Exhibit 99.1
[GoAmerica letterhead]
CONTACT:
Investor Relations
GoAmerica
Voice: 201-996-1717
investors@goamerica.com
GOAMERICA(R) REPORTS IMPROVED Q3 RESULTS
HACKENSACK, NJ, November 8, 2006 -- GoAmerica, Inc. (NASDAQ: GOAM), a leading
provider of online and wireless relay services, today announced results for the
third quarter ended September 30, 2006.
Third quarter results and comparisons to prior periods are presented reflecting
the Company's prepaid calling card division as a discontinued operation. This
sale was completed on October 2, 2006.
Total revenue for the three months ended September 30, 2006 increased by 93% to
approximately $4.6 million, compared to total revenue in the previous quarter of
approximately $2.4 million; and an increase of 259% compared to total revenue of
approximately $1.3 million in the third quarter of 2005.
Third quarter revenue growth resulted from a combination of two factors:
continued growth in the Company's i711(R) relay and wireless divisions, and the
Company's recent certification by the Federal Communications Commission (FCC),
which enabled GoAmerica to fully recognize revenues associated with its relay
services.
Prior to becoming certified, GoAmerica recognized only a portion of the revenue
it generated through its i711 relay service because it was submitting minutes
for payment through its business partner, Nordia, Inc. Nordia, which is also a
certified relay provider, would submit i711 relay service minutes to the
Interstate Telecommunications Relay Service (TRS) Fund on GoAmerica's behalf.
Under this arrangement, Nordia received the reimbursement and paid GoAmerica its
share of the revenue.
Net loss for the third quarter was approximately $522,000 or $0.22 per diluted
common share, compared with a net loss of $366,000, or $0.16 per diluted common
share in the previous quarter, and a net loss of approximately $1.0 million, or
$0.48 per diluted common share during the third quarter of 2005.
The third quarter net loss includes a $371,000 loss attributable to discontinued
operations. The loss from continuing operations was $151,000 for the third
quarter of 2006,
compared to $285,000 for the previous quarter and $653,000 for the third quarter
of 2005.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was a
loss of $93,000 in the third quarter of 2006, compared with a loss of $197,000
in the prior quarter, and a loss of $441,000 in the third quarter of 2005.
Included in the EBIDTA loss for the quarters ended September 30, 2006 and June
30, 2006 were $108,000 and $106,000 of non-cash employee compensation,
respectively.
As of September 30, 2006, GoAmerica had approximately $3.6 million in cash and
cash equivalents, compared to $3.9 million as of June 30, 2006.
"During 2006 our financial results have continued to improve and we are
optimistic about further improvements associated with the release of new
services slated for the fourth quarter and beyond," said Dan Luis, CEO of
GoAmerica.
GoAmerica filed its Quarterly Report on Form 10-Q for the period ended September
30, 2006 earlier today.
GoAmerica also announced today that its annual stockholders meeting for the
election of directors will be held on December 21, 2006 at 10:00 a.m. at 411
Hackensack Avenue, Hackensack, New Jersey. The close of business on November 10,
2006 has been established by GoAmerica as the record date for determination of
GoAmerica stockholders entitled to receive notice of and vote at the GoAmerica
annual stockholders meeting. A proxy statement, together with GoAmerica's Annual
Report on Form 10-K, will be mailed to stockholders of record prior to the
annual meeting.
Summary of Recent Developments
o Former Qualcomm Executive Joins Board of Directors - On September
12, 2006, GoAmerica announced that it appointed Jan Dehesh, a former
executive at Qualcomm, to its Board of Directors.
o Completes Sale of Prepaid Calling Card Business - On October 4,
2006, GoAmerica announced that it completed the sale of its prepaid
calling card operations to Next Carrier Telecom, Inc, a New York
based provider of telecommunications services.
About GoAmerica
GoAmerica provides a wide range of wireless and relay communications services,
customized for people who are deaf, hard-of-hearing or speech impaired. The
Company's vision is to improve the quality of life of its customers by being
their premier provider of innovative communication services. 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 or via
Internet relay by visiting http://www.i711.com.
Safe Harbor
The statements contained in this news release that are not based on historical
fact are "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 those of GoAmerica including: (i) our limited
operating history; (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 integrate acquired businesses
and technologies; (vi) our ability to generate revenue growth; (vii) our ability
to increase or maintain gross margins, profitability, liquidity and capital
resources; and (viii) 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 are registered trademarks of GoAmerica. "i711.com", "i711
Wireless", "ClickRelay", "Relay and Beyond", and "Clear Mobile" are trademarks
and service marks of GoAmerica. Other names may be trademarks of their
respective owners.
GOAMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2006 2005
------------- ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents ................... $ 3,646 $ 4,804
Accounts receivable, net .................... 1,733 931
Merchandise inventories, net ................ 412 161
Prepaid expenses and other current assets ... 708 110
Assets of discontinued operations ........... 147 378
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Total current assets ............................. 6,646 6,384
Other assets ..................................... 6,682 7,691
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Total assets ..................................... $13,328 $14,075
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable ............................ $ 1,043 $ 765
Accrued expenses ............................ 1,103 554
Deferred revenue ............................ 89 66
Other current liabilities ................... 62 19
Liabilities of discontinued operations ...... 92 173
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Total current liabilities ........................ 2,389 1,577
Other liabilities ................................ 86 --
Stockholders' equity ............................. 10,853 12,498
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$13,328 $14,075
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GOAMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
----------------------------------------------------------------------
2006 2005 2006 2005
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Revenues:
Subscriber ........................................ $ 328 $ 548 $ 934 $ 1,967
Relay services .................................... 3,497 329 5,325 774
Commissions ....................................... 559 255 2,045 549
Equipment ......................................... 165 120 266 297
Other ............................................. 2 15 5 127
----------- ----------- ----------- -----------
4,551 1,267 8,575 3,714
Costs and expenses:
Cost of subscriber airtime ........................ 265 208 569 727
Cost of equipment revenue ......................... 178 138 380 382
Cost of network operations ........................ 27 35 81 152
Cost of relay services ............................ 2,342 -- 3,034 --
Sales and marketing ............................... 689 320 1,709 773
General and administrative ........................ 1,105 911 3,267 2,973
Research and development .......................... 38 96 271 255
Depreciation and amortization ..................... 104 119 374 375
Amortization of other intangibles ................. -- 122 -- 564
----------- ----------- ----------- -----------
4,748 1,949 9,685 6,201
----------- ----------- ----------- -----------
Loss from operations ................................... (197) (682) (1,110) (2,487)
Other income (expense):
Terminated merger costs .......................... -- -- (431) --
Interest income (expense), net ................... 46 29 146 105
----------- ----------- ----------- -----------
Total other income (expense), net ...................... 46 29 (285) 105
----------- ----------- ----------- -----------
Loss from continuing operations ........................ (151) (653) (1,395) (2,382)
Loss from discontinued operations ...................... (371) (341) (571) (655)
----------- ----------- ----------- -----------
Net loss ............................................... $ (522) $ (994) $ (1,966) $ (3,037)
=========== =========== =========== ===========
Loss per share-Basic and Diluted:
Loss from continuing operations ................... $ (0.07) $ (0.32) $ (0.60) $ (1.14)
Loss from discontinued operations ................. (0.15) (0.16) (0.24) (0.31)
----------- ----------- ----------- -----------
Basic and Diluted net loss per share ................... $ (0.22) $ (0.48) $ (0.84) $ (1.45)
=========== =========== =========== ===========
Weighted average shares used in computation of
basic and diluted net loss per share ............... 2,338,451 2,093,451 2,338,451 2,093,445
GOAMERICA, INC.
RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
----------------------------------------------------------------------
2006 2005 2006 2005
----------------------------------------------------------------------
Loss from continuing operations ........................ (151) (653) (1,395) (2,382)
Adjustments:
Total other (income) expense, net ................. (46) (29) 285 (105)
Depreciation and amortization ..................... 104 119 374 375
Amortization of other intangibles ................. -- 122 -- 564
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Adjusted EBITDA ........................................ $ (93) $ (441) $ (736) $(1,548)
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