Welcome!

Mobile IoT Authors: Liz McMillan, Peter Silva, Talend Inc., Sanjay Uppal, Pat Romanski

News Feed Item

Lenco Mobile, Inc. Reports Third Quarter 2012 Results

Revenues up 51% over Q3 2011

SEATTLE, Nov. 19, 2012 /PRNewswire/ -- Lenco Mobile, Inc. (OTCQB: LNCM), a global provider of proprietary mobile messaging and mobile web solutions, announced results for the quarter ended September 30, 2012. Lenco reported revenues of $4.2 million, an increase of 51% from the third quarter of 2011.  

"We remain focused on completing the integration of iLoop Mobile and on implementing our global business strategy to provide a broad set of mobile solutions to large multinational entities.  Our third quarter results reflect those efforts," said Mathew Harris, CEO of Lenco.  "We see broad acceptance of our rich media MMS messaging solutions for both marketing and business process initiatives.  Those solutions have become key competitive differentiators for us and we expect that to continue to be important across our target markets," continued Harris.

Third Quarter Review

  • Revenue increased 51% year-over-year to $4.2 million.
  • Gross profit increased 37% year-over-year to $2.4 million.
  • Operating expenses increased 11% year-over-year to $4.6 million.  The increase was primarily due to increased sales, marketing and development expenses offset by a decrease in general and administrative costs.

"We're pleased with our progress and will continue to focus on execution in all aspects of the business as we grow both domestically and internationally," concluded Harris.

Balance Sheet
As of September 30, 2012 the Company had cash and cash-equivalents of approximately $0.2 million and a net working capital deficit of $11.1 million. Cash used in operations during the nine months ended September 30, 2012 totaled $6.6 million.

 

Lenco Mobile Inc.

Condensed Consolidated Balance Sheets

(unaudited)



As of




September 30, 2012



December 31, 2011




(In thousands, except share data)


ASSETS




Current assets:









Cash and cash equivalents


$

153



$

3,098


Accounts receivable, net of allowance of $113 and $99, respectively



3,328




1,680


Other current assets



303




383


Income taxes receivable






356


Total current assets



3,784




5,517











Property and equipment, net



382




464











Other noncurrent assets:









Intangible assets - goodwill



24,184




24,200


Intangible assets - other, net



7,802




9,176


Other noncurrent assets



26




31


Total other noncurrent assets



32,012




33,407











Total assets


$

36,178



$

39,388











LIABILITIES AND SHAREHOLDERS' EQUITY









Current liabilities:









    Accounts payable and accrued expenses


$

6,394



$

6,059


    Income taxes payable



94





    Deferred revenue



202




711


    Retention bonus



3,313




4,121


    Preferred dividend payable



2,200




1,267


Current portion of long-term obligations, (convertible debt portion of $260, and $1,626, respectively)



2,720




4,998


Total current liabilities



14,923




17,156











Long-term obligations, less current portion, net of debt discount cost (of $1,202, and $0.00, respectively)



5,755




1,791


Total liabilities



20,678




18,947




















Shareholders' equity:









Preferred Stock, Series A 1,000,000 shares authorized, $.001 par value, 171,412 and 161,752 shares issued and outstanding at September 30, 2012 and at December 31, 2011, respectively



0




0


Preferred Stock, Series B1 1,000,000 shares authorized, $.001 par value, 87,717 and 87,717 shares issued and outstanding at September 30, 2012 and at December 31, 2011, respectively



0




0


Preferred Stock, Series B2 1,000,000 shares authorized, $.001 par value, 58,131 and 58,131 shares issued and outstanding at September 30, 2012 and at December 31, 2011, respectively



0




0


Common stock, 250,000,000 shares authorized, $.001 par value, 80,478,648 and 81,621,978 shares issued and outstanding at September 30, 2012 and December 31, 2011, respectively.



82




82


    Additional paid in capital



90,367




82,959


    Accumulated other comprehensive income



(147)




(2)


     Accumulated deficit



(74,503)




(62,327)


Treasury stock, at cost, 1,400,000 and 266,667 shares, respectively



(299)




(67)


Total Lenco Mobile Inc. shareholders' equity



15,500




20,645


Noncontrolling deficit






(204)


Total equity



15,500




20,441











Total liabilities and shareholders' equity


$

36,178



$

39,388


 

Lenco Mobile Inc.


Condensed Consolidated Statements of Operations


(unaudited)











Three Months Ended September 30,



Nine Months Ended September 30,




2012



2011



2012



2011




(In thousands, except share data)


Revenue


$

4,177



$

2,759



$

12,471



$

7,206


Cost of sales



1,747




981




5,086




2,251


Gross profit



2,430




1,778




7,385




4,955



















Operating expense:

















Sales and marketing



1,120




718




3,598




2,564


General and administrative



1,728




2,021




5,247




5,572


Research and development



1,358




165




4,018




800


Depreciation and amortization



429




356




1,395




1,019


Impairment loss






925







925


Total operating expense



4,635




4,185




14,258




10,880



















Loss from operations



(2,205)




(2,407)




(6,873)




(5,925)



















Other income (expense):

















Interest expense, net



(675)




(7)




(883)




(27)


Other income, net






60




566




66


Total other income (expense)



(675)




53




(317)




39



















Loss from operations before income taxes



(2,880)




(2,354)




(7,190)




(5,886)



















Provision for (benefit from) income taxes



(2)




139




107




167


Loss from continuing operations



(2,878)




(2,493)




(7,297)




(6,053)



















Loss from discontinued operations






(29,909)







(33,496)


Gain on contingent consideration of discontinued operations












12,328


Net loss



(2,878)




(32,402)




(7,297)




(27,221)



















Net loss or income attributable to noncontrolling interest






68




(204)




240


Net loss attributable to Lenco Mobile Inc.



(2,878)




(32,334)




(7,501)




(26,981)



















Preferred stock dividends



(290)




(172)




(846)




(502)


Series A Preferred Stock accretion of beneficial conversion feature



(1,132)




(1,341)




(3,814)




(4,008)



















Net loss attributable to common stockholders


$

(4,300)



$

(33,847)



$

(12,161)



$

(31,491)



















Basic and diluted net loss per share applicable to common stockholders

















Continuing operations


$

(0.05)



$

(0.04)



$

(0.15)



$

(0.09)


Discontinued operations


$



$

(0.42)



$



$

(0.30)


Net loss per share applicable to common stockholders


$

(0.05)



$

(0.48)



$

(0.15)



$

(0.44)



















Weighted average shares used in per share calculation - basic and diluted



80,544,300




71,145,659




80,563,250




71,145,659


 

ABOUT LENCO MOBILE (OTCQB: LNCM)
In December 2011, iLoop Mobile and Lenco Mobile merged to form a global mobile technology and services firm. This powerful union gives the company the expertise and technology to support customers in developing and launching large scale mobile initiatives.  Lenco offers unique high performance MMS capabilities along with SMS, Mobile Web, Mobile Social Integration, International Services, Carrier Products, and a broad range of vertical specific solutions. The combination of expertise and leading-edge mobile technology has the potential to create a global leader with unmatched scale, reach, and capabilities. In June 2012, the combined companies began the process of rebranding under a unified name, Archer. For more information about Lenco Mobile please visit www.helloarcher.com.

Forward-Looking Statements Disclosure 
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ significantly from management's expectations. These forward-looking statements involve risks and uncertainties that include, among others, risks related to competition, management of growth, new products, services and technologies, potential fluctuations in operating results, international expansion, outcomes of legal proceedings and claims, seasonality, commercial agreements, acquisitions and strategic transactions, foreign exchange rates, system interruption, government regulation and taxation, payments and fraud. More information about factors that potentially could affect Lenco's business and financial results is included under the heading "Risk Factors"  in Lenco's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent filings.  Except as may be required by law, the Company does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

Information on Corporate Web Site
We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD.  Such disclosures will be included on our website in the 'Investor Relations' sections.  Accordingly, investors should monitor such portions of our website, in addition to following our press releases and SEC filings.

For further information contact:

Christopher Dukelow, Chief Financial Officer
[email protected] 
+1.206.419.1975

SOURCE Lenco Mobile, 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
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
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, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
The IoT's basic concept of collecting data from as many sources possible to drive better decision making, create process innovation and realize additional revenue has been in use at large enterprises with deep pockets for decades. So what has changed? In his session at @ThingsExpo, Prasanna Sivaramakrishnan, Solutions Architect at Red Hat, discussed the impact commodity hardware, ubiquitous connectivity, and innovations in open source software are having on the connected universe of people, thi...
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, showed how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants received the download information, scripts, and complete end-t...
For manufacturers, the Internet of Things (IoT) represents a jumping-off point for innovation, jobs, and revenue creation. But to adequately seize the opportunity, manufacturers must design devices that are interconnected, can continually sense their environment and process huge amounts of data. As a first step, manufacturers must embrace a new product development ecosystem in order to support these products.
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, discussed how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the dat...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT’s direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...