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| Operator: |
Good
day and welcome to the IMSI quarterly earnings release conference
call.
Today’s call is being recorded. And at this time I’d like to turn the
conference over to the Chief Financial Officer, Mr. Robert O’Callahan.
Please go ahead sir.
|
| Robert O’Callahan: |
Thank
you and good afternoon. I’m Robert O’Callahan, the Chief Financial Officer
of IMSI and I would like to thank the listeners for joining us
for the
results from our third fiscal quarter ended March 31,
2006.
|
| Martin Wade: |
Thank
you Bob. It’s a great pleasure to be able to review the results from
business in the March quarter and then talk about the merger
with
AccessMedia which we expect to close after our annual meeting
next
week.
|
| Robert O’Callahan: |
Thank
you Martin. For this past quarter the net revenues of $4 million
grew 6.1
on a year over year basis and 6.2 percent sequentially. As mentioned
the
growth drivers were Houseplans and the contribution from
GlobalHousePlans.
|
| Martin Wade: |
Thanks
Bob. I would like to open up the call now to investors who have
any
questions.
|
| Operator: |
Thank
you. … Our first question today comes from Anthony Marchese with Monarch
Capital.
|
| Anthony Marchese: |
Good
afternoon. A question for you regarding AccessMedia. Can you
tell us,
maybe it’s in a filing and I missed it, how the company has been doing
over the last three or four months is my first
question.
|
| Martin Wade: |
Well
let me take the first part of the question. The company - although
we
included in our proxy what they have had in operating results
-- they’ve
really been in a test mode from the time we signed our merger
agreement
with them.
|
| Anthony Marchese: |
Now
let me ask you just as a follow up and then you can get to the
other
question which is really somewhat related. I think originally
you
anticipated putting money into the business correct on an intern
basis -
and I guess the question is did that ever come to pass? Did you
ever have
to put any money in?
|
| Martin Wade: |
You’re
right we did have as part of our joint operating agreement a
commitment
that we made to fund AccessMedia until we closed upwards of $7
million.
And no they have no requested as of today - and I don’t anticipate any
requests between now and closing of any of that
cash.
|
| Anthony Marchese: |
So
again, I’m not trying to put words in your mouth but wouldn’t that suggest
that some how the business is doing better than anticipated?
Or I realize
that they’re not active but obviously the fact that you didn’t have to put
any money in would suggest to me that the business has at least
operated
better than anticipated.
|
| Martin Wade: |
I
think that’s a fair conclusion.
|
| Anthony Marchese: |
OK.
Thanks.
|
| Martin Wade: |
And
where do these kinds of businesses trade? Well, there’s not a really good
comparable because this is such a unique business but we have
certainly
seen things like the Intermix transaction which was a company
that owned
my space was sold for upwards of 10 times revenue and other indications
are that roughly in that seven to 10 times revenue of space is
where these
kinds of company, i.e., internet entertainment companies should
trade.
|
| Anthony Marchese: |
Great,
OK. Well, that should only come to pass. Thank you very
much.
|
| Martin Wade: |
You’re
welcome.
|
| Operator: |
We
do have a follow up from Anthony Marchese. Your line is open
sir.
|
| Anthony Marchese: |
I
guess no one wants to ask a question. Given the fact that the
stock has
appreciated so dramatic I’m a little surprised but in any case - when are
you guys going to go back on the road to retell the story? Are
you going
to wait a little bit or what are your plans in terms of investor
relations?
|
| Martin Wade: |
Yes.
Our plans are that in the first or second quarter after the combination
that we - when I have some data to share we will be back on the
road
telling the story. We would anticipate both in the United States
as well
as Europe.
|
| Anthony Marchese: |
Could
you foresee at some point down the road if AccessMedia is as
successful as
I guess you - and they are hoping that you would somehow separate
the
Houseplans business? My sense is obviously Houseplans is not
going to get
six to 10 times revenue in terms of evaluation. Would you foresee
at some
point to separate the business or sell off the
business?
|
| Martin Wade: |
Well,
we’re always looking at all of our assets and trying to find methods
and
strategies and tactics that can maximize shareholder value. I
think there
is out there clearly a notion among professional investors particularly
and research analysts as well that they like to see a pure play
which is
that you have operations that are focused on one industry with
one set of
products.
|
| Anthony Marchese: |
Right.
OK. Well I cede the floor although I don’t think there’s anyone
else.
|
| Operator: |
I’d
like to turn the conference back to Mr. O’Callahan for any closing
remarks.
|
| Robert O’Callahan: |
Thank
you very much. I will turn it in turn back to Martin who may
have
some.
|
| Martin Wade: |
Thank
you Bob. Well, thank you all for attending and thank you all
for those of
you who are going to listen later on the web cast. Thank you
for the
questions and I hope to see you all at our next quarterly conference
call.
|