LiveWorld Announces Q1 2005 Results: $2.2 Million Revenue, 131% Revenue Growth, Substantial Growth in Profit Margins
Full-service online community agency invests in foundation and growth
Los Gatos, Calif., April 19, 2005 – LiveWorld, Inc. (Pinksheets: LVWD.PK) today announced its Q1 2005 financial results, including doubling revenue and significantly increasing both ordinary and net income.
Revenue: Revenues for Q1 2005 were $2,235,207, representing 131% growth over Q1 2004 revenues of $968,216, and 42% growth over Q4 2004 revenues of $1,572,219.
Ordinary Income: Q1 2005 ordinary income was $249,763, or a $0.0094 EPS, representing 530% growth over Q1 2004 ordinary income of $39,663, or a $0.0015 EPS. Q1 2005 Ordinary Income grew 76% over Q4 2004 Ordinary Income of $141,717.
Net Income: During Q1, 2005 the Company settled a lawsuit in which it sought to collect past money owed to it. The net impact of this lawsuit favorably affected financial results such that Other Income was $226,718. This in turn brought the Company’s Net Income to $476,481, or a $0.0179 EPS, representing 390% growth over Q1, 2004 Net Income of $97,293, or $0.0037. Q1 2005 Net Income grew 188% over Q4 2004 Net Income of $165,567. (EPS calculations are based on current outstanding shares of 26,584,707, which do not include stock options.)
“We have achieved substantial revenue momentum and profit growth,” said Peter Friedman, Chairman & CEO of LiveWorld. “We will continue our strategy of investing in the foundation of the business, future growth, and our leadership position.”
On February 8, 2005, the Company announced bookings for 2005 revenue of over $7 Million, representing 34% growth over 2004. (See Feb. 8, 2005 Press Release.) The Company stated today it expects additional revenue growth for the year. Further, based on current forecasts and its strategy to invest profit margins in foundation and growth, the Company currently expects Ordinary Income for Year 2005 to grow approximately 50%-75% compared to Year 2004, and Net Income for Year 2005 to grow approximately 75%-125% compared to year 2004. (As described above, Net Income for Q1 2005 was favorably impacted by a one-time legal settlement event.). Actual results could vary widely due to many business factors. (See safe harbor statement below.)
The company’s cash position at end of Q1 2005 was just over $1,100,000.
About LiveWorld, Inc. LiveWorld (Pinksheets: LVWD.PK, www.liveworld.com ) is a leading full service online community agency that creates, operates, and manages loyalty marketing, customer support, and business intelligence communities based on the Company’s unique community applications platform and strategic community model. LiveWorld solutions enable Fortune 1000 companies to strengthen customer relationships, increase revenues, and reduce costs. Clients include companies such as America Online, A&E Television Networks, BEA Systems, eBay, The Campbell Soup Company, Discovery Communications, Dove, HBO, Intel, MINI Cooper USA , PayPal, QVC, Slim-Fast, SUN Microsystems, The Walt Disney Company, and Warner Brothers. LiveWorld is headquartered in Los Gatos, California.PR Contact: Peter Friedman, 800-514-2060
"Safe Harbor" Statement Under The Private Securities Litigation Reform Act: This press release contains financial results that have not been audited or reviewed by an outside accountant and are subject to change upon such review. This press release also contains forward-looking information concerning LiveWorld’s future expectations, forecasts, and prospects. These statements include those regarding LiveWorld’s current or future financial performance including, but not limited to revenue and profit growth. Actual results may differ materially from those expressed in the forward looking statements made by LiveWorld as a result of, among other things, the state of the economy, LiveWorld’s ability to successfully deliver upon its contractual commitments, clients continuing their ongoing relationships with the Company, LiveWorld’s ability to acquire new customers, and other risks applicable to the Company. (See the Company’s Q3, 2002 10Q filing for a list that includes other possible risk factors)