Tuesday, June 18, 2013 Last update: 7:34 PM
Company Tech News as it Breaks
Glowpoint Reports Fourth Quarter and Full Year 2012 Results
Submitted by admin on 3/7/2013 @ 1:03 PM
Companies mentioned in this article:
Glowpoint, Inc.
MURRAY HILL, N.J., March 7, 2013 /PRNewswire/ -- Glowpoint, Inc. (NYSE MKT: GLOW), a leading global provider of cloud managed video services, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2012.
Fourth quarter revenues for cloud managed video services ("Managed Services Combined" as reported) were $5.2 million, an increase of 51% over the same period last year. Managed Services Combined represents 58% of total revenue in the quarter, up from 49% in the prior year period. Network services revenue for the quarter was $3.2 million, a slight decrease of 1% over the same period last year. One-time and event-based revenues ("Professional and other services" as reported) were $538,000 for the quarter, compared to $345,000 in the fourth quarter of 2011.Fourth quarter results include the impact of the acquisition of Affinity VideoNet on October 1, 2012.
Adjusted EBITDA (as defined and reconciled to GAAP) for the fourth quarter was $934,000, an increase of 13% over the same period last year. Due in part to a one-time tax benefit of $2.2 million related to the acquisition valuation, net income for the fourth quarter was $1.2 million, an increase of $938,000 over the same period last year.
"We are pleased to have achieved our primary goals of consistent positive quarterly adjusted EBITDA, greater use of our managed service platform and customer growth through the acquisition of Affinity VideoNet," stated Peter Holst, Glowpoint's chief executive officer. "For 2013, our primary financial goal will be maintaining that profitability while driving revenue growth in the second half of the year based on the expansion of our product mix and the increasing revenue from our automated services."
For the full year ended December 31, 2012, cloud managed video service revenue was $14.9 million, an increase of 17% over the prior year. Network services revenue for the full year was $12.4 million, a decrease of 8% over the prior year. One-time and event-based revenue was $1.8 million, compared to $1.6 million in the prior year.
Adjusted EBITDA for the fiscal year ended December 31, 2012 was $3.1 million, an increase of 24% over the prior year. Adjusted EBITDA margin was 11% compared to 9% in the prior year. Net income for the fiscal year period was $1.1 million, an increase of $681,000 over the prior year.
"We are taking steps to shape a more efficient service delivery solution with higher levels of profitability in 2013," continued Mr. Holst. "Our focus will be on mobility-related services and broadening our ecosystem of solutions for customers, while looking to leverage the powerful growth of tablets and smartphones as video-enabled devices. We intend to sustain our leadership in managing complex and diverse video environments where we have engineering, distribution and scale advantages while investing selectively in relatively new, but rapidly growing segments."
Key business metrics
-- Number of managed telepresence and videoconferencing rooms increased
over 100% to 2,410 for 2012 as compared with 2011
-- Number of managed conferences increased 29% to 78,236 for 2012 as
compared with 2011
-- Number of certified enterprise video systems on the Glowpoint network
increased 12% to 49,112 for 2012 as compared with 2011
For the twelve months ended December 31, 2012, capital expenditures were $740,000, and as of March 5, 2013, there were 28,731,139 shares of common stock outstanding.
Teleconference
Glowpoint will host a conference call at 4:30 p.m. EST today to discuss the financial results for Q4 and Full Year 2012, along with updates on the business into 2013. To view the webcast, please visit:https://glowpoint.webcasts.com. 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 MKT: GLOW) provides cloud and managed video services that make video meetings simple, reliable, and the standard for bringing people together for business meetings. Through our OpenVideo® cloud, we make video meetings the replacement for in person and audio conferencing with our suite of cloud and managed services that permit any device to connect across any network, simply and reliably. Glowpoint supports thousands of clients located in 68 countries and is the trusted partner for leading unified communications providers, telepresence manufacturers, global carriers and A/V integration firms. In addition, Glowpoint offers access to thousands of public videoconferencing facilities to extend businesses reach and provide the ability to meet face to face across the globe without boundaries. To learn more please visit www.glowpoint.com.
Non-GAAP financial information
Adjusted EBITDA is defined as income (loss) from continuing operations before depreciation, amortization, interest expense, interest income, taxes, stock-based compensation, acquisition costs 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.
(Logo: http://photos.prnewswire.com/prnh/20111222/LA26621LOGO)
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)
December 31, December 31,
2012 2011
---- ----
ASSETS
Current assets:
Cash $2,218 $1,818
Accounts receivable, net of allowance for doubtful accounts of
$136 and $147, respectively 4,047 2,520
Prepaid expenses and other
current assets 897 330
--- ---
Total current assets 7,162 4,668
Property and equipment, net 4,256 4,738
Goodwill 9,900 -
Intangibles, net 7,256 -
Other assets 742 59
--- ---
Total assets $29,316 $9,465
======= ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving loan facility, SVB $ - $750
Current portion of capital
lease 240 177
Accounts payable 2,384 1,382
Accrued expenses 1,672 1,024
Accrued sales taxes and
regulatory fees 398 434
Customer deposits 205 139
Net current liabilities of
discontinued operations - 50
Deferred revenue 155 235
Current portion of note 450 -
Current portion of Comerica
Loan 250 -
Current portion of Escalate
Loan - -
Revolving loan facility,
Comerica 780 -
Total current liabilities 6,534 4,191
----- -----
Noncurrent liabilities:
Capital lease, less current
portion 231 334
Note, less current portion 1,878
Comerica Loan, less current
portion 1,750
Escalate Loan, less current
portion 5,920
Total noncurrent liabilities 9,779 334
----- ---
Total liabilities 16,313 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 167 297
Common stock, $.0001 par
value 3 3
Additional paid-in capital 166,481 159,339
Accumulated deficit (163,648) (164,699)
-------- --------
Total stockholders' equity 13,003 4,940
------ -----
Total liabilities and
stockholders' equity $29,316 $9,465
======= ======
GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
and GAAP to Non-GAAP Reconciliation
(In thousands, except per share data)
(Unaudited)
Year Ended Three Months Ended
December 31, December 31,
2012 2011 2012 2011
---- ---- ---- ----
Managed Services Combined $14,932 $12,816 $5,227 $3,472
Network services 12,366 13,387 3,198 3,225
Professional and other services 1,772 1,603 538 345
Total revenue 29,070 27,806 8,963 7,042
------ ------ ----- -----
Network and infrastructure 9,513 9,388 3,216 2,232
Global managed services 7,477 7,350 2,215 1,679
Sales and marketing 4,180 3,506 1,226 879
General and administrative 6,411 5,656 2,027 1,476
Depreciation and amortization 2,085 1,436 784 455
Total operating expenses 29,666 27,336 9,468 6,721
------ ------ ----- -----
Income (loss) from operations (596) 470 (505) 321
---- --- ---- ---
Interest/Financing 574 129 498 36
--- --- --- ---
Income (loss) from continuing
operations (1,170) 341 (1,003) 285
Income (loss) from discontinued
operations - 28 - (1)
Income (loss) before provision for
income taxes $(1,170) $369 $(1,003) $284
======= ==== ======= ====
Provision for income taxes (2,221) - (2,226) -
------ --- ------ ---
Net income 1,051 369 1,223 284
===== === ===== ===
Net income per share:
Continuing operations $0.04 $0.02 $0.04 $0.01
Discontinued operations $ - $ - $ - $ -
Basic net income per share $0.04 $0.02 $0.04 $0.01
===== ===== ===== =====
Continuing operations $0.04 $0.02 $0.04 $0.01
Discontinued operations $ - $ - $ - $ -
Diluted net income per share $0.04 $0.02 $0.04 $0.01
===== ===== ===== =====
Weighted average number of common
shares:
Basic 25,254 22,286 27,593 24,343
====== ====== ====== ======
Diluted 26,656 23,363 29,095 25,492
====== ====== ====== ======
ADJUSTED EBITDA - GAAP to Non GAAP Reconciliation
Income (loss) from continuing
operations $(1,170) $341 $(1,003) $285
Interest/Financing 574 129 498 36
Depreciation 2,085 1,436 784 455
Stock-based compensation 782 232 334 51
Severance 48 349 48 (2)
Acquisition costs 753 - 273 -
Adjusted EBITDA $3,072 $2,487 $934 $825
====== ====== ==== ====
GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended Three Months Ended
December 31, December 31,
2012 2011 2012 2011
---- ---- ---- ----
Cash flows from Operating Activities:
Net
income $1,051 $369 $1,223 $284
Adjustments to reconcile net
income to net cash provided
by (used in)
operating activities:
Depreciation and
amortization 2,085 1,436 784 455
Amortization of
deferred financing
costs 153 62 120 16
Bad debt expense 84 102 (38) 58
Loss on disposal of
equipment 17 35 5 34
Stock-based
compensation 782 234 334 53
Increase (decrease)
attributable to
changes in assets
and liabilities:
Accounts
receivable (410) 84 88 77
Other current
assets (316) 47 (279) 67
Other assets 22 (38) 142 -
Accounts payable 31 (951) 52 (207)
Customer deposits 66 (103) 41 (11)
Accrued expenses,
sales taxes and
regulatory fees (393) (584) (41) (161)
Deferred revenue (80) (6) 2 (30)
--- --- --- ---
Net cash provided by (used in)
continuing operating activities 3,092 687 2,433 635
Net cash (used in) provided by
discontinuing operating
activities (50) 65 - -
--- --- --- ---
Net cash provided by (used in)
operating activities 3,042 752 2,433 635
----- --- ----- ---
Cash flows from Investing Activities:
Acqusition of business, net
of cash (9,783) - (9,783)
Proceeds from sale of
equipment 11 12 - 12
Purchases of property and
equipment (740) (940) (193) (147)
Net cash used in investing
activities (10,512) (928) (9,976) (135)
------- ---- ------ ----
Cash flows from Financing Activities:
Proceeds from exercise of
stock options 12 - 5 -
Principal payments for
capital lease (205) (41) (58) (41)
Costs related to debt
issuance (467) - (366) -
Payment of revolving loan
facility, SVB (750) - (750) -
Proceeds from Comerica Loan 2,000 - 2,000 -
Proceeds from Escalate Loan 6,500 - 6,500 -
Proceeds from revolving loan
facility, Comerica 780 - 780 -
Net cash used in financing
activities 7,870 (41) 8,111 (41)
----- --- ----- ---
Decrease in cash 400 (217) 568 459
Cash at beginning of period 1,818 2,035 1,650 1,359
----- ----- ----- -----
Cash at end of period $2,218 $1,818 $2,218 $1,818
====== ====== ====== ======
SOURCE Glowpoint, Inc.