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One Horizon Group Announces Six Month Results for the Period Ended December 31, 2012

 One Horizon Group Announces Six Month Results for the Period Ended December
                                   31, 2012

- Expects strong growth in 2013 based on existing contracts and robust
pipeline of Tier One and Tier Two Carriers

PR Newswire

BAAR, Switzerland, May 9, 2013

BAAR, Switzerland, May 9, 2013 /PRNewswire/ -- One Horizon Group, Inc. (OTC:
OHGI) ("One Horizon Group" or the "Company"), which develops software
application platforms that optimize mobile voice, instant messaging and
advertising communications over the internet, today announced financial
results for the six months ended December 31, 2012.

Financial Highlights and Recent Events

  oRevenue was $11.7 million for the six months ended December 31, 2012,
    compared to $0.7 million for the same period the previous year
  oIncome from operations was $6.6 million for the six months ended December
    31, 2012, compared to a loss from operations of $1.3 million for the same
    period the previous year
  oNet income was $5.3 million for the six months ended December 31, 2012,
    compared to a loss of $1.3 million for the same period the previous year
  oIn October 2012, the Company divested its satellite communications
    subsidiary in order to focus exclusively on software for Tier 1 and Tier 2
    mobile network operators
  oIn October 2012, Pzzapp, a European provider of VoIP apps for smartphones,
    commercially launched its optimized mobile VoIP service for smartphones
    using the Company's VoIP and messaging platform
  oCompleted a $6 million equity financing on February 18, 2013, of which
    $2.79 million has been received to date
  oSigned contract with Smart Communications, Inc. to roll out a Smart
    Communications branded Horizon Call mobile VoIP platform, bringing total
    number of Tier 1 and Tier 2 carriers to 14
  oEntered into joint venture with ZTESoft Technology Co. LTD, a subsidiary
    of ZTE Corp., to sell licenses for the Horizon platform to international
    operators and to Chinese enterprises and to roll out a new mobile VoIP
    platform to China smartphone market

"We are pleased to announce very encouraging results for the six months ended
December 31, 2012 reflecting the success of Horizon Call, our mobile VoIP
solution for network operators. Horizon Call is a revolutionary solution that
enables users to make high quality calls over Wi-Fi or data connections
including 4G, 3G, 2G/EDGE or GPRS, thus dramatically reducing the expense of
making overseas calls and providing inexpensive calls while roaming outside of
the home country," stated Mark White, Chief Executive Officer of One Horizon
Group.

"Our patent-pending SmartPacket™ technology enables One Horizon Group to
improve the efficiency with which voice calls are transmitted over wireless,
wire-line or satellite communications networks by approximately 10X, providing
higher service quality and reach. We believe we are the only mobile VoIP
platform that can effectively operate on congested 2G and 3G networks, which
dominate wireless infrastructure in very sizable, fast growing Asian markets
such as China, Indonesia, India and the Philippines as well as most of the
developing markets.

"Further, One Horizon Group directly addresses network congestion issues
resulting from the explosion of smartphones and other mobile computing
devices, an issue that is becoming of far greater urgency as smartphone
deployments scale and stress already congested infrastructure with data and
video traffic. Research firm International Data Corporation ("IDC") estimates
that 918 million smartphones will be shipped in 2013, representing 50.1% of
total mobile phone shipments. In the past 18 months One Horizon Group has
entered into partnerships with leading telecommunication carriers that allow
these operators to improve revenue per user by retaining calls that would have
gone to over-the-top (OTT) data applications running on their networks and to
reduce customer churn. Our application, which is available on iPhones and
Android phones, enables clear voice communications and optimizes the use of IP
bandwidth even as we see vast untapped potential," Mr. White continued.

"Cisco projects global mobile data traffic to increase 13-fold between 2012
and 2017. According to Cisco, at the end of 2012, the number of
mobile-connected devices exceeded the number of people on earth, and by 2017,
it is expected that there will be 1.4 mobile devices per capita. This has been
driven by the availability of cheap GSM data and the massive uptake of
smartphones and tablets, devices on which our Horizon Call platform is
designed to run. As networks become more and more congested, our unique
software service adds value to mobile data networks and gives users more
highway and cheaper tolls."

Share Exchange Transaction and Comparability of Financial Results

In October 2012, the Company (then, Intelligent Communication Enterprise
Corporation, ("ICE Corp.")) and One Horizon Group PLC ("One Horizon UK")
entered into a share exchange transaction through which ICE Corp. acquired One
Horizon UK. The share exchange transaction was consummated on November 30,
2012, at which time One Horizon UK became a wholly-owned subsidiary of ICE
Corp. On December 27, 2012, the Company changed its name to One Horizon Group,
Inc. For more information on the share exchange transaction refer to the
Company's filings with the US Securities and Exchange Commission.

Prior to the share exchange transaction, One Horizon UK's fiscal year ended on
June 30. On February 13, 2013, the Company's board of directors changed the
Company's fiscal year end from June 30 to December 31. As a result of this
change, when reporting its annual financial results with the SEC on Form
10-KT, the Company included the financial information for the six-month
transition period from July 1, 2012 to December 31, 2012.

Financial Results for the Six Months Ended December 31, 2012

Revenue was $11.7 million for the six month period ended December 31, 2012, up
from $0.7 million for the six month period ended December 31, 2011. The sales
growth is expected to continue as more companies sign up for the Horizon
Platform.

Gross profit was $11.6 million for the six month period ended December 31,
2012, up from $0.7 million for the six month period ended December 31, 2011.
The main reason for the increase was the growth in business and smartphone
market globally as well as the Company's ability to capitalize on market
opportunities by entering areas with high population density, high penetration
of mobile phones, congested mobile cellular networks and high growth in the
adoption of smartphones. Gross margin for the six month period was 99.0%.

Operating expenses were $5.0 million, or 42.7% of sales for the six months
ended December 31, 2012 as compared to $1.9 million, or 271.4% of sales for
the same period in 2011. The increase was due to costs related to adding
resources to deal with new customers in both data handling and the account
management roles. Going forward, management expects these costs to rise due to
various public company related expenses including share-based compensation,
and various legal and consulting services.

Income from continuing operations before income taxes was $6.7 million for the
six month period ended December 31, 2012, compared to a loss from continuing
operations before income taxes of $1.3 million for the same period in 2011.

Income from continuing operations was $5.4 million for the six months ended
December 31, 2012, compared to a loss of $1.3 million for the same period last
year. The operating margin for the six months ended December 31, 2012 was
46.2%.

Net income was $5.3 million for the six months ended December 31, 2012,
compared to a loss of $1.3 million for the same period last year.

Financial Condition

As of December 31, 2012, the Company had $0.7 million in cash and cash
equivalents and its working capital, excluding the current portion of deferred
revenue, was approximately $0.6 million. As of December 31, 2012, the Company
had $0.2 million in long term debt, $22.0 million in deferred revenue and
stockholders' equity was $16.8 million. During the six months ended December
31, 2012, the Company used cash of approximately $0.8  million for operating
activities, while investing activities used approximately $0.4 million and
financing activities provided approximately $2.0 million in net cash.

Subsequent Equity Financing
On February 18, 2013, the Company entered into an agreement with a shareholder
to whom it sold 483,870,968 shares of common stock for an aggregate
consideration of $6,000,000, or $0.0124 per share. The Company also issued a
common stock purchase warrant to this shareholder exercisable for three years
to purchase 241,935,483 shares of Common Stock at an exercise price of $0.0124
per share. Pursuant to the Subscription Agreement, the initial installment of
the investment of $2,790,000 was paid in April 2013, with two additional
installments totaling $3,210,000 to be made by September 30, 2013.

Business Update and 2013 Outlook
During 2012 the Company entered into a number of new agreements with mobile
carriers, including Smart Communications, the number one mobile carrier in the
Philippines, bringing the total number of first- and second-tier carriers that
have adopted the Horizon Call platform to 14. In addition, the Company entered
into a joint venture with ZTESoft Technology Co. LTD, a subsidiary of ZTE
Corp., the fourth largest mobile phone manufacturer in the world and the fifth
largest telecommunications equipment provider, to sell licenses for the
Horizon platform to international operators and to Chinese enterprises and to
roll out the mobile VoIP platform in China using Horizon Call technology.

The Company anticipates further revenue growth in 2013 and is exploring
several regions and markets where its software application will have the most
value-added impact on present business, including India and China. Asia
represents a key opportunity for the Company's Horizon Call platform due to
its high population density, high penetration of mobile phones, congested
mobile cellular networks and high growth in the adoption of smartphones. These
factors will put increased pressure on mobile operators to manage their
network availability and provide cost and efficiency advantages relative to
current technologies. The Company foresees its Horizon SmartPacket™ as being
especially competitive in this region since it is the world's lowest bandwidth
voice compression and transmission protocol and no other software companies
offer a solution in such a complete and integrated fashion.

"In 2013, we are intent on growing our Horizon Call platform that offers
mobile network operators evolutionary telecommunications efficiencies and
higher revenue per user. Horizon Call is available as a white-labeled
solution, making it unique to each operator, can be configured for text or
audio advertising and can work with the mobile operator's existing payment
system. Furthermore, Horizon Call is available for download on the Google Play
store and iTunes App store, allowing operators to reach a much broader
audience than preinstalling the application on handsets. As such, Horizon Call
provides a very compelling value proposition to our customers. Finally, we
believe that the extension of our technology to optimize data applications for
personal computers and business-to-business solutions further diversifies our
business and augurs further expansion in the periods ahead," Mr. White
concluded.

About One Horizon Group, Inc.
One Horizon Group Inc.'s business is to optimize communications over the
Internet through its wholly owned subsidiary, Horizon Globex, which develops
and markets one of the world's most bandwidth-efficient mobile voice over
Internet Protocol ("VoIP") platform for smartphones, and also offers a range
of other optimized data applications including messaging and mobile
advertising. It is an ISO 9001 and ISO 20000-1 certified company. The Company
has operations in Switzerland, the United Kingdom, China, India, Singapore and
Hong Kong. For more information on the Company, its products and services,
please visit http://www.onehorizongroup.com.

Safe Harbor Statement
This news release may contain "forward-looking" statements. These
forward-looking statements are only predictions and are subject to certain
risks, uncertainties and assumptions that could cause actual results to differ
from those in the forward looking-statements. Potential risks and
uncertainties include such factors as uncertainty of consumer demand for
Company's products, as well as additional risks and uncertainties that are
identified and described in Company's SEC reports. Actual results may differ
materially from the forward-looking statements in this press release.
Statements made herein are as of the date of this press release and should not
be relied upon as of any subsequent date. The Company does not undertake, and
it specifically disclaims, any obligation to update any forward-looking
statements to reflect occurrences, developments, events or circumstances after
the date of such statement.

Contact:
CCG Investor Relations
Crocker Coulson, President
Phone: + (1) 646-213-1915
Email: Crocker.Coulson@ccgir.com

FINANCIAL TABLES FOLLOW

ONE HORIZON GROUP, INC.
(formerly Intelligent Communication Enterprise
Corporation)
Consolidated Balance Sheets
December 31, 2012, June 30, 2012 and 2011
(in thousands)
                                             December 31,   June 30,
                                             2012           2012       2011
Assets
Current assets:
  Cash                                     $ 699          $ -        $ -
  Accounts receivable, current portion       5,899          953        212
  Income taxes recoverable                   -              -          60
  Other assets                               136            121        304
  Total current assets                       6,734          1,074      576
Accounts receivable, net of current          26,263         22,814     2,821
portion
Property and equipment, net                  350            419        282
Intangible assets, net                       12,329         12,187     10,704
Investment                                   -              55         -
Total assets                               $ 45,676       $ 36,549   $ 14,383
Liabilities and Stockholders' Equity
Current liabilities:
  Checks issued in excess of funds on      $ -            $ 39       $ 92
  deposit
  Accounts payable                           750            3,655      676
  Accrued expenses                           435            2,478      380
  Accrued compensation                       38             -          -
  Income taxes                               1,332          163        -
  Amounts due to related parties             3,500          2,020      3,885
  Current portion of deferred revenue        6,000          4,600      400
  Current portion of long-term debt          59             33         1,600
  Total current liabilities                  12,114         12,988     7,033
Long-term liabilities
  Deferred revenue                           16,000         13,400     1,200
  Long term debt                             219            60         -
  Deferred income taxes                      445            445        445
  Mandatorily redeemable preferred shares    90             90         90
Total liabilities                            28,868         26,983     8,768
Stockholders' Equity
Preferred stock:
  $0.0001 par value, authorized
  150,000,000; no shares issued or           -              -          -
  outstanding
Common stock:
  $0.0001 par value, authorized
  250,000,000,000 shares issued and
  outstanding 18,507,506,667 shares (June
  2012 - 14,671,182,339; 2011 -              1,852          1,467      1,333
  13,328,442,105)
Additional paid-in capital                   19,781         18,139     12,117
Stock subscriptions receivable               (500)          -          -
Retained Earnings (Deficit)                  (4,780)        (10,040)   (7,835)
Accumulated other comprehensive income       455            -          -
  Total stockholders' equity                 16,808         9,566      5,615
Total liabilities and stockholders' equity $ 45,676       $ 36,549   $ 14,383

ONE HORIZON GROUP, INC.
(formerly Intelligent Communication Enterprise
Corporation)
Consolidated Statements
of Operations
For the six months ended December 31, 2012 and 2011 and twelve months ended
June 30, 2012 and 2011
(in thousands, except
per share data)
                          Six months ended December   Twelve months ended June
                          31,                         30,
                          2012           2011         2012          2011
Revenue                 $ 11,709      $  668        $ 5,222       $ 2,726
Cost of revenue           121            15           80            207
Gross profit              11,588         653          5,142         2,519
Expenses:
    General and           4,022          1,263        4,570         1,911
    administrative
    Depreciation          73             66           884           321
    Amortization of       873            612          1,478         1,175
    intangibles
                          4,968          1,941        6,932         3,407
Income (loss) from        6,620          (1,288)      (1,790)       (888)
operations
Other income and
expense:
    Interest expense      (87)           (53)         (218)         (173)
    Foreign exchange      16             44           49            (2)
    Interest income       1              -            -             -
    Gain on acquisition   -              -            -             476
    of subsidiary
                          (70)           (9)          (169)         301
Income (loss) from
continuing operations     6,650          (1,297)      (1,959)       (587)
before income taxes
Income taxes (recovery)   1,169          -            69            (316)
Income from continuing    5,381          (1,297)      (2,028)       (271)
operations
Discontinued
operations:
    Loss from
    discontinued          (40)           -            -             -
    operations
    Loss on sale of
    discontinued          (81)           -            -             -
    businesses
Income from               (121)          -            -             -
discontinued operations
Net Income (Loss) for   $ 5,260       $  (1,297)    $ (2,028)     $ (271)
the period
Earnings per share
    Basic net income    $ 0.00        $  0.00       $ (0.00)      $ (0.00)
    per share
    Diluted net income  $ 0.00        $  0.00       $ (0.00)      $ (0.00)
    per share
Weighted average number
of shares outstanding
    Basic                 16,398,727     13,328,442   13,616,823    12,577,531
    Diluted               17,560,866     -            -             -

ONE HORIZON GROUP, INC.
(formerly Intelligent Communication Enterprise
Corporation)
Consolidated Statements of Cash Flows
For the six months ended December 31, 2012 and twelve months ended June 30,
2012 and 2011
(in thousands)
                                   Six months
                                   ended          Twelve months ended June 30,
                                   December 31,
                                   2012           2012           2011
Cash provided by (used in)
operating activities:
Operating activities:
 Net income (loss) for the       $ 5,260        $ (2,205)    $   (403)
 period
 Adjustment to reconcile net
 income (loss) for the period to
 net cash provided by (used in)
 operating activities:
     Depreciation of property      73             884            321
     and equipment
     Amortization of intangible    873            1,655          1,307
     assets
     Gain on acquisition of        -              -              (476)
     subsidiary
     Loss on disposal of           81             -              -
     discontinued businesses
     Options issued for services   22             6              6
     Warrants issued for           2              400            -
     services
     Common shares issued for      50             -              -
     services
     Common shares issued for      1,200          -              -
     services to related parties
     Changes in operating assets
     and liabilities net of
     effects of acquisitions:
     Accounts receivable           (8,395)        (20,734)       2,675
     Other assets                  (15)           182            730
     Accounts payable and          (5,153)        539            211
     accrued expenses
     Deferred revenue              4,000          16,400         1,600
     Income taxes                  1,169          (22)           (608)
 Net cash provided by (used in)    (833)          (2,895)        5,363
 operating activities
Cash used in investing
activities:
 Acquisition of intangible         (486)          (3,466)        (119)
 assets
 Acquisition of property and       -              (101)          (458)
 equipment
 Cash component upon acquisition   -              -              154
 Acquisition of subsidiary         -              -              (2,238)
 Acquisition of joint venture      55             (55)           -
 Net cash (used in) investing      (431)          (3,622)        (2,661)
 activities
Cash flow from financing
activities:
 Dividends paid                    -              -              (723)
 Increase (decrease) in            -              (980)          (2,071)
 long-term borrowing, net
 Cash proceeds from issuance of    502            5,750          -
 common stock
 Advances from related parties,    1,500          1,800          -
 net of repayment
 Net checks issued in excess of    -              (53)           92
 funds
 Net cash provided by (used in)    2,002          6,517          (2,702)
 financing activities
Increase (decrease) in cash        738            -              -
during the period
Cash (deficiency) at beginning     (39)           -              -
of the period
Cash at end of the period        $ 699          $ -          $   -

SOURCE One Horizon Group, Inc.

Website: http://www.onehorizongroup.com
 
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