On2 Technologies (AMEX: ONT) announced revenue growth for the seventh consecutive quarter; the video compression software and solutions provider reported $2.8 million in first-quarter revenue, a 131 percent increase over the first quarter last year.
On2 works through companies such as VideoEgg and Brightcove, which target consumers directly, by providing encoding tools for user generated content. Bill Joll took over as On2 CEO last year, and has guided the company through a change in business strategy that contributes to the company’s continual growth.
“The business model is built on a recurring foundation; our success is tied to our customers’ success,” Joll said in an MN1 interview. “We’re actually setting a good solid foundation for growing our business from our base.”
Following the lead of Adobe and Microsoft, Joll said he feels the video compression industry could be huge – and noted the tremendous demand for video that is accessible to consumers in a variety of channels.
“We’re going to capitalize on being part of that trend,” said Joll. “We allow you to watch video anywhere you are.” The company’s results include a 33 percent increase in revenue from the fourth quarter ended Dec. 31, 2006, and even higher increases regarding individual products.
“We achieved 100 percent growth in Flix Engine sales in first quarter 2007 over fourth quarter 2006, as a result of improved sales performance and increasing demand for VP6-based Adobe Flash video,” Joll said in a press release. “Web sales of our Flix desktop products is also on a healthy trajectory, and we are adding new marketing initiatives behind this channel. Our latest generation codec, VP7, is continuing to gain traction as well. We secured a significant deal for our TrueMobile mobile video system using VP7, which provided an unexpected boost to an already exceptional quarter.”
The company reported a first quarter net loss of $721,000, or 1 cent per share, compared with a net loss of $1.1 million, or 1 cent per share in the first quarter of last year. On2 reported cash on hand of $5.3 million at March 31, 2007, as compared with $4.9 million in the fourth quarter ended Dec. 31, 2007.
“We’re a company that’s going to take video to the 3 screens – from the PC to mobile to the TV set, allowing the consumer to view video content wherever and whenever they want to view it,” said Joll.
Shares of ONT were down 6 cents at 2.31 per share on volume of 1,202,300.