GoAmerica posts loss in Q1
Hackensack, N.J.-based GoAmerica, Inc. (Nasdaq: GOAM), a provider of communications services for the hearing impaired, is seeing its shares fall on news on a net loss in the first quarter of 2007.
The net loss for the three months ended March 31 was $0.77 million, or $0.35 per share, compared with a net loss of $1 million, or $0.46 per share, during the first quarter of 2006, the company said after Tuesday’s close. Analyst estimates were not available. GoAmerica lost $0.77 million, or $0.36 per share, in the final quarter of 2006.
Total revenue for the first three months of 2007 was $4.3 million, 163% above revenue of $1.6 million in the first quarter of 2006. However, the company pointed out the sharp increase was largely attributed to a change in accounting practices. GoAmerica’s mid-2006 certification by the Federal Communications Commission enabled it to recognize the full revenues associated with its relay services.
“While we continue to develop and enhance our products, we are not satisfied with the pace of our revenue growth and are taking steps to address it,” CEO Dan Luis said. “Among other things, we are broadening our distribution channels to further introduce our products and services to the marketplace.”
Luis said GoAmerica is expanding its i711 VRS platform (www.i711.com), which is a text message-like service Internet tool that allows hearing impaired individuals to make phone calls from their computer.
At 1:30 p.m. ET shares were down $1.43, or 21%, to $5.50. The 52-week high is $10.87, established on Dec. 14. The 52-week low of $2.75 was reached on May 30, 2006.
