LiveWorld Announces 4th Quarter 2008 Financial Results
Company Improves Operating Margins and Reports Profitable Fourth Quarter
SAN JOSE, Calif., NEW YORK & LONDON — March 10, 2009 — LiveWorld, Inc. (OTC Pink Sheets: LVWD.PK), a leading social media marketing agency, today reported $3.0 million in total revenues for the fourth quarter of 2008 as compared to the $3.0 million in total revenues reported in the fourth quarter of 2007. The fourth quarter revenues were a 13% increase from the $2.6 million reported in the third quarter of 2008.
The Company reported net income for the fourth quarter of 2008 of $165,000, or $0.01 per share. This result was an improvement of $754,000 when compared to the net loss of $589,000 or $(0.02) per share reported in the fourth quarter of 2007. The Company increased its net income by $767,000 in the fourth quarter when compared to the net loss of $602,000, or $(0.02) per share for the third quarter of 2008.
Adjusted EBITDA for the fourth quarter of 2008 was $400,000, which was materially higher than the $370,000 loss for the fourth quarter of 2007. Additionally the Adjusted EBITDA improved by $752,000 when the fourth quarter numbers are compared to the $352,000 loss for the third quarter of 2008. LiveWorld defines Adjusted EBITDA as net income or loss with an add-back for depreciation and amortization, non-cash stock-based compensation expense, interest income net, and income taxes. Adjusted EBITDA is not a term defined by GAAP and as a result LiveWorld’s measure of Adjusted EBITDA might not be comparable to similarly titled measures used by other companies.
The company’s use of cash was $32,000 for the fourth quarter of 2008 which is a material improvement when compared to the use of cash of $302,000 for the fourth quarter of 2007 and the use of cash of $367,000 for the third quarter of 2008. The company ended the year with $1.4 million in cash and cash equivalents. The company reported a positive working capital balance of approximately $1.2 million for the fourth quarter of 2008 as compared to the $800,000 it had at the end of the third quarter of 2008.
“We are pleased with the quarterly results and the actions we took to improve the overall performance of the company,” said David Houston, LiveWorld’s Chief Financial Officer. “We believe the macroeconomic environment will remain challenging in the short-term, but we are cautiously optimistic that we will see continued improvements in our operations as a result of the changes we made in the fourth quarter.”
In the fourth quarter, the Company took action to align its operating expenses with its current revenue-generating opportunities. The Company reduced its headcount, overall payroll expenses and other operational spending. While the average reduction for employees was approximately 8% of their salary, the executives of the Company each had their salary reduced by 33%. The Company is considering implementing an incentive compensation program based on its financial and overall performance. The total savings for the company will be approximately $1.7 million annually.
First Quarter 2009 Business Outlook
The Company anticipates its total revenues will be less than it reported in either the first quarter of 2007 or the fourth quarter of 2008. However, the Company believes the cost reductions will improve the first quarter operational results compared to the first quarter of 2008.
Detailed quarterly financial information may be downloaded at http://www.liveworld.com/company/financials.html or at www.pinksheets.com.
About LiveWorld, Inc.
LiveWorld is the go-to social media marketing agency for everything global corporations need to leverage the power of social networks to build their brands and their business. LiveWorld thinks differently about how companies can use social networks for customer dialogue and relationships and is the only company that offers the combination of a full technology platform, moderation services, community management and marketing strategy, all in one place. This combination - unique in the industry - is the reason why more global brands turn to LiveWorld than any other firm for their ongoing, integrated social media marketing strategy and implementation.
With 24 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 70 country-language combinations, and is the trusted partner of leading brands worldwide, including: A&E Television Networks, The Campbell Soup Company, eBay, HBO, HSBC, Kraft Foods, LeapFrog, Neutrogena, MINI Cooper USA, TJX, QVC and many others. 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, 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. For a detailed discussion of these and other risk factors, please refer to LiveWorld’s Report on Form 10-K dated March 25, 2008. You can obtain a copy of the Form 10-K on either our website or the SEC Web site (www.sec.gov).
LiveWorld Contacts
PR Contacts:
Krause Taylor Associates:
Barbara Krause barbara@krause-taylor.com 1 (408) 981.2429 (cell)
IR Contact: David Houston: LiveWorld dhouston@liveworld.com 1 (408) 615.8496