SAN JOSE, Calif. & NEW YORK--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the quarter ended June 30, 2012. Total revenues were $3.1 million for the quarter as compared to the $1.9 million for the quarter ended June 30, 2011. This was an increase of approximately $1.2 million or 63% period-over-period. The Company’s revenues for the six months ended June 30, 2012 were approximately $5.8 million, as compared to $3.6 million for the six months ended June 30, 2011. This was an increase of approximately $2.2 million or 59% period-over-period.
The Company reported net income for the first quarter of 2012 of $410,000, or 13% of total revenues. This result was an improvement of $336,000 when compared to the net income of $74,000, or 4% reported for the quarter ended June 30, 2011. The Company’s net income for the six months ended June 30, 2012 was approximately $684,000, as compared to a net loss of $165,000 for the six months ended June 30, 2011. This was an increase of approximately $849,000 period-over-period.
The Company ended the quarter with approximately $3.2 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $1.7 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 that its cash and cash equivalents will diminish for the remainder of 2012 as it expands its development, sales, and marketing efforts for the second half of 2012.
“The second quarter was highlighted by solid execution resulting in 63% revenue growth and increased profitability. Our strategy has developed a solid foundation and enables our customers to manage and gain insight to their user generated content,” said David Houston, Chief Financial Officer of LiveWorld. “We remain focused on our long term goals and will continue to invest aggressively in our business with sales, marketing and product innovation being the focal points of our investment.”
Detailed quarterly financial information may be downloaded at www.liveworld.com (financials page) or at www.otcmarkets.com
LiveWorld has also announced that it has hired digital marketing expert Virginie Glaenzer to serve as Vice-president of Marketing. She is a seasoned business expert in new technologies, SaaS platforms and brings a strong and diverse skill set in digital, mobile and social media marketing to Fortune 500 brands.
“Virginie is the perfect addition to our team,” said Peter Friedman, Chief Executive Officer of LiveWorld. “Her commitment, understanding of our culture, and her passion for social media will be critical as we continue to grow. Additionally, Virginie's expertise in online marketing, social integration and mobile technology will help us expand our brand awareness."
LiveWorld Solutions
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:
- Content Review System (CRS) Technology Platform: The LiveWorld CRS aggregates user content across social channels and enables high scale, high quality cost efficient review and management by human moderators and community managers. The CRS 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 Jive.
- Protecting Brands With Moderation: The combination of our CRS platform and services protects brands by reviewing, removing, escalating and responding at a rate of up to 1,000 posts/hr./moderator The CRS 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 Customer 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 is a Facebook ® Preferred Marketing Developer (PMD) in the Pages category.
About LiveWorld
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, June 30, 2011, and June 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.
| LIVEWORLD, INC. | ||||||||
| UNAUDITED CONDENSED BALANCE SHEETS | ||||||||
| (In thousands, except share data) | ||||||||
| June 30, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalent | $ | 3,154 | $ | 1,323 | ||||
| Accounts receivable, net | 2,154 | 857 | ||||||
| Prepaid expenses | 142 | 135 | ||||||
| Total current assets | 5,450 | 2,315 | ||||||
| Property and equipment, net | 183 | 132 | ||||||
| Other assets | 17 | 17 | ||||||
| Total assets | $ | 5,650 | $ | 2,464 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 271 | $ | 12 | ||||
| Accrued employee expenses | 521 | 348 | ||||||
| Other accrued liabilities | 9 | 10 | ||||||
| Current portion of capital lease obligations | ---- | 15 | ||||||
| Deferred revenue | 2,939 | 889 | ||||||
| Total current liabilities | 3,740 | 1,274 | ||||||
| Total liabilities | 3,740 | 1,274 | ||||||
| Stockholders' equity | ||||||||
| Common stock: $0.001 par value, 100,000,000 shares authorized 33,157,634 issued and outstanding as of December 31, 2011 and June 30, 2012 respectively | 33 | 33 | ||||||
| Additional paid-in capital | 141,132 | 141,095 | ||||||
| Accumulated deficit | (139,255 | ) | (139,938 | ) | ||||
| Total stockholders' equity | 1,910 | 1,910 | ||||||
| Total liabilities and stockholders' equity | $ | 5,650 | $ | 2,464 | ||||
| LIVEWORLD, INC. | ||||||||||||||||
| UNAUDITED CONDENSED STATEMENT OF OPERATIONS | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Total revenues | $ | 3,149 | $ | 1,933 | $ | 5,789 | $ | 3,630 | ||||||||
| Cost of revenues | 1,025 | 630 | 1,851 | 1,280 | ||||||||||||
| Gross Margin | 2,124 | 1,303 | 3,938 | 2,350 | ||||||||||||
| Operating Expense | ||||||||||||||||
| Product development | 432 | 329 | 822 | 683 | ||||||||||||
| Sales and marketing | 751 | 486 | 1,384 | 1,010 | ||||||||||||
| General and administrative | 511 | 370 | 1,018 | 734 | ||||||||||||
| Stock based compensation | 18 | 28 | 37 | 60 | ||||||||||||
| Total operating expense | 1,712 | 1,214 | 3,261 | 2,487 | ||||||||||||
| Income / (loss) from operations | 412 | 89 | 677 | (137 | ) | |||||||||||
| Other income /(expense) | ---- | ---- | 10 | ---- | ||||||||||||
| Interest Income (expense), net | ---- | ---- | ---- | (1 | ) | |||||||||||
| Income/(loss) before tax | 411 | 89 | 687 | (138 | ) | |||||||||||
| Provision for income taxes | (1 | ) | ---- | (3 | ) | (5 | ) | |||||||||
| Equity in net loss of unconsolidated affiliate | ---- | (15 | ) | ---- | (22 | ) | ||||||||||
| Net loss | 410 | 74 | 684 | (165 | ) | |||||||||||
| Basic Loss per share | $ | 0.01 | $ | 0.00 | $ | 0.02 | $ | (0.00 | ) | |||||||
| Shares used in computing basic loss per share | 33,157,634 | 33,157,634 | 33,157,634 | 33,157,634 | ||||||||||||
| Diluted net income (loss) per share | $ | 0.01 | $ | 0.00 | $ | 0.02 | $ | (0.00 | ) | |||||||
| Shares used in computing diluted income (loss) per share | 45,190,256 | 39,017,955 | 45,190,256 | 33,157,634 | ||||||||||||
| Departmental allocation of stock-based compensation: | ||||||||||||||||
| Product development | $ | 8 | $ | 13 | $ | 17 | $ | 29 | ||||||||
| Sales and marketing | 5 | 10 | 11 | 20 | ||||||||||||
| General and administrative | 5 | 5 | 9 | 11 | ||||||||||||
| Total stock-based compensation | $ | 18 | $ | 28 | $ | 37 | $ | 60 | ||||||||
| LIVEWORLD, INC. | ||||||||||||||||
| UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net income (loss) | $ | 410 | $ | 74 | $ | 684 | $ | (165 | ) | |||||||
|
Adjustments to reconcile net income (loss)
provided by (used in) operating activities: |
||||||||||||||||
| Depreciation of long-lived assets | 19 | 19 | 39 | 50 | ||||||||||||
| Stock-based compensation | 18 | 28 | 37 | 60 | ||||||||||||
| Equity in net loss of unconsolidated affiliate | ---- | 15 | ---- | 22 | ||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | 1,763 | (305 | ) | (1,297 | ) | (413 | ) | |||||||||
| Other assets | (44 | ) | (44 | ) | (8 | ) | (38 | ) | ||||||||
| Accounts payable | 49 | (26 | ) | 259 | 62 | |||||||||||
| Accrued liabilities | 48 | (7 | ) | 172 | 25 | |||||||||||
| Deferred revenue | 34 | 292 | 2,049 | 277 | ||||||||||||
| Net cash provided by (used in) operating activities | 2,297 | 45 | 1,935 | (120 | ) | |||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Purchase of property and equipment | (29 | ) | (5 | ) | (89 | ) | (7 | ) | ||||||||
| Net cash provided by (used in) investing activities | (29 | ) | (5 | ) | (89 | ) | (7 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Capital lease financing | ---- | (8 | ) | ---- | (36 | ) | ||||||||||
| Proceeds from exercise of stock options | ---- | ---- | ---- | ---- | ||||||||||||
| Note payable financing | (9 | ) | (12 | ) | (15 | ) | (14 | ) | ||||||||
| Net cash provided by (used for) financing activities | (9 | ) | (20 | ) | (15 | ) | (50 | ) | ||||||||
| Change in cash and cash equivalent | 2,257 | 20 | 1,831 | (177 | ) | |||||||||||
| Cash and cash equivalents, beginning of period | 895 | 553 | 1,323 | 750 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 3,154 | $ | 573 | $ | 3,154 | $ | 573 | ||||||||