DENVER, Nov. 5, 2014 (GLOBE NEWSWIRE) -- Glowpoint, Inc. (NYSE MKT:GLOW), a leading provider of cloud-based video collaboration services and network solutions, reported financial results for the quarter ended September 30, 2014.
"We are pleased to report net income for the quarter and the highest quarterly operating income since 2009," said Peter Holst, President and Chief Executive Officer. "We remain laser focused on the near-term launch of our third generation video service platform encompassing a broad suite of service management, analytics and mobile video applications to drive future revenue growth. Through this investment cycle and evolution in our product mix, we have leveraged our positive cash flow from operations to develop our platform around growth markets in mobile video and unified communication services," concluded Holst.
Third Quarter 2014 Highlights
- Revenue was $8.0 million in the third quarter of 2014, a 4% decrease compared to $8.3 million in the third quarter of last year.
- Net income was $198,000 in the third quarter of 2014, compared with a net loss of $551,000 for the third quarter of last year.
- Income from operations for the third quarter of 2014 was $556,000, compared with a loss from operations of $105,000 for the third quarter of last year.
- Adjusted EBITDA (as defined and reconciled to GAAP below) was $1.4 million in the third quarter of 2014, an 11% increase compared with $1.2 million for the third quarter of last year.
- Generated positive cash flow from operations of $1.6 million for the first nine months of 2014.
- Invested $1.6 million in capital expenditures for the first nine months of 2014, mainly related to the development and build-out of our video service platform and infrastructure.
- The company's cash position was $2.2 million as of September 30, 2014 as compared with $2.3 million at December 31, 2013.
- Advanced our new Reservationless Video platform into Beta. Commercial launch scheduled for January 1st, 2015.
- Advanced our Dynamic Video Meeting Room (VMR) into Beta. Dynamic VMR represents a new service offering and merges a scheduled, higher touch video experience with ad hoc demand. Commercial launch scheduled for Q1 2015.
- Launched Phase 1 of our new IT Service Management platform, which will allow for greatly enhanced monitoring, system management, broader reporting and analytics for our customers' video environments.
The results of Glowpoint's operations and financial condition for the three and nine months ended September 30, 2014 are more fully discussed in the company's Form 10-Q for the quarter ended September 30, 2014, filed with the Securities and Exchange Commission (SEC) on November 5, 2014. Investors are encouraged to carefully review the Form 10-Q for the quarter ended September 30, 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. EST today to discuss the financial results for the third 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 (GAAP). 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 company's loan agreements. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. A reconciliation of Adjusted EBITDA to net income (loss) is shown in the attached schedules.
Forward looking and cautionary statements
Forward-looking statements in this press release regarding our expectations regarding launch dates of new service offerings and future revenue growth, plans to make investments and improvements in our video service platform and systems, 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, 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) | ||
| September 30, | December 31, | |
| 2014 | 2013 | |
| ASSETS | ||
| Current assets: | ||
| Cash | $ 2,153 | $ 2,294 |
| Accounts receivable, net | 3,709 | 4,077 |
| Prepaid expenses and other current assets | 937 | 404 |
| Total current assets | 6,799 | 6,775 |
| Property and equipment, net | 3,390 | 2,867 |
| Goodwill | 9,825 | 9,825 |
| Intangibles, net | 5,057 | 5,998 |
| Other assets | 315 | 421 |
| Total assets | $ 25,386 | $ 25,886 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Current portion of long-term debt | $ 400 | $ 950 |
| Current portion of capital lease obligations | 57 | 217 |
| Accounts payable | 1,274 | 1,885 |
| Accrued expenses and other liabilities | 2,577 | 2,277 |
| Accrued dividends | 35 | 20 |
| Accrued sales taxes and regulatory fees | 486 | 590 |
| Total current liabilities | 4,829 | 5,939 |
| Long term liabilities: | ||
| Capital lease obligations, net of current portion | 5 | 43 |
| Long term debt, net of current portion | 10,885 | 10,235 |
| Total long term liabilities | 10,890 | 10,278 |
| Total liabilities | 15,719 | 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 | (66) | -- |
| Additional paid-in capital | 178,056 | 177,357 |
| Accumulated deficit | (168,494) | (167,859) |
| Total stockholders' equity | 9,667 | 9,669 |
| Total liabilities and stockholders' equity | $ 25,386 | $ 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 | Nine Months Ended | |||
| September 30, | September 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Video collaboration services | $ 4,645 | $ 4,820 | $ 14,165 | $ 14,954 |
| Network services | 3,039 | 3,056 | 9,207 | 9,145 |
| Professional and other services | 274 | 437 | 1,035 | 1,454 |
| Total revenue | 7,958 | 8,313 | 24,407 | 25,553 |
| Cost of revenue (exclusive of depreciation and amortization) | 4,374 | 4,959 | 14,068 | 14,802 |
| Research and development | 273 | 152 | 732 | 560 |
| Sales and marketing | 785 | 868 | 2,528 | 2,934 |
| General and administrative | 1,347 | 1,746 | 4,667 | 6,544 |
| Depreciation and amortization | 623 | 693 | 1,977 | 2,151 |
| Total operating expenses | 7,402 | 8,418 | 23,972 | 26,991 |
| Income (loss) from operations | 556 | (105) | 435 | (1,438) |
| Interest and other expense, net | 358 | 446 | 1,070 | 1,248 |
| Income (loss) before income taxes | $ 198 | $ (551) | $ (635) | $ (2,686) |
| Income tax expense (benefit) | -- | -- | -- | -- |
| Net income (loss) | $ 198 | $ (551) | $ (635) | $ (2,686) |
| Preferred stock dividends | 5 | (185) | 15 | 25 |
| Net income (loss) attributable to common stockholders | $ 193 | $ (366) | $ (650) | $ (2,711) |
| Net income (loss) attributable to common stockholders per share: | ||||
| Basic net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.02) | $ (0.09) |
| Diluted net income (loss) per share | $ 0.01 | $ (0.01) | $ (0.02) | $ (0.09) |
| Weighted average number of common shares: | ||||
| Basic | 34,950 | 31,692 | 34,885 | 29,094 |
| Diluted | 35,769 | 31,692 | 34,885 | 29,094 |
| ADJUSTED EBITDA - GAAP to Non-GAAP Reconciliation | ||||
| Net income (loss) | $ 198 | $ (551) | $ (635) | $ (2,686) |
| Depreciation and amortization | 623 | 693 | 1,977 | 2,151 |
| Interest and other expense, net | 358 | 446 | 1,070 | 1,248 |
| EBITDA | 1,179 | 588 | 2,412 | 713 |
| Stock-based compensation | 156 | 171 | 446 | 861 |
| Severance | 27 | 289 | 160 | 696 |
| Operating lease impairment | -- | -- | 225 | -- |
| Acquisition costs | -- | 40 | -- | 278 |
| Asset impairment/disposal of equipment | -- | 141 | 178 | 680 |
| Adjusted EBITDA | $ 1,362 | $ 1,229 | $ 3,421 | $ 3,228 |
| GLOWPOINT, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (In thousands) | ||
| (Unaudited) | ||
| Nine Months Ended | ||
| September 30, | ||
| 2014 | 2013 | |
| Cash flows from Operating Activities: | ||
| Net loss | $ (635) | $ (2,686) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||
| Depreciation and amortization | 1,977 | 2,151 |
| Bad debt (recovery) expense | (136) | 104 |
| Amortization of deferred financing costs | 67 | 242 |
| Amortization of debt discount | -- | 108 |
| Loss on impairment/disposal of equipment | 178 | 680 |
| Stock-based compensation expense | 446 | 861 |
| Increase (decrease) attributable to changes in assets and liabilities: | ||
| Accounts receivable | 504 | 39 |
| Prepaid expenses and other current assets | (538) | 306 |
| Other assets | 41 | (278) |
| Accounts payable | (611) | 91 |
| Accrued expenses and other liabilities | 267 | 194 |
| Net cash provided by operating activities | 1,560 | 1,812 |
| Cash flows from Investing Activities: | ||
| Purchases of property and equipment | (1,591) | (753) |
| Proceeds from sale of equipment | 4 | 2 |
| Net cash used in investing activities | (1,587) | (751) |
| Cash flows from Financing Activities: | ||
| Costs of preferred stock exchange | (5) | (106) |
| Principal payments for capital lease obligations | (198) | (185) |
| Principal payments under borrowing arrangements | (149) | (780) |
| Advances on borrowing arrangements | 249 | -- |
| Proceeds from issuance of common stock | 118 | -- |
| Payment of equity issuance costs | (4) | -- |
| Payment of debt issuance costs | (59) | (157) |
| Purchase of treasury stock | (66) | -- |
| Net cash used in financing activities | (114) | (1,228) |
| Decrease in cash and cash equivalents | (141) | (167) |
| Cash at beginning of period | 2,294 | 2,218 |
| Cash at end of period | $ 2,153 | $ 2,051 |