Medialink Reports Fourth Quarter 2007 Results

NEW YORK, March 31 /PRNewswire-FirstCall/ -- Medialink Worldwide
Incorporated (Nasdaq: MDLK), a leading provider of diversified media services
for professional communicators and marketers and, through its Teletrax(R)
subsidiaries, a leading provider of digital video tracking services to content
owners, today reported financial results for the fourth quarter ended December
31, 2007.
Revenues for the three months ended December 31, 2007, of $8.9 million
decreased by 4.7% from revenues of $9.3 million in the comparable 2006 period.
Revenues from Teletrax(R) digital video tracking services increased $311,000
or 41.2%, but revenues from media communications services decreased $749,000
or 8.7%. Revenues from media communications services decreased due to a
decline in business of $816,000 and $407,000 in the domestic and international
operations, respectively. These decreases were partially offset by revenues
of $369,000 associated with re-billable expenses in the Company's
international operation and an increase in revenues of $105,000 resulting from
a change in foreign currency exchange rates.
For the fourth quarter ended December 31, 2007, Teletrax service revenues
were $1.1 million as compared to $688,000 for the fourth quarter of 2006 and
$879,000 in the third quarter of 2007, increases of 54.2% and 20.7%,
respectively. Teletrax service revenues for the fourth quarter 2007 and 2006
exclude revenues from affiliated parties of $50,000 and $57,000, respectively.
Teletrax incurred an operating loss of $1.1 million in the fourth quarter of
2007 as compared to an operating loss of $823,000 in the 2006 quarter. For
the year ended December 31, 2007, Teletrax service revenues were $3.4 million
as compared to $2.4 million in the comparable 2006 period, an increase of
43.2%. Teletrax service revenues for the full year 2007 and 2006 exclude
revenues from affiliated parties of $236,000 and $252,000, respectively.
The Company incurred an operating loss of $2.1 million in the fourth
quarter of 2007 as compared to an operating loss of $1.1 million in the 2006
quarter. Exclusive of Teletrax, the Company incurred an operating loss of
$1.1 million in the fourth quarter of 2007, compared to an operating loss of
$255,000 in the 2006 quarter.
For the three months ended December 31, 2007, the Company reported a net
loss of $2.2 million, or $0.34 per share. For the comparable period in 2006,
the Company reported a net loss of $1.3 million, or $0.22 per share. The
Company had cash reserves and working capital totaling $12.7 million and $11.9
million, respectively, at December 31, 2007.
"Revenue growth at Teletrax increased over the growth rates we experienced
in the first two quarters of 2007," said Laurence Moskowitz, President and
Chief Executive Officer of Medialink. "We remain proud of our marquee-name
client list and the level of service we provide to our clients, but our
revenue levels remain below our internal projections. We have taken steps to
boost our sales force in an effort to improve the overall sales process and to
develop enhanced services to offer clients and potential clients greater
value. We are also pursuing all avenues to realize the value we believe this
business warrants, and have undertaken a re-evaluation of the overall business
plan for Teletrax, including continuing to explore tracking of video on the
Internet.
"Our media communications services business continues to confront softness
in the marketplace," continued Moskowitz. "This overall climate has continued
into the first quarter of 2008, and we are anticipating a decline in revenues
from this business of approximately $1 million or around 15% from the first
quarter of 2007. We continue our efforts to enhance and streamline our
services and sales process to take better advantage of the breadth of online
and broadcast communications services we offer. We have also undertaken an
initiative to examine each of our service offerings in an effort to better
focus on those services that deliver the most value to our clients and the
Company.
"In addition, earlier today we announced that our board of directors has
approved a program to buy back up to 150,000 shares of our common stock under
specified conditions," concluded Moskowitz.
For the year ended December 31, 2007, revenues increased by $1.7 million,
or 5.3%, to $33.4 million as compared to the comparable 2006 period. Revenues
from Teletrax services increased $1.0 million, or 38.5%, and revenues from
media communications services increased $735,000, or 2.5%. Revenues from
media communications services in 2007 included $631,000 recognized under a
minimum commitment arrangement entered into in connection with the sale of
U.S. Newswire for which no services were provided.
The Company incurred an operating loss of $9.1 million in 2007, compared
to an operating loss of $8.7 million in 2006. Exclusive of Teletrax, the
Company incurred an operating loss of $5.1 million in 2007, compared to an
operating loss of $5.3 million in 2006. The operating losses in the 2007 and
2006 periods include $178,000 and $1.2 million, respectively, for transaction-
specific compensation paid in connection with the sale of U.S. Newswire.
For the year ended December 31, 2007, the Company reported a net loss of
$4.6 million, or $0.72 per share, consisting of a loss from continuing
operations of $7.2 million, or $1.13 per share, and income from discontinued
operations of $2.6 million, or $0.41 per share, relating to additional gain
recognized on the sale of U.S. Newswire. For the year ended December 31,
2006, the Company reported a net loss of $946,000, or $0.15 per share,
consisting of a loss from continuing operations of $6.3 million, or $1.03 per
share, and income from discontinued operations of $5.4 million, or $0.88 per
share, relating to the gain on sale and results of operations of U.S.
Newswire.
Medialink will host a teleconference with a simultaneous webcast at 11:00
a.m. Eastern Time today to discuss the Company's quarterly results and the
overall industry outlook. Participating on the teleconference will be
Laurence Moskowitz, Chairman, President and Chief Executive Officer, and
Kenneth G. Torosian, Chief Financial Officer. To access the teleconference,
please dial 1-866-271-0675 (domestic) or 1-617-213-8892 (international) and
use "30748474" as the passcode, approximately 10 minutes prior to the start
time. The conference call will be webcast live by Thomson Financial and can
be accessed on Medialink's website at www.medialink.com by clicking on the
"Investor Relations" link at the bottom of the page. The webcast is also
being distributed through the Thomson StreetEvents Network via
www.earnings.com (for individual investors) and www.streetevents.com (for
institutional investors). To listen to the webcast, please go to any of these
websites about 10 minutes prior to the start of the call to register,
download, and install any necessary audio software.
For those unable to listen to the live broadcast, a replay will be
available on the Company's Web site or by dialing 1-888-286-8010 (domestic) or
1-617-801-6888 (international), with playback access code "66452014", starting
approximately two hours after the conclusion of the call and available until
April 28, 2008.
About Medialink:
Medialink is a global leader in providing unique news and marketing media
strategies and solutions that enable corporations and organizations to inform
and educate their target audiences with maximum impact on television, radio,
print, and the Internet. The Company offers creative services and multimedia
distribution programs including video and audio news and short-form
programming. Through its majority-owned subsidiaries, Medialink also provides
Teletrax, a global television tracking and media asset management service to
help clients evaluate return on investment from their programming and
advertising efforts. Teletrax is 76%-owned by Medialink and 24%-owned by
Royal Philips Electronics. Based in New York, Medialink has offices in major
cities throughout the United States and an international hub in London. For
additional investor and financial information, please visit the Investor
Relations section of the Company's Web site (www.medialink.com).
With the exception of the historical information contained in the release,
the matters described herein contain certain "forward-looking statements" that
are made pursuant to the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements in this release are
not promises or guarantees and are subject to risks and uncertainties that
could cause our actual results to differ materially from those anticipated.
These statements are based on management's current expectations and are
naturally subject to uncertainty and changes in circumstances. We caution you
not to place undue reliance upon any such forward-looking statements, which
speak only as of the date made. Actual results may vary materially from those
expressed or implied by the statements herein. Such statements may relate,
among other things, to our ability to respond to economic changes and improve
operational efficiency, the benefits of our products to be realized by our
customers, or our plans, objectives, and expected financial and operating
results. Forward-looking statements may also include, without limitation, any
statement relating to future events, conditions or circumstances or using
words such as: will, believe, anticipate, expect, could, may, estimate,
project, plan, predict, intend or similar expressions that involve risk or
uncertainty. These risks and uncertainties include, among other things, our
recent history of losses; our ability to achieve or maintain profitability;
potential regulatory action; worldwide economic weakness; geopolitical
conditions and continued threats of terrorism; effectiveness of our cost
reduction programs; the receptiveness of the media to our services; changes in
our marketplace that could limit or reduce the perceived value of our services
to our clients; our ability to develop new services and market acceptance of
such services, such as Mediaseed(TM); the volume and importance of breaking
news, which can have the effect of crowding out the content we produce and
deliver to broadcast outlets on behalf of our clients; our ability to develop
new products and services that keep pace with technology; the process of
embedding a Teletrax watermark or the watermark itself rendering client
content unsuitable for broadcast; our ability to develop and maintain
successful relationships with critical vendors; the potential negative effects
of our international operations on the Company; future acquisitions or
divestitures, which may adversely affect our operations and financial results;
the absence of long term contracts with customers and vendors; and increased
competition, which may have an adverse effect on pricing, revenues, gross
margins and our customer base. More detailed information about these risk
factors is set forth in filings by Medialink Worldwide Incorporated with the
Securities and Exchange Commission, including the Company's registration
statement, most recent quarterly report on Form 10-Q, most recent annual
report on Form 10-K and other publicly available information regarding the
Company. Medialink Worldwide Incorporated is under no obligation to (and
expressly disclaims any such obligation to) update or alter its forward-
looking statements whether as a result of new information, future events or
otherwise.
(Please see attached financial tables)

MEDIALINK WORLDWIDE INCORPORATED AND SUBSIDIARIES
Summary Financial Information
(Unaudited)
(In thousands, except per-share amounts)

For the three months For the year
ended December 31, ended December 31,
2007 2006 2007 2006

Revenues $8,877 $9,315 $33,405 $31,719

Direct costs 4,148 4,321 15,823 14,001
Selling, general, and
administrative expenses 6,362 5,570 24,697 24,485
Depreciation and amortization 511 502 1,942 1,972

Operating loss (2,144) (1,078) (9,057) (8,739)
Interest income (expense) - net (116) 27 (62) (389)

Loss from continuing
operations before taxes (2,260) (1,051) (9,119) (9,128)
Income tax expense (benefit) (114) 304 (1,928) (2,807)

Loss from continuing
operations (2,146) (1,355) (7,191) (6,321)
Income (loss) from
discontinued operations,
net of tax (15) 22 2,590 5,375

Net loss $(2,161) $(1,333) $(4,601) $(946)

Basic and diluted income
(loss) per common share:
Loss from continuing
operations $(0.34) $(0.22) $(1.13) $(1.03)
Income (loss) from
discontinued operations (0.00) 0.00 0.41 0.88
Net loss $(0.34) $(0.22) $(0.72) $(0.15)

Weighted average number of
common shares:
Basic and diluted 6,428 6,142 6,392 6,108

Supplemental financial
information:
Operating loss exclusive of
Teletrax $(1,060) $(255) $(5,118) $(5,331)
Teletrax operating loss $(1,084) $(823) $(3,939) $(3,408)

Revenue by Business Line:
Media Communications
Services $7,812 $8,561 $29,985 $29,250
Teletrax - service revenue $1,061 $688 $3,397 $2,372
Teletrax - equipment sales $4 $66 $23 $97

MEDIALINK WORLDWIDE INCORPORATED AND SUBSIDIARIES
Summary Financial Information
(Unaudited)
(In thousands)

December 31, December 31,
2007 2006

ASSETS
Current Assets:
Cash and cash equivalents $12,732 $17,031
Accounts receivable - net 4,965 5,319
Inventory - 602
Prepaid expenses 519 287
Prepaid and refundable taxes 743 701
Deferred income taxes 169 107
Escrow funds - 1,927
Other current assets 91 78
Total current assets 19,219 26,052

Property and equipment - net 4,542 4,296
Goodwill 3,429 3,429
Deferred income taxes 217 725
Other assets 738 652

Total assets $28,145 $35,154

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $7,326 $8,377
Income taxes payable - 1,927
Total current liabilities 7,326 10,304

Convertible debentures, net of unamortized
discount of $422 and $727 3,928 4,273
Other long-term liabilities 765 1,049
Total liabilities 12,019 15,626

Stockholders' Equity 16,126 19,528

Total liabilities and stockholders' equity $28,145 $35,154

For more information:
Kenneth Torosian Jordan M. Darrow
Chief Financial Officer Investor Relations
Medialink Worldwide Incorporated Darrow Associates, Inc.
Tel: (212) 682-8300 Tel: (631) 367-1866
IR@medialink.com jdarrow@darrowir.com

SOURCE Medialink Worldwide Incorporated

Kenneth Torosian, Chief Financial Officer, Medialink Worldwide Incorporated,
+1-212-682-8300, IR@medialink.com, or Jordan M. Darrow, Investor Relations,
Darrow Associates, Inc., +1-631-367-1866, jdarrow@darrowir.com, for Medialink
Worldwide Incorporated