This excerpt taken from the RENT 8-K filed Nov 9, 2005.
Rentrak Fiscal 2006 Second
We recently announced the first wave of subscribers to our OnDemand Essentials Content Provider Site and believe this is a significant breakthrough for the company, Mr. Rosenbaum continued. The programming subscribers include eight Viacom properties (Paramount Studios, CBS, MTV, Nickelodeon, Noggin, The N, Comedy Central, VH1 and future on demand network offerings), as well as Expo TV, National Geographic Channel, NFL Network and Ripe TV. These twelve new subscribers join Music Choice, which became our first OnDemand Essentials customer over a year ago. We are in active discussions with additional MSOs to gain access to more data, and with several more leading content providers that we believe will become future customers. Together, these efforts are further establishing Rentrak as the leader in OnDemand media measurement.
Second quarter revenues in the companys Pay-Per-Transaction (PPT) segment totaled $17.4 million compared with $24.3 million in last years comparable period, reflecting the September 30, 2004 transition of a former major PPT customer to Direct Revenue Sharing (DRS) programs with studios. This customer represented approximately $8.3 million, or 34 percent, of last years fiscal second quarter revenues. A portion of that revenue decline was offset by increased PPT revenues from existing customers and the commencement of revenue-sharing agreements with new video retailer customers. The PPT segment generated operating income of approximately $3.1 million in the second quarter of fiscal 2006.
Second quarter revenues in the companys Advanced Media & Information (AMI) segment, currently comprised of the companys DRS, box office and home video services, totaled $2.4 million compared with $2.5 million in last years second fiscal quarter. Increased revenues from the Essentials services component of this segment helped to nearly offset a small decline in DRS revenues. The AMI segment generated operating income of approximately $1.0 million during the second quarter.
On-going development expenses and corporate overhead from the companys corporate services group generated an operating loss of approximately $2.6 million in the second quarter. When combined with the operating income generated by the PPT and AMI segments, the company reported consolidated operating income of $1.5 million.
Rosenbaum concluded, We expect revenues in the second half of fiscal 2006 to benefit from stronger movie titles relative to the past six months, both at the box office and home rental. Combined with the anticipated addition of new customers within both of our operating segments, we now expect fiscal 2006 revenues to meet or exceed the top end of our previous revenue guidance of between $80-85 million. We continue to expect quarterly profitability throughout fiscal 2006 and that our PPT segment and current offerings within the AMI segment will remain a steady source of revenue, earnings and cash flow.