MURRAY HILL, N.J., March 8, 2012 /PRNewswire/ -- Glowpoint, Inc.
(NYSE Amex: GLOW), a leading global provider of cloud managed video
services, today reported its financial results for the fourth
quarter and fiscal year ended December 31, 2011.
Fourth quarter revenues for our cloud managed video services
("Managed Services Combined" as reported) were $3.5 million, an increase of 18% over the same
period last year. Managed Services Combined represents 49% of
total revenue in the quarter, up from 42% in the prior year period.
Network services revenue for the quarter was $3.2 million, a decrease of 17% over the same
period last year. One-time and event-based revenues
("Professional and other services" as reported) were $345,000 for the quarter.
Adjusted EBITDA (as defined and reconciled to GAAP) for the
fourth quarter was $825,000, an
increase of $339,000 or 70% over the
same period last year. Adjusted EBITDA margin was 12%
compared to 7% in the same period last year. Net income for the
fourth quarter was $284,000, an
increase of $731,000 over the same
period last year.
For the full year ended December 31,
2011, cloud managed video service revenue was $12.8 million, an increase of 22% over the prior
year. Network services revenue for the full year was $13.4 million, a decrease of 17% over the prior
year. One-time and event-based revenue was $1.6 million.
"Our cloud managed video service business remains the focus of
our growth and now represents the largest component of our
revenues," said Joe Laezza,
Glowpoint's president and CEO. "The network services component of
our business has performed as anticipated given the technology
trend towards converged networks, yet remains a component of our
product offerings for customers that require connectivity to our
OpenVideo cloud."
Adjusted EBITDA for the fiscal year ended December 31, 2011 was $2.5
million, an increase of $2.6
million over the prior year. Adjusted EBITDA margin was 9%
compared to a negative 1% in the prior year. Net income for the
fiscal year period was $369,000, an
increase of $3.0 million over the
prior year.
"The fourth quarter represents continued consistent improvement
in our operating results, as evidenced by the consecutive quarters
of positive adjusted EBITDA and EPS," commented John McGovern, Glowpoint's executive vice
president and CFO. "With the revenue mix shift to cloud managed
video services and strong operating leverage, we are in a good
position to drive growth as we pursue our goal of becoming the
leader in cloud managed video services."
Key business metrics
- Number of managed telepresence and video conferencing rooms
increased 56% to 1,152 for 2011 as compared with 2010.
- Number of managed conferences increased 50% to 60,475 for 2011
as compared with 2010.
- Number of certified enterprise video systems on OpenVideo™
increased 21% to 43,752 for 2011 as compared with 2010.
"We are seeing strong pipeline growth with an increase in usage
as we enter into the new year. We have made progress in our service
offerings to attach to a greater set of enterprise grade video
technologies beyond immersive telepresence rooms and our existing
and new sales channels are expanding. We are ramping up a
number of initiatives and investing in growth to continue to
deliver strong growth rates for our cloud managed video services in
2012," commented Laezza.
Highlights
- Higher-margin cloud managed video services have become a
majority of our revenue mix.
- Sound operating liquidity resulting from a full year of
positive earnings and cash from operations.
- Added key industry veterans to management team and
organization.
- Key new strategic partnerships were added: Avaya, SABRE
Virtual Meetings and Stryker Communications.
- Reached new milestones with number of rooms relying on
Glowpoint managed services, enterprises connected to OpenVideo™ for
B2B exchange services, and growth in immersive telepresence usage
across OpenVideo™ cloud.
- Continued investment in growth and operating efficiencies are
anticipated to drive growth and improved operating leverage.
- Launched the OpenVideo™ cloud strategy to expand services on a
global basis, and announced several service rollouts as part of the
evolution of unified communications technology, including enhanced
self-use services delivered via cloud-based hosted infrastructure
and applications.
- Up-listed our common stock to the NYSE Amex.
For the twelve months ended December 31,
2011, capital expenditures were $940,000 and as of March
5, 2012; there were 25,211,250 shares of common stock
outstanding.
"I am very pleased with the progress we made in 2011," said Mr.
Laezza. "Our goal is to secure a definitive leadership position in
the rapidly developing industry of cloud managed video services.
Our focus on product initiatives, sales and marketing,
strategic partnerships and operating efficiencies are paving the
way towards achieving this goal."
Guidance
The 2012 full year outlook and expectations that were recently
announced are reaffirmed as follows.
- Growth in revenues of cloud managed video services in the range
of 21% - 23% year-over-year to approximately $15 - $16 million.
- Network service revenue to decline in the range of 4% - 6% to
approximately $12 - $13 million.
- Professional services and event revenue to grow in the range of
26% - 28% to approximately $2.0
million.
- Non-GAAP Adjusted EBITDA margin to increase to 14% - 16% of
total revenues.
Teleconference
Glowpoint will host a conference call at 4:30 p.m. EST today to discuss the financial
results for Q4 and Full Year 2011, along with updates on the
business into 2012. To view the webcast, please visit:
http://video.webcasts.com/events/glow001/41553/. 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:
- Glowpoint Investor Information
About Glowpoint
Glowpoint, Inc. (NYSE Amex: 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 www.glowpoint.com.
Non-GAAP Financial Information
Adjusted EBITDA is defined as income or loss from continuing
operations before depreciation, amortization, interest expense,
interest income, sales taxes and regulatory fee expense or benefit,
loss on extinguishment of debt, changes in fair value of derivative
financial instruments and 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 (loss), net income (loss), 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 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.
+1 973-855-3411
investorrelations@glowpoint.com
www.glowpoint.com
GLOWPOINT,
INC.
CONSOLIDATED BALANCE
SHEETS
(In
thousands, except par value)
(Unaudited)
|
|
|
December
31,
|
|
|
2011
|
|
2010
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash
|
$ 1,818
|
|
$ 2,035
|
|
Accounts
receivable, net of allowance for doubtful accounts of
|
|
|
|
|
$147 and $250, respectively
|
2,520
|
|
2,706
|
|
Net current assets
of discontinued operations
|
-
|
|
15
|
|
Prepaid expenses
and other current assets
|
330
|
|
377
|
|
Total current assets
|
4,668
|
|
5,133
|
|
Property and equipment,
net
|
4,738
|
|
3,148
|
|
Other assets
|
59
|
|
83
|
|
Total assets
|
$ 9,465
|
|
$ 8,364
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Revolving loan
facility
|
750
|
|
750
|
|
Current portion of
capital lease
|
177
|
|
-
|
|
Accounts
payable
|
$ 1,382
|
|
$ 2,333
|
|
Accrued
expenses
|
1,024
|
|
1,352
|
|
Accrued sales
taxes and regulatory fees
|
434
|
|
739
|
|
Customer
deposits
|
139
|
|
243
|
|
Net current
liabilities of discontinued operations
|
50
|
|
-
|
|
Deferred
revenue
|
235
|
|
242
|
|
Total current liabilities
|
4,191
|
|
5,659
|
|
Noncurrent
liabilities:
|
|
|
|
|
Capital lease,
less current portion
|
334
|
|
-
|
|
Total liabilities
|
4,525
|
|
5,659
|
|
|
|
|
|
|
|
|
|
|
|
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
|
297
|
|
3,354
|
|
Common stock,
$.0001 par value
|
3
|
|
9
|
|
Additional paid-in
capital
|
159,339
|
|
154,410
|
|
Accumulated
deficit
|
(164,699)
|
|
(165,068)
|
|
Total stockholders' equity
|
4,940
|
|
2,705
|
|
Total liabilities and stockholders' equity
|
$ 9,465
|
|
$ 8,364
|
|
|
|
|
|
GLOWPOINT,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
and GAAP to
Non-GAAP Reconciliation
(In thousands, except per share
data)
(Unaudited)
|
|
|
|
Year
Ended
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Managed Services
Combined
|
|
$ 12,816
|
|
$ 10,480
|
|
$ 3,472
|
|
$ 2,933
|
|
Network services
|
|
13,387
|
|
16,042
|
|
3,225
|
|
3,877
|
|
Professional and other
services
|
|
1,603
|
|
1,028
|
|
345
|
|
199
|
|
Total revenue
|
|
27,806
|
|
27,550
|
|
7,042
|
|
7,009
|
|
|
|
|
|
|
|
|
|
|
|
Network and
infrastructure
|
|
9,388
|
|
11,389
|
|
2,232
|
|
2,621
|
|
Global managed
services
|
|
7,350
|
|
8,226
|
|
1,679
|
|
2,023
|
|
Sales and marketing
|
|
3,506
|
|
4,142
|
|
879
|
|
955
|
|
General and
administrative
|
|
5,656
|
|
5,330
|
|
1,476
|
|
1,470
|
|
Depreciation and
amortization
|
|
1,436
|
|
1,078
|
|
455
|
|
266
|
|
Total operating
expenses
|
|
27,336
|
|
30,165
|
|
6,721
|
|
7,335
|
|
Income (loss) from
operations
|
|
470
|
|
(2,615)
|
|
321
|
|
(326)
|
|
Interest/Financing
|
|
129
|
|
160
|
|
36
|
|
53
|
|
Income (loss) from continuing
operations
|
|
341
|
|
(2,775)
|
|
285
|
|
(379)
|
|
Income (loss) from discontinued
operations
|
|
28
|
|
112
|
|
(1)
|
|
(68)
|
|
Net income (loss)
|
|
369
|
|
(2,663)
|
|
284
|
|
(447)
|
|
Loss on redemption of preferred
stock
|
|
-
|
|
(934)
|
|
-
|
|
-
|
|
Net income (loss) attributable
to common stockholders
|
|
$
369
|
|
$ (3,597)
|
|
$
284
|
|
$ (447)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common stockholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$ 0.02
|
|
$ (0.20)
|
|
$ 0.01
|
|
$ (0.02)
|
|
Discontinued operations
|
|
$
-
|
|
$ 0.01
|
|
$
-
|
|
$
-
|
|
Basic net income
(loss) per share
|
|
$
0.02
|
|
$ (0.19)
|
|
$ 0.01
|
|
$ (0.02)
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$ 0.02
|
|
$ (0.20)
|
|
$ 0.01
|
|
$ (0.02)
|
|
Discontinued operations
|
|
$
-
|
|
$ 0.01
|
|
$
-
|
|
$
-
|
|
Diluted net income
(loss) per share
|
|
$
0.02
|
|
$ (0.19)
|
|
$ 0.01
|
|
$ (0.02)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of
common shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
22,286
|
|
19,127
|
|
24,343
|
|
20,590
|
|
Diluted
|
|
23,363
|
|
19,127
|
|
25,492
|
|
20,590
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA - GAAP to Non
GAAP Reconciliation
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
|
$
341
|
|
$ (2,775)
|
|
$
285
|
|
$ (379)
|
|
|
|
|
|
|
|
|
|
|
|
Interest/Financing
|
|
129
|
|
160
|
|
36
|
|
53
|
|
Depreciation
|
|
1,436
|
|
1,078
|
|
455
|
|
266
|
|
Stock-based
compensation
|
|
234
|
|
514
|
|
53
|
|
69
|
|
Stock-based comp Related to
Severance
|
|
(2)
|
|
(96)
|
|
(2)
|
|
18
|
|
Severance
|
|
349
|
|
982
|
|
(2)
|
|
459
|
|
Adjusted EBITDA
|
|
$ 2,487
|
|
$
(137)
|
|
$
825
|
|
$
486
|
|
|
|
|
|
|
|
|
|
|
GLOWPOINT,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Cash flows from Operating
Activities:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$ 369
|
|
$ (2,663)
|
|
$ 284
|
|
$ (447)
|
|
|
Adjustments to reconcile net
income (loss) to net cash provided by (used in)
|
|
|
|
|
|
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
1,436
|
|
1,078
|
|
455
|
|
266
|
|
|
|
|
Amortization of deferred
financing costs
|
|
62
|
|
34
|
|
16
|
|
16
|
|
|
|
|
Loss on disposal of
equipment
|
|
35
|
|
15
|
|
34
|
|
26
|
|
|
|
|
Bad debt expense
|
|
102
|
|
290
|
|
58
|
|
(55)
|
|
|
|
|
Stock-based
compensation
|
|
234
|
|
514
|
|
53
|
|
69
|
|
|
|
|
Increase (decrease) attributable
to changes in assets
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
and liabilities:
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
84
|
|
67
|
|
77
|
|
773
|
|
|
|
|
|
|
Prepaids and other current
assets
|
|
47
|
|
(86)
|
|
67
|
|
111
|
|
|
|
|
|
|
Other assets
|
|
(38)
|
|
(86)
|
|
-
|
|
-
|
|
|
|
|
|
|
Accounts payable
|
|
(951)
|
|
(874)
|
|
(207)
|
|
(681)
|
|
|
|
|
|
|
Customer deposits
|
|
(103)
|
|
(65)
|
|
(11)
|
|
(13)
|
|
|
|
|
|
|
Accrued expenses, sales taxes
and regulatory fees
|
|
(584)
|
|
107
|
|
(161)
|
|
(118)
|
|
|
|
|
|
|
Deferred revenue
|
|
(6)
|
|
(17)
|
|
(30)
|
|
18
|
|
|
|
|
|
|
|
Net cash provided by (used in)
continuing operating activities
|
|
687
|
|
(1,686)
|
|
635
|
|
(35)
|
|
|
|
|
|
|
|
Net cash provided by
discontinuing operating activities
|
|
65
|
|
242
|
|
-
|
|
154
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities
|
|
752
|
|
(1,444)
|
|
635
|
|
119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from Investing
Activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
equipment
|
|
12
|
|
61
|
|
12
|
|
61
|
|
|
Purchases of property and
equipment
|
|
(940)
|
|
(1,620)
|
|
(147)
|
|
(661)
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
|
(928)
|
|
(1,559)
|
|
(135)
|
|
(600)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from Financing
Activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from preferred stock
offering
|
|
-
|
|
4,000
|
|
-
|
|
-
|
|
|
Proceeds from exercise of stock
options
|
|
-
|
|
8
|
|
-
|
|
-
|
|
|
Capital Lease
|
|
|
|
|
(41)
|
|
-
|
|
(41)
|
|
-
|
|
|
Proceeds from revolving loan,
net
|
|
-
|
|
750
|
|
-
|
|
-
|
|
|
Receivable from sale of Series A
Preferred Stock
|
|
-
|
|
-
|
|
-
|
|
1,000
|
|
|
Costs related to private
placement
|
|
-
|
|
(307)
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Net cash provided by financing
activities
|
|
(41)
|
|
4,451
|
|
(41)
|
|
1,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
cash
|
|
(217)
|
|
1,448
|
|
459
|
|
519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at beginning of
period
|
|
2,035
|
|
587
|
|
1,359
|
|
1,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at end of
period
|
|
|
|
$
1,818
|
|
$
2,035
|
|
$
1,818
|
|
$
2,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Logo:
http://photos.prnewswire.com/prnh/20111222/LA26621LOGO)
SOURCE Glowpoint, Inc.