HACKENSACK, N.J., Aug 15, 2008 -- GoAmerica, Inc. (Nasdaq:GOAM), a provider of relay and wireless communications and professional interpreter services for deaf, hard-of-hearing, and speech- impaired persons, today announced unaudited results for the quarter ended June 30, 2008 and the filing of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission ("SEC").
Total revenue for the three months ended June 30, 2008 was $30.6 million, compared to $4.3 million for the three months ended June 30, 2007, and revenue for the six months ended June 30, 2008 was $59.7 million, compared to $8.6 million for the six months ended June 30, 2007. The revenue growth is primarily attributable to the Company's first quarter purchase of the telecommunications relay services business of Verizon and its merger with Hands On Video Relay Services, Inc., as well as organic growth in the Company's video relay services business.
Income from operations for the three months ended June 30, 2008 was approximately $1.2 million compared with a loss from operations of $810,000 for the three months ended June 30, 2007. Income from operations, when adjusting for approximately $2.0 million of non-cash employee compensation charges and integration costs related to the acquisitions, was $3.2 million for the three months ended June 30, 2008.
Net loss for the three months ended June 30, 2008 was approximately $201,000 compared with a net loss of $786,000 for the three months ended June 30, 2007. Net loss available to common stockholders, when taking into account the $813,000 of accrued preferred stock dividends, was $1.0 million, or $0.11 per common share, for the three months ended June 30, 2008 compared with a net loss $786,000, or $0.36 per common share, for the three months ended June 30, 2007.
Income from operations for the six months ended June 30, 2008 was approximately $3.4 million compared with a loss from operations of $1.5 million for the six months ended June 30, 2007. Net income for the six months ended June 30, 2008 was approximately $357,000 compared with a net loss of $1.6 million for the six months ended June 30, 2007.
Cash provided from operations, when adjusting for the effects of the transactions, was $1.8 million, principally resulting from income from operations. Capital expenditures for the six months ended June 30, 2008 were $1.5 million, used primarily to fund capacity expansion and call center operations.
As of June 30, 2008, GoAmerica had approximately $24.4 million in unrestricted cash and cash equivalents as well as $0.5 million in restricted cash. Additionally, the Company has $15.0 million of borrowing capacity under its revolving line of credit.
"Today's results demonstrate our continued emphasis on operational performance while maintaining our focus on integration activities, building operational capacity, and delivering a high quality of service to our customers," said John Ferron, CFO and COO of GoAmerica.
"Strategically, the company is where we wanted to be at this point in the year," said Dan Luis, CEO of GoAmerica. "Our integration efforts continue at a rapid pace, our team is coming together, and we're creating an operational platform that will enable us to continue to be the preferred communications provider to the communities we serve."
Summary of Recent Activities
-- On June 26, 2008, the Company became the first relay provider in the nation to complete a video call between a hearing person and a deaf person using a real, 10-digit phone number. For more information and call transcripts, visit www.goamerica.com/10digit.
-- On July 1, 2008, the Company announced it had merged with two of the nation's premier sign language interpreting services firms: Sign Language Associates (SLA) and Visual Language Interpreting (VLI), both of which are based in the Washington, D.C. metro area. The SLA and VLI transactions made GoAmerica the nation's leading provider of on-site sign language interpreting services, and will provide broader access to Video Remote Interpreting (VRI) services for its customers. The transactions also expand the availability of certified, high-quality interpreters and transcriptionists for the Company's other products and services.
-- On July 7, 2008, the Company provided attendees of the 49th biennial National Association of the Deaf (NAD) Conference with the first public demonstration of the upcoming Hands On VRS(R) Mobile Video Phone(TM) (MVP(TM)) and VideoSign software.
-- On July 11, 2008, the Company named Ahmet Corapcioglu as its Chief Information Officer. As Chief Information Officer, Mr. Corapcioglu is responsible for upgrading the Company's network and technology infrastructure to ensure a best of breed service in order to enhance our customers' experience. Mr. Corapcioglu most recently served as Partner, IBM, Global Services and previous to that was Vice President, Information Technology, Qwest Communications.
-- On August 11, 2008, the Company announced the appointment of Kathleen Abernathy to its Board of Directors. Ms. Abernathy is currently a partner with Akin Gump Strauss Hauer & Feld LLP. From June 2001 to December 2005, she served as commissioner to the Federal Communications Commission. Prior to that time, Ms. Abernathy was Vice president, Public Policy at Broadband Office Communications, Inc., a provider of commercial communications services and director of Frontier Communications, Inc.
"We are now positioned to be the leading, end-to-end service provider to the deaf and hard of hearing community," said Ed Routhier, President and Vice-Chairman of GoAmerica. "The additions of SLA and VLI diversify our revenue and service offerings, but equally important, they strengthen our position as the employer of choice, offering interpreters who join our company greater diversity in the practice of the profession."
About GoAmerica
GoAmerica is one of the nation's largest providers of communication services for the deaf, hard of hearing, and speech-disabled communities. As a leading provider of onsite interpreting services, video relay and text relay services, and video remote interpreting, the Company delivers a wide array of options designed to meet the varied communication needs of its customers. The Company's vision is to improve the quality of life of its customers by being their premier provider of high quality, innovative communication services that break down communications barriers. For more information on the Company or its services, visit http://www.goamerica.com or contact GoAmerica directly at TTY 201-527-1520, voice 201-996-1717, Internet Relay by visiting http://www.i711.com or http://www.ip-relay.com, or video phone by connecting to hovrs.TV.
Safe Harbor
The statements contained in this news release that are not based on historical fact -- including statements regarding the anticipated results of the transactions described in this press release -- constitute "forward- looking statements" that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 ability to integrate the businesses and technologies we have acquired; (ii) our ability to respond to the rapid technological change of the wireless data industry and offer new services; (iii) our dependence on wireless carrier networks; (iv) our ability to respond to increased competition in the wireless data industry; (v) our ability to generate revenue growth; (vi) our ability to increase or maintain gross margins, profitability, liquidity and capital resources; and (vii) difficulties inherent in predicting the outcome of regulatory processes. 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. GoAmerica is not obligated to update and does not undertake to update any of its forward looking statements made in this press release. 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", the "GoAmerica" logo, "i711", and the "i711.com" logo, "Relay and Beyond", and "Hands On VRS" are registered trademarks of GoAmerica. "i711.com", "i711 Wireless", "Mobile Video Phone", and "MVP" are trademarks and service marks of GoAmerica. Other names may be trademarks of their respective owners.