-----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, OQe/BkY22HmK4mOSwqN1mMgLegwTiHTcuIxb3Z4/0Yh38N0+uvVSazXsv5sMaxN/ aDsM0JuLZtWm9JcCBeUYzg== 0001019687-06-001532.txt : 20060622 0001019687-06-001532.hdr.sgml : 20060622 20060622164507 ACCESSION NUMBER: 0001019687-06-001532 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060622 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060622 DATE AS OF CHANGE: 20060622 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: 06920178 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-062206.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): June 22, 2006 -------------- 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 June 22, 2006, iLinc Communications, Inc. ("the Company") reported its fiscal 2006 fourth quarter and year end results for the period ended March 31, 2006. 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 June 22, 2006 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, Jr. ------------------------------------- President and Chief Executive Officer Date: June 22, 2006 EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION OF EXHIBITS - ------ ----------------------- 99.1 Copy of press release issued by iLinc Communications, Inc. on June 22, 2006. EX-99.1 2 ilinc_8k-ex9901.txt EXHIBIT 99.1 iLinc Communications logo CONTACT: JAMES M. POWERS, JR. PRESIDENT AND CHIEF EXECUTIVE OFFICER (602) 952-1200 JAMES L. DUNN, JR. SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER (602) 952-1200 ILINC COMMUNICATIONS ANNOUNCES FISCAL 2006 FOURTH QUARTER AND YEAR-END RESULTS -------------------------------------------------------- SECOND CONSECUTIVE QUARTER OF PROFITABILITY AND RECORD REVENUE FOURTH FISCAL QUARTER AND RECENT HIGHLIGHTS o Earned revenues of $3.6 million, an increase of 16% over the same three-month period last year o Modest profit earning Net Income of $28,000 o Achieved Adjusted EBITDA(1) of $779,000 o Operating Profit of $470,000 o Raised $2 million in equity capital in June 2006 FISCAL YEAR 2006 HIGHLIGHTS o Earned revenues of $12.5 million, an increase of 21% over prior year o Achieved Adjusted EBITDA(1) of $1.9 million o Net loss of $1.2 million, an improvement of $4.1 million over prior year loss of $5.3 million o Launched version 8.0 of iLinc's award winning suite of Web conferencing software PHOENIX, Arizona (June 22, 2006) - iLinc Communications, Inc. (AMEX:ILC), developers of Web conferencing software and audio conferencing solutions, today announced results for fiscal 2006 fourth quarter and year ended March 31, 2006. Revenues increased 16% to $3.6 million for the three months ended March 31, 2006, when compared with revenues of $3.1 million for the same three-month period last year. The Company reported a net income of $28,000 or break even per basic and diluted share, as compared with a net loss of $925,000, or $0.04 per basic and diluted share, for the same three-month period last year. For the three months ended March 31, 2006, income from operations was $470,000, compared to a loss from operations of $407,000 for the same three-month period last year. The Company also reported Adjusted EBITDA(1) of $779,000 for the three months ended March 31, 2006, an improvement of $926,000 over the same three-month period last year. Revenues increased 21% to $12.5 million for the twelve months ended March 31, 2006, when compared with revenues of $10.4 million for same twelve-month period last year. The Company reported a net loss of $1.2 million, or $0.05 per basic and diluted share, as compared with a net loss of $5.3 million, or $0.23 per basic and diluted share, for the same twelve-month period last year. The Company also reported income from operations of $743,000 for fiscal year 2006 as compared to a loss from operations of $3.4 million for the fiscal year 2005. The Company reported Adjusted EBITDA(1) of $1.9 million for the twelve months ended March 31, 2006, an improvement of $3.9 million over the same twelve-month period last year. -MORE- James M. Powers, Jr., president and chief executive officer of iLinc Communications, said "I am very pleased to report continued improvement in almost every aspect of our operational and financial performance. In the fourth quarter, we again achieved gains in top line revenue, while posting significant EBITDA and a modest net income. I am proud of our team and the results of their efforts which contributed to recent industry recognition received from Forrester Research, noting iLinc as a 'strong performer'." Dr. Powers added, "During the fourth fiscal quarter, we continued to grow revenues with sales to new customers, in combination with repeat sales within our notable customer base. We remain committed to continued investment in technology and product development." James Dunn, Jr., senior vice president and chief financial officer of iLinc Communications, said, "During the fiscal year ending March 31, 2006 we focused on cost reductions and cost containment that would sustain revenue growth while achieving bottom line improvement. Sustaining profitability in Fiscal 2007 will remain a high priority for iLinc. We will continue to hold down overhead where possible, without stifling top-line revenue growth. We recently raised $2 million in equity capital to shore up our balance sheet and provide further confidence to our customers and shareholder's alike. We hope our continued improvement in both our top and bottom line demonstrates to our customers, partners and shareholders our commitment to financial stability and sustainable quarterly growth." Dr. Powers continued, "With our unique license model and the scalability of our product line, we expect to match or exceed the 22% annual projected growth rate in the Web conferencing industry during fiscal 2007. We continue to take market share from larger competitors by leveraging our distinctive competencies and are making solid progress toward our goal of expanding our indirect channel distribution. We are accomplishing this through strategic partnerships that we believe will provide significant external growth opportunities as well as sustainable financial performance in future quarters." A webcast and replay of iLinc Communications' fourth quarter and fiscal year 2006 conference call will be available online through the Company's Web site at www.iLinc.com beginning at 12:00 p.m. Eastern time on June 22, 2006. (1) EXPLANATION OF ADJUSTED EBITDA, NON-GAAP FINANCIAL MEASURE We report Adjusted EBITDA, a financial measure that is not defined by Generally Accepted Accounting Principles. We believe that adjusted EBITDA is a useful performance metric for our investors and is a measure of operating performance that is commonly reported and widely used by financial and industry analysts, investors and other interested parties because it eliminates significant non-cash and/or one-time charges to earnings. It is important to note that non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net income (loss), cash flows, or other measures of financial performance prepared in accordance with GAAP. A reconciliation of net loss to Adjusted EBITDA is as follows for the years ended March 31, 2006 and 2005. THREE MONTHS ENDED YEAR ENDED MARCH 31, MARCH 31, 2006 2005 2006 2005 (IN THOUSANDS) (IN THOUSANDS) ---------- ---------- ---------- ---------- Net income/(loss) ......................... $ 28 $ (925) $ (1,171) $ (5,237) Non-cash charges and credits: Interest expense and financing fees ....... 453 423 1,958 1,939 Debt conversion expense .................. 9 -- 338 -- Gain on debt settlement .................. (29) (47) (81) (82) Gain on sale of assets ................... -- (2) (40) (6) Adjustment to acquisition liabilities .... (32) -- (643) -- Interest income .......................... -- (4) (5) (31) Depreciation .............................. 233 236 940 845 Amortization .............................. 117 172 575 618 ---------- ---------- ---------- ---------- Adjusted EBITDA .................... $ 779 $ (147) $ 1,871 $ (2,044) ========== ========== ========== ==========
-MORE- ABOUT ILINC COMMUNICATIONS, INC. iLinc Communications, Inc. is a leading developer of Web conferencing software and audio (telephone) conferencing services for highly secure and cost-effective collaborative meetings, presentations, and training sessions. The Company enables customers to purchase and own iLinc Web conferencing software, which can be installed inside of a customer's network or hosted by iLinc. Our products and services include the iLinc Suite of Web Conferencing software (MeetingLinc, LearnLinc, ConferenceLinc, and SupportLinc); Audio Conferencing Services; On-Demand Conferencing; and EventPlus, a service for professionally managed online and audio conferencing events. iLinc's products and services are used by organizations worldwide in sales, HR and training, marketing, and customer support. 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 COMPANY'S NEED FOR WORKING CAPITAL, 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, EventPlus, On-Demand, Web Presenter and its logos are trademarks or registered trademarks of iLinc Communications, Inc. All other company names and products may be trademarks of their respective companies. ILINC COMMUNICATIONS, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED YEAR ENDED MARCH 31, MARCH 31, --------------------------- --------------------------- 2006 2005 2006 2005 ----------- ----------- ----------- ----------- (unaudited) (audited) Revenues Software Licenses .............................................. $ 891 $ 931 $ 3,014 $ 3,274 Software and audio services .................................... 1,912 1,591 7,070 5,052 Maintenance and professional services .......................... 777 574 2,448 2,043 ----------- ----------- ----------- ----------- Total revenues ............................................. 3,580 3,096 12,532 10,369 ----------- ----------- ----------- ----------- Cost of revenues Software Licenses .............................................. (21) 8 51 154 Software and audio services .................................... 1,043 1,083 3,881 3,799 Maintenance and professional services .......................... 292 193 827 792 Amortization of acquired developed technology .................. 67 126 376 451 ----------- ----------- ----------- ----------- Total cost of revenues ..................................... 1,381 1,410 5,135 5,196 ----------- ----------- ----------- ----------- Gross profit ...................................................... 2,199 1,686 7,397 5,173 ----------- ----------- ----------- ----------- Operating expenses Research and development ....................................... 337 386 1,392 1,545 Sales and marketing ............................................ 820 904 3,075 4,078 General and administrative ..................................... 572 803 2,187 2,924 ----------- ----------- ----------- ----------- Total operating expenses ................................... 1,729 2,093 6,654 8,547 ----------- ----------- ----------- ----------- Income/(loss) from operations ..................................... 470 (407) 743 (3,374) Interest expense ............................................... (268) (232) (1,041) (1,081) Amortization of beneficial debt conversion ..................... (151) (188) (856) (853) ----------- ----------- ----------- ----------- Total interest expense ..................................... (419) (420) (1,897) (1,934) Net (loss)/gain on settlement of debt and other obligations .... 30 47 (257) 82 Interest income and other ...................................... (54) (2) 117 27 Gain on sale of assets ......................................... -- -- 40 -- ----------- ----------- ----------- ----------- Income/(loss) from continuing operations before income taxes ... 27 (782) (1,254) (5,199) Income taxes ................................................... -- -- -- -- ----------- ----------- ----------- ----------- Income/(loss) from continuing operations .......................... 27 (782) (1,254) (5,199) Income/(loss) from discontinued operations ........................ 1 (143) 83 (128) ----------- ----------- ----------- ----------- Net income/(loss) ................................................. $ 28 $ (925) $ (1,171) $ (5,327) Series A and B preferred stock dividends .......................... (39) (24) 30) Imputed preferred stock dividends ................................. -- -- (55) -- ----------- ----------- ----------- ----------- Loss available to common shareholders ............................. $ (11) $ (949) $ (1,356) $ (5,432) =========== =========== =========== =========== Loss per common share, basic and diluted From continuing operations ..................................... $ -- $ (0.03) $ (0.05) $ (0.23) From discontinued operations ................................... -- (0.01) -- -- ----------- ----------- ----------- ----------- loss per common share ...................................... $ -- $ (0.04) $ (0.05) $ (0.23) =========== =========== =========== =========== Number of shares used in calculation of loss per share: Basic ......................................................... 27,186 24,145 26,075 23,179 =========== =========== =========== =========== Diluted ....................................................... 27,186 24,145 26,075 23,179 =========== =========== =========== =========== -MORE- ILINC COMMUNICATIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA) MARCH 31, MARCH 31, 2006 2005 ----------- ----------- (AUDITED) (AUDITED) ASSETS Current assets: Cash and cash equivalents ............................................... $ 466 $ 532 Accounts receivable, net of allowance for doubtful accounts of $120 and $84, respectively ............................................ 2,207 1,949 Note receivable ......................................................... 12 25 Prepaid and other current assets ........................................ 30 69 ----------- ----------- Total current assets .................................................. 2,715 2,575 Property and equipment, net ................................................ 336 1,221 Goodwill ................................................................... 11,206 10,797 Intangible assets, net ..................................................... 1,731 2,504 Other assets .............................................................. 12 18 Assets of discontinued operations ......................................... -- 114 ----------- ----------- Total assets .......................................................... $ 16,000 $ 17,229 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current portion of long term debt ....................................... $ 199 $ 885 Accounts payable trade .................................................. 1,257 1,771 Accrued liabilities ..................................................... 2,213 2,960 Current portion of capital lease liabilities ............................ 70 196 Deferred revenue ........................................................ 917 1,014 ----------- ----------- Total current liabilities ............................................. 4,656 6,826 Long term debt, less current maturities, net of discount and beneficial conversion feature of $1,493 and $2,120, respectively ......... 6,974 6,702 Capital lease liabilities, less current maturities ......................... -- 31 ----------- ----------- Total liabilities ..................................................... 11,630 13,559 ----------- ----------- SHAREHOLDERS' EQUITY: Preferred stock, $.001 par value 10,000,000 shares authorized, Series A 127,500 shares and 127,500 shares issued and outstanding, liquidation preference of $1,275,000 and $1,275,000, respectively; and Series B, 70,000 shares and no shares issued and outstanding, liquidation preference of $700,000 and $0, respectively ............................. -- -- Common stock, $.001 par value 100,000,000 shares authorized, 28,923,168 and 25,577,287 issued, respectively ..................................... 29 26 Additional paid-in capital .............................................. 44,228 42,175 Accumulated deficit ..................................................... (38,479) (37,123) Less: 1,432,412 treasury shares at cost ................................ (1,408) (1,408) ----------- ----------- Total shareholders' equity ............................................ 4,370 3,670 ----------- ----------- Total liabilities and shareholders' equity ............................ $ 16,000 $ 17,229 =========== ===========
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