LiveWorld Announces 2nd Quarter Financial Results
Company strengthens its balance sheet and improves positive cash flows
SAN JOSE, Calif., NEW YORK & LONDON — August 12, 2009 — LiveWorld, Inc. (OTC Pink Sheets: LVWD.PK), a leading online social media agency, today reported $2.3 million in total revenues and a net loss of $177,000 for the second quarter of 2009 compared to $3.1 million in total revenues and a net loss of $138,000 for the second quarter of 2008. The lower revenues are primarily attributed to spending reductions by existing clients due to current economic conditions. These reductions were partially offset by work from new clients as well as program expansion by select clients.
The Company reported positive cash flows of $86,000 for the second quarter of 2009, an improvement of $247,000 compared to a cash burn of $161,000 for the second quarter of 2008. As of June 30, 2009, the Company had $1.5 million in cash and cash equivalents. Additionally, the Company reported a positive working capital balance of approximately $1.3 million at the end of the second quarter as compared to $1.2 million at the end of the fourth quarter of 2008.
“We are pleased to have maintained a strong and healthy balance sheet while continuing to invest in new product development,” said David Houston, Chief Financial Officer of LiveWorld. “We are successfully managing through the current economic downturn and believe we are well positioned for growth as the macroeconomic environment and spending for online marketing activities improves.
Adjusted EBITDA was $49,000 or 2% of total revenues for the second quarter of 2009 compared to $107,000 or 3% of total revenues for the second quarter of 2008. The reduction in the Company’s Adjusted EBITDA was due primarily to the reduced total revenues for the period. LiveWorld defines Adjusted EBITDA as net income or loss before accounting for net interest income, income taxes, depreciation and amortization, and non-cash stock-based compensation expense. 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.
Detailed quarterly financial information may be downloaded at www.liveworld.com 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.
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
