EX-99.1 2 v039212_ex99-1.htm
Exhibit 99.1

[GoAmerica letterhead]

CONTACT:
  
Investor Relations
GoAmerica
Voice: 201-996-1717
investors@goamerica.com
 
 
GOAMERICA® ANNOUNCES FOURTH QUARTER 2005 AND YEAR END RESULTS
 
HACKENSACK, NJ, -- March 30, 2006 -- GoAmerica, Inc. (NASDAQ: GOAM) today announced results for the fourth quarter and year ended December 31, 2005. 
 
Total revenue for the three months ended December 31, 2005 was approximately $1.8 million, compared to total revenue in the previous quarter of approximately $2.3 million and total revenue of approximately $1.3 million in the fourth quarter of 2004. Annual revenues for 2005 were approximately $8.1 million compared with $6.2 million for 2004.
 
Net loss for the fourth quarter was approximately $1.3 million, or $0.60 per diluted common share, compared with a net loss of $994,000, or $0.48 per diluted common share, during the previous quarter, and a net loss of $722,000, or $0.35 per diluted common share, during the fourth quarter of 2004. Net loss for 2005 was approximately $4.4 million, or $2.05 per diluted common share, compared with a net loss of $4.4 million or $2.49 per diluted common share in 2004.
 
The Company maintains a strong balance sheet with approximately $5.1 million in cash, cash equivalents, and restricted cash as of December 31, 2005, compared to $5.2 million as of September 30, 2005 and $7.7 million as of December 31, 2004.  During 2005, the Company loaned approximately $530,000 to Hands On Video Relay Services, Inc. pursuant to a short-term loan agreement, which amount is secured by liens on Hands On assets and substantially all of which is expected to be repaid with interest between June 2006 and December 2007.
 
The Company believes that it has sufficient funds to execute its business plan, which focuses on providing differentiated communication services to people with hearing loss.
 
“Our i711-branded relay services have been well received by deaf consumers since their launch a year ago,” said Mark Stern, GoAmerica’s vice president of product management. “Our i711 results have exceeded our internal expectations and we continue to build momentum in the market through the introduction of new services such as our launch of i711 Wireless on the T-Mobile Sidekick in February 2006, and our expected launch of i711 Wireless for BlackBerry in the second quarter.”
 
 
 
 
 
Telecommunications Relay Services are free to the users. Relay service providers are reimbursed on a per-conversation minute basis by the National Exchange Carriers Association, based upon rates established annually by the Federal Communications Commission.
 
Summary of recent activities:
 
 
·
Launch of i711 Wireless™ for Sidekick - On February 6, 2006, GoAmerica introduced i711 Wireless for the T-Mobile Sidekick®. The new application expands access to the company's online i711TM relay service, and enables deaf and hard of hearing users to place relay calls from their Sidekick handheld devices.

 
·
Termination of proposed Hands On Merger - GoAmerica received a letter from Hands On, dated March 1, 2006, in which Hands On purportedly terminated the merger agreement among the parties. On March 7, 2006, after discussions between Hands On and GoAmerica, GoAmerica announced that its was no longer pursuing its planned merger with Hands On despite the fact that Hands On shareholders had approved the merger on February 22, 2006 and GoAmerica had achieved a quorum in its shareholder vote, with results overwhelmingly in favor of completing the merger. GoAmerica has subsequently notified Hands On to commence repayment of approximately $600,000 pursuant to the short term loan agreement between the parties.

“While the proposed merger with Hands On would have added immediate value to the combined company, we are now exploring equally -- if not more -- attractive methods of entry into video relay as well as other options that we believe may have more benefit to our stockholders in the longer term,” said Dan Luis, CEO of GoAmerica. “We are also continuing to broaden access to our i711 text relay offerings while improving our other current businesses.”

The Company is also filing today its Annual Report on Form 10-K for the fiscal year ended December 31, 2005.

About GoAmerica
GoAmerica provides a wide range of wireless, relay and prepaid communications services, customized for people who are deaf, hard-of-hearing or speech impaired. The Company's vision is to improve the quality of life of its customers by being their premier provider of innovative communication services. For more information on the Company or its services, visit http://www.goamerica.com or contact GoAmerica directly at TTY 201-527-1520, voice 201-996-1717 or via Internet relay by visiting http://www.i711.com.
 
 
 
 

Safe Harbor
The statements contained in this news release that are not based on historical fact are "forward-looking statements" that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "estimate", "anticipate", "continue", or similar terms, variations of such terms or the negative of those terms.  Such forward-looking statements involve risks and uncertainties, including, but not limited to those of GoAmerica including:  (i) our limited operating history; (ii) our ability to successfully manage our relationship with EarthLink; (iii) our dependence on EarthLink to provide billing, customer and technical support to certain of our subscribers; (iv) our ability to respond to the rapid technological change of the wireless data industry and offer new services; (v) our dependence on wireless carrier networks; (vi) our ability to respond to increased competition in the wireless data industry; (vii) our ability to integrate acquired businesses and technologies; (viii) our ability to generate revenue growth; (ix) our ability to increase or maintain gross margins, profitability, liquidity and capital resources; (x) difficulties inherent in predicting the outcome of regulatory processes; and (xi) our limited experience in offering prepaid calling cards.  Such risks and others are more fully described in the Risk Factors set forth in our filings with the Securities and Exchange Commission.  Our actual results could differ materially from the results expressed in, or implied by, such forward-looking statements. GoAmerica is not obligated to update and does not undertake to update any of its forward looking statements made in this press release. Each reference in this news release to “GoAmerica”, the “Company” or “We”, or any variation thereof, is a reference to GoAmerica, Inc. and its subsidiaries.  “GoAmerica” is a registered trademark of GoAmerica.  “i711”, “i711.com”, and “Clear Mobile” are trademarks, and “Relay and Beyond” is a service mark of GoAmerica.  Other names may be trademarks of their respective owners.
 
###

 
 
 

GOAMERICA, INC.
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
(In thousands)
 
 
   
December 31,
2005
  
December 31,
2004
  
           
Assets
          
Current assets:
          
Cash and cash equivalents
 
$
4,804
  
$
7,098
  
Accounts receivable, net
   
1,154
    
1,530
  
Other receivables
   
—
    
732
  
Merchandise inventories
   
161
    
123
  
Prepaid expenses and other current assets
   
135
    
219
  
Total current assets
   
6,254
    
9,702
  
               
Other assets
   
7,821
    
8,284
  
Total assets
  
$
14,075
  
$
17,986
  
               
Liabilities and stockholders' equity
              
Current liabilities:
              
Accounts payable
 
$
765
  
$
348
  
Accrued expenses
   
676
    
538
  
Deferred revenue
   
92
    
285
  
Other current liabilities
   
19
    
1
  
Total current liabilities
   
1,552
    
1,172
  
               
Other liabilities
    
25
    
—
  
               
Stockholders' equity
   
12,498
    
16,814
  
   
$
14,075
  
$
17,986
  

 
 
 

GOAMERICA, INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)

 
   
Three Months Ended December 31,
  
Year Ended December 31,
  
   
2005
  
2004
  
2005
  
2004
  
Revenues:
  
(Unaudited)
  
(Unaudited)
          
Subscriber
  
$
381
  
$
992
  
$
2,348
  
$
5,588
  
Prepaid services
    
695
    
193
    
3,147
    
193
  
Relay services
    
487
    
—
    
1,261
    
—
  
Commissions
    
198
    
—
    
755
    
—
  
Equipment
    
81
    
25
    
442
    
181
  
Other
    
6
    
97
    
125
    
260
  
     
1,848
    
1,307
    
8,078
    
6,222
  
Costs and expenses:
                          
Cost of subscriber airtime
    
201
    
422
    
967
    
2,539
  
Cost of equipment revenue
    
149
    
111
    
585
    
260
  
Cost of network operations
    
27
    
153
    
231
    
733
  
Cost of prepaid services
    
954
    
145
    
3,617
    
201
  
Sales and marketing, net
    
394
    
54
    
1,167
    
597
  
General and administrative
    
1,984
    
1,575
    
5,320
    
5,625
  
Research and development
    
108
    
73
    
363
    
507
  
Depreciation and amortization
    
110
    
140
    
485
    
804
  
Amortization of other intangibles
    
75
    
148
    
639
    
682
  
     
4,002
    
2,821
    
13,374
    
11,948
  
Loss from operations
    
(2,154
)
  
(1,514
)
  
(5,296
)
  
(5,726
)
                           
Other income (expense):
                          
Settlement gains (losses), net
    
—
    
13
    
—
    
1,494
  
Interest income (expense), net
    
55
    
47
    
160
    
(944
)
                           
Total other income (expense), net
    
55
    
60
    
160
    
550
  
                           
Net loss before benefit from income taxes
    
(2,099
)
  
(1,454
)
  
(5,136
)
  
(5,176
)
Income tax benefit
    
764
    
732
    
764
    
732
  
Net loss
  
$
(1,335
)
$
(722
)
$
(4,372
)
$
(4,444
)
                           
Basic net loss per share
  
$
(0.60
)
$
(0.35
)
$
(2.05
)
$
(2.49
)
Diluted net loss per share
  
$
(0.60
)
$
(0.35
)
$
(2.05
)
$
(2.49
)
                           
Weighted average shares used in computation of basic net loss per share
    
2,234,592
    
2,044,548
    
2,128,977
    
1,785,403
  
Weighted average shares used in computation of diluted net loss per share
    
2,234,592
    
2,044,548
    
2,128,977
    
1,785,403
  
 
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