|[March 30, 2012]
Wizzard Software Announces 2011 Financial Results
PITTSBURGH --(Business Wire)--
Wizzard Software (NYSE Amex: WZE) announced 2011 financial results
today, recording overall revenues of $6,540,217 in 2011, an increase of
$1,000,095 or approximately 18% from revenues of $5,540,122 in 2010. The
overall increase in revenue for 2011 reflects increased revenue across
all business segments. Wizzard's 2011 Speech business revenue grew 3%;
Healthcare grew 11% and our Media business revenue increased by 40%.
For the fourth quarter of 2011, Wizzard recorded overall revenues of
$1,820,948, an increase of 26% from revenues of $1,448,401 in the fourth
quarter of 2010. Our Media business revenues increased 45% in the fourth
quarter when compared to the fourth quarter of 2010 with Healthcare up
20% and our Speech business up 6%.
Wizzard generated a gross profit of $3,064,831 in 2011, versus a gross
profit of $2,009,019 in 2010, an increase of 53%. For the fourth quarter
of 2011, Wizzard generated a gross profit of $911,729 versus a gross
profit of $549,938 in 2010, an increase of 66%, led by our Media
business, which saw an increase in gross profit of 156% in the fourth
quarter of 2011.
Excluding the non-cash charge for the impairment of goodwill, basic and
diluted loss per common share was $.07 for the fourth quarter of 2011,
versus $.66 for the fourth quarter of 2010. The $.07 loss per common
share for the fourth quarter of 2011 does include other non-cash
expenses and acquisition related due diligence costs. Excluding the
non-cash charge for the impairment of goodwill, Basic and diluted loss
per common share was $.24 in 2011 versus $.76 for 2010.
Net loss available to common stockholders increased 143% to $9,979,883
in 2011, as compared to a net loss available to common stockholders of
$4,110,459 in 2010. This increase in net loss available to common
stockholders for 2011 was primarily due to the recording of $7,785,757
non-cash expense for impairment of goodwill. Basic and diluted loss per
common share was $1.31 in 2011, compared to $0.76 in 2010.
"We were pleased to see continued growth across our three business
segments and we are very excited about our planned acquisition of FAB
which, when completed, will create a major digital media distribution
company," said Chris Spencer, Wizzard Software CEO. "While the
acquisition process has taken longer than we originally projected,
management from both companies remain committed to the plan and we
expect to enter into definitive contracts any day. The delays have not
been due to material differences but simply logistics and both companies
commitment to a fair and equitable partnership. I believe we have
reached that point and we are now expediting the final agreeents."
Wizzard's Media business experienced its highest level of audience and
episode requests in the fourth quarter and throughout the entire year of
2011. With the new ability to charge for podcast episodes and create
ongoing subscription packages through mobile Apps and websites, combined
with the continued growth of the network and audience, Management
believes we have found a working business model for achieving growth and
profitability for our Media business going forward. We are very
interested to see how our business grows as we begin expanding the
network reach via Facebook (News - Alert) in the next several weeks."
For 2011, the Wizzard Media Network, through our premier podcast-hosting
service Libsyn, reached a record 21 million monthly unique audience
members and saw 40% revenue growth in our Media division.
Management stated that it continues to see very positive trends in its
App business in terms of early in-App purchasing numbers and
subscription purchases. The first test of a complete set of its current
subscription/premium upgrade products shows excellent adoption rates and
has been expanding to other top level podcast shows in the last several
"We believe Wizzard is very well positioned for the mobile entertainment
lifestyle shift currently taking shape and believe we can accelerate the
growth of our media business to keep up with the rapidly changing
entertainment consumption habits of consumers worldwide," said Laurie
Sims, President of Wizzard Media. "It is Wizzard's mission to become the
leading online content distribution and monetization service for the
serious podcast publisher by providing state of the art distribution
services, unique monetization solutions and compelling audience
engagement experiences. This is the future consumption and monetization
model for online media and Wizzard is working to deliver it today."
The previously mentioned numbers and statements are highlights from
Wizzard's 2011, 10K filing. For a complete and detailed financial
description of Wizzard Software Corporation, please visit www.sec.gov,
where all of Wizzard's SEC (News - Alert) filings can be found.
Wizzard's audited financial statements for the fiscal year ended
December 31, 2011, included in the Company's Annual Report on Form 10-K,
filed on March 30, 2012, contained a going concern qualification from
its independent registered auditing firm, Gregory & Associates, LLC.
This announcement is required by NYSE Amex Company Guide Section 610(b),
which requires separate disclosure of receipt of an audit opinion
containing a going concern qualification. This announcement does not
represent any change or amendment to the company's financial statements
or to its Annual Report on Form 10-K for the fiscal year ended December
About Wizzard Software
Through its Media business segment, Wizzard Media provides podcast
publishers with distribution and monetization services. Our clients
include Microsoft, National Geographic, Harvard Business Review, NPR (News - Alert) and
more than 14,000 others who use Wizzard Media products to measure their
podcast audience, deliver popular audio and video entertainment and
monetize their content through advertising and App sales. In 2011, the
Wizzard Media Network reached over 20 million monthly unique users
worldwide through iPods, iPhones, iTunes, Zunes, Androids, BlackBerrys
and many other devices and destinations. Wizzard Media is part of a
publicly-held, Pittsburgh based company with Software and Healthcare
business segments, thousands of shareholders and a world-class team.
Visit us on the web at www.wizzardsoftware.com/media,
email us at firstname.lastname@example.org.
Legal Notice Regarding Forward-Looking Statements: "Forward-looking
Statements" as defined in the Private Securities litigation Reform Act
of 1995 may be included in this news release. These statements relate to
future events or our future financial performance. These statements are
only predictions and may differ materially from actual future results or
events. We disclaim any intention or obligation to revise any
forward-looking statements whether as a result of new information,
future developments or otherwise. There are important risk factors that
could cause actual results to differ from those contained in
forward-looking statements, including, but not limited to risks
associated with changes in general economic and business conditions,
actions of our competitors, the extent to which we are able to develop
new services and markets for our services, the time and expense involved
in such development activities, the level of demand and market
acceptance of our services, changes in our business strategies and acts
of terror against the United States.
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