HACKENSACK, N.J., March 31 /PRNewswire-FirstCall/ -- GoAmerica,
Inc. (NASDAQ:GOAM), a provider of relay and wireless communications
services for deaf, hard-of-hearing, and speech-impaired persons,
today announced results for the fourth quarter and year ended
December 31, 2007. Earlier today, the Company filed with the
Securities and Exchange Commission ("SEC") its Annual Report on
Form 10-K for the year ended December 31, 2007 earlier today.
"During the fourth quarter, the Company received stockholder
approval for its purchase of the telecommunications relay services
business of Verizon and for its merger with Hands On Video Relay
Services, Inc.," said Dan Luis, CEO of GoAmerica. "These
transactions were enabled by the financial commitment of $110
million provided by Clearlake Capital Group, Churchill Financial
LLC and Ableco Finance LLC. We believe that these two transactions,
which closed on January 10, 2008 after receiving all required
regulatory approvals, will enable GoAmerica to enhance its position
as a market leader in our sector." Financial Review Total revenue
for the three months ended December 31, 2007 was $5.2 million,
compared to $4.8 million in the third quarter of 2007 and to $4.2
million in the fourth quarter of 2006. Total revenue for 2007 was
$18.6 million compared with $12.8 million for 2006. Annual revenue
growth was attributable to several factors including: continued
growth in the Company's i711(R) relay and wireless divisions;
mid-year 2006 certification by the Federal Communications
Commission (FCC), which enabled GoAmerica to fully recognize
revenues associated with its relay services; and the offering of
our i711(R) Video Relay Service (VRS), which began in December of
2006. Net loss from continuing operations for the fourth quarter of
2007 was approximately $1.3 million, or $0.56 per diluted common
share, compared with a net loss from continuing operations of
$861,000, or $0.41 per diluted common share, in the third quarter
of 2007. Included in the loss from continuing operations for the
quarters ended December 31, 2007 and September 30, 2007 were
non-cash charges of $309,000 and $280,000 respectively, reflecting
depreciation, amortization, and non-cash employee compensation
charges for those periods. The net loss from continuing operations
in the fourth quarter of 2006 was $24,000, or $0.00 per diluted
share. Net loss from continuing operations for the year ended
December 31, 2007 was approximately $3.7 million, or $1.68 per
diluted common share, compared with a net loss from continuing
operations of $1.4 million, or $0.65 per diluted common share, for
the year ended December 31, 2006. As of December 31, 2007,
GoAmerica had approximately $2.4 million in cash and cash
equivalents. Summary of Recent Activities -- Verizon TRS Asset
Purchase: On January 10, 2008, the Company announced that it had
closed its acquisition of Verizon's telecommunications relay
services ("TRS") division for $46 million in cash and up to an
additional $8 million in contingent cash consideration. This
acquisition was financed with $35 million of equity financing and
$30 million of senior debt financing, funded in each case by funds
managed by Clearlake Capital Group. The Company expects the
transaction to accelerate GoAmerica's strategy to expand its
presence in the relay market and strengthen the Company's financial
platform for growth. -- Hands On Merger: On January 10, 2008, the
Company announced it had closed its merger with Hands On Video
Relay Services, Inc. for $35 million in cash and 6.7 million shares
of the Company's common stock for total consideration of
approximately $69 million. The Hands On transaction was funded
through $5 million of committed equity financing funded by
Clearlake and $40 million of senior debt financing. -- The
foregoing transactions were financed through a $40 million first
lien credit facility provided by Churchill Financial LLC and Ableco
Finance LLC and a $30 million second lien credit facility provided
by Clearlake Capital Group, and by the sale of $38.5 million of
GoAmerica's Series A Preferred Stock to Clearlake and related
entities. The Company's first lien lenders also provided it with a
$15 million unfunded credit revolver creating additional liquidity
for the Company as needed. -- On March 20, 2008, the Company
entered into new employment agreements with Daniel R. Luis, its
Chief Executive Officer, and with Edmond Routhier, its President
and Vice Chairman of the Board (collectively, the "Executives").
The terms of the employment agreements are substantially the same.
-- On March 24, 2008, the Company announced the appointment of
Chris Gibbons to its Board of Directors. Chris is an experienced
technologist having held multiple executive positions at Microsoft,
including Chief Information Officer (CIO). Most recently, Chris was
the Chief Technology Officer (CTO) and a board member of eStara
Corp, an e-commerce optimization provider. Chris is also a
Clearlake Executive Council member. About GoAmerica As a result of
its acquisitions, GoAmerica is the nation's largest and second
largest provider of text relay and video relay services,
respectively, and provides a wide range of communications services
tailored to the needs of people who are deaf, hard-of-hearing, or
speech-disabled. The Company's vision is to improve the quality of
life of its customers by being their premier provider of high
quality, innovative communication services that break down
communications barriers. For more information on the Company or its
services, visit http://www.goamerica.com/ or contact GoAmerica
directly at TTY 201-527- 1520, voice 201-996-1717, Internet Relay
by visiting http://www.i711.com/, or video phone by connecting to
hovrs.tv. About Clearlake Capital Group Clearlake Capital Group is
a private investment firm integrating private equity, leveraged
finance, and special situations in both private and public market
opportunities. Clearlake Capital seeks to partner with world-class
management teams to invest in businesses going through change or
expansion with patient long-term capital. The firm has a flexible
mandate to invest across the capital structure in corporate
divestitures, recapitalizations, restructurings, going private
buyouts and minority equity investments. Clearlake Capital's
founding principals, Steven Chang, Behdad Eghbali, and Jose
Feliciano, have led over 40 investments totaling more than $3
billion of capital in sectors including business services,
communications and media, energy and power, healthcare,
manufacturing, retail/consumer and technology. Safe Harbor The
statements contained in this news release that are not based on
historical fact -- including statements regarding the anticipated
results of the transactions described in this press release --
constitute "forward- looking statements" that are made in reliance
upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may be
identified by the use of forward-looking terminology such as "may",
"will", "expect", "estimate", "anticipate", "continue", or similar
terms, variations of such terms or the negative of those terms.
Such forward- looking statements involve risks and uncertainties,
including, but not limited to: (i) our ability to integrate the
businesses and technologies we have acquired; (ii) our ability to
respond to the rapid technological change of the wireless data
industry and offer new services; (iii) our dependence on wireless
carrier networks; (iv) our ability to respond to increased
competition in the wireless data industry; (v) our ability to
generate revenue growth; (vi) our ability to increase or maintain
gross margins, profitability, liquidity and capital resources; and
(vii) difficulties inherent in predicting the outcome of regulatory
processes. Such risks and others are more fully described in the
Risk Factors set forth in our filings with the Securities and
Exchange Commission. Our actual results could differ materially
from the results expressed in, or implied by, such forward-looking
statements. GoAmerica is not obligated to update and does not
undertake to update any of its forward looking statements made in
this press release. Each reference in this news release to
"GoAmerica", the "Company" or "We", or any variation thereof, is a
reference to GoAmerica, Inc. and its subsidiaries. "GoAmerica", the
"GoAmerica" logo, "i711", and the "i711.com" logo, and "Relay and
Beyond" are registered trademarks of GoAmerica. "i711.com" and
"i711 Wireless" are trademarks and service marks of GoAmerica.
Other names may be trademarks of their respective owners. CONTACT:
GoAmerica Laura Kowalcyk Cubitt Jacobs & Prosek 212-279-3115
x209 GOAMERICA, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands) December 31, December 31, 2007 2006 Assets Current
assets: Cash and cash equivalents $2,368 $3,870 Accounts
receivable, net 1,960 1,891 Merchandise inventories, net 206 329
Prepaid expenses and other current assets 220 233 Total current
assets 4,754 6,323 Other assets 13,544 7,556 Total assets $18,298
$13,879 Liabilities and stockholders' equity Current liabilities:
Accounts payable $1,285 $559 Accrued expenses 3,623 1,982 Accrued
preferred dividends 50 -- Deferred revenue 94 100 Loan payable
3,532 -- Other current liabilities 88 65 Total current liabilities
8,672 2,706 Other liabilities 74 112 Stockholders' equity 9,552
11,061 $18,298 $13,879 GOAMERICA, INC. CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except share and per share
data) (Unaudited) Three Months Ended Year Ended December 31,
December 31, 2007 2006 2007 2006 Revenues: Relay services $4,538
$3,370 $16,325 $8,695 Subscriber 239 256 1,106 1,190 Commissions
260 409 711 2,454 Equipment 131 163 431 429 Other 9 3 52 8 5,177
4,201 18,625 12,776 Costs and expenses: Cost of relay services
2,464 2,293 10,538 5,320 Cost of subscriber airtime 257 276 1,068
845 Cost of equipment revenue 449 156 944 536 Cost of network
operations 29 29 116 110 Sales and marketing 678 785 2,293 2,494
General and administrative 3,313 1,315 7,405 4,589 Research and
development 231 88 547 359 Depreciation and amortization 99 (12)
356 362 7,520 4,930 23,267 14,615 Loss from operations (2,343)
(729) (4,642) (1,839) Other income (expense): Settlement losses --
-- (162) -- Terminated merger costs -- (59) -- (490) Interest
income (expense), net (155) 23 (106) 169 Total other income
(expense), net (155) (36) (268) (321) Loss before benefit from
income taxes (2,498) (765) (4,910) (2,160) Income tax benefit 1,210
789 1,210 789 Loss from continuing operations (1,288) 24 (3,700)
(1,371) Loss from discontinued operations -- (18) -- (589) Net loss
(1,288) 6 (3,700) (1,960) Preferred dividends 30 -- 50 -- Net loss
applicable to common stockholders $(1,318) $6 $(3,750) $(1,960)
Loss per share-Basic and Diluted: Loss from continuing operations
$(0.56) $(0.00) $(1.68) $(0.65) Loss from discontinued operations
-- (0.00) -- (0.28) Basic and Diluted net loss per share $(0.56)
$(0.00) $(1.68) $(0.93) Weighted average shares used in computation
of basic and diluted net loss per share 2,298,917 2,140,696
2,239,080 2,105,184 DATASOURCE: GoAmerica, Inc. CONTACT: Laura
Kowalcyk, Cubitt Jacobs & Prosek for GoAmerica,
+1-212-279-3115, ext. 209, or Web site: http://www.goamerica.com/
http://www.i711.com/
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