DG FastChannel Inc. (DGIT, Financial) filed Quarterly Report for the period ended 2012-03-31.
Digital Genertn has a market cap of $266.9 million; its shares were traded at around $8.17 with a P/E ratio of 5 and P/S ratio of 0.8. Digital Genertn had an annual average earning growth of 9% over the past 10 years.
Sales and Marketing. For the three months ended March 31, 2012, sales and marketing expense increased $12.0 million, or 443%, as compared to the same period in the prior year. The increase was due to (i) the inclusion of MIJO, MediaMind and EyeWonder ($11.4 million) in our operating results and (ii) a recent development effort to expand our television business to international markets including the United Kingdom ($0.7 million). As a percentage of revenues, sales and marketing expenses increased to 15.8% in the current year period, as compared to 4.3% in the same period of the prior year. The percentage increase is attributable to the inclusion of MediaMind and EyeWonder in our operating results as they have higher selling expenses than the balance of the Company, and the development of our television business in international markets discussed above.
General and Administrative For the three months ended March 31, 2012, general and administrative expense increased $4.8 million, or 58%, as compared to the same period in the prior year. As a percentage of revenues, general and administrative expense increased to 14.2% in the current year period, as compared to 13.1% in the same period of the prior year. The increase was primarily due to (i) the inclusion of MIJO, MediaMind and EyeWonder ($3.9 million, which includes $2.2 million of share-based compensation expense) in our operating results and (ii) higher share-based compensation ($0.9 million) from our television segment.
Revenues. For the three months ended March 31, 2012, revenues increased $2.7 million, or 4%, as compared to the same period in the prior year. The increase was principally due to the acquisition of MIJO on April 1, 2011 ($5.8 million), partially offset by a $3.6 million reduction in standard definition (SD) revenue. SD revenue declined principally as a result of a decrease in the number of deliveries as more customers switched to HD deliveries. HD revenue increased $3.2 million ($35.6 million in 2012 compared to $32.4 million in 2011 (the 2012 amount includes $2.9 million of MIJO HD revenue addressed above)) as an increase in deliveries was partially offset by a decrease in HD pricing per delivery. HD deliveries increased due to a continuing trend of delivering more HD advertising content and less SD content. We expect the percentage that HD deliveries bear to total deliveries will continue to increase. The decrease in HD pricing per delivery was attributable to the competitive environment and a higher percentage of electronic deliveries (95% in 2012 compared to 84% in 2011). Historically, electronic deliveries are priced lower than physical deliveries. Political advertising increased $0.5 million due to the 2012 national, state and local elections in the United States. We expect political advertising will increase in the next few quarters.
Revenues. For the three months ended March 31, 2012, revenues increased $26.7 million, or 616%, as compared to the same period in the prior year. The increase was due to (i) the acquisitions of MediaMind and EyeWonder ($25.9 million) and (ii) an 18% increase in Unicasts revenues ($0.8 million).
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Digital Genertn has a market cap of $266.9 million; its shares were traded at around $8.17 with a P/E ratio of 5 and P/S ratio of 0.8. Digital Genertn had an annual average earning growth of 9% over the past 10 years.
Highlight of Business Operations:
Cost of Revenues. For the three months ended March 31, 2012, cost of revenues increased $11.5 million, or 53%, as compared to the same period in the prior year. As a percentage of revenues, cost of revenues increased to 35.5% in 2012, as compared to 33.9% in 2011. Cost of revenues increased due to including the 2011 acquisitions of MIJO, MediaMind and EyeWonder ($12.0 million) in our operating results. The increase in our cost of revenues percentage is principally due to (i) the 2011 acquisition of EyeWonder which has lower gross margins than the balance of the company, and (ii) lower margins in our television segment.Sales and Marketing. For the three months ended March 31, 2012, sales and marketing expense increased $12.0 million, or 443%, as compared to the same period in the prior year. The increase was due to (i) the inclusion of MIJO, MediaMind and EyeWonder ($11.4 million) in our operating results and (ii) a recent development effort to expand our television business to international markets including the United Kingdom ($0.7 million). As a percentage of revenues, sales and marketing expenses increased to 15.8% in the current year period, as compared to 4.3% in the same period of the prior year. The percentage increase is attributable to the inclusion of MediaMind and EyeWonder in our operating results as they have higher selling expenses than the balance of the Company, and the development of our television business in international markets discussed above.
General and Administrative For the three months ended March 31, 2012, general and administrative expense increased $4.8 million, or 58%, as compared to the same period in the prior year. As a percentage of revenues, general and administrative expense increased to 14.2% in the current year period, as compared to 13.1% in the same period of the prior year. The increase was primarily due to (i) the inclusion of MIJO, MediaMind and EyeWonder ($3.9 million, which includes $2.2 million of share-based compensation expense) in our operating results and (ii) higher share-based compensation ($0.9 million) from our television segment.
Revenues. For the three months ended March 31, 2012, revenues increased $2.7 million, or 4%, as compared to the same period in the prior year. The increase was principally due to the acquisition of MIJO on April 1, 2011 ($5.8 million), partially offset by a $3.6 million reduction in standard definition (SD) revenue. SD revenue declined principally as a result of a decrease in the number of deliveries as more customers switched to HD deliveries. HD revenue increased $3.2 million ($35.6 million in 2012 compared to $32.4 million in 2011 (the 2012 amount includes $2.9 million of MIJO HD revenue addressed above)) as an increase in deliveries was partially offset by a decrease in HD pricing per delivery. HD deliveries increased due to a continuing trend of delivering more HD advertising content and less SD content. We expect the percentage that HD deliveries bear to total deliveries will continue to increase. The decrease in HD pricing per delivery was attributable to the competitive environment and a higher percentage of electronic deliveries (95% in 2012 compared to 84% in 2011). Historically, electronic deliveries are priced lower than physical deliveries. Political advertising increased $0.5 million due to the 2012 national, state and local elections in the United States. We expect political advertising will increase in the next few quarters.
Revenues. For the three months ended March 31, 2012, revenues increased $26.7 million, or 616%, as compared to the same period in the prior year. The increase was due to (i) the acquisitions of MediaMind and EyeWonder ($25.9 million) and (ii) an 18% increase in Unicasts revenues ($0.8 million).
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