EXHIBIT 99.1
[GoAmerica letterhead ]
CONTACT: Investor Relations
201-996-1717
investors@goamerica.com
GOAMERICA ANNOUNCES RESULTS FOR THE SECOND QUARTER OF 2004
* * *
Company Still Awaiting Nasdaq Listing Qualifications Panel Ruling
Hackensack, NJ--August 12, 2004--GoAmerica, Inc. (NASDAQ: GOAM) today announced
results for the second quarter ended June 30, 2004 and the first full quarter of
results subsequent to completion of the Company's restructuring.
Total revenue for the three months ended June 30, 2004 was approximately $1.6
million, compared to total revenue in the previous quarter of approximately $1.9
million and total revenue of approximately $3.3 million in the second quarter of
2003. As in past quarters, the sequential decrease in total revenue was due in
part to declining use of the Company's historical Go.Web services and continuing
efforts to improve the payment profile of its subscriber base by eliminating
those subscribers with poor payment performance.
The Company's balance sheet remains significantly enhanced as compared with
periods prior to its restructuring. As of June 30, 2004, the Company had
approximately $9.7 million in cash and cash equivalents, including $600,000 of
restricted cash, and working capital of approximately $10.2 million as a result
of the Company's restructuring efforts during the previous two quarters.
With its restructuring complete, the Company is focusing on expanding its
portfolio of communications services, such as the new wireless relay services
recently announced with Sprint, and other value-added services.
On May 14, 2004, the Company implemented a one-for-10 reverse stock split in
order to achieve a trading price for its Common Stock equal to or above $1 per
share for 10 consecutive trading days, which would maintain the Company's
listing on the Nasdaq SmallCap Market. Due to the bid price of the Company's
Common Stock closing below $1 per share during such 10 day period, the Nasdaq
Staff sent the Company a delisting determination which the Company timely
appealed. The Company appeared before the Nasdaq Listing Qualifications Hearing
Panel and is awaiting a ruling as to whether the Company will be granted an
extension of time to achieve compliance with Nasdaq's minimum bid price rule or
if the Company's Common Stock trading will be moved to the Nasdaq
Over-The-Counter market. The Company continues to meet all other Nasdaq SmallCap
Market listing requirements other than the minimum bid price per share.
Net loss for the second quarter was approximately $1.4 million, or $0.08 per
basic and diluted common share, compared with a net loss of approximately $1.1
million, or $0.12 per basic and diluted common share, during the previous
quarter, and a net loss of approximately $2.9 million, or $0.53 per basic and
diluted common share, during the second quarter of 2003.
The Company believes it has sufficient funds to execute its new business plan,
which focuses on providing differentiated communication services to people with
hearing loss.
All references in this release and the attached financial statements to the
number of shares outstanding and per share amounts of the Company's common stock
have been restated to reflect the effect of the reverse split referred to above
for all periods presented.
ABOUT GOAMERICA
GoAmerica(R) is a leading provider of wireless telecommunications services for
people with hearing loss. The Company's vision is to improve the quality of life
for people who are deaf or hard of hearing by being their premier provider of
innovative communication services. WyndTell(R)--a GoAmerica service--is the
wireless service of choice for thousands of deaf consumers across the U. S., and
was recognized for Excellence in Universal Design and Technology, by the
California Governor's Committee for the Employment of Disabled Persons. For more
information, visit www.goamerica.com or contact GoAmerica directly at TTY
201-527-1520, voice 201-996-1717.
The statements contained in this news release (including our estimate regarding
the availability and sufficiency 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 ability to successfully manage our
strategic alliance with EarthLink; (iii) our dependence on EarthLink to provide
billing, customer and technical support to certain of our subscribers; (iv) our
ability to respond to the rapid technological change of the wireless data
industry and offer new services; (v) our dependence on wireless carrier
networks; (vi) our ability to respond to increased competition in the wireless
data industry; (vii) our ability to integrate acquired businesses and
technologies; (viii) our ability to generate revenue growth; (ix) our ability to
increase or maintain gross margins, profitability, liquidity and capital
resources; and (x) our ability to manage our remaining operations; and (xi)
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" and "WyndTell" are registered trademarks
of GoAmerica. "Go.Web", "Go.Web Enterprise Server", "Mobile Office", and
"OnPrem" are also trademarks or service marks of GoAmerica. Other names may be
trademarks of their respective owners.
- Tables to follow -
GOAMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30, DECEMBER 31,
2004 2003
------- -------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents ......................... $ 9,099 $ 568
Accounts receivable, net .......................... 1,764 1,737
Other receivables ................................ -- 534
Merchandise inventories ........................... 209 213
Prepaid expenses and other current assets ......... 550 115
------- -------
Total current assets ................................... 11,622 3,167
Other assets ........................................... 8,174 9,798
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Total assets ........................................... $19,796 $12,965
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable .................................. $ 397 $ 1,472
Accrued expenses .................................. 634 3,040
Bridge note payable, net .......................... -- 625
Deferred revenue .................................. 414 673
Other current liabilities ......................... 8 13
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Total current liabilities .............................. 1,453 5,823
Stockholders' equity ................................... 18,343 7,142
------- -------
$19,796 $12,965
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GOAMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------
REVENUES:
Subscriber .............................. $ 1,523 $ 2,932 $ 3,389 $ 5,443
Equipment ............................... 70 240 106 651
Other ................................... 4 159 50 340
------------ ------------ ------------ ------------
1,597 3,331 3,545 6,434
COSTS AND EXPENSES:
Cost of subscriber airtime, net ......... 739 463 1,607 1,200
Cost of network operations .............. 155 584 448 1,296
Cost of equipment revenue ............... 80 486 114 883
Sales and marketing, net ............... 209 437 378 1,037
General and administrative .............. 1,325 2,238 2,830 5,701
Research and development ................ 117 381 308 896
Depreciation and amortization ........... 216 622 496 1,207
Amortization of other intangibles ....... 183 322 435 551
Impairment of goodwill .................. -- 193 -- 193
Impairment of long-lived assets ......... -- 1,052 -- 1,052
------------ ------------ ------------ ------------
3,024 6,778 6,616 14,016
------------ ------------ ------------ ------------
Loss from operations ......................... (1,427) (3,447) (3,071) (7,582)
OTHER INCOME (EXPENSE):
Gain on sale of subscribers .................. -- 565 -- 1,745
Settlement gains, net ........................ -- -- 1,621 --
Interest income (expense), net ............... 36 3 (1,029) (9)
------------ ------------ ------------ ------------
Total other income ........................... 36 568 592 1,736
------------ ------------ ------------ ------------
Net loss ..................................... $ (1,391) $ (2,879) $ (2,479) $ (5,846)
============ ============ ============ ============
Basic net loss per share ..................... $ (0.08) $ (0.53) $ (0.20) $ (1.08)
============ ============ ============ ============
Diluted net loss per share ................... $ (0.08) $ (0.53) $ (0.20) $ (1.08)
============ ============ ============ ============
Weighted average shares used in computation of
basic net loss per share .................. 16,450,170 5,411,917 12,209,751 5,409,459
Weighted average shares used in computation of
diluted net loss per share ................ 16,450,170 5,411,917 12,209,751 5,409,459