EX-99.2 4 b325025ex99_2.txt PRESS RELEASE Exhibit 99.2 FOR IMMEDIATE RELEASE --------------------- ACTV, Inc. Reports 2003 First Quarter Results NEW YORK, NY - May 15, 2003 -- ACTV, Inc. (Nasdaq: IATV), a digital media company specializing in interactive television and enhanced media technologies, today reported results for the three months ended March 31, 2003 and 2002. 2003 First Quarter Financial Results Revenues for the first quarter 2003 were $2.3 million, compared with $3.2 million in the first quarter 2002. ACTV's net loss for the three months ended March 31, 2003 was $(5.4) million or $(0.10) per basic share versus net income of $0.5 million or $0.01 per basic share, respectively in 2002. Results for the three-month period ending March 31, 2003 included a restructuring charge of $1.0 million, related to employee severance. Results for the three-month period ending March 31, 2002 included a non-cash benefit of $6.0 million, related to a reduction in option-based compensation expense. About ACTV, INC. ---------------- ACTV, Inc. (Nasdaq: IATV) is a digital media company providing proprietary technologies, tools, and technical and creative services for interactive TV advertising, personalized programming applications and enhanced media. For more information, visit www.actv.com. For more information contact: ACTV, Inc. ---------- Christopher Cline Senior Vice President & CFO ACTV, Inc. (Investors) 212-497-7000 ir@actv.com This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the companies, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the companies disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof. # # # ACTV, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
DECEMBER 31, MARCH 31, 2003 2002 ------------------ ---------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 22,643,506 $ 23,813,611 Short-term investments 21,181,683 23,997,246 Accounts receivable-net 1,202,579 1,947,866 Other 1,843,410 1,932,721 ------------------ ---------------- Total current assets 46,871,178 51,691,444 Property and equipment-net 2,922,270 3,578,176 Other assets: Restricted cash 484,913 484,913 Investment in warrant 2,534,090 2,655,681 Investments--other 5,747,776 5,783,697 Patents and patents pending 8,846,297 8,835,376 Software development costs 4,536,725 4,730,223 Goodwill 935,701 935,701 Other 81,385 79,961 ------------------ ---------------- Total other assets 23,166,887 23,505,552 ------------------ ---------------- Total assets $ 72,960,335 $ 78,775,172 ================== ================ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 1,830,623 $ 944,179 Deferred revenue 3,805,426 3,879,960 ------------------ ---------------- Total current liabilities 5,636,049 4,824,139 Deferred revenue 62,441,873 63,346,826 Minority interest -- 366,940 Stockholders' equity: Common stock, $0.10 par value, 200,000,000 shares authorized: issued and outstanding 55,881,047 at March 31, 2003, and 55,877,545 at December 31, 2002 5,588,105 5,587,755 Stockholder loans (82,999) (82,999) Additional paid-in capital 311,392,934 311,392,444 Accumulated deficit (312,015,627) (306,659,933) ------------------ ---------------- Total stockholders' equity 4,882,413 10,237,267 ------------------ ---------------- Total liabilities and stockholders' equity $ 72,960,335 $ 78,775,172 ================== ================
ACTV, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, --------------------------------------- 2003 2002 ------------------ ------------------ Revenue $ 2,259,515 $ 3,186,421 Costs and expenses: Selling, general and administrative expenses 5,918,561 6,050,416 Depreciation and amortization 1,085,535 1,305,461 Restructuring charge 1,001,237 -- Stock-based compensation income -- (6,002,831) ------------------ ------------------ Total costs and expenses 8,005,333 1,353,046 ------------------ ------------------ (Loss)/income from operations (5,745,818) 1,833,375 Interest income 180,696 288,540 Other expense (157,512) (2,459,873) ------------------ ------------------ Loss before minority interest and cumulative effect of accounting change (5,722,634) (337,958) Minority interest-subsidiaries 366,940 788,816 ------------------ ------------------ Net (loss)/income $ (5,355,694) $ 450,858 ------------------ ------------------ Net (loss)/income per share: Basic Basic net (loss)/income per share $ (0.10) $ 0.01 ------------------ ------------------ Diluted Diluted net (loss)/income per share $ (0.10) $ 0.01 ------------------ ------------------ Shares used in basic calculations 55,879,101 55,883,934 Shares used in diluted calculations 55,879,101 56,862,945