Glowpoint Reports Fourth Quarter and Full Year 2012 Results

MURRAY HILL, N.J., March 7, 2013 /PRNewswire/ -- Glowpoint, Inc. (NYSE MKT: GLOW), a leading global provider of cloud managed video services, today reported its financial results for the fourth quarter and fiscal year ended December 31, 2012.

Fourth quarter revenues for cloud managed video services ("Managed Services Combined" as reported) were $5.2 million, an increase of 51% over the same period last year. Managed Services Combined represents 58% of total revenue in the quarter, up from 49% in the prior year period.  Network services revenue for the quarter was $3.2 million, a slight decrease of 1% over the same period last year.  One-time and event-based revenues ("Professional and other services" as reported) were $538,000 for the quarter, compared to $345,000 in the fourth quarter of 2011.Fourth quarter results include the impact of the acquisition of Affinity VideoNet on October 1, 2012.

Adjusted EBITDA (as defined and reconciled to GAAP) for the fourth quarter was $934,000, an increase of 13% over the same period last year. Due in part to a one-time tax benefit of $2.2 million related to the acquisition valuation, net income for the fourth quarter was $1.2 million, an increase of $938,000 over the same period last year.

"We are pleased to have achieved our primary goals of consistent positive quarterly adjusted EBITDA, greater use of our managed service platform and customer growth through the acquisition of Affinity VideoNet," stated Peter Holst, Glowpoint's chief executive officer. "For 2013, our primary financial goal will be maintaining that profitability while driving revenue growth in the second half of the year based on the expansion of our product mix and the increasing revenue from our automated services."

For the full year ended December 31, 2012, cloud managed video service revenue was $14.9 million, an increase of 17% over the prior year. Network services revenue for the full year was $12.4 million, a decrease of 8% over the prior year. One-time and event-based revenue was $1.8 million, compared to $1.6 million in the prior year.

Adjusted EBITDA for the fiscal year ended December 31, 2012 was $3.1 million, an increase of 24% over the prior year. Adjusted EBITDA margin was 11% compared to 9% in the prior year. Net income for the fiscal year period was $1.1 million, an increase of $681,000 over the prior year.

"We are taking steps to shape a more efficient service delivery solution with higher levels of profitability in 2013," continued Mr. Holst. "Our focus will be on mobility-related services and broadening our ecosystem of solutions for customers, while looking to leverage the powerful growth of tablets and smartphones as video-enabled devices. We intend to sustain our leadership in managing complex and diverse video environments where we have engineering, distribution and scale advantages while investing selectively in relatively new, but rapidly growing segments."

Key business metrics

• Number of managed telepresence and videoconferencing rooms increased over 100% to 2,410 for 2012 as compared with 2011
• Number of managed conferences increased 29% to 78,236 for 2012 as compared with 2011
• Number of certified enterprise video systems on the Glowpoint network increased 12% to 49,112 for 2012 as compared with 2011

For the twelve months ended December 31, 2012, capital expenditures were $740,000, and as of March 5, 2013, there were 28,731,139 shares of common stock outstanding.

Teleconference

Glowpoint will host a conference call at 4:30 p.m. EST today to discuss the financial results for Q4 and Full Year 2012, along with updates on the business into 2013. To view the webcast, please visit:https://glowpoint.webcasts.com. To participate in the teleconference, callers may dial the toll free number +1 877-407-1869 (U.S. callers only) or +1 201-689-8044 (from outside the U.S.). For those unable to view or participate in the live call, a recording of the call will be archived for viewing two hours following the call at www.glowpoint.com/investor-relations.

Supporting link

• Glowpoint Investor Information
  

About Glowpoint

Glowpoint, Inc. (NYSE MKT: GLOW) provides cloud and managed video services that make video meetings simple, reliable, and the standard for bringing people together for business meetings. Through our OpenVideo® cloud, we make video meetings the replacement for in person and audio conferencing with our suite of cloud and managed services that permit any device to connect across any network, simply and reliably. Glowpoint supports thousands of clients located in 68 countries and is the trusted partner for leading unified communications providers, telepresence manufacturers, global carriers and A/V integration firms. In addition, Glowpoint offers access to thousands of public videoconferencing facilities to extend businesses reach and provide the ability to meet face to face across the globe without boundaries. To learn more please visit www.glowpoint.com.

Non-GAAP financial information

Adjusted EBITDA is defined as income (loss) from continuing operations before depreciation, amortization, interest expense, interest income, taxes, stock-based compensation, acquisition costs and severance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenues. Adjusted EBITDA is not intended to replace operating income, net income, cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles. Rather, Adjusted EBITDA is an important measure used by management to assess the operating performance of the company. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Additionally, Adjusted EBITDA as defined here does not have the same meaning as EBITDA as defined in our Securities and Exchange Commission filings prior to this date. A reconciliation of Adjusted EBITDA to net income from continuing operations is shown below.

Forward looking and cautionary statements

The information in this release may contain statements that are or may be deemed to be forward-looking statements and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. These factors, risks, and uncertainties include market acceptance and availability of new video communications services; the non-exclusive and terminable-at-will nature of sales agreements; rapid technological change affecting demand for our services; competition from other video communication service providers; and the availability of sufficient financial resources to enable us to expand our operations, as well as other risks detailed from time to time in our filings with the Securities and Exchange Commission. We make no representation or warranty that the information contained herein is complete and accurate; we have no duty to correct or update any information.

(Logo: http://photos.prnewswire.com/prnh/20111222/LA26621LOGO)

INVESTOR CONTACT:
Investor Relations
Glowpoint, Inc.
+1 973-855-3411
[email protected] 
www.glowpoint.com

SOURCE Glowpoint, Inc.