New Frontier Media Inc. (NOOF) announced Friday that its first quarter profit declined from last year, as sales growth was offset by higher expenses.
Net income for the first quarter was $1.2 million or $0.05 per share, compared to $1.5 million or $0.06 per share in the prior year quarter. On average, three analysts polled by First Call/Thomson Financial expected the company to earn $0.06 per share for the quarter.
During the latest quarter, the company incurred incremental costs of $0.5 million related to the test of a Direct-to-Consumer IPTV set-top box.
The company's net sales increased 2% to $13.1 million from $12.9 million in the same quarter of last year. The company noted that the year-ago quarter included $0.4 million in net sales from C-Band services that it ceased offering in the third quarter of fiscal year 2008.
Operating expenses for the second quarter increased to $7.2 million from $7.0 million in the second quarter of 2007.
Looking ahead, Michael Weiner, chief executive officer of New Frontier Media, said, "We continue to execute on our growth strategies for our core businesses and expect to see both segment and consolidated top-line revenue growth in this fiscal year."
NOOF is currently trading at $3.54, up 23 cents or 6.95%.
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