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Glowpoint Announces Q3 2011 Results
October 19, 2011 | Hogan Keyser
MURRAY HILL, N.J., October 18, 2011 - Glowpoint, Inc., a leading global provider of cloud managed video services, today reported its financial results for the third quarter ended September 30, 2011.
Total revenues for the third quarter were $6.8 million. Cloud-based managed video service (MVS) revenues for the quarter were $3.2 million, an increase of 20% over the same period last year. Cloud-based MVS revenues were 46% of total revenues in the quarter, up from 38% in the prior year period. Network revenues for the quarter were $3.3 million, a decrease of 18% over the same period last year.
Adjusted EBITDA (as defined and reconciled to GAAP) for the third quarter was $837,000, an increase of $1.2 million over the same period last year. Adjusted EBITDA margin was positive 12% compared to a negative 5% in the same period last year. Net income was $36,000, an increase of $880,000 over the same period last year.
For the nine months ended September 30, 2011, total revenues were $20.8 million. Cloud-based MVS revenues for the nine-month period were $9.3 million, an increase of 24% over the same period last year. Network revenues for the nine-month period were $10.2 million, a decrease of 17% over the same period last year.
"We continue to see growing demand for our OpenVideo suite of services, and these revenues are expected to become a majority of overall revenues in the fourth quarter," said Joe Laezza, Glowpoint's President and Chief Executive Officer. "The leverage in our business model is producing sequential improvement in all profit metrics, and we are well positioned to maintain the pace of our strong operating results. The network services component of our business performed as expected, and we anticipate that revenue from this lower margin business will decline moderately or remain flat in the coming quarters."
Adjusted EBITDA for the nine months ended September 30, 2011 was $1.7 million, an increase of $2.7 million over the same period last year. Adjusted EBITDA margin was positive 8% compared to a negative 5% in the same period last year. Net income for the nine months ended this period was $85,000, an increase of $2.3 million over the same period last year.
"Three consecutive quarters of positive earnings and $2.4 million of operating income improvement for the year sets a new milestone for Glowpoint," commented John McGovern, Glowpoint's Executive Vice President and Chief Financial Officer. "The revenue mix shift to a majority of cloud managed video services, combined with strong operating leverage, puts us in a position to continue on a positive trajectory."
Key business metrics
- Sales bookings (defined as new sales to be delivered over a current average contract term of 21 months) in the third quarter were $1.8 million in contract value. Year to date sales bookings increased 14% to $8.8 million in contract value compared to the same nine-month period last year.
- Number of managed telepresence and video conferencing rooms increased 120% to 1,097 compared to 498 in the same period last year.
- Managed conferences on a trailing twelve-month basis increased 68% to 113,550, compared to 67,730 in the same period last year.
- Number of certified enterprise video systems on OpenVideo increased 24% to 42,438, compared to 34,355 in the same period last year.
- Reached new milestones with 450 enterprises connected to OpenVideo for B2B exchange services.
- Announced breakthrough growth in immersive telepresence usage across OpenVideo cloud.
- Launched OpenVideo Mobile app for enterprise mobile workforce use of cloud managed video services.
- Launched enhanced cloud managed video service offering for Cisco enterprise communities.
- Simplified capital structure by eliminating substantially all convertible preferred stock and warrants outstanding.
"Our partners and prospects recognize the value that our services offer to the mission-critical nature of visual communications as the industry continues to evolve and grow. With the deployment of new (and management of existing) enterprise video environments rapidly shifting from enterprise hosted and managed to more cloud based and outsourced support, our OpenVideo suite of services is perfectly positioned to capitalize on these trends," added Laezza.
The company plans to announce a date for a management presentation webcast event in the near future.
Glowpoint, Inc. 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 Open Video 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 http://www.glowpoint.com.
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