HispanicBusiness

College Sports
Athletic portal and online destination for fans

•Launched newly designed Official Athletics website for the Oregon Ducks, goducks.com, bringing video to the forefront. •Designed brand new CAA Gameday, a one stop digital destination for schedules, scores, videos, live stats and more across every school in the Colonial Athletic Association. •Partnered with Horizon Media to deliver Capital One's 2013 Mascot Challenge Campaign across NeuLion NCAA sites. •Addressed the Sports Business Journal Intercollegiate Athletics Forum audience on the topic of maximizing revenue through intellectual property.

TV Everywhere
Multi-device content delivery

•Partnered with the WWE to deliver the Rolling Stones 50th Anniversary Concert on multiple devices worldwide. •Launched UVideos with Univision Communications, a bilingual digital network for Hispanic America offering one of the most fully integrated, comprehensive social experiences available in any language in the U.S. •Partnered with Shaw Communications to deliver Shaw Go NFL Sunday Ticket on iPad. •Powered an enhanced V.2 release of BTN2Go with more HD video, live stats, dynamic ad insertion and social media integration on multiple devices.

Financial Results for the Three Months Ended December 31, 2012:

Revenue was $10.5 million, as compared to $10.7 million for the three months ended December 31, 2011, a decrease of $0.2 million, or 2%.

Cost of revenue, exclusive of depreciation and amortization, was $3.2 million (31% of revenue), as compared to $4.5 million (42% of revenue) for the three months ended December 31, 2011, marking a period-over-period improvement of 11%.

Consolidated net loss was $0.9 million, which includes $1.7 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $0.8 million, as compared to a consolidated net loss of $2.9 million, which includes $2.0 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $(0.9) million for the three months ended December 31, 2011, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $1.7 million.

Financial Results for the Year Ended December 31, 2012:

Revenue was $39.0 million, as compared to $39.7 million for the year ended December 31, 2011, a decrease of $0.7 million, or 2%.

Cost of revenue, exclusive of depreciation and amortization, was $13.7 million (35% of revenue), as compared to $16.4 million (41% of revenue) for the year ended December 31, 2011, marking a year-over-year improvement of 6%.

Consolidated net loss was $10.1 million, which includes $6.8 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $(3.3) million, as compared to a consolidated net loss of $14.4 million, which includes $7.5 million of non-cash and/or non-operating charges, netting a Non-GAAP Adjusted EBITDA of $(6.9) million for the year ended December 31, 2011, marking a year-over-year improvement in Non-GAAP Adjusted EBITDA of $3.6 million, or 52%.

As of December 31, 2012, we had $11.1 million in cash and cash equivalents.

Use of Non-GAAP Measures

We report Non-GAAP Adjusted EBITDA because it is a key measure used by management to evaluate our results and make strategic decisions about our Company, including potential acquisitions. Non-GAAP Adjusted EBITDA represents consolidated net loss before interest, income taxes, depreciation and amortization, stock-based compensation, investment income, loss on dissolution of majority-owned subsidiary and foreign exchange gain/loss. This measure does not have any standardized meaning prescribed by U.S. generally accepted accounting principles (U.S. GAAP) and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP.