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LiveWorld Announces 2003 Results: First Profitable Year, 22% Annual Growth, 5th Consecutive Quarter of Positive Cash Flows
Leading provider of Internet community solutions for business delivers strong financials and is poised for growth
Los Gatos, Calif., February 24, 2004 - LiveWorld, Inc. (Pinksheets: LVWD.PK) today announced strong Year 2003 financial results, including the company’s first profitable year. The company further reported substantial growth for the year and a profitable 4th quarter which was also its 5th consecutive cash positive quarter.
Revenues for Year 2003 were $2,577,628 representing 21% growth over Year 2002 revenues of $2,120, 663. 4th quarter revenue for 2003 was slightly lower than Q4 2002. Revenue for Q4 2003 was slightly lower than Q3 2003 revenue due to timing of new contracts which should positively impact revenue for Q1 2004. At this time Q1 2004 revenue is expected to be over $800,000 and as such the Company’s highest quarterly revenue in the last two years.
Year 2003 earnings showed a profit before income taxes of
$23,875, or an EPS before income taxes of $0.0009 per share.
This compares to a Year 2002 loss of ($3,744,802), or ($0.144)
per share. Year over year and consecutive quarterly profits
also showed strong improvement. Profit before income taxes for
Q4 2003 was $132,942 or an EPS before income taxes of $ 0.005
per share, compared to a Q4 2002 loss of ($84,001) or an EPS of
($.0032) per share. Q3 2003 profit before income taxes was
$38,037 or an EPS before income taxes of $0.0015 per
share.
"LiveWorld’s 2003 financial performance scored on all
major areas: revenue growth, profitability and positive cash
flow, reflecting the strength of our business model, the
dedication of our team and the value of our services to our
Fortune 1000 clients," said LiveWorld Chairman & CEO, Peter
Friedman. "eBay, AOL, MINI USA, HBO, Campbell’s Soup and
other clients have seen strong ROI in our Loyalty Marketing
Community, Customer Support Community and Business Intelligence
Community services. All of these clients and others have
renewed and expanded our business with them".
LiveWorld’s year 2003 profitability reflected two actions which further demonstrate the company’s performance oriented strategy and tight fiscal management. Bonuses as a function of company financial performance were paid to all employees, totaling (across all employees) $423,830 for the year. Accounting reversals against prior year items totaling $345,773 in expense reductions and 2003 collections of previously written off items were also recorded for 2003. If the Company did not have the benefit of these accounting reversals, a lower level of bonuses would have been paid, thus insuring a profitable year based on current operations alone.
The Company said that it expects continued growth in revenue for Year 2004 and it will continue to manage financials tightly with the expectation of having approximately breakeven results. Actual results may vary quarter to quarter as it invests more in overall growth of the business. The company’s cash position at year end was approximately $950,000, providing significant room to wait out the fluctuations in the economy, while investing more in the growth of the business.
About LiveWorld, Inc.
LiveWorld (Pinksheets: LVWD.PK, www.liveworld.com ) is a leading
provider of online community solutions for business: loyalty
marketing communities, customer support communities, and
business intelligence communities based on LiveWorld’s
unique community applications platform. LiveWorld solutions
enable Fortune 1000 companies to reduce costs, increase
revenues, and strengthen customer relationships. Clients
include companies such as America Online, eBay, HBO, MINIUSA,
The Campbell’s Soup Company, Fidelity Investments,
A&E Television Networks, Warner Brothers, and Discovery
Communications. LiveWorld is headquartered in Los Gatos,
California.