Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Greg O'Connor, Jason Bloomberg

News Feed Item

SearchCore Announces Third Quarter 2012 Financial Results

Revenues Increase 21% Year-over-Year; EBITDA of $1.3 million

NEWPORT BEACH, Calif., Nov. 19, 2012 /PRNewswire/ -- SearchCore, Inc. (OTCQX: SRER), a technology-based Internet marketing services company that connects consumers with brands, products and services, today announced its consolidated financial results for the third quarter ended September 30, 2012.

(Logo:  http://photos.prnewswire.com/prnh/20120106/LA31342LOGO)

Third Quarter 2012 Highlights

  • Revenues increased 21% year-over-year for the third quarter.
  • EBITDA was $1.3 million as compared to $1.0 million in the third quarter of 2011.
  • EBITDA margin was 30% as compared to 27% for the third quarter of 2011.
  • Operating income increased 38% year-over-year to $1.2 million for the third quarter.

Management Commentary
"We are pleased with our growth in revenues, EBITDA and operating income for the third quarter and believe these results reflect the value of our technology and the benefits of our online marketing services," said Jim Pakulis, CEO of SearchCore, Inc.  "We are continuing to make significant progress in identifying new internet-supported verticals in large, attractive and fragmented market niches where we can apply our proven business model to establish a leading network of successful web properties and finder sites. We look forward to sharing more details on the progress of our diversification efforts in the coming months."

Third Quarter 2012 Financial Results
SearchCore's revenues for the third quarter ended September 30, 2012 totaled $4.3 million, a year-over-year increase of 21% as compared with $3.6 million for the third quarter ended September 30, 2011.The increase in revenues was primarily due to increases in fees charged for the "listing packages" offered to customers, the number of customers and the variety of packages offered.

Total operating expenses were $3.1 million for the third quarter of 2012, or 72% of revenue, as compared with $2.7 million, or 76% of revenue for the third quarter of 2011. The increase in operating expenses was due to higher investments in research and development as well as increased salaries, benefits and professional fees in support of business expansion efforts.

EBITDA for the third quarter ended September 30, 2012 increased to $1.3 million, as compared to EBITDA of $1.0 million for the third quarter of 2011. EBITDA as a percentage of total revenue was 30% for the third quarter ended September 30, 2012, as compared to 27% for the third quarter of 2011. Operating income for the third quarter ended September 30, 2012 increased to $1.2 million, as compared to $0.9 million for the third quarter of 2011.  

Income from continuing operations increased to $1.0 million for the third quarter ended September 30, 2012, as compared to $0.6 million for the third quarter of 2011. Income from continuing operations for the third quarter of 2012 included a non-cash gain of $0.2 million on the change in fair value of earn-out liabilities.

Including the non-cash gain, net income increased to $1.0 million, or $0.02 per share, for the third quarter ended September 30, 2012, as compared to net income of $0.4 million, or $0.01 per share for the third quarter of 2011. Weighted average shares outstanding for the third quarter of 2012 and 2011 were 53.6 million and 83.1 million, respectively.

Balance Sheet Overview
At September 30, 2012, SearchCore had cash and cash equivalents of $0.8 million, total debt of $8.6 million and non-cash earn-out liability of $36,000, as compared with cash and cash equivalents of $1.5 million, total debt of $7.1 million and non-cash earn-out liability of $18.6 million at December 31, 2011.  As of September 30, 2012, the Company had 37,567,967 shares of common stock issued and outstanding.  

About SearchCore, Inc.
SearchCore, Inc. is a technology-based Internet marketing services company that offers customers an integrated suite of services including media, technology, marketing and information.  Founded in 2010, SearchCore is headquartered in Newport Beach, California.  The Company's common stock trades on the OTC Market's highest tier, OTCQX, under the ticker symbol "SRER."  www.SearchCore.com

Safe Harbor Notice
Certain statements contained herein are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995).  SearchCore, Inc. cautions that statements made in this news release constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management.  Actual results could differ materially from current projections or implied results.  SearchCore, Inc. undertakes no obligation to revise these statements following the date of this news release.

 

SEARCHCORE, INC.

Condensed Consolidated Statements of Operations (Unaudited)








Three Months Ended


Nine Months Ended



September 30,


September 30,


September 30,


September 30,



2012

2011


2012

2011



























REVENUE













Sales


$

4,334,682


$

3,586,729


$

12,172,350


$

8,586,519














Total revenue



4,334,682



3,586,729



12,172,350



8,586,519














OPERATING EXPENSES













Cost of sales



290,049



40,239



722,462



176,020

Selling, general and administrative expenses



2,839,430



2,671,008



8,589,514



5,848,491














Total operating expenses



3,129,479



2,711,247



9,311,976



6,024,511














Operating Income (loss)



1,205,203



875,482



2,860,374



2,562,008














Other Income (Expense)













Gain on change in fair value of earn-out liabilities



200,859





5,954,030



Interest income



587



35



587



214

Interest expense



(11,017)





(36,786)
















Total other income



190,429



35



5,917,831



214



























INCOME (LOSS) FROM CONTINUING

OPERATIONS BEFORE INCOME TAXES



1,395,632



875,517



8,778,205



2,562,222














Provision for Income Taxes



353,000



324,000



721,000



853,000

INCOME (LOSS) FROM CONTINUING OPERATIONS



1,042,632



551,517



8,057,205



1,709,222














(Loss) income from discontinued operations, net of $73,000 and zero tax benefit for the nine months ended September 30, 2012 and 2011, respectively, and net of $3,000 and zero tax benefit for the three months ended September 30, 2012 and 2011, respectively.



(3,505)



(117,282)



(108,255)



(425,491)














NET INCOME (LOSS)


$

1,039,127


$

434,235


$

7,948,950


$

1,283,731














Income (loss) per share, Basic and Diluted













Income (loss) from continuing operations


$

0.02


$

0.01


$

0.11


$

0.02

Income (loss) from discontinued operations



0.00



(0.00)



(0.00)



(0.01)

Total income (loss) per share


$

0.02


$

0.01


$

0.11


$

0.02














WEIGHTED AVERAGE COMMON SHARES OUTSTANDING



53,572,158



83,140,256



72,236,822



83,116,446














 

SEARCHCORE, INC.

Condensed Consolidated Balance Sheets






September 30,


December 31,


2012


2011


(Unaudited)


(Audited)

ASSETS






CURRENT ASSETS






Cash and cash equivalents

$

812,232


$

1,512,590

Accounts receivable


127,671



206,091

Inventory




9,830

Other current assets


966,667



379,860

Current assets - discontinued operations


151,007



51,795

TOTAL CURRENT ASSETS

$

2,057,577


$

2,160,166







Property and equipment, net


414,679



430,041

Intangible assets:






Domain names


1,008,572



114,119

Domain name - Marijuana.com, net


4,243,754



4,250,000

Trademarks


87,832



Web software, net


715,615



501,343

Goodwill


486,403



486,403

Other assets


82,332



82,332

Other assets - discontinued operations




51,976

TOTAL ASSETS

$

9,096,764


$

8,076,380







LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)












CURRENT LIABILITIES












Accounts payable

$

87,219


$

50,632

Accrued liabilities


4,186,961



759,312

Notes payable


733,901



708,901

Notes payable - related party


2,659,091



1,130,000

Current liabilities - discontinued operations


125,000



243,017







TOTAL CURRENT LIABILITIES

$

7,792,172


$

2,891,862







LONG TERM LIABILITIES












Other accrued liabilities


2,067,001



155,025

Notes payable


3,334,756



3,416,099

Notes payable - related party


1,945,834



1,800,000

Earn-out provisions


36,426



18,567,223







TOTAL LONG TERM LIABILITIES


7,384,017



23,938,347







TOTAL LIABILITIES

$

15,176,189


$

26,830,209







STOCKHOLDERS' EQUITY (DEFICIT)












Preferred stock, $0.001 par value: 20,000,000 shares authorized;






zero shares issued and outstanding at September 30, 2012;






zero shares issued and outstanding at December 31, 2011;




Common stock, $0.001 par value: 200,000,000 shares authorized;






89,340,256 shares issued and outstanding at September 30, 2012,






83,140,256 shares issued and outstanding at December 31, 2011;


89,340



83,140

Treasury stock;






51,772,289 shares issued and outstanding at September 30, 2012,






zero shares issued and outstanding at December 31, 2011;


(51,772)



-

Paid-in capital


(11,194,018)



(15,965,044)

Retained earnings (accumulated deficit)


5,077,025



(2,871,925)







TOTAL STOCKHOLDERS' EQUITY (DEFICIT)


(6,079,425)



(18,753,829)







TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

$

9,096,764


$

8,076,380

 

SEARCHCORE, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)




Nine Months Ended


September 30,


September 30,


2012


2011

Cash flows from operating activities:






Net income

$

7,948,950


$

1,283,731

Adjustments to reconcile net income to net cash used in operating activities:






Depreciation


87,834



50,703

Amortization


138,306



110,755

Stock-based compensation


125,000



Gain on change in fair value of earn-out liabilities


(5,954,030)




Changes in operating assets and liabilities:






Accounts receivable


78,420



(197,140)

Inventories


9,830



Prepaid expenses and deposits


(811,019)



569,176

Other assets


51,976



Accounts payable and accrued liabilities


414,882



96,781













          Net cash provided by operating activities


2,090,149



1,914,006







Cash flows from investing activities:






  Purchases of property and equipment


(72,472)



(471,949)

  Purchases of intangible assets


(616,617)



(148,518)







          Net cash used in investing activities


(689,089)



(620,467)







Cash flows from financing activities:






  Payments on note payable


(506,343)



  Payments on note payable - related party


(1,595,075)



(1,295,000)







          Net cash used in financing activities


(2,101,418)



(1,295,000)







Net (decrease) increase in cash and cash equivalents


(700,358)



(1,461)







Cash and cash equivalents at beginning of period


1,512,590



1,388,574







Cash and cash equivalents at end of period

$

812,232


$

1,387,113







Non-cash investing and financing activity:












Shares issued pursuant to Revyv acquisition

$


$

1,000,000

Shares issued pursuant to MMJMenu acquisition

$

262,000


$

Shares issued pursuant to WeedMaps Earn-outs

$

9,120,000


$

SOURCE SearchCore, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
BroadSoft on Tuesday announced that it is a recipient of the 2014 Frost & Sullivan Market Leadership Award in the Hosted/Cloud Internet Protocol (IP) Telephony market for Latin America. According to Frost & Sullivan market research, the Latin America (LATAM) hosted/cloud Internet Protocol (IP) telephony market, including integrated unified communications and collaboration (UC&C) applications, is currently experiencing a rapid growth trajectory and is expected to exhibit a tenfold rise in annual revenues in the 2013-2020 period. With more than 600 cloud deployments internationally, BroadSoft w...
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
Sonus Networks introduced the Sonus WebRTC Services Solution, a virtualized Web Real-Time Communications (WebRTC) offer, purpose-built for the Cloud. The WebRTC Services Solution provides signaling from WebRTC-to-WebRTC applications and interworking from WebRTC-to-Session Initiation Protocol (SIP), delivering advanced real-time communications capabilities on mobile applications and on websites, which are accessible via a browser.
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are configurable to any form factor or custom configuration. AIC leads the industry with nearly 20 years of ...
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements around Unified Networks, Cloud Computing strategies, Virtualization around Software defined Data Ce...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Telecommunications Corporation, a facilities-based international carrier licensed by t...
There are lots of challenges in IoT around secure, scalable and business friendly infrastructure for enterprises. For large corporations, IoT implementations are one of the top priorities of the decade. All industries are seeing a competitive need to sustain by investing in IoT initiatives. The value addition comes from improved customer service, innovative product and additional revenue streams. The data from these IP-connected devices can be leveraged for a variety of business applications as well as responsive action controls. The various architectural building blocks of an IoT ...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!