Irvine, California – (The Hosting News) – August 7, 2006 – Integrated web hosting and audio and video streaming provider, VitalStream Holdings, Inc., will present to investors at the following financial conferences: August 8, 2006, 10:30am ET: Canaccord Adams 26th Annual Summer Seminar, at The Boston Marriott Long Wharf Hotel in Boston, MA; and August 10, 2006, 10:30am PT: RBC Technology Conference, at The Four Seasons Hotel in San Francisco, CA.
Recently, VitalStream reported record revenue of $6.2 million, up 57% year-over-year and 12% over the first quarter. The 2006 revenue guidance has been raised to $25 million – $27 million and the company projects positive net income for the fourth quarter of 2006. The Company’s GAAP results of operations for 2006 include the impact of expensing stock options resulting from the adoption of Statement of Financial Accounting Standards No. 123R.
Jack Waterman, VitalStream’s Chairman and CEO explained, ”VitalStream’s ability to deliver unique solutions that meet the unprecedented growth in the demand for delivery of audio and video content has resulted in record revenue during what is traditionally a slower growth quarter for online businesses. Our confidence in our business and outlook, especially as it relates to the online advertising opportunities now available to us as a result of the integration of the ad insertion and reporting technology we acquired from Eonstreams, enables us to raise our 2006 guidance. Not only do we expect demand for our content delivery solutions among content owners and enterprise customers to continue to accelerate, but we have begun to capitalize on the synergies inherent in providing both streaming and ad-insertion and delivery capabilities over the Internet.”
Revenues for the quarter ended June 30, 2006 were $6.2 million, an increase of approximately 57 percent over revenues of $4.0 million in the second quarter of 2005. Net loss for the quarter ended June 30, 2006 was ($1,403,000), or ($0.06) per share, which includes $313,000, or $0.01 per share, of non-cash share-based compensation charges. This compares to a net loss in the same period last year of ($528,000), or ($0.03) per share. Gross margins for the second quarter of 2006 were 50%. Adjusted EBITDA loss for the quarter ended June 30, 2006 was ($168,000), which includes approximately $300,000 in non-recurring charges related to the Company’s acquisition of Eonstreams on May 20, 2006 and to its application for the Nasdaq Capital Market listing that occurred during the quarter. It also includes approximately $100,000 in higher than expected costs related to Sarbanes-Oxley compliance. (See ”Use of Non-GAAP Financial Measures” below for definition of Adjusted EBITDA).
VitalStream’s customer base includes streamers of audio and video content, including Disney and Myspace.com. Notable new customers added during the second quarter of 2006 include Greyhound, the United Nations, Microsoft Prodigy, Buy.com, QuePasa, Home Depot and Gillette.
VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc., is a global provider of integrated content delivery services that endeavors to enable businesses to broadcast digital media and communications to worldwide audiences via the Internet. The company provides complete solutions, including video and audio streaming, advertising placement, delivery, reporting and analysis, live event broadcasting, media asset management, integrated web hosting and consulting services, designed to seamlessly integrate with leading streaming media technologies. VitalStream engineered its content delivery network certified for quality delivery in the United States, Europe and Asia.
To learn more about audiocasts of the presentations, please visit: www.vitalstream.com/investor/.
For more information about VitalStream, please visit: www.vitalstream.com.