Exhibit 99.1
[GoAmerica letterhead]
CONTACT: Investor Relations
201-996-1717
investors@goamerica.com
GOAMERICA ANNOUNCES FOURTH QUARTER 2004 AND YEAR END RESULTS
Stabilizing Revenue and Declining Losses Move Company Toward Profitability
HACKENSACK, NJ, -- March 31, 2005 -- GoAmerica, Inc. (NASDAQ: GOAM) today
announced results for the fourth quarter and year ended December 31, 2004. Total
revenue for the three months ended December 31, 2004 was approximately $1.3
million, compared to total revenue in the previous quarter of approximately $1.4
million and total revenue of approximately $2.3 million in the fourth quarter of
2003.
Net loss for the fourth quarter was approximately $700,000, or $0.35 per diluted
common share, compared with a net loss of $1.2 million, or $0.61 per diluted
common share, during the previous quarter, and a net loss of $1.4 million, or
$1.98 per diluted common share, during the fourth quarter of 2003.
As of December 31, 2004, GoAmerica had approximately $7.7 million in cash and
cash equivalents, including $600,000 in restricted cash, compared to $8.7
million as of September 30, 2004 and $568,000 as of December 31, 2003. The
Company believes that it has sufficient funds to execute its business plan,
which focuses on providing differentiated communication services to people with
hearing loss.
"The overall health of our business improved significantly during 2004," said
Dan Luis, GoAmerica's CEO. "More recently, the stabilization of our revenue
base, aided by the introduction of new products, improves the Company's
prospects of achieving profitability in 2005."
Summary of recent activities:
o Global Interactive Acquisition - On December 1, 2004, the Company
acquired certain assets from Global Interactive, an established
provider of wireless products, services and accessories. This
acquisition has increased the wireless products and services
available for sale and has expanded the Company's distribution
opportunities.
o New Internet Relay Service Available - On March 24, 2005 the Company
launched its i711.comTM Internet relay service designed for people
who are deaf or hard of hearing. The new service differentiates its
core, Internet relay service with unique call management features
and exclusive community content.
o Marketing Alliance with EPIC - On March 31, 2005 the company
announced a marketing alliance with EPIC, the nation's largest
coalition of hearing healthcare physicians and audiologists.
GoAmerica and EPIC will develop pre-packaged, wireless product and
service bundles designed to simplify cell phone purchasing decisions
for Americans with hearing loss.
Additionally, the Company reported that subject to its capital constraints, it
continues to evaluate additional alliances and acquisitions that will increase
the scale and scope of the business.
About GoAmerica
GoAmerica provides a wide range of wireless, relay and prepaid 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 www.goamerica.com or
contact GoAmerica directly at TTY 201-527-1520, voice 201-996-1717 or via
Internet relay by visiting www.i711.com.
The statements contained in this news release 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. "i711",
"i711.com", and Clear Mobile are trademarks, and "Relay and Beyond" is a service
mark of GoAmerica. Other names may be trademarks of their respective owners.
GOAMERICA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
2004 2003
Assets
Current assets:
Cash and cash equivalents ......................... $ 7,098 $ 568
Accounts receivable, net .......................... 1,530 1,737
Other receivables ................................. 732 534
Merchandise inventories ........................... 123 213
Prepaid expenses and other current assets ......... 219 115
------------ ------------
Total current assets ................................... 9,702 3,167
Other assets ........................................... 8,284 9,798
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Total assets ........................................... $ $ 12,965
============ ============
17,986
Liabilities and stockholders' equity Current liabilities:
Accounts payable .................................. $ 348 $ 1,472
Accrued expenses .................................. 538 3,040
Bridge note payable, net .......................... -- 625
Deferred revenue .................................. 285 673
Other current liabilities ......................... 1 13
------------ ------------
Total current liabilities .............................. 1,172 5,823
Stockholders' equity ................................... 16,814 7,142
------------ ------------
$ 17,986 $ 12,965
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GOAMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three Months Ended December 31, Year Ended December 31,
2004 2003 2004 2003
Revenues: (Unaudited) (Unaudited)
Subscriber .................................................. $ 992 $ 2,111 $ 5,588 $ 10,108
Equipment ................................................... 25 125 181 1,042
Other ....................................................... 290 85 453 728
----------- ----------- ----------- -----------
1,307 2,321 6,222 11,878
Costs and expenses:
Cost of subscriber airtime, net ............................. 422 364 2,539 2,669
Cost of network operations .................................. 153 167 733 1,828
Cost of equipment revenue ................................... 111 129 260 1,152
Cost of other revenue ....................................... 145 -- 201 --
Sales and marketing, net .................................... 54 204 597 1,072
General and administrative .................................. 1,575 2,025 5,625 9,617
Research and development .................................... 73 93 507 1,209
Depreciation and amortization ............................... 140 366 804 1,912
Amortization of other intangibles ........................... 148 288 682 1,081
Impairment of goodwill ...................................... -- -- -- 193
Impairment of long-lived assets ............................. -- 150 -- 1,202
----------- ----------- ----------- -----------
2,821 3,786 11,948 21,935
----------- ----------- ----------- -----------
Loss from operations ............................................. (1,514) (1,465) (5,726) (10,057)
Other income (expense):
Gain on sale of subscribers ...................................... -- -- -- 1,756
Settlement gains (losses), net................t .................. 13 85 1,494 85
Interest income (expense), net ................................... 47 (262) (944) (275)
----------- ----------- ----------- -----------
Total other income (expense), net ................................ 60 (177) 550 1,566
----------- ----------- ----------- -----------
Net loss before benefit from income taxes ........................ (1,454) (1,642) (5,176) (8,491)
Income tax benefit ............................................... 732 284 732 284
----------- ----------- ----------- -----------
Net loss ......................................................... $ (722) $ (1,358) $ (4,444) $ (8,207)
=========== =========== =========== ===========
Basic net loss per share ......................................... $ (0.35) $ (1.98) $ (2.49) $ (12.10)
=========== =========== =========== ===========
Diluted net loss per share ....................................... $ (0.35) $ (1.98) $ (2.49) $ (12.10)
=========== =========== =========== ===========
Weighted average shares used in computation of basic net loss per
share ...................................................... 2,044,548 681,646 1,785,403 678,240
Weighted average shares used in computation of diluted net loss per
share ...................................................... 2,044,548 681,646 1,785,403 678,240
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