Exhibit 99.1
[GoAmerica letterhead]
CONTACT: Investor Relations
201-996-1717
investors@goamerica.com
GOAMERICA ANNOUNCES FIRST QUARTER 2005 RESULTS
Revenue Rises More than 50% from Prior Quarter and Losses Continue to Decline
HACKENSACK, NJ, -- May 12, 2005 -- GoAmerica, Inc. (NASDAQ: GOAM) today
announced results for the first quarter ended March 31, 2005.
Total revenue for the three months ended March 31, 2005 increased by 53% to
approximately $2.0 million, compared to total revenue in the previous quarter of
approximately $1.3 million and total revenue of approximately $1.9 million in
the first quarter of 2004.
Net loss declined by 28% for the first quarter to approximately $1 million, or
$0.48 per diluted common share, compared with a net loss of $1.4 million
(exclusive of a tax benefit of approximately $700,000), or $0.70 per diluted
common share, during the previous quarter, and a net loss of $1.1 million, or
$1.09 per diluted common share, during the first quarter of 2004.
As of March 31, 2005, GoAmerica had approximately $7.4 million in cash and cash
equivalents, including $300,000 in restricted cash, compared to $7.7 million as
of December 31, 2004 and $11.4 million as of March 31, 2004. 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.
"We are encouraged by customer reaction to some of our new services and the
associated impact on our results," said Dan Luis, GoAmerica's CEO. "These
results reflect strides we are making toward achieving profitability while
preserving a strong balance sheet."
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; (x) our ability
to manage our remaining operations; (xi) difficulties inherent in predicting the
outcome of regulatory processes; and (xii) our limited experience in offering
prepaid calling cards. 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)
March 31, December 31,
2005 2004
--------------------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents .................... $ 7,121 $ 7,098
Accounts receivable, net ..................... 1,614 1,530
Other receivables ............................ -- 732
Merchandise inventories, net ................. 196 123
Prepaid expenses and other current assets .... 258 219
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Total current assets .............................. 9,189 9,702
Other assets ...................................... 7,767 8,284
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Total assets ...................................... $16,956 $17,986
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable ............................. $ 241 $ 348
Accrued expenses ............................. 595 538
Deferred revenue ............................. 312 285
Other current liabilities .................... -- 1
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Total current liabilities ......................... 1,148 1,172
Stockholders' equity .............................. 15,808 16,814
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$16,956 $17,986
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GOAMERICA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended March 31,
----------------------------
2005 2004
----------------------------
Revenues:
Subscriber ................................................... $ 787 $ 1,866
Prepaid services ............................................. 891 --
Equipment .................................................... 102 36
Other ........................................................ 248 46
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2,028 1,948
Costs and expenses:
Cost of subscriber airtime ................................... 285 868
Cost of network operations ................................... 94 293
Cost of equipment revenue .................................... 105 34
Cost of prepaid services ..................................... 830 --
Sales and marketing .......................................... 111 169
General and administrative ................................... 1,244 1,505
Research and development ..................................... 54 191
Depreciation and amortization of fixed assets ................ 130 280
Amortization of other intangibles ............................ 221 252
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3,074 3,592
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Loss from operations .............................................. (1,046) (1,644)
Other income (expense):
Settlement gains, net ........................................ -- 1,621
Interest income (expense), net ............................... 38 (1,065)
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Total other income ................................................ 38 556
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Net loss .......................................................... $ (1,008) $ (1,088)
=========== ===========
Basic net loss per share .......................................... $ (0.48) $ (1.09)
=========== ===========
Diluted net loss per share ........................................ $ (0.48) $ (1.09)
=========== ===========
Weighted average shares used in computation of basic net loss per
share ....................................................... 2,093,432 996,166
Weighted average shares used in computation of diluted net loss per
share ....................................................... 2,093,432 996,166
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