | Registered: Mar 2006
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