LOS GATOS, Calif., Nov. 9 - LiveWorld, Inc. (Pinksheets: LVWD.PK), a leading online community agency, today reported 70% year-over-year revenue growth for the third quarter ended September 30, 2005.
Revenue: Revenues for the third quarter 2005 were $2,513,187, representing 70% year-over-year growth compared to third quarter 2004 revenues of $1,477,422 and 3% sequential growth over second quarter 2005 revenues of $2,431,298.
Ordinary Income: Third quarter 2005 ordinary income was $209,557, or a $0.0079 EPS, representing 1,086% growth over third quarter 2004 ordinary income of $17,666, or a $0.0007 EPS. Third quarter 2005 ordinary income was 44% lower than second quarter 2005 ordinary income of $373,791.
Net Income: Net income for the third quarter 2005 was $221,878, or $0.0083 EPS, representing 969% growth over third quarter 2004 net income of $20,757, or $0.0008 EPS. Third quarter 2005 net income was 42% lower than second quarter 2005 net income of $381,359.
Income in the second half of the year is projected to be lower than the first half due to the Company's previously stated strategy of investing in new product development and due to a one time favorable legal settlement in Q1 2005 (see April 19, 2005 press release). The company's cash position at end of the third quarter 2005 was $1,203,225.
"Third quarter revenue was driven by the increasing demand for online community services and continuing acceptance of LiveWorld's extensive offerings by leading brands," said Peter Friedman, Chairman and CEO. "We continue to execute on our strategy of growing revenue and maintaining profitability while investing significantly in new product development."
Business Outlook: The Company stated that it currently has more than $9.25 million in revenue bookings for 2005, representing 77% growth over 2004 total revenue of $5.2 million. Due to seasonality aspects of select clients, LiveWorld's fourth quarter revenue is historically lower or in line with third quarter revenue.
A detailed quarterly financial history for LiveWorld is available at http://www.liveworld.com/company/financials.html
* The above income results do not include impact of stock option expensing. Such expensing would be a non-cash impact. See the above referenced financial history for more detail.
About LiveWorld, Inc.
LiveWorld (http://www.liveworld.com) is a leading full service online community agency that creates, operates, and manages loyalty marketing, customer support, and business intelligence communities based on the Company's unique community applications platform and strategic community model. LiveWorld solutions enable Fortune 1000 companies to strengthen customer relationships, increase revenues, and reduce costs. Clients include companies such as America Online, A&E Television Networks, AOL UK, BEA Systems, eBay, The Campbell Soup Company, Discovery Communications, Dove, HBO, Intel, Intuit Inc., MINI Cooper USA, PayPal, QVC, Slim-Fast, The Walt Disney Company, and Warner Brothers. LiveWorld is headquartered in Los Gatos, California and deploys its services in over 30 country-language combinations.
"Safe Harbor" Statement Under The Private Securities Litigation Reform Act:
This press release contains financial results that have not been audited or reviewed by an outside accountant and are subject to change upon such review. This press release also contains forward-looking information concerning LiveWorld's future expectations, forecasts, and prospects. These statements include those regarding LiveWorld's current or future financial performance including, but not limited to revenue and profit growth. Actual results may differ materially from those expressed in the forward looking statements made by LiveWorld as a result of, among other things, the state of the economy, LiveWorld's ability to successfully deliver upon its contractual commitments, clients continuing their ongoing relationships with the Company, LiveWorld's ability to acquire new customers, and other risks applicable to the Company. (See the Company's Q3, 2002 10Q filing for a list that includes other possible risk factors.)
