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SOURCE DirectView Holdings, Inc.
Consolidated Revenues Increase [63%] as Company Expands Marketing Efforts and Enters New Markets
NEW YORK, May 21, 2014 /PRNewswire/ -- DirectView Holdings, Inc. (OTCQB: DIRV) (the "Company" or "DirectView"), a company focused on ownership and management of leading video and security technology companies, today announced the Company's financial results for the first quarter of 2014.
Q1 2014 consolidated gross margins increased approximately [63%], up from approximately [40%] in Q1 2013
Q1 2014 consolidated gross profit increased approximately [160%] to [$90,000], up from [$34,763] in Q1 2013
Roger Ralston, CEO and Chairman of DirectView, commented: "Our performance improved significantly in the first quarter in several key financial measures. Consolidated gross profit and gross margins increased significantly as did overall revenue reflecting our increased marketing efforts. The Company believes it has made a number of strides in recent months, including a capital infusion, which we believe will enable us to increase revenues in our targeted business verticals such as education, transportation, hotel and hospitality, and the cannabis industry. We intend to work diligently to expand our business in these key areas to drive growth in the quarters and years to come."
Consolidated revenues for Q1 2014 were [$143,000], a [63%] increase compared to last year's first quarter consolidated revenues of [$88,000]. The increase was primarily due to new business and customers in our security and surveillance operations.
Consolidated gross profit increased by [160%] to [$90,000] with consolidated gross margins improving from [39.7%] of revenues in [Q1 2013 to 63.2% in Q1 2014]. Operating expenses increased to [$613,000 in Q1 2014 compared to $137,000 in Q1 2013]. The increase in operating expenses is mainly due to a [$387,500] increase in the value of stock based compensation, [$52,000] in marketing and public relations and a $38,000 increase in other SG&A expenses. The Company recorded an operating loss of [$523,000] in Q1 2014 compared to an operating loss of [$102,000] recorded in Q1 2013.
For the first quarter of 2014, the Company recorded a net loss attributable to common stockholders of [($34.6)] million or a loss of [($0.14)] per basic and diluted share on [247.8] million weighted average shares outstanding. The net loss of [$34.6] million in Q1 2014 consisted of approximately [$34] million in non-cash expenses related to outstanding convertible debt (mainly due to a [$34.0] million non-cash expense for the change in fair value of derivative liabilities), slightly offset by [$45,000] of other income. This compares to a loss of [($139,000 or [($0.00)] per basic and diluted share on [164.8] million weighted average shares outstanding in the first quarter of 2013.
Additional information can be found in the Company's Quarterly Report on Form 10-Q filed with the United States Securities and Exchange Commission on May 20, 2014.
About DirectView: DirectView Holdings, Inc., together with its subsidiaries, provides teleconferencing and services to businesses and organizations. The company operates in two divisions, Security (Video Surveillance) and Video Conferencing. The Security division offers technologies in surveillance systems providing onsite and remote video and audio surveillance, digital video recording, and services. It also sells and installs surveillance systems; and sells maintenance agreements. The company sells its products and services in the United States and internationally through direct sales force, referrals, and its Websites. The Video Conferencing division offers teleconferencing products and services that enable clients to conduct remote meetings by linking participants in geographically dispersed locations. It is involved in the sale of conferencing services based upon usage, the sale and installation of video equipment, and the sale of maintenance agreements. This division primarily provides conferencing products and services to numerous organizations ranging from law firms, banks, high tech companies and government organizations. For more information visit our websites at www.DirectViewSecurity.com / www.DirectViewInc.com
Safe Harbor Statement: The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the company's behalf. All statements, other than statements of historical facts, which address the company's expectations of sources of capital or which express the company's expectation for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. Such statements made by the company are based on knowledge of the environment in which it operates, but because of the possibility of unknown factors, as well as other factors beyond the control of the company, actual results may differ materially from the expectations expressed in the forward-looking statement. An investment in our common stock involves a significant degree of risk. You should not invest in our common stock unless you can afford to lose your entire investment. You should consider carefully all risk factors and other information in our annual report and quarterly filings before deciding to invest in our common stock. If any of the following risks and uncertainties develops into actual events, our business, financial condition or results of operations could be materially adversely affected and you could lose your entire investment in our company.
Forward Looking Statements: This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook of the Company's business and results of operations. By nature, these risks and uncertainties could cause actual results to differ materially from those indicated. Generally speaking, any statements using terms such as "will," "expect," "anticipate," or "may," or which otherwise predict or address future results or events, are likely to contain forward-looking statements. It is important to note that actual results may differ materially from what is indicated in any forward-looking statement. Readers should consider any forward-looking statements in light of factors that could cause actual results to vary. These factors are described in our filings with the SEC, and readers should refer to those filings, including Risk Factors described in those filings, in connection with any forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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