Glowpoint Reports First Quarter 2014 Results
DENVER, May 07, 2014, Glowpoint, Inc. (NYSE MKT: GLOW), a leading provider of video collaboration services and network solutions, reported financial results for the quarter ended March 31, 2014.
“We have begun 2014 according to plan, delivering modest revenue growth compared to the fourth quarter of 2013 and Adjusted EBITDA growth year-over-year,” said Peter Holst, CEO and president of Glowpoint. “The rapid adoption of unified communications and collaboration (UC&C) solutions combined with higher demand for IP-based communication services will require customers to have access to a diverse set of support and help desk requirements, including real-time analytics, advanced monitoring and multi-tiered support systems. In 2013, we set the foundation to develop our next generation IT service management platform for this market by improving our capital structure and financial position, increasing operational efficiencies and hiring key personnel. In 2014, Glowpoint is focused on building out our platform as we continue to invest heavily in systems, product development and partner enablement to drive long-term revenue growth. We are now in the initial stages of onboarding partners and expect continued progress throughout the year.
“Furthermore, I am pleased to welcome key additions to our board of directors. Jim Cohen and Pat Lombardi bring a substantial depth of both industry and domain expertise to complement that of our existing members. I appreciate their commitment to the company and look forward to their future contributions,” concluded Holst.
First Quarter 2014 Financial Highlights
- Revenue increased sequentially to $8.0 million in the first quarter of 2014 from $7.9 million in the fourth quarter of 2013. Revenue was $8.5 million for the first quarter of 2013.
- Adjusted EBITDA (a non-GAAP financial measure defined below and reconciled to GAAP in the attached schedule) increased 6% to $0.9 million in the first quarter of 2014 compared with $0.8 million for the same period last year.
- Net cash provided by operating activities was $0.5 million for the first quarter of 2014, compared with $0.3 million for the same period last year.
- The company ended the first quarter with $2.2 million of cash compared with $2.3 million at December 31, 2013.
Recent Company Highlights
- Appointed new board members James H. Cohen, an experienced public company executive with a background in investment banking, corporate law and private equity, and Patrick J. Lombardi, an executive with broad experience in the communications industry, mergers and acquisitions and directorships with public companies.
- Expanded relationship with Russell Reynolds Associates to deploy a complete package of video collaboration network service and managed service support.
- Implemented a global managed service delivery agreement with Regus, the world’s largest provider of flexible workspaces.
The results of Glowpoint’s operations and financial condition for the three months ended March 31, 2014 are more fully discussed in the company’s Form 10-Q for the quarter ended March 31, 2014, filed with the Securities and Exchange Commission (SEC) today. Investors are encouraged to carefully review the Form 10-Q for the quarter ended March 31, 2014 for a complete analysis of Glowpoint’s results from operations and financial condition.
Glowpoint will host a conference call at 4:30 p.m. EDT today to discuss the financial results for the first quarter of 2014 and provide updates regarding the business. To view the webcast, please visit http://glowpoint.com/investor-relations. To participate in the teleconference, callers may dial the toll-free number +1 (888) 669-0684 (U.S. callers only) or +1 (862) 255-5361 (from outside the U.S.). For those unable to participate in the live call, a recording of the call will be archived for viewing two hours after the call at http://glowpoint.com/investor-relations.
Glowpoint, Inc. (nyse mkt:GLOW) provides video collaboration, network, and support services to large enterprises and mid-sized companies to support their unified communications (UC) strategies and business goals. More than 1,000 organizations in 96 countries rely on our unmatched experience, business-class support and cloud-based services to collaborate with colleagues, business partners, and customers more effectively. To learn more please visit www.glowpoint.com.
Non-GAAP Financial Information
Adjusted EBITDA, a non-GAAP financial measure, is defined as net income (loss) before depreciation, amortization, interest and other expense, net, taxes, stock-based compensation, impairment charges, acquisition costs, and severance. Adjusted EBITDA is not intended to replace operating income (loss), net income (loss), cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles. Rather, Adjusted EBITDA is an important measure used by management to assess the operating performance of the Company and is used in the calculation of financial covenants in the Main Street Loan Agreement. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Additionally, Adjusted EBITDA, as defined here, does not have the same meaning as EBITDA as defined in certain of our prior Securities and Exchange Commission filings that contain separate reconciliations of EBITDA to net income (loss). A reconciliation of Adjusted EBITDA to net loss is shown in the attached schedules.
Forward looking and cautionary statements
Forward-looking statements in this press release regarding our expectations regarding long-term revenue growth, continued progress in onboarding partners, plans to make investments in our systems, product development and partner enablement and all other statements that are not historical facts, are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements 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 communications services; the non-exclusive and terminable-at-will nature of sales agreements; rapid technological change affecting demand for our services; competition from other video communication 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 SEC. We make no representation or warranty that the information contained herein is complete and accurate and we have no duty to correct or update any information contained herein.