EXHIBIT 99.1
[GoAmerica letterhead ]
CONTACTS: Investor Relations
201-996-1717
investors@goamerica.net
GOAMERICA ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2003
Hackensack, NJ--November 13, 2003
GOAMERICA, INC. (NASDAQ: GOAM), a developer and distributor of wireless data
technology, today announced results for the third quarter ended September 30,
2003.
Total revenue for the three months ended September 30, 2003 was $3.1 million,
compared to total revenue in the previous quarter of $3.3 million and total
revenue of $9.1 million in the third quarter of 2002. The sequential decrease in
total revenue was primarily due to the Company's continuing efforts to improve
the payment profile of its subscriber base by eliminating those subscribers with
poor payment performance. During the third quarter, revenue attributable to the
Company's Wynd Communications subsidiary was $2.2 million.
The anticipated year-over-year decline in total revenue was primarily due to the
continued implementation of the Company's strategic alliance with EarthLink
(NASDAQ: ELNK), which commenced in the third quarter of 2002. As part of this
alliance, EarthLink acquired segments of GoAmerica's customer base and became
the Company's primary provider of network access, equipment, billing and
support. By transferring these lower margin products and services and
administrative costs to EarthLink, GoAmerica was able to more than offset the
year-over-year decline in revenue through a sizable reduction in our costs of
subscriber airtime and other operating expenses. Accordingly, GoAmerica also
realizes a significant reduction of revenue that it generates from sales of
wireless airtime and equipment.
During the third quarter, GoAmerica took additional steps to reduce the
Company's cost structure, including workforce reductions and office
consolidation. Through these initiatives and other cost savings associated with
GoAmerica's alliance with EarthLink, the Company was able to reduce selling,
general and administrative (SG&A) expenses during the third quarter by 37%.
Net loss for the third quarter was $1.0 million, or $0.02 per diluted common
share, compared with a net loss of $2.9 million, or $0.05 per diluted common
share, during the previous quarter, and a net loss of $24.3 million, or $0.45
per diluted common share, during the third quarter of 2002. Reported net loss
fobvr the third quarter of 2003 includes a $372,000 reduction in accruals for
certain sales and marketing expenses recorded in prior quarters.
As of September 30, 2003, GoAmerica had $842,000 in cash and cash equivalents
compared to $1.5 million as of June 30, 2003 and $5.0 million as of December 31,
2002. Through the third quarter of 2003, GoAmerica has reduced its overall use
of cash for nine consecutive quarters. The Company currently anticipates that
its available cash resources will be sufficient to fund our
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operating needs through January 2004. The Company believes that it will require
additional financing in order to remain in business beyond such date. GoAmerica
recently suspended active attempts to sell assets and retained a separate
outside advisor to explore equity placements that would enable the Company to
continue operations. The Company may not be able to raise funds on terms
favorable to it, or at all.
GoAmerica is also filing its Quarterly Report on Form 10-Q for the period ended
September 30, 2003.
GoAmerica will not be hosting a conference call this quarter.
ABOUT GOAMERICA
GoAmerica, Inc. is a developer of wireless data technology, based in Hackensack,
NJ, that licenses its proprietary Go.Web(TM) technology to enterprises and
individuals, providing mobile professionals with remote access to corporate
databases and intranets, email and the Internet across a wide variety of mobile
computing and wireless network devices. Through its wholly owned subsidiary,
Wynd Communications Corporation, the Company provides wireless
telecommunications services for people with hearing loss. Wynd Communications is
a winner of the California Governor's Award for Excellence in Universal Design
and Technology and has been recognized by both the Clinton and Bush
Administrations for its commitment to Americans with disabilities. For more
information on Go.Web, call 888-462-4600 or visit www.goamerica.net. For more
information about Wynd services, visit http://www.wynd.com, or contact Wynd
directly at TTY 800-549-2800, voice 805-781-6000 or e-mail: info@wynd.com.
The statements contained in this news release (including our estimate regarding
the availability of cash resources) that are not based on historical fact are
"forward-looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. 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 limited operating
history; (ii) our reduced capital resources and need for additional liquidity;
(iii) our ability to fund our operating needs through available cash reserves;
(iv) our ability to raise additional equity and renegotiate liabilities before
our cash resources are fully depleted; (v) the impact on our business from our
receiving a "going concern" opinion from our independent auditors; (vi) our
ability to successfully implement our strategic alliance with EarthLink; (vii)
our dependence on EarthLink to provide billing, customer and technical support
to our subscribers; (viii) our ability to respond to the rapid technological
change of the wireless data industry and offer new services; (ix) our dependence
on wireless carrier networks; (x) our ability to respond to increased
competition in the wireless data industry; (xi) our ability to integrate
acquired businesses and technologies; (xii) our ability to leverage strategic
alliances to generate revenue growth; (xiii) our ability to increase or maintain
gross margins, profitability, liquidity and capital resources; (xiv) our ability
to manage our remaining operations, and (xv) 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. 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",
"Go.Web", "Go.Web Enterprise Server",
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"Mobile Office", and "OnPrem" are trademarks or service marks of GoAmerica, Inc.
"WyndTell", "Deafwireless", and "Deafwireless Superstore" are trademarks or
service marks of Wynd Communications Corporation. Other names may be trademarks
of their respective owners.
- Tables to follow -
GOAMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
SEPTEMBER 30, DECEMBER 31,
2003 2002
------------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents ............... $ 842 $ 4,982
Accounts receivable, net ................ 2,714 5,780
Merchandise inventories ................. 294 1,046
Prepaid expenses and other current assets 319 520
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Total current assets ......................... 4,169 12,328
Other assets ................................. 9,959 14,437
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Total assets ................................. $14,128 $26,765
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ........................ $ 3,206 $ 4,694
Accrued expenses ........................ 2,420 5,917
Deferred revenue ........................ 1,083 2,406
Other current liabilities ............... 110 348
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Total current liabilities .................... 6,819 13,365
Other liabilities ............................ 814 383
Stockholders' equity ......................... 6,495 13,017
------- -------
$14,128 $26,765
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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,
----------------------------- -----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
REVENUES:
Subscriber ............................... $ 2,554 $ 7,375 $ 7,997 $ 23,260
Equipment ................................ 266 1,631 917 5,660
Other .................................... 303 94 643 202
------------ ------------ ------------ ------------
3,123 9,100 9,557 29,122
COSTS AND EXPENSES:
Cost of subscriber airtime, net .......... 1,105 4,827 2,305 16,765
Cost of network operations ............... 365 791 1,661 2,409
Cost of equipment revenue ................ 140 2,547 1,023 6,809
Sales and marketing, net ................ (169) 1,988 868 6,817
General and administrative ............... 1,891 6,927 7,592 22,801
Research and development ................. 220 963 1,116 2,863
Depreciation and amortization ............ 339 1,212 1,546 3,613
Amortization of other intangibles ........ 242 433 793 1,299
Impairment of goodwill ................... -- 8,400 193 8,400
Impairment of long-lived assets .......... -- 5,295 1,052 5,295
------------ ------------ ------------ ------------
4,133 33,383 18,149 77,071
------------ ------------ ------------ ------------
Loss from operations .......................... (1,010) (24,283) (8,592) (47,949)
OTHER INCOME (EXPENSE):
Gain on sale of subscribers ................... 11 -- 1,756 --
Interest income, net .......................... (4) 26 (13) 213
------------ ------------ ------------ ------------
Total other income ............................ 7 26 1,743 213
------------ ------------ ------------ ------------
Net loss ...................................... $ (1,003) $ (24,257) $ (6,849) $ (47,736)
============ ============ ============ ============
Basic net loss per share ...................... $ (0.02) $ (0.45) $ (0.13) $ (0.89)
============ ============ ============ ============
Diluted net loss per share .................... $ (0.02) $ (0.45) $ (0.13) $ (0.89)
============ ============ ============ ============
Weighted average shares used in computation
of basic net loss per share ................ 54,310,650 53,917,005 54,249,507 53,804,041
Weighted average shares used in computation
of diluted net loss per share .............. 54,310,650 53,944,004 54,249,507 53,831,040