.comment-link {margin-left:.6em;}

Thursday, November 10, 2005

LiveWorld (LVWD) Q3 results

LiveWorld announced their Q3 results yesterday. Here's the important part: they hit a brick wall in terms of revenues. They sort-of hit the wall last quarter, but at that point, it wasn't clear enough. Now it's right there. Brick wall. Why, it's not entirely clear, but they claim the earnings are down due to working on a new product which could make sense. Normally this would be capitalized and amortized over time and show up as a shift in assets on the balance sheet. Long term assets only increased $150K. If that is capitalized software costs, then the portion amortized in the current quarter (if any) would be pretty small. With a small team, a new product development could be taking focus away from growth in the current market segment (just letting it run on autopilot). I don't know.
“Third quarter revenue was driven by the increasing demand for online community services and continuing acceptance of LiveWorld’s extensive offerings by leading brands,” said Peter Friedman, Chairman and CEO. “We continue to execute on our strategy of growing revenue and maintaining profitability while investing significantly in new product development.”
Translation: "We can't tell you why revenues are flat, sorry."
I dumped about a third of my investment after the announcement (amazingly without much of a loss at all). I'll keep the rest for now.

I agree revs have taken a breather but I think it is normal after such rapid growth. If you are new to the story I can see the dissapointment. If you are like me an invested from when 2.5 million was our year revenues you have a different perspective. I have watched new revenue streams develop from the original model of Live chat events and I think this will continue as companies reckognize our tools.

Fyi Walmart is doing an event using Liveworld.


Best of luck,

I'm certainly fine with lumpy results. And I like it when management is honest about it. But they didn't address the issue. And it's not just one quarter. It's a significant obvious change in operations and they should at least say something about it, even if it's just to say they can't talk about it. Obviously I don't consider it that big since I didn't sell all the stock.

That's good to hear about Wal*Mart. Yep I see it, "Powered by LiveWorld".
Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?