Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

New Frontier Media, Inc. (NASDAQ: NOOF) Releases Fiscal 2010 4th Quarter Results

|Includes: New Frontier Media, Inc. (NOOF)

New Frontier Media is a leading producer and distributor of branded television networks and on-demand programming. It operates through 3 primary segments within its business, the Transactional TV segment, the Film Production segment, and the Direct-to-Consumer segment.

Today, the company released its 4th fiscal quarter financial results for the 3 months ended March 31, 2010. Financial Highlights include:

                Revenue was $15.1 million as compared to $13.6 million in the same prior year quarter.

-          Transactional TV segment revenue was $9.3 million as compared to the previous $10.7 million. Revenue from the largest cable operator in the U.S. also declined, believed to be due to lower consumer discretionary spending in response to the economic downturn.

-          Film Production segment revenue increased to $5.6 million from $2.6 million in the same prior year quarter. This was due to multiple factors, including the distribution of both horror film content to home video and VOD platforms and of mainstream content through retail DVD markets. Producer-for-hire and other revenue increased by $3.9 million as well.

-          Direct-to-Consumer segment revenue was approximately $0.2 million and was generally consistent with the same prior year quarter.

Cost of sales increased to $7.4 million as compared to $4.3 million due to production costs realized in connection with producer-for-hire revenue.

Total operating income was a loss of $4.9 million compared to a positive $3.7 million in the same quarter 2009. This includes revenues of $3.5 million for Transactional TV, ($6.3 million) for Film Production, ($.05 million) in Direct-to-Consumer, and ($1.7 million) for Corporate Administration.

The Transactional TV segment distributes branded adult television programming to cable and satellite television companies. The company has 9 full-time transactional adult-themed pay-per-view networks as well as video-on-demand services to cable and satellite operators worldwide. Content is distributed to nearly every television household in the United States. Unlike its competitors, this segment does not produce its own content - nor does it seek to. New Frontier Media, Inc. strategically selects and licenses only those movie titles which fit into its proprietary programming strategy. Based on independent tracking research provided by Rentrak Corporation, their Transactional TV segment content consistently outperforms its closest Video-on-Demand competition.

In addition, New Frontier Media has a film production segment that produces original motion pictures that are distributed in the U.S. on premium movie channels, such as Cinemax® and Showtime®. This segment develops and produces original event programming and a full range of work from independent film producers in markets around the globe. It derives its revenues from 2 principal businesses: 1) The production and distribution of original motion pictures and TV events and 2) The licensing of independent films in international markets under the Lightning Entertainment and Mainline Releasing labels. Today, these portfolios consist of over 80 titles. In 2011, it expects to air a 4th installment of an episodic series that it recently completed.

The Direct-to-Consumer segment derives revenue primarily through subscriptions to its consumer websites. This segment also operates a set-top box IPTV business model.



“New Frontier Media continued to advance its strategic objectives during the fourth quarter,” said Michael Weiner, chief executive officer of New Frontier Media, Inc.  “We grew international revenue within the Transactional TV segment by over 250% as compared to the same prior year quarter through new launches, gains in shelf space, and improved content performance.  Our domestic Transactional TV business appears to have stabilized.  Within the Film Production segment, our producer-for-hire arrangements generated approximately $3.9 million of revenue in the fourth quarter, and our distribution of mainstream content to cable platforms continued to provide meaningful growth for this segment.”

Disclosure: no positions