HandHeld Entertainment Remains on Target to Be Cash Flow Positive by the End of 2007, Company Execs Say in Investor Conference Call Held Wednesday, February 7, 2007.HandHeld Entertainment Execs Continue to Project Cash Flow Positive Results by the End of 2007 by Further Monetizing Its Rapidly Expanding Content Business, Including Its Network of Web Sites That Reached More Than 13.7 Million Unique Visitors A count of how many different people access a Web site. For example, if a user leaves and comes back to the site five times during the measurement period, that person is counted as one unique visitor, but would count as five "user sessions. with More Than 83 Million Page Views in January 2007 SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Executives of HandHeld Entertainment[TM] (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ZVUE)(NASDAQ:ZVUEW) reiterated that the company expects to achieve cash flow positive results by the end of 2007 and that the Web sites now in its network had more than 13.7 million unique visitors in January 2007. The disclosures were made during HandHeld Entertainment's investor conference call, held Wednesday, February 7, which is available for telephonic replay or viewing via the Internet - details of which are below. Key points made by HandHeld Entertainment executives during Wednesday's call include the following: 1) Monetize Recent Content Acquisitions * As a result of four Web site acquisitions made by the company since mid-November and most recently Putfile.com[TM] on February 5 (Dorks.com[TM], FunMansion.com[TM], YourDailyMedia.com[TM] and PutFile.com - each focused on free user-generated video and other forms of media), HandHeld Entertainment now has a network of Web properties that (in combination with ZVUE.com[TM]) attracted more than 13.7 million unique visitors and 83 million page views in January. * HandHeld Entertainment expects to be able to increase traffic to its network of Web properties from 17 million to 20 million unique visitors per month by end of 2007. * Increased traffic to HandHeld Entertainment's network of Web properties should lead to increased advertising revenue for the company: $0.025 to $0.03 per visitor by the end of 2007 up from the current revenue of $.005 per visitor. * As a result, the company expects to increase the advertising revenue from its network of Web sites to $500,000 per month by the end of 2007 up from the present $40,000 per month. * Additionally, the company also plans to continue its efforts to license and acquire compelling portable video content and build one of the largest online libraries in the world of downloadable videos with both free user-generated and premium commercial content. (All traffic figures and rankings noted in this release were determined by the company by using Google Analytics Google Analytics (GA) is a free service offered by Google that generates detailed statistics about the visitors to a website. Its main highlight is that a webmaster can optimize his/her AdWords advertisement and marketing campaigns through the use of GA's analysis of where the and Alexa's traffic ranking system--unless stated otherwise) 2) Continue Operating Plan to be Cash Flow Positive by End of 2007 * The company has reduced its operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. through dramatic reduction of expenses and personnel to 30 full-time employees/equivalents down from 55. * Monthly cash burn has been reduced at HandHeld Entertainment to approximately $400,000 from approximately $700,000. 3) Hardware Business with Goal to Break Even * HandHeld Entertainment's next generation ZVUE player, the ZVUE 260, will remain value priced at less than $149. The ZVUE 260 is the smallest and lightest ZVUE yet, weighing nearly one ounce less than the video iPod A common name for the first iPod that supported video, introduced in late 2005. Also called the 5th Generation iPod (5G iPod). Apple refers to Video iPods as simply "iPod." See iPod. (3.98 ounces versus 4.8 ounces respectively), it features a 2.5-inch active matrix TFT (Thin Film Transistor) The term typically refers to active matrix screens on laptop computers. Active matrix LCD provides a sharper screen display and broader viewing angle than does passive matrix. See LCD and thin film. TFT - Thin Film transistor backlit An LCD screen that has its own light source from the back of the screen, making the background brighter and characters appear sharper. screen and is the first ZVUE to feature a built-in audio speaker. * The company will continue its strategy for mass-market retail distribution, a strategy anchored by its relationship with Wal-Mart that sees HandHeld currently shipping product into more than 2,200 Wal-Mart stores in the U.S., while looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. opportunities to expand into other distribution outlets. * HandHeld Entertainment is continuing its plans to outsource future PMP See point-to-multipoint and portable media player. PMP - Portable Media Player development efforts to leading original equipment manufacturers (OEMs) and Original Design Manufacturers (ODMs), cutting time-to-market to four-to-five months versus the previous 12- to 18-month product design cycle. * The first example of its new OEM/ODM strategy is HandHeld Entertainment's successful launch of its ZVUE MP3 player A digital music player that supports the MP3 format, which was the audio format that started a revolution in online music downloads and distribution. All portable music players, the iPod being the most popular, support MP3 along with one or more other audio formats. in late Fall 2006. Developed in partnership with Sony BMG Sony BMG Music Entertainment, Inc. is the result of a 50/50 joint venture between Sony Music Entertainment (part of Sony) and BMG Entertainment (part of Bertelsmann) completed on August 5, 2004. , the ZVUE MP3 player provided 30 of the top hits of 2006 pre-loaded on the player and was sold through Wal-Mart and InMotion Entertainment stores. Such pre-loaded ZVUE players are characterized by positive cash flow and solid gross margins with tie-ins back to the content sites and HandHeld Entertainment plans to continue such OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and and content partnering efforts in the future. "In less than three short months we have successfully transformed our company into a world leader in the online video marketplace by creating our network of Web properties, giving us a complete media ecosystem The media ecosystem is a term used to describe the relationship between weblogs and traditional journalism. This relationship can be seen as an ecosystem. See also
"I also believe that we will be able to leverage our library 400,000-plus (and growing) free and premium videos across our entire network of Web sites. Doing so will help us to attract more visitors and attract more user-generated content The production of content by the general public rather than by paid professionals and experts in the field. Mostly available on the Web via blogs and wikis, user-generated content refers to material such as the daily news, encyclopedias and other references, movie and product reviews as and create even more compelling advertising and promotional opportunities for our advertisers. We feel the end result should be increased revenue as we move forward and cash flow positive results by the end of 2007." For further highlights of Wednesday's conference call held by HandHeld Entertainment, interested individuals are invited to listen to a replay by calling 877-660-6853 in the U.S. and 201-612-7415 for international callers. The following pass codes (both of which are required for playback) are as follows: account #: 286 and conference ID #: 230834. The conference call and attendant slide presentation can also be viewed online by visiting the corporate Web site www.hheld.com/ir or at http://www.vcall.com/IC/CEPage.asp?ID=113382. About HandHeld Entertainment, Inc. HandHeld Entertainment is a digital-media-to-go company. Its network of Web sites (Putfile.com, YourDailyMedia.com, FunMansion.com and Dorks.com) attracts one of the largest audiences in the world of unique visitors viewing user-generated content. Its ZVUE family of mass-market portable media players is mass-market priced and available for purchase online and in retail locations across the U.S. Additionally, portable video lovers can visit HandHeld Entertainment's premium video content store at www.zvue.com to buy pay-per-download videos. HandHeld Entertainment's common stock and warrants are traded on the NASDAQ Capital Market Originally called the NASDAQ Small Cap Market, NASDAQ announced a name change to the NASDAQ Capital Market on September 27, 2005. [1] The NASDAQ Capital Market exists for securities of smaller, less-capitalized companies (small caps) that do not qualify for (ZVUE, ZVUEW) and Boston Stock Market (HDE HDE Hauptverband des Deutschen Einzelhandels (Central Association of German Retail Trade) HDE Humanitarian Device Exemption HDE Heavy-Duty Engine HDE Holdrege, Nebraska (airport code) , HDEW), respectively. For more information, visit www.hheld.com/ir or call 415-495-6470. About the ZVUE HandHeld Entertainment's ZVUE line of portable media players is available in more than 2,200 Wal-Mart stores throughout the United States, as well as through other retailers and on the Internet. The SRP SRP - A data link layer protocol. $99 (US) ZVUE plays videos and MP3 files and also allows users to view digital pictures from a digital camera or home recorded on a camcorder. HandHeld Entertainment also supplies Wal-Mart and InMotion Entertainment with the ZVUE MP3 player, an MP3 player pre-loaded with 30 of the top songs from 2006. HandHeld Entertainment, Putfile.com, YourDailyMedia.com, FunMansion.com, Dorks.com, ZVUE.com and ZVUE are trademarks of HandHeld Entertainment. All other trademarks are property of their respective owners. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of various factors including the ability of the company to successfully commercialize its new technologies as well as risk factors set forth from time to time in HandHeld Entertainment'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 Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. and other reports filed by the company with the SEC. The company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. As a result, investors should not place undue reliance on these forward-looking statements. |
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