HACKENSACK, N.J., March 29 /PRNewswire-FirstCall/ -- GoAmerica, Inc. today announced results for the fourth quarter and year ended December 31, 2006.
Total revenue for the three months ended December 31, 2006 was approximately $4.2 million, compared to total revenue in the previous quarter of approximately $4.6 million and total revenue of approximately $1.2 million in the fourth quarter of 2005. Annual revenues for 2006 were approximately $12.8 million compared with $4.9 million for 2005.
Annual revenue growth resulted from a combination of two factors: continued growth in the Company's i711(R) relay and wireless divisions, and the Company's mid-year certification by the Federal Communications Commission (FCC), which enabled GoAmerica to fully recognize revenues associated with its relay services.
Prior to becoming certified, GoAmerica recognized only a portion of the revenue it generated through its i711 relay service because it was submitting minutes for payment through its business partner, Nordia, Inc. Nordia, which is also a certified relay provider, would submit i711 relay service minutes to the Interstate Telecommunications Relay Service (TRS) Fund on GoAmerica's behalf. Under this arrangement, Nordia received the reimbursement and paid GoAmerica its share of the revenue.
On a continuing operations basis, the Company posted a net profit for the fourth quarter of approximately $24,000, or $0.00 per diluted common share, compared with a net loss of $151,000, or $0.07 per diluted common share, during the previous quarter, and a net loss of $977,000, or $0.47 per diluted common share, during the fourth quarter of 2005. Also on a continuing operations basis, net loss for 2006 was approximately $1.4 million, or $0.65 per diluted common share, compared with a net loss of approximately $3.4 million or $1.61 per diluted common share in 2005.
Annual and quarterly results and comparisons to prior periods are presented reflecting the Company's prepaid calling card division as a discontinued operation. This sale was completed on October 2, 2006.
The Company maintains a strong balance sheet, with approximately $3.9 million in cash and cash equivalents as of December 31, 2006, as compared to $3.6 million as of September 30, 2006 and $5.1 million (including restricted cash) as of December 31, 2005.
"In December of 2006, GoAmerica entered the video relay service (VRS) market with i711(R) VRS, a PC-based relay service that emphasizes superior picture quality and i711's signature user experience," said Dan Luis, GoAmerica's CEO. "Customer feedback for i711 VRS has been very positive and during the second quarter we intend to expand our platform to support VRS calls made using videophones."
During the fourth quarter the Company also introduced i711(R) Call Me(TM) enabling hearing people to quickly and easily contact i711 users through relay.
"During 2006, our strategic accomplishments included achieving FCC certification, adding former AT&T and Qualcomm executives to our Board, and developing an array of new services, including video relay," said Luis. "Looking ahead to 2007, we are focused on growth through a continued emphasis on technology innovation, service quality, and unique approaches to marketing our services."
Summary of Recent Activities
* i711 VRS Launch. On December 5, GoAmerica introduced i711 VRS, its
first video relay service offering, featuring high picture quality, and
distinguishing features such as Smart Dialing and VRS Notepad(TM). The
PC-based service is "firewall friendly," making it easy to set up in
corporate, government and educational environments, as well as for use
in the home.
* i711 Call Me Launch. On December 12, GoAmerica introduced i711 Call Me,
a quick, easy way for a hearing person to initiate a relay call with a
deaf person. A hearing person simply dials an i711 user's toll-free
i711 Call Me number. The user receives the call, relayed by an i711
operator, through AOL Instant Messenger on their PC or wireless device.
If the i711 user is unavailable or does not wish to take the call, i711
Call Me emails the user with the caller's caller ID information instead.
The Company expects to file tomorrow its Annual Report on Form 10-K for the fiscal year ended December 31, 2006.
About i711.com Relay Services
i711.com offers both text- and video-based telecommunications relay services (TRS) calling via the Internet. Text services, often called "IP relay," enable deaf or hard of hearing callers to use a Web-connected computer or wireless handheld device to place calls, which are connected to a relay operator. The relay operator calls the voice number and then verbally speaks the text message typed by the deaf caller to the hearing recipient and types the hearing party's responses back to the deaf party.
Alternately, a hearing person can contact a deaf person through i711.com by dialing the deaf person's i711 Call Me number toll free. The call handling is identical to other forms of text relay, except that the hearing person initiates the call to the deaf person using any voice telephone.
Using i711 VRS, a deaf caller begins a call by communicating directly with a sign language interpreter over a live video connection; the interpreter places the call on the deaf person's behalf, and translates the sign language into audible speech for the hearing person, and back into sign language for the deaf caller. This real-time call enables a deaf person to have phone conversations with hearing friends, family and colleagues more naturally using sign language.
TRS is a free service to all callers. TRS providers -- such as GoAmerica -- receive reimbursement from a pool of funds, collected from telephone carriers by the Federal Communications Commission (FCC) and administered by the National Exchange Carriers Association (NECA), based on the number of "conversational" minutes handled by each provider.
About GoAmerica
GoAmerica provides a wide range of wireless and relay communications services, customized for people who are deaf, hard-of-hearing or speech impaired. The Company's vision is to improve the quality of life of its customers by being their premier provider of innovative communication services. 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 or via Internet relay by visiting http://www.i711.com/.
Safe Harbor
The statements contained in this news release that are not based on historical fact are "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 those of GoAmerica including: (i) our limited operating history; (ii) our ability to respond to the rapid technological change of the telecommunications relay service (known as "TRS") and/or wireless data industries and offer new or enhanced services; (iii) our dependence on wireless carrier networks and technology platforms supporting our relay services; (iv) our ability to respond to increased competition in the TRS and/or wireless data industries; (v) our ability to integrate acquired businesses and technologies; (vi) our ability to generate revenue growth; (vii) our ability to increase or maintain gross margins, profitability, liquidity and capital resources; and (viii) 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," the "i711.com" logo, and "Relay and Beyond," are registered trademarks of GoAmerica. "i711.com," "i711 Wireless," "ClickRelay," "i711 Call Me," "One-Click Call Back," "VRS Notepad," "VRS to Go," and "Clear Mobile" are also trademarks and/or service marks of GoAmerica. Other names may be trademarks of their respective owners.
GOAMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2006 2005
Assets
Current assets:
Cash and cash equivalents $3,870 $4,804
Accounts receivable, net 1,891 931
Merchandise inventories, net 329 139
Prepaid expenses and other current assets 233 135
Assets of discontinued operations -- 378
Total current assets 6,323 6,387
Other assets 7,556 7,688
Total assets $13,879 $14,075
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $559 $765
Accrued expenses 1,982 553
Deferred revenue 100 67
Other current liabilities 65 19
Liabilities of discontinued operations -- 173
Total current liabilities 2,706 1,577
Other liabilities 112 --
Stockholders' equity 11,061 12,498
$13,879 $14,075
GOAMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
2006 2005 2006 2005
(Unaudited) (Unaudited)
Revenues:
Relay services $3,370 $487 $8,695 $1,261
Subscriber 256 381 1,190 2,348
Commissions 409 206 2,454 755
Equipment 163 145 429 442
Other 3 (2) 8 125
4,201 1,217 12,776 4,931
Costs and expenses:
Cost of relay services 2,293 -- 5,320 --
Cost of subscriber airtime 276 241 845 967
Cost of equipment revenue 156 204 536 585
Cost of network operations 29 79 110 231
Sales and marketing 785 393 2,494 1,166
General and administrative 1,315 1,803 4,589 4,777
Research and development 88 108 359 363
Depreciation and amortization (12) 110 362 485
Amortization of other
intangibles -- 75 -- 639
4,930 3,013 14,615 9,213
Loss from operations (729) (1,796) (1,839) (4,282)
Other income (expense):
Terminated merger costs (59) -- (490) --
Interest income (expense), net 23 55 169 160
Total other income (expense), net (36) 55 (321) 160
Loss before benefit from income
taxes (765) (1,741) (2,160) (4,122)
Income tax benefit 789 764 789 764
Income (loss) from continuing
operations 24 (977) (1,371) (3,358)
Loss from discontinued operations (18) (358) (589) (1,014)
Net income (loss) $6 $(1,335) $(1,960) $(4,372)
Loss per share -- Basic and Diluted:
Loss from continuing
operations $(0.00) $(0.47) $(0.65) $(1.61)
Loss from discontinued
operations (0.00) (0.17) (0.28) (0.48)
Basic and Diluted net loss
per share $(0.00) $(0.64) $(0.93) $(2.09)
Weighted average shares used
in computation of basic and
diluted net loss per share 2,140,696 2,093,451 2,105,184 2,093,445
