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LiveWorld Achieves Positive Cash Flow and 20% Sequential Revenue Growth
Los Gatos, Calif., February 5, 2003 -
LiveWorld, Inc. (Other OTC: LVWD.PK) reported that its fourth
quarter of 2002 was cash positive. This is the company’s
first cash positive quarter based on operations. Revenues for
the fourth quarter of 2002 grew 20% sequentially from the third
quarter, representing the Company’s second sequential
quarter of revenue growth. Third quarter revenues grew 15% over
the second quarter of 2002.
Fourth quarter earnings, including non-cash charges, showed a
loss of $84,000 or an EPS loss of one-third (1/3) of one cent
($0.003) per share. This compares to a third quarter 2002 loss
of $1,075,000 or four cents ($0.04) per share. One-year ago
losses for the fourth quarter in 2001 were $3,352,000 or
($0.13) per share. Q4 2002 non-cash charges included ongoing
charges and one time write offs.
"We are delighted to have reached these important milestones that demonstrate our business model can be operated on a self-sustaining basis," said LiveWorld Chairman & CEO, Peter Friedman. "It further underscores the value we provide to our Fortune 1000 clients, and the success of our aggressive strategy to build annuity revenue streams while tightly managing costs." During the quarter the company significantly expanded its business with current clients as well as signing new clients and renewed long-term contracts.
"We believe the economy is picking up, but at a slow pace. Given the environment, we are especially proud of our work to date, but also remain very cautious," said Mr. Friedman. The company said that visibility to future revenue, cash flow, and profitability remains uncertain. The company also announced that it has approximately $900,000 in cash reserves, which provides it with significant room with which to wait out the slow economy and build its business.
About LiveWorld, Inc.
LiveWorld (other OTC: LVWD.PK, www.liveworld.com ) is a leading
provider of online community-based collaboration, relationship
marketing, and support services. These services provide online
meeting, customer support, and loyalty marketing solutions that
help Fortune 1000 companies reduce costs, increase revenues,
and strengthen customer relationships. LiveWorld’s
clients include such companies as eBay, HBO, Sony Music
Entertainment, MINIUSA, Campbell’s Soup Company, Intel,
and A&E Television Networks, LiveWorld is headquartered in
Los Gatos, California.
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"Safe Harbor" Statement Under The Private Securities
Litigation Reform Act: This press release contains
forward-looking information concerning the Company’s
future expectations, forecasts and prospects. These statements
include those regarding: the Company’s revenue growth,
cash growth and cash position. Actual results may differ
materially from those expressed in the forward looking
statements made by the Company as a result of, among other
things, the Company’s ability to successfully deliver
upon its contractual commitments, clients continuing their
ongoing relationships with the Company as well as other risk
factors described in the Company’s latest 10K filed with
the SEC. Financial information quoted in this release
represents unaudited results