Business News

GoAmerica(R) Announces Second Quarter 2008 Results

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 [email protected] 707-658-4690 Laura Kowalcyk CJP Communications [email protected] 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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Jordan Taylor

Jordan Taylor is Sr. Editor & writer from San Diego, CA. With over 20 years and 2650+ articles edited rest assured your Press Release will see traction.

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