New Frontier CEO Michael Weiner said its first-quarter revenue decreased to $12.9 million from $16.3 million for the same quarter a year ago. Net income for the current year quarter was $1.5 million compared to $3.5 million for the same quarter a year ago.
But Weiner, in a conference call with investors, said that the company is on solid ground, particularly since its announcement on Monday that it will broadcast Private Media Group’s entire library for its video-on-demand and pay-per-view properties, including on IPTV, or Internet protocol TV.
“We believe we are seeing the beginning of a new trend and we see our company at the forefront of new technology,” said Weiner, referring to the Boulder, Colo.-based company’s IPTV initiative. “[IPTV] facilitates a wide range of content, which we currently have.”
Barcelona-based Private has more than 1,000 titles and is one of the largest global adult entertainment companies. New Frontier said that it plans to broadcast Private content in their original languages when the videos debut.
Weiner also said the company tapped Matthew T. Pullam as its new CFO to replace outgoing longtime executive Karyn L. Miller.
Pullam most recently served as chief financial officer and treasurer of Quovadx Inc., a publicly held provider of software in the health care, financial services and telecommunications sectors.
Pullam will assume his role as CFO of New Frontier Media on Sept. 5.
“He has the technical expertise to assure the continued quality of our financial processes, controls and reporting, while also possessing a keen strategic sense which will assist us in guiding New Frontier Media to a new era of growth for our investors,” Weiner said.
The company said it reaches 139 million households through its cable and satellite operations.
Discussing the company’s quarterly earnings, Weiner said that net income for the quarter was $1.5 million compared to $3.5 million for the same quarter a year ago.
“This quarter’s results were in line with our expectations,” Weiner said. “We expect that our full year dividend of 50 cents per share will be paid entirely out of cash flows generated during this fiscal year.”
Weiner said revenue from VOD service was $4.6 million for both quarters ended June 30, 2007 and 2006. But revenue from its satellite service decreased 20 percent to $400,000 for the quarter.
The company’s Internet segment reported net revenue of $500,000 for the quarter compared to net revenue of $600,000 million for the same quarter last year, representing a decrease of 17 percent.
