LiveWorld Announces Third Quarter 2007 Financial Results
Company Continues to Grow and Diversify Client Revenues
San Jose, Calif., and London, U.K, November 13, 2007 – LiveWorld, Inc. (OTCBB:LVWD), a leading social marketing agency, today announced financial results for the third quarter and nine months ended September 30, 2007. For the third quarter of 2007, LiveWorld grew revenues 21% year-over-year to $2.8 million, up from $2.3 million reported for the third quarter of 2006. This includes 116% year-over-year growth excluding revenues from the company's two largest clients, AOL US and eBay, and demonstrates the Company's execution of its planned client diversification, and strong sales growth of its Community Center and moderation services.
"In the third quarter, we continued to grow revenues and expand our portfolio of products to capture new social networking opportunities," said Peter Friedman, LiveWorld's Chairman and CEO. "We moved from the Pink Sheets to begin trading on the NASD OTC Bulletin Board, which we believe will increase market visibility. We are expanding our offerings, launching new products, such as our next generation solution to encourage customer-to-customer support, and expanding our list of market leading clients. We are recognized as a leader in social marketing, private label social network application services and user content moderation, and will continue to position the Company for growth.
Revenues: Total revenues for the third quarter were $2.8 million, as compared to $2.3 million reported in the third quarter of 2006 and $2.5 million reported in the second quarter of 2007. Total revenues for the nine months ended September 30, 2007 grew 14% year-over-year to $7.9 million, compared to $6.9 million in the prior year period. Excluding AOL US and eBay, revenues for the nine months ended September 30, 2007, grew 121% over the prior year period.
Cash Used in Operations: For the nine months ended September 30, 2007, the Company used cash in operations of $623,000, which is a decrease of $1.2 million from the nine months ended September 30, 2006. This reduction in cash generation is a result of the expansion of personnel and systems infrastructure to develop sales opportunities, as well as, delivering on client projects and new development work.
Net Loss Including the Impact of Non-Cash Stock Expense: The net loss for the third quarter of 2007, including non-cash expense was $529,000, or a loss of $0.02 per share. The third quarter of 2007 net loss includes non-cash expense of approximately $286,000 for the period. This compares to a net loss for the third quarter of 2006 of approximately $242,000, or a loss of $0.01 per share. This included non-cash expense of $113,000 for the period. The net loss for the second quarter of 2007 was $637,000, or a loss of $0.02 per share, and included non-cash expense of $ 280,000 for the period.
Cash: The Company ended the third quarter of 2007 with approximately $2.3 million in cash and cash equivalents.
About LiveWorld
LiveWorld is leading the social marketing industry in creating innovative online communities, which help its clients build loyalty, brand awareness, customer engagement, customer care and business intelligence venues. The company provides Fortune 1000 clients overall social network marketing strategy, brand consulting , community management, design, development and hosting of private-label social network sites, and moderation services for these online communities as well as for any user content site. Applications and moderation services include rich profiles, friends lists, forums, blogs, photo albums, user video, customer support forums, groups and interactive webcasts.
With 20 years of experience, an extensive applications hosting platform, and a track record of delivering over 1 million hours of moderation services, LiveWorld offers its clients a team of experienced community managers and moderators who oversee activity and user content online. LiveWorld deploys its services in more than 60 country-language combinations, and is the trusted partner of leading brands worldwide, including: A&E, The Campbell Soup Company, The Coca Cola Company, eBay, HBO, HSBC, Kraft Foods, LeapFrog, Neutrogena, MINI Cooper USA, , TJX, QVC and many others.
LiveWorld is headquartered in San Jose, California with additional offices in New York City and London. For further information visit www.liveworld.com
"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, LiveWorld's efforts to list its securities on the OTCBB, and the results of its product development efforts. 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. (See the Company's July 13, 2007 Second Amended Registration Statement on Form 10-SB for a list that includes other possible risk factors.)
LiveWorld Contacts
PR Contact: Falguni Bhuta: Krause Taylor Associates falguni@krause-taylor.com (408) 918-9087
IR Contact: David Houston: LiveWorld, Inc. ir@liveworld.com 408 615-8496