Exhibit 99.1
[GoAmerica letterhead]
CONTACT: Investor Relations
201-996-1717
investors@goamerica.com
GOAMERICA ANNOUNCES RESULTS FOR THE THIRD QUARTER OF 2004
New Products and Services Gain Traction And Expected To
Increase Contribution in Fourth Quarter
HACKENSACK, NJ - November 11, 2004 - GoAmerica, Inc. (NASDAQ: GOAM) today
announced results for the third quarter ended September 30, 2004.
Total revenue for the three months ended September 30, 2004 was approximately
$1.4 million, compared to total revenue in the previous quarter of approximately
$1.6 million and total revenue of approximately $3.1 million in the third
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.
"While our third quarter revenues show a modest decline, we are encouraged by
positive consumer reaction to new products we launched in mid-September;
specifically, our wireless relay solution, offered in conjunction with Sprint,
and WyndPower 2.0(TM), our value-added service suite that operates on the
increasingly popular T-Mobile Sidekick device," said Dan Luis, CEO of GoAmerica.
"With these services now readily downloadable by a broader segment of our target
market, we expect revenue from these products to make a positive impact on our
results for the fourth quarter."
"Additionally, we have started recognizing revenues from our new prepaid
services division, announced in early September, and we expect this initiative
to have a positive impact on fourth quarter revenues," said Luis.
The Company's balance sheet remains strong, particularly compared with periods
prior to its restructuring. As of September 30, 2004, the Company had
approximately $8.7 million in cash and cash equivalents, including $600,000 of
restricted cash, and working capital of approximately $9.1 million.
In October, the Company was notified by The Nasdaq Stock Market's Listing
Qualifications Panel that the Company had remedied its bid price deficiency,
achieving the final requirement for continued listing of the Company's Common
Stock on The Nasdaq SmallCap Market. The bid price deficiency was remedied by
the Company's implementation of a one-for-eight reverse stock split, effective
as of October 4, 2004.
Net loss for the third quarter was approximately $1.2 million, or $0.61 per
basic and diluted common share, compared with a net loss of approximately $1.4
million, or $0.64 per basic and diluted common share, during the previous
quarter, and a net loss of approximately $1.0 million, or $1.48 per basic and
diluted common share, in the third quarter of 2003.
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 effects of the May 2004 and October 2004
reverse stock splits that were implemented in order to satisfy the Nasdaq's
minimum bid price requirement.
Summary of Recent Activities
o Expanded product portfolio - On September 7th the Company announced
it had created a prepaid services division to diversify its revenue
opportunities in a fast-growing market, while expanding
communications choices for current and future customers.
o New products and broadened distribution unveiled - On September 15th
the Company launched two new services; a wireless relay solution in
conjunction with Sprint, and a new version of its value-added
service, WyndPower, with both services operating on T-Mobile
Sidekick devices.
o Maintained Common Stock listing on Nasdaq Small Cap Market - On
October 21st, the Company announced that The Nasdaq Listing
Qualifications Panel found GoAmerica to be in compliance with its
continued listing requirements and, as a result, would remain listed
on the Nasdaq stock exchange.
o Strengthened Board of Directors - On October 22nd, the Company
announced the addition of David Lyons to its Board. Lyons brings an
extensive telecommunications industry background and substantial M&A
experience to the Company.
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 http://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 statements
regarding future revenue) 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.
GOAMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, December 31,
2004 2003
------------- -------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 8,092 $ 568
Accounts receivable, net 1,746 1,737
Other receivables -- 534
Merchandise inventories 215 213
Prepaid expenses and other current assets 477 115
------------- -------------
Total current assets 10,530 3,167
Other assets 7,954 9,798
------------- -------------
Total assets $ 18,484 $ 12,965
============= =============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 406 $ 1,472
Accrued expenses 629 3,040
Bridge note payable, net -- 625
Deferred revenue 351 673
Other current liabilities 4 13
------------- -------------
Total current liabilities 1,390 5,823
Stockholders' equity 17,094 7,142
------------- -------------
$ 18,484 $ 12,965
============= =============
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,
---------------------------------- ----------------------------------
2004 2003 2004 2003
--------------- --------------- --------------- ---------------
Revenues:
Subscriber $ 1,207 $ 2,554 $ 4,596 $ 7,997
Equipment 50 266 156 917
Other 113 303 163 643
--------------- --------------- --------------- ---------------
1,370 3,123 4,915 9,557
Costs and expenses:
Cost of subscriber airtime, net 510 1,105 2,117 2,305
Cost of network operations 132 365 580 1,661
Cost of equipment revenue 35 140 149 1,023
Cost of other revenue 56 -- 56 --
Sales and marketing, net 165 (169) 543 868
General and administrative 1,220 1,891 4,050 7,592
Research and development 126 220 434 1,116
Depreciation and amortization 168 339 664 1,546
Amortization of other intangibles 99 242 534 793
Impairment of goodwill -- -- -- 193
Impairment of long-lived assets -- -- -- 1,052
--------------- --------------- --------------- ---------------
2,511 4,133 9,127 18,149
--------------- --------------- --------------- ---------------
Loss from operations (1,141) (1,010) (4,212) (8,592)
Other income (expense):
Gain on sale of subscribers -- 11 -- 1,756
Settlement gains (losses), net (140) -- 1,481 --
Interest income (expense), net 38 (4) (991) (13)
--------------- --------------- --------------- ---------------
Total other income (expense), net (102) 7 490 1,743
--------------- --------------- --------------- ---------------
Net loss $ (1,243) $ (1,003) $ (3,722) $ (6,849)
=============== =============== =============== ===============
Basic net loss per share $ (0.61) $ (1.48) $ (2.19) $ (10.10)
=============== =============== =============== ===============
Diluted net loss per share $ (0.61) $ (1.48) $ (2.19) $ (10.10)
=============== =============== =============== ===============
Weighted average shares used in computation of
basic net loss per share 2,040,603 678,883 1,695,766 678,119
Weighted average shares used in computation of
diluted net loss per share 2,040,603 678,883 1,695,766 678,119
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