Revenue increases by 24% - Generates Profit for 22nd time in a Row
VANCOUVER, WA / ACCESSWIRE / May 26, 2020 / Adaptive Ad Systems, Inc. (OTC PINK:AATV), a company that provides Dynamic Digital Ad Insertion (DDAI) via its streaming media hardware and proprietary processing software for the U.S. cable TV and Satellite markets, today reports another profitable quarter for the first quarter of 2020 for the 22nd time in a row.
In connection with the Company's financial results for the first quarter, J. Michael Heil, CEO of Adaptive Ad Systems stated: "Although the first few months of this year have been difficult times for all Americans, our team at Adaptive has been able to stay the course, continue progress on the new projects we are currently working on and generate increased revenue producing another profitable quarter for the 22nd time in a row.
"Revenue during election years typically increases, based on the substantially increased demand for television advertisements by political campaigns. Based on the unprecedented breakdown of businesses nationwide during the first quarter of 2020 and the subsequent cancelation of most election ads and campaign activities, the first quarter did not produce the results we originally expected. Nevertheless, we have been able to increase revenue and produce a net profit for the quarter."
Revenues increase by twenty-four percent (24%)
For the first quarter 2020 revenues were $1,315,036 compared with $1,062,998 during the same period in 2018, an increase of twenty-four percent (24%). This improved performance was based on the continuing build out of our network and the addition of new subscribers.
Net Profit increases by twenty-three percent (23%)
Net Profit increased from $219,913 in Q1 2019 to $272,159 in Q1 2020, an increase of 23%.This increase was based on management's mission statement to do more with less people, accordingly keeping overhead low, while increasing revenue through the addition of new subscribers.
Mr. Heil adds:" We continue to increase the number of installations of our proprietary hardware and software systems throughout the country. These additional installations, in combination with our unique revenue-sharing business model, allows us to consistently serve new networks and video subscribers. We provide our contracted clients with major ad campaigns that they typically would not have access to, while managing every aspect of the transactions for them, all the way from providing major advertisers to ad insertion and billing.
"While political campaign advertising expenditures have not yet commenced, indications are that such expenditures have only been temporarily postponed. Results for April and the first half of May, and comments from advertising clients, indicate campaigns anxiously awaiting the right time to commence aggressive spending. Consequently, we believe ad spending currently held in reserve will result in increasing revenue to the Company before the end of this fiscal year. This has the potential to make this our best year yet for revenue generation."
Adaptive's technology now dynamically and economically serves over 210 designated marketing areas in the United States and the Company has deployed over 160 systems in approximately 34 states in the US.
ABOUT ADAPTIVE AD SYSTEMS INC.
Adaptive Ad Systems Inc. is a digital media and video communications streaming Company that together with its subsidiary manufactures develops and deploys ad insertion and streaming media hardware and proprietary processing software (DDAI) for the cable TV, Satellite, and IPTV markets. Adaptive is focused on the 2nd and 3rd tier cable company networks. Its digital ad insertion technology and unique profit-sharing model overcomes the barriers that typically prevent the insertion of National and Local advertising products into those network locations. Adaptive exclusively sells all available advertising in each market it has contracted, maintains technology ownership, and has implemented a unique and advantageous profit-sharing model with its clients. Adaptive also provides broadband and cable TV services in some niche markets. For additional information, please visit: www.adaptiveadsystems.com.
FORWARD-LOOKING STATEMENTS
Any statements contained in this press release that do not describe historical facts constitute forward-looking statements. Forward-looking statements may include, without limitation, financial projections, statements regarding the plans and objectives of management for future operations, the development, regulatory approvals and commercialization of the Company's products, or any of the Company's proposed services, systems, services, partnerships or acquisitions. Such forward-looking statements are not meant to predict or guarantee actual results and performance and actual events or results may differ considerably. Factors that may cause actual results to differ materially from any projections may include, without limitation, the Company's inability to obtain additional financing, delays in the development of its products, the impact of significant new or changing government regulation on the industry, existing or increased competition, results of arbitration and litigation, stock volatility and illiquidity, and the Company's general failure to implement the Company's business plans or strategies. The Company assumes no obligation to update any forward-looking statements to reflect any change in events or circumstances that may arise after the date of this release.
ADAPTIVE AD SYSTEMS, INC.
J. Michael Heil, CEO
4400 NE 77th Avenue, Suite 275
Vancouver, Washington 98662
[email protected]
www.aatv.com
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SOURCE: Adaptive Ad Systems, Inc.