Wizzard Software (NYSE Amex: WZE) announced third quarter 2009 financial results today, recording revenues of $1,384,218, a 10% decrease from revenues of $1,533,339 in the third quarter of 2008. The decrease for the third quarter of 2009 reflects a decrease in revenue in our healthcare business segment due to the economic recession, primarily due to a decrease in staffing revenues within our Billings, Montana healthcare subsidiary.
Despite the difficult economic conditions for advertising sales during the third quarter, Wizzard's media services business saw a 3.4% increase in revenue over the third quarter of 2008 and Wizzard's speech software business saw a 41% increase in revenue while delivering a record third quarter revenue total.
In the third quarter ended September 30, 2009, gross profit was up 28%, to $531,671, from the third quarter of 2008, while operating expenses totaled $1,347,526, a 23% decrease from Operating Expenses of $1,748,586 in the third quarter of 2008.
Wizzard's net loss available to common shareholders was $1,508,249, or $0.03 per share, in the third quarter of 2009, versus a net loss of $1,460,219, or $0.03 per share, in the third quarter of 2008. Included in the net loss were non-cash charges of $909,154 for interest expense on the discount of notes payable and the re-pricing of warrants.
"The third quarter of 2009 remained challenging for healthcare staffing and online brand advertising sales, but at the same time we saw definite signs of improvement in both segments during the third quarter from earlier this year,” said Chris Spencer, Wizzard CEO.
Wizzard launched new products in its software business in March that equated to a record third quarter for speech software sales.
While the healthcare segment is the main reason for the overall 10% drop in revenue, the Company saw continued strength in the home healthcare business with revenues up 15% over the second quarter of this year and saw significant improvement in the staffing business, which had revenues growing 78% from the second quarter of 2009.
Wizzard's media services business experienced network download requests of 332 million vs. 287 million in the third quarter of 2008, an increase of 45 million. The audience consuming podcasts from the Wizzard Network grew from 15 million monthly unique audience members at the end of the third quarter of 2008 to 18 million uniques at the end of the third quarter of 2009, an increase of 3 million monthly audience members. The number of publishers using Wizzard's podcasting service grew to 12,241 with publishing service revenues growing 14% from the third quarter of 2008.
In the third quarter of 2009, Wizzard's Media business delivered 14.6 million advertising impressions, revised upwards from an estimated 12.7 million impressions announced previously, compared to 5.5 million ad impressions in the third quarter of 2008, an increase of 165%. The Company noted that it is experiencing an increase in advertising campaign proposal activity in the beginning of the 4th quarter and signed a major U.S. automobile manufacturer to a two month campaign for the fourth quarter of 2009.
As of the date of this press release, Wizzard has acquired the distribution rights for 12 iPhone Apps and markets those Apps via targeted podcast advertising campaigns. Additionally, Wizzard has launched over 100 Podcast companion Apps for the iPhone in conjunction with podcast publishers using its service. These Apps allow podcast publishers to generate revenues through the sale of the Apps as well as future sales of content and subscriptions to content. To date, some of our top initial release podcast apps have converted over 18% of their audience from free, to paid, using our podcast companion App.
The previously mentioned numbers and statements are highlights from Wizzard's 2009 Third Quarter 10Q filing. For a complete and detailed financial description of Wizzard Software Corporation, please visit www.sec.gov, where the 2009 Third Quarter 10Q and all of Wizzard's SEC filings can be found.
Wizzard will discuss its third quarter 2009 10Q filing during its regularly scheduled conference call on November 17, 2009, at 1:00 p.m. ET. The following is the call-in information: (877) 407-0782 (U.S. callers); (201) 689-8567 (international callers). The call will be broadcast simultaneously and archived on the Internet at: http://www.investorcalendar.com/IC/CEPage.asp?ID=152420 Questions for consideration for the shareholder call can be emailed to ir@wizzardsoftware.com prior to 11:00 a.m. ET on November 17, 2009.
About Wizzard Software
Founded in 1996, Wizzard Software has become a leader in the speech technology application market. Wizzard architects solutions to business problems using its expertise in consulting, speech development tools and building speech based applications for the Desktop and Internet. Wizzard has achieved global recognition because of its expertise with voice communication whether it is via computer or telephone. Wizzard's successes have led to expanding speech technology opportunities in government and commercial sectors, including several healthcare industry products and services. Most recently, Wizzard Software entered the exciting new realm of digital media and is already the world's largest distributor of digital media via RSS (podcasts). For more information, please visit www.wizzardsoftware.com and www.wizzardsoftware.com
Legal Notice
Legal Notice Regarding Forward-Looking Statements: "Forward-looking Statements" as defined in the Private Securities litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies and acts of terror against the United States.
Contacts:
Investor Relations Contact:
Arthur Douglas & Associates
Art
Batson, 407-478-1120
