NeuLion Reports $39.7M in Total Revenue

NeuLion, Inc.has announced financial results for the three months and year ended December 31, 2011 (all amounts are in U.S. dollars). Revenue grew to $39.7 million for the year ended December 31, 2011 primarily due to strong organic growth.

For the year ended December 31, 2011:

-- Revenue increased by $6.5 million, or 20%, as compared to a year ago. -- Non-GAAP Adjusted EBITDA Loss (as defined below) improved by $4.1 million, or 37%, as compared to a year ago, and Consolidated Net Loss improved by $2.8 million, or 16%, as compared to a year ago.

For the three months ended December 31, 2011:

-- Revenue decreased by $0.4 million, or 4%, as compared to the same period a year ago. -- Non-GAAP Adjusted EBITDA Loss (as defined below) improved by $0.2 million, or 18%, as compared to the same period a year ago, and Consolidated Net Loss improved by $0.1 million, or 3%, as compared to the same period a year ago.

"Management is pleased with the year-over-year improvement in the company's revenue," said Nancy Li, Chief Executive Officer of NeuLion, Inc. "We continue to build on our unique strengths in the new and evolving IPTV marketplace. Our customers' recognition of NeuLion's technological leadership in this rapidly expanding field has put NeuLion at the forefront of online video delivery. We fully expect our customers' requirements, and NeuLion's role, to continue to grow as the adoption of TV over the Internet accelerates."

Fourth Quarter Operational Highlights: Professional Sports

Interactive video experience delivering live and on-demand video

-- Developed, for Maple Leaf Sports and Entertainment Ltd., the Real Sports Xbox app (NeuLion's first application specifically for the Xbox marketplace) to deliver live and on-demand games for Leafs TV, NBA TV Canada and GOL TV Canada. -- Unveiled all-access UFC app for Android that allows fans to watch live pay-per-view events, weigh-ins and press conferences and to score the fight in real-time.

College Sports Athletic portal and online destination for fans

-- Designed and delivered the first live streaming iPad app for Texas A&M Athletics and launched five similar apps shortly thereafter for Duke University, Louisiana State University, University of Oregon, Iowa State University and Mississippi State University. -- Upgraded James Madison University and Dartmouth College to our HD Adaptive Streaming video player for the Fall Sports season.

TV Everywhere Multi-device content delivery

-- Announced partnership with SENSIO to deliver video-on-demand content in 3D.

Financial Results for the Year Ended December 30, 2011:

Revenue was $39.7 million, as compared to $33.2 million for the year ended December 31, 2010, marking a year-over-year increase of $6.5 million, or 20%.

Cost of revenue, exclusive of depreciation and amortization, was $16.4 million (41% of revenue), as compared to $14.4 million (43% of revenue) for the year ended December 31, 2010, marking a year-over-year improvement of 2%.

Consolidated net loss was $14.4 million, which includes $7.5 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA loss of $6.9 million, as compared to a consolidated net loss of $17.2 million, which includes $6.2 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA loss of $11.0 million for the year ended December 31, 2010, marking a year-over-year improvement in non-GAAP Adjusted EBITDA loss of $4.1 million, or 37%. Non-cash and/or non-operating charges consist of depreciation and amortization, stock-based compensation, unrealized gain on derivative, loss on dissolution of majority-owned subsidiary, investment income, deferred income taxes and foreign exchange gain/loss.

Financial Results for the Three Months Ended December 31, 2011:

Revenue was $10.7 million, as compared to $11.1 million for the three months ended December 31, 2010, marking a period-over-period decrease of $0.4 million, or 4%.

Cost of revenue, exclusive of depreciation and amortization, was $4.5 million (42% of revenue), as compared to $4.6 million (41% of revenue) for the three months ended December 31, 2010, marking a period-over-period change of 1%.

Consolidated net loss was $2.9 million, which includes $2.0 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA loss of $0.9 million, as compared to a consolidated net loss of $3.0 million, which includes $1.9 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA loss of $1.1 million for the three months ended December 31, 2010, marking a period-over-period improvement in non-GAAP Adjusted EBITDA loss of $0.2 million, or 18%.

As of December 31, 2011 we had $12.3 million in cash and cash equivalents.