Modavox Reports Fiscal 2009 First Quarter Results

Company Reports Year over Year Quarterly Revenue Growth of 43% While Continuing to Accelerate Patent Enforcement Initiatives and Fortifying Foundation to Support Rapid Expansion Plans

PHOENIX - Modavox, Inc. (OTCBB:MDVX - News), Internet broadcasting pioneer and holder of several patented technologies, today reported its fiscal 2009 first quarter results for the quarter ending May 31, 2008.

For the quarter ended May 31, 2008, the Company reported year over year revenues increased 43% to $860,635 compared to $602,338 for the quarter ended May 31, 2007. Revenues for the quarter ended May 31, 2008 included $168,360 from the Interactive Media Division and $692,275 from the Broadcast Media Division. Hosting fees related to our Interactive Agency Division were $81,938 for the quarter ended May 31, 2008 which included $37,500 in deferred revenues from the year ended February 29, 2008. The increase in revenue is related to the Broadcast Media Division sales team expansion, higher contract amounts, and our Interactive Agency production timelines and product delivery.

During the quarter ended May 31, 2008, the Company had loss of $327,142 compared to the loss of $337,831 in the 2007 quarter. Selling, general, and administrative expenses decreased to $634,960 for the quarter ended May 31, 2008 compared with $701,588 for the quarter ended 2007. This reduction resulted from better control over costs and a reduction of various expenses, although the 2008 quarter included legal fees of $151,589, as the Company continues to manage through the various legacy legal challenges by former management and focus on our patent strategies.

Modavox CEO David J. Ide stated, "Our 2009 first quarter results are in line with our internal expectations having resulted in a 43% year over year increase in revenues. Although the revenue growth clearly illustrates notable progress showing the scalability of our business and the growing acceptance of our technology offerings, it is just recently that we have turned our focus on adding sales infrastructure. In recent months we gained the talents of media veterans Steve Kanaval, now running our Las Vegas office, and Penny Rabjohn who is heading up sales of our new Stream Syndicate™ online advertising platform.

“In addition, we have and continue to add additional sales staff as previously announced while continuing to invest considerably in our technology development and the advancement of our patent enforcement and licensing initiatives. The focused effort in the application and protection of our intellectual property has positioned our company well for a much more significant market position. It has also fortified revenue categories such as licensing and pay-per-view that give us unprecedented scale and more ways to win for our shareholders.

“Our established leadership in the Internet Talk Radio space continues to be significantly enhanced through the further addition of new network destinations, improved production capacity, and unmatched content development. Importantly, we continue to see our unique viewer numbers growing to new highs. This is a very positive indicator and key measure of success. The significance of our growth in Internet Radio, new BoomBox™ Video Internet destinations coming online and the ramp up of our Stream Syndicate™ advertising platform is and will continue to be underscored by a growth in unique visitors to Modavox.

“Our strategic business decision to design, create and execute a comprehensive plan in support of our patented process and technologies remains on track. Our commitment to innovation has yielded highly valuable patented intellectual property and we are confident that the actions taken over the last year on this front will soon allow us to begin to reveal its true value.”

About Modavox
Modavox (www.modavox.com) The custom content company is a technologically advanced Internet TV & Radio destination developer. Through category creating content customization and interactive broadcasting technology products our customers are enabled to create, control and produce revenue from Internet delivered content.   Our technology product line provides exclusive Internet TV & Radio, Enterprise, and Advertising applications for customers Worldwide.  Our breakthroughs in customized content delivery technology have produced an industry first and the only complete line of products designed to capture, captivate and maximize effective communication to targeted audiences. 

Forward-Looking Statements
This release contains "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. These forward-looking statements are subject to various risks and uncertainties that could cause Modavox's actual results to differ materially from those currently anticipated, including the risk factors identified in Modavox's filings with the Securities and Exchange Commission.

Contact:

C&H Capital, Inc.
Jason Assad,
678-570-6791 (Investors)

View All Modavox Press Releases»