LiveDeal, Inc. Reports 2012 First Quarter Financial Results

LAS VEGAS--([ BUSINESS WIRE ])--LiveDeal, Inc. (NASDAQ: LIVE), a provider of web-based local customer acquisition and related products for small businesses, today reported financial results for its first fiscal quarter ended December 31, 2011.

Net loss for the fiscal 2012 first quarter decreased 89%, or $1,538,756, to $191,638 from $1,730,394 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to the decrease in the companyas cost of services and general and administrative expenses described below. Gross profit for the fiscal 2012 first quarter increased 515%, or $515,549, to $615,594 from $100,045 reported for the fiscal 2011 first quarter, which is primarily ascribable to the decrease in the companyas cost of services described below.

Net revenues for the fiscal 2012 first quarter were $851,413, a decrease of $143,209 (14%) from $994,622 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to a pause in the companyas sales efforts since July 2011 during which time the company evaluated new sales programs, improved its marketing and fulfillment services, and implemented various cost reductions. The companyas cost of services for the fiscal 2012 first quarter was $235,819, a $658,758 (74%) decrease from $894,577 reported for the fiscal 2011 first quarter. The decrease was primarily ascribable to decreased fulfillment costs as the company took over fulfillment activities from third party vendors. General and administrative expenses for the fiscal 2012 first quarter were $766,808, a decrease of $1,205,761 (61%) from $1,972,569 reported for the fiscal 2011 first quarter. The decrease was primarily attributable to decreased employee compensation and professional fee expenses.

Commenting on the results, Jon Isaac, LiveDealas newly appointed President and CEO, stated, aWe are very encouraged with our recent financial results, especially since total operating losses have declined substantially due to the closing of unprofitable product lines, reductions in cost of services, and reductions in general and administrative expenses. We expect that continued operational improvements, along with top-line growth, can lead LiveDeal, Inc. toward profitability this fiscal year.a


LiveDeal, Inc. and Subsidiaries Condensed Consolidated Balance Sheet (Unaudited)

		December 31, 2011			September 30, 2011
Assets
Cash and cash equivalents	$	2,177,605		$	244,470
Accounts receivable, net		556,350			654,856
Prepaid expenses and other current assets		73,023			113,323
Total current assets		2,806,978			1,012,649
Accounts receivable, long term portion, net		382,365			371,438
Property and equipment, net		131,111			171,201
Deposits and other assets		29,007			31,007
Intangible assets, net		1,193,145			1,222,334
Total assets	$	4,542,606		$	2,808,629

Liabilities and Stockholders' Equity
Liabilities:
Accounts payable	$	620,938		$	600,908
Accrued liabilities		398,533			424,595
Notes payable		900,000			1,000,000
Current portion of capital lease obligation		21,224			36,992
Total current liabilities		1,940,695			2,062,495
Long term portion of capital lease obligation		a"			a"
Total liabilities		1,940,695			2,062,495

Commitments and contingencies

Stockholders' Equity
Series E convertible preferred stock, $0.001 par value		10,866			10,866
Common stock, $0.001 par value		2,338			698
Treasury stock (4,252 shares carried at cost)		a"			(70,923	)
Paid in capital		22,788,413			20,813,082
Accumulated deficit		(20,199,706	)		(20,007,589	)
Total stockholders' equity		2,601,911			746,134

Total liabilities and stockholders' equity	$	4,542,606		$	2,808,629


LiveDeal, Inc. and Subsidiaries Condensed Statements of Operations (Unaudited)

		Three Months Ended December 31,
		2011			2010
Net revenues	$	851,413		$	994,622
Cost of services		235,819			894,577
Gross profit		615,594			100,045

Operating Expenses
General and administrative expenses		766,808			1,972,569
Sales and marketing expenses		60			13,592
Total operating expenses		766,868			1,986,161
Operating loss		(151,274	)		(1,886,116	)

Other Income (expense)
Interest income (expense), net		(43,944	)		1,562
Other income (expense)		a"			a"
Total other income (expense)		(43,944	)		1,562

Loss before income taxes		(195,218	)		(1,884,554	)
Income tax provision (benefit)		a"			a"
Loss from continuing operations		(195,218	)		(1,884,554	)

Discontinued Operations
Income from discontinued component, including disposal costs		3,580			154,160
Income tax provision (benefit)		a"			a"
Income from discontinued operations		3,580			154,160

Net loss	$	(191,638	)	$	(1,730,394	)

Earnings per share - basic and diluted¹:
Loss from continuing operations	$	(0.18	)	$	(2.96	)
Discontinued operations		0.00			0.24
Net loss	$	(0.18	)	$	(2.72	)

Weighted average common shares outstanding
Basic		1,043,960			636,828
Diluted		1,043,960			636,828

¹ Certain amounts may not total due to rounding of individual components.


LiveDeal, Inc. and Subsidiaries Condensed Statements of Cash Flows (Unaudited)

		Three Months Ended December 31,
		2011			2010
Cash Flows From Operating Activities
Net loss	$	(191,638	)	$	(1,730,394	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization		69,279			205,477
Stock based compensation expense		47,894			23,499
Amortization of deferred stock compensation		a"			17,885
Provision for uncollectible accounts		14,181			206,990
Changes in Assets and Liabilities
Accounts receivable		73,398			(108,988	)
Prepaid expenses and other current assets		40,300			126,441
Deposits and other assets		2,000			a"
Accounts payable		20,030			66,263
Accrued liabilities		(26,541	)		(267,643	)

Net cash provided by/(used in) operating activities		48,903			(1,460,470	)

Cash Flows From Investing Activities
Expenditures for intangible assets		a"			a"
Purchases of property and equipment		a"			a"

Net cash provided by/(used in) investing activities		a"			a"

Cash Flows From Financing Activities
Principal repayments on capital lease obligations		(15,768	)		(15,203	)
Issuance of common stock for cash		2,000,000			100,000
Payments on notes payable		(100,000	)		a"

Net cash provided by financing activities		1,884,232			84,797

Increase/(Decrease) In Cash And Cash Equivalents		1,933,135			(1,375,673	)

Cash And Cash Equivalents, beginning of period		244,470			3,227,374

Cash And Cash Equivalents, end of period	$	2,177,605		$	1,851,701

Supplemental cash flow disclosures
Noncash financing and investing activities
Accrued and unpaid dividends	$	479		$	479

Interest paid	$	43,987		$	832

Income tax paid (received)	$	a"		$	a"

For more information about LiveDealas fiscal first quarter results, including the notes accompanying the foregoing condensed consolidated financial statements, please review the companyas quarterly report on Form 10-Q filed today, together with its annual report on Form 10-K for the fiscal year ended September 30, 2011. Both reports can be accessed by visiting the companyas website at [ www.livedeal.com ] or the SECas website at [ www.sec.gov. ]

About LiveDeal, Inc.

LiveDeal, Inc. provides local customer acquisition services and related products for small businesses to deliver an affordable way for businesses to extend their marketing reach to target customers via the Internet. For more information, visit [ www.livedeal.com ].

Forward-Looking and Cautionary Statements

This news release contains forward-looking statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this news release may not occur. Generally, these statements relate to LiveDealas business plans or strategies, projected or anticipated benefits or other consequences of LiveDealas plans or strategies, financing plans, projected or anticipated costs of and benefits from acquisitions that LiveDeal may make, or projections involving anticipated revenues, earnings, costs, expenses, or other aspects of LiveDealas operating results or financial position, and the outcome of any contingencies. Any such forward-looking statements are based on current expectations, estimates and projections of management. LiveDeal intends for these forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements. Words such as amay,a awill,a aexpect,a abelieve,a aanticipate,a aproject,a aplan,a aintend,a aestimate,a and acontinue,a and their opposites and similar expressions are intended to identify forward-looking statements.The forward-looking statements contained in this press release include, but are not limited to, statements regarding the Companyas future profitability.LiveDeal cautions you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond LiveDealas control, which may influence the accuracy of the statements and the projections upon which the statements are based.Factors that could cause actual results to differ materially from those set forth or implied by any forward-looking statement include, but are not limited to, risks and uncertainties discussed in LiveDealas reports filed with the Securities and Exchange Commission, including, but not limited to, LiveDealas Annual Report or Form 10-K for the fiscal year ended September 30, 2011 and other filings. Copies of these filings are available at the SECas website at [ www.sec.gov ].

Any one or more of these uncertainties, risks and other influences could materially affect LiveDealas results of operations and whether the forward-looking statements made by LiveDeal ultimately prove to be accurate.LiveDealas actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements.Forward-looking statements speak only as of the date the statement was made. LiveDeal undertakes no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.

N@N

LiveDeal, Inc. Reports 2012 First Quarter Financial Results