hopTo Inc. Announces Fourth Quarter and Fiscal Year 2014 Highlights and Results
CAMPBELL, Calif., March 31, 2015 /PRNewswire/ -- hopTo Inc. (OTCQB: HPTO), developer and provider of the most comprehensive mobile productivity platform, today announced its financial results for the fourth quarter and the year ended December 31, 2014.
Fourth Quarter 2014 Highlights:
- Revenue of $1.5 million
- Launched hopTo Work for businesses in November, 2014
- Expansion of executive team with Vice President of Sales, Barry Flanagan, and Vice President of Product, Robin Brandl
Full Year 2014 Highlights:
- Revenue of $5.6 million
- Gross Profit of $5.1 million
- Jean-Louis Casabonne named as Chief Financial Officer
- 10 additional patents granted by the U.S. Patent and Trademark Office, bringing total number of patents to 18 at December 31, 2014
- Featured in articles on eWeek, BBC News, The VAR Guy, Gotta Be Mobile, PC World, CNET and others
"We were very excited to launch hopTo work, our mobile productivity platform for small and medium sized businesses and enterprise users, and bring it to market in late 2014," stated Eldad Eilam, CEO of hopTo Inc. "These early stages of the commercialization process have provided us with valuable insights into usage patterns and confirmation of valuable features, which has been useful in helping to shape our sales strategy and objectives for 2015.
"With that in mind, we are pleased to report extremely positive feedback from our prospective customers as they benefit from the additional functionality and security of the hopTo Work platform.
"Our sales teams have been working hard to build strong relationships with channel partners and prospective customers and they have had a great few months of customer engagement. We have learned during this phase that the lead time on generating revenues from hopTo Work is longer than we had previously anticipated. We are still expecting revenues to ramp gradually and for the Company to generate meaningful sales in 2015 from the hopTo product line.
"We are further encouraged by our distribution strategy, which is predominantly through resellers but still requires directly engaging with end-users alongside our partners in these early stages. Early reaction is more than promising and we are excited to see a growing pipeline of prospective customers for hopTo Work from a wide range of market verticals as the benefits of the technology are recognized by our target customers and partners.
"We also continue to see evidence of the ongoing trend toward enterprise mobility, including 'BYOD' ("bring your own device") and application mobilization in the workplace. We believe that we are well-positioned to benefit from this increasing reliance on mobile devices as enterprises battle to maintain high levels of security, while enabling their employees to enjoy a dynamic mobile experience," concluded Mr. Eilam.
Fourth Quarter 2014 Revenue
Total revenue for the fourth quarter 2014 of $1.51 million represents an increase of 13% over $1.34 million for the same period in the prior year. This revenue is from the Company's GoGlobal products and services.
Fiscal Year 2014 Financial Results
The Company's total revenue for 2014, from its GoGlobal products and services, was $5.6 million, compared to $5.9 million in the prior year, a decline of 5.7%, an improvement over the 10% decline that occurred from 2012 to 2013.
Gross profit for 2014 amounted to $5.1million, or 92% of revenues, as compared to $5.4 million, or 91% of revenues, for 2013.
Selling, general and administrative expenses were $5.4 million and R&D expenses were $4.9 million. The Company continued to deliver on cost controlling measures and better cash management, with total operating expenses for 2014 of $10.3 million, compared to $10.5 million for 2013.
hopTo Inc. reported a net loss for the year ended December 31, 2014 of $3.6 million, or $0.03 per basic and diluted share, compared to $3.7 million or $0.04 per basic and diluted share in fiscal year 2013.
As of December 31, 2014 the Company had a cash balance of $1.6 million and an accounts receivable balance of $2.2 million.
Conference Call
hopTo Inc. will host an investor conference call to discuss its financial results today, Tuesday March 31 2015, at 4:30 p.m. ET/1:30 p.m. PT.
Investors in the U.S. interested in participating in the call should dial 1-877-407-0784 and reference passcode 13603516. Those calling from outside the U.S. should dial 1-201-689-8560 and reference passcode 13603516. A telephone replay will be available approximately two hours after the call until April 14, 2015 by dialing 1-877-870-5176 from the U.S. or 1-858-384-5517 from international locations, with passcode 13603516.
A simultaneous live webcast will be available on the Investor Relations section of the Company's website at hopto.com and on the Company's Investor Relations mobile app, powered by IRapp™. The webcast will be archived on the Company's website for one year.
About hopTo:
Founded in its current form in 2012, hopTo Inc. is an innovator of a unique mobile productivity workspace platform. The hopTo mobile solution delivers an unparalleled user experience without compromising enterprise security. hopTo brings a new standard of mobile productivity by enabling individuals to Search, Access, Create, Edit and Share content from their mobile devices, efficiently and effectively, by leveraging any combination of on-premise or cloud stored content, documents and data as well as enterprise applications. The company is based in Campbell, CA.
For more information on hopTo, please visit: www.hopTo.com, https://www.linkedin.com/company/hopto or download the hopTo IRapp from the hopTo investor page.
FORWARD LOOKING STATEMENTS
This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements include statements regarding future growth and the expected impact of our products on the marketplace. These statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ significantly from those described in the forward looking statements. Factors that may cause such a difference include the following: the success of our new products depends on a number of factors including market and customer acceptance; our ability to manage the risks associated with new product introduction and developing and marketing new versions of the product; and other factors, including those set forth under Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014 and in other documents we have filed with the SEC.
Investors / Media:
Julie Silber
KCSA Strategic Communications
[email protected]
310.766.9760
| Condensed Consolidated Statements of Operations |
||||
| Twelve Months Ended December 31, |
||||
| 2014 |
2013 |
|||
| (Unaudited) |
(Unaudited) |
|||
| Revenue |
$ 5,553,400 |
$ 5,889,000 |
||
| Costs of revenue |
453,400 |
508,600 |
||
| Gross profit |
5,100,000 |
5,380,400 |
||
| Operating expenses |
||||
| Selling and marketing |
2,069,700 |
2,441,400 |
||
| General and administrative |
3,333,800 |
3,083,200 |
||
| Research and development |
4,911,400 |
4,999,900 |
||
| Total operating expenses |
10,314,900 |
10,524,500 |
||
| Loss from operations |
(5,214,900) |
(5,144,100) |
||
| Other income - change in fair value of warrants liability |
1,624,300 |
1,406,000 |
||
| Other income (expense), net |
(200) |
(100) |
||
| Loss before provision for income tax |
(3,590,800) |
(3,738,200) |
||
| Provision for income tax |
3,100 |
7,800 |
||
| Net loss |
(3,593,900) |
(3,746,000) |
||
| Basic earnings (loss) per share |
$ (0.03) |
$ (0.04) |
||
| Diluted earnings (loss) per share |
$ (0.03) |
$ (0.04) |
||
| Average weighted shares outstanding - basic |
111,602,598 |
90,409,625 |
||
| Average weighted shares outstanding - diluted |
111,602,598 |
90,409,625 |
||
| Condensed Consolidated Balance Sheets |
||||
| December 31, |
December 31, |
|||
| 2014 |
2013 |
|||
| (Unaudited) |
(Unaudited) |
|||
| Assets |
||||
| Cash |
$ 1,557,100 |
$ 2,430,700 |
||
| Accounts receivable, net |
2,211,300 |
811,700 |
||
| Prepaid expenses |
98,100 |
43,100 |
||
| Total current assets |
3,866,500 |
3,285,500 |
||
| Capitalized software, net |
408,700 |
619,400 |
||
| Property and equipment, net |
362,500 |
302,100 |
||
| Other assets |
139,700 |
139,900 |
||
| Total assets |
$ 4,777,400 |
$ 4,346,900 |
||
| Liabilities and stockholders' equity (deficit) |
||||
| Accounts payable and accrued liabilities |
$ 986,500 |
$ 844,100 |
||
| Deferred revenue - current |
2,859,300 |
2,772,900 |
||
| Deferred rent |
44,500 |
31,200 |
||
| Capital Lease |
7,700 |
- |
||
| Severance liability |
- |
62,900 |
||
| Total current liabilities |
3,898,000 |
3,711,100 |
||
| Warrants liability |
647,300 |
979,800 |
||
| Deferred revenue - long-term |
1,652,600 |
476,200 |
||
| Deferred rent - long-term |
158,200 |
84,600 |
||
| Capital Lease |
15,200 |
- |
||
| Stockholders' equity (deficit) |
(1,593,900) |
(904,800) |
||
| Total liabilities and stockholders' equity (deficit) |
$ 4,777,400 |
$ 4,346,900 |
||
SOURCE hopTo Inc.
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