-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KH4LyW9amH4zyzOXqcUmEFruck2pSyQlm/AUI82CafMIE64LnzTeHHpxU30tL69l JO/Z/qH14h3y3DIhRkZ5VQ== 0000930413-04-003596.txt : 20040811 0000930413-04-003596.hdr.sgml : 20040811 20040811172343 ACCESSION NUMBER: 0000930413-04-003596 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040811 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20040811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRONT PORCH DIGITAL INC CENTRAL INDEX KEY: 0001025707 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 860793960 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-32913 FILM NUMBER: 04967850 BUSINESS ADDRESS: STREET 1: 1810 CHAPEL AVE W STREET 2: SUITE 130 CITY: CHERRY HILL STATE: NJ ZIP: 08002 BUSINESS PHONE: 8566333500 MAIL ADDRESS: STREET 1: 1810 CHAPEL AVE W STREET 2: SUITE 130 CITY: CHERRY HILL STATE: NJ ZIP: 08002 FORMER COMPANY: FORMER CONFORMED NAME: EMPIRE COMMUNICATIONS CORP DATE OF NAME CHANGE: 19980327 FORMER COMPANY: FORMER CONFORMED NAME: LITIGATION ECONOMICS INC DATE OF NAME CHANGE: 19961022 8-K 1 c33278_8k.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: August 11, 2004 (Date of earliest event reported) FRONT PORCH DIGITAL INC. - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) Nevada - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 333-16031 86-0793960 - ----------------------------- ------------------ (Commission File No.) (I.R.S. Employer Identification No.) 20000 Horizon Way, Suite 120, Mt. Laurel, New Jersey 08054 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (856) 439-9950 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) N/A - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On August 11, 2004, Front Porch Digital Inc. (the "Company") issued a press release announcing its financial results for the three- and six-months ended June 30, 2004. A copy of the press release is attached hereto as Exhibit 99.1. In connection with the foregoing, the Company hereby furnishes the following exhibit pursuant to Item 12 of Form 8-K: EXHIBIT NUMBER EXHIBIT TITLE 99.1 Press release of Front Porch Digital Inc. dated August 11, 2004 relating to results of operations for the three- and six-months ended June 30, 2004. The information included in this Current Report on Form 8-K (including the exhibit hereto, this "Current Report") is being furnished under Item 12, "Results of Operations and Financial Condition." As such, the information (including the exhibit) herein shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. This Current Report (including the exhibit hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FRONT PORCH DIGITAL INC. Date: August 11, 2004 By:/s/ Matthew Richman ------------------------------------- Matthew Richman Chief Financial Officer and Treasurer EXHIBIT INDEX EXHIBIT NUMBER EXHIBIT TITLE 99.1 Press release of Front Porch Digital Inc. dated August 11, 2004 relating to results of operations for the three- and six-months ended June 30, 2004. EX-99.1 2 c33278_ex99-1.txt EXHIBIT 99.1 NEWS RELEASE FOR AUGUST 11, 2004 AT 7:30 AM EDT Contact: Allen & Caron Inc Front Porch Digital, Inc. Jill Bertotti (investors) Matthew G. Richman, Chief Financial Officer jill@allencaron.com investors@fpdigital.com Len Hall (financial media) 856-439-9950 len@allencaron.com 949-474-4300 FRONT PORCH DIGITAL ANNOUNCES RECORD SECOND QUARTER, SIX-MONTH RESULTS REVENUES UP 407% AND 187% FROM PRIOR YEAR PERIODS, COMPANY TURNS CASH FLOW POSITIVE MT. LAUREL, N.J., AUGUST 11, 2004 - Front Porch Digital Inc. (OTCBB: FPDI) today announced record results for its second quarter and six months ended June 30, 2004. Revenues in this year's second quarter increased 407 percent from the prior year period, while margins rose, losses dropped sharply and the Company generated its first positive cash flow from operating activities since refocusing its resources on the media and broadcast business. For the first six months of this year, revenues were up 187 percent from revenues in the comparable prior year period. According to Chairman Thomas P. Sweeney, this year's second quarter and six-month results reflect the Company's considerable operational and financial progress. "We believe these results, combined with our increasing order rate, clearly reflect the market's expanding acceptance of our products and services and the ongoing commitment of our entire team to create a growing and profitable enterprise and establish the Company as the leader in our industry," Sweeney said. "Additionally, becoming cash flow positive marks the achievement of a critical milestone and bolsters the perception of our brand in the market." Driven by continued strong sales momentum for the Company's digital archive software and services worldwide, total revenues from continuing operations for this year's second quarter increased 407 percent to $2 million, from revenues of $391,000 in the 2003 second quarter. Revenues from continuing operations in the 2004 second quarter were up sequentially 25 percent from revenues of $1.6 million in the first quarter of 2004. For the first six months of this year, total revenues from continuing operations rose 187 percent to $3.5 million, up from $1.2 million for the year-earlier period. As of June 30, 2004, the Company reported a backlog of $2.2 million. Gross margin as a percentage of revenue for the 2004 second quarter and six months was 74 percent and 73 percent, respectively, compared with 49 percent and 66 percent for the respective year-earlier periods. Gross margin as a percentage of revenue in the first quarter of this year was 72 percent. The operating loss for the 2004 second quarter was reduced to $81,000 from an operating loss of $928,000 for the comparable year-earlier period, and was less than one half the $181,000 operating loss in the first quarter of this year. For the first six months of 2004, the operating loss dropped to $262,000 from $1.4 million for the first six months of last year. The operating loss for the second quarter and first six months of 2004 included non-cash compensation of $199,000 and $233,000, respectively, related to the granting of stock options. The net loss for the 2004 second quarter was reduced to $510,000, or $0.01 loss per share, from a net loss of $3.2 million, or $0.08 loss per share, for the prior year period. For the first six months of 2004, the net loss declined to $865,000, or a loss per share of $0.02, from a net loss of $3.5 million, or a loss per share of $0.10, for the same period last year. The second quarter and first six months of 2003 included losses from discontinued operations of $2.1 million and $1.7 million, respectively. The Company turned cash flow positive in this year's second quarter as cash flow from operations was $227,000 in the quarter and $169,000 for the first six months of 2004. Chief Financial Officer Matthew G. Richman commented: "There are key indicators that clearly demonstrate the full extent of our progress since the beginning of the year. First, as we reached the mid-point of 2004, our six-month revenues exceeded total revenues for all of 2003 by more than 20 percent and our costs are increasing at a rate that is significantly less than our rate of revenue growth. "Second, we believe our costs are in line with our business plan goals and, as of June 30, 2004, we were on track to hit our annual revenue target," Richman added. "Additionally, with $1.3 million in unrestricted cash and cash equivalents at the end of the 2004 second quarter, our cash position has improved significantly, and our working capital deficit has declined sharply from year-end levels." ABOUT FRONT PORCH DIGITAL Front Porch Digital Inc. (WWW.FPDIGITAL.COM) is transforming the digital world by developing unique software and services that convert audio, video, images, text and data into digital formats that enable searching, browsing, editing, storage and on-demand delivery of content in nearly any other digital format through a single capture. Front Porch is a leading provider of archive management software to broadcasters throughout Europe and Asia. FRONT PORCH DIGITAL FORWARD LOOKING STATEMENTS This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect Front Porch Digital's current views with respect to future events and financial performance. Such statements are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated from such forward-looking statements. The potential risk factors include Front Porch Digital's limited operating history and experience in the data and video digital conversion business, Front Porch Digital's ability to attract significant additional financing and incur 2 operational losses and negative cash flow, and risks associated with expansion. Additional risk factors are set forth in Front Porch Digital's reports and documents filed with the Securities and Exchange Commission. TABLE FOLLOWS 3 FRONT PORCH DIGITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three months ended Six months ended June 30, June 30, -------------------------------- -------------------------------- 2004 2003 2004 2003 --------------------------------------------------------------------- Total revenues 1,981,234 390,641 3,549,354 1,236,379 Gross margin 1,464,978 189,747 2,591,928 812,153 Total operating expenses 1,545,956 1,117,783 2,854,398 2,186,802 ----------- ----------- ----------- ----------- Operating loss (80,978) (928,036) (262,470) (1,374,649) ----------- ----------- ----------- ----------- Other income (expense): Interest income 6,363 412 7,564 797 Interest expense (420,687) (208,857) (618,892) (362,392) Other income - (1,346) 20,873 (80) Foreign currency transaction loss (14,193) (2,536) (12,191) (3,237) ----------- ----------- ----------- ----------- Total other expense, net (428,517) (212,327) (602,646) (364,912) ----------- ----------- ----------- ----------- Loss from continuing operations (509,495) (1,140,363) (865,116) (1,739,561) ----------- ----------- ----------- ----------- Loss from operations of discontinued operations - (2,080,329) - (1,725,411) ----------- ----------- ----------- ----------- Net loss $ (509,495) $(3,220,692) $ (865,116) $(3,464,972) =========== =========== =========== =========== Weighted average shares outstanding - basic and diluted 55,485,065 39,370,754 48,641,473 35,869,795 Loss per share - basic and diluted: Loss from continuing operations $ (0.01) $ (0.03) $ (0.02) $ (0.05) Loss from discontinued operations $ - $ (0.05) $ - $ (0.05) Net loss $ (0.01) $ (0.08) $ (0.02) $ (0.10) =========== =========== =========== ===========
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