DENVER, May 7, 2014 (GLOBE NEWSWIRE) -- Glowpoint, Inc. (NYSE MKT:GLOW), a leading provider of video collaboration services and network solutions, reported financial results for the quarter ended March 31, 2014.
"We have begun 2014 according to plan, delivering modest revenue growth compared to the fourth quarter of 2013 and Adjusted EBITDA growth year-over-year," said Peter Holst, CEO and president of Glowpoint. "The rapid adoption of unified communications and collaboration (UC&C) solutions combined with higher demand for IP-based communication services will require customers to have access to a diverse set of support and help desk requirements, including real-time analytics, advanced monitoring and multi-tiered support systems. In 2013, we set the foundation to develop our next generation IT service management platform for this market by improving our capital structure and financial position, increasing operational efficiencies and hiring key personnel. In 2014, Glowpoint is focused on building out our platform as we continue to invest heavily in systems, product development and partner enablement to drive long-term revenue growth. We are now in the initial stages of onboarding partners and expect continued progress throughout the year.
"Furthermore, I am pleased to welcome key additions to our board of directors. Jim Cohen and Pat Lombardi bring a substantial depth of both industry and domain expertise to complement that of our existing members. I appreciate their commitment to the company and look forward to their future contributions," concluded Holst.
First Quarter 2014 Financial Highlights
- Revenue increased sequentially to $8.0 million in the first quarter of 2014 from $7.9 million in the fourth quarter of 2013. Revenue was $8.5 million for the first quarter of 2013.
- Adjusted EBITDA (a non-GAAP financial measure defined below and reconciled to GAAP in the attached schedule) increased 6% to $0.9 million in the first quarter of 2014 compared with $0.8 million for the same period last year.
- Net cash provided by operating activities was $0.5 million for the first quarter of 2014, compared with $0.3 million for the same period last year.
- The company ended the first quarter with $2.2 million of cash compared with $2.3 million at December 31, 2013.
Recent Company Highlights
- Appointed new board members James H. Cohen, an experienced public company executive with a background in investment banking, corporate law and private equity, and Patrick J. Lombardi, an executive with broad experience in the communications industry, mergers and acquisitions and directorships with public companies.
- Expanded relationship with Russell Reynolds Associates to deploy a complete package of video collaboration network service and managed service support.
- Implemented a global managed service delivery agreement with Regus, the world's largest provider of flexible workspaces.
The results of Glowpoint's operations and financial condition for the three months ended March 31, 2014 are more fully discussed in the company's Form 10-Q for the quarter ended March 31, 2014, filed with the Securities and Exchange Commission (SEC) today. Investors are encouraged to carefully review the Form 10-Q for the quarter ended March 31, 2014 for a complete analysis of Glowpoint's results from operations and financial condition.
Conference Call
Glowpoint will host a conference call at 4:30 p.m. EDT today to discuss the financial results for the first quarter of 2014 and provide updates regarding the business. To view the webcast, please visit http://glowpoint.com/investor-relations. To participate in the teleconference, callers may dial the toll-free number +1 (888) 669-0684 (U.S. callers only) or +1 (862) 255-5361 (from outside the U.S.). For those unable to participate in the live call, a recording of the call will be archived for viewing two hours after the call at http://glowpoint.com/investor-relations.
About Glowpoint
Glowpoint, Inc. (NYSE MKT:GLOW) provides video collaboration, network, and support services to large enterprises and mid-sized companies to support their unified communications (UC) strategies and business goals. More than 1,000 organizations in 96 countries rely on our unmatched experience, business-class support and cloud-based services to collaborate with colleagues, business partners, and customers more effectively. To learn more please visit www.glowpoint.com.
Non-GAAP Financial Information
Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) before depreciation, amortization, interest and other expense, net, taxes, stock-based compensation, impairment charges, acquisition costs, and severance. Adjusted EBITDA is not intended to replace operating income (loss), net income (loss), cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles. Rather, Adjusted EBITDA is an important measure used by management to assess the operating performance of the Company and is used in the calculation of financial covenants in the Main Street Loan Agreement. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Additionally, Adjusted EBITDA, as defined here, does not have the same meaning as EBITDA as defined in certain of our prior Securities and Exchange Commission filings that contain separate reconciliations of EBITDA to net income (loss). A reconciliation of Adjusted EBITDA to net loss is shown in the attached schedules.
Forward looking and cautionary statements
Forward-looking statements in this press release regarding our expectations regarding long-term revenue growth, continued progress in onboarding partners, plans to make investments in our systems, product development and partner enablement and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. These factors, risks, and uncertainties include market acceptance and availability of new video communications services; the non-exclusive and terminable-at-will nature of sales agreements; rapid technological change affecting demand for our services; competition from other video communication service providers; and the availability of sufficient financial resources to enable us to expand our operations, as well as other risks detailed from time to time in our filings with the SEC. We make no representation or warranty that the information contained herein is complete and accurate and we have no duty to correct or update any information contained herein.
INVESTOR CONTACT:
Investor Relations
Glowpoint, Inc.
+1 303-640-3840
investorrelations@glowpoint.com
www.glowpoint.com
| GLOWPOINT, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (In thousands, except par value) | ||
| (Unaudited) | ||
| March 31, | December 31, | |
| 2014 | 2013 | |
| ASSETS | ||
| Current assets: | ||
| Cash | $ 2,186 | $ 2,294 |
| Accounts receivable, net | 3,621 | 4,077 |
| Prepaid expenses and other current assets | 410 | 404 |
| Total current assets | 6,217 | 6,775 |
| Property and equipment, net | 2,826 | 2,867 |
| Goodwill | 9,825 | 9,825 |
| Intangibles, net | 5,684 | 5,998 |
| Other assets | 392 | 421 |
| Total assets | $ 24,944 | $ 25,886 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 901 | $ 950 |
| Current portion of capital lease obligations | 170 | 217 |
| Accounts payable | 1,707 | 1,885 |
| Accrued expenses and other liabilities | 2,182 | 2,277 |
| Accrued dividends | 25 | 20 |
| Accrued sales taxes and regulatory fees | 506 | 590 |
| Total current liabilities | 5,491 | 5,939 |
| Long term liabilities: | ||
| Capital lease obligations, net of current portion | 25 | 43 |
| Long term debt, net of current portion | 10,235 | 10,235 |
| Total long term liabilities | 10,260 | 10,278 |
| Total liabilities | 15,751 | 16,217 |
| Commitments and contingencies | ||
| Stockholders' equity: | ||
| Preferred stock Series A-2, convertible; $.0001 par value | 167 | 167 |
| Common stock, $.0001 par value | 4 | 4 |
| Treasury stock | (30) | -- |
| Additional paid-in capital | 177,745 | 177,357 |
| Accumulated deficit | (168,693) | (167,859) |
| Total stockholders' equity | 9,193 | 9,669 |
| Total liabilities and stockholders' equity | $ 24,944 | $ 25,886 |
| GLOWPOINT, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| and GAAP to Non-GAAP Reconciliation | ||
| (In thousands, except per share data) | ||
| (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2014 | 2013 | |
| Video collaboration services | $ 4,625 | $ 5,136 |
| Network services | 3,028 | 3,068 |
| Professional and other services | 328 | 300 |
| Total revenue | 7,981 | 8,504 |
| Cost of revenue (exclusive of depreciation and amortization) | 4,870 | 4,957 |
| Research and development | 166 | 235 |
| Sales and marketing | 825 | 1,069 |
| General and administrative | 1,910 | 3,087 |
| Depreciation and amortization | 688 | 758 |
| Total operating expenses | 8,459 | 10,106 |
| Loss from operations | (478) | (1,602) |
| Interest and other expense, net | 356 | 383 |
| Loss before income taxes | $ (834) | $ (1,985) |
| Income tax expense (benefit) | -- | -- |
| Net loss | $ (834) | $ (1,985) |
| Preferred stock dividends | 5 | 105 |
| Net loss attributable to common stockholders | $ (839) | $ (2,090) |
| Net loss attributable to common stockholders per share: | ||
| Basic and diluted net loss per share | $ (0.02) | $ (0.08) |
| Weighted average number of common shares: | ||
| Basic and diluted | 34,858 | 27,703 |
| ADJUSTED EBITDA - GAAP to Non GAAP Reconciliation | ||
| Net loss | $ (834) | $ (1,985) |
| Depreciation and amortization | 688 | 758 |
| Interest and other expense, net | 356 | 383 |
| EBITDA | 210 | (844) |
| Stock-based compensation | 233 | 608 |
| Severance | 120 | 399 |
| Operating lease impairment | 225 | -- |
| Acquisition costs | -- | 239 |
| Asset impairment | 101 | 435 |
| Adjusted EBITDA | $ 889 | $ 837 |
| GLOWPOINT, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (In thousands) | ||
| (Unaudited) | ||
| Three Months Ended | ||
| March 31, | ||
| 2014 | 2013 | |
| Cash flows from Operating Activities: | ||
| Net loss | $ (834) | $ (1,985) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||
| Depreciation and amortization | 688 | 758 |
| Bad debt expense | (107) | 26 |
| Amortization of deferred financing costs | 22 | 61 |
| Amortization of debt discount | -- | 30 |
| Loss on impairment/disposal of equipment | 101 | 435 |
| Stock-based compensation | 233 | 608 |
| Increase (decrease) attributable to changes in assets and liabilities: | ||
| Accounts receivable | 564 | 388 |
| Prepaid expenses and other current assets | (6) | 93 |
| Other assets | 8 | 10 |
| Accounts payable | (179) | (293) |
| Accrued expenses and other liabilities | 44 | 133 |
| Net cash provided by operating activities | 534 | 264 |
| Cash flows from Investing Activities: | ||
| Purchases of property and equipment | (434) | (124) |
| Net cash used in investing activities | (434) | (124) |
| Cash flows from Financing Activities: | ||
| Costs for preferred stock exchange | (5) | -- |
| Principal payments for capital lease obligations | (65) | (59) |
| Principal payments under borrowing arrangements | (49) | -- |
| Payment of debt issuance costs | (59) | (133) |
| Purchase of treasury stock | (30) | -- |
| Net cash used in financing activities | (208) | (192) |
| Decrease in cash | (108) | (52) |
| Cash at beginning of period | 2,294 | 2,218 |
| Cash at end of period | $ 2,186 | $ 2,166 |