Knobias Clip Report (01-06-20009) LIVE
Submitted By Knobias ClipReport
LIVE: CEO Comments on Q4/FY Results and Focus on New Opportunities in 2009
By Fain Hughes, fhughes@knobias.com
LiveDeal, Inc. (LIVE) reported its Q4 and full-year financial results for the period ended September 30, 2008.
Net revenues for the fourth fiscal quarter of 2008 were $5.76 million, down from $7.1 million in the fourth quarter of fiscal 2007 but flat sequentially from the $5.8 million of revenue in third fiscal quarter of 2008. Net loss for the fourth quarter was $277,000, or $0.04 per share, compared with a net gain of $376,053 in the fourth quarter of fiscal 2007 and a net loss of $1.17M in the third quarter of fiscal 2008.
Net revenues in fiscal 2008 were $25.3 million, compared to $26.3 million in fiscal 2007. The diluted loss per share in fiscal 2008 was $0.25 compared to a gain of $0.33 per share in the previous year. The company’s non-GAAP adjusted net loss for the fiscal year, which excludes certain expenses related to management changes and write-offs related to the Company’s 2007 merger, as well as related tax adjustments, was $1.0 million or ($0.16) per share on a diluted basis.
Mike Edelhart, CEO of LiveDeal, commented in a conference call, “We were not surprised to see lower Q4 revenues because we have not been aggressively adding new accounts to our traditional channels, as we focus internally on growing our new businesses. Our new lines of business are showing promise and increased each month during the quarter. Also, since the close of the fiscal year, our premium local sales segment had its largest sales month ever with over $1 million in new customer contracts for October.”
He continued, “This new channel has grown from a monthly run rate of under $100,000 at the beginning of calendar 2008. That is a gross month-to-month growth rate of 47%. This line of business is growing well above plan for all metrics and increasing at substantial rates. In addition, the cash collections from our prmium sales channel are far more robust than our traditional channel, and the average contract value is more than eight times that of the basic directory business.”
Mr. Edelhart explained, “Even with the more challenging economic environment that is expected in 2009, we believe that the small and medium-sized businesses that we are targeting will continue to turn to the Internet to find the customers they need. Our operating cash flow, growing products, partnership pipeline and strong balance sheet will enable us to grow our business in 2009 despite the difficult economic environment. Our 2009 plan is to achieve profitability, even as we make the changes necessary to capture our new significant business opportunities. Our new suite of products should continue to show promise with top and bottom line strength throughout 2009. The market opportunities are clear and sizeable.”
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