Investor Relations
LiveDeal, Inc. Reports 2012 First Quarter Financial Results

LAS VEGAS--(BUSINESSWIRE)--LiveDeal, Inc. (NASDAQ: LIVE), a provider of web-based local customer acquisition and related products for small businesses, today reported financial results for its first fiscal quarter ended December 31, 2011.

Net loss for the fiscal 2012 first quarter decreased 89%, or $1,538,756, to $191,638 from $1,730,394 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to the decrease in the company’s cost of services and general and administrative expenses described below. Gross profit for the fiscal 2012 first quarter increased 515%, or $515,549, to $615,594 from $100,045 reported for the fiscal 2011 first quarter, which is primarily ascribable to the decrease in the company’s cost of services described below.

Net revenues for the fiscal 2012 first quarter were $851,413, a decrease of $143,209 (14%) from $994,622 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to a pause in the company’s sales efforts since July 2011 during which time the company evaluated new sales programs, improved its marketing and fulfillment services, and implemented various cost reductions. The company’s cost of services for the fiscal 2012 first quarter was $235,819, a $658,758 (74%) decrease from $894,577 reported for the fiscal 2011 first quarter. The decrease was primarily ascribable to decreased fulfillment costs as the company took over fulfillment activities from third party vendors. General and administrative expenses for the fiscal 2012 first quarter were $766,808, a decrease of $1,205,761 (61%) from $1,972,569 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to decreased employee compensation and professional fee expenses.

Commenting on the results, Jon Isaac, LiveDeal’s newly appointed President and CEO, stated, “We are very encouraged with our recent financial results, especially since total operating losses have declined substantially due to the closing of unprofitable product lines, reductions in cost of services, and reductions in general and administrative expenses. We expect that continued operational improvements, along with top-line growth, can lead LiveDeal, Inc. toward profitability this fiscal year.”

                               

LiveDeal, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

(Unaudited)

                               
         

December 31,
2011

                 

September 30,
2011

Assets                              
Cash and cash equivalents       $ 2,177,605                   $ 244,470  
Accounts receivable, net         556,350                     654,856  
Prepaid expenses and other current assets         73,023                     113,323  
Total current assets         2,806,978                     1,012,649  
Accounts receivable, long term portion, net         382,365                     371,438  
Property and equipment, net         131,111                     171,201  
Deposits and other assets         29,007                     31,007  
Intangible assets, net         1,193,145                     1,222,334  
Total assets       $ 4,542,606                   $ 2,808,629  
                               
Liabilities and Stockholders' Equity                              
Liabilities:                              
Accounts payable       $ 620,938                   $ 600,908  
Accrued liabilities         398,533                     424,595  
Notes payable         900,000                     1,000,000  
Current portion of capital lease obligation         21,224                     36,992  
Total current liabilities         1,940,695                     2,062,495  
Long term portion of capital lease obligation                              
Total liabilities         1,940,695                     2,062,495  
                               
Commitments and contingencies                              
                               
Stockholders' Equity                              
Series E convertible preferred stock, $0.001 par value         10,866                     10,866  
Common stock, $0.001 par value         2,338                     698  
Treasury stock (4,252 shares carried at cost)                             (70,923 )
Paid in capital         22,788,413                     20,813,082  
Accumulated deficit         (20,199,706 )                   (20,007,589 )
Total stockholders' equity         2,601,911                     746,134  
                               
Total liabilities and stockholders' equity       $ 4,542,606                   $ 2,808,629  
                               
                               
           

LiveDeal, Inc. and Subsidiaries

Condensed Statements of Operations

(Unaudited)

           
       

 

Three Months Ended December 31,

          2011                 2010
Net revenues       $ 851,413                 $ 994,622  
Cost of services         235,819                   894,577  
Gross profit         615,594                   100,045  
                             
Operating Expenses                            
General and administrative expenses         766,808                   1,972,569  
Sales and marketing expenses         60                   13,592  
Total operating expenses         766,868                   1,986,161  
Operating loss         (151,274 )                 (1,886,116 )
                                 
Other Income (expense)                            
Interest income (expense), net         (43,944 )                 1,562  
Other income (expense)                            
Total other income (expense)         (43,944 )                 1,562  
                             
Loss before income taxes         (195,218 )                 (1,884,554 )
Income tax provision (benefit)                            
Loss from continuing operations         (195,218 )                 (1,884,554 )
                             
Discontinued Operations                            
Income from discontinued component, including disposal costs         3,580                   154,160  
Income tax provision (benefit)                            
Income from discontinued operations         3,580                   154,160  
                             
Net loss       $ (191,638 )               $ (1,730,394 )
                             
Earnings per share - basic and diluted1:                            
Loss from continuing operations       $ (0.18 )               $ (2.96 )
Discontinued operations         0.00                   0.24  
Net loss       $ (0.18 )               $ (2.72 )
                                 
Weighted average common shares outstanding                            
Basic         1,043,960                   636,828  
Diluted         1,043,960                   636,828  
                             

1 Certain amounts may not total due to rounding of individual components.

           

LiveDeal, Inc. and Subsidiaries

Condensed Statements of Cash Flows

(Unaudited)

           
       

 

Three Months Ended December 31,

          2011                   2010
Cash Flows From Operating Activities                              
Net loss       $ (191,638 )                 $ (1,730,394 )
Adjustments to reconcile net loss to net cash used in operating activities                              
Depreciation and amortization         69,279                     205,477  
Stock based compensation expense         47,894                     23,499  
Amortization of deferred stock compensation                             17,885  
Provision for uncollectible accounts         14,181                     206,990  
Changes in Assets and Liabilities                              
Accounts receivable         73,398                     (108,988 )
Prepaid expenses and other current assets         40,300                     126,441  
Deposits and other assets         2,000                      
Accounts payable         20,030                     66,263  
Accrued liabilities         (26,541 )                   (267,643 )
                               
Net cash provided by/(used in) operating activities         48,903                     (1,460,470 )
                               
Cash Flows From Investing Activities                              
Expenditures for intangible assets                              
Purchases of property and equipment                              
                               
Net cash provided by/(used in) investing activities                              
                               
Cash Flows From Financing Activities                              
Principal repayments on capital lease obligations         (15,768 )                   (15,203 )
Issuance of common stock for cash         2,000,000                     100,000  
Payments on notes payable         (100,000 )                    
                               
Net cash provided by financing activities         1,884,232                     84,797  
                               
Increase/(Decrease) In Cash And Cash Equivalents         1,933,135                     (1,375,673 )
                               
Cash And Cash Equivalents, beginning of period         244,470                     3,227,374  
                               
Cash And Cash Equivalents, end of period       $ 2,177,605                   $ 1,851,701  
                               
Supplemental cash flow disclosures                              
Noncash financing and investing activities                              
Accrued and unpaid dividends       $ 479                   $ 479  
                               
Interest paid       $ 43,987                   $ 832  
                               
Income tax paid (received)       $                   $  
                                   
                                   

For more information about LiveDeal’s fiscal first quarter results, including the notes accompanying the foregoing condensed consolidated financial statements, please review the company’s quarterly report on Form 10-Q filed today, together with its annual report on Form 10-K for the fiscal year ended September 30, 2011. Both reports can be accessed by visiting the company’s website at www.livedeal.com or the SEC’s website at www.sec.gov.

About LiveDeal, Inc.

LiveDeal, Inc. provides local customer acquisition services and related products for small businesses to deliver an affordable way for businesses to extend their marketing reach to target customers via the Internet. For more information, visit www.livedeal.com.

Forward-Looking and Cautionary Statements

This news release contains forward-looking statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this news release may not occur. Generally, these statements relate to LiveDeal’s business plans or strategies, projected or anticipated benefits or other consequences of LiveDeal’s plans or strategies, financing plans, projected or anticipated costs of and benefits from acquisitions that LiveDeal may make, or projections involving anticipated revenues, earnings, costs, expenses, or other aspects of LiveDeal’s operating results or financial position, and the outcome of any contingencies. Any such forward-looking statements are based on current expectations, estimates and projections of management. LiveDeal intends for these forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained in this press release include, but are not limited to, statements regarding the Company’s future profitability. LiveDeal cautions you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond LiveDeal’s control, which may influence the accuracy of the statements and the projections upon which the statements are based. Factors that could cause actual results to differ materially from those set forth or implied by any forward-looking statement include, but are not limited to, risks and uncertainties discussed in LiveDeal’s reports filed with the Securities and Exchange Commission, including, but not limited to, LiveDeal’s Annual Report or Form 10-K for the fiscal year ended September 30, 2011 and other filings. Copies of these filings are available at the SEC’s website at www.sec.gov.

Contacts

Investor Relations Contact:
LiveDeal, Inc.
Larry Tomsic, Chief Financial Officer
702-939-0230
ltomsic@livedeal.com