I think it is what is to be expected. I think I mentioned I was dissappointed to see the wireless lawsuit. That should have been covered in the due dillagence when they bought those assets. I mentioned back then law suits can be quite expensive, even for the winning side.
I believe however, NTN is clearing the decks to make way for a profitable 2005. They should be able to do that. MSO's are ramping up for VOD and ITV. The set tops that NTN prefers are being distributed more every month. NTN is getting out of these lawsuits just like they did with debt agreements and investor lawsuits a couple of years ago.
The Domino's agreement is important. But don't forget it represents service for only 250 stores. NTN has to go out and sell to the other stores. That is both good and bad. Good in that NTN makes more money and less from those sales (if anything) goes to corporate; bad in that it will take time to make the sales and investors see the full potential of that contract.
I see more of the same in the fourth qtr. Then a turnaround to major profitability in 2005.
Haven't had time to examine or read much of the release. Won't be able to get to it and listen to the conf. call till tonight or tomorrow.
The Domino's deal is for 578 stores. The 250 was the number included in the pilot program as of September. It's the franchisees that have to be sold to, and it's unclear how many of the 4200+ are using the PULSE system.
From the press release:
"NTN has been awarded a three-year contract to provide additional technical and support help desk services for all Domino's Corporate stores, as well as becoming the recommended provider to franchisees utilizing Domino's proprietary "Domino's PULSE POS System." Domino's PULSE was originally developed by Breakaway International, whose operations NTN acquired in July 2003, and is now provided and supported by NTN Software Solutions. This new technical and support arrangement is now in effect. Domino's currently has 578 corporate stores and over 4,200 franchisee stores in the United States."
The CC will really tell, but I see growth and increased revenues. Growth brings with it added expenses, these units of NTN are still in growth mode and you should expect continued losses in these areas.
But understand the BIG players don't care, they understand what they see... unlike the rookies around here who spent YEARS bashing, only to fade away to la-la land... sleep tight.
Hospitality is very STRONG
Software is chugging along (not my favorite)
BT is getting ready for EXPLOSION!
I am a little disappointed. Or at least underwhelmed.
Revenues continue to go up but their loss never narrows. ALways "something" to increase the loss but different each quarter. hard to predict.
the network is still doing well, more sites added. Don't know if churn is down or sales or up, or both, but nice to see.
wireless is growing slowlybut produced wider loss. why?
software also grew but widened loss. why?
how much will the domino's deal make a difference?
very little said about Canada operations. not sure how many sites they have or what the strategy is up there.
Buzztime continues to gobble up money but nothing real said about where they are right now. The zone of silence keeps everyone in the dark.
I also find it a bit troubling these guys claim $3.6 mil in goodwill.
Overall I find this quarter more of the same. No break outs, no suprises either way. Everyone thought last year that 2005 would be the year they go into black. not at this rate.
By the way I agree with you about wireless. I can only think there are higher R&D costs. That would make sense.
NTN has been a lot quieter and the silence creates fear of the unknown. I think we need to start looking closer at the financials and NTN should break out costs more for the divisions and Sub.
From an expense standpoint, this is a little worse than mre of the same. But I trust NTN is positioning to show a future profit by dumping expenses now.
Keep the faith. I like the way NTN seems to be taking care of lawsuits. They are getting rid of one time debt now. There will be little to drag down profits as they start to come in.
I don't like Buzztime expenses. But we are operating in the dark. NTN can't say what deals they have going or what version 2.0 of Buzztime will look like for competitive reasons.
We can get a glimpse of where NTN is heading by industry news and by NTN's press releases. I think NTN is well branded and well positioned in several areas for synergistic growth. In fact no other company of NTN's size is so well positioned.
There are big companies getting in the ITV game like Disney, Fox etc. etc. I think one of the late comers is going to pay a hefty premium for NTN to get up to speed.
Personally I will give NTN two or three more qtrs. I don't think it will take that long.
As to "meatball's" statement that NTN has not been profitable, he should remember rule 1: "Past performance does not predict future results." and do his due dillagence on the agreements NTN has, its market position and the improved financials ....or....he can eat another mouthful of spaghetti and a meatball.