LOS GATOS, Calif., Sept. 14 /PRNewswire-FirstCall/ -- LiveWorld, Inc. (Pinksheets: LVWD.PK) today released 6 quarters of financial results from Year End 2002 through Q2 2004. Revenue grew 103% overall and had strong growth in most quarters since Q1 2003. As of Q2 2004, LiveWorld has recorded 7 straight cash positive quarters and 5 straight quarters of profitability. The Company's balance sheet has over $960, 000 in cash and no debt. "This sustained positive financial performance demonstrates the value of our online community relationship marketing and support solutions, the quality of our clients and the dedication of our team," said Peter Friedman, Chairman and CEO. We have emerged from the depths of the economic downturn with a proven business model and are poised for growth." As a cost savings measure in Q4 2002, the Company adjusted its status to remain a public company but without the requirements to file SEC reports. This saved the company over $200,000/year. Since then several Internet financial and stock sites have had out of date information on LiveWorld with their data based on the company's SEC filing for Q3 2002. The information released by LiveWorld today will enable interested parties to have a better understanding of the Company's significant revenue growth, profitable operations and strong balance sheet. LiveWorld stated that its strategy is to invest in revenue growth while maintaining an approximately breakeven bottom line. The Company currently expects its 2nd half 2004 revenue to show significant growth over 1st half 2004. Consistent with past year patterns and due to the seasonal "up summer" nature of the business of some clients, revenue for Q3 2004 may be higher than Q4 2004, which is expected to be followed by growth in Q1 2005. LiveWorld Financial Statements (These statements have not been audited or reviewed by an outside accounting firm and are subject to change upon such a review.) Income Statement: 2002-2004 2002 Q1 '03 Q2 '03 Q3 '03 Revenue $2,120,663 $600,684 $649,613 $702,825 Expense * 6,303,314 767,118 681,435 683,767 Net Ordinary Income (4,182,652) (166,434) (31,821) 19,058 Other Income 82,877 2,418 5,959 11,034 Other Expense/(Expense Reduction) ** (354,973) 1,000 (43,775) (7,946) Net Other Income 437,850 1,418 49,734 18,980 Net Income ($3,744,802) ($165,016) $17,912 $38,037 Outstanding Shares 25,358,874 25,358,874 25,358,874 25,358,874 Earnings Per Share (EPS) ($0.1477) ($0.0065) $0.0007 $0.0015 Q4 '03 2003 Q1 '04 Q2 '04 Revenue $624,506 $2,577,628 $968,216 $1,217,323 Expense * 597,448 2,729,769 928,553 1,197,293 Net Ordinary Income 27,058 (152,140) 39,663 20,030 Other Income 12,720 32,130 2,963 2,776 Other Expense/(Expense Reduction) ** (93,164) (143,885) (54,667) (1,178) Net Other Income 105,884 176,016 57,630 3,954 Net Income $132,942 $23,875 $97,293 $23,984 Outstanding Shares 25,358,874 25,358,874 26,584,707 26,584,707 Earnings Per Share (EPS) $0.0052 $0.0009 $0.0037 $0.0009 Balance Sheet: Last 3 quarters Dec 31, 03 Mar 31, 04 Jun 30, 04 Assets Cash 946,506 949,441 960,833 Accounts Receivable, Net 269,878 408,018 410,720 Other Current Assets 36,162 132,687 136,241 Total Current Assets 1,252,546 $1,490,147 $1,507,795 Long Term Assets 258,479 294,250 282,971 Total Assets $1,511,025 $1,784,397 $1,790,766 Liabilities & Equity Accounts Payable 32,114 115,899 29,504 Deferred Revenue 220,252 181,973 117,989 Other Current Liabilities 156,703 268,951 401,715 Total Current Liabilities 409,069 566,823 549,209 Total Long Term Liabilities -- -- -- Total Liabilities $409,069 $566,823 $549,209 Common Stock 25,481 25,481 25,481 Treasury Stock - Par (55) (55) (55) Additional Paid-in Capital 135,149,218 135,167,543 135,167,543 Treasury Stock Excess of Par (22,159) (22,159) (22,159) Retained Earnings (134,050,529) (133,953,237) (133,929,253) Total Equity $1,101,956 $1,217,573 $1,241,557 Total Liabilities & Equity $1,511,025 $1,784,397 $1,790,766 Notes * Expenses Included in "Expense" are significant one time legal expenses the Company is incurring in 2004 associated with its efforts to collect money past due or otherwise due from past clients. ** Other Income and Other Expense/(Expense Reduction) 2002 Other Income is mostly interest income. Other Expense Reduction is mostly associated with restructuring and write off adjustments. 2003 Other Expense Reduction is mostly associated with accounting reversals of accruals from prior years. Q1 2004 Other Expense Reduction is mostly associated with the net favorable impact of settlement of two one time legal matters related to payments and past due amounts from past clients for business transactions in Year 2000. About LiveWorld, Inc. LiveWorld (Pinksheets: LVWD.PK, www.liveworld.com) is the leading full service online community agency that creates, operates and manages loyalty marketing, customer support, and business intelligence communities based on LiveWorld's unique community applications platform and strategic community model. LiveWorld solutions enable Fortune 1000 companies to strengthen customer relationships, increase revenues, and reduce costs. Clients include companies such as America Online, eBay, HBO, MiniUSA, The Campbell's Soup Company, Slimfast, Fidelity Investments, SUN Microsystems, A&E Television Networks, Discovery Communications, The Walt Disney Company and Warner Brothers. LiveWorld is headquartered in Los Gatos, California. "Safe Harbor" Statement Under The Private Securities Litigation Reform Act: This press release contains forward-looking information concerning the Company's future expectations, forecasts, and prospects. These statements include those regarding the Company's current or future financial performance. Actual results may differ materially from those expressed in the forward looking statements made by the Company as a result of, among other things, the Company's ability to successfully deliver upon its contractual commitments, clients continuing their ongoing relationships with the Company, ability to acquire new customers, and other risk factors described in the Company's latest 10Q and 10K filed with the SEC. Financial information quoted in this release represents results that have not been audited or reviewed by an outside accounting firm.
SOURCE LiveWorld, Inc.