Raleigh, North Carolina-based mobile distribution company Oasys Mobile has filed a report with the Securities and Exchange Commission that it doesn’t expect to have money to repay $8 million in debts when they come due on June 30…it needs to raise money to refinance or pay off the debt but is also considering a merger, acquisition or strategic investment, reports the News & Observer. For the full year 2006 Oasys had revenue of $8.7 million, an 11 percent increase year-on-year, but its net loss more than doubled to $14.6 million.
Under new CEO Doug Dyer the company is changing tactic, and abandoning its online D2C effort that sold games, ringtones and wallpapers. Instead, Oasys will focus on creating mobile content for brands such as Mattel, Hooters and National Lampoon and running its gatekeeper business for Sprint Nextel—it hopes to offer the same services to other mobile operators. Dyer thinks the last quarter of 2006 was a “turning point” and the company will be profitable in 2007. According to the earnings report: “Total revenue for the fourth quarter of 2006 increased by 35.4 percent to approximately $2.64 million, as compared to total revenue of approximately $1.95 million for the fourth quarter of 2005. This was also an increase of 24.8 percent in total revenue over the third quarter of 2006.”
Earnings release
Related stories:
—Industry Moves: Oasys Gets New CEO
—Oasys Q3 Results—Revenue Up Slightly, Losses Up A Lot
—Sprint Nextel Outsources Some Content Acquisition