DG FastChannel, a leading provider of digital media services to the advertising, entertainment and broadcast industries, reported Q3 revenue of 25.1 million compared to 18.8 million in the same period of 2006. Consolidated revenue for the quarter includes approximately six weeks of results from Point.360’s ads distribution operations and approximately one month of results from GTN, Inc.’s ads distribution business.
Net income was 2.1 million, or 0.12 per diluted share, compared with net loss of 4.5 million, or a loss of 0.35 per diluted share in the 2006 Q3. In the 2006 third quarter DG FastChannel recorded a non-cash pre-tax charge of 5.1 million to reduce carrying the value of its investment in Verance Corp. convertible preferred stock.
Looking ahead, DG FastChannel CEO Scott Ginsburg said HD digital content distribution will pick up additional momentum. "The imminent opportunities created by the mandate from Congress and FCC for broadcasters to move to the HDTV broadcast standard will support significant long-term revenue growth. With the continued investment in our HD capacities, DG FastChannel is well positioned to process significant additional electronic video deliveries. Our capabilities to send HD advertising, syndication and news content through the company’s electronic networks are evolving, and we are now realizing substantial customer commitment to distribute their HD content in 2008 and beyond."