There were 275 press releases posted in the last 24 hours and 171,262 in the last 365 days.

One Horizon Group Announces 2017 First Quarter Financial Results

/EINPresswire.com/ -- LIMERICK, IRELAND--(Marketwired - May 15, 2017) - One Horizon Group, Inc. (NASDAQ: OHGI), the award winning mobile VoIP software provider for telecommunications operators, today announced its financial results for the first quarter ending March 31, 2017. 1

  • Cash flow positive for first time since listing on the NASDAQ;
  • Unveiled new features within its low bandwidth VoIP application including Video Calling on 2G, 3G and 4G networks and complete Google AdMob advertising environment revenue stream;
  • Entered FinTech space with introduction of Cyber-Secure KeyBroker encryption securing mobile banking voice + multi-media communications;
  • Regained compliance with NASDAQ.

Brian Collins, CEO of One Horizon Group, commented, "Holding true to our core competency as an innovative software company, our R&D team worked tirelessly on unveiling several new features within our low bandwidth VoIP platform and doing so on a very modest budget. Users globally can now utilize video calling across 2G, 3G and 4G networks as well as being fully secure with our encrypted call features. The advancements of our platform will always be evolving; bringing to market technology that is solving a major global problem. Our technology is closing the gap between developed geographies like the U.S. which operates in mostly 4G networks and the majority of the world which still operates in 2G and 3G environments."

2017 Operational Highlights:

  • Secured license in Ghana, West Africa, through a commercial software agreement with a licensed carrier to bring the benefits of optimized voice communications to 18 million mobile data subscribers.
  • Entered 2017 with a $2.6 billion mobile hotspot market through a license with a leading pocket Wi-Fi service provider.
  • Microsoft published a feature on how One Horizon Group improves its time to market, shortens its sales-cycles and improves service security by combining their patented VoIP technology with the power of the Microsoft Azure cloud platform: https://customers.microsoft.com/en-us/story/onehorizon
  • University research into VoIP bandwidth usage for One Horizon's software alongside the biggest smartphone VoIP technologies in the world including WhatsApp, Facebook, WeChat, and Skype, proved One Horizon's application is 8.8x more efficient than the baseline.

R&D Drove Innovation and Technological Advancements During the Quarter:

  • Low bandwidth Video over IP Calling solution that consumes just 0.5MB per minute or 7x lower bandwidth than most other video over IP services. Users now enjoy video calls across 2G, 3G, and 4G networks as well as HD video calls across Wi-Fi connections.
  • Cyber-secure VoIP service that delivers encrypted video calls while supporting in-call encryption. For example, a user can now start a call in an unencrypted mode and secure the line without having to hang up and restart the call.
  • Delivered complete Google AdMob advertising environment for carriers to further monetize their subscriber base. Intelligent ads are delivered based on the user profile and their location.
  • Delivered complete CallKit solution from Apple that seamlessly integrates the One Horizon smartphone applications with the native iOS call interfaces making the usability of the application even more attractive.
  • Advanced fraud management and detection that permits pre-paid users to not only spend a certain amount of money and other server side fraud management that massively reduces risk of theft.
  • Encrypted call from smartphone to an enterprise voice server thereby ensuring staff calls are all encrypted and contained within the enterprise secure IT infrastructure.
  • Entered FinTech space with introduction of Cyber-Secure KeyBroker encryption securing mobile banking voice + multi-media communications.

Regained Compliance with NASDAQ:
One Horizon Group received notice from The NASDAQ Stock Market LLC (NASDAQ) on May 12, 2017 indicating that the Company has regained compliance with the minimum bid price requirement under NASDAQ Listing Rule 5550(a)(2) for continued listing on The NASDAQ Capital Market. Accordingly, One Horizon Group is in compliance with all applicable listing standards and its common stock will continue to be listed on The NASDAQ Capital Market. NASDAQ considers the matter closed.

Financial Highlights for the First Quarter Ending March 31, 2017:
Revenue for the three months ended March 31, 2017 was approximately $373,000 as compared to approximately $609,000 for the three months ended March 31, 2016. The decrease was primarily due to the reduction in income for the B2B revenue in Asia. During the first quarter of 2017, 30% of the Company's revenue was concentrated in one major customer as compared to 86% during the first quarter of 2016.

Cost of revenue, excluding amortization of software development costs, was approximately $2,000, or 0.5% of sales for the three months ended March 31, 2017, compared to cost of revenue of $26,000 or 4.3% of sales for the three months ended March 31, 2016. The Company's cost of sales, excluding amortization of software development costs, is composed of cost of ancillary hardware equipment sold, PSTN breakout costs and network charges.

Gross profit excluding amortization of software development costs, for the three months ended March 31, 2017 was approximately $371,000 as compared to $583,000 for the three months ended March 31, 2016, a decrease of approximately 36.4%.

Operating expenses including general and administrative expenses, depreciation and research and development were approximately $988,000 and $1,167,000 during the three months ended March 31, 2017 and 2016, respectively. The overall reduction in Operating expenses was primarily due to reductions in employee salaries, legal fees and provision for doubtful accounts partially offset by increases in audit costs and outside consultancy costs. Going forward, management does not expect operating costs to rise significantly until revenue grows following the increase of end users.

Net loss for the three months ended March 31, 2017 was approximately $1,284,000 as compared to net loss of approximately $1,258,000 for the same period in 2016.

Net cash generated from operating activities was approximately $150,000 for the three months ended March 31, 2017 as compared to net cash used in operating activities of approximately ($121,000) for the same period in 2016. The increase in cash generated from operations was primarily due to the increase in cash collected from customers.

About One Horizon Group, Inc.
One Horizon Group, Inc. (NASDAQ: OHGI) a leading developer and operator of carrier-grade optimized VoIP solutions for mobile telcos and enterprises. The company currently services over 43 million subscribers across 20 licensed brands worldwide. The technology is one of the world's most bandwidth-efficient mobile VoIP, messaging and advertising platforms for smartphones. Founded in 2012, the Company now has operations in Ireland, Switzerland, the United Kingdom, China, India, Singapore, Hong Kong and Latin America. For more information on the Company please visit http://www.onehorizongroup.com.

1http://smart.com.ph/About/newsroom/press-releases/2017/03/13/smart-is-anvil-company-of-the-year-anew

Safe Harbor Statement
This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as uncertainty of consumer demand for the Company's products, as well as additional risks and uncertainties that are identified and described in Company's SEC reports. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.

   
ONE HORIZON GROUP, INC.  
Condensed Consolidated Balance Sheets  
March 31, 2017 and December 31, 2016  
(in thousands, except share data)  
(unaudited)  
   
    March 31,     December 31,  
    2017     2016  
Assets                
                 
Current assets:                
Cash   $ 262     $ 260  
Accounts receivable, net     982       1,208  
Other assets     485       471  
Total current assets     1,729       1,939  
                 
Property and equipment, net     36       42  
Intangible assets, net     7,883       8,407  
Investment     17       17  
                 
Total assets   $ 9,665     $ 10,405  
                 
Liabilities and Stockholders' Equity                
                 
Current liabilities:                
Accounts payable   $ 352     $ 364  
Accrued expenses     404       206  
Accrued compensation     228       156  
Income taxes     90       90  
Convertible debenture, net     3,177       3,068  
Total current liabilities     4,251       3,884  
                 
Long-term liabilities                
Amount due to related parties     2,343       2,343  
Deferred income taxes     161       172  
Mandatorily redeemable preferred shares     62       62  
Total liabilities     6,817       6,461  
                 
Stockholders' Equity                
Preferred stock:                
$0.0001 par value, authorized 50,000,000 shares; issued and outstanding 170,940 shares     1       1  
Common stock:                
$0.0001 par value, authorized 33,333,333 shares; issued and outstanding 6,236,729 shares as of March 31,2017 (December 2016 - 6,144,762)     4       4  
Additional paid-in capital     37,859       37,501  
Accumulated deficit     (34,875 )     (33,591 )
Accumulated other comprehensive income (loss)     (141 )     29  
Total stockholders' equity     2,848       3,944  
              -  
Total liabilities and stockholders' equity   $ 9,665     $ 10,405  
                 
                 
   
ONE HORIZON GROUP, INC.  
Condensed Consolidated Statements of Operations  
For the three months ended March 31, 2017 and 2016  
(in thousands, except per share data)  
(unaudited)  
   
    Three Months ended March 31,  
    2017     2016  
                 
Revenue   $ 373     $ 609  
                 
Cost of revenue - Hardware     2       26  
            - Amortization of intangibles     500       512  
      502       538  
                 
Gross margin     (129 )     71  
                 
Expenses:                
  General and administrative     846       964  
  Depreciation     8       15  
  Research and development     134       188  
      988       1,167  
                 
Loss from operations     (1,117 )     (1,096 )
                 
Other income and expense:                
  Interest expense     (179 )     (180 )
  Foreign exchange     1       7  
                 
      (178 )     (173 )
                 
Loss before income taxes     (1,295 )     (1,269 )
                 
Income taxes benefit     11       11  
                 
Net loss for the period     (1,284 )     (1,258 )
                 
Less: Preferred Dividends     -       (25 )
                 
Net loss attributable to One Horizon Group, Inc. Common stockholders   $ (1,284 )   $ (1,283 )
                 
Loss per share attributable to One Horizon Group, Inc. stockholders                
                 
  Basic and diluted net loss per share   $ (0.21 )   $ (0.22 )
                 
Weighted average number of shares outstanding                
  Basic and diluted     6,176       5,857  
                 
                 
   
ONE HORIZON GROUP, INC.  
Condensed Consolidated Statements of Cash Flows  
For the three months ended March 31, 2017 and 2016  
(in thousands)  
(unaudited)  
   
    2017     2016  
Cash flows from operating activities:                
                 
Net loss for the period   $ (1,284 )   $ (1,258 )
                 
Adjustment to reconcile net loss for the period to net cash provided by (used in) operating activities:                
  Depreciation of property and equipment     8       15  
  Amortization of intangible assets     500       512  
  Increase in allowance for doubtful accounts     -       100  
  Amortization of debt issue costs     34       33  
  Amortization of beneficial conversion feature     25       25  
  Amortization of debt discount     50       50  
  Amortization of shares issued for services     22       -  
  Shares issued for services     176       -  
  Warrants issued for services     123       -  
  Options issued for services     59       188  
  Changes in operating assets and liabilities:                
    Accounts receivable     226       402  
    Other assets     (36 )     (71 )
    Accounts payable and accrued expenses     258       (106 )
    Deferred income taxes     (11 )     (11 )
                 
Net cash provided by (used in) operating activities     150       (121 )
                 
Cash flows from investing activities:                
                 
  Acquisition of intangible assets     (129 )     (116 )
  Acquisition of property and equipment     (2 )     (2 )
                 
  Net cash (used in) investing activities     (131 )     (118 )
                 
Cash flows from financing activities:                
                 
  (Decrease) in long-term borrowing, net     -       (3 )
  Dividends paid     -       (25 )
                 
Net cash used in financing activities     -       (28 )
                 
Increase (Decrease) in cash during the period     19       (267 )
Foreign exchange effect on cash     (17 )     78  
                 
Cash at beginning of the period     260       1,172  
                 
Cash at end of the period   $ 262     $ 1,583