Date: Thu, 18 Dec 1997 22:49:35 GMT Server: Apache/1.2.4 Last-Modified: Wed, 01 Oct 1997 18:39:35 GMT ETag: "42ca-2250-343298e7" Content-Length: 8784 Accept-Ranges: bytes Connection: close Content-Type: text/html
For more information:
Robert Schettino
bobtino@thomaspr.com
Susan Ice
susani@thomaspr.com
Thomas Associates 415-596-2700
Jeff Byrne
Jbyrne@dgsystems.com
Tom Shanahan
tsha1@dgsystems.com
DG Systems 415-276-6600
DG SYSTEMS REPORTS 83% REVENUE GAIN FOR SECOND QUARTER 1996
Strong advertiser demand and industry's largest digital distribution network continue to drive growth
SAN FRANCISCO, CALIFORNIA - July 17, 1996 - Digital Generation Systems, Inc.
(NASDAQ: DGIT), a leading provider of electronic distribution services to the
broadcast industry, today reported second quarter 1996 revenue of $2.4 million,
a gain of 83% over the second quarter of 1995.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
improved from a loss of $1,357,000 in the second quarter of 1995 to a loss of
$1,197,000 in the most recent quarter. EBITDA measures the company's cash flow
results, excluding the costs of deploying its audio distribution equipment at production
studios and broadcast stations. The company also reported a net loss per share of $0.18
in the quarter, compared with a net loss of $0.22 per share in the second quarter of 1995.
"We are encouraged by the continued strong growth of our audio
deliveries," said Henry Donaldson, DG Systems president and CEO. "Our revenue
growth reflects a significant growth in demand among our advertiser, agency, and
record company clients for digital delivery of their content to broadcasters."
Unit deliveries of audio commercials and first-release music singles rose to
187,000 in the second quarter, nearly doubling the 95,000 deliveries achieved in the
quarter a year ago. The company also expanded its online network of radio stations
to over 4,700, representing nearly a 60% increase in the past twelve months.
DG Systems also recently announced that over 250 television stations,
including 20 out of the top 40 major network stations, have agreed to install the
company's video receiving equipment and to receive video spot advertising over
the DG Systems network. The company to date has deployed its ADvantage
Digital Video Playback System (DVPS) at five television stations.
Founded in 1991, Digital Generation Systems is a leading provider of
electronic distribution services to the broadcast industry, linking hundreds
of advertisers, agencies, music companies, and syndicators with over 4,700
radio stations in the United States. The company offers a family of services
for quick and reliable delivery of CD-quality advertisements, new music
singles, and short-form programming to radio stations, along with associated
traffic instructions and supporting promotional material. DG Systems is
headquartered in San Francisco, with field offices in New York, Chicago, Los
Angeles, and Atlanta. DG Systems can be reached at 415-276-6600 or
www.dgsystems.com on the World Wide Web.
Description of Business: | Digital electronic distribution services to the broadcast industry linking advertisers, agencies, music companies and syndicators to over 4,700 radio stations. |
Corporate Address: | 875 Battery Street San Francisco, CA 94111 |
Telephone/Fax: | Phone: 415/276-6600 Fax: 415/276-6601 |
Trading Information: | NASDAQ - DGIT 11,515,131 shares outstanding 1996 Price Range: $8 1/8 - $13 1/4 Current Price (7/16): $8 1/4 |
Officers: | President & CEO: Henry W. Donaldson V.P. Finance & CFO: Thomas P. Shanahan |
Income Summary (in thousands, except for per share and other data) | 1995 | 1996 | Change |
Revenues | $1,289 | $2,359 | 83% |
Delivery Costs | $ 423 | $ 703 | |
Customer Operations | $ 735 | $ 977 | |
Sales & Marketing | $ 797 | $ 970 | |
Research & Development | $ 362 | $ 510 | |
General & Administrative | $ 329 | $ 396 | |
EBITDA | ($ 1,357) | ($ 1,197) | 12% |
Depreciation | $ 530 | $ 936 | |
Interest Income | $ 84 | $ 434 | |
Interest Expense | ($ 200) | ($ 388) | |
Net Loss | ($ 2,003) | ($ 2,087) | -4% |
Earnings per share | ($ 0.22) | ($ 0.18) | |
Weighted Average Shares | 9,133 | 11,482 | |
Financial Position | |||
Cash & Short-term Investments | $ 5,920 | $ 31,747 | |
Total Assets | $11,819 | $ 41,835 | |
Other Data | |||
Total Deliveries | 95,000 | 187,000 | 97% |
On-Line Stations | 3,000 | 4,700 | 57% |
| WHAT'S NEW | CORPORATE INFO | PRODUCTS & SERVICES | INVESTOR RELATIONS | EMPLOYMENT OPPORTUNITIES | HOME | |
Copyright © 1997 Digital Generation Systems and Foggy August All rights reserved.
All products or
services in this document are the marks, registered trademarks or registered
service marks of their respective owners.