(RTTNews) - Tuesday, New Frontier Media Inc.
(NOOF) reported an increase in its earnings for the fourth quarter, helped by lower costs, despite lower revenues. However, both quarterly earnings and revenues missed the analysts' expectations.
Net income for the fourth quarter increased to $1.9 million, or $0.08 per share, from $1.7 million, or $0.07 per share, in the same year last quarter. Analysts polled by First Call/Thomson Financial expected earnings of $0.09 per share for the quarter.
Quarterly net sales fell to $12.6 million from $14.2 million a year ago, missing analysts' expectation of $14.6 million. Segment-wise, transactional TV revenue decreased 4% to $10.7 million, Film Production revenue fell to $1.4 million from $2.5 million last year and Direct-to-Consumer segment reported revenue of $0.5 million.
Cost of sales fell to $3.6 million from $4.4 million last year, while operating expenses decreased to $6.1 million from $6.8 million last year.
For the full year, net income was $8.7 million, or $0.36 per share, lower than $12.3 million, or $0.51 per share, a year ago. Annual net sales declined to $55.9 million from $63.3 million last year.
Further, the company said that it has indefinitely suspended its quarterly cash dividends in order to use its cash flows to selectively act on high-growth-market opportunities, including accretive acquisitions and new distribution opportunities in Europe and the Americas.
In addition, New Frontier said it has extended its stock repurchase program through June 2010, which was set to expire later this month.
New Frontier is currently trading at $3.92, down $1.30 or 24.90%.
For comments and feedback: contact editorial@rttnews.com