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LAS VEGAS--(BUSINESSWIRE)--LiveDeal, Inc. (NASDAQ: LIVE), a provider of web-based local customer acquisition and related products for small businesses, today reported financial results for its first fiscal quarter ended December 31, 2011.
Net loss for the fiscal 2012 first quarter decreased 89%, or $1,538,756, to $191,638 from $1,730,394 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to the decrease in the company’s cost of services and general and administrative expenses described below. Gross profit for the fiscal 2012 first quarter increased 515%, or $515,549, to $615,594 from $100,045 reported for the fiscal 2011 first quarter, which is primarily ascribable to the decrease in the company’s cost of services described below.
Net revenues for the fiscal 2012 first quarter were $851,413, a decrease of $143,209 (14%) from $994,622 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to a pause in the company’s sales efforts since July 2011 during which time the company evaluated new sales programs, improved its marketing and fulfillment services, and implemented various cost reductions. The company’s cost of services for the fiscal 2012 first quarter was $235,819, a $658,758 (74%) decrease from $894,577 reported for the fiscal 2011 first quarter. The decrease was primarily ascribable to decreased fulfillment costs as the company took over fulfillment activities from third party vendors. General and administrative expenses for the fiscal 2012 first quarter were $766,808, a decrease of $1,205,761 (61%) from $1,972,569 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to decreased employee compensation and professional fee expenses.
Commenting on the results, Jon Isaac, LiveDeal’s newly appointed President and CEO, stated, “We are very encouraged with our recent financial results, especially since total operating losses have declined substantially due to the closing of unprofitable product lines, reductions in cost of services, and reductions in general and administrative expenses. We expect that continued operational improvements, along with top-line growth, can lead LiveDeal, Inc. toward profitability this fiscal year.”
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LiveDeal, Inc. and Subsidiaries Condensed Consolidated Balance Sheet (Unaudited) |
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December 31, |
September 30, |
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| Assets | |||||||||||||||||
| Cash and cash equivalents | $ | 2,177,605 | $ | 244,470 | |||||||||||||
| Accounts receivable, net | 556,350 | 654,856 | |||||||||||||||
| Prepaid expenses and other current assets | 73,023 | 113,323 | |||||||||||||||
| Total current assets | 2,806,978 | 1,012,649 | |||||||||||||||
| Accounts receivable, long term portion, net | 382,365 | 371,438 | |||||||||||||||
| Property and equipment, net | 131,111 | 171,201 | |||||||||||||||
| Deposits and other assets | 29,007 | 31,007 | |||||||||||||||
| Intangible assets, net | 1,193,145 | 1,222,334 | |||||||||||||||
| Total assets | $ | 4,542,606 | $ | 2,808,629 | |||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||
| Liabilities: | |||||||||||||||||
| Accounts payable | $ | 620,938 | $ | 600,908 | |||||||||||||
| Accrued liabilities | 398,533 | 424,595 | |||||||||||||||
| Notes payable | 900,000 | 1,000,000 | |||||||||||||||
| Current portion of capital lease obligation | 21,224 | 36,992 | |||||||||||||||
| Total current liabilities | 1,940,695 | 2,062,495 | |||||||||||||||
| Long term portion of capital lease obligation | — | — | |||||||||||||||
| Total liabilities | 1,940,695 | 2,062,495 | |||||||||||||||
| Commitments and contingencies | |||||||||||||||||
| Stockholders' Equity | |||||||||||||||||
| Series E convertible preferred stock, $0.001 par value | 10,866 | 10,866 | |||||||||||||||
| Common stock, $0.001 par value | 2,338 | 698 | |||||||||||||||
| Treasury stock (4,252 shares carried at cost) | — | (70,923 | ) | ||||||||||||||
| Paid in capital | 22,788,413 | 20,813,082 | |||||||||||||||
| Accumulated deficit | (20,199,706 | ) | (20,007,589 | ) | |||||||||||||
| Total stockholders' equity | 2,601,911 | 746,134 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 4,542,606 | $ | 2,808,629 | |||||||||||||
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LiveDeal, Inc. and Subsidiaries Condensed Statements of Operations (Unaudited) |
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Three Months Ended December 31, |
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| 2011 | 2010 | |||||||||||||||
| Net revenues | $ | 851,413 | $ | 994,622 | ||||||||||||
| Cost of services | 235,819 | 894,577 | ||||||||||||||
| Gross profit | 615,594 | 100,045 | ||||||||||||||
| Operating Expenses | ||||||||||||||||
| General and administrative expenses | 766,808 | 1,972,569 | ||||||||||||||
| Sales and marketing expenses | 60 | 13,592 | ||||||||||||||
| Total operating expenses | 766,868 | 1,986,161 | ||||||||||||||
| Operating loss | (151,274 | ) | (1,886,116 | ) | ||||||||||||
| Other Income (expense) | ||||||||||||||||
| Interest income (expense), net | (43,944 | ) | 1,562 | |||||||||||||
| Other income (expense) | — | — | ||||||||||||||
| Total other income (expense) | (43,944 | ) | 1,562 | |||||||||||||
| Loss before income taxes | (195,218 | ) | (1,884,554 | ) | ||||||||||||
| Income tax provision (benefit) | — | — | ||||||||||||||
| Loss from continuing operations | (195,218 | ) | (1,884,554 | ) | ||||||||||||
| Discontinued Operations | ||||||||||||||||
| Income from discontinued component, including disposal costs | 3,580 | 154,160 | ||||||||||||||
| Income tax provision (benefit) | — | — | ||||||||||||||
| Income from discontinued operations | 3,580 | 154,160 | ||||||||||||||
| Net loss | $ | (191,638 | ) | $ | (1,730,394 | ) | ||||||||||
| Earnings per share - basic and diluted1: | ||||||||||||||||
| Loss from continuing operations | $ | (0.18 | ) | $ | (2.96 | ) | ||||||||||
| Discontinued operations | 0.00 | 0.24 | ||||||||||||||
| Net loss | $ | (0.18 | ) | $ | (2.72 | ) | ||||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 1,043,960 | 636,828 | ||||||||||||||
| Diluted | 1,043,960 | 636,828 | ||||||||||||||
1 Certain amounts may not total due to rounding of individual components.
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LiveDeal, Inc. and Subsidiaries Condensed Statements of Cash Flows (Unaudited) |
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Three Months Ended December 31, |
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| 2011 | 2010 | ||||||||||||||||
| Cash Flows From Operating Activities | |||||||||||||||||
| Net loss | $ | (191,638 | ) | $ | (1,730,394 | ) | |||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||||||||
| Depreciation and amortization | 69,279 | 205,477 | |||||||||||||||
| Stock based compensation expense | 47,894 | 23,499 | |||||||||||||||
| Amortization of deferred stock compensation | — | 17,885 | |||||||||||||||
| Provision for uncollectible accounts | 14,181 | 206,990 | |||||||||||||||
| Changes in Assets and Liabilities | |||||||||||||||||
| Accounts receivable | 73,398 | (108,988 | ) | ||||||||||||||
| Prepaid expenses and other current assets | 40,300 | 126,441 | |||||||||||||||
| Deposits and other assets | 2,000 | — | |||||||||||||||
| Accounts payable | 20,030 | 66,263 | |||||||||||||||
| Accrued liabilities | (26,541 | ) | (267,643 | ) | |||||||||||||
| Net cash provided by/(used in) operating activities | 48,903 | (1,460,470 | ) | ||||||||||||||
| Cash Flows From Investing Activities | |||||||||||||||||
| Expenditures for intangible assets | — | — | |||||||||||||||
| Purchases of property and equipment | — | — | |||||||||||||||
| Net cash provided by/(used in) investing activities | — | — | |||||||||||||||
| Cash Flows From Financing Activities | |||||||||||||||||
| Principal repayments on capital lease obligations | (15,768 | ) | (15,203 | ) | |||||||||||||
| Issuance of common stock for cash | 2,000,000 | 100,000 | |||||||||||||||
| Payments on notes payable | (100,000 | ) | — | ||||||||||||||
| Net cash provided by financing activities | 1,884,232 | 84,797 | |||||||||||||||
| Increase/(Decrease) In Cash And Cash Equivalents | 1,933,135 | (1,375,673 | ) | ||||||||||||||
| Cash And Cash Equivalents, beginning of period | 244,470 | 3,227,374 | |||||||||||||||
| Cash And Cash Equivalents, end of period | $ | 2,177,605 | $ | 1,851,701 | |||||||||||||
| Supplemental cash flow disclosures | |||||||||||||||||
| Noncash financing and investing activities | |||||||||||||||||
| Accrued and unpaid dividends | $ | 479 | $ | 479 | |||||||||||||
| Interest paid | $ | 43,987 | $ | 832 | |||||||||||||
| Income tax paid (received) | $ | — | $ | — | |||||||||||||
For more information about LiveDeal’s fiscal first quarter results, including the notes accompanying the foregoing condensed consolidated financial statements, please review the company’s quarterly report on Form 10-Q filed today, together with its annual report on Form 10-K for the fiscal year ended September 30, 2011. Both reports can be accessed by visiting the company’s website at www.livedeal.com or the SEC’s website at www.sec.gov.
About LiveDeal, Inc.
LiveDeal, Inc. provides local customer acquisition services and related products for small businesses to deliver an affordable way for businesses to extend their marketing reach to target customers via the Internet. For more information, visit www.livedeal.com.
Forward-Looking and Cautionary Statements
This news release contains forward-looking statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this news release may not occur. Generally, these statements relate to LiveDeal’s business plans or strategies, projected or anticipated benefits or other consequences of LiveDeal’s plans or strategies, financing plans, projected or anticipated costs of and benefits from acquisitions that LiveDeal may make, or projections involving anticipated revenues, earnings, costs, expenses, or other aspects of LiveDeal’s operating results or financial position, and the outcome of any contingencies. Any such forward-looking statements are based on current expectations, estimates and projections of management. LiveDeal intends for these forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this press release include, but are not limited to, statements regarding the Company’s future profitability. LiveDeal cautions you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond LiveDeal’s control, which may influence the accuracy of the statements and the projections upon which the statements are based. Factors that could cause actual results to differ materially from those set forth or implied by any forward-looking statement include, but are not limited to, risks and uncertainties discussed in LiveDeal’s reports filed with the Securities and Exchange Commission, including, but not limited to, LiveDeal’s Annual Report or Form 10-K for the fiscal year ended September 30, 2011 and other filings. Copies of these filings are available at the SEC’s website at www.sec.gov.
Contacts
Investor Relations Contact:
LiveDeal, Inc.
Larry Tomsic, Chief Financial Officer
702-939-0230
ltomsic@livedeal.com
Released February 15, 2012