LiveWorld Announces 1st Quarter Financial Results
LiveWorld Reports Positive Cash Flows and Net Income for the Quarter
SAN JOSE, Calif., NEW YORK & LONDON — May 19, 2009 — LiveWorld, Inc. (OTC Pink Sheets: LVWD.PK), a leading social media marketing agency, today reported $2.6 million in total revenues for the first quarter of 2009 as compared to the $3.0 million in total revenues reported for the first quarter of 2008.
The Company reported net income for the first quarter of 2009 of $21,000. This result was an improvement of $524,000 when compared to the net loss of $503,000 reported for the first quarter of 2008.
Adjusted EBITDA for the first quarter of 2009 was $239,000, which was a significant improvement from the $243,000 loss for the first 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 generated $68,000 in cash for the first quarter of 2009 which was an improvement of $165,000 when compared to the use of cash of $97,000 for the first quarter of 2008. The company ended the quarter with $1.4 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $1.3 million for the first quarter of 2009 as compared to the $1.2 million it had at the end of the fourth quarter of 2008.
"The deterioration of the global economy had an impact on our opportunities in the first quarter resulting in lower revenues compared to last year," said David Houston, Chief Financial Officer of LiveWorld. "Overall we are pleased with our execution and the strength of our business model which enables us to be cash flow positive while dealing with this difficult economic environment.
"In the short term we will remain cautious as it relates to market opportunities for growth. However, we are optimistic about the long term prospects for our business and the service offerings we will bring to market," he said.
Second Quarter 2009 Business Outlook
The Company anticipates its total revenues will be less than it reported for the second quarter of 2008 and inline with the revenues for the first quarter of 2009. However, the Company believes the cost reductions will improve the second quarter operational results compared to the second 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