NeoMedia Technologies, Inc (NEOM)

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DD Naple News Article Out this Morning

http://www.naplesnews.com/news/2006/aug/10/neomedia_technologies_reports_secondquarter_revenu/?busin....

naplesnews.com
NeoMedia Technologies reports second-quarter revenue growth
The company's changing balance sheet was reflected in its net income of $5.13 million compared to a net loss of $2.3 million last year.

By Riddhi Trivedi-St. Clair

Thursday, August 10, 2006

With the revenue from all its acquisitions now reflected in the bottom line, Southwest Florida-based NeoMedia Technologies showed a significant revenue growth for the second quarter.

The company reported a 222 percent increase in revenues for the second quarter to $6.6 million, up from $2.05 million from last quarter. It was also a more than 1,000 percent increase over the same period last year.

NeoMedia is a provider of technology and mobile marketing solutions.

So far this year, the company's revenues are $8.66 million, 574 percent higher than $1.285 million last year.

"I am very happy about the numbers," said Chuck Jensen, president and CEO. "We are extremely pleased with the result of all our acquisitions. They are all moving down the road as we anticipated. NeoMedia is making great strides."

The companies recognizing revenue for the second quarter include Mobot Inc. of Lexington, Mass.; Sponge of London, U.K.; Gavitec AG of Wurselen, Germany, 12snap of Munich, Germany; and BSD Software Inc. of Calgary, Canada.

"What is awesome is 12Snap and Sponge and Gavitec have all had excellent news transactions with a large breadth of companies and that is continuing to help our revenues," Jensen said.

This includes deals with many national and international companies that they aren't allowed to name, he said, like "big soft drink companies or big cell phone manufacturing companies."

The company's changing balance sheet was reflected in its net income of $5.13 million compared to a net loss of $2.3 million last year.

The loss from operations, however, not only continued but grew from $2.16 million to $5.91 million. For the entire first half of the year, net income was $3.815 million and loss from operations almost tripled to $10.04 million from $3.54 million last year.

The growing loss from operations is because of its continued investment in "code" and efforts to capture as great a segment as possible of a growing market, Jensen said.

"Remember we are launching code (this year) so that's an investment," he said. "And it requires infrastructure to make it profitable."

© 2006 Naples Daily News and NDN Productions. Published in Naples, Florida, USA by the E.W. Scripps Co.

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