UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 17, 2004
NUTECH DIGITAL, INC.
(Exact name of Registrant as specified in charter)
California 000-50021 95-4642831
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification Number)
7900 Gloria Avenue
Van Nuys, California 91406
(Address of principal executive offices)
Registrant's telephone number, including area code: (818) 994-3831
This Form 8-K and other reports filed by the Registrant from time to time with
the Securities and Exchange Commission (collectively the "Filings") contain
forward looking statements and information that are based upon beliefs of, and
information currently available to, the Registrant's management as well as
estimates and assumptions made by the Registrant's management. When used in the
Filings the words "anticipate", "believe", "estimate", "expect", "future",
"intend", "plan" or the negative of these terms and similar expressions as they
relate to the Registrant or the Registrant's management identify forward looking
statements. Such statements reflect the current view of the Registrant with
respect to future events and are subject to risks, uncertainties, assumptions
and other factors relating to the Registrant's industry, operations and results
of operations and any businesses that may be acquired by the Registrant. Should
one or more of these risks or uncertainties materialize, or should the
underlying assumptions prove incorrect, actual results may differ significantly
from those anticipated, believed, estimated, expected, intended or planned.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 17, 2004, the Registrant announced financial results for the
quarter ended March 31, 2004. A copy of the press release is attached hereto as
an exhibit.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit 99 Press Release
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NuTECH DIGITAL, INC.
By: /s/Lee Kasper
-------------------------
Lee Kasper, President
Dated: May 17, 2004
NUTECH DIGITAL REPORTS FIRST QUARTER REVENUES
IMPROVED PRODUCT MIX DRIVE 28% INCREASE IN MARGINS
Van Nuys, CA -- NuTech Digital, Inc. (OTCBB: NTDL), committed to setting the
next generation standard for the provision of secured high resolution
entertainment content over the Internet, announced today results for its first
quarter ended March 31, 2004. The Company reported revenue of $1,031,516 versus
revenue of $1,085,595 for the same period in 2003. Gross Profit increased from
$728,381, or 67% of sales in the year-earlier period to $884,943, or 86% of
sales in the 2004 first quarter. The increase in profit margins was a direct
result of the Company's decision to eliminate sales to certain customers, which
had resulted in lower margins in prior quarters.
The Company reported a net loss of ($124,625), or ($0.01) per share, versus net
income of $140,802, or $0.01 per diluted share in the 2003 first quarter. The
loss was primarily the result of a significant increase in non-recurring, one
time legal and consulting expenses in connection with the completion of a
private placement that provided net proceeds to the company of $2,259,725.
Nutech Digital completed the first quarter with $685,745 in cash and cash
equivalents and working capital of $1,201,164, versus $30,239 and a working
capital deficit of $826,635 in 2003. The Company also reduced long-term debt
from $1,411,253 in the 2003 first quarter to $1,059,296 in the 2004 first
quarter.
"Nutech Digital is in the strongest position in its history," said Lee Kasper,
Chairman, President and CEO for NuTech. "Our balance sheet has dramatically
improved, and our rapidly growing revenue base is more diverse and stable than
it has ever been. Due to these factors, we were able to eliminate lower-margin
business to focus on those customers that purchase higher-margin titles from us.
Our recently announced contract with one of the largest national discount
chains, which was in excess of $1 million, demonstrates that we are executing
our growth strategy. This agreement, and numerous other initiatives currently
underway, should ensure that we grow revenue and profits significantly
throughout the balance of the year."
"Furthermore, what has me most excited is the opportunities for our Digital
Rights Management ( DRM) technology," continued Mr. Kasper. "We have begun to
generate significant interest from major national and international
entertainment companies who realize that the only way to ensure broad
distribution of their content is to protect it. NuTech offers a unique solution
to this growing need."
About NuTech Digital
NuTech Digital is a pioneer in the home entertainment product market, with more
than 600 exclusive DVD titles and a growing library of High Definition music
concerts. NuTech Digital offers original and licensed content via a worldwide
network of distributors, retailers and Internet entities. NuTech Digital also
has broadcast availability, DRM, and video on demand for many of its new
products. NuTech Digital recently introduced its DRM technology, which enables
the secure distribution of high-resolution digital content via the Internet.
(www.nutechdigital.tv) NuTech' Digital's DRM platform allows its feature films,
concerts, children's animated films, karaoke software, Japanese animation and
late night programming to be accessed via secure downloads, and included in
online subscription services. NuTech Digital also facilitates authoring services
to content providers in the entertainment industry.
Cautionary Statement
This press release contains forward-looking statements that involve risks,
uncertainties and assumptions that if they never materialize or prove incorrect,
could cause NuTech Digital, Inc.'s results to differ materially from those
expressed or implied by such forward-looking statements. All statements other
than statements of historical fact are statements that could be deemed
forward-looking statements, including any projections of earnings, revenue, or
other financial items, any statements of the plans, strategies, and objectives
of management for future operations, any statements concerning proposed new
products, services or developments, any statements regarding future economic
conditions or performance, statements of belief and any statements of
assumptions underlying any of the foregoing. These statements are based on
expectations as of the date of this press release. Actual results may differ
materially from those projected because of a number of risks and uncertainties,
including those detailed from time to time in NuTech Digital, Inc.'s reports
filed with the Securities and Exchange Commission.
For more information contact:
NuTech Digital, Inc:
Joe Giarmo
818-994-3831 x 12
joe@nutechdvd.com
Jens Dalsgaard
Redwood Consultants, LLC
(415) 884-0348