Filed under: Investing
LiveWorld Reports Financial Results for the 2nd Quarter 2013
19% Revenue Growth and Continued Profitability
SAN JOSE, Calif. & NEW YORK--(BUSINESS WIRE)-- LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the quarter ended June 30, 2013. Total revenues were $3.7 million for the quarter as compared to the $3.1 million for the quarter ended June 30, 2012. This was an increase of approximately $584,000 or 19% period-over-period. The Company's revenues for the six months ended June 30, 2013 were approximately $7.6 million, as compared to $5.8 million for the six months ended June 30, 2012. This was an increase of approximately $1.8 million or 31% period-over-period.
The Company reported net income for the first quarter of 2013 of $271,000, or 7% of total revenues. This result was a decrease of $139,000 when compared to the net income of $410,000, or 13% reported for the quarter ended June 30, 2012. The Company's net income for the six months ended June 30, 2013 was approximately $563,000, as compared to the net income of $684,000 for the six months ended June 30, 2012. This was a decrease of approximately $121,000 period-over-period.
The Company ended the quarter with approximately $3.9 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $3.4 million for the quarter ended June 30, 2013 as compared to the $2.8 million it had for the quarter ended December 31, 2012. The Company anticipates that its cash and cash equivalents will diminish for the remainder of this year as it expands its development, sales, and marketing efforts for the second half of 2013.
"We had a solid financial performance for the second quarter of the year with double digit revenue growth while maintaining profitability. We have been consistent with our strategy of increasing our investment in sales, marketing, and product development which has resulted in the reduced profitability over the first six months of 2013," said David Houston, Chief Financial Officer of LiveWorld. "We remain positive for 2013 and anticipate overall growth for the full year 2013."
Detailed quarterly financial information may be downloaded at www.liveworld.com (financials page) or at www.otcmarkets.com.
LiveWorld Solutions
LiveWorld, a social content marketing company managing social media for Fortune 1,000 brands through engagement, moderation, and insight. Our social media solutions provide a human touch scaled by technology that creates value out of user content, and provides big cost savings.
LiveWorld is a Facebook ® Preferred Marketing Developer (PMD) in the Pages category.
About LiveWorld
LiveWorld, a social content marketing company, is a trusted partner to the world's largest brands, including the number-one companies in retail, CPG, pharmaceutical, and financial/travel services. We revolutionize the management of user content through innovative 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 faced by brands, 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 competitive advantage through management of user content in sheer volume, resulting in amplified brand presence, actionable insight, and increased customer loyalty. LiveWorld is headquartered in California, with offices in San Jose, CA and New York City, NY. For more information, go to www.liveworld.com. 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 June 30, 2012 and 2013 and the period ended December 31, 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, | |||||
| 2013 | 2012 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalent | $ | 3,859 | $ | 3,382 | ||
| Accounts receivable, net | 3,127 | 1,415 | ||||
| Prepaid expenses | 341 | 268 | ||||
| Total current assets | 7,327 | 5,065 | ||||
| Property and equipment, net | 291 | 234 | ||||
| Other assets | 17 | 17 | ||||
| Total assets | $ | 7,635 | $ | 5,316 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 243 | $ | 235 | ||
| Accrued employee expenses | 640 | 504 | ||||
| Other accrued liabilities | 33 | 17 | ||||
| Deferred revenue | 3,016 | 1,478 | ||||
| Total current liabilities | 3,933 | 2,234 | ||||
| Total liabilities | 3,933 | 2,234 | ||||
| Stockholders' equity | ||||||
| Common stock: $0.001 par value, 100,000,000 shares authorized 33,257,634 issued and outstanding as of December 31, 2012 and June 30, 2013 respectively | 33 | 33 | ||||
| Additional paid-in capital | 141,235 | 141,178 | ||||
| Accumulated deficit | (137,566) | (138,129) | ||||
| Total stockholders' equity | 3,702 | 3,082 | ||||
| Total liabilities and stockholders' equity | $ | 7,635 | $ | 5,316 | ||
| LIVEWORLD, INC. | ||||||||||||
| UNAUDITED CONDENSED STATEMENT OF OPERATIONS | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||
| Total revenues | $ | 3,733 | $ | 3,149 | $ | 7,607 | $ | 5,789 | ||||
| Cost of revenues | 1,185 | 1,025 | 2,411 | 1,851 | ||||||||
| Gross Margin | 2,548 | 2,124 | 5,195 | 3,938 | ||||||||
| Operating Expense | ||||||||||||
| Product development | 521 | 432 | 1,049 | 822 | ||||||||
| Sales and marketing | 1,024 | 751 | 2,125 | 1,384 | ||||||||
| General and administrative | 687 | 511 | 1,389 | 1,018 | ||||||||
| Stock based compensation | 32 | 18 | 58 | 37 | ||||||||
| Total operating expense | 2,264 | 1,712 | 4,620 | 3,261 | ||||||||
| Profit from operations | 284 | 412 | 575 | 677 | ||||||||
| Other income | 0 | 0 | 0 | 10 | ||||||||
| Profit before tax | 284 | 411 | 575 | 687 | ||||||||
| Provision for income taxes | (13) | (1) | (13) | (3) | ||||||||
| Net income | 271 | 410 | 563 | 684 | ||||||||
| Basic net income per share | $ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.02 | ||||
| Shares used in computing basic net income per share | 33,257,634 | 33,157,634 | 33,257,634 | 33,157,634 | ||||||||
| Diluted net income per share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.02 | ||||
| Shares used in computing diluted income (loss) per share | 44,554,809 | 45,190,256 | 45,078,946 | 45,190,256 | ||||||||
| Departmental allocation of stock-based compensation: | ||||||||||||
| Product development | $ | 12 | $ | 8 | $ | 22 | $ | 17 | ||||
| Sales and marketing | 8 | 5 | 15 | 11 | ||||||||
| General and administrative | 13 | 5 | 21 | 9 | ||||||||
| Total stock-based compensation | $ | 32 | $ | 18 | $ | 58 | $ | 37 | ||||
| LIVEWORLD, INC. | ||||||||||||
| UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
| (In thousands) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income | $ | 271 | $ | 410 | $ | 563 | $ | 684 | ||||
| Adjustments to reconcile net income (loss) provided by (used in) operating activities: | ||||||||||||
| Depreciation of long-lived assets | 33 | 19 | 60 | 39 | ||||||||
| Stock-based compensation | 32 | 18 | 58 | 37 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | 1,149 | 1,763 | (1,712) | (1,297) | ||||||||
| Other assets | (106) | (44) | (73) | (8) | ||||||||
| Accounts payable | (132) | 49 | 8 | 259 | ||||||||
| Accrued liabilities | (2) | 48 | 152 | 172 | ||||||||
| Deferred revenue | 208 | 34 | 1,539 | 2,049 | ||||||||
| Net cash provided by (used in) operating activities | 1,453 | 2,297 | 595 | 1,935 | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of property and equipment | (97) | (29) | (117) | (89) | ||||||||
| Net cash provided by (used in) investing activities | (97) | (29) | (117) | (89) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Note payable financing | - | (9) | - | (15) | ||||||||
| Net cash provided by (used for) financing activities | - | - | - | - | ||||||||
| Change in cash and cash equivalent | 1,356 | 2,259 | 477 | 1,831 | ||||||||
| Cash and cash equivalents, beginning of period | 2,503 | 895 | 3,382 | 1,323 | ||||||||
| Cash and cash equivalents, end of period | $ | 3,859 | $ | 3,154 | $ | 3,859 | $ | 3,154 | ||||
IR Contact:
LiveWorld
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
TallGrass PR
Erica Rutan, 908-684-4332
erica.rutan@tallgrasspr.com
KEYWORDS: United States North America California New York
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