Separate Agreement with Domino’s and Wind-down Plans Will Close out Discontinued Operations
CARLSBAD, Calif., Oct. 31 /PRNewswire-FirstCall/ — NTN Buzztime, Inc. (the Company) (AMEX:NTN) , a multi-point social interactive entertainment company, today announced that it has closed on the sale and transfer of the NTN Software Solutions intellectual property assets for its ProHost(TM) table management and reservations systems to a provider of wireless technologies to restaurants, for $215,000 in cash with no contingencies.
Separately, the Company announced it has signed an agreement with Domino’s Pizza, Inc. (DPI) effective December 31, 2007 to discontinue the outsourced software development it has been providing to DPI. As part of the agreement, the Company received $50,000 in cash from DPI in exchange for the release of the non-solicitation terms as per the original contract. Additionally, the Company will wind-down its professional help desk and support and maintenance services as it fulfills its obligations under existing customer agreements.
Both ProHost and the professional help desk services, software development, and support and maintenance, are part of the Software Solutions group in NTN Buzztime’s Hospitality Division, which has been classified as “Discontinued Operations” since the fourth quarter of 2006 and the results have been reported accordingly. Once the wind-down is complete, the Company’s financial results will be free of such Discontinued Operations performance.
“These agreements are consistent with the Company’s stated strategy to divest certain businesses in order to focus both financial and operational resources on our Entertainment Division, which provides entertainment to players in a network of nearly 4,000 restaurants and sports bars in North America and the United Kingdom,” said Dario Santana, Chief Executive Officer, NTN Buzztime. “These actions position the Company to further improve its cash flow as well as its bottom line. We will be able to enter 2008 fully focused on growing our core business while enhancing and expanding our offerings to include exciting new growth initiatives that are also a critical component of our Entertainment Division strategy.”
The Company expects to record a modest fourth quarter gain related to the sale of its intellectual property to the third party. The company expects that once the wind-down is complete, the Company will improve its cash flow by approximately $1.0 million on an annual basis.
About NTN Buzztime, Inc.
NTN Buzztime, Inc., the leader in multi-point social interactive entertainment for more than 20 years, is based in Carlsbad, CA. Buzztime is distributed in-home and out-of-home across broadband platforms including online, cable TV, satellite TV, and in approximately 4,000 restaurants, sports bars and pubs throughout North America and the United Kingdom. Buzztime entertainment is also available on mobile phones, electronic games and books. For more information, please visit http://www.buzztime.com/.