LiveWorld Reports Financial Results for the 2nd Quarter 2013

Updated

LiveWorld Reports Financial Results for the 2nd Quarter 2013

19% Revenue Growth and Continued Profitability

SAN JOSE, Calif. & NEW YORK--(BUSINESS WIRE)-- LiveWorld, Inc. (OTC Markets: LVWD), today announced the financial results for the quarter ended June 30, 2013. Total revenues were $3.7 million for the quarter as compared to the $3.1 million for the quarter ended June 30, 2012. This was an increase of approximately $584,000 or 19% period-over-period. The Company's revenues for the six months ended June 30, 2013 were approximately $7.6 million, as compared to $5.8 million for the six months ended June 30, 2012. This was an increase of approximately $1.8 million or 31% period-over-period.


The Company reported net income for the first quarter of 2013 of $271,000, or 7% of total revenues. This result was a decrease of $139,000 when compared to the net income of $410,000, or 13% reported for the quarter ended June 30, 2012. The Company's net income for the six months ended June 30, 2013 was approximately $563,000, as compared to the net income of $684,000 for the six months ended June 30, 2012. This was a decrease of approximately $121,000 period-over-period.

The Company ended the quarter with approximately $3.9 million in cash and cash equivalents. The Company reported a positive working capital balance of approximately $3.4 million for the quarter ended June 30, 2013 as compared to the $2.8 million it had for the quarter ended December 31, 2012. The Company anticipates that its cash and cash equivalents will diminish for the remainder of this year as it expands its development, sales, and marketing efforts for the second half of 2013.

"We had a solid financial performance for the second quarter of the year with double digit revenue growth while maintaining profitability. We have been consistent with our strategy of increasing our investment in sales, marketing, and product development which has resulted in the reduced profitability over the first six months of 2013," said David Houston, Chief Financial Officer of LiveWorld. "We remain positive for 2013 and anticipate overall growth for the full year 2013."

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

LiveWorld Solutions

LiveWorld, a social content marketing company managing social media for Fortune 1,000 brands through engagement, moderation, and insight. Our social media solutions provide a human touch scaled by technology that creates value out of user content, and provides big cost savings.

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

About LiveWorld

LiveWorld, a social content marketing company, is a trusted partner to the world's largest brands, including the number-one companies in retail, CPG, pharmaceutical, and financial/travel services. We revolutionize the management of user content through innovative 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 faced by brands, 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 competitive advantage through management of user content in sheer volume, resulting in amplified brand presence, actionable insight, and increased customer loyalty. LiveWorld is headquartered in California, with offices in San Jose, CA and New York City, NY. For more information, go to www.liveworld.com. 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 June 30, 2012 and 2013 and the period ended December 31, 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)

June 30,

December 31,

2013

2012

ASSETS

Current assets

Cash and cash equivalent

$

3,859

$

3,382

Accounts receivable, net

3,127

1,415

Prepaid expenses

341

268

Total current assets

7,327

5,065

Property and equipment, net

291

234

Other assets

17

17

Total assets

$

7,635

$

5,316

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

$

243

$

235

Accrued employee expenses

640

504

Other accrued liabilities

33

17

Deferred revenue

3,016

1,478

Total current liabilities

3,933

2,234

Total liabilities

3,933

2,234

Stockholders' equity

Common stock: $0.001 par value, 100,000,000 shares authorized 33,257,634 issued and outstanding as of December 31, 2012 and June 30, 2013 respectively

33

33

Additional paid-in capital

141,235

141,178

Accumulated deficit

(137,566)

(138,129)

Total stockholders' equity

3,702

3,082

Total liabilities and stockholders' equity

$

7,635

$

5,316

LIVEWORLD, INC.

UNAUDITED CONDENSED STATEMENT OF OPERATIONS

(In thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2013

2012

2013

2012

Total revenues

$

3,733

$

3,149

$

7,607

$

5,789

Cost of revenues

1,185

1,025

2,411

1,851

Gross Margin

2,548

2,124

5,195

3,938

Operating Expense

Product development

521

432

1,049

822

Sales and marketing

1,024

751

2,125

1,384

General and administrative

687

511

1,389

1,018

Stock based compensation

32

18

58

37

Total operating expense

2,264

1,712

4,620

3,261

Profit from operations

284

412

575

677

Other income

0

0

0

10

Profit before tax

284

411

575

687

Provision for income taxes

(13)

(1)

(13)

(3)

Net income

271

410

563

684

Basic net income per share

$

0.01

$

0.01

$

0.02

$

0.02

Shares used in computing basic net income per share

33,257,634

33,157,634

33,257,634

33,157,634

Diluted net income per share

$

0.01

$

0.01

$

0.01

$

0.02

Shares used in computing diluted income (loss) per share

44,554,809

45,190,256

45,078,946

45,190,256

Departmental allocation of stock-based compensation:

Product development

$

12

$

8

$

22

$

17

Sales and marketing

8

5

15

11

General and administrative

13

5

21

9

Total stock-based compensation

$

32

$

18

$

58

$

37

LIVEWORLD, INC.

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2013

2012

2013

2012

Cash flows from operating activities:

Net income

$

271

$

410

$

563

$

684

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

Depreciation of long-lived assets

33

19

60

39

Stock-based compensation

32

18

58

37

Changes in operating assets and liabilities:

Accounts receivable

1,149

1,763

(1,712)

(1,297)

Other assets

(106)

(44)

(73)

(8)

Accounts payable

(132)

49

8

259

Accrued liabilities

(2)

48

152

172

Deferred revenue

208

34

1,539

2,049

Net cash provided by (used in) operating activities

1,453

2,297

595

1,935

Cash flows from investing activities:

Purchase of property and equipment

(97)

(29)

(117)

(89)

Net cash provided by (used in) investing activities

(97)

(29)

(117)

(89)

Cash flows from financing activities:

Note payable financing

-

(9)

-

(15)

Net cash provided by (used for) financing activities

-

-

-

-

Change in cash and cash equivalent

1,356

2,259

477

1,831

Cash and cash equivalents, beginning of period

2,503

895

3,382

1,323

Cash and cash equivalents, end of period

$

3,859

$

3,154

$

3,859

$

3,154

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IR Contact:
LiveWorld
David Houston, 408-615-8496
dhouston@liveworld.com
or
PR Contact:
TallGrass PR
Erica Rutan, 908-684-4332
erica.rutan@tallgrasspr.com

KEYWORDS: United States North America California New York

INDUSTRY KEYWORDS:

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