LONDON and NEW YORK, May 31 /PRNewswire-FirstCall/ --
Narrowstep(TM) Inc. (OTC:NRWS) (BULLETIN BOARD: NRWS) , the TV on
the Internet Company, announced its financial results for the
fiscal year ended February 28, 2007. Revenue for the year was a
record $6,008,835, an increase of 122% compared to $2,706,262 for
fiscal year ended February 28, 2006. The increase in revenue was
primarily driven by an increase in customers. Net loss for year
ended February 28, 2007 was $7,061,474, or a loss of $0.16 per
common share, versus a net loss of $4,289,777, or a loss of $0.13
per common share, for the prior year. David C. McCourt, Chairman
and interim CEO of Narrowstep, commented on the earnings release,
saying, "This was a great year for Narrowstep. Although we spent
more time than expected cleaning up old issues, we still grew
revenue by 122%, and took out over 30% of non-sales SG&A
headcount and increased the sales force by over 85%. Going forward,
Narrowstep should maintain its position as the premier choice for a
company looking to monetize its content online." Narrowstep expects
to attain profitability by streamlining existing costs, growing
revenue and investing in technology. Management believes that these
efforts will allow the company to continue to provide what they
believe is the best opportunity for customers to monetize their
content, while offering a superior end-viewer experience.
Commenting on the growth of the business, David McCourt said, "We
are continuing to build a world-class team experienced in scaling
operations. We will continue to execute on our vision to provide
the most flexible service offering to content owners for monetizing
their assets." Narrowstep management will host a conference call to
discuss the results on Friday, June 1, 2007 at 11:00AM EDT, and it
will be broadcast live over the Internet. Those interested in
listening to the live webcast may do so by going to the Company's
website at http://www.narrowstep.com/ or to http://www.vcall.com/.
Web participants are encouraged to go to either website at least 15
minutes prior to the start of the call to register, download, and
install any necessary audio software. The audio and online archives
will be available shortly after the conclusion of the call and
continue to be available for seven days. NARROWSTEP INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS Year Ended February 28, 2007 2006 $ $ Revenue
Narrowcasting and other 4,369,117 1,499,633 Production services
1,639,718 1,206,629 Total revenue 6,008,835 2,706,262 Costs and
Expenses Operating 2,655,395 1,804,879 Selling, general and
administrative 8,206,223 4,779,764 Research & development
1,088,723 390,606 Impairment charge on long-lived assets 1,228,437
- Total operating expenses 13,178,778 6,975,249 Operating Loss
(7,169,943) (4,268,987) Other income (expense), net 118,814
(14,641) Currency exchange income (loss) (10,345) (6,149) Net Loss
(7,061,474) (4,289,777) Foreign currency translation adjustment
74,135 (36,669) Comprehensive Loss (6,987,339) (4,326,446) Net Loss
per Common Share - Basic and Diluted (0.16) (0.13) Weighted-Average
Number of Shares Outstanding, Basic and Diluted 45,240,652
32,190,594 See Notes to Consolidated Financial Statements.
NARROWSTEP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET
February 28, 2007 $ Assets Current assets: Cash and cash
equivalents 466,870 Accounts receivable, net of allowance for
doubtful accounts of $940,534 1,403,779 Prepaid expenses and other
current assets 332,192 Total current assets 2,202,841 Property and
equipment, net 1,234,557 Software development costs, net 149,080
Total Assets 3,586,478 Liabilities and Stockholders' Equity
Liabilities Current liabilities: Unearned revenue 384,295 Accounts
payable 960,580 Net obligations under capital leases, current
88,110 Accrued expenses and other current liabilities 977,948 Total
current liabilities 2,410,933 Net obligations under capital leases
- long-term 135,470 Total Liabilities 2,546,403 Commitments and
Contingencies Stockholders' Equity Common stock, $0.000001 par
value 450,000,000 shares authorized, 45,348,974 issued and
outstanding 45 Additional paid-in capital 20,543,688 Accumulated
deficit (19,555,533) Accumulated other comprehensive income (loss)
51,875 Total Stockholders' Equity 1,040,075 Total Liabilities and
Stockholders' Equity 3,586,478 See Notes to Consolidated Financial
Statements. About Narrowstep(TM) Inc. Narrowstep(TM) Inc.
(OTC:NRWS) (BULLETIN BOARD: NRWS) , the TV on the Internet Company,
is a leading global provider of broadband television services.
Narrowstep's proprietary technologies and customer-focused services
enable TV channels to be delivered over the Internet. 100+
companies worldwide have chosen Narrowstep because it offers the
most television-like and true community building broadband
experience. The Company's telvOS(TM) (Television Operating
System(TM)) and nBed(TM) technologies enable the most comprehensive
delivery of video to mobile, wireless, Internet, broadband,
video-over-IP and entirely new IP-delivered broadcast services. For
more information, visit http://www.narrowstep.com/ or call
212-404-1400. Forward-looking Statement Certain statements in this
news release constitute 'forward-looking statements' within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known or unknown risks,
including those detailed in the Company's filings with the
Securities and Exchange Commission, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company, or industry results, to be materially different from
any future results, performance or achievements expressed or
implied by such forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. DATASOURCE: Narrowstep(TM)
Inc. CONTACT: Investors, Jesse Deal of Allen & Caron,
+1-212-691-8087, Web site: http://www.narrowstep.com/
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