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CrowdGather, Inc. Announces 2013 Year End Results and Update on Corporate Restructuring Plan
Date : 07/24/2013 @ 8:30AM
Source : Business Wire
Stock : Crowdgather, Inc. (QB) (CRWG)
Quote : 0.0875 0.0 (0.00%) @ 5:33AM
CrowdGather, Inc. Announces 2013 Year End Results and Update on Corporate Restructuring Plan
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Crowdgather, Inc. (QB) (USOTC:CRWG)
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Today : Wednesday 24 July 2013
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One of the leading networks of forum communities on the Internet, CrowdGather, Inc. (OTCQB:CRWG) today announced financial results for the fiscal year ended April 30, 2013.
For the fiscal year ended April 30, 2013, the Company reported revenues of $1,933,298, compared to revenues of $1,932,798 reported for fiscal 2012. Gross profit for the fiscal year ended April 30, 2013, was $1,880,493, an increase of 4% from the $1,811,464 reported for fiscal 2012. Net loss for the 2013 fiscal year was $2,782,451 or $.05 per share, versus a net loss of $3,106,723 or $.05 for the fiscal year ended April 30, 2012.
CrowdGather ended fiscal 2013 with approximately $0.4 million of cash and $14.4 million of shareholders’ equity.
The Company remains fully dedicated to its restructuring plan, and has slashed operating expenses from $4.0 million to $2.5 million on an annualized basis. The Company’s net burn has been reduced to approximately $60,000 per month from over $120,000 per month prior to execution of the restructuring plan. The Company continues to diligently review all costs and expects additional savings in the coming months.
Pursuant to the previously disclosed securities purchase agreement, dated April 8, 2013, and as amended on July 16, 2013, the Company expects to close an additional $150,000 in proceeds for 150,000 shares of Preferred Stock by August 2, 2013, in addition to the $150,000 in proceeds received on July 16, 2013 for 150,000 shares of Preferred Stock. The current Preferred Stock investor has the right of first refusal on the remaining, unallocated 400,000 shares of Preferred Stock, until October 12, 2013.
“We are pleased to report stable results for fiscal 2013 despite working with fewer resources as a result of our restructuring plan,” said Sanjay Sabnani, CrowdGather’s Chairman and CEO. “We believe we have built a stable foundation upon which to build additional high-margin revenue growth. We are preparing to optimize our network of forums across desktop and mobile devices to earn greater revenues and capitalize on higher advertising rates during the upcoming fall and winter holiday seasons. We are also continuing our cost reduction efforts and we have carefully managed and reduced our net cash burn by over 50%. Additionally, we are continuing with the development of our advertising marketplace, and still anticipate that full deployment of the platform may contribute to revenues by the end of calendar year 2013.”
Sabnani continued, “Our entire focus is on improving the financial and operating metrics of our business and towards that end, we are willing to rapidly shift resources from non-performing assets to those that provide a sustainable return. As the summer months are typically our slowest, both in terms of users online and lower advertising payouts, we do not anticipate any lift during the current first quarter of fiscal 2014. However, we believe that the net cash burn toward the end of the first quarter of fiscal 2014 will be closer to approximately $50,000 per month, and in the coming fall and winter, when momentum returns to the online advertising marketplace, we believe an increase of approximately $50,000 per month in revenues from current levels will put the company into breakeven territory.”
During April 2013, the Company reached over 150 million monthly page views across all properties, and had over 12 million monthly unique visitors according to Google Analytics.
During the third quarter of fiscal 2013, CrowdGather also received a Notice of Allowance from the United States Patent and Trademark Office (USPTO) for a patent application for systems and methods of targeted advertising. The claims underlying this patent relate to a system for generating targeted advertisement recommendations based upon the social momentum between associated keywords.
