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Full Service Online Community Agency Delivers Solid Financial Performance
LOS GATOS, Calif., Sept. 14 /PRNewswire-FirstCall/ -- LiveWorld, Inc. (Pinksheets: LVWD.PK - News ) today released 6 quarters of financial results from Year End 2002 through Q2 2004. Revenue grew 103% overall and had strong growth in most quarters since Q1 2003. As of Q2 2004, LiveWorld has recorded 7 straight cash positive quarters and 5 straight quarters of profitability. The Company’s balance sheet has over $960, 000 in cash and no debt.
"This sustained positive financial performance demonstrates the value of our online community relationship marketing and support solutions, the quality of our clients and the dedication of our team," said Peter Friedman, Chairman and CEO. We have emerged from the depths of the economic downturn with a proven business model and are poised for growth."
As a cost savings measure in Q4 2002, the Company adjusted its status to remain a public company but without the requirements to file SEC reports. This saved the company over $200,000/year. Since then several Internet financial and stock sites have had out of date information on LiveWorld with their data based on the company’s SEC filing for Q3 2002. The information released by LiveWorld today will enable interested parties to have a better understanding of the Company’s significant revenue growth, profitable operations and strong balance sheet.
LiveWorld stated that its strategy is to invest in revenue growth while maintaining an approximately breakeven bottom line. The Company currently expects its 2nd half 2004 revenue to show significant growth over 1st half 2004. Consistent with past year patterns and due to the seasonal "up summer" nature of the business of some clients, revenue for Q3 2004 may be higher than Q4 2004, which is expected to be followed by growth in Q1 2005.
LiveWorld Financial Statements
(These statements have not been audited or reviewed by an outside accounting
firm and are subject to change upon such a review.)
Income Statement: 2002-2004
2002 Q1 '03 Q2 '03 Q3 '03
Revenue $2,120,663 $600,684 $649,613 $702,825
Expense * 6,303,314 767,118 681,435 683,767
Net Ordinary Income (4,182,652) (166,434) (31,821) 19,058
Other Income 82,877 2,418 5,959 11,034
Other Expense/(Expense
Reduction) ** (354,973) 1,000 (43,775) (7,946)
Net Other Income 437,850 1,418 49,734 18,980
Net Income ($3,744,802) ($165,016) $17,912 $38,037
Outstanding Shares 25,358,874 25,358,874 25,358,874 25,358,874
Earnings Per Share (EPS) ($0.1477) ($0.0065) $0.0007 $0.0015
Q4 '03 2003 Q1 '04 Q2 '04
Revenue $624,506 $2,577,628 $968,216 $1,217,323
Expense * 597,448 2,729,769 928,553 1,197,293
Net Ordinary Income 27,058 (152,140) 39,663 20,030
Other Income 12,720 32,130 2,963 2,776
Other Expense/(Expense
Reduction) ** (93,164) (143,885) (54,667) (1,178)
Net Other Income 105,884 176,016 57,630 3,954
Net Income $132,942 $23,875 $97,293 $23,984
Outstanding Shares 25,358,874 25,358,874 26,584,707 26,584,707
Earnings Per Share (EPS) $0.0052 $0.0009 $0.0037 $0.0009
Balance Sheet: Last 3 quarters
Dec 31, 03 Mar 31, 04 Jun 30, 04
Assets
Cash 946,506 949,441 960,833
Accounts Receivable, Net 269,878 408,018 410,720
Other Current Assets 36,162 132,687 136,241
Total Current Assets 1,252,546 $1,490,147 $1,507,795
Long Term Assets 258,479 294,250 282,971
Total Assets $1,511,025 $1,784,397 $1,790,766
Liabilities & Equity
Accounts Payable 32,114 115,899 29,504
Deferred Revenue 220,252 181,973 117,989
Other Current Liabilities 156,703 268,951 401,715
Total Current Liabilities 409,069 566,823 549,209
Total Long Term Liabilities -- -- --
Total Liabilities $409,069 $566,823 $549,209
Common Stock 25,481 25,481 25,481
Treasury Stock - Par (55) (55) (55)
Additional Paid-in
Capital 135,149,218 135,167,543 135,167,543
Treasury Stock Excess of
Par (22,159) (22,159) (22,159)
Retained Earnings (134,050,529) (133,953,237) (133,929,253)
Total Equity $1,101,956 $1,217,573 $1,241,557
Total Liabilities & Equity $1,511,025 $1,784,397 $1,790,766
Notes
**Expenses
Included in "Expense" are significant one time legal expenses the Company is incurring in 2004 associated with its efforts to collect money past due or otherwise due from past clients. *Other Income and Other Expense/(Expense Reduction)
2002
Other Income is mostly interest income.
Other Expense Reduction is mostly associated with restructuring and write off adjustments.
2003
Other Expense Reduction is mostly associated with accounting reversals of accruals from prior years.
Q1 2004
Other Expense Reduction is mostly associated with the net favorable impact of settlement of two one time legal matters related to payments and past due amounts from past clients for business transactions in Year 2000.
About LiveWorld, Inc.
LiveWorld (Pinksheets: LVWD.PK, www.liveworld.com ) is the leading full service online community agency that creates, operates and manages loyalty marketing, customer support, and business intelligence communities based on LiveWorld’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, eBay, HBO, MINIUSA, The Campbell’s Soup Company, Slimfast, Fidelity Investments, SUN Microsystems, A&E Television Networks, Discovery Communications, The Walt Disney Company and Warner Brothers. LiveWorld is headquartered in Los Gatos, California.
"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 current or future financial performance. 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, ability to acquire new customers, and other risk factors described in the Company’s latest 10Q and 10K filed with the SEC. Financial information quoted in this release represents results that have not been audited or reviewed by an outside accounting firm.