LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the quarter ended September 30, 2013. Total revenues were $3.3 million for the quarter as compared to the $3.4 million for the quarter ended September 30, 2012. This was a decrease of approximately $100,000 or 3% period-over-period. The Company's revenues for the nine months ended September 30, 2013 were approximately $10.9 million, as compared to $9.2 million for the nine months ended September 30, 2012. This was an increase of approximately $1.7 million or 19% period-over-period.
The Company reported net income for the quarter of $146,000, or 5% of total revenues. This result was a decrease of $266,000 when compared to the net income of $412,000, or 12% reported for the quarter ended September 30, 2012. The Company's net income for the nine months ended September 30, 2013 was approximately $709,000, as compared to the net income of $1.1 million for the nine months ended September 30, 2012.
LiveWorld ended the quarter with approximately $4.8 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $3.6 million for the quarter ended September 30, 2013 as compared to the $2.8 million it had for the quarter ended December 31, 2012. LiveWorld anticipates it will be cash negative in the fourth quarter of 2013 as it continues to expand its development, sales, and marketing efforts.
"We continued to demonstrate consistent financial performance with our 10th consecutive profitable quarter. We have been able to expand our relationship with existing clients, while we continue to accelerate our sales, marketing, and development efforts," said David Houston, Chief Financial Officer of LiveWorld. "We anticipate top line revenue growth for 2013 which positions us well as we move into 2014."
Detailed quarterly financial information may be downloaded at www.liveworld.com (financials page) or at www.otcmarkets.com.
About LiveWorld
LiveWorld is a social content marketing company. Through engagement, moderation, and insight we help brands develop deeper relationships with customers. We bring a human touch scaled by technology that creates value out of user content and provides big cost savings. By providing software and services, LiveWorld delivers a full range of social media solutions.
The LiveWorld Social Content Marketing Suite (SCMS) is based on a software platform designed to engage human quality at every level, while cost effectively scaling across social channels. The suite includes three applications: LiveEngage, LiveMod, and LiveInsight. These applications empower people to moderate and respond to user comments, and to analyze data with human intelligence and sensitivity in context.
LiveWorld is a trusted partner to clients in developing strategy, creating and publishing content, engaging customers, moderating content, managing crises, and gleaning insight from social media.
LiveWorld is headquartered in California, with offices in San Jose, CA and NY. 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 September 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) | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalent | $ | 4,825 | $ | 3,382 | ||||
Accounts receivable, net | 2,535 | 1,415 | ||||||
Prepaid expenses | 296 | 268 | ||||||
Total current assets | 7,656 | 5,065 | ||||||
Property and equipment, net | 263 | 234 | ||||||
Other assets | 17 | 17 | ||||||
Total assets | $ | 7,936 | $ | 5,316 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 372 | $ | 235 | ||||
Accrued employee expenses | 602 | 504 | ||||||
Other accrued liabilities | 18 | 17 | ||||||
Deferred revenue | 3,062 | 1,478 | ||||||
Total current liabilities | 4,054 | 2,234 | ||||||
Total liabilities | 4,054 | 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 September 30, 2013 respectively | 33 | 33 | ||||||
Additional paid-in capital | 141,269 | 141,178 | ||||||
Accumulated deficit | (137,420) | (138,129) | ||||||
Total stockholders' equity | 3,883 | 3,082 | ||||||
Total liabilities and stockholders' equity | $ | 7,936 | $ | 5,316 | ||||
LIVEWORLD, INC. | ||||||||||||||||
UNAUDITED CONDENSED STATEMENT OF OPERATIONS | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Total revenues | $ | 3,319 | $ | 3,419 | $ | 10,926 | $ | 9,207 | ||||||||
Cost of revenues | 931 | 1,121 | 3,342 | 2,972 | ||||||||||||
Gross Margin | 2,388 | 2,298 | 7,583 | 6,235 | ||||||||||||
Operating Expense | ||||||||||||||||
Product development | 429 | 519 | 1,478 | 1,341 | ||||||||||||
Sales and marketing | 1,038 | 824 | 3,163 | 2,208 | ||||||||||||
General and administrative | 735 | 524 | 2,124 | 1,543 | ||||||||||||
Stock based compensation | 34 | 21 | 92 | 58 | ||||||||||||
Total operating expense | 2,237 | 1,888 | 6,857 | 5,150 | ||||||||||||
Profit from operations | 151 | 410 | 726 | 1,085 | ||||||||||||
Other income | ---- | 2 | 1 | 12 | ||||||||||||
Profit before tax | 151 | 412 | 727 | 1,097 | ||||||||||||
Provision for income taxes | (5) | ---- | (18) | (2) | ||||||||||||
Net income | 146 | 412 | 709 | 1,095 | ||||||||||||
Basic net income per share | $ | 0.00 | $ | 0.01 | $ | 0.02 | $ | 0.03 | ||||||||
Shares used in computing basic net income per share | 33,257,634 | 33,229,373 | 33,257,634 | 33,200,134 | ||||||||||||
Diluted net income per share | $ | 0.00 | $ | 0.01 | $ | 0.02 | $ | 0.03 | ||||||||
Shares used in computing diluted income (loss) per share | 42,729,309 | 43,374,457 | 44,120,684 | 40,984,408 | ||||||||||||
Departmental allocation of stock-based compensation: | ||||||||||||||||
Product development | $ | 10 | $ | 8 | $ | 32 | $ | 25 | ||||||||
Sales and marketing | 10 | 8 | 25 | 19 | ||||||||||||
General and administrative | 14 | 5 | 35 | 14 | ||||||||||||
Total stock-based compensation | $ | 34 | $ | 21 | $ | 92 | $ | 58 | ||||||||
LIVEWORLD, INC. | ||||||||||||||||
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 146 | $ | 412 | $ | 709 | $ | 1,095 | ||||||||
Adjustments to reconcile net income
provided by (used in) operating activities: | ||||||||||||||||
Depreciation of long-lived assets | 37 | 22 | 97 | 61 | ||||||||||||
Stock-based compensation | 34 | 21 | 92 | 58 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 592 | (252) | (1,120) | (1,549) | ||||||||||||
Other assets | 44 | (3) | (28) | (13) | ||||||||||||
Accounts payable | 129 | (70) | 137 | 190 | ||||||||||||
Accrued liabilities | (53) | 114 | 99 | 287 | ||||||||||||
Deferred revenue | 46 | 151 | 1,584 | 2,201 | ||||||||||||
Net cash provided by (used in) operating activities | 974 | 395 | 1,569 | 2,330 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchase of property and equipment | (8) | (59) | (126) | (148) | ||||||||||||
Net cash provided by (used in) investing activities | (8) | (59) | (126) | (148) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from exercise of stock options | ---- | 2 | ---- | 2 | ||||||||||||
Note payable financing | ---- | ---- | ---- | (15) | ||||||||||||
Net cash provided by (used for) financing activities | ---- | 2 | ---- | (13) | ||||||||||||
Change in cash and cash equivalent | 966 | 338 | 1,443 | 2,169 | ||||||||||||
Cash and cash equivalents, beginning of period | 3,859 | 3,154 | 3,382 | 1,323 | ||||||||||||
Cash and cash equivalents, end of period | $ | 4,825 | $ | 3,492 | $ | 4,825 | $ | 3,492 | ||||||||
IR:
LiveWorld
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR:
TallGrass
PR
Erica Rutan, 908-684-4332
erica.rutan@tallgrasspr.com