Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

News Feed Item

One Horizon Group Announces First Quarter 2014 Results

BAAR, SWITZERLAND -- (Marketwired) -- 05/22/14 -- One Horizon Group, Inc. (OTCQB: OHGI) ("One Horizon" or the "Company"), which develops and licenses bandwidth efficient mobile voice over Internet Protocol ("VoIP") platform for telecommunication company-supported smart phones, today announced financial results for the three months ended March 31, 2014.

One Horizon developed a proprietary VoIP platform ("Horizon Platform") that enables wireless carriers around the world to provide customized and optimized voice and data services over any mobile, fixed and satellite network through an easy to install mobile app. One Horizon's SmartPacket™ technology underlying the Horizon Platform enables greater bandwidth efficiency by reducing IP overhead and optimizing packet flow, delivery and playback. One Horizon targets emerging markets with high population densities, high penetration of mobile phones, congested mobile networks, and high growth in smartphone adoption. Mobile operators pay an annual software licensing fee to the Company for each active subscriber using the white-label VoIP service powered by the Horizon Platform. The Company continues to expand its revenue sources to mobile advertising and mobile payments by introducing new value-added services and features.

Highlights:

  • Q1 2014 revenues were $1.2 million vs. $1.9 million in Q1 2013
  • Expanded software development team in Ireland and China
  • Completed development of the Horizon billing system
  • Chongqing Leixin Network Technology ("Leixin") JV commenced initial infrastructure rollout in five cities in China

"Our software is installed on our telecom partners systems and we are ready to begin monetizing our collective customer base," began Brian Collins, Founder and CTO of One Horizon. "After years of hard work and customized development of our VoIP software on complex telco networks, we are now poised to launch our applications on a widespread basis with our customers and their subscribers. Over-the-Top ("OTT") applications are in the spotlight now and while many Asian telcos have already taken steps to combat them, the US and Europe are following suit. Our technology is a perfect fit to this developing opportunity as telcos take more control of their subscribers by providing carrier-branded, high-quality VoIP and messaging services. We expect 2014 to be a break out year for One Horizon and we are excited about the prospects in our pipeline."

Financial Results for the Period Ended March 31, 2014

Revenues for the three months ended March 31, 2014 were approximately $1.2 million. Overall contract value for contracts signed from inception through March 31, 2014 was $62.4 million, of which only $8.6 million was recognized through March 31, 2014. Contracts with Tier 1 entities typically require agreed-upon fixed payments over periods extending beyond one year whereas contracts with Tier 2 entities have long-term variable payment terms based on customer usage. One Horizon Group recognizes income when the installments on the contracts are due to and invoiced by the Company.

Cost of goods sold and operating expenses for the three months ended March 31, 2014 were $0.5 million and $1.2 million. Excluding non-cash depreciation and amortization and stock-based compensation expenses, operating income was $0.2 million for the first quarter of 2014.

The Company recorded a net loss of $0.4 million and net loss per share of $0.02 for the three months ended March 31, 2014. The weighted average shares outstanding increased from 31.2 million during the three months ended March 31, 2013 to 32.9 million during the same period in 2014 due to the private placement completed on February 18, 2014.

Financial Condition

The Company had $21.8 million of assets and $16.3 million shareholders' equity at March 31, 2014. Cash outflows from operations were $0.8 million for the three months ended March 31, 2014.

Business Updates

One Horizon's customer in the Philippines, SMART is currently rolling out its LinkPlus™, "SMART"-branded VoIP service to millions of ex-pat Filipinos living and working throughout Asia. LinkPlus™ is an app that can be downloaded onto any smartphone and used over any data or WiFi network to connect with any SMART subscriber or SMART's LinkPlus™ app user.

The Company continues to expand its software development team, adding a new senior software development at its recently opened R&D office in Limerick, Ireland and four new junior software developments in China through its Leixin JV. These new additions will further expand its software development capabilities.

During the first quarter of 2014, Leixin commenced the first phase of its infrastructure rollout in five cities in China: Tianjin, Beijing, Chongqing, Changchun and Shijiazhuang. These initial five locations will connect the 95131 to the national telephone network to commence the commissioning of the Leixin VoIP service in China.

One Horizon will provide updates in press on its developments in China and the Philippines in the near term.

Conference Call

Management will host a conference call at 8:00 a.m. ET on May 22, 2014 to discuss its first quarter 2014 earnings results.

Date: Thursday, May 22, 2014
Time: 8:00 am ET
US Dial-in: 1-877-407-0784
International Dial-in: 1-201-689-8560
Conference ID: 13582845
Webcast: http://public.viavid.com/index.php?id=109287

Please dial in at least 10 minutes before the start of the call to ensure timely participation. A playback of the call will be available until May 29, 2014 at 11:59pm ET. To listen, call 1-877-870-5176 within the United States or 1-858-384-5517 when calling internationally.

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 GmbH, Baar, which develops and markets one of the world's most bandwidth-efficient mobile voice over Internet Protocol (VoIP) platforms for smartphones, and also offers a range of other optimized data applications including messaging and mobile advertising. Horizon Globex GmbH is an ISO 9001 and ISO 20000-1 certified company. The Company has operations in Switzerland, the United Kingdom, China, India, Singapore, Hong Kong and Ireland. 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 the 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.



                           ONE HORIZON GROUP, INC.
                    Condensed Consolidated Balance Sheets
                    March 31, 2014 and December 31, 2013
                      (in thousands, except share data)
                                 (unaudited)

                                                     March 31, December 31,
                                                       2014        2013
                                                    ---------- ------------
Assets

Current assets:
Cash                                                $      789 $      2,070
Accounts receivable                                      7,214        7,264
Other assets                                               751          139
                                                    ---------- ------------
Total current assets                                     8,754        9,473

Property and equipment, net                                315          315
Intangible assets, net                                  12,671       12,760
Investment                                                  23           23
                                                    ---------- ------------
Total assets                                        $   21,763 $     22,571
                                                    ========== ============

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable                                    $      371 $        661
Accrued expenses                                           865          964
Accrued compensation                                        48           59
Income taxes                                                94          117
Amounts due to related parties                           3,500        3,500
Current portion of long-term debt                           66           65
                                                    ---------- ------------
Total current liabilities                                4,944        5,366

Long-term liabilities
Long term debt, net of current portion                     168          184
Deferred income taxes                                      289          445
Mandatorily redeemable preferred shares                     90           90
                                                    ---------- ------------
Total liabilities                                        5,491        6,085


Equity
Preferred stock:
$0.0001 par value, authorized 50,000,000;
no shares issued or outstanding
Common stock:
$0.0001 par value, authorized 200,000,000 shares
issued and outstanding 32,935,069 shares (December
 2013 32,920,069)                                            3            3
Additional paid-in capital                              28,463       28,269
Retained Earnings (Deficit)                            (13,707)     (13,319)
Accumulated other comprehensive income                   1,160        1,137
                                                    ---------- ------------
Total One Horizon Group, Inc., stockholders' equity     15,919       16,090
Non-controlling interest                                   353          396
                                                    ---------- ------------
Total Equity                                            16,272       16,486
                                                    ---------- ------------
Total liabilities and equity                        $   21,763 $     22,571
                                                    ========== ============




               Condensed Consolidated Statements of Operations
             For the three months ended March 31, 2014 and 2013
                    (in thousands, except per share data)
                                 (unaudited)

                                                             2014     2013
                                                           -------  -------


Revenue                                                    $ 1,185  $ 1,919

Cost of revenue:
  Hardware                                                      12        7
  Amortization of software development costs                   486      446
                                                           -------  -------
                                                               498      453

Gross margin                                                   687    1,466

Expenses:
  General and administrative                                 1,178    1,473
  Depreciation                                                  48       36
                                                           -------  -------
                                                             1,226    1,509
                                                           -------  -------

Loss from operations                                          (539)     (43)

Other income and expense:
  Interest expense                                             (40)     (55)
  Foreign exchange                                              (9)       -
  Interest income                                                1        -
                                                           -------  -------
                                                               (48)     (55)
                                                           -------  -------

Income (Loss) before income taxes                             (587)     (98)

Income taxes (recovery) - deferred                            (156)       -
                                                           -------  -------

Net (Loss) for the period                                     (431)     (98)

Net (Loss) attributable to non-controlling interest            (43)       -

                                                           -------  -------

Net Income (Loss) for the period attributable to One
 Horizon Group, Inc.                                       $  (388) $   (98)
                                                           =======  =======

Earnings (Loss) per share

  Basic and diluted net income (loss) per share            $ (0.02) $ (0.00)


Weighted average number of shares outstanding
  Basic and diluted                                         32,934   31,213
                                                           =======  =======
                                                             2014     2013
                                                           -------  -------

Net (loss)                                                 $  (431) $   (98)
Other comprehensive income:
Foreign currency translation adjustment gain (loss)             23      (63)
                                                           -------  -------
                                                              (408)    (161)
Comprehensive loss attributable to the non-controlling
 interest                                                       43
                                                           -------  -------

Total comprehensive income (loss)                          $  (365) $  (161)
                                                           =======  =======




                           ONE HORIZON GROUP, INC.
               Condensed Consolidated Statements of Cash Flows
             For the three months ended March 31, 2014 and 2013
                               (in thousands)
                                 (unaudited)

                                                             2014     2013
                                                           -------  -------

Cash provided by (used in) operating activities:

Operating activities:
Net loss for the period                                    $  (388) $   (98)

Adjustment to reconcile net loss for the period to
net cash provided by (used in) operating activities:
Depreciation of property and equipment                          48       36
Amortization of intangible assets                              486      446
Common shares issued for services received                      65        -
Options issued for services                                    129        -
  Deferred income taxes benefit                               (156)       -
Net loss attributable to non-controlling interest              (43)       -
Changes in operating assets and liabilities:
  Accounts receivable                                           50     (931)
  Other assets                                                (612)    (120)
  Accounts payable and accrued expenses                       (400)     197
                                                           -------  -------

Net cash (used in) operating activities                       (821)    (470)
                                                           -------  -------

Cash flows from investing activities:

Acquisition of intangible assets                              (350)    (245)
Acquisition of property and equipment                          (48)     (12)
                                                           -------  -------

Net cash (used in) investing activities                       (398)    (257)
                                                           -------  -------

Cash flows from financing activities:


Increase (decrease) in long-term borrowing, net                (15)     (12)
Advances from related parties, net of repayment                  -      500
                                                           -------  -------

Net cash provided by (used in) financing activities            (15)     488
                                                           -------  -------


Increase (decrease) in cash during the period               (1,234)    (239)
Foreign exchange effect on cash                                (47)       -

Cash at beginning of the period                              2,070      699
                                                           -------  -------

Cash at end of the period                                  $   789  $   460
                                                           =======  =======

Contact:

MZ North America
John Mattio
SVP
Tel: +1-212-301-7130
Email: Email Contact
www.mzgroup.us

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.