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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 a leading social marketing agency providing Fortune 1000 clients overall social network marketing strategy, brand consulting and site implementation in the social networking - online community world. LiveWorld specializes in private label social networks and online communities; designing and building social networks, application hosting, moderation and community management. Applications and moderation include profiles, forums, blogs, photos, user video, customer support forums and groups. Services are available in standard packages or customized, and as end-to-end solutions or on a modular basis. For example, clients can request just application hosting or just moderation. Among the unique benefits LiveWorld offers its customers is a team of experienced moderators, who oversee the activity and user content on LiveWorld, client and third party provided sites. LiveWorld deploys it services in over 60 country-language combinations.
With twenty years of experience, an extensive applications hosting platform and a track record of delivering over 1 million hours of moderation services, LiveWorld is the trusted partner of leading brands worldwide, including: America Online, A&E Television Networks, AOL UK, The Aspen Institute, BBC Worldwide, BEA Systems, BlogSafety.com, Breast Cancer.org, The Campbell Soup Company, Discovery Communications, eBay, HBO, IDG, The Hillary Clinton For President Campaign, Intel, JumpTheShark.com, Kraft Foods, Match.com, Mattel, MINI Cooper USA, MTV, The NBA, QVC, Tulane University, TV Guide and Verizon. Agency relationships have included AKQA (consumer packaged goods client), AOL Media (Dove, Holiday Inn Express, Target, media clients), Beam Interactive (MINI Cooper), Burson-Marsteller (Hillary Clinton For President Campaign), Digit (BBC WorldWide), Digitas (financial services client), Euro RSCG (Campbells, MINI Cooper), Hill, Holiday, Connors, Cosmopulos (financial services client), Mindshare (telecom client), MEC (consumer electronics client), Ogilvy (Dove, Mattel), Questus (Verizon), Wildfire (consumer packaged goods and pharmaceutical clients) and Wunderman UK (Land Rover).
LiveWorld is headquartered in San Jose, California. 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.)
Contact:
For LiveWorld
Krause Taylor Associates
Barbara Krause, 408-918-9081 (PR)
barbara@krause-taylor.com
The Blueshirt Group
Brinlea Johnson, 415-489-2189 (IR)
brinlea@blueshirtgroup.com