New Motion's 1Q 2007 revenues rose 83 per cent year-on-year to reach $5.6 million, though it found itself in the red to the tune of $372,000.
The US-based direct-to-consumer content provider, which owns the MobileSidewalk portal and the RingtoneChannel white label platform, also completed a reverse merger and secured $20 million in funding during the quarter.The last 12 months have also seen the ambitious company acquire the mobile messaging assets of Mobliss and establish a joint venture with Japan's Index to create an Asian-themed off-deck content portal in North America.
New Motion's 1Q 2007 net loss of $372,000 compares to a profit of $1.2 million in 1Q 2006. Its gross margin for the quarter was 87 per cent, a decrease from the 98 per cent reported in 1Q 2006, a change the company attributes to the inclusion of RingtoneChannel sales and the associated revenue share payments.
As of March 31, 2007, New Motion had approximately $18 million in cash.
New Motion CEO Burton Katz said: "We had strong revenue growth in the quarter, and expect to capitalise on the successful launch of Bid4Prizes and several other exciting new product initiatives in the pipeline. We are also pleased with the outcome of various corporate transactions during the first quarter, which included a reverse merger, a 300-to-1 reverse stock split, a corporate name change from MPLC to New Motion and a private placement investment in which we received gross proceeds of $20 million."
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