Home > News & Resources > Press Releases

LiveWorld Announces Fourth Quarter and Fiscal 2007 Financial Results

Company Sees Double-Digit Growth Year-Over-Year in Diversifying its Revenue Base

San Jose, CA and London, March 26, 2008 – LiveWorld, Inc. (OTCBB: LVWD.OB), a leading online social network marketing agency, today announced financial results for the fourth quarter and the full year ended December 31, 2007. For fiscal 2007, LiveWorld reported revenues of approximately $10.9 million, up from approximately $9.8 million reported for fiscal 2006, or growth of 10% year-over-year. This includes 89% year-over-year growth excluding revenues from the company's two largest clients, AOL US and eBay. The Company continued to demonstrate progress in winning new clients through the expanded sales of its flagship private-label social network solution, the LiveWorld Community Center.

"We're pleased with our substantial growth in diversifying our revenue base," said Peter Friedman, Chairman & CEO of LiveWorld. "The growth of new business beyond our largest two clients is on target with our strategy and reflects that social network marketing and branded communities are becoming mainline marketing venues for leading brands."

The Company reported in its SEC filing, that new clients for the past year include: The Aspen Institute, BBC Worldwide, The Campbell Soup Company (additional brands), The Hillary Clinton For President Campaign, Kraft Foods (additional brands and country), HSBC, LeapFrog, Marriott, Mattel, MindShare, Neutrogena, Scientific American, Sony Ericsson, and TJX.

Revenues: For the fourth quarter of 2007, LiveWorld reported revenues of approximately $3.0 million, up from approximately $2.9 million reported for the fourth quarter 2006. This includes fourth quarter 41% year-over-year growth excluding revenues from the company's two largest clients, AOL US and eBay. Total revenues for the fourth quarter grew approximately 6%, as compared to the $2.8 million reported in the third quarter of 2007.

Cash Used in Operations: For fiscal 2007 the Company used cash in operating activities of approximately $906,000. This reduction in cash generation is a result of the expansion of personnel to develop sales opportunities, as well as, delivering on client projects and new development work. Additionally the Company saw its deferred revenues increase by approximately $200,000 from December 31, 2006 to a total of $727,000 as of December 31, 2007.

Net Loss Including the Impact of Non-Cash Stock Expense: The net loss for fiscal 2007, including non-cash expense was approximately $2.4 million, or a loss of $0.08 per share. The net loss included non-cash expenses of approximately $1.1 million. This compares to a net loss for fiscal 2006 of approximately $263,000, or a loss of $0.01 per share. The net loss included non-cash expenses of $639,000 for the year ended December 31, 2006.

Cash: The Company ended fiscal 2007 with approximately $2.0 million in cash and cash equivalents. The Company stated that it has demonstrated historically over multiple years that it can manage its business to be net cash positive from operating activities. Cash flow in 2007 was consistent with the Company's intended goal and strategy to use cash to invest in a foundation for business growth. Given the current state of the economy and stock market the Company intends to more conservatively manage cash flow in 2008. Cash flow from operations for 2008 may or may not be net positive and will vary from quarter to quarter. However the Company intends to manage the cash flow such that cash flow from operations and from its current cash balance is more than enough to sustain the business.

About LiveWorld, Inc.

LiveWorld (www.liveworld.com) is the leader in the social network marketing industry, creating innovative online communities that help clients build loyalty, brand awareness, customer engagement, customer care and business intelligence venues. The company provides Fortune 1000 clients overall social network marketing strategy, brand consulting, community management, design, development and hosting of private-label social network sites, and moderation services for these online communities, as well as for any user content site. Applications and moderation services include rich profiles, forums, blogs, photos, user video, customer support forums, groups and interactive webcasts.

With 20 years of experience, an extensive applications hosting platform, and a track record of delivering over 1 million hours of moderation services, LiveWorld offers its clients a team of experienced community managers and moderators who oversee activity and user content online. LiveWorld deploys its services in more than 60 country-language combinations, and is the trusted partner of leading brands worldwide, including: A&E, The Campbell Soup Company, The Coca Cola Company, eBay, HBO, The Hillary Clinton For President Campaign, Kraft Foods, LeapFrog, MINI Cooper USA, Scientific American, QVC and many others.

LiveWorld is headquartered in San Jose, California with additional offices in New York City and London. For further information visit www.liveworld.com

"Safe Harbor" Statement Under The Private Securities Litigation Reform Act:

This press release may contain forward-looking information concerning LiveWorld's plans, objectives, future expectations, forecasts and prospects. These statements may include those regarding LiveWorld's current or future financial performance including but not limited to lists of clients, revenue and profit, use of cash, investments, relationships and the actual or potential impact of stock option expense, LiveWorld's efforts to list its securities on the OTCBB, and the results of its product development efforts. Actual results may differ materially from those expressed in the forward looking statements made as a result of, among other things, final accounting adjustments and results, LiveWorld's ability to attract new clients and preserve or expand its relationship with existing clients, LiveWorld's ability to retain and attract high quality employees, including its management staff, the ability to deliver new innovative products in a timely manner, changing accounting treatments, and other risks applicable to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. (See the Company's July 13, 2007 Second Amended Registration Statement on Form 10-SB for a list that includes other possible risk factors.)

Contact:

For LiveWorld
Krause Taylor Associates
Barbara Krause, 408-918-9081 (PR)
barbara@krause-taylor.com

The Blueshirt Group
Brinlea Johnson, 415-489-2189 (IR)
brinlea@blueshirtgroup.com