LiveWorld Reports Financial Results for the 4th Quarter

LiveWorld Reports Financial Results for the 4th Quarter

75% Revenue Growth and $0.02 EPS

SAN JOSE, Calif. & NEW YORK--(BUSINESS WIRE)-- LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the quarter ended December 31, 2012. Total revenues were $4.3 million for the quarter as compared to the $2.5 million for the quarter ended December 31, 2011. This was an increase of approximately $1.8 million or 75% period-over-period. The Company's revenues for full year 2012 were approximately $13.6 million, as compared to $8.3 million for 2011. This was an increase of approximately $5.3 million or 64% year-over-year.


The Company reported net income for the fourth quarter of 2012 of $714,000, or 16% of total revenues. This result was an improvement of $1.1 million when compared to the net loss of $356,000, or 14% of total revenues reported for the quarter ended December 31, 2011. The Company's net income for the 2012 was approximately $1.8 million, as compared to the net loss of $292,000 for 2011.

The Company ended the quarter with approximately $3.4 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $2.8 million for the period ended December 31, 2012 as compared to the $1.0 million it had at the end of 2011. The Company currently anticipates a cash burn for the first quarter of 2013, and to be cash neutral for the full fiscal 2013 year.

"Overall 2012 was a positive year for us, as we made tremendous progress across the company," stated David Houston, Chief Financial Officer of LiveWorld. "As we move forward in 2013 we will continue creating innovative technologies and services to grow and diversify our offerings. We remain committed to investing in all aspects of our business paying particular attention to our sales and marketing efforts in 2013."

Detailed quarterly financial information may be downloaded at www.liveworld.com (financials page) or at www.otcmarkets.com.

LiveWorld Solutions

LiveWorld, a user content management company, protects the world's largest brands and provides them with real actionable insights and relationship engagement by using cutting edge technology that scales human management of user content:

  • Social Content Management System (SCMS) Technology Platform: The LiveWorld SCMS aggregates user content across social channels and enables high scale, high quality cost efficient review and management by human moderators and community managers. The SCMS is directly integrated with the Facebook Wall, other Facebook native applications, Twitter, custom applications built for Facebook as well as other social networks and community platforms such as LiveWorld Jive.

  • Protecting Brands With Moderation: The combination of our SCMS platform and services protects brands by reviewing, removing, escalating and responding at a rate of up to 1,000 actions/hr./moderator The SCMS connects to 1 social web page or can integrate thousands of Facebook pages, Twitter pages and community web sites into a common, consistent workflow. Coverage ranges from a few hours/day to 24×7 to thousands of hours/day.

  • Actionable Business Insight: Including tagging of all user content reviewed, metrics reporting and qualitative analysis based on LiveWorld's unique culture-tone-engagement framework. Enables brands to know what their customers actually think and what to do about it.

  • Engagement for Marketing and Service & Support: For customer engagement and social service & support, including social media strategy with a focus on community cultural models, community programming plans, community management, day-to-day online engagement and social media crisis management.

  • Global: Solutions available in up to 70 country-language combinations.

LiveWorld is a Facebook ® Preferred Marketing Developer (PMD) in the Pages category.

About LiveWorld

LiveWorld, a user content management company, is a trusted partner to the world's largest brands, including the top companies in retail, CPG, pharmaceutical, and financial/travel services. We revolutionize the management of user content through innovative proprietary technology, leading edge services, and deep integration with client marketing and customer support teams. Scaling human review of user content and human touch points, LiveWorld removes obstacles that brands face, allowing them to engage more deeply in social media. In an innovative approach that encompasses review, management, and analysis of user content, LiveWorld provides 24/7 brand protection through "always on" moderation and engagement across social channels, applications, and sites. The LiveWorld solution offers a competitive advantage through management of user content in sheer volume, resulting in amplified brand presence, and proven to improve social media marketing and increase customer loyalty. LiveWorld is headquartered in California, with offices in San Jose, CA and New York City. For more information, go to www.liveworld.com (OTC Markets: LVWD). Follow us at @LiveWorld

"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. The balance sheet, operating results, and statements of cash flows for the periods ended December 31, 2011 and 2012 where neither audited nor reviewed by an independent accounting firm and are subject to change upon such a review or audit being completed. 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.

LIVEWORLD, INC.

UNAUDITED CONDENSED BALANCE SHEETS

(In thousands, except share data)

December 31,

December 31,

2012

2011

ASSETS

Current assets

Cash and cash equivalent

$

3,382

$

1,323

Accounts receivable, net

1,415

857

Prepaid expenses

268

135

Total current assets

5,065

2,315

Property and equipment, net

234

132

Other assets

17

17

Total assets

$

5,316

$

2,464

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

235

$

12

Accrued employee expenses

504

348

Other accrued liabilities

17

10

Current portion of note payable

----

15

Deferred revenue

1,478

889

Total current liabilities

2,234

1,274

Total liabilities

2,234

1,274

Stockholders' equity

Common stock: $0.001 par value, 100,000,000 shares authorized 33,257,634 and 33,157,634 issued and outstanding as of December 31, 2012 and December 31, 2011 respectively

33

33

Additional paid-in capital

141,178

141,094

Accumulated deficit

(138,129

)

(139,938

)

Total stockholders' equity

3,082

1,190

Total liabilities and stockholders' equity

$

5,316

$

2,464

LIVEWORLD, INC.

UNAUDITED CONDENSED STATEMENT OF OPERATIONS

(In thousands, except per share data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2012

2011

2012

2011

Total revenues

$

4,350

$

2,491

$

13,557

$

8,271

Cost of revenues

1,447

832

4,419

2,840

Gross Margin

2,903

1,659

9,138

5,431

Operating Expense

Product development

556

374

1,898

1,398

Sales and marketing

1,042

534

3,250

2,041

General and administrative

524

362

2,068

1,427

Stock based compensation

23

26

81

114

Total operating expense

2,145

1,297

7,297

4,979

Income from operations

758

363

1,841

451

Interest expense, net

----

----

----

(2

)

Other income

----

----

12

----

Income before tax

758

363

1,853

449

Provision for income taxes/(benefit)

44

----

44

(5

)

Equity in net loss of unconsolidated affiliate

----

(719

)

----

(736

)

Net income / (loss)

714

(356

)

1,809

(292

)

Basic income / (loss) per share

$

0.02

$

(0.01

)

$

0.05

$

(0.01

)

Shares used in computing basic loss per share

33,257,634

33,157,634

33,197,981

33,157,634

Diluted net income / (loss) per share

$

0.02

$

(0.01

)

$

0.04

$

(0.01

)

Shares used in computing diluted income (loss) per share

44,085,483

33,157,634

42,148,213

33,157,634

Departmental allocation of stock-based compensation:

Product development

$

5

$

11

$

30

$

56

Sales and marketing

10

10

29

37

General and administrative

8

5

23

21

Total stock-based compensation

$

23

$

26

$

81

$

114

LIVEWORLD, INC.

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2012

2011

2012

2011

Cash flows from operating activities:

Net income (loss)

$

714

$

(356

)

$

1,809

$

(292

)

Adjustments to reconcile net income (loss) provided by (used in) operating activities:

Depreciation of long-lived assets

26

17

87

80

Stock-based compensation

23

26

81

114

Loss on sale of assets

Equity in net loss of unconsolidated affiliate

----

797

----

815

Changes in operating assets and liabilities:

Accounts receivable

992

666

(558

)

(165

)

Other assets

(122

)

(9

)

(134

)

(56

)

Accounts payable

(11

)

(189

)

223

(49

)

Accrued liabilities

(123

)

(39

)

163

(1

)

Deferred revenue

(1,612

)

(300

)

588

311

Net cash provided by (used in) operating activities

(70

)

614

2,260

756

Cash flows from investing activities:

Purchase of property and equipment

(41

)

(60

)

(189

)

(117

)

Net cash provided by (used in) investing activities

(41

)

(60

)

(189

)

(117

)

Cash flows from financing activities:

Capital lease financing

----

----

----

(38

)

Note payable financing

----

(6

)

---

(29

)

Net cash provided by (used for) financing activities

----

(6

)

----

(67

)

Change in cash and cash equivalent

(110

)

547

2,059

573

Cash and cash equivalents, beginning of period

3,492

776

1,323

750

Cash and cash equivalents, end of period

$

3,382

$