ValueVision Media, Inc. (Form: 8-K)

ValueVision Announces Third Quarter Results
$185MM in Revenue and $0.8MM Adjusted EBITDA

MINNEAPOLIS, MN—November 19, 2007—ValueVision Media, Inc. (Nasdaq:VVTV) today announced financial results for the third quarter ended November 3, 2007.

ValueVision’s third quarter revenue was $184.8 million, matching revenue of the prior year. Third quarter EBITDA, as adjusted, was $0.8 million compared to an EBITDA, as adjusted, of $1.4 million in the same quarter last year. Net loss for the quarter was ($5.7) million compared to a net loss of ($3.1) million for the same quarter last year.

“Our results for the third quarter were certainly below our expectations, but there were several factors that were encouraging as we look more closely at the results,” said John D. Buck, interim Chief Executive Officer of ValueVision Media, Inc. “Although sales equaled last year’s quarter, the comparison was adversely affected by a change in our merchandise mix. High ticket LCD TV sales, which drove sales growth in 2006, were down significantly for the current quarter. In response, we shifted hours back into our more traditional categories of Gemstones, Watches, Apparel and Notebook Computers which performed strongly but did not totally offset the decrease in LCD TV sales. Our Internet business continues to deliver solid sales growth and our Internet video initiative continues to move forward with the launch of our second generation of ShopNBC.TV last week.”

Internet Growth Continues. Sales on ShopNBC.com increased by 18% in the third quarter. Internet sales now represent 28% of total merchandise sales.

Broad Category Strength. Several of our categories showed significant growth over last year. Watches, Gemstones, Apparel and Notebook Computers all delivered double digit sales growth during the third quarter.

CEO Search In Progress. Spencer Stuart continues to move forward with their search for a permanent CEO for ValueVision Media.

Alvarez & Marsal Business Review Underway. In partnership with our senior management team, the consulting group of Alvarez and Marsal has initiated a business review focused on identifying revenue and cost savings opportunities. During the fourth quarter, they will complete their assessment and present their finding to the Board of Directors.

Stock Buyback Activity. During the third quarter we repurchased 1.1MM shares of stock with a remaining authorization of $14.3MM. Our balance sheet remains strong with $103 million in cash and no debt.

Added PayPal as Payment Option. We successfully launched PayPal as a new form of payment on ShopNBC.com. Initial response indicates that this payment option will be popular with many of our existing customers. We also expect PayPal to help attract new customers to ShopNBC.com.

“Our outlook for the balance of the year remains unchanged and we are reaffirming our annual guidance of low single digit sales growth and adjusted EBITDA of $5MM-$10MM” continued Buck. “We are off to a strong start in the fourth quarter with an outstanding ‘All Star’ event last week that resulted in a significant increase over last year.”

Management has scheduled a conference call at 11:00 a.m. EDT/10:00 a.m. CDT on Tuesday, November 20, 2007 to discuss third quarter results.

To participate in the conference call, please dial 1-800-857-9866 (pass code: VALUEVISION) five to ten minutes prior to the call time. If you are unable to participate live, a replay will be available for 30 days after the conference call. To access the replay, please dial 1-800-234-5713.

You may also participate via live audio stream by logging on to https://e-meetings.mci.com. To access the audio stream, please use conference number 5967117 with pass code ‘VALUE VISION’. A rebroadcast of the audio stream will be available using the same access information for 30 days after the initial broadcast.

To be placed on the Company’s e-mail notification list for press releases, SEC filings, certain analytical information, and/or upcoming events, please go to www.valuevisionmedia.com and click on “Investor Relations.” Click on “E-mail Alerts” and complete the requested information.

The Company defines EBITDA as net income (loss) from continuing operations for the respective periods excluding depreciation and amortization expense, interest income (expense) and income taxes. The Company defines EBITDA, as adjusted, as EBITDA excluding non-recurring non-operating gains (losses) and equity in income of Ralph Lauren Media, LLC; non-recurring restructuring costs; and non-cash stock option expense. Management has included the term EBITDA, as adjusted, in order to adequately assess the operating performance of the Company’s “core” television and Internet businesses and in order to maintain comparability to its analyst’s coverage and financial guidance. Management believes that EBITDA, as adjusted, allows investors to make a more meaningful comparison between our core business operating results over different periods of time with those of other similar small cap, higher growth companies. In addition, management uses EBITDA, as adjusted, as a metric measure to evaluate operating performance under its management and executive incentive compensation programs. EBITDA, as adjusted, should not be construed as an alternative to operating income (loss) or to cash flows from operating activities as determined in accordance with GAAP and should not be construed as a measure of liquidity. EBITDA, as adjusted, may not be comparable to similarly entitled measures reported by other companies.

Founded in 1990, ValueVision Media is an integrated direct marketing company that sells general merchandise directly to consumers through television, the Internet, and direct mail. It operates ShopNBC, one of the top three television shopping networks in the United States. For more information, please visit www.valuevisionmedia.com or www.shopnbc.com or www.shopnbc.tv.

This release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are accordingly subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein due to various important factors, including (but not limited to): consumer spending and debt levels; interest rates; competitive pressures on sales, pricing and gross profit margins; the level of cable distribution for the Company’s programming and the fees associated therewith; the success of the Company’s e-commerce and rebranding initiatives; the performance of its equity investments; the success of its strategic alliances and relationships; the ability of the Company to manage its operating expenses successfully; risks associated with acquisitions; changes in governmental or regulatory requirements; litigation or governmental proceedings affecting the Company’s operations; and the ability of the Company to obtain and retain key executives and employees. More detailed information about those factors is set forth in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. The Company is under no obligation (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

CONTACT: Investor Relations, Frank Elsenbast, Senior Vice President and Chief Financial Officer, 952-943-6262 or Amy Kahlow, Director of Communications, 952-943-6717.

VALUEVISION MEDIA, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)


	November 3,			February 3,
	2007			2007
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	20,755		$	41,496
Short-term investments		82,039			29,798
Accounts receivable, net		105,344			117,169
Inventories		80,914			66,622
Prepaid expenses and other		5,009			5,360

Total current assets		294,061			260,445
Property and equipment, net		36,768			40,107
FCC broadcasting license		31,943			31,943
NBC Trademark License Agreement, net		11,414			12,234
Cable distribution and marketing agreement, net		1,088			1,759
Other assets		738			5,492

	$	376,012		$	351,980

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	66,409		$	57,196
Accrued liabilities		54,786			47,709
Deferred revenue		599			369

Total current liabilities		121,794			105,274
Other long-term obligations		-			2,553
Deferred revenue		2,295			1,699
Series A Redeemable Convertible Preferred Stock, $.01 par value, 5,339,500
shares authorized; 5,339,500 shares issued and outstanding		43,825			43,607
Shareholders’ equity:
Common stock, $.01 par value, 100,000,000 shares
authorized; 35,930,578 and 37,593,768 shares issued and
outstanding		359			376
Warrants to purchase 4,036,858 shares of common stock		22,972			22,972
Additional paid-in capital		273,566			287,541
Accumulated deficit		(88,799	)		(112,042	)

Total shareholders' equity		208,098			198,847

	$	376,012		$	351,980

VALUEVISION MEDIA, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)


	For the Three Month Periods Ended						For the Nine Month Periods Ended
	November 3,			November 4,			November 3,			November 4,
	2007			2006			2007			2006
Net sales	$	184,821		$	184,886		$	563,543		$	550,592
Cost of sales		119,837			121,311			365,124			358,588
(exclusive of depreciation and amortization shown
below)
Operating expense:
Distribution and selling		59,126			55,069			179,619			165,470
General and administrative		5,423			7,476			19,128			21,339
Depreciation and amortization		4,734			5,777			15,581			16,527
Restructuring costs		1,061			-			3,104			-
CEO transition costs		2,096			-			2,096			-
Asset impairments and write offs		-			-			-			29

Total operating expense		72,440			68,322			219,528			203,365

Operating loss		(7,456	)		(4,747	)		(21,109	)		(11,361	)

Other income:
Other income (expense)		-			-			(119	)		350
Interest income		1,728			990			4,543			2,951

Total other income		1728			990			4,424			3,301

Loss before income taxes and equity in net income of
affiliates		(5,728	)		(3,757	)		(16,685	)		(8,060	)
Gain on sale of RLM investment		-			-			40,240			-
Equity in income of affiliates		-			646			609			2,192
Income tax provision		-			(15	)		(921	)		(45	)

Net income (loss)		(5,728	)		(3,126	)		23,243			(5,913	)
Accretion of redeemable preferred stock		(73	)		(73	)		(218	)		(217	)

Net income (loss) available to common shareholders	$	(5,801	)	$	(3,199	)	$	23,025		$	(6,130	)

Net income (loss) per common share	$	(0.16	)	$	(0.09	)	$	0.54		$	(0.16	)

Net income (loss) per common share —assuming
dilution	$	(0.16	)	$	(0.09	)	$	0.55		$	(0.16	)

Weighted average number of
common shares outstanding:
Basic		36,330,800			37,628,215			42,438,322			37,700,351

Diluted		36,330,800			37,628,215			42,458,720			37,700,351


	Q3								YTD
	For the three months ending								For the nine months ending
		11/3/2007			11/4/2006		%			11/3/2007			11/4/2006		%

Program Distribution

Cable FTEs		41,726			39,854		5	%		41,156			39,055		5	%
Satellite FTEs		27,687			26,018		6	%		27,421			25,691		7	%

Total FTEs (Average 000s)		69,413			65,873		5	%		68,577			64,746		6	%

Net Sales per FTE (Annualized)	$	10.46		$	11.07		-6	%	$	10.77		$	11.18		-4	%

Active Customers - 12 month rolling		876,261			834,701		5	%		n/a			n/a

% New Customers - 12 month rolling		52	%		54	%				n/a			n/a

% Retained - 12 month rolling		48	%		46	%				n/a			n/a

Customer Penetration - 12 month rolling		1.3	%		1.3	%				n/a			n/a

Product Mix

Jewelry		38	%		35	%				39	%		40	%
Watches, Apparel and Health & Beauty		26	%		24	%				25	%		23	%
Home & All Other		36	%		41	%				36	%		37	%


Shipped Units (000s)		1,069			1,098		-3	%		3,350			3,648		-8	%

Average Price Point — shipped units	$	240		$	225		7	%	$	233		$	208		12	%


							Nine-Month Period			Nine-Month Period
	Third Quarter			Third Quarter			Ended			Ended
	3-Nov-07			4-Nov-06			3-Nov-07			4-Nov-06
EBITDA, as adjusted (000’s)	$	817		$	1,422		$	1,066		$	6,333
Less:
Non-operating gains (losses) and
equity in income of RLM		—			646			40,730			2,542
Restructuring costs		(1,061	)		—			(3,104	)		(29	)
CEO transition costs		(2,096	)		—			(2,096	)		—
Non-cash stock option expense		(382	)		(392	)		(1,394	)		(1,138	)

EBITDA (as defined) (a)		(2,722	)		1,676			35,202			7,708
A reconciliation of EBITDA to net income (loss) is as follows:
EBITDA, as defined		(2,722	)		1,676			35,202			7,708
Adjustments:
Depreciation and amortization		(4,734	)		(5,777	)		(15,581	)		(16,527	)
Interest income		1,728			990			4,543			2,951
Income taxes		—			(15	)		(921	)		(45	)

Net income (loss)	$	(5,728	)	$	(3,126	)	$	23,243		$	(5,913	)


Minnesota	0-20243	41-1673770
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

6740 Shady Oak Road, Eden Prairie, Minnesota		55344-3433
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	ValueVision Media, Inc.

November 19, 2007	By:	Nathan E. Fagre

		Name: Nathan E. Fagre
		Title: Senior Vice President, General Counsel and Secretary


Exhibit No.		Description

99		Press Release dated November 19, 2007


Date of Report (Date of Earliest Event Reported):		November 19, 2007


Registrant’s telephone number, including area code:		(952) 943-6000