LiveDeal Announces Financial Results for Three and Six Months Ended March 31, 2013

LiveDeal Announces Financial Results for Three and Six Months Ended March 31, 
2013 
LAS VEGAS, NV -- (Marketwired) -- 05/15/13 --  LiveDeal, Inc.
(NASDAQ: LIVE) 


 
--  Gross margins improved by approximately 8.1% in first six months of
    fiscal 2013
--  Company makes several strategic investments to provide foundation for
    future growth
--  Working capital improves by $373,000 as current liabilities decrease
    by $420,000
--  Stockholders' equity increases by $408,000

  
LiveDeal, Inc. (NASDAQ: LIVE), a provider of marketing solutions that
boost customer awareness and merchant visibility on the Internet,
announced today its financial results for the three- and six-month
periods that ended on March 31, 2013. The Company's results included
the following: 


 
--  Net revenues were $555,084 and $1,127,619 for the three and six months
    ended March 31, 2013, respectively, as compared to net revenues of
    $821,701 and $1,673,114, respectively, for the three and six months
    ended March 31, 2012. Net revenues decreased primarily due to the
    decrease in revenues generated by legacy products and services that
    the Company has discontinued in connection with pursuing its new
    business strategy.
    
    
--  Costs of services were 21.1% and 19.5% of net revenues for the three
    and six months ended March 31, 2013, respectively, as compared to
    costs of services of 27.6% of net revenues for the three and six
    months ended March 31, 2012. The decline in costs of services was
    primarily due to decreased costs associated with the decline in the
    number of our legacy customers and the provisioning of fulfillment
    services, which are now performed by the Company rather than outside
    vendors. Gross margins improved by approximately 6.5% and 8.1%,
    respectively, during the three and six month periods ended March 31,
    2013, as compared to the Company's results in the prior year periods.
    
    
--  General and administrative expenses were $1,231,531 and $1,993,907 for
    the three and six months ended March 31, 2013, respectively, as
    compared to general and administrative expenses of $821,434 and
    $1,588,242 for the three and six months ended March 31, 2012. General
    and administrative expe
nses increased in fiscal 2013 as a result of
    the Company investing in personnel for its new call center and making
    other strategic investments to provide a foundation for future growth
    as LiveDeal pursues its new business strategy and launches its new
    products and services.
    
    
--  Interest expense was $2,541,141 and $3,291,695 for the three and six
    months ended March 31, 2013, respectively, as compared to interest
    expense of $40,612 and $84,556 for the three and six months ended
    March 31, 2012. Substantially all of the interest expense incurred by
    the Company during fiscal 2013 was related to the issuance of
    convertible promissory notes by LiveDeal and subsequent conversion of
    those notes into shares of the Company's common stock. Such
    transactions resulted in interest expense under generally accepted
    accounting principles (GAAP), but that was entirely a non-cash expense
    and did not require LiveDeal to make any actual interest payments
    under the notes.
    
    
--  Net loss was $3,215,017 and $4,275,526 for the three and six months
    ended March 31, 2013, respectively, as compared to net loss of
    $258,993 and $450,631 for the three and six months ended March 31,
    2012. Most of the Company's net loss in the fiscal 2013 periods was
    attributable to the non-cash interest expenses described above.
    
    
--  As a result of the Company's operating results and financing
    transactions during the six months ended March 31, 2013:
    --  Cash and cash equivalents remained relatively stable at $1,297,275
        as of March 31, 2013, as compared to $1,305,785 as of September
        30, 2012.
        
        
    --  Net working capital improved to $743,694 as of March 31, 2013, as
        compared to $370,780 as of September 30, 2012, primarily because
        the Company's accounts payable decreased from $1,017,363 to
        $597,336.
        
        
    --  Stockholders' equity increased to $3,237,245 as of March 31, 2013,
        as compared to $2,829,254 as of September 30, 2012.

  
"At LiveDeal, we are continuing to work hard to implement the Company's
promising new business strategy. In light of that transition process
and the significant investments we made to position the Company for
future growth and success, we were pleased with our results for the
period that ended on March 31, 2013," said Jon Isaac, LiveDeal's
President and Chief Executive Officer. 
For more information, refer to the Company's Quarterly Report on Form
10-Q that was filed earlier today with the Securities and Exchange
Commission and is available at www.sec.gov. 
About LiveDeal, Inc.  
LiveDeal, Inc. provides marketing solutions that boost customer
awareness and merchant visibility on the Internet. LiveDeal recently
launched two new business lines under new management after a period
of re-evaluating the company's sales program, products, distribution
methods, and vendor programs. In November 2012, LiveDeal commenced
the sale of marketing tools that help local businesses manage their
online presence under the company's Velocity Local(TM) brand, which
LiveDeal refers to as online presence marketing. Previously, in
August 2012, LiveDeal commenced sourcing local deal and activities to
strategic publishing partners under its LiveDeal(R) brand, which the
company refers to as promotional marketing. LiveDeal continues to
actively develop, revise, and evaluate these products and services
and its marketing strategies and procedures. For more information,
visit www.livedeal.com. 
Forward-Looking and Cautionary Statements  
This press release contains "forward-looking" statements that are
based on present circumstances and on LiveDeal's predictions with
respect to events that have not occurred, that may not occur, or that
may occur with different consequences and timing than those now
assumed or anticipated. Such forward-looking statements, including
any statements regarding the plans and objectives of management for
future operations or products, the market acceptance or future
success of our products, and our future financial performance, are
not guarantees of future performance or results and involve risks and
uncertainties that could cause actual events or results to differ
materially from the events or results described in the
forward-looking statements. 
Forward-looking statements are made only as of the date of this
release and LiveDeal does not undertake and specifically declines any
obligation to update any forward-looking statements. Readers should
not place undue reliance on these forward-looking statements. 
Tim Matula
Investor Relations
800.977.6038
Tmatula@LiveDeal.com 
 
 
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