EXHIBIT 99.1
iLinc Communications Announces Fiscal 2005 Second Quarter Results
PHOENIX--(BUSINESS WIRE)--Nov. 15, 2004--iLinc Communications, Inc.
(AMEX:ILC):
Fiscal 2005 Second Quarter Highlights:
-- Added more than 100 new Web conferencing customers
-- Doubled revenues over previous year period
-- Integrated audio conferencing operations from recent
acquisition
-- Realized sales success from Web and audio conferencing product
synergies
iLinc Communications, Inc. (AMEX:ILC), developers of one of the
most feature-rich and secure Web conferencing and integrated audio
conferencing solutions available, today announced results for the
fiscal 2005 second quarter ended September 30, 2004.
For the three months ended September 30, 2004, revenues from
continuing operations increased 96% to $2.7 million as compared with
revenues of $1.4 million for the three months ended September 30,
2003. For the three months ended September 30, 2004, the Company
reported a net loss from continuing operations of $1.8 million, or
$0.08 per basic and diluted share, as compared with a net loss from
continuing operations of $590,000, or $0.05 per basic and diluted
share, during the three months ended September 30, 2003.
For the first half of fiscal 2005, revenues from continuing
operations increased 72% to $4.7 million as compared with revenues of
$2.7 million for the first half of fiscal 2004. For the six months
ended September 30, 2004, the Company reported a net loss from
continuing operations of $3.3 million, or $0.15 per basic and diluted
share, as compared with a net loss from continuing operations of
$724,000, or $0.06 per basic and diluted share, during the same
six-month period in 2003.
Commenting on the second quarter results, James M. Powers, Jr.,
president and chief executive officer of iLinc Communications, said,
"We created a strong pipeline of new opportunities, accelerated our
penetration of strategic Web conferencing accounts and are encouraged
with our progress. This quarter realized the successful integration of
our recently acquired audio conferencing operations. We expect the
synergies of this audio conferencing acquisition with our Web
conferencing product offerings to make a powerful combination for
substantial expansion in our revenues in the upcoming quarters."
John S. ("Jack") Hodgson, senior vice president and chief
financial officer of iLinc Communications, added, "Our continued
expansion of revenue is a demonstration of growing product acceptance.
The loss for the quarter was due primarily to continued investment in
infrastructure, sales and marketing, and cost associated with
integrating our new acquisition. With much of the one-time expense
behind us, we have already reduced operating costs while continuing
investments in sales and marketing activities to expand revenues."
A listen-only simulcast and 30-day replay of iLinc Communications'
fiscal 2005 second quarter 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 on Monday,
November 15, 2004.
About iLinc Communications, Inc.
iLinc Communications, Inc. is a leading developer and provider of
hosted and premise-based Web and audio conferencing software for
two-way, highly secure and cost-effective collaborative online
meetings, presentations, and training sessions. iLinc's family of
software products, including MeetingLinc, LearnLinc, ConferenceLinc,
and SupportLinc, is used by financial services, technology, and
professional services firms worldwide in sales, HR and training,
marketing, and information technology applications.
Through the recent Glyphics acquisition, the Company now also
delivers comprehensive audio conferencing products and services that
help businesses provide daily conference calls, virtual meetings,
corporate events, and distance learning programs.
More information about the Phoenix-based company may be found on
the Web at http://www.ilinc.com.
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 the
Company's products and services by customers, changes in the Web
conferencing and audio conferencing market in general, the acceptance
of new products, the Company's need for working capital, the result of
pending litigation, the competition the Company faces 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, iLinc Communications, MeetingLinc, LearnLinc,
ConferenceLinc, SupportLinc, and its logo are trademarks or registered
trademarks of iLinc Communications, Inc. All other company names and
products may be trademarks of their respective companies.
iLINC COMMUNICATIONS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three Months Ended Six Months Ended
September 30, September 30,
--------------------------------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenues:
License $746 $589 $1,635 $1,189
Software and audio
services 1,420 299 2,131 567
Maintenance and
professional services 568 505 939 979
-------- -------- -------- --------
Total revenues 2,734 1,393 4,705 2,735
Cost of revenues:
License 37 77 79 94
Software and audio
services 1,096 125 1,620 266
Maintenance and
professional services 269 247 382 448
Amortization of acquired
developed technology 125 56 202 113
-------- -------- -------- --------
Total cost of revenues 1,527 505 2,283 921
Gross profit 1,207 888 2,422 1,814
Operating expenses:
Research and development 410 222 741 491
Sales and marketing 1,259 501 2,281 896
General and administrative 904 414 1,620 856
-------- -------- -------- --------
Total operating expenses 2,573 1,137 4,642 2,243
Loss from operations (1,366) (249) (2,220) (429)
Interest expense (457) (282) (1,089) (591)
Interest income 8 1 19 15
Other income (1) -- 10 (10)
Gain on debt settlement 14 (60) 22 291
-------- -------- -------- --------
Loss from continuing
operations before
income taxes (1,802) (590) (3,258) (724)
Net income from
discontinued operations -- 129 -- 137
-------- -------- -------- --------
Net loss (1,802) (461) (3,258) (587)
Preferred stock dividends (26) (15) (55) (15)
Imputed preferred
stock dividends -- (247) -- (247)
-------- -------- -------- --------
Loss available to
common shareholders $(1,828) $(723) $(3,313) $(849)
======== ======== ======== ========
Loss per common share,
basic and diluted:
From continuing operations $(0.08) $(0.05) $(0.15) $(0.06)
From discontinued
operations -- -- -- 0.01
-------- -------- -------- --------
Net loss per common share $(0.08) $(0.05) $(0.15) $(0.05)
======== ======== ======== ========
Number of shares used in
calculation of loss per
share, basic and diluted 24,132 16,025 22,214 15,911
======== ======== ======== ========
iLINC COMMUNICATIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
Sept. 30, March 31,
2004 2004
-------- --------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $1,112 $292
Accounts receivable, net 1,970 1,097
Note receivable 25 25
Prepaid and other current assets 214 108
-------- --------
Total current assets 3,321 1,522
Property and equipment, net 1,662 310
Goodwill 10,551 9,190
Intangible assets, net 2,972 1,061
Note receivable -- 25
Other assets 33 51
Assets of discontinued operations 193 301
-------- --------
Total Assets $18,732 $12,460
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long term debt $998 $961
Accounts payable and accrued liabilities 3,966 2,301
Current portion of capital lease liabilities 342 289
Deferred revenue 1,032 1,084
-------- --------
Total current liabilities 6,338 4,635
Long term debt 6,466 4,444
Leases payable 163 15
-------- --------
Total liabilities 12,967 9,094
-------- --------
Commitments and contingencies
Shareholders' equity:
Preferred stock, $.001 par value, 10,000,000
shares authorized, 127,500 and 150,000 shares
issued and outstanding, liquidation preference
of $1,275,000 and $1,500,000, respectively -- --
Common stock, $0.001 par value, 100,000,000
shares authorized, 25,578,350 and 19,257,304
issued, respectively 26 19
Additional paid-in capital 42,151 36,395
Accumulated deficit (35,004) (31,640)
Less: Treasury stock (1,408) (1,408)
-------- --------
Total shareholders' equity 5,765 3,366
-------- --------
Total Liabilities and Shareholders' Equity $18,732 $12,460
======== ========
CONTACT: iLinc Communications Inc., Phoenix
James M. Powers, Jr. or John S. Hodgson, 602-952-1200