Communicate.com, db/a Live Current Media, one of the stocks in our Domain Parking Stock Index reported its 1st quarter financial results for the period ended March 31, 2008.
Total revenues for the 1st quarter totaled $1.9 million, an increase of approximately 10%, compared to $1.7 million for the period ended March 31, 2007.
The increase was primarily from the Health & Beauty commerce product sales from Perfume.com, which increased nearly 29% over the previous year’s first quarter.
Cost of sales for the first quarter of 2008 were $1.5 million compared to $1.3 million for the first quarter of 2007, an increase of 14.3%. Gross profit for the first quarter of 2008 decreased 7% to $362,243 compared to $387,433 for the first quarter of 2007. Gross margin for the first quarter of 2008 was 19.6% compared to 22.9% for the first quarter of 2007. The decrease in gross margins during the quarter was primarily attributable to the increased prices for products charged by the vendors as well as the decreased advertising revenues which provide very high gross margins.
Total expenses for the quarter ended March 31, 2008 were $2.6 million compared to $434,820 for the quarter ended March 31, 2007. In the first quarter of 2008, corporate general and administrative expenses totaled $447,895 and commerce general and administrative expenses totaled $169,813, together amounting to $617,708, compared to $152,629 for the same period in 2007. These expenses increased as a result of the Company investing in people and systems necessary to rapidly build the key commerce and media DestinationHubs™ and to cover costs associated with various long term corporate matters and filings.
Live Current Media reported a net loss of $2.2 million or a loss of $0.10 per basic and diluted share for the first quarter of 2008 compared to a net loss of $47,387 for the first quarter of 2007. The increase in the quarterly is as a result of increased investment relating to growing the business and various one-time costs. These investments reflect senior management’s intent to build a “world class” team and organization to effectively and profitably exploit the Company’s assets as a new media company.
Total assets as of March 31, 2008 were $7.6 million and total liabilities of $1.4 million resulting in shareholders’ equity of $6.2 million down from $7.7 million at December 31, 2007. Cash and cash equivalents for the period ended March 31, 2008 totaled $4.9 million compared to $7.4 million at December 31, 2007.
Communicate.com is up 6% just over $3 a share in early trading Monday.
