-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LF5hVo+fr5KDrYKri2T69A5IET+xA+IKiJxvnR5bw9XIYV/cUik/pCtv51ABLXBa u2oyuU0AWYBwqC6BM5U20A== 0001019687-05-001809.txt : 20050711 0001019687-05-001809.hdr.sgml : 20050711 20050705121026 ACCESSION NUMBER: 0001019687-05-001809 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050701 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050705 DATE AS OF CHANGE: 20050705 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ILINC COMMUNICATIONS INC CENTRAL INDEX KEY: 0001042291 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 760545043 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13725 FILM NUMBER: 05935517 BUSINESS ADDRESS: STREET 1: 2999 NORTH 44TH STREET STREET 2: SUITE 650 CITY: PHOENIX STATE: AZ ZIP: 85018 BUSINESS PHONE: 6029521200 MAIL ADDRESS: STREET 1: 2999 N 44TH STREET STREET 2: SUITE 650 CITY: PHOENIX STATE: AZ ZIP: 85018 FORMER COMPANY: FORMER CONFORMED NAME: EDT LEARNING INC DATE OF NAME CHANGE: 20010814 FORMER COMPANY: FORMER CONFORMED NAME: E-DENTIST COM INC DATE OF NAME CHANGE: 20001114 FORMER COMPANY: FORMER CONFORMED NAME: PENTEGRA DENTAL GROUP INC DATE OF NAME CHANGE: 19970822 8-K 1 ilinc_8k-070105.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. (20549) ================================================================================ ______________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 1, 2005 ______________ ILINC COMMUNICATIONS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 76-0545043 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 1-13725 (Commission File Number) 2999 NORTH 44TH STREET, SUITE 650, PHOENIX, ARIZONA 85018 (address of principal executive offices) (Zip code) (602) 952-1200 (Registrant's telephone number, including area code) ______________ Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 1, 2005, iLinc Communications, Inc. ("the Company") reported its fiscal 2005 fourth quarter and year-end results for the period ended March 31, 2005. A copy of the Company's press release is attached as Exhibit 99.1 to this current report. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. The following exhibit is filed herewith: EXHIBIT NUMBER DESCRIPTION - -------------------------------------- 99.1 Press release dated July 1, 2005 issued by iLinc Communications, Inc. Filed herewith. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. iLINC COMMUNICATIONS, INC. By: /s/ James M. Powers ------------------------------------- President and Chief Executive Officer Date: July 1, 2005 EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION OF EXHIBITS - ------ ----------------------- 99.1 Copy of press release issued by iLinc Communications, Inc. on July 1, 2005. EX-99.1 2 ilinc_8kex99-1.txt EXHIBIT 99.1 [iLinc Communications logo] CONTACT: JAMES M. POWERS, JR. PRESIDENT AND CHIEF EXECUTIVE OFFICER (602) 952-1200 OR DAVID J. IANNINI SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER (602) 952-1200 ILINC COMMUNICATIONS ANNOUNCES FISCAL 2005 FOURTH QUARTER AND YEAR-END RESULTS FISCAL YEAR 2005 HIGHLIGHTS o Increased revenue 76% over prior year o Completed over 1,000 sales transactions with new and existing customers o Added audio conferencing as a product line through acquisition providing additional revenues and access to new synergistic customer base FOURTH QUARTER HIGHLIGHTS o Increased revenue 95% over prior year's 4th quarter o Achieved positive EBITDA from continuing operations o Reduced loss from continuing operations 29% over prior year's 4th quarter and 33% over the prior quarter o Added approximately 300 new customers in 4th quarter alone, supporting growth in license and per-minute usage base PHOENIX, Arizona (July 1, 2005) - iLinc Communications, Inc. (AMEX:ILC), developers of one of the most feature-rich and secure Web conferencing and integrated audio conferencing solutions, today announced its results for fiscal 2005 fourth quarter and year ended March 31, 2005. For the three months ended March 31, 2005, total revenues increased 95% to $3.1 million as compared with total revenues of $1.6 million for the three months ended March 31, 2004. The Company reported a net loss available to common shareholders of $949,000 for the three months ended March 31, 2005 or $0.04 per basic and diluted share. For the three months ended March 31, 2005, loss from continuing operations was reduced to $782,000 as compared to a loss from continuing operations of $1,094,000 for the three months ended March 31, 2004. For the 12 months ended March 31, 2005, total revenues increased 76% to $10.4 million as compared with total revenues of $5.9 million for the 12 months ended March 31, 2004. The Company reported a net loss available to common shareholders of $5.4 million for the 12 months ended March 31, 2005 or $0.23 per basic and diluted share, as compared with a net loss for the twelve months ended March 31, 2004 of $2.3 million or $0.14 per basic and diluted share. ILC Announces Fourth Quarter and Year-End Results Page 2 July 1, 2005 Commenting on the financial results, James M. Powers, Jr., president and chief executive officer of iLinc Communications, said, "In the first three quarters of fiscal 2005, we took steps to strengthen our direct sales team and our indirect sales channel with continued investment in sales and marketing. Much of the significant increase in sales in the fourth quarter of fiscal 2005 is the direct result of that investment and our marketing strategy. Because of the robust feature set of our software, our Advanced Encryption Standard (AES) Security and our unique licensing model, we continue to win new customers from our competitors. We are successfully cross-selling our products, with 33% of customer sales including both audio and Web products in FY2005, and 39% of customer sales in Q4 including both audio and Web products. We also increased sales from our existing customer base, further validating our up-selling and cross-selling sales strategy. We believe that we will see continued sales growth from an existing pipeline of new opportunities." David J. Iannini, senior vice president and chief financial officer of iLinc Communications, commented, "As we see continuing improvement in revenues we expect continued positive trends in operating income and EBITDA that we believe will ultimately lead to profitability. We continue to invest in sales and marketing while implementing cost containment measures where appropriate. To shore up our balance sheet and provide additional working capital, we are actively engaged in an effort to raise additional capital, while holding firm on the level of debt that mostly arose from legacy operations." In closing, Dr. Powers added, "We are uniquely positioned to take advantage of the projected 27% annual growth in the Web conferencing industry and specifically, the higher growth software purchase segment of the Web conferencing market with a 39% CAGR. We take pride in our ability to win Fortune 1000 customers often from larger competitors by exploiting our competitive advantages. As one of the only Web conferencing providers with a robust feature set that permits customers to purchase licenses for an easy-to-install, behind-the-firewall solution, we are confident in our future prospects." A listen-only simulcast and 30-day replay of iLinc Communications' fiscal 2005 fourth quarter and year-end conference call will be available online through the Company's Web site at www.iLinc.com beginning at 11:00 a.m. Eastern time today. ILC Announces Fourth Quarter and Year-End Results Page 3 July 1, 2005 ABOUT ILINC COMMUNICATIONS, INC. iLinc Communications, Inc. is a leading developer of conferencing products and services for highly secure and cost-effective collaborative online meetings, presentations, and training sessions. The Company provides integrated Web conferencing and audio conferencing. iLinc is one of the only carrier-class providers that offers a license purchase model that permits either a customer hosted behind-the-firewall installation (purchase model) or one that can be purchased and hosted by iLinc. Our products and services include the iLinc Suite of Web conferencing software (MeetingLinc, LearnLinc, ConferenceLinc, and SupportLinc) as well as traditional audio conferencing services (iLinc On-Demand, Operator Assisted Conferencing; and EventPlus). iLinc's products and services are used by organizations worldwide in sales, HR and training, marketing, and customer support departments. More information about the Phoenix-based company may be found on the Web at www.iLinc.com. THIS PRESS RELEASE CONTAINS INFORMATION THAT CONSTITUTES FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ANY SUCH FORWARD-LOOKING STATEMENTS INVOLVE RISK AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS DESCRIBED WITHIN THE FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CONTRIBUTE TO SUCH DIFFERENCES INCLUDE THE RATE OF ACCEPTANCE OF THE COMPANY'S PRODUCTS AND SERVICES BY CUSTOMERS, CHANGES IN THE WEB CONFERENCING AND AUDIO CONFERENCING MARKET IN GENERAL, THE ACCEPTANCE OF NEW PRODUCTS, THE COMPANY'S NEED FOR WORKING CAPITAL, THE RESULT OF PENDING LITIGATION, THE COMPETITION THE COMPANY FACES FROM LARGER AND MORE WELL-CAPITALIZED COMPETITORS, AND OTHER MATTERS MORE FULLY DISCLOSED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K, QUARTERLY REPORTS ON FORM 10-Q, AND OTHER REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THE FORWARD-LOOKING INFORMATION PROVIDED HEREIN REPRESENTS THE COMPANY'S ESTIMATES AND EXPECTATIONS AS OF THE DATE OF THE PRESS RELEASE, AND SUBSEQUENT EVENTS AND DEVELOPMENTS MAY CAUSE THE COMPANY'S ESTIMATES AND EXPECTATIONS TO CHANGE. THE COMPANY SPECIFICALLY DISCLAIMS ANY OBLIGATION TO UPDATE THE FORWARD-LOOKING INFORMATION IN THE FUTURE. THEREFORE, THIS FORWARD-LOOKING INFORMATION SHOULD NOT BE RELIED UPON AS REPRESENTING THE COMPANY'S ESTIMATES AND EXPECTATIONS OF ITS FUTURE FINANCIAL PERFORMANCE AS OF ANY DATE SUBSEQUENT TO THE DATE OF THIS PRESS RELEASE. iLinc, iLinc Communications, iLinc Suite, MeetingLinc, LearnLinc, ConferenceLinc, SupportLinc, iLinc On-Demand, and their respective logo are trademarks or registered trademarks of iLinc Communications, Inc. All other company names and products may be trademarks of their respective companies. ILC Announces Fourth Quarter and Year-End Results Page 4 July 1, 2005 ILINC COMMUNICATIONS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED TWELVE MONTHS ENDED MARCH 31, MARCH 31, -------------------------- -------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Revenues: License $ 931 $ 483 $ 3,274 $ 2,240 Software and audio services 1,591 392 5,052 1,195 Maintenance and professional services 574 716 2,043 2,471 ----------- ----------- ----------- ----------- Total revenues 3,096 1,591 10,369 5,906 Cost of revenues: License 8 96 154 219 Software and audio services 1,083 152 3,799 526 Maintenance and professional services 193 397 792 1,248 Amortization of acquired developed technology 126 60 451 233 ----------- ----------- ----------- ----------- Total cost of revenues 1,410 705 5,196 2,226 ----------- ----------- ----------- ----------- Gross profit 1,686 886 5,173 3,680 ----------- ----------- ----------- ----------- Operating expenses: Research and development 386 280 1,545 1,034 Sales and marketing 904 752 4,078 2,202 General and administrative 803 603 2,924 1,831 ----------- ----------- ----------- ----------- Total operating expenses 2,093 1,635 8,547 5,067 Loss from operations (407) (749) (3,374) (1,387) Interest expense (420) (309) (1,934) (1,233) Interest income 3 4 31 21 Other expense (5) (40) (4) (43) Gain on debt settlement 47 -- 82 349 ----------- ----------- ----------- ----------- Loss from continuing operations (782) (1,094) (5,199) (2,293) before income taxes Net income (loss) from discontinued operations (143) (14) (128) 275 ----------- ----------- ----------- ----------- Net loss $ (925) $ (1,108) $ (5,327) $ (2,018) Preferred stock dividends (24) (30) (105) (75) Imputed preferred stock dividends -- -- -- (247) ----------- ----------- ----------- ----------- Loss available to common shareholders $ (949) $ (1,138) $ (5,432) $ (2,340) =========== =========== =========== =========== Loss per common share, basic and diluted From continuing operations $ (0.03) $ (0.06) $ (0.23) $ (0.16) From discontinued operations (0.01) -- -- 0.02 ----------- ----------- ----------- ----------- Net loss per common share $ (0.04) $ (0.06) $ (0.23) $ (0.14) =========== =========== =========== =========== Number of shares used in calculation of loss per share, basic and diluted 24,145 17,667 23,179 16,743 =========== =========== =========== =========== ILC Announces Fourth Quarter and Year-End Results Page 5 July 1, 2005 ILINC COMMUNICATIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT PER SHARE DATA) MARCH 31, MARCH 31, 2005 2004 --------- --------- ASSETS (UNAUDITED) Current assets: Cash and cash equivalents $ 532 $ 292 Accounts receivable, net 1,949 1,097 Note receivable 25 25 --------- --------- Prepaid and other current assets 69 108 Total current assets 2,575 1,522 Property and equipment, net 1,221 310 Goodwill 10,797 9,190 Intangible assets, net 2,504 1,061 Note receivable -- 25 Other assets 18 51 Assets of discontinued operations 114 301 --------- --------- Total assets $ 17,229 $ 12,460 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 885 $ 961 Accounts payable and accrued liabilities 4,731 2,301 Current portion of capital lease liabilities 196 289 Deferred revenue 1,014 1,084 --------- --------- Total current liabilities 6,826 4,635 Long-term debt 6,702 4,444 Leases payable 31 15 --------- --------- Total liabilities 13,559 9,094 --------- --------- Commitments and contingencies Shareholders' equity: Preferred stock, $.001 par value 10,000,000 shares authorized, 127,500 and 150,000 shares issued and outstanding, liquidation preference of $1,275,000 and $1,500,000, respectively -- -- Common stock, $.001 par value, 100,000,000 shares authorized, 25,577,287 and 19,257,304 issued, respectively 26 19 Additional paid-in capital 42,175 36,395 Accumulated deficit (37,123) (31,640) Less: Treasury stock, 1,432,412 shares (1,408) (1,408) --------- --------- Total shareholders' equity 3,670 3,366 --------- --------- Total liabilities and shareholders' equity $ 17,229 $ 12,460 ========= =========
-----END PRIVACY-ENHANCED MESSAGE-----