Delaware
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0-25940
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77-0312442
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S Employer
Identification No.)
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430 Mountain Avenue, Murray Hill, NJ
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07974
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(Address of principal executive offices)
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(Zip Code)
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Exhibit No.
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Description
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99.1
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Press Release dated March 16, 2011
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INVESTOR RELATIONS:
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Glowpoint, Inc.
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+1 973-855-3411
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investorrelations@glowpoint.com
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·
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Revenue from Cloud-Based Managed Service Driving Growth: Fourth quarter revenues from managed services increased 46% year over year and now represent 41% of quarterly revenues.
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·
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Positive cash flow: The Company’s operating cash flow improved on a quarterly basis, resulting in positive cash flow contribution of $119,000 for the quarter.
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Strategic Partnerships: The Company continued its expansion of global partnerships in 2010, highlighted with core partners BroadSoft, Acme Packet, and Equinix, adding to its existing strategic partners and relationships with Polycom, Tata Communications and AVI-SPL.
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·
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Continued Investments in Growth and Operating Efficiencies: The Company’s investments in sales, marketing, product development and operating efficiencies are anticipated to drive continued growth and improved operating leverage. The Company launched its Open Video Cloud™ strategy to expand services on a global basis, and throughout 2010, announced several service rollouts targeted at the unified communications technology evolution and enhanced self-use services delivered via its cloud-based hosted infrastructure and applications.
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·
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Management Team: In the second half of 2010, multiple executives from the unified communications space were added to the executive management team. John McGovern, an Avaya veteran, joined as EVP and CFO, Stephen Vobbe joined from Cisco to head sales and marketing, and Michael Hubner joined as General Counsel and Corporate Secretary. Also, Anil Balani now leads Glowpoint’s product development group and Shane Bouslough joined to direct information systems.
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·
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New Showcase HQ and R&D Operations Center: The Company moved its corporate headquarters and added a new showcase operations, R&D and executive briefing center at the end of 2010. This new facility is equipped with multiple telepresence rooms, its North America (East) operations center, and a fully equipped R&D lab.
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·
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Glowpoint Investor Information
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·
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Recent Glowpoint News and Events
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·
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Glowpoint on Twitter
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December 31,
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||||||||
ASSETS
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2010
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2009
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||||||
Current assets:
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||||||||
Cash
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$ | 2,035 | $ | 587 | ||||
Accounts receivable, net of allowance for doubtful accounts of $250 and $227, respectively
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2,706 | 3,063 | ||||||
Net current assets of discontinued operations
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15 | 257 | ||||||
Prepaid expenses and other current assets
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377 | 291 | ||||||
Total current assets
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5,133 | 4,198 | ||||||
Property and equipment, net
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3,148 | 2,682 | ||||||
Other assets
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83 | 31 | ||||||
Total assets
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$ | 8,364 | $ | 6,911 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Revolving loan facility
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$ | 750 | $ | — | ||||
Accounts payable
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2,333 | 3,207 | ||||||
Accrued expenses
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1,352 | 901 | ||||||
Accrued sales taxes and regulatory fees
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739 | 888 | ||||||
Customer deposits
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243 | 308 | ||||||
Deferred revenue
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242 | 259 | ||||||
Total current liabilities
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5,659 | 5,563 | ||||||
Long term liabilities:
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||||||||
Accrued sales taxes and regulatory fees, less current portion
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— | 195 | ||||||
Total long term liabilities
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— | 195 | ||||||
Total liabilities
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5,659 | 5,758 | ||||||
Stockholders’ equity:
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||||||||
Preferred stock Series B, non-convertible; $.0001 par value
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10,000 | — | ||||||
Preferred stock Series A-2, convertible; $.0001 par value
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3,354 | 14,275 | ||||||
Common stock, $.0001 par value
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9 | 7 | ||||||
Additional paid-in capital
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154,410 | 150,659 | ||||||
Accumulated deficit
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(165,068 | ) | (162,405 | ) | ||||
2,705 | 2,536 | |||||||
Less: Treasury stock, 0 and 391,223 shares at cost, after adjustments to reflect the reverse stock split of 1 for 4 effective January 14, 2011
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— | (1,383 | ) | |||||
Total stockholders’ equity
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2,705 | 1,153 | ||||||
Total liabilities and stockholders’ equity
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$ | 8,364 | $ | 6,911 |
Three Months Ended
December 31,
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Year Ended
December 31,
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|||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Managed Services Combined | $ | 2,934 | $ | 2,013 | $ | 10,480 | $ | 7,433 | ||||||||
OV Connect and other services | 4,075 | 4,321 | 17,070 | 17,822 | ||||||||||||
Total revenue | 7,009 | 6,334 | 27,550 | 25,255 | ||||||||||||
Network and infrastructure | 2,621 | 2,787 | 11,389 | 11,005 | ||||||||||||
Global managed services | 2,023 | 1,946 | 8,226 | 7,476 | ||||||||||||
Sales and marketing | 955 | 781 | 4,142 | 3,193 | ||||||||||||
General and administrative | 1,470 | 974 | 5,330 | 4,392 | ||||||||||||
Depreciation and amortization | 266 | 265 | 1,078 | 1,056 | ||||||||||||
Tax and regulatory fees | - | (2,123 | ) | - | (2,500 | ) | ||||||||||
Total operating expenses | 7,335 | 4,631 | 30,165 | 24,662 | ||||||||||||
Net operating income(loss) | (326 | ) | 1,703 | (2,615 | ) | 633 | ||||||||||
Other Expenses | 53 | (816 | ) | 160 | 1,559 | |||||||||||
Net Income (Loss) from continuing operations | (379 | ) | 2,519 | (2,775 | ) | (926 | ) | |||||||||
Income (loss) from discontinued operations | (68 | ) | 92 | 112 | 379 | |||||||||||
Net Income (Loss) | $ | (447 | ) | $ | 2,611 | $ | (2,663 | ) | $ | (547 | ) | |||||
Net Income/(Loss) from continuing operations | $ | (379 | ) | $ | 2,519 | (2,775 | ) | (926 | ) | |||||||
Interest/Financing | 53 | (816 | ) | 160 | 1,559 | |||||||||||
Depreciation | 266 | 266 | 1,078 | 1,056 | ||||||||||||
Sales Taxes & Regulatory Fees | - | (2,123 | ) | - | (2,500 | ) | ||||||||||
Stock-based compensation | 69 | 118 | 514 | 556 | ||||||||||||
Stock-based comp Related to Severance | 18 | - | (96 | ) | (56 | ) | ||||||||||
Severance | 459 | - | 982 | 317 | ||||||||||||
Adjusted EBITDA | $ | 486 | $ | (36 | ) | $ | (137 | ) | $ | 6 |
Three Months Ended
December 31,
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Year Ended
December 31,
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||||||||||||
2010
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2009
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2010 | 2009 | ||||||||||
Cash flows from Operating Activities:
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|||||||||||||
Net profit / (loss)
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$
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(447 |
)
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$
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2,611
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$ | (2,663 | ) | $ | (547 | ) | |
Adjustments to reconcile net loss to net cash provided (used) by operating activities:
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Depreciation and amortization
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266
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266
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1,078 | 1,056 | |||||||||
Amortization of deferred financing costs
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16
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-
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34 | - | |||||||||
Loss on extinguishment of debt
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-
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- | - | 254 | |||||||||
Accretion of Discount on Senior Secured Notes | 23 | ||||||||||||
Bad debt expense
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(55
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) |
65
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290 | 250 | ||||||||
(Gain) Loss on disposal of furniture, equipment and leasehold improvements
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26
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-
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15 | 8 | ||||||||
(Decrease) increase in estimated fair value of debenture
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-
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-
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- | 1,848 | |||||||||
Stock-based compensation
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69
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118
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514 | 556 | |||||||||
Increase (decrease) in cash attributable to changes in assets and liabilities, net of effects of acquisitions:
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Accounts receivable
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773
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(569 |
)
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67 | (585 | ) | ||||||
Other current assets
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111
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112
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(86 | ) | 3 | ||||||
Other assets
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-
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-
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(86 | ) | 2 | |||||||
Accounts payable
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(681
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)
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398
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(874 | ) | 903 | |||||||
Accrued expenses | 25 | (88 | ) | 451 | 127 | ||||||||
Sales taxes | (143 | ) | (3,005 | ) | (344 | ) | (3,452 | ) | |||||
Customer deposits
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(13
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)
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(164 |
)
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(65 | ) | (298 | ) | |||||
Deferred revenue
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18
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2 |
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(17 | ) | (66 | ) | |||||
Net cash provided (used) by continuing operating activities
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(35
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)
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(254
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) | (1,686 | ) | 82 | ||||||
Net cash provided (used) by discontinuing operating activities
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154
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33 | 242 | 42 | |||||||||
Net cash provided (used) by operating activities
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119 |
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(221 | ) | (1,444 | ) | 124 | ||||||
Cash flows from Investing Activities:
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Proceeds from sale of equipment
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61
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- |
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61 | - | |||||||
Purchases of furniture, equipment and leasehold improvements
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(661
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)
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(209 |
)
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(1,620 | ) | (1,213 | ) | |||||
Net cash used by investing activites | (600 | ) | (209 | ) | (1,559 | ) | (1,213 | ) | |||||
Cash flows from Financing Activities:
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Proceeds from preferred stock offerings
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-
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-
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4,000 | 1,800 | |||||||||
Proceeds from exercise of stock options
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-
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9
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8 | 17 | ||||||||
Capital Lease
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-
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(116
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) | - | (234 | ) | |||||||
Proceeds from revolving loan
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-
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-
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750 | - | ||||||||
Receivable from sale of Series A Preferred Stock
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1,000
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-
|
|
- | |||||||||
Purchase of Senior Secured Notes
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-
|
|
-
|
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- | (750 | ) | ||||||
Costs of private placement
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-
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-
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(307 | ) | (384 | ) | |||||||
Net cash provided (used) by financing activities
|
1,000
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(107
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)
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4,451 | 449 | ||||||||
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||||||||||||
Increase (decrease) in cash
|
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519
|
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(537
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) | 1,448 | (640 | ) | |||||
Cash at beginning of period
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1,516 | 1,124 | 587 | 1,227 | |||||||||
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Cash at end of period
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$ | 2,035 | $ | 587 | $ | 2,035 | $ | 587 |