New PGi SaaS Products, iMeet® and GlobalMeet®, Drive Year-over-Year Revenue Growth Company Reiterates Financial Outlook for 2012 Despite Foreign Currency Headwinds
Premiere Global Services, Inc. (NYSE: PGI), a global leader in virtual meetings for 20 years, today announced results for the first quarter ended June 30, 2012.
In the second quarter of 2012, net revenues increased to $127.0 million, compared to $119.0 million in the second quarter of 2011. Diluted EPS from continuing operations was $0.14 and non-GAAP diluted EPS from continuing operations was $0.19* in the second quarter of 2012, compared to diluted EPS from continuing operations of $0.10 and non-GAAP diluted EPS from continuing operations of $0.15* in the second quarter of 2011.
"During the second quarter, we continued to maintain solid trends across our global business, in spite of growing macroeconomic pressures," said Boland T. Jones, PGi founder, chairman and CEO. "We continue to increase sales of iMeet and GlobalMeet, as well as grow our pipelines of new customer and strategic distribution partner opportunities. We remain optimistic in our outlook for the remainder of the year, as we continue to transition PGi toward a software as a service model."
Second Quarter 2012 Accomplishments
New PGi SaaS products, iMeet and GlobalMeet, represent significant portion of 8.4% organic revenue growth during the quarter;
Reported non-GAAP diluted EPS from continuing operations growth of over 25% as compared to the second quarter of 2011;
Launched iMeet 2.0 – the second generation of our innovative, cloud-based video meeting product, which includes significant new features like Screen Share, Spotlight Cube, the Cloud Controls enterprise admin console and Auto-Connect™ audio;
Launched GlobalMeet 3.0 – the latest version of our integrated web and audio conferencing product, which includes an industry-leading new mobile meeting app for the iPad® among its many feature upgrades and enhancements;
Announced a new, multi-year strategic alliance with eircom, Ireland’s leading provider of fixed and mobile telecommunications, who will offer PGi’s entire suite of conferencing solutions, including iMeet and GlobalMeet, to its business customers;
Grew the annual revenue run-rate from iMeet and GlobalMeet by greater than 22% as compared to the first quarter of 2012;
iMeet recognized as the Silver award winner in the Best New Product category at the internationally renowned 2012 Edison Awards; and
Repurchased nearly one million shares of our common stock in the open market under our share repurchase plan.
Six Month Results
In the first six months of 2012, net revenues totaled $253.6 million, compared to $235.9 million in the first six months of 2011. Diluted EPS from continuing operations was $0.27 and non-GAAP diluted EPS from continuing operations was $0.37• in the first six months of 2012, compared to diluted EPS from continuing operations of $0.15 and non-GAAP diluted EPS from continuing operations of $0.26• in the first six months of 2011.
The following statements are based on PGi’s current expectations. These statements contain forward-looking statements and company estimates, and actual results may differ materially. PGi assumes no duty to update any forward-looking statements made in this press release.
Despite increasing global macroeconomic pressures and the negative impact of foreign currency exchange rates, PGi maintained its financial outlook for 2012. Based on current trends and foreign currency exchange rates, PGi anticipates net revenues from continuing operations in 2012 will be in the range of $500-$510 million and non-GAAP diluted EPS from continuing operations will be in the range of $0.72-$0.75*.
PGi will host a conference call today at 5:00 pm., Eastern Time, to discuss these results. To participate in the call, please dial-in to the appropriate number 5-10 minutes prior to the scheduled start time: (888) 204-4317 (U.S. and Canada) or (913) 312-0643 (International). The conference call will simultaneously be webcast. Please visit pgi.com for webcast details and conference call replay information, as well as the webcast archive and the text of the earnings release, including the financial and statistical information to be presented during the call.
View Financial Data
*Non-GAAP Financial Measures
To supplement the company’s consolidated financial statements presented in accordance with GAAP, we have included the following non-GAAP measures of financial performance: non-GAAP operating income, non-GAAP net income from continuing operations, non-GAAP diluted net income per share (EPS) from continuing operations and organic growth. The company has also included these non-GAAP measures, as well as net revenues and segment net revenues, on a constant currency basis. Management uses these measures internally as a means of analyzing the company’s current and future financial performance and identifying trends in our financial condition and results of operations. We have provided this information to investors to assist in meaningful comparisons of past, present and future operating results and to assist in highlighting the results of ongoing core operations. Please see the table attached for calculation of these non-GAAP financial measures and for reconciliation to the most directly comparable GAAP measures. These non-GAAP financial measures may differ materially from comparable or similarly titled measures provided by other companies and should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.
About Premiere Global Services, Inc. | PGi
PGi (pgi.com) has been a global leader in virtual meetings for 20 years. Our cloud-based solutions deliver multi-point, real-time virtual collaboration using video, voice and file sharing technologies. PGi solutions are available via desktops, tablets or mobile devices, helping businesses worldwide be more productive, mobile and green. PGi has a global presence in 25 countries and an established base of more than 35,000 enterprise customers, including 75% of the Fortune 100™. In the last five years, we have hosted more than 725 million people from 137 countries in over 65 million meetings.
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Premiere Global Services, Inc.’s forward-looking statements, including, but not limited to, the following factors: competitive pressures, including pricing pressures; technological changes and the development of alternatives to our services; market acceptance of new cloud-based, virtual meeting services, including our iMeet® and GlobalMeet® services; our ability to attract new customers and to retain and further penetrate our existing customers; risks associated with challenging global economic conditions; price increases from our telecommunications service providers; service interruptions and network downtime; technological obsolescence and our ability to upgrade our equipment or increase our network capacity; concerns regarding the security of transactions; future write-downs of goodwill or other intangible assets; greater than anticipated tax liabilities; restructuring and cost reduction initiatives and the market reaction thereto; our level of indebtedness; risks associated with acquisitions and divestitures; the impact of the sale of our PGiSend business; our ability to protect our intellectual property rights, including possible adverse results of litigation or infringement claims; regulatory or legislative changes, including further government regulations applicable to traditional telecommunications service providers and data privacy; risks associated with international operations and market expansion, including fluctuations in foreign currency exchange rates; and other factors described from time to time in our press releases, reports and other filings with the Securities and Exchange Commission, including but not limited to the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2011. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.