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YOU On Demand Announces Q3 2015 Earnings Results and Approval of Nonbinding Investment Proposal from Bruno Wu's Sun Seven StarsNEW YORK, Nov. 16, 2015 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or "YOD" or "the Company"), a Video On Demand ("VOD") and entertainment service provider in China delivering Hollywood movies to mobile and TV screens, announced today its Q3 2015 operating results for the period ended September 30, 2015 (a full copy of the Company's quarterly report on Form 10-Q is also being posted at www.sec.gov). In addition, the Company announced both receipt and approval of a preliminary nonbinding investment proposal from Bruno Wu's Sun Seven Stars. Conference Call: Chairman Shane McMahon, CEO Weicheng Liu and VP of Finance Grace He will host a conference call at 8:00 a.m. ET today. To join the webcast, please visit the 'Webcasts and Events' section of the YOD corporate website, http://corporate.yod.com. Otherwise, the toll-free dial-in is: 877/407-3107; international callers should dial: 201/493-6796. YOD Q3 2015 Operating Results Revenue for the three months ended September 30, 2015 was $476,000, as compared to $645,000 for the same period in 2014. Revenue for the nine months ended September 30, 2015 was $2,984,000, as compared to $965,000 for the same period in 2014. The year-to-date increase in revenue of approximately $2,019,000 was attributable to the growth of our multi-platform video streaming services in the first half of 2015. Our gross loss for the three months ended September 30, 2015 was $424,000, as compared to $228,000 gross loss during the same period in 2014. The increase in gross loss of approximately $196,000 was primarily due to decreased revenues. Our selling, general and administrative expenses for the three months ended September 30, 2015, decreased approximately $29,000, to $1,832,000, as compared to $1,861,000 for the three months ended September 30, 2014. Salaries and personnel costs are the primary component of selling, general and administrative expenses. For the three months ended September 30, 2015, these costs totaled $922,000, a decrease of $79,000, or 8%, as compared to $1,001,000 for the same period of 2014. While we added resources in the area of product development and operations, salaries and personnel costs decreased due to continuous cost control and internal re-alignment of resources, which was a primary focus of management for the 2015 fiscal year. This decrease was partially offset by increase in marketing expenses related to our promotion of our YOU Hollywood services across big screen platforms, namely cable, IPTV and OTT. Net loss was $2,336,000 for Q3 2015 compared to $2,116,000 in the comparable 2014 period. Basic and diluted loss per share for Q3 2015 was $0.09 as compared to $0.09 loss per share in the same period in 2014. Net loss for the nine months ended September 30, 2015 was $6,578,000 compared to $10,654,000 in the comparable 2014 period. For the nine months ended September 30, 2015, basic and diluted loss per share was $0.26 as compared to $1.45 loss per share for the same nine-month period in 2014. As of September 30, 2015, the Company had cash and cash equivalents of approximately $4.4 million and total current assets of approximately $8.5 million. More details of YOU ON Demand's Q3 2015 financials can be found in form 10-Q of our corporate filings, copies of which can be obtained from the SEC or via our website. Strategic Investment from Bruno Wu's Sun Seven Stars YOU On Demand also today announced that its Board of Directors (the "Board") has received and approved a nonbinding proposal ("Investment Proposal") from Bruno Wu's Beijing Sun Seven Stars Culture Development Limited ("SSS"). For informational purposes, Bruno Wu is now the Founder, Co-Chairman and CEO of Sun Seven Stars Media Group Limited, one of the biggest private media and investment conglomerates in China. Its predecessor is Sun Media Group Holdings Limited, which was established by Bruno Wu and Yang Lan in 1999 and became one of the leading entertainment, media and investment companies in Asia after 10 years of growth. Sun Seven Stars Media Group Limited now has 7 business units including Sun Media Group, Sun eSports Group, Sun Seven Stars Culture Group, Enternet Group, Sun TV+ Network Group, Sun Music Group and Sun Art Capital Group. It has a presence in over ten major cities in the world including: Beijing, Shanghai, Tianjin, Hong Kong, New York, LA, Paris, London, Toronto, Seoul and Scandinavia countries. The Investment Proposal is outlined as follows:
While the Company and SSS are pursuing a closing of the foregoing transactions, the Board cautions the Company's shareholders and others considering trading in its securities that this is a nonbinding investment proposal subject to the following:
There can be no assurance that any definitive agreement will be executed, or that this, or any other, transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law. About YOU On Demand Holdings, Inc. (http://corporate.yod.com) YOU On Demand (NASDAQ: YOD), is a leading multi-platform entertainment service company delivering premium content, including leading Hollywood movie titles, to customers across China via Subscription Video On Demand and Transactional Video On Demand. The Company has secured alliances with leading global media operators and content developers. YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal and Twentieth Century Fox Television Distribution, Miramax, as well as a broad selection of the best content from Chinese filmmakers. The Company has a comprehensive end-to-end secure delivery system, governmental partnerships and approvals and offers additional value-added services. YOU On Demand has strategic partnerships with the largest media entities in China, a highly experienced management team with international background and expertise in Cable, Television, Film, Digital Media, Internet and Telecom. YOU On Demand is headquartered in both New York, NY and Beijing, China. Safe Harbor Statement This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements. CONTACT:
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