Gaiam, Inc. (Nasdaq: GAIA), a lifestyle media company, announced increased revenue for the year ending December 31, 2007.
The company said revenue increased 19.8% to $262.9 million from $219.5 million for 2006.
Gross profit increased 20.0% to $168.4 million or 64% of revenue during 2007 from $140.3 million or 63.9% of revenue during 2006. The increase over 2006 was primarily due to higher margin international sales and subscriptions.
Net income for the year increased 51% to $8.5 million, as compared to net income of $5.6 million, for the year ended December 31, 2006. Earnings per share for the year increased 48% to $0.34, from $0.23 per share for the last fiscal year.
Operating income for 2007 increased 85.3% to $10.5 million, or 4.0% of revenue, compared to operating income of $5.6 million, or 2.6% of revenue, in 2006.
For the fourth quarter of 2007, Gaiam revenue increased to $81.8 million from $72.8 million for the same period last year. Earnings per share for the fourth quarter was $0.17, and depreciation and amortization was $3.7 million.
During the year, Gaiam strengthened its community by acquiring Zaadz, a leading social networking site; LIME Media, a multimedia lifestyle company; and a majority ownership of Conscious Enlightenment, an online and offline community. Gaiam also entered into a strategic relationship with Care2, a social networking site with 7.5 million members. Additionally, the company expanded its solar business with the acquisition of a solar energy integrator.
Lynn Powers, Gaiam’s President, commented, "We are pleased that we were able to deliver strong internal growth along with an 85% increase in operating income. For 2007, we successfully leveraged our leading media content growing our DVD market share in fitness/wellness to 49.4%. With our market share now approaching 50%, we intend to sacrifice some of the share to achieve a category management role which will increase our revenue and profitability."
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