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Glowpoint Reports Second Quarter 2012 Results
MURRAY HILL, N.J., Aug. 14, 2012 /PRNewswire/ -- Glowpoint, Inc. (NYSE MKT: GLOW), a leading global provider of cloud managed video services, today reported its financial results for the second quarter ended June 30, 2012.
Second quarter revenues for cloud managed video services ("Managed Services Combined" as reported) were $3.2 million, an increase of 5% over the same period last year. Managed Services Combined represents 47% of total revenues in the quarter, up from 44% in the prior year period. Network services revenues for the quarter were $3.0 million, a decrease of 10% over the same period last year. One-time and event-based revenues ("Professional and other services" as reported) were $566,000 for the quarter, compared to $542,000 in the same period last year.
Adjusted EBITDA (as defined and reconciled to GAAP) for the second quarter was $850,000, an increase of $449,000 or 112% over the same period last year. Adjusted EBITDA margin was 13% compared to 6% in the same period last year. Net income for the second quarter was $248,000, an increase of $231,000 over the same period last year.
For the six months ended June 30, 2012, cloud managed video services revenues ("Managed Services Combined" as reported) were $6.5 million, an increase of 5% as compared to the same period last year. Network services revenues for the six-month period were $6.2 million, a decrease of 10% over the same period last year. One-time and event-based revenues ("Professional and other services" as reported) were $875,000 for the six-month period, compared to $876,000 in the same period last year.
Adjusted EBITDA for the six-month period ended June 30, 2012 was $1.6 million, an increase of $742,000 over the same period last year. Net income for the six months ended June 30, 2012 was $420,000, an increase of $371,000 over the same period last year.
"The sales pipeline for our suite of cloud managed video services is expanding, although elongated sales cycles continues to impact immediate growth levels," said Joe Laezza, Glowpoint's president and CEO. "We are seeing delays in highly qualified sales opportunities and attribute this to changes in the buying decision making process during the rapid shift in enterprise needs for video communications moving from on premise and appliance devices to cloud and software based services."
"We believe these conditions and trends in the buying process are very advantageous to Glowpoint's long term operating model as our OpenVideo® cloud and managed services are specifically designed to deliver on these shifting demands. We have begun to close the new significant contracts referenced in previous periods and see these deals beginning to positively impact our growth levels by year end," added Laezza.
"Adjusted EBITDA results and trends remain strong, and in fact continue to grow," said Tolga Sakman, Glowpoint's acting CFO. "We believe this is evidence of the good operating leverage in our business model and we've now delivered seven consecutive quarters of positive Adjusted EBITDA while EPS continues to grow. We are getting more aggressive with our investments in product development and sales and marketing, and we are confident that we will begin to see the benefits of these crucial investments and meet our long-term 20% EBITDA margin objectives as our revenue growth picks up."
Key business metrics
-- Number of managed telepresence and video conferencing rooms increased
38% to 1,270 as compared with the same period a year ago.
-- Number of managed conferences increased 41% to 39,000 as compared with
the same six-month year to date period a year ago.
-- Number of certified enterprise video systems on OpenVideo® increased
18% to 46,400 as compared with the same period a year ago.
-- Usage on OpenVideo® cloud increased 4% to more than 8.9 million minutes
as compared to the same six month period a year ago.
"The volume of managed conferences for our managed service contracted clients on unlimited plans continues to grow, which validates the reliability and levels of service we deliver and our customers expect. Usage on the OpenVideo® cloud platform is driven by the most diverse set of collaboration needs and applications of video communication from traditional conference calls over video to business-to-business communication for business meetings," added Laezza.
For the six-month period ended June 30, 2012, capital expenditures were $353,000, and as of August 14, 2012 there were 25,593,967 shares of common stock outstanding.
Definitive agreement to acquire Affinity VideoNet
As previously announced (http://www.glowpoint.com/press-releases/Affinity), the Company has entered into a definitive agreement to acquire privately held Affinity VideoNet and expects this transaction to close in the third quarter.
"We are excited about the opportunity to deliver our broad suite of cloud and managed services for the Affinity VideoNet customer base," commented Laezza. "This is a big step in the evolution of Glowpoint and we expect this acquisition to represent considerable top and bottom line contribution," added Sakman.
Teleconference
Glowpoint will host a conference call at 4:30 p.m. EDT today to discuss the financial results for Q2 2012. To view the webcast, please visit: http://video.webcasts.com/events/glow001/43579. To participate in the teleconference, callers may dial the toll free number (877) 407-1869 (U.S. callers only) or (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 http://www.glowpoint.com/investor-relations.
Supporting Link:
-- Glowpoint Investor Information
About Glowpoint
Glowpoint, Inc. (NYSE MKT: GLOW) 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 OpenVideo® 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.
Non-GAAP Financial Information
Adjusted EBITDA is defined as income from continuing operations before depreciation, amortization, interest expense, interest income, taxes, stock-based compensation, and severance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenues. 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 from continuing operations 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.
+1 973-855-3411
investorrelations@glowpoint.com
http://www.glowpoint.com
GLOWPOINT, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
June 30, December 31,
2012 2011
---- ----
ASSETS
Current assets:
Cash $1,689 $1,818
Accounts receivable, net of
allowance for doubtful
accounts of
$149 and $147, respectively 3,041 2,520
Prepaid expenses and other
current assets 382 330
--- ---
Total current assets 5,112 4,668
Property and equipment, net 4,325 4,738
Other assets 68 59
--- ---
Total assets $9,505 $9,465
====== ======
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Revolving loan facility $750 $750
Current portion of capital
lease 219 177
Accounts payable 1,369 1,382
Accrued expenses 405 1,024
Accrued sales taxes and
regulatory fees 514 434
Customer deposits 167 139
Net current liabilities of
discontinued operations - 50
Deferred revenue 175 235
--- ---
Total current liabilities 3,599 4,191
----- -----
Noncurrent liabilities:
Capital lease, less current
portion 320 334
Total noncurrent liabilities 320 334
--- ---
Total liabilities 3,919 4,525
----- -----
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 167 297
Common stock, $.0001 par
value 3 3
Additional paid-in capital 159,695 159,339
Accumulated deficit (164,279) (164,699)
-------- --------
Total stockholders' equity 5,586 4,940
----- -----
Total liabilities and
stockholders' equity $9,505 $9,465
====== ======
GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
and GAAP to Non-GAAP Reconciliation
(In thousands, except per share data)
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
2012 2011 2012 2011
---- ---- ---- ----
Managed Services Combined $6,501 $6,180 $3,204 $3,046
Network services 6,170 6,879 3,030 3,366
Professional and other
services 875 876 566 542
Total revenue 13,546 13,935 6,800 6,954
------ ------ ----- -----
Network and infrastructure 4,221 4,883 2,145 2,471
Global managed services 3,461 3,873 1,765 1,979
Sales and marketing 1,864 1,824 878 902
General and administrative 2,652 2,688 1,302 1,282
Depreciation and
amortization 865 573 425 297
Total operating expenses 13,063 13,841 6,515 6,931
------ ------ ----- -----
Income from operations 483 94 285 23
--- --- --- ---
Interest/Financing 58 63 32 30
--- --- --- ---
Income (loss) from
continuing operations 425 31 253 (7)
Income from discontinued
operations - 18 - 24
Income before provision for
income taxes $425 $49 $253 $17
==== === ==== ===
Provision for income taxes 5 - 5 -
--- --- --- ---
Net income 420 49 248 17
Net income per share:
Continuing operations $0.02 $ - $0.01 $ -
Discontinued operations $ - $ - $ - $ -
Basic net income per share $0.02 $ - $0.01 $ -
===== ========= ===== =========
Continuing operations $0.02 $ - $0.01 $ -
Discontinued operations $ - $ - $ - $ -
Diluted net income per
share $0.02 $ - $0.01 $ -
===== ========= ===== =========
Weighted average number of common shares:
Basic 24,440 20,714 24,525 20,753
====== ====== ====== ======
Diluted 25,742 24,594 25,874 24,594
====== ====== ====== ======
ADJUSTED EBITDA - GAAP to Non GAAP Reconciliation
Income (loss) from
continuing operations $425 $31 $253 $(7)
Interest/Financing 58 63 32 30
Depreciation 865 573 425 297
Stock-based compensation 219 147 140 70
Severance - 11 - 11
Adjusted EBITDA $1,567 $825 $850 $401
====== ==== ==== ====
GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2012 2011
---- ----
Cash flows from Operating Activities:
Net income $420 $49
Adjustments to reconcile net
income to net cash provided
by (used in)
operating activities:
Depreciation and
amortization 865 573
Amortization of
deferred financing
costs 29 31
Bad debt expense 52 (9)
Loss on disposal of
equipment 10 (12)
Stock-based
compensation 219 147
Increase (decrease)
attributable to
changes in assets
and liabilities:
Accounts
receivable (573) (151)
Other current
assets (52) (100)
Other assets (38) (43)
Accounts payable (13) (444)
Customer
deposits 28 (85)
Accrued
expenses, sales
taxes and
regulatory fees (539) (258)
Deferred revenue (61) 39
--- ---
Net cash provided by (used in)
continuing operating activities 347 (263)
Net cash (used in) provided by
discontinuing operating
activities (50) 40
--- ---
Net cash provided by (used in)
operating activities 297 (223)
--- ----
Cash flows from Investing Activities:
Proceeds from sale of
equipment 11 -
Purchases of property and
equipment (353) (554)
Net cash used in investing
activities (342) (554)
---- ----
Cash flows from Financing Activities:
Proceeds from exercise of
stock options 7 -
Principal payments for
capital lease (91) -
Net cash used in financing
activities (84) -
--- ---
Decrease in cash (129) (777)
Cash at beginning of period 1,818 2,035
----- -----
Cash at end of period $1,689 $1,258
====== ======
(Logo: http://photos.prnewswire.com/prnh/20111222/LA26621LOGO)
SOURCE Glowpoint, Inc.
Photo:http://photos.prnewswire.com/prnh/20111222/LA26621LOGO
http://photoarchive.ap.org/
Glowpoint, Inc.
Web Site: http://www.glowpoint.com
Glowpoint Reports Second Quarter 2012 Results
MURRAY HILL, N.J., Aug. 14, 2012 /PRNewswire/ -- Glowpoint, Inc. (NYSE MKT: GLOW), a leading global provider of cloud managed video services, today reported its financial results for the second quarter ended June 30, 2012.
Second quarter revenues for cloud managed video services ("Managed Services Combined" as reported) were $3.2 million, an increase of 5% over the same period last year. Managed Services Combined represents 47% of total revenues in the quarter, up from 44% in the prior year period. Network services revenues for the quarter were $3.0 million, a decrease of 10% over the same period last year. One-time and event-based revenues ("Professional and other services" as reported) were $566,000 for the quarter, compared to $542,000 in the same period last year.
Adjusted EBITDA (as defined and reconciled to GAAP) for the second quarter was $850,000, an increase of $449,000 or 112% over the same period last year. Adjusted EBITDA margin was 13% compared to 6% in the same period last year. Net income for the second quarter was $248,000, an increase of $231,000 over the same period last year.
For the six months ended June 30, 2012, cloud managed video services revenues ("Managed Services Combined" as reported) were $6.5 million, an increase of 5% as compared to the same period last year. Network services revenues for the six-month period were $6.2 million, a decrease of 10% over the same period last year. One-time and event-based revenues ("Professional and other services" as reported) were $875,000 for the six-month period, compared to $876,000 in the same period last year.
Adjusted EBITDA for the six-month period ended June 30, 2012 was $1.6 million, an increase of $742,000 over the same period last year. Net income for the six months ended June 30, 2012 was $420,000, an increase of $371,000 over the same period last year.
"The sales pipeline for our suite of cloud managed video services is expanding, although elongated sales cycles continues to impact immediate growth levels," said Joe Laezza, Glowpoint's president and CEO. "We are seeing delays in highly qualified sales opportunities and attribute this to changes in the buying decision making process during the rapid shift in enterprise needs for video communications moving from on premise and appliance devices to cloud and software based services."
"We believe these conditions and trends in the buying process are very advantageous to Glowpoint's long term operating model as our OpenVideo® cloud and managed services are specifically designed to deliver on these shifting demands. We have begun to close the new significant contracts referenced in previous periods and see these deals beginning to positively impact our growth levels by year end," added Laezza.
"Adjusted EBITDA results and trends remain strong, and in fact continue to grow," said Tolga Sakman, Glowpoint's acting CFO. "We believe this is evidence of the good operating leverage in our business model and we've now delivered seven consecutive quarters of positive Adjusted EBITDA while EPS continues to grow. We are getting more aggressive with our investments in product development and sales and marketing, and we are confident that we will begin to see the benefits of these crucial investments and meet our long-term 20% EBITDA margin objectives as our revenue growth picks up."
Key business metrics
-- Number of managed telepresence and video conferencing rooms increased
38% to 1,270 as compared with the same period a year ago.
-- Number of managed conferences increased 41% to 39,000 as compared with
the same six-month year to date period a year ago.
-- Number of certified enterprise video systems on OpenVideo® increased
18% to 46,400 as compared with the same period a year ago.
-- Usage on OpenVideo® cloud increased 4% to more than 8.9 million minutes
as compared to the same six month period a year ago.
"The volume of managed conferences for our managed service contracted clients on unlimited plans continues to grow, which validates the reliability and levels of service we deliver and our customers expect. Usage on the OpenVideo® cloud platform is driven by the most diverse set of collaboration needs and applications of video communication from traditional conference calls over video to business-to-business communication for business meetings," added Laezza.
For the six-month period ended June 30, 2012, capital expenditures were $353,000, and as of August 14, 2012 there were 25,593,967 shares of common stock outstanding.
Definitive agreement to acquire Affinity VideoNet
As previously announced (http://www.glowpoint.com/press-releases/Affinity), the Company has entered into a definitive agreement to acquire privately held Affinity VideoNet and expects this transaction to close in the third quarter.
"We are excited about the opportunity to deliver our broad suite of cloud and managed services for the Affinity VideoNet customer base," commented Laezza. "This is a big step in the evolution of Glowpoint and we expect this acquisition to represent considerable top and bottom line contribution," added Sakman.
Teleconference
Glowpoint will host a conference call at 4:30 p.m. EDT today to discuss the financial results for Q2 2012. To view the webcast, please visit: http://video.webcasts.com/events/glow001/43579. To participate in the teleconference, callers may dial the toll free number (877) 407-1869 (U.S. callers only) or (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 http://www.glowpoint.com/investor-relations.
Supporting Link:
-- Glowpoint Investor Information
About Glowpoint
Glowpoint, Inc. (NYSE MKT: GLOW) 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 OpenVideo® 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.
Non-GAAP Financial Information
Adjusted EBITDA is defined as income from continuing operations before depreciation, amortization, interest expense, interest income, taxes, stock-based compensation, and severance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenues. 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 from continuing operations 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.
+1 973-855-3411
investorrelations@glowpoint.com
http://www.glowpoint.com
GLOWPOINT, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
June 30, December 31,
2012 2011
---- ----
ASSETS
Current assets:
Cash $1,689 $1,818
Accounts receivable, net of
allowance for doubtful
accounts of
$149 and $147, respectively 3,041 2,520
Prepaid expenses and other
current assets 382 330
--- ---
Total current assets 5,112 4,668
Property and equipment, net 4,325 4,738
Other assets 68 59
--- ---
Total assets $9,505 $9,465
====== ======
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Revolving loan facility $750 $750
Current portion of capital
lease 219 177
Accounts payable 1,369 1,382
Accrued expenses 405 1,024
Accrued sales taxes and
regulatory fees 514 434
Customer deposits 167 139
Net current liabilities of
discontinued operations - 50
Deferred revenue 175 235
--- ---
Total current liabilities 3,599 4,191
----- -----
Noncurrent liabilities:
Capital lease, less current
portion 320 334
Total noncurrent liabilities 320 334
--- ---
Total liabilities 3,919 4,525
----- -----
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 167 297
Common stock, $.0001 par
value 3 3
Additional paid-in capital 159,695 159,339
Accumulated deficit (164,279) (164,699)
-------- --------
Total stockholders' equity 5,586 4,940
----- -----
Total liabilities and
stockholders' equity $9,505 $9,465
====== ======
GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
and GAAP to Non-GAAP Reconciliation
(In thousands, except per share data)
(Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
2012 2011 2012 2011
---- ---- ---- ----
Managed Services Combined $6,501 $6,180 $3,204 $3,046
Network services 6,170 6,879 3,030 3,366
Professional and other
services 875 876 566 542
Total revenue 13,546 13,935 6,800 6,954
------ ------ ----- -----
Network and infrastructure 4,221 4,883 2,145 2,471
Global managed services 3,461 3,873 1,765 1,979
Sales and marketing 1,864 1,824 878 902
General and administrative 2,652 2,688 1,302 1,282
Depreciation and
amortization 865 573 425 297
Total operating expenses 13,063 13,841 6,515 6,931
------ ------ ----- -----
Income from operations 483 94 285 23
--- --- --- ---
Interest/Financing 58 63 32 30
--- --- --- ---
Income (loss) from
continuing operations 425 31 253 (7)
Income from discontinued
operations - 18 - 24
Income before provision for
income taxes $425 $49 $253 $17
==== === ==== ===
Provision for income taxes 5 - 5 -
--- --- --- ---
Net income 420 49 248 17
Net income per share:
Continuing operations $0.02 $ - $0.01 $ -
Discontinued operations $ - $ - $ - $ -
Basic net income per share $0.02 $ - $0.01 $ -
===== ========= ===== =========
Continuing operations $0.02 $ - $0.01 $ -
Discontinued operations $ - $ - $ - $ -
Diluted net income per
share $0.02 $ - $0.01 $ -
===== ========= ===== =========
Weighted average number of common shares:
Basic 24,440 20,714 24,525 20,753
====== ====== ====== ======
Diluted 25,742 24,594 25,874 24,594
====== ====== ====== ======
ADJUSTED EBITDA - GAAP to Non GAAP Reconciliation
Income (loss) from
continuing operations $425 $31 $253 $(7)
Interest/Financing 58 63 32 30
Depreciation 865 573 425 297
Stock-based compensation 219 147 140 70
Severance - 11 - 11
Adjusted EBITDA $1,567 $825 $850 $401
====== ==== ==== ====
GLOWPOINT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2012 2011
---- ----
Cash flows from Operating Activities:
Net income $420 $49
Adjustments to reconcile net
income to net cash provided
by (used in)
operating activities:
Depreciation and
amortization 865 573
Amortization of
deferred financing
costs 29 31
Bad debt expense 52 (9)
Loss on disposal of
equipment 10 (12)
Stock-based
compensation 219 147
Increase (decrease)
attributable to
changes in assets
and liabilities:
Accounts
receivable (573) (151)
Other current
assets (52) (100)
Other assets (38) (43)
Accounts payable (13) (444)
Customer
deposits 28 (85)
Accrued
expenses, sales
taxes and
regulatory fees (539) (258)
Deferred revenue (61) 39
--- ---
Net cash provided by (used in)
continuing operating activities 347 (263)
Net cash (used in) provided by
discontinuing operating
activities (50) 40
--- ---
Net cash provided by (used in)
operating activities 297 (223)
--- ----
Cash flows from Investing Activities:
Proceeds from sale of
equipment 11 -
Purchases of property and
equipment (353) (554)
Net cash used in investing
activities (342) (554)
---- ----
Cash flows from Financing Activities:
Proceeds from exercise of
stock options 7 -
Principal payments for
capital lease (91) -
Net cash used in financing
activities (84) -
--- ---
Decrease in cash (129) (777)
Cash at beginning of period 1,818 2,035
----- -----
Cash at end of period $1,689 $1,258
====== ======
(Logo: http://photos.prnewswire.com/prnh/20111222/LA26621LOGO)
SOURCE Glowpoint, Inc.
Photo:http://photos.prnewswire.com/prnh/20111222/LA26621LOGO
http://photoarchive.ap.org/
Glowpoint, Inc.
Web Site: http://www.glowpoint.com