AudioEye, Inc. Expects 2013 Revenues to Exceed $1.5 Million vs. $0.3 Million in Prior Year
Annualized Revenue "Run Rate" in Fourth Quarter Approximated $2.8 Million; Company Projects Operations Will Be Cash Flow Positive in 2014
TUCSON, AZ, Jan 28, 2014 (Marketwired via COMTEX) -- AudioEye(R), Inc. (OTCQB: AEYE) ("AudioEye" or the "Company"), creator of the Audio Internet(R) patented audio browsing and automated publishing technology platform, today announced that it expects to report revenue in excess of $690,000 for the fourth quarter of 2013. This represents a sequential increase in recognizable revenue of approximately 82% relative to third quarter revenue of $381,540, and compares with revenue of $3,226 in the fourth quarter of 2012.
For the year ended December 31, 2013, the Company expects to report that its revenue increased more than 430% to over $1.5 million, compared with 2012 revenue of $282,063.
In addition to top line quarter-over-quarter revenue growth, the Company increased its gross profit margin from 66% of sales in the third quarter of 2013 to at least 74% of sales in the fourth quarter. For the full year 2013, gross profit margin approximated 73% of sales.
The Company expects to report audited financial results for the year ended December 31, 2013 no later than March 31, 2014.
During 2013, the Company made significant investments to complete its industry-first Software as a Service Platform ("SaaS") called the Audio Internet(TM). The Audio Internet empowers AudioEye's customers to create conversations between consumers and brands, government agencies and constituents, and educational institutions and students/parents. AudioEye is the first voice-to-Internet service that allows anyone to access and navigate a website, mobile site and applications without the need for a monitor or a mouse. The platform enables automated content creation and multi-format publishing capabilities through a patented process that facilitates complete usability, mobility, and accessibility at an affordable cost for Internet content publishers. The platform has been designed to consolidate best in class text-to-speech and speech-to-text engines, phonetics, captioning, transcription, page-to-page navigation controls, full narrated transactional site utility, voice data collection, customizable dashboard analytics and reporting capabilities. Publishers can add AudioEye's technology to any existing website, mobile site or application. The Audio Internet is being offered in comprehensive packages and licensing models to government entities, enterprises and institutions that maintain Internet and mobile sites.
Further development of the Audio Internet in 2013 included outlays for AudioEye's Application Programming Interface (API), which allows web development firms or in-house developers to license and utilize AudioEye's functionality within the websites they develop. The platform picks up where other technologies (e.g., Apple's Siri) leave off. It completely translates Internet and mobile content into experiential multi-sensory and accessible formats automatically for publishers and their developers, thereby allowing them to control a new dialogue and phonetic data stream. Controls include the character of the human voice, voice font and even the language that an end-user ultimately experiences. The newly developed SaaS platform API was commercially launched by AudioEye in January 2014 and will be expanded throughout the year in accordance with a prescribed software development plan.
"We are proving out use cases and efficacy in profitable and scalable implementations of our industry-first software tools, and we consider the quintupling in 2013 revenue a solid indication that we are succeeding in our business plan," stated Nathaniel Bradley, Chief Executive Officer of AudioEye, Inc. "During 2014, we are focused on both the replication of this success by selling more within proven market verticals, such as behavioral health, universities and pharmaceuticals, and expansion through our intellectual property licensing initiatives into government, e-commerce, real estate, entertainment, travel, leading Internet destinations and populated mobile applications. The initial success of our investments in sales and marketing initiatives is most clearly evident in the growing number of presentations we have been able to schedule with potential customers in recent months, particularly among high-profile government agencies, which are now able to allocate funds towards meeting the 21st Century Communications and Video Accessibility Act ("CVAA") mandates, now that the Fiscal 2014 federal budget has been finalized."
"The U.S. Department of Justice has communicated, on a number of occasions, its intent to expand enforcement activities regarding the CVAA in 2014 and future years," continued Bradley. "Among other things, the CVAA requires that government, corporate and educational website content be fully accessible by vision-impaired individuals, without requiring such individuals to incur additional costs relative to non-impaired website users. We believe our patented Audio Internet platform represents the most effective way for government agencies, companies and institutions to comply with the CVAA. Increased enforcement activities, along with efforts by corporate, government and other content publishers to fully harness the potential of the Internet, should continue to drive AudioEye's revenue growth at a rapid pace. Based upon information currently available to the Company, we expect our operations to be cash flow positive in 2014."
