Exhibit 99.1
iLinc Communications Announces Fiscal 2004
Fourth Quarter and Year-End Results
PHOENIX--(BUSINESS WIRE)--June 17, 2004--iLinc Communications, Inc.
(AMEX:ILC):
Highlights
-- Changed name to iLinc Communications and implemented Web
conferencing growth strategy;
-- Launched new iLinc four-product suite in purchase and
subscription models matching and exceeding industry market
share leaders in features, functions, and sales models;
-- Raised $4.25 million of additional capital in April 2004 to be
invested in increasing sales and marketing efforts and
external growth;
-- Hired new senior vice president of sales and 25 other
quota-bearing sales and marketing individuals with
industry-specific knowledge and experience;
-- Added 116 new customers in fourth quarter alone, supporting
internal growth in purchase license, subscription (ASP), and
per-minute usage base that included California Software,
Guardian Insurance, Greenberg Traurig, and Qualcomm; and
-- Recently acquired an audio conferencing company, adding audio
conferencing products and services as a fully integrated Web
conferencing and audio conferencing solution.
iLinc Communications, Inc. (AMEX:ILC), developers of one of the
most feature-rich, secure and scalable Web conferencing and
collaboration software packages, today announced results for the
fiscal 2004 fourth quarter and fiscal year ended March 31, 2004.
For the three months ended March 31, 2004, total revenues from Web
collaboration and e-Learning products were $1.6 million compared with
Web collaboration and e-Learning total revenues reported for the three
months ended March 31, 2003, of $730,000. For the three months ended
March 31, 2004, the Company reported a net loss from continuing
operations of $1.1 million, or $0.06 per basic and diluted share, as
compared with a net loss from continuing operations of $1.7 million,
or $0.11 per basic and diluted share, during the three months ended
March 31, 2003.
For the year ended March 31, 2004, total revenues from Web
collaboration and e-Learning products were $5.9 million compared with
Web collaboration and e-Learning total revenues in the prior year of
$4.1 million. The Company reported a net loss from continuing
operations for the 2004 fiscal year of $2.3 million, or $0.16 per
basic and diluted share (after the effect of preferred and imputed
stock dividends totaling $247,000), an improvement from the 2003
fiscal year net loss of $3.9 million, or $0.25 per basic and diluted
share.
As of March 31, 2004, the Company discontinued its dental practice
management services. iLinc has restated its historical results to
reflect its dental segment as a discontinued operation. For the three
months ended March 31, 2004, the Company reported a net loss of
$13,000 from its dental segment as compared with a net loss of
$387,000 for the three months ended March 31, 2003. For the year ended
March 31, 2004, the Company reported a net income of $275,000 from its
discontinued dental segment as compared with net income of $133,000
for the year ended March 31, 2003.
Commenting on the fiscal year milestones, James M. Powers, Jr.,
president and chief executive officer of iLinc Communications, said,
"Over this past fiscal year, we have achieved many of the goals that
we established as we implemented an aggressive Web
conferencing-focused strategy. We changed the name of the Company,
raised capital and deployed that capital with positive results in Web
conferencing revenue growth, and increased market share and a rapidly
advancing customer base. Along the way, we expanded our award-winning
iLinc Web collaboration product line, matching the industry market
share leader, and added features that make the iLinc suite one of the
few comprehensive carrier class solutions available with AES
encryption on a behind-the-firewall basis."
Commenting on the financial results, James L. Dunn, Jr., senior
vice president and interim chief financial officer, added,
"Admittedly, our revenues for the fourth quarter fell short of our
internal goals. Notably in the quarter, sales of our purchase-license
iLinc products with extended payment terms totaling $378,000 were
recorded as deferred revenue, rather than as immediate revenue in the
fourth quarter. We will continue to record revenue in the period sold
when purchase-model iLinc licenses are sold with normal payment terms,
but will defer revenue over the payment period when the sale involves
extended terms. While deferral of those revenues into subsequent
periods lessens our current period revenue results, those future
revenues, in combination with our ASP and per-minute revenues, provide
a foundation for our future revenue recognition. Losses for the fourth
quarter were also impacted by the recognition of certain non-cash
expenses, including those associated with the conversion of debt."
In conclusion Dr. Powers added, "As previously announced, we
recently raised $4.25 million in additional capital and have begun to
deploy that capital into sales and marketing efforts to drive top line
revenue growth. We continue to invest through R&D and marketing
initiatives in our award-winning product line. Industry analyst Frost
& Sullivan predicts a compounded annual growth rate for the Web
conferencing industry of 33% until 2009, and we believe that the
actions we are undertaking position us well to be a part of that
growth. The recently announced acquisition of Glyphics Communications
is the next natural step in the execution of our online collaboration
business plan. With the addition of Glyphics' products and services,
we gain immediate access to a large customer base, monthly recurring
revenues, and motivated, talented professionals who know the audio
conferencing and event services industry. We anticipate quickly
building upon Glyphics' calendar year 2003 unaudited revenues of
approximately $5.0 million with the infusion of our Web conferencing
products and our additional sales and marketing capabilities. We
believe that we are well positioned for continued success, and we will
continue to work aggressively toward the achievement of our short- and
long-term goals."
Other Recent Events Occurring During and Shortly After the Fiscal
Year
-- In April, the Company closed a private placement offering
providing $4.25 million in gross proceeds;
-- In June, the Company announced its acquisition of the audio
conferencing assets of Glyphics Communications, providing the
Company with annual revenues of approximately $5.0 million and
immediate access to a large customer base, monthly recurring
revenues, and motivated, talented professionals who know the
audio conferencing and event services industry; and
-- Holders of the Company's debt and preferred stock exercised
their conversion options, extinguishing $2.4 million of debt
and preferred stock, providing additional equity, and reducing
interest expense.
A listen-only simulcast and 30-day replay of iLinc Communications'
year-end conference call will be available online through the
Company's Web site at www.ilinc.com or www.fulldisclosure.com
beginning at 11:00 a.m. Eastern time today.
About iLinc Communications, Inc.
Phoenix-based iLinc Communications, Inc. (http://www.ilinc.com) is
dedicated to helping corporations increase productivity through more
efficient communications using integrated Web and audio conferencing
for real-time collaboration. iLinc Communications has developed a
powerful, easy-to-use suite of services. As a fully scalable and
secure solution with the highest AES data encryption guidelines in the
industry, the Company's conferencing services save organizations time
and money while improving the effectiveness of a corporation's
communications. iLinc Communications' core suite of Web products,
including MeetingLinc, LearnLinc, ConferenceLinc, and SupportLinc,
delivers a Web collaboration platform suitable for enterprise or
organization-wide deployment.
Through its acquisition of Glyphics, the Company now also delivers
comprehensive audio conferencing solutions that help businesses
provide virtual meetings, corporate events, distance learning
programs, and daily conference calls. Its audio conferencing offering
includes a wide array of products:
-- Audio On-Demand (no reservations needed) -- With
pre-established calling accounts for each user, you can create
or participate in conference calls with no advance notice,
24/7;
-- Reserved Automated -- The solution for recurring calls, each
participant has a permanent number and passcode;
-- Operator Assisted -- For important calls, this service
includes an iLinc conference operator to host, monitor, and
coordinate the call; and
-- Online Seminars -- Support online Web presentation with
high-quality audio from iLinc.
This press release contains information that constitutes
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Any such
forward-looking statements involve risk and uncertainties that could
cause actual results to differ materially from any future results
described within the forward-looking statements. Factors that could
contribute to such differences include the rate of acceptance of our
products and services by customers, changes in the e-Learning and Web
conferencing and collaboration market in general, use of the Internet,
the acceptance of new products, our need for working capital, the
result of pending litigation, the competition we face from larger and
more well-capitalized competitors, and other matters more fully
disclosed in the Company's annual report on Form 10-K, quarterly
reports on Form 10-Q, and other reports filed with the Securities and
Exchange Commission. The forward-looking information provided herein
represents the Company's estimates and expectations as of the date of
the press release, and subsequent events and developments may cause
the Company's estimates and expectations to change. The Company
specifically disclaims any obligation to update the forward-looking
information in the future. Therefore, this forward-looking information
should not be relied upon as representing the Company's estimates and
expectations of its future financial performance as of any date
subsequent to the date of this press release.
iLINC COMMUNICATIONS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Year Ended
March 31, March 31,
------------------ ------------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenues:
Licenses $485 $88 $2,241 $447
Service and maintenance 1,106 642 3,665 3,629
-------- -------- -------- --------
Total revenue 1,591 730 5,906 4,076
Operating expenses:
Research and development 805 641 2,754 3,236
Sales and marketing 669 382 1,840 1,660
General and
administrative 706 908 2,237 1,602
Depreciation and
amortization 162 369 462 250
-------- -------- -------- --------
Total operating expenses 2,342 2,301 7,293 6,748
-------- -------- -------- --------
Loss from operations (751) (1,571) (1,387) (2,672)
Interest expense (308) (124) (1,233) (1,228)
Interest income and other 2 2 6 12
Gain on settlement of
debt and other obligations -- -- 349 --
Loss on foreign
currency translation (38) -- (28) --
-------- -------- -------- --------
(344) (122) (906) (1,216)
-------- -------- -------- --------
Loss from continuing
operations before
income taxes (1,095) (1,693) (2,293) (3,888)
Income tax expense -- -- -- --
-------- -------- -------- --------
Loss from
continuing operations (1,095) (1,693) (2,293) (3,888)
Income (loss) from
discontinued operations (13) (387) 275 133
-------- -------- -------- --------
Net loss (1,108) (2,080) (2,018) (3,755)
Preferred stock dividends (30) -- (75) --
Imputed preferred
stock dividends -- -- (247) --
-------- -------- -------- --------
Loss available to
common shareholders $(1,138) $(2,080) $(2,340) $(3,755)
======== ======== ======== ========
Basic and diluted
per share data:
Loss per common share from
continuing operations $(0.06) $(0.11) $(0.16) $(0.25)
Income (loss) per common
share from discontinued
operations -- (0.02) 0.02 0.01
-------- -------- -------- --------
Loss per common share $(0.06) $(0.13) $(0.14) $(0.24)
======== ======== ======== ========
Weighted average
shares outstanding 17,667 16,134 16,743 15,710
======== ======== ======== ========
iLINC COMMUNICATIONS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands, except per share data)
March 31, March 31,
2004 2003
-------- --------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $292 $409
Accounts receivable, net 1,097 597
Prepaid and other current assets 108 32
Notes receivable - current, net 25 25
-------- --------
Total current assets 1,522 1,063
Property and equipment, net 310 465
Goodwill 9,190 8,823
Intangible assets, net 1,061 1,346
Notes receivable - non-current, net 25 50
Other assets 51 56
Assets of discontinued operations 301 570
-------- --------
Total Assets $12,460 $12,423
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $961 $728
Accounts payable and accrued liabilities 2,301 2,040
Current portion of capital lease liabilities 289 462
Deferred revenue 1,084 817
-------- --------
Total current liabilities 4,635 4,047
Long-term debt 4,444 5,863
Leases payable 15 193
-------- --------
Total liabilities 9,094 10,103
-------- --------
Commitments and contingencies
Shareholders' equity:
Common stock, $0.001 par value, 40,000,000
shares authorized, 19,073,059 and
17,018,184 issued, respectively 19 17
Additional paid-in capital 36,395 32,854
Accumulated deficit (31,640) (29,300)
Less: Treasury stock (1,408) (1,251)
-------- --------
Total shareholders' equity 3,366 2,320
-------- --------
Total Liabilities and Shareholders' Equity $12,460 $12,423
======== ========
CONTACT: iLinc Communications Inc., Phoenix
James M. Powers, Jr., 602-952-1200
or
James L. Dunn, Jr., 602-952-1200