Gold Sponsors
Array Telepresence Logo   Human Productivity Lab Logo   Ashton Bentley Logo
Silver Sponsors
Bronze Sponsors
Telepresence Options Magazine

Latest Telepresence and Visual Collaboration News:
Full Article:

Glowpoint Profit Margin May Rise to Almost 50% in 09

January 7, 2009 | Chris Payatagool

glowpoint_160x53px.jpgBy Don Jeffrey

Jan. 6 -- Glowpoint Inc., the provider of Internet-based teleconferencing services to the National Football League, sees its profit margin rising to almost 50 percent this year as it strives toward positive cash flow.

"We believe we'll inch toward a 50 percent gross margin by the end of 2009 by driving revenue that has a higher margin," Chief Executive Officer Michael Brandofino said today in an interview.

The gross margin -- profit as a percentage of sales after product costs are subtracted -- rose to at least 42 percent in 2008 from 33 percent in 2007, he said.

Glowpoint sees businesses turning more to videoconferencing as a way to reduce employee travel costs. About 70 percent of Glowpoint sales come from recurring monthly revenue for managing companies teleconferencing systems.

Its lower-margin business, selling non-Web-based telecom accounts for about 10 percent of revenue, is declining "on purpose,"  Brandofino said. New managed-service contracts have margins above 50 percent, he said.

"Our goal for 2009 is to be cash-flow positive for the overall year," said Brandofino. "We were not positive in 2008 because we won key contracts and had to invest in technology. We couldn't miss an opportunity to invest and stay in the game." Brandofino said in July that the Hillside, New Jersey-based company was targeting 2008 to reach positive cash flow.

[via bloomberg.com]
 







Add New Comment

Telepresence Options welcomes your comments! You may comment using your name and email (which will not be displayed), or you may connect with your Twitter, Facebook, Google+, or DISQUS account.