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Glowpoint Reports Fourth Quarter and Fiscal Year 2009 Results
HILLSIDE, NJ, Mar 31, 2010 (MARKETWIRE via COMTEX) --
Glowpoint, Inc. (OTCBB: GLOW), a carrier-grade provider of managed
services for telepresence and video conferencing, today announced
financial results for the fourth quarter and year ended December 31,
2009, which included record annualized monthly recurring revenue and
positive operating income.
Core revenue was $6.34 million for the quarter, an increase of 14.3%
from the comparable period last year. Total annual revenue was $26.5
million versus $24.5 million in 2008. This included non-core revenue
of $1.3 million in 2009 which decreased from $2.6 million in 2008.
Excluding non-core revenue, which is expected to be eliminated by the
end of 2010, total core revenue grew from $21.9 million in 2008 to
$25.2 million in 2009, a 14.8% increase. The Company anticipates that
its 2010 core revenue growth rate will exceed 20% in 2010. These
increases are primarily attributable to the growth of the Company's
VNOC managed service and Telepresence interExchange Network (TEN)
service offerings. In addition, the Company expects that its
contribution margin will continue to improve throughout the year
driven by the continued reduction of our network and infrastructure
expenses and global managed service costs as a percentage of sales.
Key highlights for the fourth quarter of 2009 include:
-- Managed Video Services Revenue: Increased by $0.7 million, currently
representing 14% of quarterly revenues as compared to 4% in the
previous period
-- Core Revenues: Increased 14.3% to $6.34 million for the quarter from
$5.54 million in the comparable quarter for 2008
-- Lowered Operating Expenses: Excluding income from the one-time reversal
of the sales tax accrual, quarterly operating expenses dropped 8.3% to
$6.94 million in 2009, from $7.57 million for the same period in 2008,
while total quarterly revenues increased.
-- Settlements in Sales Taxes and Regulatory Fees: Reduced accrual for
sales taxes by $3.3 million, from $4.4 million as of last quarter, to
$1.1 million to reflect settlements with taxing authorities and amounts
that management believes can be reasonably estimated
-- Elimination of "Going Concern": With the financing announced by the
Company yesterday, together with its cash flow projections and current
results, the Company eliminated its "going concern" opinion that has
been included since its 2006 financial statements.
-- New Financial Statement Format: Provides greater visibility into our
operations as we execute on our strategy to increase our focus on being
a leading provider of managed video services and hosted cloud-based
services for video applications
"The $3 million financing and improvements in our capital structure,
which we announced yesterday, provide the Company with capital needed
to take advantage of the growing managed video services market," said
Glowpoint Co-CEO David W. Robinson. "We've made a significant amount
of progress and feel the Company is in a great position to achieve
continued positive operating results."
"The video communications market continues its transformation into a
critical component within the unified communications space," said
Glowpoint President and Co-CEO Joseph Laezza. "Now is the time for
Glowpoint to focus on our long term growth and profitability through
strategic alliances and product development initiatives, while
growing our internal sales and marketing efforts. We are extremely
well positioned to capitalize on Glowpoint's leadership in the
expanding market for managed video as an integral and driving force
behind the growth of unified communications."
Conference and Webcast
Glowpoint will host a conference call at 4:30 pm (EDT) today to
discuss the results and field questions from investors. Interested
participants should call (877) 407-1869. International participants
should call (201) 689-8044.
This call is being audio webcast by TalkPoint and can be accessed at
Glowpoint's website at http://www.glowpoint.com or by linking
directly to http://video.webcasts.com/events/glow001/34263.
Institutional investors can also access the call via Thomson Reuters'
password-protected event management site, StreetEvents:
http://www.streetevents.com.
A recording of the webcast will be available beginning March 31,
2010, and will remain archived for one year following the event. To
listen to the archived audio webcast, visit www.glowpoint.com or go
directly to http://video.webcasts.com/events/glow001/34263.
Links
-- Glowpoint's Investor Information
-- Glowpoint on Twitter
About Glowpoint
Glowpoint, Inc. (OTCBB: GLOW) provides carrier-grade, managed
telepresence and video communications services. Glowpoint's suite of
robust telepresence and video conferencing solutions empowers
enterprises to communicate with each other over disparate networks
and technology platforms. Glowpoint supports thousands of video
communications systems in more than 35 countries with its 24/7 video
management services. Glowpoint also powers major broadcasters,
Fortune 500 companies, as well as global carriers and video equipment
manufacturers -- and their customers -- worldwide. To learn more,
visit http://www.glowpoint.com.
The statements contained herein, other than historical information,
are or may be deemed to be forward-looking statements and 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 communication services; the nonexclusive
and terminable-at-will nature of sales agent agreements; rapid
technological change affecting demand for our services; competition
from other video communications 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 Securities and Exchange Commission.
GLOWPOINT, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value and shares)
December 31,
----------------------
2009 2008
ASSETS ---------- ----------
Current assets:
Cash $ 587 $ 1,227
Accounts receivable, net of allowance for
doubtful accounts of $262 and $301,
respectively 3,323 3,090
Prepaid expenses and other current assets 291 294
---------- ----------
Total current assets 4,201 4,611
Property and equipment, net 2,682 2,533
Other assets 31 33
---------- ----------
Total assets $ 6,914 $ 7,177
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 3,232 $ 2,367
Accrued expenses 879 842
Accrued sales taxes and regulatory fees 888 4,535
Customer deposits 308 606
Deferred revenue 259 325
Current portion of capital lease -- 161
---------- ----------
Total current liabilities 5,566 8,836
Long term liabilities:
Accrued sales taxes and regulatory fees, less
current portion 195 --
Senior Secured Notes, net of discount of $240 -- 1,482
Capital lease, less current portion -- 72
---------- ----------
Total long term liabilities 195 1,554
---------- ----------
Total liabilities 5,761 10,390
---------- ----------
Commitments and contingencies
Stockholders' equity (deficit):
Preferred stock, $.0001 par value; 7,500
shares authorized and convertible; 4,509 and
3,790 shares issued and outstanding recorded
at fair value (liquidation value of $33,815
and $28,423), respectively (see Note 12 for
information related to Insider Purchasers -
related parties) 14,275 11,574
Common stock, $.0001 par value; 150,000,000
shares authorized; 66,531,087 and 48,374,954
shares issued; 64,966,196 and 46,810,063
shares outstanding, respectively 7 5
Additional paid-in capital 150,659 172,000
Accumulated deficit (162,405) (185,409)
---------- ----------
2,536 (1,830)
Less: Treasury stock, 1,564,891 shares at cost (1,383) (1,383)
---------- ----------
Total stockholders' equity (deficit) 1,153 (3,213)
---------- ----------
Total liabilities and stockholders' equity
(deficit) $ 6,914 $ 7,177
========== ==========
GLOWPOINT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Year Ended December 31,
----------------------
2009 2008
---------- ----------
Revenue $ 26,540 $ 24,537
Operating expenses:
Network and infrastructure 11,838 12,762
Global managed services 7,476 5,849
Sales and marketing 3,193 3,382
General and administrative 4,465 4,662
Depreciation and amortization 1,056 1,261
Sales taxes and regulatory fees (2,500) (172)
---------- ----------
Total operating expenses 25,528 27,744
---------- ----------
Income (loss) from operations 1,012 (3,207)
---------- ----------
Interest and other expense (income):
Interest (income) expense, net, including $0
and $141 of expense, respectively, for
Insider Purchasers (543) 4,517
Amortization of deferred financing costs,
including $46 for Insider Purchasers -- 448
Loss on extinguishment of debt, including $0
and $99, respectively, for Insider Purchasers 254 1,816
Increase (decrease) in fair value of
derivative financial instruments' liability,
including $0 and $86, respectively, for
Insider Purchasers 1,848 (2,673)
---------- ----------
Total interest and other expense, net 1,559 4,108
---------- ----------
Net loss (547) (7,315)
(Loss) gain on redemption of preferred stock (64) 2,419
---------- ----------
Net loss attributable to common stockholders $ (611) $ (4,896)
========== ==========
Net loss attributable to common stockholders per
share:
Basic and diluted $ (0.01) $ (0.11)
========== ==========
Weighted average number of common shares:
Basic and diluted 52,938 45,477
========== ==========
See accompanying notes to consolidated financial statements.
GLOWPOINT, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
Years Ended December 31, 2009 and 2008
(In thousands)
Additional
Common Paid In Accumulated
Shares Amount Capital Deficit
----------- ----------- ---------- ----------
Balance at
January 1,
2008 47,630 $ 5 $ 162,300 $ (178,094)
Stock-based
compensation
- restricted
stock 745 `-- 394 --
Stock-based
compensation
- stock
options -- -- 353 --
Warrants issued
in connection
with the 2008
Private
Placements -- -- 4,853 --
Series A
Convertible
Preferred
Stock issued
in connection
with the 2008
Private
Placements -- -- -- --
Gain on
redemption of
Series C
preferred
stock -- -- 2,419 --
Costs related
to 2008
private
placements -- -- (538) --
Gain on
elimination of
derivative
liabilities -- -- 2,219 --
Net loss for
the year -- -- -- (7,315)
----------- ----------- ---------- ----------
Balance at
December 31,
2008 48,375 $ 5 $ 172,000 $ (185,409)
Cumulative
effect of
reclassificat-
ion of
warrants (ASC
Topic 815) -- -- (26,173) 23,551
----------- ----------- ---------- ----------
Balance at
January 1,
2009, as
adjusted 48,375 5 145,827 (161,858)
Stock-based
compensation
- restricted
stock 735 `-- 277 --
Stock-based
compensation
- stock
options -- -- 279 --
Loss on
redemption of
Series A
Preferred
Stock -- -- (1,999) --
August 2009
Warrant
Exchange 17,372 2 (2) --
Exercise of
stock options 49 -- 17 --
Series A-1
Preferred
Stock issued
in connection
with the 2009
Private
Placement -- -- -- --
Elimination of
derivative
liabilities -- -- 4,751 --
Gain on
redemption of
Series A-1
Preferred
Stock -- -- 1,935 --
Costs related
to 2009
Private
Placement,
warrant and
Preferred
Stock exchange -- -- (426) --
Net loss for
the year -- -- -- (547)
----------- ----------- ---------- ----------
Balance at
December 31,
2009 66,531 $ 7 $ 150,659 $ (162,405)
=========== =========== ========== ==========
Series A-2
(Note A)
Preferred Stock Treasury Stock
Shares Amount Shares Amount Total
----------- ---------- ----------- ---------- ----------
Balance at
January 1,
2008 -- $ -- 1,565 $ (1,383) $ (17,172)
Stock-based
compensation
- restricted
stock -- -- -- -- 394
Stock-based
compensation
- stock
options -- -- -- -- 353
Warrants issued
in connection
with the 2008
Private
Placements -- -- -- -- 4,853
Series A
Convertible
Preferred
Stock issued
in connection
with the 2008
Private
Placements 4 11,574 -- -- 11,574
Gain on
redemption of
Series C
preferred
stock -- -- -- -- 2,419
Costs related
to 2008
private
placements -- -- -- -- (538)
Gain on
elimination of
derivative
liabilities -- -- -- -- 2,219
Net loss for
the year -- -- -- -- (7,315)
----------- ---------- ----------- ---------- ----------
Balance at
December 31,
2008 4 $ 11,574 1,565 $ (1,383) $ (3,213)
Cumulative
effect of
reclassificat-
ion of
warrants (ASC
Topic 815) -- -- -- -- (2,622)
----------- ---------- ----------- ---------- ----------
Balance at
January 1,
2009, as
adjusted 4 11,574 1,565 (1,383) (5,835)
Stock-based
compensation
- restricted
stock -- -- -- -- 277
Stock-based
compensation
- stock
options -- -- -- -- 279
Loss on
redemption of
Series A
Preferred
Stock -- 1,999 -- -- --
August 2009
Warrant
Exchange -- -- -- -- --
Exercise of
stock options -- -- -- -- 17
Series A-1
Preferred
Stock issued
in connection
with the 2009
Private
Placement 1 2,637 -- -- 2,637
Elimination of
derivative
liabilities -- -- -- -- 4,751
Gain on
redemption of
Series A-1
Preferred
Stock -- (1,935) -- -- --
Costs related
to 2009
Private
Placement,
warrant and
Preferred
Stock exchange -- -- -- -- (426)
Net loss for
the year -- -- -- -- (547)
----------- ---------- ----------- ---------- ----------
Balance at
December 31,
2009 5 $ 14,275 1,565 $ (1,383) $ 1,153
=========== ========== =========== ========== ==========
Note A - In March 2009 the shares of Series A Preferred Stock outstanding
at December 31, 2008 were exchanged for an equal number of shares of newly-
created Series A-1 Convertible Preferred Stock ("Series A-1 Preferred
Stock"). In August 2009 the shares of Series A-1 Preferred Stock then
outstanding were exchanged for an equal number of shares of newly-created
Series A-2 Convertible Preferred Stock ("Series A-2 Preferred Stock")
See accompanying notes to consolidated financial statements.
GLOWPOINT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
----------------------
2009 2008
---------- ----------
Cash flows from operating activities:
Net loss $ (547) $ (7,315)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 1,056 1,261
Bad debt expense 258 257
Loss on extinguishment of debt 254 1,816
Amortization of deferred financing costs -- 448
Accretion of discount on Senior Secured
Notes 23 2,732
Loss on disposal of equipment 8 77
Expense recognized for the decrease in the
estimated fair value of derivative
financial instruments' liability 1,848 (2,673)
Stock-based compensation 556 568
Increase (decrease) in cash attributable to
changes in assets and liabilities:
Accounts receivable (491) (801)
Prepaid expenses and other current assets 3 54
Other assets 2 (5)
Accounts payable 865 793
Accrued expenses 105 1,112
Accrued sales taxes and regulatory fees (3,452) 524
Customer deposits (298) (107)
Deferred revenue (66) (5)
---------- ----------
Net cash provided by (used in) operating
activities 124 (1,264)
---------- ----------
Cash flows from investing activities:
Purchases of property and equipment (1,213) (1,179)
---------- ----------
Net cash used in investing activities (1,213) (1,179)
---------- ----------
Cash flows from financing activities:
Proceeds from preferred stock offering, including
$0 and $13 from Insider Purchaser, respectively 1,800 1,825
Proceeds from exercise of stock options 17 --
Principal payments for capital lease (234) (125)
Purchase of Senior Secured Notes (750) --
Costs related to private placements and preferred
stock and warrant exchange (384) (342)
---------- ----------
Net cash provided by financing activities 449 1,358
---------- ----------
Decrease in cash (640) (1,085)
Cash at beginning of year 1,227 2,312
---------- ----------
Cash at end of year $ 587 $ 1,227
========== ==========
Supplement disclosures of cash flow information:
Cash paid during the year for interest $ 80 $ 100
========== ==========
See accompanying notes to consolidated financial statements.
Year Ended December 31,
----------------------
2009 2008
---------- ----------
Non-cash investing and financing:
Exchange of Senior Secured Notes for Series A-1
Preferred Stock $ 1,076 $ --
Exchange of Senior Secured Notes for Series A
Preferred Stock -- 10,802
Redemption of Series C Preferred Stock -- 4,330
Gain on elimination of derivative liability -- 2,219
Additional Senior Secured Notes issued as
payment for interest including $0 and $48 for
Insider Purchasers, respectively 55 1,459
Costs related to private placements incurred by
issuance of placement agent warrants 42 196
Contact:
Jonathan Brust
Glowpoint, Inc.
(312) 235-3888, ext. 2052
Email Contact
www.glowpoint.com
SOURCE: Glowpoint
http://www2.marketwire.com/mw/emailprcntct?id=D19A6A3016148C11
http://www.glowpoint.com
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