Gaiam, Inc. (Nasdaq: GAIA), a green lifestyle-media company reported Q1 results.
Revenue increased 13.0% to $58.5 million from $51.8 million recorded in Q106. Gross margin for remained strong at 64.1% of revenue, consistent with the comparable period last year. This solid margin reflects the Company’s continued emphasis on media and proprietary products.
Net income for the first quarter doubled to $1.8 million or $0.07 per share from $0.9 million or $0.04 per share in the first quarter of 2006. Depreciation and amortization for the quarter was $2.3 million.
During the first quarter of 2007 Gaiam generated record cash of $8.3 million from its operations compared to a use of $1.0 million cash in the same period last year. Gaiam’s cash position at March 31, 2007 remained strong at $83 million, even after the repurchase of 2.5 million shares of common stock and two content licensing agreements funded during the first quarter. As of the end of the quarter, Gaiam had approximately 24.7 million common shares outstanding. Gaiam continues to have no debt.
During the first quarter of 2007, Gaiam entered into exclusive content licensing deals with TAG Entertainment and The Brainy Baby Company. TAG Entertainment is a film production company specializing in family entertainment featuring known Hollywood stars. The agreement provides for exclusive distribution rights of existing TAG titles as well as a first look opportunity to license video rights to new family films produced by TAG.
The Brainy Baby Company is a leader in educational entertainment for children 5 and under. The agreement covers approximately 40 existing titles under the “Brainy Baby,” “First Impressions” and “Bilingual Baby” brands as well as production rights to future Brainy Baby titles.
According to Nielsen’s VideoScan, Gaiam’s market share in the fitness/wellness DVD category increased to 48% at the end of March, up from 42% in the same quarter last year and 45% at the end of last quarter.
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