Results F3Q05 vs. F3Q04
- EPS: $0.13 vs. $0.12 (+8%)
- Total revenues: $12.0M vs. $10.8M (+11%)
- Pay TV revenues: $11.3M vs. $10.0M (+12%)
- Internet revenues: $0.7M vs. $0.8M (-5%)
- Gross profit: $8.0M vs. $6.6M (+22%)
- Gross margin: 67% vs. 61% (+570 bps)
- Operating income: $4.4M vs. $3.0M (+48%)
- Operating margin: 37% vs. 28% (+900 bps)
- Net income: $2.9M vs. $2.7M (+7%)
- Cash: $17.4M vs. $15.4M (+13%)
- Debt: $0.3 vs. $0.9 (-63%)
- Free Cash Flow: $12.7M vs. $8.9M (+43%)
Revenue trends by platform
- VOD revenues (36% of total): +30%
- PPV revenues (32% of total): +17%
- C-Band revenues (8% of total): -36%
Major Customers F3Q05 vs. F3Q04 (% of total revenues):
- Echostar (NASDAQ:DISH): 34% vs. 34%
- Time Warner (NYSE:TWX): 17% vs. 17%
- Comcast (NASDAQ:CMCSA): 12% vs. 3%
- Kagan Research estimates that there will be 24M digital cables subs in the US by year-end 2005; of the current estimated 20M subs, 17.7M have access to adult VOD.
- NOOF expects increased competition as its largest competitor and other smaller competitors will be picked up by the largest cable MSO.
- Some cable MSOs are removing adult content from their PPV platform and only offering it as VOD.
- The C-Band analog market is in decline; NOOF's C-Band business should show declining revenues for the rest of 2005 and will be discontinued by F3Q06.