SEATTLE, Sept. 1, 2005 (PRIMEZONE) -- Limelight Media Group, Inc. (OTCBB:LMMGE) today announced its results for the second quarter ended June 30, 2005. As previously announced on June 30, 2005, Limelight acquired all of the outstanding capital stock of Impart, Inc. For financial reporting purposes, Impart was considered the acquirer in the transaction and thus, Limelight's historical financial statements and information are those of Impart, Inc.
Limelight's revenues for the second quarter ended June 30, 2005 were $1,016,996 compared to $686,751 in the second quarter of 2004, an increase of 48.1%. Net income in the quarter was $26,792 compared to a net loss of $175,693 in the second quarter of 2004. Revenues for the six months ended June 30, 2005 were $1,907,328 compared to $1,563,269 in the comparable six months of 2004, an increase of 22%. The net loss for the six months ended June 30, 2005 was $160,792, compared to a net loss of $299,188 in the comparable six months of 2004.
The company's revenues are derived primarily from a combination of (i) fees received for managing customers' digital signage networks that the company sells and/or operates, (ii) the sale price of hardware components and software products used in the company's proprietary digital signage network and (iii) the fees received in connection with the delivery of consulting, maintenance and other digital signage services to customers. The increase in the company's revenues for the three months ended June 30, 2005 as compared to the comparable period in 2004 was primarily due to the addition of two new customers in the fourth quarter of 2004.
Furthermore, the company believes that advertisers (brands) such as financial institutions, grocery stores, retail mall operators and other businesses are aggressively seeking new and more compelling advertising outlets than traditional advertising outlets such as network television, radio and print advertising. As a result many advertisers have recently increased their awareness and acceptance of the emerging "out of home" media and specifically, the digital signage segment. Contributing to this acceptance, in the company's opinion, is the significant reduction in the cost of housing a digital signage network due to recent price declines in Plasma and LCD screens and the proliferation of broadband, DSL (digital subscriber line) and satellite technologies that can more cost-effectively deliver media content that requires larger bandwidth such as full-motion video. Provided that the company can effectively implement its business strategy to meet the growing demand for digital signage services, it anticipates greater revenues in future periods from each of its revenue models.
David V. Lott, CEO of Limelight Media Group, Inc. stated, "We are very proud of these results which demonstrate a complete financial turnaround for Limelight corporate, as the parent entity of Impart." Lott added, "Our acquisition of Impart has enabled a winning trifecta that includes a significantly strengthened balance sheet plus better cash flow in addition to significant and positive revenue that we believe is the fuel we need to drive continued and consistent revenue growth and market expansion moving forward."
Joe F. Martinez, CEO of Impart and Chairman and CFO of Limelight Media Group, Inc., added, "As the second quarter numbers demonstrate, the Impart acquisition is bringing a revitalization to Limelight by creating a sustainable, blended revenue model that creates a solid foundation to grow the ad-driven component of our business." Martinez continued, "As a result of the Impart acquisition Limelight will be in a significantly stronger position to acquire companies that are financially accretive and offer a strategic and cultural fit, which will be very important to gaining scale in this highly fragmented industry."
Limelight and Impart are specifically focused on the evolving out of home digital media market, which has seen demonstrated success with emerging companies (in China and other locations) that have recently undergone an IPO or have been funded by first tier venture capital firms, demonstrating the significant interest and opportunity in the "Out of Home Digital Media" sector.
This release includes projections of future results and "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although the respective managements of IMPART and Limelight believe that the expectations reflected in these forward-looking statements are reasonable, they can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the expectations are disclosed in this release, including, without limitation, in conjunction with those forward-looking statements contained in this release.