Business News

Medialink Reports Second Quarter 2008 Results

Friday 15. August 2008 - Medialink Worldwide Incorporated (NASDAQ:MDLK), a leading provider of diversified media services for professional communicators and marketers, today reported financial results for the second quarter ended June 30, 2008.

As announced earlier today, the Company’s board of directors has approved offers for the transfer of its ownership interest in Teletrax to Koninklijke Philips Electronics N.V. and for the sale of certain assets of its UK-based media communications services operation to World Television Group plc.

Revenues for the three months ended June 30, 2008, of $7.0 million decreased by 15.4% from revenues of $8.3 million in the comparable 2007 period. Revenues from media communications services decreased $1.9 million or 24.5%. Media communications services revenues in the Company’s US-based operation decreased $556,000 or 10.4% and media communications services revenues from the Company’s UK-based operation decreased $1.3 million or 59.1%. Revenues from Teletrax(R) digital video tracking services increased $568,000 or 75.0%.

The Company incurred an operating loss of $8.0 million and an operating loss before impairments and other charges of $2.1 million in the second quarter of 2008, as compared to an operating loss of $2.2 million in the comparable 2007 quarter. The operating loss in the second quarter of 2008 includes impairment charges of $2.4 million related to long-lived assets, of which approximately $1.8 million pertains to fixed assets used in the Company’s Teletrax(R) digital video tracking services business and approximately $600,000 pertains to fixed assets used in the Company’s UK-based media communications services business. The operating loss in the second quarter of 2008 also includes a goodwill impairment charge of $3.4 million related to the Company’s media communications services business.

For the three months ended June 30, 2008, the Company incurred a loss from continuing operations and a net loss of $8.1 million, or $1.25 per share. For the comparable period in 2007, the Company reported a loss from continuing operations and a net loss of $1.7 million, or $0.26 per share. The Company had cash and working capital totaling $8.3 million and $8.0 million, respectively, at June 30, 2008.

“Closing the transactions for Teletrax and our UK-based media communications services business will allow us to better focus our financial and management resources on our core US-based business,” said Laurence Moskowitz, President and Chief Executive Officer of Medialink. “We are continuing with our operational re-alignment and service integration efforts, but the current economic climate continues to pose significant challenges.”

Revenues for the six months ended June 30, 2008, of $14.1 million decreased by 13.3% from revenues of $16.3 million in the comparable 2007 period. Revenues from media communications services decreased $3.2 million or 21.3%. Media communications services revenues in the Company’s US-based operation decreased $1.0 million or 9.8% and media communications services revenues from the Company’s UK-based operation decreased $2.1 million or 50.8%. Revenues from Teletrax(R) digital video tracking services increased $1.0 million or 67.3%.

The Company incurred an operating loss of $10.5 million and an operating loss before impairments and other charges of $4.5 million in the first six months of 2008, as compared to an operating loss of $4.8 million in the comparable 2007 period. The operating loss in the second quarter of 2008 includes impairment charges of $2.4 million related to long-lived assets of the Company’s Teletrax(R) digital video tracking services business and UK-based media communications services business. The operating loss in the second quarter of 2008 also includes a goodwill impairment charge of $3.4 million related to the Company’s media communications services business and a charge of $119,000 related to consolidating office space in the Company’s New York headquarters.

For the six months ended June 30, 2008, the Company incurred a loss from continuing operations and a net loss of $10.6 million, or $1.65 per share. For the comparable period in 2007, the Company reported a net loss of $847,000, or $0.13 per share, which consisted of a loss from continuing operations of $3.5 million, or $0.54 per share, and income from discontinued operations of $2.6 million, or $0.41 per share, related to the gain on the sale of the Company’s U.S. Newswire division.