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Glowpoint Reports Second Quarter 2010 Results

August 11, 2010 | Chris Payatagool
Glowpoint_logo.jpgHILLSIDE, N.J., Aug. 11, 2010 - Glowpoint, Inc. (OTCBB: GLOW), a global provider of managed services for telepresence and video conferencing, today announced financial results for the second quarter ended June 30, 2010.
 
Combined core revenue for the six months ended June 30, 2010 was $13.60 million, an increase of 7.9 percent from the comparable six-month period of 2009. The Company also had a 7.5 percent increase in quarterly core revenue from the comparable quarter of 2009. Core revenue is made up of recurring subscription and related revenues and non-subscription, usage-based conferencing services.
 
Given the current level of business activity, the Company sees its 2010 core revenue continuing to grow on a sequential quarterly basis, with the higher margin, managed services revenue accounting for the largest component of this growth. The Company's investments in sales, marketing, service development, and operations, despite having a short-term impact on profitability, are expected to be the basis for accelerating growth and improved operating leverage during the second half of 2010 and the following year.
 
Highlights for the Six-Month Period and Second Quarter 
 
Increased Core Revenue: Driven by continued growth in managed video services revenue, which increased by more than 74 percent from the comparable six-month period of 2009, overall core revenue increased 7.9 percent to $13.60 million, for the six-month period, from $12.6 million in the comparable period for 2009, and increased 7.5 percent to $7.08 million, from $6.59 million in the comparable quarter of 2009.
 
Enhanced Global Strategic Partnerships: Glowpoint continues to expand and enhance its partnerships with firms such as TATA Communications and Polycom. These relationships support the go-to-market strategy and product enhancements of Glowpoint's cloud-based suite of managed services.
 
Improved Operating Liquidity: The Company secured a credit facility of $5 million with Silicon Valley Bank to further fund its growth.

Continued Investments in Product Development and Sales and Operating Efficiencies:The Company's investments in sales, marketing, product development, and operations are anticipated to drive continued growth and improved operating margins in the coming quarters. The Company had an adjusted loss from operations of approximately $421,000, which excludes one-time charges, depreciation, and stock-based compensation.
 
Compelling Industry Dynamics: Published industry trends and forecasts indicated accelerated adoption and utilization of telepresence and high-definition video conferencing solutions across the corporate enterprise. The Company is the only publicly traded "pure play" exclusively targeting this growing market.
 
"Our focus continues to be investing in product, sales and marketing, strategic partnerships, and operating efficiencies, and we look forward to seeing a return on these investments in the very near future," said Joe Laezza, Glowpoint's president and chief executive officer. "Glowpoint's services are recognized globally, and we will continue to work to capitalize on our unique position in a dynamic market of unified communications."
 
Ed Heinen, Glowpoint's chief financial officer and executive vice president of finance, further commented, "We are well capitalized, and confident in our cash position and ability to achieve top and bottom line growth, as we enter the second half of this year. We are focused on accelerating our growth rate in the second half of 2010, and beyond, with improved operating leverage. Given the growing, addressable global market opportunity, we believe that our defined approach will build sustainable long-term profitability and enhanced shareholder value."
 
As reported, Glowpoint will host a conference call at 4:30 p.m. EDT today to discuss the financial results of the three- and six-months ended June 30, 2010, and to review plans for the remainder of 2010. To listen and participate, please visit: http://www.glowpoint.com/about/investors.asp.
 
Supporting Resources

    * Glowpoint Investor Information
    * Recent Glowpoint News and Events
    * Glowpoint on Twitter 

 
Financial Information and Forward Looking Statements
 
This partial discussion of the statements of financial condition and operations of the Company should be read in conjunction with the consolidated financial statements and related notes contained in the Company's annual report on Form 10-K for the year ended December 31, 2009 as filed with the Securities and Exchange Commission on March 31, 2010.
 
Various remarks about the Company's future expectations, plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Such remarks are valid only as of today, and the Company disclaims any obligation to update this information. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.


>> Click here for Glowpoint, Inc.'s Consolidated Balance Sheets and Statements << 

About Glowpoint
 
Glowpoint, Inc. (OTCBB: GLOW) provides carrier-grade, managed telepresence and video communications services that are accessible via its cloud-based, hosted infrastructure and open architecture applications. 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 53 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.


MEDIA CONTACT:
Cheryl Cink, for Glowpoint
+1 530-756-4630
[email protected]
 
INVESTOR RELATIONS CONTACT:
Jonathan Brust
Glowpoint, Inc.
+1 312-235-3888, ext. 2052
[email protected]
 







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