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Viewpoint Corporation Announces Fourth Quarter and Full Year 2005 Financial Results.

Article Excerpt
NEW YORK -- Viewpoint Corporation (NASDAQ: VWPT), a leading internet marketing technology company, today announced financial results for the fourth quarter and full year ended December 31, 2005.

Viewpoint reported total revenue of $7.2 million for the fourth quarter 2005, a 21 percent increase as compared to $6.0 million in the third quarter 2005 and a 51 percent increase as compared to $4.8 million in the fourth quarter 2004. Gross profit was $4.6 million for the fourth quarter of 2005, in line with the third quarter of 2005, and an increase of 21 percent as compared to $3.9 million for the fourth quarter of 2004.

Patrick Vogt, President and Chief Executive Officer, commented, "We are pleased with our results for the fourth quarter and the great strides we have made as a Company in 2005. As we had guided, in 2005 we were adjusted operating income positive, achieving this performance level for the third consecutive quarter and four out of five trailing quarters. Furthermore, we delivered year-over-year improvements in our business and full year 2005 revenue of over $25 million, an increase of 74 percent as compared to full year 2004."Adjusted operating income is a non-GAAP measure, defined below.

Vogt added, "As we enter into 2006, we are very optimistic about our key enterprise solutions - Unicast, TheStudio and KeySearch as well as our key consumer solutions - WebSearch and fotomat. These products are all powered by Viewpoint technology, which allows us to bring the Viewpoint brand back to its roots - great technology that helps companies market their products on the web. These strategic changes in our business model, company culture, product offering, and our laser focus on customers bring a level of synergy unparalled in Viewpoint's history. These changes also position us well to take advantage of the market opportunity ahead."

In the fourth quarter the Company recorded a non-cash charge of $3.8 million for impairment of goodwill for its services business. This business experienced a decline in gross margin during the fourth quarter as the Company made it less expensive to license, maintain and distribute content on the Viewpoint...