Glowpoint Reports Fourth Quarter and Fiscal Year 2008 Results
Tuesday, March 31, 2009 4:00:01 PM ET
Glowpoint, Inc. (OTC BB: GLOW), a leading provider of advanced video
communications solutions, today announced financial results for the
fourth quarter and year ended December 31, 2008.
Total revenue for the year ended December 31, 2008 was a record $24.5
million, up $1.7 million, or almost 8%, from $22.8 million for fiscal
2007. Monthly recurring subscription revenue for 2008 was $17.5 million
of such amount, up almost 14% from $15.4 million for 2007. Gross profit
for the year increased 35% to $10.2 million from $7.6 million for 2007,
driven by a substantial improvement in gross margin which increased to
41.6% for 2008 compared to 33.2% for 2007. Loss from operations for the
fiscal year ended December 31, 2008 was $3.2 million, a 30.6%
improvement compared to the $4.6 million loss from operations for fiscal
Total revenue for the fourth quarter of 2008 was $6.0 million compared
to $5.5 million from the fourth quarter of 2007. Monthly recurring
revenue for the fourth quarter was $4.5 million of such amount, up more
than 13% from $4.0 million posted for the comparable quarter in 2007.
Gross profit for the quarter increased 20.1% to $2.4 million from $2.0
million for the fourth quarter of 2007, driven by a substantial
improvement in gross margin which increased to 40.1% for the fourth
quarter of 2008 compared to 36.5% for the fourth quarter of 2007. Fourth
quarter loss from operations was $1.7 million compared to $1.3 million
for the fourth quarter of 2007. This increased loss from operations was
primarily attributable to one-time, non-recurring charges of
approximately $0.5 million - $0.3 million to settle some historical tax
liabilities and approximately $0.2 million increased reserve for bad
debt - and investments of approximately $0.4 million for staffing
required for contracts won, the revenue from which will begin billing in
the first quarter of 2009.
Key operational highlights from 2008 include the following:
Established Recurring Revenue Model with Strong Growth Trends:
Glowpoint posted record revenue of $24.5 million in 2008, driven by
rapid growth of its managed VNOC service solutions - which was first
launched in the second quarter of 2008 and now supports more than 100
telepresence rooms and 500 standard locations worldwide - and expected
to continue to grow in response to burgeoning global demand for high
definition video conferencing solutions.
Improved Operating Performance: Glowpoint is focused on
maximizing operating efficiency and minimizing costs as evidenced by
the dramatically improved margins and progress toward near term
Enhanced Service Capabilities: Glowpoints global
solutions provide a full suite of managed services for all video
communication technologies and network types including extensive
business-to-business and network exchange services.
Completed Restructuring: Glowpoint boasts a much
improved balance sheet that is debt free and a simplified capital
structure that consists of common stock, one series of preferred
stock, warrants and options.
"We are pleased with the continued progress and scale in the business,
but most exciting is the momentum in sales and our pipeline," commented
Joe Laezza, Glowpoints Co-CEO. "The conditions in the video
communications industry, combined with further validation and demand for
Glowpoints managed service solutions, are just the ingredients we need
for continued strong growth."
David Robinson, Glowpoints Co-CEO, added, "Glowpoint is now debt-free
with a significantly improved balance sheet. Customers and partners see
Glowpoints staying power and can confidently enter into long-term
relationships to solve all of their video communications needs. Our
managed video service offering is gaining traction and, in turn,
creating numerous partnering opportunities for Glowpoint around the
world, which is a critical component of our continued momentum and drive
to achieve near term profitability."
Glowpoint will host a conference call at 4:30 pm ET today to discuss the
results and field questions from investors. Interested participants
should call 866-804-6922 and use passcode 72509475. International
participants should call 857-350-1668 and use the same passcode.
A recording of the conference call will be available beginning March 31
and will remain archived through April 7, 2009. To listen to the
playback, please call 888-286-8010 and use passcode 58660323. For the
international playback, dial 617-801-6888 and use the same passcode.
This call is being audio webcast by Thomson Financial and can be
accessed at Glowpoints website at http://www.glowpoint.com .
The audio webcast will also be distributed over Thomson Financials
Investor Distribution Network to both institutional and individual
investors. Individual investors can listen to the call through Thomson
Financials individual investor center at http://www.earnings.com
or by visiting any of the investor sites in Thomson Financials
Individual Investor Network, such as America Onlines Personal Finance
Channel, Fidelity Investments(R) (www.fidelity.com),
and others. Institutional investors can access the call via Thomson
Financials password-protected event management site, StreetEvents: http://www.streetevents.com .
Glowpoint, Inc. (OTC BB:GLOW.OB
is a leading provider of advanced video communications solutions.
Glowpoints suite of advanced and robust telepresence and video
communications solutions enable organizations to communicate with each
other over disparate networks and technology platforms. Glowpoint
supports thousands of video communications system in over 35 countries
with its 24/7 video management services, powering Fortune 500 companies
and major broadcasters, as well as global carriers and video equipment
manufacturers and their customers around the world. To learn more, visit www.glowpoint.com.
The statements contained herein, other than historical information,
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 communication services; the nonexclusive and
terminable-at-will nature of sales agent agreements; rapid technological
change affecting demand for our services; competition from other video
communications 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.
SOURCE: Glowpoint, Inc.
Jonathan Brust, 312-235-3888, ext. 2052