EXHIBIT 99.1
[iLinc Communications logo]
CONTACT: JAMES M. POWERS, JR.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
(602) 952-1200
OR
DAVID J. IANNINI
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
(602) 952-1200
ILINC COMMUNICATIONS ANNOUNCES FISCAL 2005
FOURTH QUARTER AND YEAR-END RESULTS
FISCAL YEAR 2005 HIGHLIGHTS
o Increased revenue 76% over prior year
o Completed over 1,000 sales transactions with new and existing customers
o Added audio conferencing as a product line through acquisition
providing additional revenues and access to new synergistic customer
base
FOURTH QUARTER HIGHLIGHTS
o Increased revenue 95% over prior year's 4th quarter
o Achieved positive EBITDA from continuing operations
o Reduced loss from continuing operations 29% over prior year's 4th
quarter and 33% over the prior quarter
o Added approximately 300 new customers in 4th quarter alone, supporting
growth in license and per-minute usage base
PHOENIX, Arizona (July 1, 2005) - iLinc Communications, Inc. (AMEX:ILC),
developers of one of the most feature-rich and secure Web conferencing and
integrated audio conferencing solutions, today announced its results for fiscal
2005 fourth quarter and year ended March 31, 2005.
For the three months ended March 31, 2005, total revenues increased 95% to $3.1
million as compared with total revenues of $1.6 million for the three months
ended March 31, 2004. The Company reported a net loss available to common
shareholders of $949,000 for the three months ended March 31, 2005 or $0.04 per
basic and diluted share. For the three months ended March 31, 2005, loss from
continuing operations was reduced to $782,000 as compared to a loss from
continuing operations of $1,094,000 for the three months ended March 31, 2004.
For the 12 months ended March 31, 2005, total revenues increased 76% to $10.4
million as compared with total revenues of $5.9 million for the 12 months ended
March 31, 2004. The Company reported a net loss available to common shareholders
of $5.4 million for the 12 months ended March 31, 2005 or $0.23 per basic and
diluted share, as compared with a net loss for the twelve months ended March 31,
2004 of $2.3 million or $0.14 per basic and diluted share.
ILC Announces Fourth Quarter and Year-End Results
Page 2
July 1, 2005
Commenting on the financial results, James M. Powers, Jr., president and chief
executive officer of iLinc Communications, said, "In the first three quarters of
fiscal 2005, we took steps to strengthen our direct sales team and our indirect
sales channel with continued investment in sales and marketing. Much of the
significant increase in sales in the fourth quarter of fiscal 2005 is the direct
result of that investment and our marketing strategy. Because of the robust
feature set of our software, our Advanced Encryption Standard (AES) Security and
our unique licensing model, we continue to win new customers from our
competitors. We are successfully cross-selling our products, with 33% of
customer sales including both audio and Web products in FY2005, and 39% of
customer sales in Q4 including both audio and Web products. We also increased
sales from our existing customer base, further validating our up-selling and
cross-selling sales strategy. We believe that we will see continued sales growth
from an existing pipeline of new opportunities."
David J. Iannini, senior vice president and chief financial officer of iLinc
Communications, commented, "As we see continuing improvement in revenues we
expect continued positive trends in operating income and EBITDA that we believe
will ultimately lead to profitability. We continue to invest in sales and
marketing while implementing cost containment measures where appropriate. To
shore up our balance sheet and provide additional working capital, we are
actively engaged in an effort to raise additional capital, while holding firm on
the level of debt that mostly arose from legacy operations."
In closing, Dr. Powers added, "We are uniquely positioned to take advantage of
the projected 27% annual growth in the Web conferencing industry and
specifically, the higher growth software purchase segment of the Web
conferencing market with a 39% CAGR. We take pride in our ability to win Fortune
1000 customers often from larger competitors by exploiting our competitive
advantages. As one of the only Web conferencing providers with a robust feature
set that permits customers to purchase licenses for an easy-to-install,
behind-the-firewall solution, we are confident in our future prospects."
A listen-only simulcast and 30-day replay of iLinc Communications' fiscal 2005
fourth quarter and year-end conference call will be available online through the
Company's Web site at www.iLinc.com beginning at 11:00 a.m. Eastern time today.
ILC Announces Fourth Quarter and Year-End Results
Page 3
July 1, 2005
ABOUT ILINC COMMUNICATIONS, INC.
iLinc Communications, Inc. is a leading developer of conferencing products and
services for highly secure and cost-effective collaborative online meetings,
presentations, and training sessions. The Company provides integrated Web
conferencing and audio conferencing. iLinc is one of the only carrier-class
providers that offers a license purchase model that permits either a customer
hosted behind-the-firewall installation (purchase model) or one that can be
purchased and hosted by iLinc. Our products and services include the iLinc Suite
of Web conferencing software (MeetingLinc, LearnLinc, ConferenceLinc, and
SupportLinc) as well as traditional audio conferencing services (iLinc
On-Demand, Operator Assisted Conferencing; and EventPlus). iLinc's products and
services are used by organizations worldwide in sales, HR and training,
marketing, and customer support departments. More information about the
Phoenix-based company may be found on the Web at www.iLinc.com.
THIS PRESS RELEASE CONTAINS INFORMATION THAT CONSTITUTES FORWARD-LOOKING
STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. ANY SUCH FORWARD-LOOKING STATEMENTS INVOLVE RISK
AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY
FUTURE RESULTS DESCRIBED WITHIN THE FORWARD-LOOKING STATEMENTS. FACTORS THAT
COULD CONTRIBUTE TO SUCH DIFFERENCES INCLUDE THE RATE OF ACCEPTANCE OF THE
COMPANY'S PRODUCTS AND SERVICES BY CUSTOMERS, CHANGES IN THE WEB CONFERENCING
AND AUDIO CONFERENCING MARKET IN GENERAL, THE ACCEPTANCE OF NEW PRODUCTS, THE
COMPANY'S NEED FOR WORKING CAPITAL, THE RESULT OF PENDING LITIGATION, THE
COMPETITION THE COMPANY FACES FROM LARGER AND MORE WELL-CAPITALIZED COMPETITORS,
AND OTHER MATTERS MORE FULLY DISCLOSED IN THE COMPANY'S ANNUAL REPORT ON FORM
10-K, QUARTERLY REPORTS ON FORM 10-Q, AND OTHER REPORTS FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THE FORWARD-LOOKING INFORMATION PROVIDED
HEREIN REPRESENTS THE COMPANY'S ESTIMATES AND EXPECTATIONS AS OF THE DATE OF THE
PRESS RELEASE, AND SUBSEQUENT EVENTS AND DEVELOPMENTS MAY CAUSE THE COMPANY'S
ESTIMATES AND EXPECTATIONS TO CHANGE. THE COMPANY SPECIFICALLY DISCLAIMS ANY
OBLIGATION TO UPDATE THE FORWARD-LOOKING INFORMATION IN THE FUTURE. THEREFORE,
THIS FORWARD-LOOKING INFORMATION SHOULD NOT BE RELIED UPON AS REPRESENTING THE
COMPANY'S ESTIMATES AND EXPECTATIONS OF ITS FUTURE FINANCIAL PERFORMANCE AS OF
ANY DATE SUBSEQUENT TO THE DATE OF THIS PRESS RELEASE.
iLinc, iLinc Communications, iLinc Suite, MeetingLinc, LearnLinc,
ConferenceLinc, SupportLinc, iLinc On-Demand, and their respective logo are
trademarks or registered trademarks of iLinc Communications, Inc. All other
company names and products may be trademarks of their respective companies.
ILC Announces Fourth Quarter and Year-End Results
Page 4
July 1, 2005
ILINC COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
MARCH 31, MARCH 31,
-------------------------- --------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
Revenues:
License $ 931 $ 483 $ 3,274 $ 2,240
Software and audio services 1,591 392 5,052 1,195
Maintenance and professional services 574 716 2,043 2,471
----------- ----------- ----------- -----------
Total revenues 3,096 1,591 10,369 5,906
Cost of revenues:
License 8 96 154 219
Software and audio services 1,083 152 3,799 526
Maintenance and professional services 193 397 792 1,248
Amortization of acquired developed technology 126 60 451 233
----------- ----------- ----------- -----------
Total cost of revenues 1,410 705 5,196 2,226
----------- ----------- ----------- -----------
Gross profit 1,686 886 5,173 3,680
----------- ----------- ----------- -----------
Operating expenses:
Research and development 386 280 1,545 1,034
Sales and marketing 904 752 4,078 2,202
General and administrative 803 603 2,924 1,831
----------- ----------- ----------- -----------
Total operating expenses 2,093 1,635 8,547 5,067
Loss from operations (407) (749) (3,374) (1,387)
Interest expense (420) (309) (1,934) (1,233)
Interest income 3 4 31 21
Other expense (5) (40) (4) (43)
Gain on debt settlement 47 -- 82 349
----------- ----------- ----------- -----------
Loss from continuing operations (782) (1,094) (5,199) (2,293)
before income taxes
Net income (loss) from discontinued operations (143) (14) (128) 275
----------- ----------- ----------- -----------
Net loss $ (925) $ (1,108) $ (5,327) $ (2,018)
Preferred stock dividends (24) (30) (105) (75)
Imputed preferred stock dividends -- -- -- (247)
----------- ----------- ----------- -----------
Loss available to common shareholders $ (949) $ (1,138) $ (5,432) $ (2,340)
=========== =========== =========== ===========
Loss per common share, basic and diluted
From continuing operations $ (0.03) $ (0.06) $ (0.23) $ (0.16)
From discontinued operations (0.01) -- -- 0.02
----------- ----------- ----------- -----------
Net loss per common share $ (0.04) $ (0.06) $ (0.23) $ (0.14)
=========== =========== =========== ===========
Number of shares used in calculation of
loss per share, basic and diluted 24,145 17,667 23,179 16,743
=========== =========== =========== ===========
ILC Announces Fourth Quarter and Year-End Results
Page 5
July 1, 2005
ILINC COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
MARCH 31, MARCH 31,
2005 2004
--------- ---------
ASSETS (UNAUDITED)
Current assets:
Cash and cash equivalents $ 532 $ 292
Accounts receivable, net 1,949 1,097
Note receivable 25 25
--------- ---------
Prepaid and other current assets 69 108
Total current assets 2,575 1,522
Property and equipment, net 1,221 310
Goodwill 10,797 9,190
Intangible assets, net 2,504 1,061
Note receivable -- 25
Other assets 18 51
Assets of discontinued operations 114 301
--------- ---------
Total assets $ 17,229 $ 12,460
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 885 $ 961
Accounts payable and accrued liabilities 4,731 2,301
Current portion of capital lease liabilities 196 289
Deferred revenue 1,014 1,084
--------- ---------
Total current liabilities 6,826 4,635
Long-term debt 6,702 4,444
Leases payable 31 15
--------- ---------
Total liabilities 13,559 9,094
--------- ---------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value 10,000,000 shares authorized,
127,500 and 150,000 shares issued and outstanding, liquidation
preference of $1,275,000 and $1,500,000, respectively -- --
Common stock, $.001 par value, 100,000,000 shares authorized,
25,577,287 and 19,257,304 issued, respectively 26 19
Additional paid-in capital 42,175 36,395
Accumulated deficit (37,123) (31,640)
Less: Treasury stock, 1,432,412 shares (1,408) (1,408)
--------- ---------
Total shareholders' equity 3,670 3,366
--------- ---------
Total liabilities and shareholders' equity $ 17,229 $ 12,460
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