Viewpoint (MM) (NASDAQ:VWPT)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Viewpoint (MM) Charts. Click Here for more Viewpoint (MM) Charts.](/p.php?pid=staticchart&s=N%5EVWPT&p=8&t=15)
Viewpoint Corporation (NASDAQ: VWPT), a leading internet marketing
technology company, today announced financial results for the second
quarter ended June 30, 2007.
Viewpoint reported total revenue of $3.8 million for the second quarter
of 2007, a 16 percent increase as compared to $3.3 million in the first
of quarter 2007 and a 33 percent decrease as compared to $5.7 million in
the second quarter of 2006. Gross profit was $2.4 million for the second
quarter of 2007, an increase of 2 percent as compared to the $2.3
million for the first quarter of 2007 and a decrease of 15 percent from
$2.8 million for the second quarter of 2006.
Patrick Vogt, President and Chief Executive Officer, commented, “We
made progress during the quarter by continuing to execute on our
strategy to meet the escalating demand for Premium Rich Media from
marketers, agencies and publishers. We are laying the groundwork for
sustainable long-term profitability through our strategic DG Fastchannel
partnership and our recent enterprise customer wins.”
Mr. Vogt continued, “Moving forward we will
continue to focus on creating the most flexible rich media and video ad
platform in the industry. With the successful build out of our
capabilities, we are now in a position where we can really take
advantage of the tremendous opportunities in the market. We continue to
refine our business – creating additional
capabilities that complement our offerings in order to accelerate our
growth. As a result, we expect improvement in both revenue and operating
performance in 2007 compared to 2006.”
Operating loss for the second quarter of 2007 was $2.6 million as
compared to an operating loss of $2.0 million in the first quarter of
2007 and an operating loss of $2.1 million for the second quarter of
2006. Net loss for the second quarter of 2007 was $5.2 million or
$(0.07) per share compared to a net loss of $2.0 million, or $(0.03) per
share in the first quarter 2007 and a net loss of $2.8 million or
$(0.04) per share, in the second quarter 2006. Adjusted operating income
(“AOI”), as defined
below, was $(1.5) million for the second quarter, as compared to $(1.3)
million in the first quarter of 2007, and $(1.4) million for the second
quarter of 2006
For the six months ended June 30, 2007, the Company reported revenue of
$7.2 million, compared with $9.7 million for the same period in 2006.
For the six months ended June 30, 2007, gross profit decreased 7 percent
to $4.7 million in 2007 from $5.1 million in 2006. Viewpoint’s
operating expenses for the six-month period ended June 30, 2007 were
$9.3 million compared with $10.3 million for the six-month period ended
June 30, 2006, a decrease of 10 percent.
The Company’s net loss for the six months
ended June 30, 2007 of $7.2 million, or $(0.10) per share, was based on
a loss from operations of $4.6 million, which included charges of $1.0
million for stock based compensation and $0.7 million for depreciation
and amortization. This compares to a net loss for the six months ended
June 30, 2006 of $6.8 million, or $(0.10) per share, based on a loss
from operations of $5.2 million, which included charges of $1.2 million
for stock based compensation and $0.6 million for depreciation and
amortization. AOI for the first six months ended June 30, 2007 was
$(2.9) million, a $0.5 million operating performance improvement,
compared to $(3.4) million for the first six months ended June 30, 2006.
Viewpoint’s cash, cash equivalents, and
marketable securities as of June 30, 2007 were $5.7 million. This can be
compared with cash, cash equivalents, and marketable securities of $2.8
million as of March 31, 2007.
FINANCIAL INFORMATION
Management prepares and is responsible for the Company’s
consolidated financial statements which are prepared in accordance with
accounting principles generally accepted in the United States. The
financial information contained in this press release, which is
unaudited, is subject to revision and should not be considered final
until the Company files its Quarterly Report on Form 10-Q, which is
scheduled to occur on or before August 9, 2007. At the present time, the
Company has no reason to believe that there will be changes to the
financial information contained herein.
FINANCIAL MEASURES
In addition to the results presented above in accordance with generally
accepted accounting principles, or GAAP, the Company presents financial
measures that are non-GAAP measures, specifically adjusted operating
income. The Company believes that this non-GAAP measure, viewed in
addition to and not in lieu of the Company’s
reported GAAP results, provides useful information to investors
regarding its performance and overall results of operations. These
metrics are an integral part of the Company’s
internal reporting to measure the performance of the Company and the
overall effectiveness of senior management. Reconciliations to
comparable GAAP measures are available in the accompanying schedules and
on the Company’s website. The financial
measures presented are consistent with the Company’s
historical financial reporting practices. The non-GAAP measures
presented herein may not be comparable to similarly titled measures
presented by other companies, and are not identical to corresponding
measures used in our various agreements or public filings.
CONFERENCE CALL
The Company will host a conference call on August 9, 2007 at 9:00 A.M.
(Eastern Time) to discuss second quarter 2007 financial results.
The conference call will be available via the Internet in the Investor
Relations section of Viewpoint’s Web site at http://www.viewpoint.com,
as well as through Thomson/CCBN at www.earnings.com.
If you are not able to access the live Web cast, dial in information is
as follows:
Toll-Free Telephone Number: (800) 603-7883
International Telephone Number: (706) 643-1946
Pass code: 11784828
Participants should call at least 10 minutes prior to the start of the
call.
A complete replay of the conference call will be available approximately
one hour after the completion of the call by dialing (800) 642-1687
through Thursday, August 16, 2007. Callers should enter the pass code
above to access the recording.
ABOUT VIEWPOINT
Viewpoint is a leading Internet marketing technology company, offering
Internet marketing and online advertising solutions through the powerful
combination of its proprietary visualization technology and a full range
of campaign management services including TheStudio, Viewpoint's
creative services group; Unicast, Viewpoint's online advertising group;
and KeySearch, Viewpoint's search engine marketing consulting practice.
Viewpoint's technology and services are behind the online presence of
some of the world's most esteemed brands, including AOL, GE, Sony, and
Toyota. More information on Viewpoint can be found at www.viewpoint.com.
The company has approximately 100 employees principally at its
headquarters in New York City, with additional offices in Los Angeles,
CA and in Austin, TX.
FORWARD LOOKING STATEMENTS
This press release contains "forward-looking" statements as that term is
defined in the Private Securities Litigation Reform Act of 1995 and
similar expressions that reflect Viewpoint's current expectations about
its future performance. These statements and expressions are subject to
risks, uncertainties and other factors that could cause Viewpoint's
actual performance to differ materially from those expressed in, or
implied by, these statements and expressions. Such risks, uncertainties
and factors include those described in Viewpoint's filings and reports
on file with the Securities and Exchange Commission, as well as, the
lack of assurance that Viewpoint will achieve long-term profitability.
Copyright © 2007 Viewpoint Corporation. All
Rights Reserved. Viewpoint, Unicast, TheStudio by Viewpoint and
KeySearch are trademarks or registered trademarks of Viewpoint
Corporation.
VIEWPOINT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
June 30,
March 31,
2007
2006
2007
Revenue:
Advertising systems
$
1,426
$
3,013
$
1,110
Search
1,726
1,573
1,485
Services
680
1,091
719
Licenses
5
32
6
Total revenue
3,837
5,709
3,320
Cost of revenue:
Advertising systems
913
2,199
452
Search
28
38
43
Services
509
648
481
Licenses
-
2
-
Total cost of revenue
1,450
2,887
976
Gross profit
2,387
2,822
2,344
Operating expenses:
Sales and marketing
1,322
1,449
1,195
Research and development
804
1,068
810
General and administrative
2,507
2,226
2,078
Depreciation
113
107
115
Amortization of intangible assets
230
111
128
Total operating expenses
4,976
4,961
4,326
Loss from operations
(2,589)
(2,139)
(1,982)
Other income (expense)
Interest and other income, net
61
90
51
Interest expense
(200)
(209)
(204)
Changes in fair values of warrants to purchase common stock
(2,418)
(544)
157
Total other income (expense)
(2,557)
(663)
4
Loss before provision for income taxes
(5,146)
(2,802)
(1,978)
Provision for income taxes
16
19
12
Net loss
$
(5,162)
$
(2,821)
$
(1,990)
Basic and diluted net loss per common share:
Net loss per common share
$
(0.07)
$
(0.04)
$
(0.03)
Weighted average number of shares outstanding-basic and diluted
76,577
66,505
67,670
VIEWPOINT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Six Months Ended
June 30,
2007
2006
Revenue:
Advertising Systems
$
2,536
$
4,608
Search
3,211
3,362
Services
1,399
1,644
Licenses
11
78
Total revenue
7,157
9,692
Cost of revenue:
Advertising systems
1,365
3,239
Search
71
74
Services
990
1,311
Licenses
-
8
Total cost of revenue
2,426
4,632
Gross profit
4,731
5,060
Operating expenses:
Sales and marketing
2,517
3,027
Research and development
1,614
2,156
General and administrative
4,585
4,585
Depreciation
228
224
Amortization of intangible assets
358
221
Restructuring charges
-
92
Total operating expenses
9,302
10,305
Loss from operations
(4,571)
(5,245)
Other income (expense):
Interest and other income, net
112
169
Interest expense
(404)
(496)
Changes in fair values of warrants to purchase common stock
(2,261)
(1,172)
Total other income (expense)
(2,553)
(1,499)
Loss before provision for income taxes
(7,124)
(6,744)
Provision for income taxes
28
26
Net loss
$
(7,152)
$
(6,770)
Basic and diluted net loss per common share:
Net loss per common share
$
(0.10)
$
(0.10)
Weighted average number of shares outstanding-basic and diluted
72,148
65,689
VIEWPOINT CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
(Unaudited)
June 30, 2007
December 31, 2006
Assets
Current assets:
Cash and cash equivalents
$
5,401
$
4,154
Marketable securities
312
113
Accounts receivable, net
3,353
3,037
Prepaid expenses and other current assets
593
543
Total current assets
9,659
7,847
Restricted cash
194
190
Property and equipment, net
916
1,023
Goodwill
15,103
14,882
Intangible assets, net
4,086
3,689
Other assets
59
56
Total assets
$
30,017
$
27,687
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
1,853
$
1,660
Accrued expenses
442
401
Deferred revenue
101
70
Current portion of notes payable
488
389
Accrued incentive compensation
545
545
Current liabilities related to discontinued operations
231
231
Total current liabilities
3,660
3,296
Accrued expenses - Deferred Rent
183
232
Warrants to purchase common stock
4,131
467
Subordinate notes
2,446
2,456
Unicast notes
1,459
1,541
Stockholders’ equity
Preferred stock
-
-
Common stock
83
68
Paid-in capital
311,798
306,214
Treasury stock
(1,015)
(1,015)
Accumulated other comprehensive loss
10
14
Accumulated deficit
(292,738)
(285,586)
Total stockholders’ equity
18,138
19,695
Total liabilities and stockholders’
equity
$
30,017
$
27,687
VIEWPOINT CORPORATION
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO ADJUSTED
OPERATING INCOME (LOSS)
(in thousands, except per share amounts)
(Unaudited)
June 30,
March 31,
June 30,
2007
2006
2007
2007
2006
Loss from Operations
$
(2,589
)
$
(2,139
)
$
(1,982
)
$
(4,571
)
$
(5,245
)
Plus (Less):
Stock based Compensation:
COS-Ad Systems
4
2
4
8
5
COS – Services
9
46
7
16
101
Sales and marketing
91
119
86
177
291
Research and development
26
85
28
54
194
General and administrative
513
243
213
726
572
Depreciation:
140
133
141
281
278
Amortization:
258
139
156
414
277
Restructuring charges
-
-
-
-
92
Adjusted Operating Income (loss)
$
(1,548
)
$
(1,372
)
$
(1,347
)
$
(2,895
)
$
(3,435
)