Glowpoint Reports Third Quarter 2014 Results
DENVER, CO, November 5, 2014 – Glowpoint, Inc. (NYSE MKT: GLOW), a leading provider of cloud-based video collaboration services and network solutions, reported financial results for the quarter ended September 30, 2014.
“We are pleased to report net income for the quarter and the highest quarterly operating income since 2009,” said Peter Holst, President and Chief Executive Officer. “We remain laser focused on the near-term launch of our third generation video service platform encompassing a broad suite of service management, analytics and mobile video applications to drive future revenue growth. Through this investment cycle and evolution in our product mix, we have leveraged our positive cash flow from operations to develop our platform around growth markets in mobile video and unified communication services.” concluded Holst.
Third Quarter 2014 Highlights
- Revenue was $8.0 million in the third quarter of 2014, a 4% decrease compared to $8.3 million in the third quarter of last year.
- Net income was $198,000 in the third quarter of 2014, compared with a net loss of $551,000 for the third quarter of last year.
- Income from operations for the third quarter of 2014 was $556,000, compared with a loss from operations of $105,000 for the third quarter of last year.
- Adjusted EBITDA (as defined and reconciled to GAAP below) was $1.4 million in the third quarter of 2014, an 11% increase compared with $1.2 million for the third quarter of last year.
- Generated positive cash flow from operations of $1.6 million for the first nine months of 2014.
- Invested $1.6 million in capital expenditures for the first nine months of 2014, mainly related to the development and build-out of our video service platform and infrastructure.
- The company’s cash position was $2.2 million as of September 30, 2014 as compared with $2.3 million at December 31, 2013.
- Advanced our new Reservationless Video platform into Beta. Commercial launch scheduled for January 1st, 2015.
- Advanced our Dynamic Video Meeting Room (VMR) into Beta. Dynamic VMR represents a new service offering and merges a scheduled, higher touch video experience with ad hoc demand. Commercial launch scheduled for Q1 2015.
- Launched Phase 1 of our new IT Service Management platform, which will allow for greatly enhanced monitoring, system management, broader reporting and analytics for our customers’ video environments.
The results of Glowpoint’s operations and financial condition for the three and nine months ended September 30, 2014 are more fully discussed in the company’s Form 10-Q for the quarter ended September 30, 2014, filed with the Securities and Exchange Commission (SEC) on November 5, 2014. Investors are encouraged to carefully review the Form 10-Q for the quarter ended September 30, 2014 for a complete analysis of Glowpoint’s results from operations and financial condition.
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 (GAAP). 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 company’s loan agreements. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. A reconciliation of Adjusted EBITDA to net income (loss) is shown in the attached schedules.
Forward looking and cautionary statements
Forward-looking statements in this press release regarding our expectations regarding launch dates of new service offerings and future revenue growth, plans to make investments and improvements in our video service platform and systems, 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, 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.