Brilliant Digital Entertainment Reports Third Quarter Results -- Highlights Strategic Progress Since Close of Second Quarter.
LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE )--Nov. 15, 1999--
Brilliant(tm) Digital Entertainment, Inc. (AMEX AMEX
See: American Stock Exchange :BDE See Borland Database Engine. ), a leading developer of Internet Internet
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the entertainment content and related software tools and the owner of The Auction Channel, a provider of Internet-and television-based auction content and real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. Internet and telephone bidding technology and services, announced results today for the third quarter and nine months ended September September: see month. 30, 1999. Brilliant Digital also highlighted recent corporate progress in its The Auction Channel and Internet content business segments.
Reflecting ongoing research and development expenses as well as the added overhead burden of The Auction Channel, which was acquired in July July: see month. , Brilliant Digital reported a third quarter net loss of $(2,834,000), or $(0.23) per share, compared with a net loss of $(2,257,000), or $(0.24) per share, for the same period a year ago. Brilliant Digital's 1999 third quarter revenues rose to $299,000, compared to revenues of $175,000 for the third quarter of the prior year.
For the nine months ended September 30, 1999, the Company reported a net loss of $(6,947,000), or $(0.64) per share, compared to a net loss in the year-ago nine months of $(6,331,000), or $(0.67) per share. Revenues for the first nine months of 1999 were $633,000, compared to revenues of $207,000 in the year-ago period.
The Auction Channel:
-- Brilliant Digital acquired The Auction Channel in July 1999.
Teamed with prominent International auction houses such as
Christie's Christie's, English firm of art auctioneers and appraisers, one of the largest clearinghouses in the world for art objects of all kinds. Founded in 1766 by James Christie, it has locations all over the world. Bibliography
See M. C. , Bonhams Bonhams is a privately owned British auction house founded in 1793. It is the third largest auctioneer after Sotheby's and Christie's, and conducts around 700 auctions per year.
The firm has London salerooms in New Bond Street and Knightsbridge. and Brooks, The Auction Channel provides
live Internet and television broadcasts of auctions as well
as real-time Internet and telephone bidding services.
-- Ron Noun 1. Ron - a Chadic language spoken in northern Nigeria
West Chadic - a group of Chadic languages spoken in northern Nigeria; Hausa in the most important member Chaimowitz, former co-founder, Chairman and Chief
Executive Officer of GT Interactive Software, was named Chief
Executive Officer of The Auction Channel. Mr. Chaimowitz is
leading the global roll-out of The Auction Channel's services
which had initially focused on the United Kingdom market. In
addition to expanding The Auction Channel's broadcast
relationships, Mr. Chaimowitz will focus on establishing a
national presence in the U.S. for The Auction Channel from
new headquarters in New York City New York City: see New York, city.
New York City
City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. .
Internet Content Distribution Relationships:
-- Warner Bros BROS Brothers
BROS Benefits and Retirement Operations Section (King County, Washington)
BROS Barnes and Richmond Operatic Society (London, UK) . Online and Brilliant Digital formed a
co-production and Internet distribution relationship to
launch a co-branded 3-D animation channel, the "Multipath
Movie Channel," on Time Warner's Web site
http://www.Entertaindom.com. The highly anticipated
Entertaindom Web site is expected to launch before year-end year-end also year·end
The end of a year.
Occurring or done at the end of the year: a year-end audit.
Noun 1. .
-- Fox Kids entered into an agreement with Brilliant to bring
Multipath Movie titles to the Fox Kids Web site
http://www.foxkids.com. The collaboration Working together on a project. See collaborative software. will also permit
for corporate sponsorship opportunities which will be managed
by Fox Kids under a revenue sharing revenue sharing
Funding arrangement in which one government unit grants a portion of its tax income to another government unit. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states. arrangement.
Kevin Bermeister Kevin Bermeister has developed substantial businesses in the computers, video games and multimedia industries. He established Ozisoft in 1982, based in Sydney, Australia, which was one of the first interactive multimedia companies. , President of Brilliant Digital, commented, "We are confident that the Internet will become a primary medium for entertainment in the coming years, particularly given the growing convergence of television and Internet programming. Accordingly, Brilliant has focused its operations on developing content and technology that bridges both the Internet and TV, creating compelling entertainment experiences across the broadest possible viewer base. Brilliant's content is distinguished by its `skinny' (i.e. small) file sizes and powerful full-screen rendering See render.
(graphics, text) rendering - The conversion of a high-level object-based description into a graphical image for display.
For example, ray-tracing takes a mathematical model of a three-dimensional object or scene and converts it into a bitmap image. capabilities that create a unique, interactive 3-D animation experience even via a narrow-band Internet connection.
"What better vote of confidence for Brilliant's strategy and technology than to be selected by two leading studios, Warner Bros. Online and Fox Kids, to provide content for their Internet networks. We remain engaged in an active effort to develop a growing base of content distribution relationships that will further expand our Internet presence and revenue opportunities."
Mr. Bermeister, added, "We are very excited about the global expansion and upcoming U.S. launch of The Auction Channel, which is now being guided by its new CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Ron Chaimowitz. Ron possesses deep entertainment industry experience and has, on more than one occasion, built substantial new entertainment businesses within rapidly evolving markets. We believe Ron's proven leadership and management skills, combined with The Auction Channel's unique industry position and strong base of auction house relationships, will allow this innovative business model to be rapidly positioned for future expansion."
About Brilliant Digital Entertainment
Brilliant Digital Entertainment is a pioneering entertainment content provider and technology developer for the converging con·verge
v. con·verged, con·verg·ing, con·verg·es
a. To tend toward or approach an intersecting point: lines that converge.
b. Internet and television markets. The Company is focused on two principle market segments: (1) The development and distribution of 3-D, digitally animated interactive content, distinguished by its small file sizes/shorter download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. times and full-screen images, developed using Brilliant's proprietary software. (2) Live Internet and television auction broadcasts as well as real-time Internet and telephone bidding and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. services, in conjunction with top auction houses, through its The Auction Channel subsidiary.
More information on Brilliant Digital Entertainment may be found at http://www.bde3d.com, and on The Auction Channel at http://www.theauctionchannel.com
Information about Forward Looking Statements: Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend
v. a·mend·ed, a·mend·ing, a·mends
1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive.
2. , and Section 21E of the Securities Act of 1934, as amended. Actual results may differ materially due to a variety of factors. Factors that could cause or contribute to such differences include, but are not limited to, stock price movements, the commercial success of Brilliant's content, the commercial success of Brilliant's B3D B3D Bodypaint 3D Format (filename extension)
B3D Building Better Business Decisions (Wafi C&TS) toolset, the commercial success of the broadband Internet See broadband. market, the ability of Brilliant to further expand the installed base of Digital Projectors See data projector. , the availability of financial resources for marketing of the Digital Projector and Brilliant's content, the ability of Brilliant to attract talented sales and business development personnel in a highly competitive market, the ability of Brilliant to convince consumers to initiate larger downloads over lower bandwidth connections, the risk that Brilliant's promotional efforts and the promotional prominence prominence /prom·i·nence/ (prom´i-nins) a protrusion or projection.
frontonasal prominence provided for Brilliant's products may not be sufficient to attract consumer attention, Brilliant's ability to integrate The Auction Channel into its operations, The Auction Channel's ability to enter into additional agreements to provide services to auction houses, consumer interest in participating in live auctions via the Internet or telephone, Brilliant's ability to establish joint venture agreements and carriage agreements with television and media companies worldwide for The Auction Channel, the limited operating history of Brilliant and The Auction Channel, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating results, seasonality, competition with significantly larger competitors, risks associated with system development and operation, risks of new business areas, and all of the factors that may influence future business and financial results set forth in the Company's Form 10-KSB for the period ended December December: see month. 31, 1998 and the Company's Form 10-QSB for the three months ended September 30, 1999. If Brilliant is unable to successfully implement its Internet strategies and strategy for The Auction Channel, timely release, market and distribute its new products, or if Brilliant's products are not commercially successful, Brilliant's results will be materially adversely affected. All forward-looking statements are based on information available to the Company on the date hereof here·of
Formal or law of or concerning this
Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company assumes no obligation to update such statements. Copies of the Company's most recently filed Form 10-KSB report and 10-QSB report and are available from Brilliant Digital Entertainment's Investor Relations Investor relations
The process by which the corporation communicates with its investors. department and may be obtained by calling or writing to our investor relations company, Jaffoni & Collins at 212-835-8500 or email@example.com
BRILLIANT DIGITAL ENTERTAINMENT, INC. CONDENSED CONSOLIDATED BALANCE SHEET (unaudited) (in thousands) September 30, 1999 ---------------- Assets Cash and cash equivalents $1,936 Other current assets 2,861 Total current assets 4,797 Other assets 6872 Total assets $11,669 Liabilities and stockholders' equity Current liabilities $2,749 Long-term liabilities 377 Total liabilities 3,126 Total stockholders' equity 8,543 Total liabilities and stockholders' equity $11,669 BRILLIANT DIGITAL ENTERTAINMENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands) 3 months ended 3 months ended 9/30/99 9/30/98 (unaudited) (unaudited) Revenue: Revenues $299 $175 Cost of revenues and expenses: Cost of revenues 268 50 Sales & marketing 250 304 General and administrative 1,116 779 Research and development 1,029 1,297 Amortize software & goodwill 409 -- Depreciation 145 123 Total cost of revenues and expenses 3,217 2,553 Income (loss) from operations (2,918) (2,378) Other income (expense): Export market development grant 55 40 Gain (loss) on foreign exchange -- 1 Debenture expense -- -- Interest income (expense), net 29 80 Total other income (expense) 84 121 Income (loss) before income taxes (2,834) (2,257) Provision for income taxes -- -- Net loss $(2,834) $(2,257) Comprehensive loss $(2,887) $(2,315) Basic and diluted net loss per share $(0.23) $(0.24) Weighted average number of shares used in computing basic and diluted net loss per share 12,373 9,403 -0- BRILLIANT DIGITAL ENTERTAINMENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands) 9 months ended 9 months ended 9/30/99 9/30/98 (unaudited) (unaudited) Revenue: Revenues $633 $207 Cost of revenues and expenses: Cost of revenues 617 390 Sales & marketing 729 1,279 General and administrative 2,653 2,027 Research and development 2,912 2,989 Amortize software & goodwill 409 -- Depreciation 415 258 Total cost of revenues and expenses 7,735 6,943 Income (loss) from operations (7,102) (6,736) Other income (expense): Export market development grant 182 73 Gain (loss) on foreign exchange (5) (5) Debenture expense (55) -- Interest income (expense), net 33 337 Total other income (expense) 155 405 Income (loss) before income taxes (6,947) (6,331) Provision for income taxes -- -- Net loss $(6,947) $(6,331) Comprehensive loss $(6,974) $(6,385) Basic and diluted net loss per share $(0.64) $(0.67) Weighted average number of shares used in computing basic and diluted net loss per share 10,878 9,403 -0-