Glowpoint, Inc. (NYSE American:GLOW) (“Glowpoint” or the
“Company”), a managed service provider of video collaboration and
network applications, today announced certain preliminary financial
results for the second quarter ended June 30, 2018 and provided a
business update.
Preliminary Second-Quarter 2018 Financial
Highlights
- The Company expects revenue to be approximately $3.3 million
and $6.8 million for the second quarter and first half of 2018,
respectively.
- The Company expects a net loss of approximately $0.2 million
and positive adjusted EBITDA (“AEBITDA”) of approximately $0.1
million for the second quarter of 2018. AEBITDA is a non-GAAP
financial measure. See “Non-GAAP Financial Information” later
in this release for a reconciliation of this non-GAAP financial
measure.
- The Company expects to have cash-on-hand of approximately $2.7
million and no debt as of June 30, 2018.
“With the completion of our capital restructuring and the
developing market opportunity, our ability to expand beyond our
legacy service portfolio is greater than
ever. Video remains an evolving product
showing different demand profiles in terms of how and when it gets
used in remote meetings, but we believe leveraging Glowpoint’s
strengths in assessment, design and implementation of adoption and
support services around the rapidly growing Unified Communications
market is where significant and untapped value exists. When
we completed our most recent equity financing in January, our goal
was to delve deeper into the UCaaS1 market opportunity and develop
services that addressed the widening gap between deployment of UC
and the adoption thereof by users,” said Glowpoint President and
CEO, Peter Holst.
“There is a significant market developing 2 to address growing
corporate demand for UC adoption services that help employees not
only get ‘up and running’ on contemporary communication
applications but also provide them real-time, automated and
scalable support when they need it. We are encouraged by the
early response of some our largest customers as we begin to
introduce some of these new solutions and features into the
market. On an additional positive note, we have also seen
relative stability in revenue from our core managed services in the
past twelve months, with quarterly revenue of $3.5 million, $3.4
million and $3.5 million for the three months ended September 30,
2017, December 31, 2017 and March 31, 2018, respectively, and $3.3
million expected for the three months ended June 30, 2018. We
are particularly encouraged that we expect to have generated
positive AEBITDA during the second quarter and first half of 2018,
despite making investments in the development of new services
during these periods. Our balance sheet remains strong, with
$2.7 million of cash and no debt expected as of June 30, 2018,
allowing us to explore potential acquisition and/or business
development initiatives,” continued Mr. Holst.
Glowpoint’s results from operations and financial
condition will be more fully discussed in our Quarterly Report on
Form 10-Q for the three months ended June 30, 2018 to be filed with
the Securities and Exchange Commission (the “SEC”) on or before
August 14, 2018. Investors are encouraged to carefully review
the Company’s Form 10-Q for a complete analysis of its results from
operations and financial condition.
About Glowpoint
Glowpoint, Inc. (NYSE American: GLOW) is a managed service
provider of video collaboration and network applications. Our
services are designed to provide a comprehensive suite of automated
and concierge applications to simplify the user experience and
expedite the adoption of video as the primary means of
collaboration. Our customers include Fortune 1000 companies,
along with small and medium sized enterprises in a variety of
industries. To learn more please visit www.glowpoint.com.
Non-GAAP Financial Information
Adjusted EBITDA (“AEBITDA”), a non-GAAP financial measure, is
defined as net loss before depreciation and amortization, income
tax expense, stock-based compensation, impairment charges, and
interest and other expense, net. AEBITDA is not intended to
replace operating loss, net loss, cash flow or other measures of
financial performance reported in accordance with generally
accepted accounting principles (GAAP). Rather, AEBITDA is an
important measure used by management to assess the operating
performance of the Company and is used in determining achievement
of performance-based stock awards. AEBITDA as defined here
may not be comparable to similarly titled measures reported by
other companies due to differences in accounting policies.
Therefore, AEBITDA should be considered in conjunction with net
loss and other performance measures prepared in accordance with
GAAP, such as operating loss or cash flow provided by (used in)
operating activities, and should not be considered in isolation or
as a substitute for GAAP measures, such as net loss, operating loss
or any other GAAP measure of liquidity or financial
performance. A reconciliation of expected AEBITDA to
expected net loss for the three months ended June 30, 2018 is shown
below.
GAAP to
Non-GAAP Reconciliation (in thousands and unaudited): |
|
|
|
Net
loss |
$ |
(164 |
) |
|
|
Depreciation and amortization |
185 |
|
|
|
Interest and
other expense, net |
11 |
|
|
|
EBITDA |
32 |
|
|
|
Stock-based compensation |
110 |
|
|
|
Adjusted
EBITDA |
$ |
142 |
|
|
|
Cautionary Statement Regarding Preliminary
Results
The preliminary results in this release are based on
management’s initial review of the Company’s operations for the
second quarter ended June 30, 2018 and are subject to revision
based upon the Company’s normal quarter-end closing and review
processes and the completion and review of the Company’s
quarter-end financial statements. Actual results may differ
materially from these preliminary results as a result of the
completion of the Company’s normal quarter-end closing and review
processes, final adjustments and other developments. In addition,
these preliminary results are not a comprehensive statement of the
Company’s financial results for the second quarter ended June 30,
2018, and should not be viewed as a substitute for full, reviewed
financial statements prepared in accordance with generally accepted
accounting principles. As a result, you should not place undue
reliance on these estimates. The Company expects to announce second
quarter 2018 financial results on or before August 14, 2018.
Forward Looking and Cautionary Statements
This press release and any oral statements made regarding the
subject of this release contain forward-looking statements as
defined under Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and are made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All
statements, other than statements of historical facts, that address
activities that Glowpoint assumes, plans, expects, believes,
intends, projects, estimates or anticipates (and other similar
expressions) will, should or may occur in the future are
forward-looking statements. Without limiting the generality
of the foregoing, forward-looking statements contained in this
press release include statements regarding our expected financial
results for the second quarter of 2018, the relative stability of
the Company’s revenue and the success of any acquisitions or
business development initiatives. The forward-looking statements
are based on management’s current belief, based on currently
available information, as to the outcome and timing of future
events, and involve factors, risks, and uncertainties that may
cause actual results in future periods to differ materially from
such statements. Such risks include the fact that the Company
has a history of net operating losses and may incur future net
losses, the Company may not be able to introduce new products that
achieve broad market acceptance or be able to compete effectively
in its marketplace and other risk factors set forth in the
Company’s Annual Report on Form 10-K for the year ending December
31, 2017 and in other filings made by the Company with the SEC from
time to time, including the Company’s Quarterly Report on Form 10-Q
for the three months ended March 31, 2018. Any of these
factors could cause Glowpoint’s actual results and plans to differ
materially from those in the forward-looking statements.
Therefore, Glowpoint can give no assurance that its future results
will be as estimated. Glowpoint does not intend to, and
disclaims any obligation to, correct, update or revise any
information contained herein.
INVESTOR CONTACT: Investor Relations Glowpoint,
Inc. +1 303-640-3840 investorrelations@glowpoint.com
www.glowpoint.com
___________________________
1 Unified Communications (UC) as a Service (UCaaS) is a
sophisticated solution unifying a variety of communication services
on a single platform and accessible through the cloud.2 Global
spending on Unified Communications (UC) will reach $45.7 billion in
2022 according to Gartner Research Forecast Analysis: Unified
Communications, Worldwide, 1Q18 Update, April, 2018
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