Click here to close now.

Welcome!

Microsoft Cloud Authors: Liz McMillan, Elizabeth White, Pat Romanski, Jaynesh Shah, Carmen Gonzalez

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
Building low-cost wearable devices can enhance the quality of our lives. In his session at Internet of @ThingsExpo, Sai Yamanoor, Embedded Software Engineer at Altschool, provided an example of putting together a small keychain within a $50 budget that educates the user about the air quality in their surroundings. He also provided examples such as building a wearable device that provides transit or recreational information. He then reviewed the resources available to build wearable devices at home including open source hardware, the raw materials required and the options available to power s...
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
SYS-CON Events announced today that BMC 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. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust IT industrialization – allowing customers to provide amazing user experiences with optimized IT per...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Collecting data in the field and configuring multitudes of unique devices is a time-consuming, labor-intensive process that can stretch IT resources. Horan & Bird [H&B], Australia’s fifth-largest Solar Panel Installer, wanted to automate sensor data collection and monitoring from its solar panels and integrate the data with its business and marketing systems. After data was collected and structured, two major areas needed to be addressed: improving developer workflows and extending access to a business application to multiple users (multi-tenancy). Docker, a container technology, was used to ...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connected devices. In her session at @ThingsExpo, Sarah Cooper, VP Business of Development at M2Mi, will d...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, will describe how to revolutionize your architecture and...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are being generated, and that data is being processed into useful actions that can “command and control” thi...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
Thanks to widespread Internet adoption and more than 10 billion connected devices around the world, companies became more excited than ever about the Internet of Things in 2014. Add in the hype around Google Glass and the Nest Thermostat, and nearly every business, including those from traditionally low-tech industries, wanted in. But despite the buzz, some very real business questions emerged – mainly, not if a device can be connected, or even when, but why? Why does connecting to the cloud create greater value for the user? Why do connected features improve the overall experience? And why do...
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of 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. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An active participa...
Imagine a world where targeting, attribution, and analytics are just as intrinsic to the physical world as they currently are to display advertising. Advances in technologies and changes in consumer behavior have opened the door to a whole new category of personalized marketing experience based on direct interactions with products. The products themselves now have a voice. What will they say? Who will control it? And what does it take for brands to win in this new world? In his session at @ThingsExpo, Zack Bennett, Vice President of Customer Success at EVRYTHNG, will answer these questions a...