Glowpoint Announces Provides Business Update and Preliminary Second Quarter Results

Glowpoint (NYSEA:GLOW), a managed service provider of video collaboration and network applications announced preliminary financial results for the second quarter ended June 30, 2018.

According to a press release, the company expects revenue to be approximately US$3.3 million and US$6.8 million for the second quarter and first half of 2018.

As quoted in the press release:

Preliminary Second-Quarter 2018 Financial Highlights

• The Company expects revenue to be approximately $3.3 million and $6.8 million for the second quarter and first half of 2018, respectively.
• The Company expects a net loss of approximately $0.2 million and positive adjusted EBITDA (“AEBITDA”) of approximately $0.1 million for the second quarter of 2018.  AEBITDA is a non-GAAP financial measure.  See “Non-GAAP Financial Information” later in this release for a reconciliation of this non-GAAP financial measure.
• The Company expects to have cash-on-hand of approximately $2.7 million and no debt as of June 30, 2018.

“With the completion of our capital restructuring and the developing market opportunity, our ability to expand beyond our legacy service portfolio is greater than ever.Video remains an evolving product showing different demand profiles in terms of how and when it gets used in remote meetings, but we believe leveraging Glowpoint’s strengths in assessment, design and implementation of adoption and support services around the rapidly growing Unified Communications market is where significant and untapped value exists.  When we completed our most recent equity financing in January, our goal was to delve deeper into the UCaaS¹ market opportunity and develop services that addressed the widening gap between deployment of UC and the adoption thereof by users,” said Glowpoint President and CEO, Peter Holst.

“There is a significant market developing ² to address growing corporate demand for UC adoption services that help employees not only get ‘up and running’ on contemporary communication applications but also provide them real-time, automated and scalable support when they need it.  We are encouraged by the early response of some our largest customers as we begin to introduce some of these new solutions and features into the market.  On an additional positive note, we have also seen relative stability in revenue from our core managed services in the past twelve months, with quarterly revenue of $3.5 million, $3.4 million and $3.5 million for the three months ended September 30, 2017, December 31, 2017 and March 31, 2018, respectively, and $3.3 million expected for the three months ended June 30, 2018.  We are particularly encouraged that we expect to have generated positive AEBITDA during the second quarter and first half of 2018, despite making investments in the development of new services during these periods.  Our balance sheet remains strong, with $2.7 million of cash and no debt expected as of June 30, 2018, allowing us to explore potential acquisition and/or business development initiatives,” continued Mr. Holst.

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