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RMG Networks Reports Third Quarter 2014 Results(Marketwire Via Acquire Media NewsEdge) DALLAS, TX -- (Marketwired) -- 11/06/14 -- RMG Networks Holding Corporation (NASDAQ: RMGN) Third Quarter Highlights Adjusted gross margin(1) increased to 44.9% compared to 43.5% in the third quarter of 2013 Cost rationalization underway to establish platform for launching long-term growth and profitability initiatives including new product development and sales organization revitalization Total cash operating expenses(2) reduced by 16.6% sequentially Adjusted EBITDA loss of $2.2 million(3) represented an $0.6 million improvement from the second quarter 2014 RMG Networks Holding Corporation (NASDAQ: RMGN), or RMG Networks, a leading provider of technology-driven visual communications solutions, today announced its financial results for the third quarter ended September 30, 2014. RMG Networks helps brands and organizations communicate more effectively using location-based video networks. The company builds enterprise video networks that empower organizations to visualize critical data to better run their business. The company also connects brands with target audiences using video advertising networks comprised of over 200,000 display screens, reaching over 100 million consumers each month. Robert Michelson, Chief Executive Officer, commented, "In the three months I've served as CEO of RMG Networks, my confidence in the vision for our company has been reaffirmed as our team works to bolster our financial discipline, establish a sales strategy for accelerated growth, deliver a robust road-map driving product innovation and ultimately drive profitability. Our third quarter results convey the quick actions we have taken to stringently scrutinize our cash operating expenses to extract the excess and instill discipline and accountability throughout the organization. Simultaneously, we are methodically assessing our portfolio of products and the sales processes utilized to successfully propose, sell and install our solutions into customers' environments. With a reset cost base, RMG Networks can now focus on these near and longer-term growth initiatives to expand the company's position as an industry-leading innovator of visual communication solutions." "While cost cutting is the prudent action to take, we must focus on growth," continued Mr. Michelson. "After looking closely at our sales processes, organizational structure and post-sale customer care, we identified enhancements that we expect will facilitate a high-achieving sales effort. We have already taken steps to better support our sales organizations, and we are deploying initiatives to improve processes, increase accountability, and improve global collaboration. Simultaneously, we are making strides in reinforcing RMG Networks' standing as an innovator, with a disciplined, customer-driven product development effort. With this in mind, we have identified new verticals where we are confident our demonstrated ability to drive a deep return on investment for customers who deploy our solutions will enable us to harvest opportunities similar to those we have found in our existing areas of expertise. We plan to aggressively pursue these new verticals in the coming quarters." Third Quarter Financial Review Adjusted Results(4,5) Third Quarter Revenue. Total adjusted revenues in the third quarter of 2014 were $14.1 million, a sequential decline of 13.9% from $16.4 million in the second quarter of 2014. Adjusted Enterprise revenue of $10.6 million decreased 8.5% from $11.5 million in the second quarter of 2014, driven by a decline in product sales and professional services which was partially offset by an increase in maintenance and content services. Gross margin declined to 52.7% from 58.9% in the second quarter of 2014, due to a large, high-margin software sale occurring in the second quarter of 2014. Media revenue of $3.6 million decreased 26.7% from $4.9 million in the second quarter of 2014, due to poor sales execution. Gross margin improved to 21.9% from 13.8% in the second quarter of 2014, due to an improved sales mix. On a year over year basis, total adjusted revenues in the third quarter of 2014 represented a decrease of 14.1% from $16.4 million of adjusted revenues in the third quarter of 2013. Enterprise revenue decreased 13.1% from $12.1 million in the third quarter of 2013, due to a decrease in product sales and professional services. Enterprise gross margin was 52.7% compared to 51.0% in the third quarter of 2013, increasing year over year due to an improved sales mix. Media revenue decreased 17.1% from $4.3 million in the third quarter of 2013, primarily due to poor sales execution. Media gross margin was 21.9% compared to 22.2% in the third quarter of 2013. "While we are not satisfied with our Q3 results, a number of deals we expected to close in the quarter shifted into future periods reflecting the sometimes long sales cycle in our Enterprise business. We have not lost this business, but the slippage of these opportunities caused revenues in the third quarter to fall below expectations. We are encouraged by the improvements we have seen in our pipeline and our ability to streamline the business, and we have identified steps we can take to reignite our growth engine," continued Mr. Michelson. "I am also extremely pleased that with these collective efforts we significantly narrowed our Adjusted EBITDA loss over the second quarter." Third Quarter Adjusted EBITDA(4). Adjusted EBITDA loss was $2.2 million, improving from a loss of $2.8 million in the second quarter of 2014, due primarily to lower cash operating expenses(6). On a year over year basis, adjusted EBITDA decreased in the third quarter from an adjusted EBITDA loss of $1.4 million in the third quarter of 2013, due to the reasons described above. During the third quarter of 2014, the company recorded the following non-recurring items: A reversal (non-cash benefit) of $2.8 million related to a previously booked loss accrual charge on a long-term contract, resulting from revised estimates for the performance of the contract over its term. Impairment charges of $7.1 million and $10.1 million related to goodwill and intangible assets, respectively, of the Media Unit. Reported Results Third Quarter. Total reported revenue for the quarter ended September 30, 2014 was $13.9 compared to total reported revenue of $15.6 million for the same quarter last year. Operating loss for the quarter ended September 30, 2014 was $18.5 million compared to an operating loss of $5.3 million for the same quarter last year. Business Outlook "If we are able to fully execute on the strategies we have outlined above, we believe the results delivered in the third quarter of 2014 will be an anomaly in our ongoing financial performance," continued Mr. Michelson. "We have in front of us numerous and specific opportunities to deliver growth and we are committed to executing on them. However, with many of these initiatives just beginning, the visibility into the exact timing of their impact is still not clear, and in that environment, we believe it would be inappropriate to provide specific, near-term guidance. As we execute on our planned product development and sales enhancement programs, we remain strongly convinced in our prospects for revenue growth, for developing material operating leverage and for producing significant adjusted EBITDA over the intermediate- and long-term. Growing to generate EBITDA and become self-sustaining is our key focus." Conference Call Management will host a conference call to discuss these results today, Thursday, November 6, 2014 at 9 a.m. ET. To access the call, please dial 866-515-2909 (toll free) or 617-399-5123 and passcode # 69305154. The conference call will also be broadcast live over the Internet with an accompanying slide presentation, which can be accessed via the Investor Relations section of RMG Networks' web site at http://ir.rmgnetworks.com/phoenix.zhtml?c=251935&p=irol-calendar. All participants should call or access the website approximately 10 minutes before the conference begins. The webcast and slide presentation will be available for replay for 90 days. A telephonic replay of this conference call will also be available by dialing 888-286-8010 (toll free) or 617-801-6888 (passcode: 93295231) from 11 a.m. ET on Thursday, November 6, 2014 until midnight ET on November 10, 2014. About RMG Networks RMG Networks (NASDAQ: RMGN) helps brands and organizations communicate more effectively using location-based video networks. The company connects brands with target audiences using video advertising networks comprised of over 200,000 display screens, reaching over 100 million consumers each month. The company also builds enterprise video networks that empower organizations to visualize critical data to better run their business. RMG Networks works with over 70% of the Fortune 100. The company is headquartered in Dallas, Texas, with offices in the United States, United Kingdom, China, India, Singapore and the UAE. For more information, visit http://www.rmgnetworks.com. About Non-GAAP Financial Measures This release includes certain non-GAAP financial measures as defined under SEC regulations, including Adjusted Revenue, Adjusted Gross Margin, Cash Operating Expenses and Adjusted EBITDA. In evaluating its business, RMG Networks considers and uses Adjusted Revenue, Adjusted Gross Margin, Cash Operating Expenses and Adjusted EBITDA as supplemental measures of its operating performance, and believes that many of the company's investors use these non-GAAP measures to monitor the company's performance. These measures should not be considered as a substitute for the most directly comparable GAAP measures and should not be used in isolation, but in conjunction with these GAAP measures. Definitions and reconciliations between non-GAAP measures and relevant GAAP measures are set forth in the tables at the end of this press release. Cautionary Note Regarding Forward Looking Statements This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding guidance relating to future financial performance, expected operating results, such as revenue growth, our ability to achieve profitability, our position within the markets that we serve, efforts to grow our business and the impact of litigation. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the company's ability to raise additional capital on satisfactory terms, or at all; success in retaining or recruiting, or changes required in, its management and other key personnel; the limited liquidity and trading volume of the company's securities; Reach Media Group's ("RMG") history of incurring significant net losses and limited operating history; the competitive environment in the advertising markets in which the company operates; the risk that the anticipated benefits of the combination of RMG or Symon Holdings Corporation, or of other acquisitions that the company may complete, may not be fully realized; the risk that any projections, including earnings, revenues, margins or any other financial items are not realized; changing legislation and regulatory environments; business development activities, including the company's ability to contract with, and retain, customers on attractive terms; the general volatility of the market price of the company's common stock; risks and costs associated with regulation of corporate governance and disclosure standards (including pursuant to Section 404 of the Sarbanes-Oxley Act); and general economic conditions. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. (Financial tables appear below) RMG Networks Holding Corporation Consolidated Balance Sheets September 30, 2014 and December 31, 2013 September 30, December 31, 2014 2013 --------------- ------------- (Unaudited) Assets Current assets: Cash and cash equivalents $ 5,045,819 $ 8,235,566 Accounts receivable, net 11,565,009 22,731,678 Inventory, net 2,919,876 4,633,213 Deferred tax assets 18,884 63,617 Other current assets 2,113,491 2,224,547 --------------- ------------- Total current assets 21,663,079 37,888,621 Property and equipment, net 4,941,016 3,548,985 Intangible assets, net 18,330,125 38,782,000 Goodwill 20,798,027 28,642,398 Loan origination fees 800,243 971,726 Other assets 181,198 496,879 --------------- ------------- Total assets $ 66,713,688 $ 110,330,609 =============== ============= Liabilities and Stockholders' equity Current liabilities: Accounts payable $ 3,369,494 $ 6,606,200 Revenue share liabilities 3,747,139 3,998,794 Accrued liabilities 3,789,117 4,510,848 Loss on long-term contract 2,204,424 - Deferred revenue 7,714,130 10,074,420 --------------- ------------- Total current liabilities 20,824,304 25,190,262 Notes payable - non current 12,000,000 8,000,000 Warrant liability 1,929,743 4,573,123 Deferred revenue - non current 1,683,881 990,989 Deferred tax liabilities 6,173,925 6,430,853 Loss on long-term contract - non current 902,220 - Other 986,872 392,558 --------------- ------------- Total liabilities 44,500,945 45,577,785 --------------- ------------- Commitments and Contingencies Stockholders' equity: Common stock, $.0001 par value, (250,000,000 shares authorized; 12,467,756 and 11,920,583 shares issued, 12,167,756 and 11,920,583 shares outstanding, at September 30, 2014 and December 31, 2013, respectively) 1,247 1,192 Additional paid-in capital 81,512,431 77,452,317 Accumulated comprehensive income 201,414 299,618 Retained earnings (accumulated deficit) (59,022,349) (13,000,303) Treasury stock (300,000 shares at September 30, 2014) (480,000) - --------------- ------------- Total stockholders' equity 22,212,743 64,752,824 --------------- ------------- Total liabilities and stockholders' equity $ 66,713,688 $ 110,330,609 =============== ============= RMG Networks Holding Corporation Consolidated Statements of Comprehensive Income (Loss) For The Nine Months Ended September 30, 2014 and the Period April 20 through September 30, 2013 Successor Successor Predecessor Company Company Company ------------- ------------- ------------- April 20, February 1, Nine Months 2013 2013 Ended Through Through September 30, September 30, April 19, 2014 2013 2013 ------------- ------------- ------------- (Unaudited) (Unaudited) Revenue: Advertising $ 10,989,894 $ 9,565,274 $ - Products 9,976,720 10,529,906 2,239,236 Maintenance and content services 12,044,494 5,805,021 3,594,520 Professional services 6,053,823 4,732,649 1,323,559 ------------- ------------- ------------- Total Revenue 39,064,931 30,632,850 7,157,315 Cost of Revenue: Advertising 8,581,701 6,707,899 - Products 7,411,693 6,990,780 1,498,135 Maintenance and content services 2,210,373 1,445,773 611,692 Professional services 4,393,966 2,542,140 861,640 ------------- ------------- ------------- Cost of Revenue - products and services 22,597,733 17,686,592 2,971,467 Loss on long-term contract 1,373,371 - - ------------- ------------- ------------- Total Cost of Revenue 23,971,104 17,686,592 2,971,467 ------------- ------------- ------------- Gross Profit 15,093,827 12,946,258 4,185,848 ------------- ------------- ------------- Operating expenses: Sales and marketing 14,776,478 7,675,656 1,729,871 General and administrative 13,617,293 6,504,162 1,739,348 Research and development 3,114,219 1,711,010 512,985 Acquisition expenses 378,193 1,995,250 3,143,251 Depreciation and amortization 5,398,978 2,971,620 140,293 Impairment of intangible assets and goodwill 24,421,849 - - ------------- ------------- ------------- Total operating expenses 61,707,010 20,857,698 7,265,748 ------------- ------------- ------------- Operating income (loss) (46,613,183) (7,911,440) (3,079,900) Other Income (Expense): Warrant liability income (expense) 182,889 (1,829,333) - Interest expense and other - net (1,194,967) (1,695,988) (14,553) ------------- ------------- ------------- Income (loss) before income taxes (47,625,261) (11,436,761) (3,094,453) Income tax expense (benefit) (1,603,215) - (540,897) ------------- ------------- ------------- Net income (loss) (46,022,046) (11,436,761) (2,553,556) Other comprehensive income (loss) - Foreign currency translation adjustments (98,204) 191,818 (121,144) ------------- ------------- ------------- Total comprehensive income (Loss) $ (46,120,250) $ (11,244,943) $ (2,674,700) ============= ============= ============= Net income(loss) per share: Basic and dilutive net income (loss) per share of Common Stock $ (3.79) $ (1.46) $ - ============= ============= ============= Basic and dilutive net income (loss) per share of Class L Common Stock $ - $ - $ (2.55) ============= ============= ============= Basic and dilutive net income (loss) per share of Class A Non-Voting Common Stock $ - $ - $ - ============= ============= ============= Weighted average shares used in computing basic and dilutive net income (loss) per share of Common Stock 12,151,630 7,824,059 - ============= ============= ============= Weighted average shares used in computing basic and dilutive net income (loss) per share of Class L Common Stock - - 1,000,000 ============= ============= ============= Weighted average shares used in computing basic and dilutive net income (loss) per share of Class A Non- Voting Common Stock - - 68,889 ============= ============= ============= RMG Networks Holding Corporation Consolidated Statements of Comprehensive Income (Loss) For The Three Months Ended September 30, 2014 and 2013 Successor Successor Company Company --------------- --------------- Three Months Three Months Ended Ended September 30, September 30, 2014 2013 --------------- --------------- (Unaudited) (Unaudited) Revenue: Advertising $ 3,572,657 $ 4,308,717 Products 4,387,418 5,460,746 Maintenance and content services 4,140,207 3,232,466 Professional services 1,813,134 2,580,894 --------------- --------------- Total Revenue 13,913,416 15,582,823 Cost of Revenue: Advertising 2,791,791 3,352,016 Products 2,989,925 3,729,288 Maintenance and content services 694,289 873,340 Professional services 1,308,998 1,344,836 --------------- --------------- Cost of Revenue - products and services 7,785,003 9,299,480 Adjustment of loss on long-term contract (2,756,733) - --------------- --------------- Total Cost of Revenue 5,028,270 9,299,480 --------------- --------------- Gross Profit 8,885,146 6,283,343 --------------- --------------- Operating expenses: Sales and marketing 4,140,374 4,324,370 General and administrative 3,126,949 3,888,646 Research and development 994,182 904,610 Acquisition expenses 378,193 789,653 Depreciation and amortization 1,598,160 1,679,344 Impairment of intangible assets and goodwill 17,176,490 - --------------- --------------- Total operating expenses 27,414,348 11,586,623 --------------- --------------- Operating income (loss) (18,529,202) (5,303,280) Other Income (Expense): Warrant liability income (expense) 771,898 2,090,667 Interest expense and other - net (1,080,276) (949,671) --------------- --------------- Income (loss) before income taxes (18,837,580) (4,162,284) Income tax expense (benefit) (1,274,355) - --------------- --------------- Net income (loss) (17,563,225) (4,162,284) Other comprehensive income - Foreign currency translation adjustments (199,992) 178,661 --------------- --------------- Total comprehensive income (loss) $ (17,763,217) $ (3,983,623) =============== =============== Net income (loss) per share: Basic and diluted net income (loss) per share of Common Stock $ (1.45) $ (.46) =============== =============== Weighted average shares used in computing basic and diluted net income (loss) per share of Common Stock 12,132,973 9,028,083 =============== =============== RMG Networks Holding Corporation Consolidated Statements of Cash Flows For The Nine Months Ended September 30, 2014 and the Period April 20 through September 30, 2013 Successor Successor Predecessor Company Company Company ------------- ------------- ------------- April 20, February 1, Nine Months 2013 2013 Ended Through Through September 30, September 30, April 19, 2014 2013 2013 ------------- ------------- ------------- (Unaudited) (Unaudited) Cash flows from operating activities: Net income (loss) $ (46,022,046) $ (11,436,761) $ (2,553,556) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 5,398,978 2,971,620 140,293 Change in warrant liability (182,889) 1,829,333 - Impairment of intangible assets and goodwill 24,421,849 - - Stock-based compensation 1,483,214 557,641 - Non-cash treasury stock (480,000) - - Non-cash loan origination fees 171,483 249,650 - Non-cash consulting fees 384,750 80,000 - Non-cash directors' fees 116,464 - - Interest capitalized as debt - 135,000 - Deferred tax (benefit) (212,029) - (12,294) Changes in operating assets and liabilities: Accounts receivable 11,166,670 (2,608,668) 2,846,332 Inventory 1,713,337 (295,315) (488,722) Other current assets 31,056 (188,155) (154,529) Other assets, net 10,929 (34,994) 12,572 Accounts payable (3,236,706) (159,338) (2,978,808) Accrued liabilities 2,110,418 (1,435,808) (767,991) Deferred revenue (1,667,397) 378,732 (372,579) ------------- ------------- ------------- Net cash provided by (used in) operating activities (4,791,919) (9,957,063) (4,329,282) ------------- ------------- ------------- Cash flows from investing activities: Acquisition of Symon Holdings Corporation - (209,079) - Purchases of property and equipment (2,299,624) (775,055) (86,470) ------------- ------------- ------------- Net cash provided by (used in) investing activities (2,299,624) (984,134 (86,470) ------------- ------------- ------------- Cash flows from financing activities: Proceeds from debt 4,000,000 - - Proceeds from stock - 39,115,785 - Repayment of debt - (10,943,590) - ------------- ------------- ------------- Net cash provided by (used in) financing activities 4,000,000 28,172,195 - ------------- ------------- ------------- Effect of exchange rate changes on cash (98,204) 230,758 (121,144) Net increase (decrease) in cash and cash equivalents (3,189,747) 17,461,756 (4,536,896) Cash and cash equivalents, beginning of period 8,235,566 10,824,943 10,203,169 ------------- ------------- ------------- Cash and cash equivalents, end of period $ 5,045,819 $ 28,286,699 $ 5,666,273 ============= ============= ============= Supplemental disclosures of cash flow information: Cash paid during the year for interest $ 1,114,699 $ 1,247,465 $ 2,053 Cash paid during the year for income taxes $ 68,670 $ - $ 150,000 RMG Networks Holding Corporation Reconciliation of Gross Profit For The Three Months Ended September 30, 2014 Successor Company Three Months Ended Purchase September Price Loss on 30, 2014 Accounting Long-Term Adjusted (GAAP) Adjustment Contract (Non-GAAP) ----------- ----------- ----------- ----------- (Unaudited) Revenue: Advertising $ 3,572,657 $ - $ - $ 3,572,657 Product sales 4,387,418 - - 4,387,418 Maintenance and content services 4,140,207 209,913 - 4,350,120 Professional services 1,813,134 - - 1,813,134 ----------- ----------- ----------- ----------- Total Revenue 13,913,416 209,913 - 14,123,329 ----------- ----------- ----------- ----------- Cost of Revenues: Advertising 2,791,791 - - 2,791,791 Product sales 2,989,925 - - 2,989,925 Maintenance and content services 694,289 - - 694,289 Professional services 1,308,998 - - 1,308,998 Loss on long-term contract (2,756,733) - 2,756,733 - ----------- ----------- ----------- ----------- Total Cost of Revenue 5,028,270 - 2,756,733 7,785,003 ----------- ----------- ----------- ----------- Gross Profit $ 8,885,146 $ 209,913 $(2,756,733) $ 6,338,326 =========== =========== =========== =========== RMG Networks Holding Corporation Reconciliation of Gross Profit For The Three Months Ended September 30, 2013 Successor Company Three Months Ended Purchase September 30, Price 2013 Accounting Adjusted (GAAP) Adjustment (Non-GAAP) ------------- ------------- ------------- (Unaudited) Revenue: Advertising $ 4,308,717 $ - $ 4,308,717 Product sales 5,460,746 - 5,460,746 Maintenance and content services 3,232,466 862,640 4,095,106 Professional services 2,580,894 - 2,580,894 ------------- ------------- ------------- Total Revenue 15,582,823 862,640 16,445,463 ------------- ------------- ------------- Cost of Revenues: Advertising 3,352,016 - 3,352,016 Product sales 3,729,285 - 3,729,285 Maintenance and content services 873,350 - 873,350 Professional services 1,344,836 - 1,344,836 Loss on long-term contract - - - ------------- ------------- ------------- Total Cost of Revenue 9,299,487 - 9,299,487 ------------- ------------- ------------- Gross Profit $ 6,283,343 $ 862,640 $ 7,145,976 ============= ============= ============= RMG Networks Holding Corporation Reconciliation of Operating Income (Loss) to Adjusted EBITDA Third Quarter ---------------------------- 2014 2013 ------------- ------------- Operating income (loss) per Statements of Comprehensive Income $ (18,529,202) $ (5,303,280) Revenues that would have been recognized in the period had the balance in deferred revenue at the acquisition date not been required to be adjusted to market value at the acquisition date in accordance with GAAP purchase accounting guidelines 209,913 862,640 Depreciation and amortization 1,598,160 1,679,344 Acquisition expenses 378,193 789,653 Stock-based compensation (260,622) 557,634 Impairment of intangible assets and goodwill 17,176,490 - Loss on long-term contract (2,756,733) - ------------- ------------- Adjusted EBITDA $ (2,183,801) $ (1,414,009) ------------- ------------- (1) Q3 2014 & Q3 2013 GAAP gross margin was 63.9% and 40.3%, respectively. Please see the tables at the end of this press release for a reconciliation of GAAP results to adjusted results. (2) Cash operating expenses exclude depreciation & amortization, stock-based compensation and other one-time or non-recurring charges. (3) Q2 & Q3 2014 GAAP operating loss was $19.6 million and $18.5 million, respectively. Please see the tables at the end of this press release for a reconciliation of GAAP results to adjusted results. (4) Q2 & Q3 2014 GAAP consolidated revenue was $13.4 million and $13.9 million, respectively, and Q2 & Q3 2014 GAAP Enterprise revenue was $8.5 million and $10.3 million, respectively. Q2 & Q3 2014 GAAP operating loss was $19.6 million and $18.5 million, respectively. Please see the tables at the end of this press release for a reconciliation of GAAP results to adjusted results. (5) Enterprise revenues represent Products, Maintenance and Content Services, and Professional Services revenue line items; Media revenues represent Advertising revenue line item. (6) Cash operating expenses exclude depreciation & amortization, stock-based compensation and other one-time or non-recurring charges. Contact: For RMG Networks Holding Corporation Investor Brett Maas 646-536-7331 Email Contact or Media Julie Rasco 800-827-9666 Email Contact Source: RMG Networks Holding Corporation |