Tuesday, February 16, 2010

Twistbox & AMV Parent Mandalay Media Reports Quarterly Earnings

  • Cash continues to be a scarce resource, the company had $2.3mil in the bank as of Dec 31, 2009
  • Mandalay Media (MNDL) claims key contributors to falling revenue are "a very challenging European sales environment", the loss of a "significant on-deck advertising management agreement", "tighter regulatory restrictions" of off-deck adult content in the UK and "lower (games) revenues from U.S. carriers"
  • The company reduced the costs attributed to licensing IP by 50% in the last 9mos of 2009, compared with to the same period in 2008
  • The company has substantially cut development headcount/costs
  • The company continues to renegotiate payments and covenants associated with a ~$20k debt obligation it has with a small cap fund called ValueAct, with the latest twist being that payments are postponed until July 31st and the minimum cash covenant has been temporarily reduced to $1.6mil until March 10, 2010... and $4mil thereafter (until the next renegotiation)
  • Adult content continues to dominate revenues (see below), accounting for 88% in the last 9mos of the year and 89% in the last 3mos
Check out all my posts about Mandalay Media by clicking this link.

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