[November 14, 2009] Glowpoint Reports 3Q Results Tweet Nov 13, 2009 (Close-Up Media via COMTEX) -- Glowpoint, a provider of advanced video communications solutions, announced financial results for the third quarter and nine months ended September 30. In a release dated November 10, the company stated: - Total revenue for the quarter was $6.54 million, an increase of more than 7.8 percent from the same period a year ago. Monthly recurring subscription and related revenue for the quarter was $5.03 million of such amount, up 16.2 percent year-over-year. Gross margin for the quarter increased to $3.22 million, a year-over-year increase of 32.2 percent. Total operating expenses were only 47.1 percent of revenues versus 50.8 percent in the same period a year ago and 50.2 percent last quarter. The third quarter income from operations was $0.14 million, which was an improvement from last quarter's income of $0.04 million and a loss of $0.64 million from the year ago period. The income from operations was primarily attributable to increased revenue from VNOC managed services and Telepresence interExchange Network (TEN) related services, improved gross margins, and containment of operating expenses. The company stated that key highlights for the third quarter of 2009 include: -Positive Operating Income: Glowpoint reported an increase in income from operations following its posting of positive operating income for the first time the previous quarter. -Record Recurring Revenue from Subscription: Record quarterly subscription revenue of $5.03 million in the third quarter, driven by continued growth of its managed service solutions which is billed on a monthly recurring basis. Recurring revenue sources accounted for nearly 77 percent of total revenue in the quarter. -Strong Gross Margin: Gross margin of $3.22 million and gross margin percentage of 49.2 percent, driven by continued operating scale and efficiency with optimization of costs. -Elimination of Preferred Stock Dividends: Dividends on Glowpoint's preferred stock, which were to begin in the fourth quarter of 2009, have been eliminated until January 2013, thereby avoiding payments of more than $5.2 million. -Warrant Exchange: Glowpoint completed an exchange transaction that cancelled warrants to acquire 39.1 million shares by issuing 17.4 million shares of common stock. "The video industry is undergoing a massive transformation, and Glowpoint continues to be recognized as a provider of developing and distributing the applications that are driving many of the innovations behind it. Leading market analysts are now increasing the telepresence and video conferencing industry's growth projections, Gartner recently reported, 'The value of the videoconferencing market as a whole is set to post a compound annual growth rate (CAGR) of 17.8 percent between 2008 and 2013, rising from $3.8 billion to $8.6 Billion... Services revenue will grow stronger than revenue from endpoints or infrastructure...' Telepresence and video conferencing are now being discussed as components of the unified communications and cloud computing markets. When combining these projections with the consolidation and strategies within the Unified Communications market, we see great opportunities not only in the overall market size, but also a specific opportunity for Glowpoint to achieve broad market share for our cloud based video services," said Joe Laezza, Glowpoint's President and Co-CEO. "Our continuation of generating positive income from operations is a result of Glowpoint's steady focus and successful execution of our business plan. We are proud of what we have achieved, and are very excited to have moved the company to generating income for the second consecutive quarter," said Dave Robinson, Glowpoint's Co-CEO. "We're also pleased to report record subscription revenue, which is the core of our recurring revenue business model, and report year-over-year revenue growth. We believe progress will continue in the fourth quarter of 2009, with year-over-year and sequential margin improvement and year-over-year subscription revenue growth of at least 10 percent, setting up a strong 2010, when economic conditions are forecasted to improve and industry analysts project that the growth for managed video services and B2B exchange services will begin to accelerate significantly." ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]