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Glowpoint Reports Record Results in Second Quarter

August 14, 2009 | Chris Payatagool

glowpoint_160x53px.jpgHILLSIDE, N.J., Aug 12, 2009  -- Glowpoint, Inc., a leading provider of advanced video communications solutions, today announced financial results for the quarter and six months ended June 30, 2009.

Total revenue for the quarter was a record $6.95 million, an increase of more than 7.0% from the same period a year ago and nearly 8.0% from the last quarter. Monthly recurring subscription and related revenue for the quarter was $4.9 million of such amount, up approximately 15.0% year-over-year and 2.4% sequentially. Gross margin for the quarter increased to $3.52 million, a year-over-year increase of 29.7% and 16.3% sequentially. Gross margin continued to substantially improve in the second quarter, growing to 50.7% from 41.8% in the quarter a year ago and 47.0% in the previous quarter. The second quarter income from operations was $0.04 million, which was an improvement from last quarter's loss of $0.96 million and from the loss of $0.48 million from the year ago period. The income from operations was primarily attributable to the improvement in gross margin and increased revenues.

Key highlights for the second quarter of 2009 include the following:

-- Positive Operating Income: For the first time in its history, Glowpoint achieved income from operations for the quarter.

-- Record Revenue Driven by Recurring Revenue Model: Record quarterly revenue of $6.95 million in the second quarter, driven by continued growth of its managed service solutions and other services billed on a monthly recurring basis.

-- Record Gross Margin: Record gross margin of $3.52 million and record gross margin percentage of 50.7%, driven by continued operating scale and efficiency with optimization of costs.

-- Continued Expansion of Telepresence interExchange Network (TEN): Glowpoint has experienced continued expansion of its TEN service offering, with as many as 100 video systems per month being certified to enable easy-to-use, managed business-to-business video communications across the globe. TEN now includes more than 650 businesses and more than 6,200 rooms (both telepresence and traditional) in its global community.

"We're pleased to announce that Glowpoint has positive quarterly operating income and has exceeded 50 percent gross margin for the first time in its history," said David Robinson, Glowpoint's Co-CEO. "These critical milestones highlight the strength of our recurring revenue business model and lay a firm foundation for the Company going forward. While the economy is still challenging and we have more work to do to meet our goals for the third quarter, we remain excited about the opportunities for Glowpoint's managed video service offerings, including connectivity to TEN and its viral growth potential that is being driven by the rapid adoption of telepresence and other high definition video communication solutions."

Glowpoint President and Co-CEO Joe Laezza said, "We are proud and pleased with the progress Glowpoint has made during the past few quarters. We continue to see improved traction in the growing market. There is much more to do and we must remain focused on executing our business plan to accelerate our current momentum and capitalize on our expanding opportunities. The Company's strong position in the industry was highlighted in a recent Frost and Sullivan report that identified Glowpoint as a leading service provider focused on an annual market that it expects will exceed $2 billion by 2013."

Teleconference


Glowpoint will host a conference call at 4:30 pm EDT today to discuss these results and to field questions from investors. Interested participants should call 866-730-5764 and use passcode 82710834. International participants should call 857-350-1588 and use the same passcode.

A recording of the conference call will be available beginning August 12 and will remain archived through August 19, 2009. To listen to the playback, please call 888-286-8010 and use passcode 42047753. For the international playback, dial 617-801-6888 and use the same passcode.

This call is being audio webcast by Thomson Reuters and can be accessed at Glowpoint's website at http://www.glowpoint.com. The audio webcast will also be distributed over Thomson Reuters' Distribution Network to both institutional and individual investors. Individual investors can listen to the call through Thomson Reuters' individual investor center at http://www.earnings.com or by visiting any of the investor sites in Thomson Reuters' Individual Investor Network, such as America Online's Personal Finance Channel, Fidelity Investments(R) (www.fidelity.com), and others. Institutional investors can access the call via Thomson Reuters' password-protected event management site, StreetEvents: http://www.streetevents.com.

About Glowpoint


Glowpoint, Inc. (GLOW) is a leading provider of advanced video communications solutions. Glowpoint's suite of robust telepresence and video communications solutions enable organizations 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 www.glowpoint.com.







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