NRWS Narrowstep Inc (CE)

Narrowstep(TM) Inc. (OTC Bulletin Board: NRWS), the TV on the Internet Company, announced its financial results for the fiscal year ended February 28, 2008. Narrowcasting revenue for fiscal year ended February 29, 2008 increased $1,190,000 or 25% over the prior year, however, total revenue for the year declined by 3% compared to $6,008,835 fiscal year ended February 28, 2007. The decrease in revenue was primarily driven by the reduction in production services, a business segment which the company exited during the fiscal year. The increase in narrowcasting revenue resulted primarily from the addition of new customers as well as additional contracts with existing customers. Comprehensive loss for year ended February 28, 2008 was $14,654,656, or $0.16 per share, versus a comprehensive loss of $6,987,339, or $0.15 per share, for the prior year. Contributing to the loss was the substantial investment made in the technology platform and upgrades to Narrowstep�s CDN. Louis Holder, Chief Technology Officer of Narrowstep commented on the earnings release, stating, �As we told you over the past year, we were making significant investment in our platform to provide more tools and functionality. Our technology now offers content owners a comprehensive set of tools to move, manage and monetize their online video. Additionally, the sales effort was re-focused on broadcasters, telcos and enterprise customers. As a result, our sales team has executed agreements for a number of exciting projects, (some which have already launched, some which will launch in the coming weeks), including Fox International�s Baby TV, Agnes Nixon�s All My Children (one of America�s longest running and most popular soap operas), Georgetown University, and La Liga de Futbol Profesional, the top professional football league in Spain, and ICEX, the Spanish Institute for Foreign Trade.� In the latter half of the 2008 fiscal year, the company released its Player 2.7, which integrated Microsoft Silverlight technology. The player, which takes advantage of the benefits of Windows Media technology, and is cross-browser and cross-platform compatible, can also be integrated with Atlas Ad Solutions, an enterprise ad-serving platform for customers who wish to automate their ad campaigns, or leverage third-party advertising networks. Narrowstep has previously announced that it entered into a definitive Merger Agreement with Onstream Media Corp, an online service provider of live and on-demand internet video, based in Pompano Beach, Florida. The combination of Narrowstep�s automated IPTV platform, Telvos�, and Onstream�s Digital Media Services Platform (DMSP) is expected to result in a single comprehensive platform with a unique ability to acquire, store, manage, process, protect, monetize and deliver, digital broadcast quality video to TV�s, computers, iPods, mobile phones, and other devices. Narrowstep expects to host an investor call in the coming weeks as the company works through the integration plan with Onstream Media. An announcement will be made accordingly. � NARROWSTEP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS � � � Year ended February 29, 2008 February 28, 2007 � $ � $ Revenue Narrowcasting and other 5,559,042 4,369,117 Production services 286,691 � � 1,639,718 � Total revenue 5,845,733 � � 6,008,835 � Costs and Expenses Operating 5,679,898 2,655,395 Selling, general and administrative 10,486,333 8,206,223 Research & development 2,738,259 1,088,723 Impairment charge on long-lived assets 861,858 � � 1,228,437 � Total operating expenses 19,766,348 � � 13,178,778 � Operating Loss (13,920,615 ) � (7,169,943 ) Interest income 185,646 132,042 Interest expense (883,031 ) (13,228 ) Currency exchange income (loss) (22,942 ) � (10,345 ) Net Loss (14,640,942 ) � (7,061,474 ) Foreign currency translation adjustment (13,714 ) � 74,135 � Comprehensive Loss (14,654,656 ) � (6,987,339 ) � Net Loss per Common Share - Basic and Diluted (0.16 ) (0.16 ) Weighted-Average Number of Common Shares Outstanding, Basic and Diluted 92,399,098 45,240,652 See Notes to Consolidated Financial Statements in the 10KSB filing � NARROWSTEP INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET � February 29, 2008 � $ Assets Current assets: Cash and cash equivalents 4,170,850 Accounts receivable, net of allowance for doubtful accounts of $767,470 923,850 Prepaid expenses and other current assets 411,110 � Total current assets 5,505,810 � Property and equipment, net 1,995,504 Software development costs, net of accumulated amortization of $559,119 682,060 Other assets 281,790 � Total Assets 8,465,164 � � Liabilities and Stockholders' Equity Liabilities Current liabilities: Unearned revenue 31,536 Accounts payable 735,776 Net obligations under capital leases, current 153,322 Accrued expenses and other current liabilities 814,214 � Total current liabilities 1,734,848 Net obligations under capital leases, long-term 143,408 � Total Liabilities 1,878,256 � Commitments and Contingencies � Stockholders' Equity Common stock, $0.000001 par value 450,000,000 shares authorized, 137,561,227 issued and outstanding 137 Additional paid-in capital 40,745,085 Accumulated deficit (34,196,475 ) Accumulated other comprehensive income 38,161 � Total Stockholders' Equity 6,586,908 � Total Liabilities and Stockholders' Equity 8,465,164 � See Notes to Consolidated Financial Statements in the 10KSB filing. About Narrowstep(TM) Inc. Narrowstep(TM) Inc. (OTC 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. 60+ 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 www.narrowstep.com or call 609-945-1760. 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.