Idle Media, Inc. (OTCBB: IDLM) today announced its full fiscal year
financial results for the period ending September 30, 2010.
- Revenues increased by $800,559 to $1,425,523 in fiscal 2010,
versus revenues of $624,964 in the 2009 fiscal year, an increase of
128.10%;
- Net income increased from $223,805 in fiscal 2009, to $746,523
in fiscal 2010, an increase of 234%;
- Net profit margin during the fiscal year ended September 30,
2010 was 52%, compared to 36% in the year ago period ended
September 30, 2009;
- Total assets increased from $191,115 at the end of fiscal 2009,
to $747,276 at the end of fiscal 2010, an increase of 291%;
- Visits from October 2009 - September 2010 were 110,695,991
versus 69,231,716 from the comparable period in 2008 - 2009, an
increase of 59.89%;
- Unique visitors from October 2009 - September 2010 were
31,650,895 versus 17,275,157 from the comparable period in 2008 -
2009, an increase of 83.2%;
- Page views from October 2009 - September 2010 were 870,041,199
versus 470,540,170 from the comparable period in 2008 - 2009, an
increase of 84.9%;
- Third party advertising revenue increased from $543,323 in
fiscal year 2009, to $1,334,403 in fiscal year 2010, an increase of
146%;
- Subscription revenue declined approximately 3% from the year
ended September 30, 2009 to 2010 as the Company refocused its
business model away from premium subscriptions and focused its
efforts on advertising revenues.
"I am extremely pleased by our financial performance over the
past year," commented Mr. Marcus Frasier, CEO of Idle Media, Inc.
"Transitioning to a public company comes with many challenges, and
we feel that we have met them head on. We've maintained our focus
and continued to grow our business organically to strengthen our
cash position and balance sheet."
Mr. Frasier added, "As we enter 2011, we will continue to focus
on our core competencies, while looking to expand our business
through identifying strategic partners and opportunities that are
synergistic with our overall objectives for manageable growth with
minimal dilution."
Fiscal year 2010 Financial Results
Revenues
Revenues for the fiscal year ending September 30, 2010 were
$1,425,523 versus revenues of $624,964 in the 2009 fiscal year
ending September 30, 2009, an increase of $800,559, or 128.10%.
Third party advertising revenue increased from $543,323 in
fiscal year 2009, to $1,334,403 in fiscal year 2010, an increase of
146%.
Subscription revenues declined just over 3% from the year ended
September 30, 2009 to 2010. We believe this is attributable to our
management deciding to focus less on attracting premium subscribers
and more on increasing advertising sources and revenues.
Resultantly, we experienced a dramatic 146% increase in third-party
advertising revenue and a 68% increase in sponsorship revenues
during the year ended September 30, 2010 compared to the year ended
September 30, 2009, as we added new advertising providers during
the most recent fiscal year.
In the past 12 months the Company has increased its online
portfolio of websites from one site to six sites, and now has
mobile applications across four operating systems, including:
Google® Android™; Apple® iPhone® and iTouch™; Palm Pre™ and Pixi™;
and BlackBerry® 4.6+ devices.
Expenses
Overall expenses increased by 23% from the year ended September
30, 2009 to the comparable period ended September 30, 2010. A
significant portion of the increase is attributable to material
increases in: (1) marketing expenses, as we hosted public concerts
and events in efforts to promote and generate awareness of our web
properties; and (2) professional fees, primarily related to
accounting and consulting fees associated with being a public
reporting entity.
Merchant fees incurred as a result of processing credit/debit
card transactions for subscription payments decreased $557, or 12%,
year over year, primarily due to the decline in subscription
revenues generated during the fiscal year ended September 30, 2010,
relative to the year ended September 30, 2009.
Music scanning fees are paid to a third-party audio
fingerprinting technology service that scans all music uploaded to
Datpiff.com for potential copyright infringement. Audio files
identified as containing copyrighted material are automatically
identified and prevented from being made available on our site. The
slight decrease in scanning software fees, during the year ended
September 30, 2010 compared to the year ended September 30, 2009,
is primarily attributable to credits received from Audible Magic
for slight problems with the software we experienced.
Server costs are directly related to the hosting of our website,
storage of content and archival of data, and are integral to our
business. We use third-party companies specializing in hosting and
data storage, which charge us based upon bandwidth and storage use.
In the comparable years ended September 30, 2010 and 2009, server
costs remained relatively stable, decreasing less than 1% year over
year, despite our experiencing a substantive increase in web
traffic over the same period.
Our management cautions that the variations in all expense
categories are not accurate indications of long-term trends and
ongoing expenses will continue to vary drastically from period to
period.
Income Taxes and Net Income
During the year ended September 30, 2010, we realized net income
of $746,523, after deducting provision for income taxes of
$185,765. In the comparable year ended September 30, 2009,
provision for income taxes were $0, which resulted in net income of
$223,805. Year-over-year, net income increased approximately 234%,
or $522,718, from the year ended September 30, 2009 to September
30, 2010. Our net profit margin during the year ended September 30,
2010 was 52%, compared to 36% in the year ago period ended
September 30, 2009.
Liquidity and Capital Resources
As of September 30, 2010, we had $381,494 of cash on hand
compared to a September 30, 2009 balance of $70,694 of cash on
hand. This increase in cash was generated organically, primarily
through operating activities. During the year ended September 30,
2010, we generated cash from operating activities of $797,038,
compared to generating cash from operating activities of $149,389
in the year ended September 30, 2009.
Cash utilized in investing activities was $325,517 for the year
ended September 30, 2010 compared to no cash used during the same
period in 2009. Cash used was due primarily to loans made to a
related party entity (majority shareholder of Idle Media, Inc. and
entity owned and controlled by an officer and director of Idle
Media, Inc.) to cover various operational expenditures of the
entity in the amount of $222,045. We also utilized cash for
software development and software purchases during the year ended
September 30, 2010, necessary for the pursuit of our business
objectives and growth strategy.
Cash used by financing activities was $160,721 for the year
ended September 30, 2010 compared to cash used of $78,695 in 2009.
The reduction in retained earnings of $166,824 during the year
ended September 30, 2010 and $78,695 in the year ended September
30, 2009 is attributable primarily to distributions made to Idle
Media, LLC (a majority shareholder of the Company and an entity
owned and controlled by an officer and director of Idle Media,
Inc.), which was the sole equity member of DatPiff, LLC prior to
the acquisition by us of DatPiff, LLC.
Management's Growth Strategy
Management continues to focus on the following initiatives to
expand operations over the next fiscal year:
- Pursue Strategic Partnerships;
- Host Additional Live Concert Series Events;
- Remain Innovative by Investing in New Services and
Technologies;
- Continue to expand through acquisitions of strategic
technologies or properties.
For more information on the Company's financial results, please
view the second quarter 2010 filing at: http://www.sec.gov
About Idle Media, Inc.
Idle Media, Inc. is a publicly traded new media technology
company that delivers cutting-edge content and online gaming
through its wholly-owned operating companies, including Dat Piff
(www.datpiff.com), a leading provider of online mix tapes and
user-generated content.
Learn more about Idle Media, Inc. at: http://www.idlemedia.com.
Follow Idle Media on Facebook and Twitter.
Information in this press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. Without limiting the foregoing, the words
"believes," "anticipates," "plans," "expects" and similar
expressions are intended to identify forward-looking statements.
The forward-looking statements may include our future operations,
financial condition and prospects and business strategies. These
forward-looking statements are subject to certain risks and
uncertainties that could cause our actual results to differ
materially. Factors that could cause or contribute to such
differences include, but are not limited to, those discussed in
this press release or in other documents including those filed with
the SEC. We undertake no obligation to revise or publicly release
the results of any revision to these forward-looking statements.
Given these risks and uncertainties, readers are cautioned not to
place undue reliance on such forward-looking statements.
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Contact: Investor Relations Email Contact Mark Moline
760-208-1894
Idle Media (CE) (USOTC:IDLM)
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