2008-08-15 07:00:00
Continues Business Integration and Synergistic Revenue Growth
HACKENSACK, N.J., Aug. 15 /EMWNews/ -- GoAmerica, Inc.
(Nasdaq: GOAM), a provider of relay and wireless communications and
professional interpreter services for deaf, hard-of-hearing, and speech-
impaired persons, today announced unaudited results for the quarter ended
June 30, 2008 and the filing of its Quarterly Report on Form 10-Q with the
Securities and Exchange Commission ("SEC").
Total revenue for the three months ended June 30, 2008 was $30.6
million, compared to $4.3 million for the three months ended June 30, 2007,
and revenue for the six months ended June 30, 2008 was $59.7 million,
compared to $8.6 million for the six months ended June 30, 2007. The
revenue growth is primarily attributable to the Company's first quarter
purchase of the telecommunications relay services business of Verizon and
its merger with Hands On Video Relay Services, Inc., as well as organic
growth in the Company's video relay services business.
Income from operations for the three months ended June 30, 2008 was
approximately $1.2 million compared with a loss from operations of $810,000
for the three months ended June 30, 2007. Income from operations, when
adjusting for approximately $2.0 million of non-cash employee compensation
charges and integration costs related to the acquisitions, was $3.2 million
for the three months ended June 30, 2008.
Net loss for the three months ended June 30, 2008 was approximately
$201,000 compared with a net loss of $786,000 for the three months ended
June 30, 2007. Net loss available to common stockholders, when taking into
account the $813,000 of accrued preferred stock dividends, was $1.0
million, or $0.11 per common share, for the three months ended June 30,
2008 compared with a net loss $786,000, or $0.36 per common share, for the
three months ended June 30, 2007.
Income from operations for the six months ended June 30, 2008 was
approximately $3.4 million compared with a loss from operations of $1.5
million for the six months ended June 30, 2007. Net income for the six
months ended June 30, 2008 was approximately $357,000 compared with a net
loss of $1.6 million for the six months ended June 30, 2007.
Cash provided from operations, when adjusting for the effects of the
transactions, was $1.8 million, principally resulting from income from
operations. Capital expenditures for the six months ended June 30, 2008
were $1.5 million, used primarily to fund capacity expansion and call
center operations.
As of June 30, 2008, GoAmerica had approximately $24.4 million in
unrestricted cash and cash equivalents as well as $0.5 million in
restricted cash. Additionally, the Company has $15.0 million of borrowing
capacity under its revolving line of credit.
"Today's results demonstrate our continued emphasis on operational
performance while maintaining our focus on integration activities, building
operational capacity, and delivering a high quality of service to our
customers," said John Ferron, CFO and COO of GoAmerica.
"Strategically, the company is where we wanted to be at this point in
the year," said Dan Luis, CEO of GoAmerica. "Our integration efforts
continue at a rapid pace, our team is coming together, and we're creating
an operational platform that will enable us to continue to be the preferred
communications provider to the communities we serve."
Summary of Recent Activities
-- On June 26, 2008, the Company became the first relay provider in the
nation to complete a video call between a hearing person and a deaf person
using a real, 10-digit phone number. For more information and call
transcripts, visit http://www.goamerica.com/10digit.
-- On July 1, 2008, the Company announced it had merged with two of the
nation's premier sign language interpreting services firms: Sign Language
Associates (SLA) and Visual Language Interpreting (VLI), both of which are
based in the Washington, D.C. metro area. The SLA and VLI transactions made
GoAmerica the nation's leading provider of on-site sign language
interpreting services, and will provide broader access to Video Remote
Interpreting (VRI) services for its customers. The transactions also expand
the availability of certified, high-quality interpreters and
transcriptionists for the Company's other products and services.
-- On July 7, 2008, the Company provided attendees of the 49th biennial
National Association of the Deaf (NAD) Conference with the first public
demonstration of the upcoming Hands On VRS(R) Mobile Video Phone(TM)
(MVP(TM)) and VideoSign software.
-- On July 11, 2008, the Company named Ahmet Corapcioglu as its Chief
Information Officer. As Chief Information Officer, Mr. Corapcioglu is
responsible for upgrading the Company's network and technology
infrastructure to ensure a best of breed service in order to enhance our
customers' experience. Mr. Corapcioglu most recently served as Partner,
IBM, Global Services and previous to that was Vice President, Information
Technology, Qwest Communications.
-- On August 11, 2008, the Company announced the appointment of
Kathleen Abernathy to its Board of Directors. Ms. Abernathy is currently a
partner with Akin Gump Strauss Hauer & Feld LLP. From June 2001 to December
2005, she served as commissioner to the Federal Communications Commission.
Prior to that time, Ms. Abernathy was Vice president, Public Policy at
Broadband Office Communications, Inc., a provider of commercial
communications services and director of Frontier Communications, Inc.
"We are now positioned to be the leading, end-to-end service provider
to the deaf and hard of hearing community," said Ed Routhier, President and
Vice-Chairman of GoAmerica. "The additions of SLA and VLI diversify our
revenue and service offerings, but equally important, they strengthen our
position as the employer of choice, offering interpreters who join our
company greater diversity in the practice of the profession."
About GoAmerica
GoAmerica is one of the nation's largest providers of communication
services for the deaf, hard of hearing, and speech-disabled communities. As
a leading provider of onsite interpreting services, video relay and text
relay services, and video remote interpreting, the Company delivers a wide
array of options designed to meet the varied communication needs of its
customers. The Company's vision is to improve the quality of life of its
customers by being their premier provider of high quality, innovative
communication services that break down communications barriers. For more
information on the Company or its services, visit http://www.goamerica.com
or contact GoAmerica directly at TTY 201-527-1520, voice 201-996-1717,
Internet Relay by visiting http://www.i711.com or http://www.ip-relay.com,
or video phone by connecting to hovrs.TV.
Safe Harbor
The statements contained in this news release that are not based on
historical fact -- including statements regarding the anticipated results
of the transactions described in this press release -- constitute "forward-
looking statements" that are made in reliance upon the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of forward-looking
terminology such as "may", "will", "expect", "estimate", "anticipate",
"continue", or similar terms, variations of such terms or the negative of
those terms. Such forward- looking statements involve risks and
uncertainties, including, but not limited to: (i) our ability to integrate
the businesses and technologies we have acquired; (ii) our ability to
respond to the rapid technological change of the wireless data industry and
offer new services; (iii) our dependence on wireless carrier networks; (iv)
our ability to respond to increased competition in the wireless data
industry; (v) our ability to generate revenue growth; (vi) our ability to
increase or maintain gross margins, profitability, liquidity and capital
resources; and (vii) difficulties inherent in predicting the outcome of
regulatory processes. Such risks and others are more fully described in the
Risk Factors set forth in our filings with the Securities and Exchange
Commission. Our actual results could differ materially from the results
expressed in, or implied by, such forward-looking statements. GoAmerica is
not obligated to update and does not undertake to update any of its forward
looking statements made in this press release. Each reference in this news
release to "GoAmerica", the "Company" or "We", or any variation thereof, is
a reference to GoAmerica, Inc. and its subsidiaries.
"GoAmerica", the "GoAmerica" logo, "i711", and the "i711.com" logo,
"Relay and Beyond", and "Hands On VRS" are registered trademarks of
GoAmerica. "i711.com", "i711 Wireless", "Mobile Video Phone", and "MVP" are
trademarks and service marks of GoAmerica. Other names may be trademarks of
their respective owners.
CONTACTS:
John Ferron
GoAmerica
CFO and COO
jferron@goamerica.com
707-658-4690
Laura Kowalcyk
CJP Communications
lkowalcyk@cjpcom.com
212-279-3115 x209
GOAMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2008 2007
Assets
Current assets:
Cash and cash equivalents $24,410 $2,368
Accounts receivable, net 13,390 1,960
Merchandise inventories, net 303 206
Prepaid expenses and other current assets 1,476 220
Total current assets 39,579 4,754
Goodwill 61,194 6,000
Identifiable intangible assets, net 58,586 --
Other assets 8,189 7,544
Total assets $167,548 $18,298
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $4,176 $1,285
Accrued expenses 11,371 3,623
Deferred revenue 40 94
Loan payable -- 3,532
Current portion of long term debt 400 --
Other current liabilities 124 88
Total current liabilities 16,111 8,622
Long term debt less current portion, net of
discount of $2,170 at June 30, 2008 67,230 --
Other liabilities 1,909 124
Stockholders' equity 82,298 9,552
$167,548 $18,298
GOAMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Revenues:
Relay services $29,861 $3,834 $57,704 $7,494
Interpreting 627 -- 1,261 --
Other 161 471 747 1,118
30,649 4,305 59,712 8,612
Costs and expenses:
Cost of relay services 16,528 2,670 31,635 5,075
Cost of interpreting 681 -- 1,239 --
Cost of other 242 476 894 949
Sales and marketing 3,531 479 5,712 1,003
General and administrative 6,108 1,257 11,972 2,613
Research and development 565 143 1,411 257
Depreciation and amortization 227 90 430 163
Amortization of intangible
assets 1,601 -- 3,030 --
29,483 5,115 56,323 10,060
Income (loss) from operations 1,166 (810) 3,389 (1,448)
Other income (expense):
Settlement losses -- -- -- (162)
Gain on interest rate cap
agreement 241 -- 241 --
Interest income (expense), net (1,608) 24 (3,273) 59
Total other income (expense), net (1,367) 24 (3,032) (103)
Income (loss) before income taxes (201) (786) 357 (1,551)
Income tax provision -- -- -- --
Net income (loss) (201) (786) 357 (1,551)
Preferred dividends (813) -- (1,527) --
Net loss applicable to common
stockholders $(1,014) $(786) $(1170) $(1,551)
Loss per common share:
Basic $(0.11) $(0.36) $(0.13) $(0.70)
Diluted $(0.11) $(0.36) $(0.13) $(0.70)
Weighted average shares
outstanding
Basic and Diluted 9,159,071 2,204,097 9,152,203 2,203,793
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