LOS ANGELES, March 23, 2011 /PRNewswire/ -- NeuMedia (OTC Bulletin Board: MNDL), a leading global mobile data services provider, today announced the successful restructuring of its Twistbox Entertainment operating company. The restructuring is part of the Company's overall strategy which began in June with the sale of its UK subsidiary AMV, and leveraging its world-class age verification system to restructure long terms partnerships with distributors, content providers and advertisers.
Under new management, the Company has become operationally EBITDA positive due to restructuring partnerships that have converted debt to equity along with an overall restructure of business divisions that has resulted in annualized savings of about $4.5 million.
As part of the restructuring, the Company has focused on implementing a strategy for aggressive growth focusing resources on strategic verticals of the mobile content ecosystem including distribution, advertising, billing and application development.
The Company intends to seek further growth through a strategy of acquisitions within key verticals along with organic growth, and disciplined attention to operating details and costs.
Rob Ellin, Chairman of NeuMedia, said, "We are very pleased with the restructuring of the business over the last quarter, and with the addition of over 750 million monthly mobile ad impressions combined with our global distribution network across 70 wireless operators in 30 countries believe that our EBITDA profitability will continue to improve over the foreseeable future. The addition of a new management team, strong organic growth and restructuring allows us to return to our strategy of rolling up the mobile space within four key verticals."
Forward Looking Statement
Statements in this news release concerning future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements. These factors include uncertainties as to levels of orders, ability to record revenues, release schedules, market acceptance of new products, changes in economic conditions and market demand, pricing and other activities by competitors, and other risks including those described from time to time in the Company's filings on Forms 10K and 10Q with the Securities and Exchange Commission (SEC), press releases and other communications.
Dave Fore, Client Manager & Senior Research Analyst
SOURCE NeuMedia, Inc.
Released March 23, 2011