The FINANCIAL — MediaNet Group Technologies one of a global marketing company that provides consumers around the world with a variety of innovative, online shopping and entertainment opportunities, today announced financial results for the fiscal third quarter and nine months ended June 30, 2012.
Michael Hansen, President and Chief Executive Officer of MediaNet Group, stated, "We are satisfied with our results for the quarter. Our quarterly sales topped $151.9 million, three times greater than the first and second quarter combined sales of $49.5 million resulting in total sales for the nine months ended June 30 of $201.4 million. This quarter was in line with the Company's marketing strategy to attract traffic and business to our websites in order to drive incremental revenue from advertising and marketing programs. The continued enthusiasm for our recently expanded Xpress Gift Card auctions is also in line with our expectations. In addition, we experienced significant growth in our DubLi Network business and have seen increased acceptance of our international shopping malls, which continue to gain traction with many DubLi customers worldwide who appreciate the unique value proposition DubLi offers. The expansion of our customer acquisition program continues to increase traffic and build our DubLi brand. We expect our growth to continue to increase in the fourth quarter of 2012. Our investment in building our infrastructure is continuous and designed to support our future growth and development."
For the third quarter ended June 30, 2012, revenues increased 1,770.5% to $151.9 million compared to $8.1 million for the third quarter ended June 30, 2011.This is in line with the company's marketing strategy to attract traffic and business to our websites in order to drive overall sales volumes and incremental revenue from advertising and partner programs. Gross profit for the quarter was $0.9 million, or 0.6% of revenue, down 75% compared to $3.5 million, or 43.0% of revenue, in the same period of 2011 as a direct result of changing the format of the Xpress auction from low volume high margin goods, to high volume, low margin electronic gift cards. Net loss for third quarter was $2.3 million resulting in a loss per basic and fully diluted share of $0.01, as compared to a net income of $0.8 million, or net income per basic and fully diluted share of $0.00 in the third quarter of 2011. For the third quarter 2012, the weighted average number of basic and fully diluted shares outstanding was 366,506,095 and 381,089,154, respectively as compared to the same period of 2011, when the weighted average number of basic and fully diluted shares outstanding was 319,741,435 and 324,735,748, respectively. Net income or loss per share for both basic and fully diluted is computed on the weighted average number of basic shares outstanding because derivatives are considered anti-dilutive to net loss.
As MediaNet Group Technologies reported, for the nine months ended June 30, 2012, revenues increased 1320.7% to $201.4 million compared to $14.2 million for the nine months ended June 30, 2011. Gross profit for the nine months was $1.5 million, or 0.8% of revenue, compared to $7.2 million, or 50.5% of revenue, in the same period of 2011. Net loss for the first nine months of fiscal 2012 was $8.2 million resulting in a loss per basic and fully diluted share of $0.02, as compared to a net loss of $1.3 million, or a loss per basic and fully diluted share of $0.00 in the first nine months of 2011. For the first nine months of fiscal 2012, the weighted average number of basic and fully diluted shares outstanding was 362,624,526 and 374,144,697, respectively as compared to the same period of 2011, when the weighted average number of basic and fully diluted shares outstanding was 270,679,678 and 274,008,730, respectively. Net loss per share for both basic and fully diluted is computed on the weighted average number of basic shares outstanding because derivatives are considered anti-dilutive to net loss.
MediaNet reports net income or loss on a GAAP and non-GAAP basis. Non-GAAP net income or loss excludes non-cash expenses for depreciation, amortization and for stock-based compensation ("SBC"). In the third fiscal quarter 2012, the charge related to SBC was $1.3 million, compared to $0.9 in the third quarter of 2011 Depreciation and amortization was $0.02 million in the third quarter of 2012, compared to $0.2 million in 2011. The result is that Non-GAAP net loss for the third quarter ended June 30, 2012 was $0.9 million compared to Non-GAAP net income of $2.0 million for the same period in 2011 or 0.6% and 24.7% of revenues, respectively. The non-GAAP measure is reconciled to the corresponding GAAP measures in the accompanying financial tables.
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