Continues Business Integration and Synergistic Revenue Growth
HACKENSACK, N.J., Aug. 15 /PRNewswire-FirstCall/ -- GoAmerica, Inc.
(NASDAQ:GOAM), a provider of relay and wireless communications and
professional interpreter services for deaf, hard-of-hearing, and
speech- impaired persons, today announced unaudited results for the
quarter ended June 30, 2008 and the filing of its Quarterly Report
on Form 10-Q with the Securities and Exchange Commission ("SEC").
Total revenue for the three months ended June 30, 2008 was $30.6
million, compared to $4.3 million for the three months ended June
30, 2007, and revenue for the six months ended June 30, 2008 was
$59.7 million, compared to $8.6 million for the six months ended
June 30, 2007. The revenue growth is primarily attributable to the
Company's first quarter purchase of the telecommunications relay
services business of Verizon and its merger with Hands On Video
Relay Services, Inc., as well as organic growth in the Company's
video relay services business. Income from operations for the three
months ended June 30, 2008 was approximately $1.2 million compared
with a loss from operations of $810,000 for the three months ended
June 30, 2007. Income from operations, when adjusting for
approximately $2.0 million of non-cash employee compensation
charges and integration costs related to the acquisitions, was $3.2
million for the three months ended June 30, 2008. Net loss for the
three months ended June 30, 2008 was approximately $201,000
compared with a net loss of $786,000 for the three months ended
June 30, 2007. Net loss available to common stockholders, when
taking into account the $813,000 of accrued preferred stock
dividends, was $1.0 million, or $0.11 per common share, for the
three months ended June 30, 2008 compared with a net loss $786,000,
or $0.36 per common share, for the three months ended June 30,
2007. Income from operations for the six months ended June 30, 2008
was approximately $3.4 million compared with a loss from operations
of $1.5 million for the six months ended June 30, 2007. Net income
for the six months ended June 30, 2008 was approximately $357,000
compared with a net loss of $1.6 million for the six months ended
June 30, 2007. Cash provided from operations, when adjusting for
the effects of the transactions, was $1.8 million, principally
resulting from income from operations. Capital expenditures for the
six months ended June 30, 2008 were $1.5 million, used primarily to
fund capacity expansion and call center operations. As of June 30,
2008, GoAmerica had approximately $24.4 million in unrestricted
cash and cash equivalents as well as $0.5 million in restricted
cash. Additionally, the Company has $15.0 million of borrowing
capacity under its revolving line of credit. "Today's results
demonstrate our continued emphasis on operational performance while
maintaining our focus on integration activities, building
operational capacity, and delivering a high quality of service to
our customers," said John Ferron, CFO and COO of GoAmerica.
"Strategically, the company is where we wanted to be at this point
in the year," said Dan Luis, CEO of GoAmerica. "Our integration
efforts continue at a rapid pace, our team is coming together, and
we're creating an operational platform that will enable us to
continue to be the preferred communications provider to the
communities we serve." Summary of Recent Activities -- On June 26,
2008, the Company became the first relay provider in the nation to
complete a video call between a hearing person and a deaf person
using a real, 10-digit phone number. For more information and call
transcripts, visit http://www.goamerica.com/10digit. -- On July 1,
2008, the Company announced it had merged with two of the nation's
premier sign language interpreting services firms: Sign Language
Associates (SLA) and Visual Language Interpreting (VLI), both of
which are based in the Washington, D.C. metro area. The SLA and VLI
transactions made GoAmerica the nation's leading provider of
on-site sign language interpreting services, and will provide
broader access to Video Remote Interpreting (VRI) services for its
customers. The transactions also expand the availability of
certified, high-quality interpreters and transcriptionists for the
Company's other products and services. -- On July 7, 2008, the
Company provided attendees of the 49th biennial National
Association of the Deaf (NAD) Conference with the first public
demonstration of the upcoming Hands On VRS(R) Mobile Video
Phone(TM) (MVP(TM)) and VideoSign software. -- On July 11, 2008,
the Company named Ahmet Corapcioglu as its Chief Information
Officer. As Chief Information Officer, Mr. Corapcioglu is
responsible for upgrading the Company's network and technology
infrastructure to ensure a best of breed service in order to
enhance our customers' experience. Mr. Corapcioglu most recently
served as Partner, IBM, Global Services and previous to that was
Vice President, Information Technology, Qwest Communications. -- On
August 11, 2008, the Company announced the appointment of Kathleen
Abernathy to its Board of Directors. Ms. Abernathy is currently a
partner with Akin Gump Strauss Hauer & Feld LLP. From June 2001
to December 2005, she served as commissioner to the Federal
Communications Commission. Prior to that time, Ms. Abernathy was
Vice president, Public Policy at Broadband Office Communications,
Inc., a provider of commercial communications services and director
of Frontier Communications, Inc. "We are now positioned to be the
leading, end-to-end service provider to the deaf and hard of
hearing community," said Ed Routhier, President and Vice-Chairman
of GoAmerica. "The additions of SLA and VLI diversify our revenue
and service offerings, but equally important, they strengthen our
position as the employer of choice, offering interpreters who join
our company greater diversity in the practice of the profession."
About GoAmerica GoAmerica is one of the nation's largest providers
of communication services for the deaf, hard of hearing, and
speech-disabled communities. As a leading provider of onsite
interpreting services, video relay and text relay services, and
video remote interpreting, the Company delivers a wide array of
options designed to meet the varied communication needs of its
customers. The Company's vision is to improve the quality of life
of its customers by being their premier provider of high quality,
innovative communication services that break down communications
barriers. 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, Internet Relay by visiting
http://www.i711.com/ or http://www.ip-relay.com/, or video phone by
connecting to hovrs.TV. Safe Harbor The statements contained in
this news release that are not based on historical fact --
including statements regarding the anticipated results of the
transactions described in this press release -- constitute
"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: (i) our ability to integrate the businesses and
technologies we have acquired; (ii) our ability to respond to the
rapid technological change of the wireless data industry and offer
new services; (iii) our dependence on wireless carrier networks;
(iv) our ability to respond to increased competition in the
wireless data industry; (v) our ability to generate revenue growth;
(vi) our ability to increase or maintain gross margins,
profitability, liquidity and capital resources; and (vii)
difficulties inherent in predicting the outcome of regulatory
processes. 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", the
"GoAmerica" logo, "i711", and the "i711.com" logo, "Relay and
Beyond", and "Hands On VRS" are registered trademarks of GoAmerica.
"i711.com", "i711 Wireless", "Mobile Video Phone", and "MVP" are
trademarks and service marks of GoAmerica. Other names may be
trademarks of their respective owners. CONTACTS: John Ferron
GoAmerica CFO and COO 707-658-4690 Laura Kowalcyk CJP
Communications 212-279-3115 x209 GOAMERICA, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31,
2008 2007 Assets Current assets: Cash and cash equivalents $24,410
$2,368 Accounts receivable, net 13,390 1,960 Merchandise
inventories, net 303 206 Prepaid expenses and other current assets
1,476 220 Total current assets 39,579 4,754 Goodwill 61,194 6,000
Identifiable intangible assets, net 58,586 -- Other assets 8,189
7,544 Total assets $167,548 $18,298 Liabilities and stockholders'
equity Current liabilities: Accounts payable $4,176 $1,285 Accrued
expenses 11,371 3,623 Deferred revenue 40 94 Loan payable -- 3,532
Current portion of long term debt 400 -- Other current liabilities
124 88 Total current liabilities 16,111 8,622 Long term debt less
current portion, net of discount of $2,170 at June 30, 2008 67,230
-- Other liabilities 1,909 124 Stockholders' equity 82,298 9,552
$167,548 $18,298 GOAMERICA, INC. CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (In thousands, except share and per share data)
(Unaudited) Three Months Ended Six Months Ended June 30, June 30,
2008 2007 2008 2007 Revenues: Relay services $29,861 $3,834 $57,704
$7,494 Interpreting 627 -- 1,261 -- Other 161 471 747 1,118 30,649
4,305 59,712 8,612 Costs and expenses: Cost of relay services
16,528 2,670 31,635 5,075 Cost of interpreting 681 -- 1,239 -- Cost
of other 242 476 894 949 Sales and marketing 3,531 479 5,712 1,003
General and administrative 6,108 1,257 11,972 2,613 Research and
development 565 143 1,411 257 Depreciation and amortization 227 90
430 163 Amortization of intangible assets 1,601 -- 3,030 -- 29,483
5,115 56,323 10,060 Income (loss) from operations 1,166 (810) 3,389
(1,448) Other income (expense): Settlement losses -- -- -- (162)
Gain on interest rate cap agreement 241 -- 241 -- Interest income
(expense), net (1,608) 24 (3,273) 59 Total other income (expense),
net (1,367) 24 (3,032) (103) Income (loss) before income taxes
(201) (786) 357 (1,551) Income tax provision -- -- -- -- Net income
(loss) (201) (786) 357 (1,551) Preferred dividends (813) -- (1,527)
-- Net loss applicable to common stockholders $(1,014) $(786)
$(1170) $(1,551) Loss per common share: Basic $(0.11) $(0.36)
$(0.13) $(0.70) Diluted $(0.11) $(0.36) $(0.13) $(0.70) Weighted
average shares outstanding Basic and Diluted 9,159,071 2,204,097
9,152,203 2,203,793 DATASOURCE: GoAmerica, Inc. CONTACT: John
Ferron, CFO and COO of GoAmerica, +1-707-658-4690, ; or Laura
Kowalcyk of CJP Communications, +1-212-279-3115 x209, , for
GoAmerica Web site: http://www.goamerica.com/ http://www.i711.com/
http://www.ip-relay.com/
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