By: Dylan Sikes - AllPennyStocks.com News

Friday, May 3, 2013

The progression of on demand and live programming via Internet-connected devices, especially mobile devices, raises the question about the future of television as we know it. Some pundits have argued the ability of the industry’s growth possibilities as well as industry players to be able to expand and capture market share, but so far there doesn’t seem to be any real concerns about consumer demand. Sometimes we like to circle back around to companies that we took a look at previously in a special report to check on developments. In August of 2012, we wrote about New York-based NeuLion, Inc. (TSX:NLN), an enabler and provider of content to devices via the Internet, and how at 20 cents per share the company seemed to have solid upside potential. In March, shares of NLN hit 51 cents, representing gains of 155 percent, and are still trading above 30 cents today.

The catalyst seems to rest in the financials of NeuLion and a portfolio of clients that contains some of the most recognizable names in the world. To deliver premium content, the company has partnered with the likes of the National Football League, National Hockey League, Microsoft, Apple and PlayStation, just to name a few.

NeuLion also recently extended a multi-year agreement with Major League Soccer, a partnership that has expanded subscriptions to MLS Live every year since migration to NeuLion’s platform. The company has also penned an agreement with Bell Canada to launch authenticated streaming services that will deliver live sports and entertainment content on digital devices to Bell Canada subscribers.

After making some changes in early 2012 to shift focus, revenues tapered off modestly, but they’re back on the climb again. NeuLion has now posted back-to-back positive quarters as released on Friday with its report of first-quarter earnings.

For the quarter, NeuLion posted revenue of $11.9 million, up 14 percent from $10.4 million in the year prior quarter, attributed to strong organic growth and complemented by frugal money management.

The cost of revenue, as a percentage, improved from 44 percent last year to 29 percent in the latest quarter. Operating net loss narrowed to $200,000 versus $3.4 million in the first quarter of 2012. Non-GAAP Adjusted EBITDA, which excludes special items, was $1.0 million compared to a loss of $1.9 million last year.

The company ended the first quarter with $15.2 million in cash and equivalents.

"As consumers turn more and more to connected devices, such as iPad, iPhone, Android tablets and phones, gaming devices and connected TVs, NeuLion's technological leadership has made us the vendor of choice for content owners seeking to satisfy that demand. We continue to expect our role in this evolving marketplace to expand," said Nancy Li, chief executive at NeuLion.

Shares of NLN closed in Friday’s trading at 31 cents, or up 10.7 percent on volume of 47,673.

Copyright © 2013 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.