[RawAlex]

A drop in revenue from pay-per-view movies cut into New Frontier Media Inc.'s profits in its second quarter.

The Boulder company (NASDAQ: NOOF) closed the second quarter of its fiscal year on Sept. 30. New Frontier Media produces and distributes adult movies.

The company's largest revenue source -- from pay-per-view entertainment -- declined by 33 percent, to $5 million, from last year. New Frontier said a renegotiated agreement with a "key" customer in October 2006 means the company is getting less money from "our historical revenue split."

New Frontier Media did not identify the customer.

The 33 percent drop in pay-per-view revenue pushed the company's total revenue down to $12.4 million from $16.2 million a year earlier. For the first six months of the fiscal year, revenue dropped to $25.3 million from $32.4 million a year earlier.

New Frontier Media said profits fell to $2.1 million in the second quarter from $3.6 million a year earlier. For the first half of the fiscal year, profits declined to $3.6 million from $7.2 million a year earlier.

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Revenue took a shitkicking, and as a result profits dropped in half. It would appear that deal that they redid the revenue split on apparently significantly impacted revenue.