YOU On Demand Reports Q1 2016 Results

NEW YORK, May 16, 2016 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company" or "YOD"), "), a premium content Video On Demand service provider in China evolving into a global, mobile-driven, consumer data management platform for both enterprises and consumers, announced today its Q1 2016 operating results for the period ended March 31, 2016 (a full copy of the Company's quarterly report on Form 10-Q is also being posted at www.sec.gov).   

NEW TIME: Conference Call: Chairman Bruno Wu, CEO Mingcheng Tao and CFO Mei Chen will host a conference call at 4:30 p.m. ET today.

To join the webcast, please visit the 'Webcasts and Events' section of the YOD corporate website, http://corporate.yod.com. Otherwise, the toll-free dial-in is: 877/407-3107; international callers should dial: 201/493-6796.

YOD Q1 2016 Operating Results

Revenue for Q1 2016, which comprised of pre- Sun Seven Stars, legacy model revenue, was $1,270,000, as compared to $1,028,000 for the same period in 2015, an increase of approximately $242,000, or 24%. This revenue increase was primarily attributed to our new distribution channels on Over-the-Top platforms, the aggregate of which comprised 51% of total revenues in Q1 2016.

Cost of revenues was $916,000 for Q1 2016, as compared to $1,043,000 for Q1 2015. The decrease of $127,000, or 12%, was primarily due to delays in expected revenue from specific content titles, which impacted our content license cost amortization pattern.

Gross profit for Q1 2016 was $354,000, as compared to gross loss of $15,000 during the same period in 2015. The increase in gross profit of approximately $369,000 was primarily due to increase in revenues from new and existing distribution channels.

Selling, general and administrative expenses ("SG&A") for Q1 2016, decreased approximately $283,000, to $2,165,000, as compared to $2,448,000 for the same period, 2015.

Salaries and personnel costs are the primary components of SG&A, accounting for 33% of SG&A expenses for Q1 2016.  During Q1 2016, salaries and personnel costs totaled $709,000, a decrease of $146,000, or 17%, as compared to $855,000 for the same period of 2015. The decrease was primarily due to staff reductions made as part of business transformation and re-alignment strategy, which will be a primary focus for the 2016 fiscal year.

Net loss was $2,274,000 for Q1 2016 compared to $2,919,000 in the comparable 2015 period. Basic and diluted loss per share for Q1 2016 was $0.09 cents as compared to a $0.12 cent loss per share in the same period in 2015. 

As of March 31, 2016, the Company had cash of approximately $12,035,000 and total current assets of approximately $15,619,000.

CEO Mingcheng Tao stated, "The evolution of the YOU On Demand 4-vertical business model is well underway with three promising and key business development partnerships announced over the past several weeks.  Those include business alignments with Frequency Networks, GoLive TV and Huawei.  With more business development deals to be announced in the immediate future, we expect new business revenue, meaning revenue from YOU On Demand's shift to a more global, mobile-driven, consumer data management platform for both enterprises and consumers, to begin ramping in Q3 2016.  YOU On Demand's goal is to be able to reach 600 million addressable and contracted users (under contract with our distribution partners) by the end of 2016.  In the meantime, YOU On Demand continues to streamline its operations as part of its business transformation and re-alignment strategy and that can be most clearly seen in the continued reduction in our operating expenses, which began last year."

About YOU On Demand Holdings, Inc. (http://corporate.yod.com)

YOU On Demand (NASDAQ: YOD) is leveraging and optimizing its current operations as a premium content Video On Demand service provider in China by evolving into a global, B2B2C, mobile-driven, consumer data management platform for both enterprises and consumers.  By establishing the world's premier multimedia, social networking and e-commerce-enabled network with the largest global effective connected user base, YOU On Demand, through this expanded, cloud-based, ecosystem of connected screens combined with strong partnerships with leading global providers, will be capable of delivering a vast array of YOD–branded products and services to enterprise customers and end-use consumers - anytime and anywhere, across multiple platforms and devices. 

YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal and Twentieth Century Fox Television Distribution, Miramax, as well as a broad selection of the best content from Chinese filmmakers.  In addition, the Company has governmental partnerships and licenses as well as numerous JV partnerships and strategic cooperation agreements with an array of distribution and content partners in the global new media space. YOU On Demand is headquartered in both New York, NY and Beijing, China.

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

CONTACT: Jason FinkelsteinYOU On Demand 212-206-1216[email protected]  @youondemand 

 

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SOURCE YOU On Demand Holdings, Inc.