GlowPoint's Operational Initiatives Begin to Deliver Results in Fourth Quarter
Tuesday January 13, 9:04 am ET
Expected Quarterly Results Include: Revenue Growth of 9%; Billable Subscriber Location Growth of 16%; Positive Margin Momentum
HILLSIDE, N.J.--(BUSINESS WIRE)--Jan. 13, 2004-- GlowPoint, Inc. (Nasdaq:GLOW - News), the nation's first and leading carrier-grade, IP-based video communications service provider, announced today preliminary unaudited financial results for its fourth quarter ended December 31, 2003.
The Company expects to report total revenue of approximately $2.8 million, a 65% increase from the year-earlier period. Subscription and Related Revenue is estimated at $2.1 million, a 126% increase over the fourth quarter of 2002. The Company grew total quarterly revenue by 9% sequentially, while Subscription and Related Revenue rose 14% from the third quarter of 2003.
"When I came aboard three months ago, we committed to focusing on our operating fundamentals," said David C. Trachtenberg, GlowPoint's President and Chief Executive Officer. "Our initiatives have already begun to generate increased subscription revenue and improvements to our core business. We expect that the new GlowPoint Unlimited Video Calling Plans and other changes that were launched last week will further enhance revenue growth and contribute to an increase in operating margin."
GlowPoint reported a 16% sequential increase in net Billable Subscriber Locations. The Company added 25 new customers during the fourth quarter, an increase of 10% from the third quarter of 2003. The Company's Variable Gross Margin (gross margin based on variable costs of revenue) rose to approximately 50% during the fourth quarter.
During the fourth quarter, GlowPoint also reduced its Subscriber Location Backlog from 246 in the third quarter of 2003 to 78. The backlog was reduced as a result of more efficient provisioning, which enabled the Company to get customers on its network 20% faster than in the prior quarter. Over half of new subscriber locations ordered in the fourth quarter were brought onto the GlowPoint network and made billable in the same quarter. The Company also identified efficiency improvements in network costs that should be seen in the first quarter of 2004.
"We are continuing to redefine the key metrics that investors should be looking at to understand the GlowPoint business," said Trachtenberg. "Subscriber Location Backlog will be kept to a minimum as we continue to maximize provisioning efficiencies and minimize the time it takes to turn an order into a Billable Subscriber Location."
Trachtenberg continued, "Based on the feedback we are receiving from our customers, distribution partners and industry analysts, our relaunch on January 6th was on the mark. While we believe that the full impact of our actions will be seen in our second quarter results, we are already beginning to see benefits from our revenue growth and operational efficiency activities."
GlowPoint expects to release its audited fourth quarter and year-end results and host a conference call for investors in late February 2004.
About GlowPoint
GlowPoint, Inc. is the nation's first and leading carrier-grade, IP-based video communications service provider. GlowPoint operates a video communications service featuring broadcast quality images with telephone-like reliability, features and ease-of-use. The GlowPoint network spans three continents. Our service carries over 8,000 video calls per month through the United States, Canada, Europe, South America and Asia. Since our network was built in 2000, GlowPoint has carried over 12.5 million video conferencing minutes in video calls. GlowPoint is headquartered in Hillside, New Jersey. To learn more about GlowPoint, visit us at www.glowpoint.com. |
