Brilliant Digital Reports Second Quarter Results.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--August 13, 1999--
Brilliant(TM) Digital Entertainment, Inc. (AMEX AMEX
See: American Stock Exchange : BDE See Borland Database Engine. ), a leading interactive entertainment content and tools developer and owner of The Auction Channel, a UK-based provider of Internet- and television-based auction services, announced results today for the second quarter and six months ended June June: see month. 30, 1999. Brilliant Digital acquired The Auction Channel on July July: see month. 1, 1999, and therefore The Auction Channel's operating results are not reflected herein.
Brilliant's results from operations continue to reflect its ongoing investments in the development of its 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 capabilities, the production of 3-D, digitally animated Multipath Movie episodes/Webisodes (including the Multipath Adventures of Superman Adventures of Superman may refer to the following works featuring Superman:
in full compact disc read-only memory
Type of computer storage medium that is read optically (e.g., by a laser). in July), continued enhancement of its proprietary software tools and Internet Digital Projector See data projector. (TM) technology, and sales and marketing costs related to the ongoing development of third party distribution relationships. Recent distribution agreements include the Fox Kids website, Road Runner road runner: see cuckoo.
thrives on outwitting Wile E. Coyote. [Comics: “Beep Beep the Road Runner” in Horn, 105]
See : Cunning
Road Runner (a high-speed online service), and The Learning Company, Inc. for retail CD-ROM distribution.
Brilliant Digital reported a second quarter net loss of $(2,221,000), or $(0.20) per share. This compares with a net loss of $(2,758,000), or $(0.29) per share, for the same period a year ago. Net revenues for the second quarter of 1999 were $127,000, primarily reflecting retail sales of the Company's newest Multipath Movies, compared to net revenues for the second quarter of 1998 of $1,000.
The Company reported a net loss of $(4,112,000), or $(0.41) per share, for the first six months of 1999, compared with a net loss of $(4,050,000), or $(0.43) per share, for the same period a year ago. Net revenues for the first six months of 1999 were $334,000 compared to $32,000 in the comparable period a year ago.
Commenting on the Company's progress, 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, stated: "In step with the rapid evolution and growth of the Internet marketplace See vertical portal and Web hub. , Brilliant continues to fine-tune its business model with an increasing focus on developing advertising based revenue-sharing arrangements on the Internet with well known high-traffic portals, web sites and broad band services. Supporting our Internet focus, we are pursuing non-Internet opportunities including television and DVD DVD: see digital versatile disc.
in full digital video disc or digital versatile disc
Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. . Though the Internet has achieved tremendous worldwide visibility and interest, it is still quite young as both a commercial forum and a source of entertainment. We therefore expect Internet based revenues from our animation content to be modest until the second half of 2000. With the recent completion of Superman Superman
invincible scourge of crime. [Comics: Horn, 642–643]
See : Crime Fighting
superhero under guise of Clark Kent, mild-mannered reporter. , we believe we have set a new standard for Internet-distributed interactive animation. This new content highlights the significant gains we have made in the past year in our graphics capabilities and speed as well as diminished di·min·ish
v. di·min·ished, di·min·ish·ing, di·min·ish·es
a. To make smaller or less or to cause to appear so.
b. file sizes that support the very large, `narrow-band' marketplace. Our progress is further validated val·i·date
tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates
1. To declare or make legally valid.
2. To mark with an indication of official sanction.
3. by the initiation of recent discussions with studios regarding content distribution and co-production programs.
"Our first Webisodes of Superman are now complete. We intend to release Superman on the Internet early in Q4 supported by a strong marketing and public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most campaign.
"With respect to our The Auction Channel subsidiary (http://www.auctionchannel.com), we are aggressively developing this business, brand and its strong base of auction community relationships into a broad commercial enterprise. To date its auction activity has been limited to times when auction houses are conducting live auctions. We expect to expand upon this approach and begin offering `around-the-clock' web auctions in the first quarter of 2000. This new area of electronic auction services is likely to result in increased 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. activity for The Auction Channel. We are also focussed on expanding The Auction Channel's viewing audience into new markets including the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. as well as the development of additional auction house relationships. To this end, we are currently engaged in a search for senior management to head The Auction Channel's U.S. operations."
About Brilliant Digital Entertainment
BDE is engaged in the development and distribution of cutting-edge interactive content and related e-commerce capabilities for the Internet, broadband broadband
Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). , television and other media. Brilliant is focused on two markets: (1) 3-D, digitally animated content developed using Brilliant's proprietary software tool set and Brilliant's B3D B3D Bodypaint 3D Format (filename extension)
B3D Building Better Business Decisions (Wafi C&TS) file format, and displayed on Brilliant's Digital Projector; and (2) "live" online and television auction broadcasts as well as Internet and telephone bidding and e-commerce 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 toolset, the commercial success of the broadband Internet See broadband. market, the ability of Brilliant to further expand the installed base of Digital Projectors, 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 31, 1998 and the Company's Form 10-QSB for the three months ended March 31, 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. -0-
BRILLIANT DIGITAL ENTERTAINMENT, INC. Condensed Consolidated Balance Sheet (in thousands) (unaudited) June 30, 1999 ----------------- Assets Cash and cash equivalents....................$ 4,587 Other current assets......................... 2,735 ----------------- Total current assets......................... 7,322 Other assets................................. 1,412 ----------------- Total assets.................................$ 8,734 ================= Liabilities and stockholders' equity Current liabilities.......................... 1,716 Long-term liabilities........................ 407 ----------------- Total liabilities............................ 2,123 Total stockholders' equity................... 6,611 ================= Total liabilities and stockholders' equity...$ 8,734 ================= BRILLIANT DIGITAL ENTERTAINMENT, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) 3 months 3 months 6 months 6 months ended ended ended ended 6/30/99 6/30/98 6/30/99 6/30/98 ------------- ----------- ------------ ------- (unaudited) (unaudited) (unaudited)(unaudited) Revenue: Total revenues $ 127 $ 1 $ 334 $ 32 ---------- --------- ------------ ---------- Cost of revenues and expenses: Cost of revenues 141 80 349 346 Sales & marketing 257 670 479 991 General and administrative 937 733 1,536 1,244 Research and development 880 1,314 1,883 1,652 Depreciation 140 112 270 132 ---------- --------- ------------ ---------- Total cost of revenues and expense 2,355 2,909 4,517 4,365 ---------- --------- ------------ ---------- Income (loss) from operations (2,228) (2,908) (4,183) (4,333) Other income (expense): Export market development grant 90 32 127 33 Gain (loss) on foreign exchange (4) 2 (5) (6) Debenture expense (55) -- (55) -- Interest income (expense), net (24) 116 4 256 ---------- --------- ------------ ---------- Total other income (expense) 7 150 71 283 ---------- --------- ------------ ---------- Income (loss) before income taxes (2,221) (2,758) (4,112) (4,050) Provision for income taxes -- -- -- -- ---------- --------- ------------ ---------- Net income (loss) $ (2,221) $ (2,758) $ (4,112) $ (4,050) ========== ========= ============ ========== Basic and diluted net income (loss) per share $ (0.20) $ (0.29) $ (0.41) $ (0.43) ========== ========= ============ ========= Weighted average number of shares used in computing basic and diluted net income (loss) per share 10,852 9,403 10,131 9,403 ========== ========= ============ ==========