Welcome!

API Journal Authors: Pat Romanski, Flint Brenton, Carmen Gonzalez, Elizabeth White, Liz McMillan

News Feed Item

CrowdGather, Inc. Announces Second Quarter and Six Month Fiscal 2013 Results

One of the leading networks of forum communities on the Internet, CrowdGather, Inc. (OTCQB:CRWG), today announced financial results for the second quarter ended October 31, 2012.

The Company reported revenues of $423,732 for the three months ended October 31 of fiscal 2013, resulting in $1,014,934 in total revenue for the six months ended October 31 of fiscal 2013, compared to $468,296 and $802,332, respectively, for the same periods in the prior fiscal year. Due to the timing of certain advertising campaigns, revenues from the second quarter of fiscal 2013 were 10% lower than the prior year period, but revenues increased by over 26% when comparing the first six months of fiscal 2013 to the first six months of fiscal 2012.

“We are excited to report a strong performance for the first six months of our 2013 fiscal year,” said Sanjay Sabnani, CrowdGather’s Chairman and CEO. “Since the first half of our fiscal year tends to be weaker cyclically, we anticipate that our revenues will improve in this, our fiscal third quarter. Additionally, during our second quarter of fiscal 2013, our main focus was on the release of our forum advertising marketplace, Adisn.com. Due to the release of our marketplace in late October, it did not have any impact on revenue for this reported fiscal period. We expect to realize an initial benefit from utilizing this technology in our current fiscal third quarter, but we anticipate that the primary push on the new marketplace will accelerate in calendar 2013 as we ramp up efforts to increase engagement from both advertisers and publishers.”

Gross profit was $423,063 and $995,718, respectively, for the three months and six months ended October 31 of fiscal 2013, compared to $468,296 and $693,592 for the same periods in the prior fiscal year. On a quarterly basis, gross profit declined by 10% but increased 44% when comparing the first six months of fiscal 2013 to the first six months of fiscal 2012.

Net loss was $793,398 or $.01 per share, and $1,470,426 or $.03 per share for the second quarter and six months ended October 31 of fiscal 2013, compared to $757,733 or $.01 per share and $1,628,168 or $.03 per share for the same periods of fiscal 2012.

CrowdGather ended the second quarter of fiscal 2013 with approximately $1.2 million of cash and $15 million of shareholders’ equity.

“Gross profit improved significantly for the six months ended October 31 of fiscal 2013 when compared to the prior year period, and we continue to maintain a strong balance sheet,” Sabnani said. “We are always seeking avenues to grow our business, whether through improving advertising opportunities on our existing ad inventory, making forum acquisitions, or developing partnerships with third-party publishers to improve monetization.”

CrowdGather previously disclosed an expected, estimated range of 180 to 190 million monthly page views for fiscal 2013 based on the Company’s efforts to prune non-monetizable content that also conflicts with the Company’s terms of service. During October 2012, the Company reached over 175 million monthly page views across all properties, and had over 14 million monthly unique visitors according to Google Analytics. The decline in monthly page views is greater than expected in part due to pruning but also because of multiple unexpected outages the Company experienced from hosting portions of its network on Amazon’s Web Services (AWS). Going forward, AWS outage risk is significantly mitigated since CrowdGather has already moved the majority of its data to a Company maintained network operating center in Los Angeles. Additionally, although the monthly page view traffic is slightly lower than anticipated, the decline will not significantly impact revenue since the reduction is due in part to pruning non-monetizable content.

“Our traffic analytics revealed a positive and exciting trend,” Sabnani continued. “We noted that mobile traffic accounts for about 15% of our monthly network traffic and is increasing. This figure was less than 10% about a year earlier. Although users can access content using mobile browsers, we have recorded approximately 8,500 downloads of the Yuku iOS and Android apps since their deployment. While increased mobile users are helping us enter the mobile landscape and associated opportunities, one side effect of increased mobile traffic is that mobile users spend fewer page views per visit than do traditional desktop or laptop users, and that can result in decreased overall network traffic as measured by monthly page views. Given that we are pursuing mobile monetization strategies, including some with our Yuku iOS and Android apps, we do not expect revenue to be impacted adversely from increasing mobile traffic. However, we do anticipate that increasing mobile traffic may reduce total monthly page views for fiscal 2013 to a range of 160 to 170 million. As we have previously disclosed, we do not expect these reported fluctuations in total traffic, or the ultimate level of traffic after pruning, to negatively impact our revenues.”

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.

About CrowdGather, Inc.

With its growing portfolio of special interest forums and enthusiast message board communities, CrowdGather (www.crowdgather.com) has created a centralized network to benefit forum members, forum owners, and forum advertisers. CrowdGather provides a highly interactive and informational social network for members, a management and revenue-sharing resource for third-party forum owners, and a largely untapped advertising network for marketers worldwide.

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth and business strategy. Words such as “expects”, “will”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates”, and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company’s business; general economic, industry and market sector conditions; the ability to generate increases revenues from the Company’s forums; the ability to obtain additional financing to implement the Company's long-term growth strategy; the ability to manage the Company's growth; the ability to develop and market new technologies to respond to rapid technological changes; competitive factors in the market(s) in which the Company operates; and other events, factors and risks disclosed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

 
CROWDGATHER, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
 
  October 31, 2012  
(UNAUDITED) April 30, 2012
ASSETS

Current assets

Cash $ 1,161,737 $ 2,328,492
Accounts receivable 182,848 42,995
Investments 28,570 28,570
Inventory 34,096 35,132
Prepaid expenses and deposits   85,791     88,932  
 
Total current assets 1,493,042 2,524,121
 
 

Property and equipment, net of accumulated depreciation of $294,543 and $241,569, respectively

295,182 131,175
 

Intangible assets, net of accumulated amortization of $30,224 and $15,224, respectively

9,383,103 9,333,928
Goodwill   4,360,176     4,360,176  
 

Total assets

$

15,531,503

$

16,349,400

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 
Current liabilities
Accounts payable $ 9,250 $ 54,095
Accrued vacation 37,491 27,468
Other accrued liabilities 219,770 28,890
Capital lease obligation, current portion   102,522     -  
 
Total current liabilities 369,033 110,453
 
Capital lease obligation, net of current portion 63,608 -
 
Stockholders’ equity

Preferred Series A stock, $0.001 par value, 25,000,000 shares authorized, -0- shares issued and outstanding

- -

Common stock, $0.001 par value, 975,000,000 shares authorized, 58,272,708 and 58,234,216 issued and outstanding, respectively

58,273 58,234
Additional paid-in capital 28,766,916 28,436,644
Accumulated deficit (13,704,927 ) (12,234,501 )
Accumulated other comprehensive loss   (21,400 )   (21,430 )
 
Total stockholders’ equity   15,098,862     16,238,947  
 
Total liabilities and stockholders’ equity $ 15,531,503   $ 16,349,400  
 
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2012 AND 2011
(UNAUDITED)
 
  Three Months Ended October 31,   Six Months Ended October 31,
  2012       2011     2012       2011  

Revenue

$

423,732

$

468,296

$ 1,014,934 $ 802,332
 
Cost of revenue   669     -     19,216     108,740  
 
Gross profit 423,063 468,296 995,718 693,592

Operating expenses

Payroll and related expenses 461,133 403,306 917,197 760,380
Stock based compensation 158,000 255,600 316,000 405,600
General and administrative   594,390     569,295     1,227,306     1,161,545  
Total operating expenses   1,213,523     1,228,201     2,460,503     2,327,525  
 

Loss from operations

(790,460

)

(759,905

)

(1,464,785 ) (1,633,933 )
 
Other income (expense), net   (2,938 )   2,172     (4,841 )   5,765  
 
Net loss before provision for income taxes (793,398 ) (757,733 ) (1,469,626 ) (1,628,168 )
 
Provision for income taxes   -     -     800     800  
 

Net loss

$

(793,398

)

$

(757,733

)

$ (1,470,426 ) $ (1,628,968 )
 

Weighted average shares outstanding - basic and diluted

 

58,272,708

   

58,735,772

   

58,261,343

   

58,484,532

 
 

Net loss per share – basic and diluted

$

(0.01

)

$

(0.01

)

$ (0.03 ) $ (0.03 )

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to impr...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...