MURRAY HILL, N.J., May 10, 2012 /PRNewswire/ -- Glowpoint, Inc.
(NYSE Amex: GLOW), a leading global provider of cloud managed video
services, today reported its financial results for the first
quarter ending March 31, 2012.
First quarter revenues for cloud managed video services
("Managed Services Combined" as reported) were $3.3 million, an increase of 5% over the same
period last year. Managed Services Combined represents 49% of
total revenues in the quarter, up from 45% in the prior year
period. Network services revenues for the quarter were $3.1 million, a decrease of 11% over the same
period last year. One-time and event-based revenues ("Professional
and other services" as reported) were $309,000 for the quarter, compared to
$333,000 in the same period last
year.
"We see a strong sales pipeline for our suite of cloud managed
video services, although elongated sales cycles and soft channel
sales have caused slower growth in this period," said Joe Laezza, Glowpoint's president and CEO.
"Various vendors in the video communications space are bringing new
endpoint solutions to the market, which is causing some delay in
enterprise implementations.
"Deal activity has been picking up, and we are well positioned
with our cloud based OpenVideo® solution as the leading
network-neutral and vendor-agnostic solution. We are in the final
stages of closing new significant customer contracts that should
positively impact growth levels in the second half of the year,"
added Laezza.
"The network services component of our business has performed as
anticipated given the technology trend towards converged
networks. It remains a stable component of our product
offerings for customers that require connectivity to our OpenVideo®
cloud," commented Laezza.
Adjusted EBITDA (as defined and reconciled to GAAP) for the
first quarter was $717,000, an
increase of $293,000 or 69% over the
same period last year. Adjusted EBITDA margin was 11% compared to
6% in the same period last year. Net income for the first quarter
was $172,000, an increase of
$140,000 over the same period last
year.
"Adjusted EBITDA progression continues due to prudent cost
controls and the inherent operating leverage in our business model.
We have delivered six consecutive quarters of positive Adjusted
EBITDA while at the same time aggressively investing in sales and
marketing. We will continue to grow our sales force and invest in
marketing activities to address the demand for cloud managed video
services and are confident that we can achieve sales growth and
meet our long term objective of a 20% EBITDA margin," stated
Laezza.
Key Business Metrics
- Number of managed telepresence and video conferencing rooms
increased 47% to 1,229 for the first quarter as compared with the
same period a year ago.
- Number of managed conferences increased 46% to 18,987 for the
first quarter as compared with the same period a year ago.
- Number of certified enterprise video systems on
OpenVideo® increased 14% to 45,215 for the first quarter as
compared with the same period a year ago.
For the first quarter ended March 31,
2012, capital expenditures were $109,000, and as of May
10, 2012 there were 25,788,407 shares of common stock
outstanding.
Interim CFO Appointment
The company recently announced the departure of John McGovern as CFO effective May 11, 2012
after the first quarter earnings filing. John is moving on to
pursue a new opportunity. With his departure, Tolga Sakman, Glowpoint's SVP of corporate
development and strategy, has been appointed interim CFO in
addition to his current responsibilities.
Teleconference
Glowpoint will host a conference call at 4:30 p.m. EDT today to discuss the financial
results for Q1 2012. To view the webcast, please visit:
http://video.webcasts.com/events/glow001/42582/. To participate in
the teleconference, callers may dial the toll free number +1
877-407-1869 (U.S. callers only) or +1 201-689-8044 (from outside
the U.S.). For those unable to view or participate in the live
call, a recording of the call will be archived for viewing two
hours following the call at
www.glowpoint.com/investor-relations.
Supporting Link:
- Glowpoint Investor Information
About Glowpoint
Glowpoint, Inc. (NYSE Amex: GLOW) provides cloud managed video
services that make the delivery of consistently high-quality video
conferencing and telepresence service as simple as using the
internet, between any technology, network and business. Using our
OpenVideo® cloud architecture, Glowpoint enables
organizations of all sizes to adopt business-class video easily,
scale instantly and collaborate openly, yet securely across
technology boundaries – to realize the full value of visual
communications. To learn more please visit www.glowpoint.com.
Non-GAAP Financial Information
Adjusted EBITDA is defined as income from continuing operations
before depreciation, amortization, interest expense, interest
income, sales taxes and regulatory fee expense or benefit,
stock-based compensation, and severance. Adjusted EBITDA margin is
calculated by dividing Adjusted EBITDA by total revenues. Adjusted
EBITDA is not intended to replace operating income, net income,
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. 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 our Securities and
Exchange Commission filings prior to this date. A reconciliation of
Adjusted EBITDA to net income from continuing operations is shown
below.
Forward looking and cautionary statements
The information in this release may contain statements that 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 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 Securities and Exchange Commission. We
make no representation or warranty that the information contained
herein is complete and accurate; we have no duty to correct or
update any information.
INVESTOR CONTACT:
Investor Relations
Glowpoint, Inc.
+1 973-855-3411
investorrelations@glowpoint.com
www.glowpoint.com
GLOWPOINT, INC.
CONSOLIDATED BALANCE SHEETS
(In
thousands, except par value)
(Unaudited)
|
|
|
March 31,
|
|
December 31,
|
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
2,049
|
|
$
1,818
|
Accounts receivable, net of
allowance for doubtful accounts of
|
|
|
|
$146 and $147, respectively
|
|
2,563
|
|
2,520
|
Prepaid expenses and other
current assets
|
|
281
|
|
330
|
Total current assets
|
|
4,893
|
|
4,668
|
Property
and equipment, net
|
|
4,385
|
|
4,738
|
Other
assets
|
|
31
|
|
59
|
Total assets
|
|
$
9,309
|
|
$
9,465
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Revolving loan
facility
|
|
$
750
|
|
$
750
|
Current portion of capital
lease
|
|
180
|
|
177
|
Accounts payable
|
|
1,122
|
|
1,382
|
Accrued expenses
|
|
864
|
|
1,024
|
Accrued sales taxes and
regulatory fees
|
|
537
|
|
434
|
Customer deposits
|
|
167
|
|
139
|
Net current liabilities of
discontinued operations
|
-
|
|
50
|
Deferred revenue
|
|
203
|
|
235
|
Total current liabilities
|
|
3,823
|
|
4,191
|
Noncurrent
liabilities:
|
|
|
|
|
Capital lease, less current
portion
|
|
288
|
|
334
|
Total noncurrent liabilities
|
|
288
|
|
334
|
Total liabilities
|
|
4,111
|
|
4,525
|
|
|
|
|
|
Commitments and contingencies
|
|
-
|
|
-
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock Series B-1,
non-convertible; $.0001 par value
|
$
10,000
|
|
$
10,000
|
Preferred stock Series A-2,
convertible; $.0001 par value
|
297
|
|
297
|
Common stock, $.0001 par
value
|
|
3
|
|
3
|
Additional paid-in
capital
|
|
159,425
|
|
159,339
|
Accumulated
deficit
|
|
(164,527)
|
|
(164,699)
|
Total stockholders' equity
|
|
5,198
|
|
4,940
|
Total liabilities and stockholders' equity
|
|
$
9,309
|
|
$
9,465
|
|
|
|
|
|
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,
|
|
|
2012
|
|
2011
|
|
|
|
|
|
Managed
Services Combined
|
|
$
3,297
|
|
$
3,137
|
Network
services
|
|
3,140
|
|
3,511
|
Professional and other services
|
|
309
|
|
333
|
Total
revenue
|
|
6,746
|
|
6,981
|
|
|
|
|
|
Network
and infrastructure
|
|
2,076
|
|
2,412
|
Global
managed services
|
|
1,696
|
|
1,894
|
Sales and
marketing
|
|
986
|
|
921
|
General
and administrative
|
|
1,350
|
|
1,407
|
Depreciation and amortization
|
|
440
|
|
276
|
Total
operating expenses
|
|
6,548
|
|
6,910
|
Income
from operations
|
|
198
|
|
71
|
Interest/Financing
|
|
26
|
|
33
|
Income
from continuing operations
|
|
172
|
|
38
|
Loss from
discontinued operations
|
|
-
|
|
(6)
|
Net
income
|
|
$
172
|
|
$
32
|
|
|
|
|
|
Net
income per share:
|
|
|
|
|
Continuing operations
|
|
$
0.01
|
|
$
-
|
Discontinued operations
|
|
$
-
|
|
$
-
|
Basic net income per
share
|
|
$
0.01
|
|
$
-
|
|
|
|
|
|
Continuing operations
|
|
$
0.01
|
|
$
-
|
Discontinued operations
|
|
$
-
|
|
$
-
|
Diluted net income per
share
|
|
$
0.01
|
|
$
-
|
|
|
|
|
|
Weighted average number of common
shares:
|
|
|
|
|
Basic
|
|
24,354
|
|
20,674
|
Diluted
|
|
25,718
|
|
24,703
|
|
|
|
|
|
ADJUSTED EBITDA - GAAP to Non GAAP
Reconciliation
|
|
|
|
|
Income
from continuing operations
|
|
$
172
|
|
$
38
|
|
|
|
|
|
Interest/Financing
|
|
26
|
|
33
|
Depreciation
|
|
440
|
|
276
|
Stock-based compensation
|
|
79
|
|
77
|
Adjusted EBITDA
|
|
$
717
|
|
$
424
|
GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
Cash
flows from Operating Activities:
|
|
|
|
|
|
Net
income
|
|
|
|
|
$
172
|
|
$
32
|
|
Adjustments to reconcile net income to net cash used
in
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
440
|
|
276
|
|
|
|
Amortization of deferred financing costs
|
|
15
|
|
15
|
|
|
|
Bad debt
expense
|
|
21
|
|
(15)
|
|
|
|
Loss on
disposal of equipment
|
|
11
|
|
-
|
|
|
|
Stock-based compensation
|
|
79
|
|
77
|
|
|
|
Increase
(decrease) attributable to changes in assets
|
|
|
|
|
|
|
|
|
and
liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(64)
|
|
(213)
|
|
|
|
|
|
Other current assets
|
|
49
|
|
(91)
|
|
|
|
|
|
Other assets
|
|
12
|
|
(1)
|
|
|
|
|
|
Accounts payable
|
|
(259)
|
|
168
|
|
|
|
|
|
Customer deposits
|
|
28
|
|
(69)
|
|
|
|
|
|
Accrued expenses, sales taxes and regulatory
fees
|
|
(57)
|
|
(351)
|
|
|
|
|
|
Deferred revenue
|
|
(32)
|
|
28
|
|
|
|
|
|
|
Net
cash used in continuing operating activities
|
|
415
|
|
(144)
|
|
|
|
|
|
|
Net
cash provided by discontinuing operating activities
|
|
(50)
|
|
41
|
|
|
|
|
|
|
Net cash provided by (used in) operating
activities
|
|
365
|
|
(103)
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from Investing Activities:
|
|
|
|
|
|
Proceeds from sale of equipment
|
|
11
|
|
-
|
|
Purchases of property and
equipment
|
|
(109)
|
|
(441)
|
|
|
|
|
|
|
Net cash used in investing
activities
|
|
(98)
|
|
(441)
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows from Financing Activities:
|
|
|
|
|
|
Proceeds
from exercise of stock options
|
|
7
|
|
-
|
|
Principal
payments for capital lease
|
|
(43)
|
|
-
|
|
|
|
|
|
|
Net cash used in financing
activities
|
|
(36)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash
|
|
231
|
|
(544)
|
|
|
|
|
|
|
|
|
|
|
|
Cash at
beginning of period
|
|
1,818
|
|
2,035
|
|
|
|
|
|
|
|
|
|
|
|
Cash at
end of period
|
|
|
$
2,049
|
|
$
1,491
|
|
|
|
|
|
|
|
|
|
|
|
(Logo:
http://photos.prnewswire.com/prnh/20111222/LA26621LOGO)
SOURCE Glowpoint, Inc.