LVWD LiveWorld Inc (PK)

$3.3 Million in Revenue with its 10th Consecutive Profitable Quarter

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 EndedSeptember 30,

Nine Months EndedSeptember 30,

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 EndedSeptember 30,

   

Nine Months EndedSeptember 30,

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:LiveWorldDavid Houston, 408-615-8496dhouston@liveworld.comorPR:TallGrass PRErica Rutan, 908-684-4332erica.rutan@tallgrasspr.com