[November 12, 2008]

Glowpoint Reports Third Quarter 2008 Results

 GLOWPOINT, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In thousands, except par value and shares)
 September 30, 2008 December 31, 2007
 ------------------ -----------------
ASSETS (Unaudited)
Current assets:
 Cash and cash equivalents $ 1,715 $ 2,312
 Accounts receivable, net of
 allowance for doubtful
 accounts of $181 and $208,
 respectively 2,903 2,546
 Prepaid expenses and other
 current assets 366 348
 ------------------ -----------------
 Total current assets 4,984 5,206
Property and equipment, net 2,563 2,692
Other assets 293 664
 ------------------ -----------------
 Total assets $ 7,840 $ 8,562
 ================== =================
LIABILITIES AND STOCKHOLDERS'
DEFICIT
Current liabilities:
 Accounts payable $ 2,868 $ 1,575
 Accrued expenses 873 1,427
 Accrued sales taxes and
 regulatory fees 4,208 4,011
 Senior Secured Notes, net of
 discount of $1,865 and $0,
 respectively 9,679 --
 Senior Secured Notes held by
 Insider Purchasers - related
 parties, net of discount of
 $110 and $0, respectively 372 --
 Derivative financial
 instruments 5,964 6,117
 Customer deposits 599 713
 Deferred revenue 340 330
 Current portion of capital
 lease 151 125
 ------------------ -----------------
 Total current liabilities 25,054 14,298
 ------------------ -----------------
Long term liabilities:
 Senior Secured Notes, net of
 discount of $0 and $3,912,
 respectively -- 6,647
 Senior Secured Notes held by
 Insider Purchasers - related
 parties, net of discount of
 $0 and $221, respectively -- 226
 Capital lease, less current
 portion 116 233
 ------------------ -----------------
 Total long term
 liabilities 116 7,106
 ------------------ -----------------
 Total liabilities 25,170 21,404
 ------------------ -----------------
Preferred stock, $10,000 par
value; 1,500 shares authorized
and redeemable; 475 Series C
shares issued and outstanding
recorded at fair value (stated
value and liquidation value of
$4,748) 4,330 4,330
 ------------------ -----------------
Commitments and contingencies
Stockholders' deficit:
 Common stock, $.0001 par
 value;150,000,000 shares
 authorized; 48,114,564 and
 47,629,564 shares issued;
 46,549,673 and 46,064,673
 shares outstanding,
 respectively 5 5
 Additional paid-in capital 162,915 162,300
 Accumulated deficit (183,197) (178,094)
 ------------------ -----------------
 (20,277) (15,789)
 Less: Treasury stock,
 1,564,891 shares at cost (1,383) (1,383)
 ------------------ -----------------
 Total stockholders'
 deficit (21,660) (17,172)
 ------------------ -----------------
 Total liabilities and
 stockholders' deficit $ 7,840 $ 8,562
 ================== =================

 GLOWPOINT, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share data)
 (Unaudited)
 Nine Months Ended Three Months Ended
 September 30, September 30,
 ------------------- ------------------
 2008 2007 2008 2007
 --------- --------- --------- --------
Revenue $ 18,557 $ 17,311 $ 6,066 $ 5,803
Cost of revenue 10,757 11,751 3,630 3,932
 --------- --------- --------- --------
 Gross margin 7,800 5,560 2,436 1,871
 --------- --------- --------- --------
Operating expenses:
 Research and development 775 570 271 216
 Sales and marketing 2,717 2,230 811 731
 General and administrative 5,789 6,082 1,998 1,807
 --------- --------- --------- --------
Total operating expense 9,281 8,882 3,080 2,754
 --------- --------- --------- --------
Loss from operations (1,481) (3,322) (644) (883)
 --------- --------- --------- --------
Interest and other expense
(income):
 Interest expense, including
 $111, $224, $44 and $224,
 respectively, for Insider
 Purchasers 3,425 5,139 1,293 3,135
 Interest income (18) (35) (3) (7)
 Increase (decrease) in fair
 value of derivative
 financial instruments,
 including $0 for Insider
 Purchasers (153) 3,513 (211) 2,507
 Amortization of deferred
 financing costs, including
 $37, $1, $13 and $1,
 respectively, for Insider
 Purchasers 368 404 130 143
 --------- --------- --------- --------
Total interest and other
expense, net 3,622 9,021 1,209 5,778
 --------- --------- --------- --------
Net loss ( 5,103) (12,343) (1,853) (6,661)
Gain on redemption of preferred
stock 799 -- 799
Preferred stock dividends (252) -- (80)
 --------- --------- --------- --------
Net loss attributable to common
stockholders $ (5,103) $(11,796) $ (1,853) $(5,942)
 ========= ========= ========= ========
Net loss attributable to common
stockholders per share:
 Basic and diluted $ (0.11) $ (0.25) $ (0.04) $ (0.13)
 ========= ========= ========= ========
Weighted average number of
common shares:
 Basic and diluted 46,387 46,968 46,550 47,369
 ========= ========= ========= ========

 GLOWPOINT, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In thousands)
 (Unaudited)
 Nine Months Ended
 September 30,
 ------------------
 2008 2007
 -------- ---------
Cash flows from Operating Activities:
Net loss $(5,103) $(12,343)
Adjustments to reconcile net loss to net cash
 provided by (used in) operating activities:
 Depreciation and amortization 959 1,121
 Other (income) expense recognized for the
 increase in the estimated fair value of the
 derivative financial instruments (153) 3,513
 Amortization of deferred financing costs 368 404
 Accretion of discount on Senior Secured Notes 2,158 2,332
 Beneficial conversion feature for Senior
 Secured Notes -- 1,976
 Loss on disposal of equipment 17 10
 Stock-based compensation 436 714
 Increase (decrease) in cash attributable to
 changes in assets and liabilities:
 Accounts receivable (357) (176)
 Prepaid expenses and other current assets (18) (63)
 Other assets 3 --
 Accounts payable 1,293 (137)
 Customer deposits (114) 619
 Accrued expenses, sales taxes and
 regulatory fees 842 602
 Deferred revenue 10 63
 -------- ---------
 Net cash provided by (used in)
 operating activities 341 (1,365)
 -------- ---------
Cash flows from Investing Activities:
Purchases of property and equipment (847) (906)
 -------- ---------
 Net cash used in investing activities (847) (906)
 -------- ---------
Cash flows from Financing Activities:
Capital lease payments (91) --
Proceeds from issuance of Senior Secured Notes,
 including $400 from Insider Purchasers, net of
 financing costs of $308 -- 3,230
Costs incurred in extension of maturity date of
 Senior Secured Notes and Series C Convertible
 Preferred Stock exchange -- (83)
 -------- ---------
 Net cash (used in) provided by financing
 activities (91) 3,147
 -------- ---------
(Decrease) increase in cash and cash equivalents (597) 876
Cash and cash equivalents at beginning of period 2,312 2,153
 -------- ---------
Cash and cash equivalents at end of period $ 1,715 $ 3,029
 ======== =========
Supplement disclosures of cash flow information:
Cash paid during the period for
 Interest $ 91 $ 3
 ======== =========

[ Back To it.tmcnet.com's Homepage ]