Digital media network operator AirMedia Group Inc. (AMCN), Monday said it slipped to a loss from a profit in the same quarter a year ago as expenses increased. The company also provided revenue-forecast for the second quarter.
Beijing, China-based AirMedia Group's first-quarter net loss attributed to the company was $1.25 million or $0.01 per share and $0.02 per ADS, compared to a profit of $7.27 million or $0.05 per share and $0.10 per ADS in the same quarter a year ago.
Adjusted net income for the first quarter declined to $0.57 million or $0.01 per share and $0.02 per ADS from $8.4 million or $0.06 per share and $0.12 per ADS in the first quarter of last year. Adjusted net income excluded share-based compensation expenses and amortization of acquired intangible assets.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.02 per share for the quarter. Analysts' estimates typically exclude special items such as one-time charges or gains.
Loss from operations for the first quarter was $2.264 million, compared to income from operations of $5.334 million in the comparable quarter last year.
Total revenues for the first quarter, however, increased to $31.702 million from $20.419 million in the same quarter a year ago. Wall Street analysts expected first quarter revenues of $31.67 million.
Total operating expenses for the second quarter increased to $8.081 million from $5.355 million in the same quarter a year ago. The company incurred share-based compensation expenses of $285 thousand, which in turn resulted in an increase in selling and marketing expenses for the first quarter, to $3.0 million from $2.4 million in the same quarter a year ago. The company attributed the increase in expenses to the expansion of the direct sales force and higher marketing and promotion expenses.
General and administrative expenses for the first quarter increased 75.6% to $5.1 million from $2.9 million in the first quarter of last year, primarily hurt by higher amortization of acquired intangible assets, increased professional expenses, headcount increase, higher bad debt provision, increased expenses of office and utilities, and higher travel expenses. The expenses also included share-based compensation expenses of $940 thousand.
Looking forward to the second quarter, the company now expects revenues in the range of $36.0 million to $38.0 million. The Street currently anticipates revenues of $38.82 million for the first quarter.
AMCN closed Monday's trading at $5.79, up $0.17 or 3.02%, on the Nasdaq. In the after hours, the stock lost $0.29 or 5.01%, trading at $5.50.
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