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Glowpoint Reports First Quarter 2013 Results

May 10, 2013 | Telepresence Options

glowpoint inc

 

MURRAY HILL, N.J., May 9, 2013 --- Glowpoint, Inc. (NYSE MKT: GLOW), a leading global provider of cloud and managed video services, today reported its financial results for the first quarter ended March 31, 2013.

Revenue for the first quarter of 2013 was $8.5 million, an increase of $1.8 million compared to $6.7 million for the first quarter of 2012.  This increase is attributable to the impact of the October 2012 acquisition of Affinity VideoNet ("Affinity").                     

Adjusted EBITDA (as defined and reconciled to GAAP below) for the first quarter of 2013 was $837,000, an increase of 17% over the same period last year.  The Company generated cash from operations of $264,000 for the first quarter of 2013.

"We achieved quarterly revenue growth year-over-year through the acquisition of Affinity and are pleased to report positive Adjusted EBITDA and cash flow from operations for the first quarter," stated David Clark, CFO of Glowpoint. "With respect to our balance sheet, we ended the quarter with positive working capital and $2.2 million of cash."

"Since becoming Glowpoint's CEO in January, we have been conducting a strategic market analysis and internal review, with the aim of identifying business improvements that would directly address the evolving video market," said Peter Holst, CEO and President of Glowpoint. "As a result of these efforts, a company transition is now underway that will continue through 2013."

"Several key initiatives are in place. First, we are continuing to develop a diversified sales model that mixes OEMs with emerging partners, enterprises, and non-traditional end user customers.  Second, we are also working with partners in the existing channel to increase the availability of our services worldwide. Third, based on the changing needs of medium to large enterprises, we are continuing to enhance our products to better address buyer requirements. Our customers are asking for solutions that include core video infrastructure (on premise or in the cloud) and video devices, the ability to extend video reach beyond the enterprise, and business-focused support services to ensure a quality video experience."

Added Holst, "Our objective is to increase sales traction with medium to large enterprises, with revenue increasingly derived from a healthy mix of traditional OEM, enterprise, and channel accounts.  We also believe that the size of our addressable market will increase and our sales cycles will decrease as a result of our strategy."

Revenue for cloud and managed video services ("Managed Services Combined" as reported), which accounted for 60% of total revenue, was $5.1 million for the first quarter of 2013, an increase of 56% compared to $3.3 million for the same period last year.  This increase in revenue was attributable to the Affinity acquisition. Network services revenue for the first quarter of 2013 was $3.07 million, relatively unchanged from $3.14 million for the same period last year.  Professional and other services revenue was $300,000 for the first quarter of 2013, relatively unchanged from $309,000 for the same period last year.

Net loss for the first quarter of 2013 was $2.0 million as compared to net income of $172,000 for the same period last year.  The increase in net loss was primarily attributable to an increase in non-cash expenses (including depreciation and amortization, stock-based compensation and asset impairment) and severance and acquisition costs, as summarized in the net income (loss) to Adjusted EBITDA reconciliation below.        

Teleconference

Glowpoint will host a conference call at 4:30 p.m. EDT today to discuss the financial results for the first quarter of 2013, along with updates on the business. 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

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 hundreds 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 visitwww.glowpoint.com.

Non-GAAP Financial Information

Adjusted EBITDA is defined as net income (loss) before depreciation, amortization, interest expense, interest income, taxes, stock-based compensation, asset impairment charges, acquisition costs and severance. 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 (loss) 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.

INVESTOR CONTACT: Investor Relations Glowpoint, Inc. +1 973-855-3411investorrelations@glowpoint.com www.glowpoint.com

 

 

GLOWPOINT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
 March 31,  December 31,
2013 2012
ASSETS
Current assets:
Cash $ 2,166 $ 2,218
Accounts receivable, net (including related party amounts of $26 and $32, respectively) 3,633 4,047
Prepaid expenses and other current assets 806 897
          Total current assets 6,605 7,162
Property and equipment, net 3,502 4,256
Goodwill 9,649 9,900
Intangibles, net 6,941 7,256
Other assets 671 742
          Total assets $ 27,368 $ 29,316
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 1,197 $ 1,397
Current portion of capital lease 243 240
Accounts payable (including related party amounts of $13 and $13, respectively) 2,091 2,384
Accrued expenses (including related party amounts of $6 and $15, respectively) 1,743 1,672
Accrued dividends 105 -
Accrued sales taxes and regulatory fees 353 398
Customer deposits 194 205
Deferred revenue 131 155
          Total current liabilities 6,057 6,451
Noncurrent liabilities:
Capital lease, less current portion 169 231
Long term debt, net of current portion 9,474 9,631
          Total noncurrent liabilities 9,643 9,862
          Total liabilities 15,700 16,313
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 167 167
Common stock, $.0001 par value 3 3
Additional paid-in capital 167,131 166,481
Accumulated deficit (165,633) (163,648)
          Total stockholders' equity 11,668 13,003
          Total liabilities and stockholders' equity $ 27,368 $ 29,316

 

 

GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
and GAAP to Non-GAAP Reconciliation
(In thousands, except per share data)
(Unaudited)
 Three Months Ended 
 March 31, 
2013 2012
Managed Services Combined $ 5,136 $ 3,297
Network services 3,068 3,140
Professional and other services  300 309
Total revenue 8,504 6,746
Network and infrastructure 2,002 2,076
Global managed services 3,190 1,696
Sales and marketing 1,069 986
General and administrative 3,087 1,350
Depreciation and amortization 758 440
Total operating expenses 10,106 6,548
Income (loss) from operations (1,602) 198
Interest/Financing 383 26
Net income (loss) (1,985) 172
Preferred stock dividends 105 -
Net income (loss) attributable to common stockholders $ (2,090) $ 172
Net income (loss) per share:
     Basic net income (loss) per share $ (0.07) $ 0.01
     Diluted net income (loss) per share $ (0.07) $ 0.01
Weighted average number of common shares:
     Basic 27,703 24,354
     Diluted 27,703 25,718
ADJUSTED EBITDA - GAAP to Non GAAP Reconciliation 
Net income (loss) $ (1,985) $ 172
Interest/Financing 383 26
Depreciation and amortization 758 440
Stock-based compensation 608 79
Severance 399 -
Acquisition costs 239 -
Asset impairment 435 -
Adjusted EBITDA $ 837 $ 717

 

 

GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 Three Months Ended 
 March 31, 
2013 2012
Cash flows from Operating Activities:
Net income (loss) $    (1,985) $        172
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 758 440
Amortization of deferred financing costs 61 15
Amortization of debt discount 30 -
Bad debt expense 26 21
Loss on impairment/disposal of equipment 435 11
Stock-based compensation 608 79
Increase (decrease) attributable to changes in assets
and liabilities:
 Accounts receivable  388 (64)
 Other current assets  93 49
 Other assets  10 12
 Accounts payable  (293) (259)
 Customer deposits  (11) 28
 Accrued expenses, sales taxes and regulatory fees  168 (57)
 Deferred revenue  (24) (32)
 Net cash provided by continuing operating activities  264 415
 Net cash used in discontinuing operating activities  - (50)
 Net cash provided by operating activities  264 365
Cash flows from Investing Activities:
 Proceeds from sale of equipment  - 11
 Purchases of property and equipment   (124) (109)
 Net cash used in investing activities  (124) (98)
Cash flows from Financing Activities:
Proceeds from exercise of stock options - 7
Principal payments for capital lease (59) (43)
Payments related to debt issuance (133) -
 Net cash used in financing activities  (192) (36)
Increase (decrease) in cash  (52) 231
Cash at beginning of period 2,218 1,818
Cash at end of period $     2,166 $     2,049

 







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