LiveWorld Reports Financial Results for the 3rd Quarter 2012
LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the quarter ended September 30, 2012. Total revenues were $3.4 million for the quarter as compared to the $2.1 million for the quarter ended September 30, 2011. This was an increase of approximately $1.3 million or 59% period-over-period. The Company's revenues for the nine months ended September 30, 2012 were approximately $9.2 million, as compared to $5.8 million for the nine months ended September 30, 2011. This was an increase of approximately $3.4 million or 59% period-over-period.
The Company reported net income for the third quarter of 2012 of $412,000, or 12% of total revenues. This result was an improvement of $183,000 when compared to the net income of $229,000, or 11% reported for the quarter ended September 30, 2011. The Company's net income for the nine months ended September 30, 2012 was approximately $1.1 million, as compared to the net income of $65,000 for the nine months ended September 30, 2011. This was an increase of approximately $849,000 period-over-period.
The Company ended the quarter with approximately $3.5 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $2.1 million for the quarter ended June 30, 2012 as compared to the $1 million it had for the quarter ended December 31, 2011. The Company anticipates a cash burn for the fourth quarter of 2012, but will be cash positive for the full fiscal 2012 year.
“The company's progression is a direct result of our perseverance in delivering value adding technologies and strong customer experiences for brands on a global level,” states David Houston, Chief Financial Officer of LiveWorld. “We have achieved our fifth consecutive quarter of revenue growth combined with healthy operating profits. Additionally, we remain focused on creating impactful product and service solutions as our clients strive to manage customer content across social channels. We will continue to make investments in the company to further drive innovation and growth.”
LiveWorld, a user content management company, protects the world's largest brands and provides them with real actionable insights and relationship engagement by using cutting edge technology that scales human management of user content:
- Social Content Management System (SCMS) Technology Platform: The LiveWorld SCMS aggregates user content across social channels and enables high scale, high quality cost efficient review and management by human moderators and community managers. The SCMS is directly integrated with the Facebook Wall, other Facebook native applications, Twitter, custom applications built for Facebook as well as other social networks and community platforms such as LiveWorld Jive.
- Protecting Brands With Moderation: The combination of our SMCS platform and services protects brands by reviewing, removing, escalating and responding at a rate of up to 1,000 actions/hr./moderator The SCMS connects to 1 social web page or can integrate thousands of Facebook pages, Twitter pages and community web sites into a common, consistent workflow. Coverage ranges from a few hours/day to 24×7 to thousands of hours/day.
- Actionable Business Insight: Including tagging of all user content reviewed, metrics reporting and qualitative analysis based on LiveWorld's unique culture-tone-engagement framework. Enables brands to know what their customers actually think and what to do about it.
- Engagement for Marketing and Service & Support: For customer engagement and social service & support, including social media strategy with a focus on community cultural models, community programming plans, community management, day-to-day online engagement and social media crisis management.
- Global: Solutions available in up to 70 country-language combinations.
LiveWorld, a user content management company, is a trusted partner to the world's largest brands, including the top companies in retail, CPG, pharmaceutical, and financial/travel services. We revolutionize the management of user content through innovative proprietary technology, leading edge services, and deep integration with client marketing and customer support teams. Scaling human review of user content and human touch points, LiveWorld removes obstacles that brands face, allowing them to engage more deeply in social media. In an innovative approach that encompasses review, management, and analysis of user content, LiveWorld provides 24/7 brand protection through “always on” moderation and engagement across social channels, applications, and sites. The LiveWorld solution offers a competitive advantage through management of user content in sheer volume, resulting in amplified brand presence, and proven to improve social media marketing and increase customer loyalty. LiveWorld is headquartered in California, with offices in San Jose, CA and New York City. For more information, go to www.liveworld.com (OTC Markets: LVWD). Follow us at @LiveWorld
“Safe Harbor" Statement Under The Private Securities Litigation Reform Act
This press release may contain forward-looking information concerning LiveWorld's plans, objectives, future expectations, forecasts and prospects. These statements may include those regarding LiveWorld's current or future financial performance including but not limited to lists of clients, revenue and profit, use of cash, investments, relationships and the actual or potential impact of stock option expense, and the results of its product development efforts. The balance sheet, operating results, and statements of cash flows for the periods ended December 31, 2011, September 30, 2011, and September 30, 2012 where neither audited nor reviewed by an independent accounting firm and are subject to change upon such a review or audit being completed. Actual results may differ materially from those expressed in the forward looking statements made as a result of, among other things, final accounting adjustments and results, LiveWorld's ability to attract new clients and preserve or expand its relationship with existing clients, LiveWorld's ability to retain and attract high quality employees, including its management staff, the ability to deliver new innovative products in a timely manner, changing accounting treatments, and other risks applicable to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
|UNAUDITED CONDENSED BALANCE SHEETS|
|(In thousands, except share data)|
|September 30,||December 31,|
|Cash and cash equivalent||$||3,492||$||1,323|
|Accounts receivable, net||2,406||857|
|Total current assets||6,045||2,315|
|Property and equipment, net||220||132|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued employee expenses||633||348|
|Other accrued liabilities||11||10|
|Current portion of note payable||----||15|
|Total current liabilities||3,936||1,274|
|Common stock: $0.001 par value, 100,000,000 shares authorized 33,157,634 issued and outstanding as of December 31, 2011 and 33,257,634 issued and outstanding as of September 30, 2012||33||33|
|Additional paid-in capital||141,154||141,095|
|Total stockholders' equity||2,346||1,190|
|Total liabilities and stockholders' equity||$||6,282||$||2,464|
|UNAUDITED CONDENSED STATEMENT OF OPERATIONS|
|(In thousands, except per share data)|
Three Months Ended
Nine Months Ended
|Cost of revenues||1,121||728||2,972||2,008|
|Sales and marketing||824||496||2,208||1,507|
|General and administrative||524||331||1,543||1,065|
|Stock based compensation||21||27||58||87|
|Total operating expense||1,888||1,195||5,150||3,682|
|Income from operations||410||225||1,085||89|
|Interest Income (expense), net||----||(1||)||----||(2||)|
|Income before tax||412||225||1,097||87|
|Provision for income taxes||----||----||(2||)||(5||)|
|Equity in unconsolidated affiliate||----||5||----||(18||)|
|Basic net income per share||$||0.01||$||0.01||$||0.03||$||0.00|
|Shares used in computing basic net income per share||33,229,373||33,157,634||33,200,134||33,154,631|
|Diluted net income per share||$||0.01||$||0.01||$||0.03||$||0.00|
|Shares used in computing diluted net income per share||43,374,457||37,556,908||40,984,408||38,601,482|
|Departmental allocation of stock-based compensation:|
|Sales and marketing||8||8||19||28|
|General and administrative||5||5||14||16|
|Total stock-based compensation||$||21||$||27||$||58||$||87|
|UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS|
Three Months Ended
Nine Months Ended
|Cash flows from operating activities:|
|Adjustments to reconcile net income provided by operating activities:|
|Depreciation of long-lived assets||22||12||61||62|
|Equity in net loss of unconsolidated affiliate||----||(4||)||----||18|
|Changes in operating assets and liabilities:|
|Net cash provided by operating activities||395||265||2,330||145|
|Cash flows from investing activities:|
|Purchase of property and equipment||(59||)||(51||)||(148||)||(58||)|
|Net cash provided by (used in) investing activities||(59||)||(51||)||(148||)||(58||)|
|Cash flows from financing activities:|
|Capital lease financing||----||(2||)||----||(23||)|
|Proceeds from exercise of stock options||2||----||2||----|
|Note payable financing||----||(9||)||(15||)||(38||)|
|Net cash provided by (used for) financing activities||2||(11||)||(13||)||(61||)|
|Change in cash and cash equivalent||338||203||2,169||26|
|Cash and cash equivalents, beginning of period||3,154||573||1,323||750|
|Cash and cash equivalents, end of period||$||3,492||$||776||$||3,492||$||776|