New Frontier Media, Inc., and its subsidiary The Erotic Networks, saw its stock climb to third place statewide in a technology stock rally that began in mid-2003.
New Frontier Media specializes in the electronic distribution of adult entertainment content through a variety of outlets including an Internet company, pay-television networks, and a highly successful video-on-demand service.
While technology and telecomm stocks met with a national uptick in 2003, Colorado's state stock index saw incremental growth in the last few months of the year following a three-year slump.
According to the Denver Post, the leaders in Colorado's stock climb were mainly technology and telecommunications companies, which took the top ten spots on the state's list of high performing stocks.
However, the majority of Colorado's high profile companies ended the year on a down note, including Qwest Communications and brew master Coors.
In the state's stock index, New Frontier Media ranked just two slots behind Boulder-based Carrier Access, which came in at 3,200 percent for the year, and Douglas County's Evolving Systems, which came in at 1,103.6 percent, the Denver Post reported.
"We're one of the only companies in the adult entertainment business that invested in its own technology infrastructure," Erotic Networks President Ken Boenish told the Denver Post. "That's really allowed us to take advantage of new opportunities through emerging technologies."
Boenish attributes a great deal of his company's profits to its video-on-demand service, which according to the Denver Post is available in about 95 percent of households that have video-on-demand access.
The company announced an all-time fiscal high for the quarter that ended on September 30, 2003, with a net income for the quarter of $2.8 million, or $0.14 per share, as compared to a net loss of $1.0 million, or $0.05 per common share a year ago.
New Frontier was one of the first adult entertainment companies to sign a licensing agreement with Acacia Technologies Group in September 2003 for use of its DMT streaming media content.
The company has 110 employees and is headquartered in Boulder, Colorado.
Representatives were not available to talk with XBiz at the time of this printing.