Wecast Network (formerly YOU On Demand) Announces Q3 2016 Results

NEW YORK, Nov. 14, 2016 /PRNewswire/ -- Wecast Network, Inc. (NASDAQ: WCST) ("Wecast" or the "Company" or "WCST"), formerly YOU On Demand Holdings, Inc. or "YOD," announced today its Q3 2016 operating results for the period ended September 30, 2016 (a full copy of the Company's quarterly report on Form 10-Q is also being posted at www.sec.gov).  

Conference Call: Chairman Bruno Wu and CFO Mei Chen will host a conference call at 8:00 a.m. EST today.

To join the webcast, please visit the 'Webcasts and Events' section of the WCST corporate website, http://corporate.yod.com. Otherwise, the toll-free dial-in is: 877-407-3107; international callers should dial: 201-493-6796.

NEW TRADING SYMBOL

Beginning today and following this morning's earnings call, at 9:30AM Eastern Standard Time, the Company, formerly known as YOU On Demand Holdings, Inc., will continue its trading on the Nasdaq Stock Exchange, but will now be known as Wecast Network, Inc.  The new Company trading symbol will now be, WCST. 

WCST Q3 2016 OPERATING RESULTS

Revenue for Q3 2016 was approximately $1,627,000, as compared to $476,000 for the same period in 2015, an increase of 242%. The revenue increase was primarily attributed to the revenue increase from our cable platform, which comprised 78% of the total revenue for the period.  Revenue for the nine months ended September 30, 2016 was approximately $4,377,000, as compared to $2,984,000 for the same period in 2015, an increase of 47%.

Cost of revenues was approximately $894,000 in Q3 2016, as compared to $900,000 for the same period in 2015.

Gross profit Q3 2016 was approximately $733,000 as compared to gross loss of $424,000 during the same period in 2015. Our gross profit margin percentage was 45% and -89% for Q3 2016 and Q3 2015, respectively. The increase in gross profit of approximately $1,157,000 was primarily due to the increase of revenue recognized in the third quarter of this year, which was driven by certain significant minimum guarantee contracts signed and executed from cable-based revenue streams, occurring alongside our current business transformation and expansion.

Our selling, general and administrative (SG&A) expenses for Q3 2016, increased approximately $488,000, to $2,320,000, as compared to $1,832,000 for the same period in 2015.

Salaries and personnel costs are the primary components of SG&A, accounting for 51% and 58% of SG&A expenses in Q3 2016 and 2015, respectively. In Q3 2016, salaries and personnel costs totaled $1,193,000, an increase of approximately $131,000, or 12%, as compared to $1,062,000 for the same period of 2015.

The other major components of our SG&A expenses include marketing and promotion expenses, outsourced technology costs, rent and severance. In Q3 2016, these costs totaled $1,127,000, a net increase of approximately $356,000, or 46%, compared to $771,000 for the same period in 2015. The increase was primarily attributed to the increase of bad debt expense and business travel, by $367,000 and $76,000 respectively.  This increase which was offset by a decrease of marketing promotion expenses and outsourcing of R&D costs by approximately $115,000 and $45,000, respectively.

Net loss in Q3 2016 was $2,047,000 for Q3 2016 compared to $2,086,000 in the comparable 2015 period. Basic and diluted loss per share for Q3 2016 was $0.05 as compared to a $0.09 loss per share in the same period in 2015. 

Chairman Bruno Wu stated, "With the name change to Wecast Network now officially complete, we begin a new chapter in the history of this Company.  As we reimagine and build-out our business model into global, vertical, ubiquitous and transactional revenue streams, revenues from the legacy business continue to moderately build off of prior comparative periods.  With that being said, we are working towards completion of the previously announced M.Y. Products deal, which assuming all boxes are checked, can be completed sometime in Q4.  With that deal and infrastructure in place, along with several other previously announced strategic partnerships and joint ventures, the Wecast vision of a smart e-commerce & content media company can continue to take shape.  What Wecast ultimately seeks to achieve is the creation of a value chain of Branding, Content, Commerce and Licensing all intertwined and run in an aggregated, synergetic and interwoven manner on one platform.  This platform will look to capture the massive opportunity that exists when targeting media and content consumers who are now accustomed to the benefits of vertical consumption."

About Wecast Network, Inc. (http://corporate.yod.com)

Wecast Network, Inc. (NASDAQ: WCST) is leveraging and optimizing its current operations as a premium content Video On Demand service provider in China to evolve into a global, vertical, ubiquitous and transactional B2B2C, mobile-driven, consumer management platform for both enterprises and consumers.  By aiming to establish the world's premier multimedia, social networking and smart e-commerce-enabled network with the largest global effective connected user base, Wecast, through this expanded, cloud-based, ecosystem of connected screens combined with strong partnerships with leading global providers, will be capable of delivering a vast array of WCST/YOD–branded products and services to enterprise customers and end-use consumers - anytime and anywhere, across multiple platforms and devices.  

Wecast has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal and Twentieth Century Fox Television Distribution, Miramax, as well as a broad selection of the best content from Chinese filmmakers.  In addition, the Company has governmental partnerships and licenses as well as numerous JV partnerships and strategic cooperation agreements with an array of distribution and content partners in the global new media space. Wecast is headquartered in both New York, NY and Beijing, China.

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

CONTACT:
Jason Finkelstein    
Director Strategy & IR                         
Wecast Network, Inc.                                    
212-206-1216                                              

Financial Tables Follow

SOURCE Wecast Network, Inc.

Related Links

http://corporate.yod.com