SOURCE: AudioEye, Inc.

May 15, 2014 07:30 ET

AudioEye, Inc. Reports First Quarter Revenue of $1.032 Million vs. $0.2 Million in Prior-Year Period

Annualized Revenue "Run Rate" Approximates $4.1 Million in Most Recent Quarter

TUCSON, AZ--(Marketwired - May 15, 2014) -  AudioEye®, Inc. (OTCQB: AEYE) ("AudioEye"), creator of the Audio Internet® patented audio browsing and automated publishing technology platform, today announced that its revenue for the first quarter of 2014 totaled $1,032,886. This represented an increase in recognizable revenue of approximately 360% when compared with first quarter 2013 revenue of $224,297.

On a sequential basis, first quarter 2014 revenue increased 37% relative to fourth quarter 2013 revenue of $752,092. In addition to this quarter-over-quarter revenue growth, AudioEye increased its gross profit margin from 76% of sales in the fourth quarter to 96% of sales in the most recent quarter.

The Company's annualized revenue "run rate" in the first quarter of 2014 approximated $4.1 million.

Costs of services totaled $41,153 in the first quarter of 2014, compared with $45,023 for the quarter ended March 31, 2013. Gross profit of $991,733 in the first quarter of 2014 compared with gross profit of $179,274 for the quarter ended March 31, 2013.

Selling and marketing costs for the quarters ended March 31, 2014 and 2013 totaled $495,383 and $7,750, respectively.

Research, technology and development costs for the quarters ended March 31, 2014 and 2013 totaled $130,624 and $0, respectively.

General and administrative expenses increased to $1,667,600 in the quarter ended March 31, 2014, compared with $444,050 in the prior-year period. The increase in general and administrative expenses consisted of $807,356 in non-cash stock option compensation expense and $416,194 in other expense increases primarily related to changes in staffing, legal and other expense categories necessary to support AudioEye's anticipated growth.

Depreciation and amortization costs for the quarters ended March 31, 2014 and 2013 totaled $99,897 and $89,593, respectively.

AudioEye recorded a net loss of ($1,408,754), or ($0.03) per share, in the first quarter of 2014, versus a net loss of ($396,086), or ($0.01) per share, in the first quarter of 2013.

AudioEye also achieved the following key milestones during the first quarter of 2014:

  • Developed an enterprise and government sales pipeline that management believes will provide the necessary foundation to establish AudioEye as the leading solutions provider, thought leader and largest producer in the multi-billion dollar technology accessibility compliance market.

  • Ended the quarter with an enterprise and government sales pipeline in excess of $50 million of identified opportunities now under various stages of contract negotiation, management, development and AudioEye's sales process.

  • Launched its 2014 U.S. government partnership sales and business development initiative and signed contracts with several large well-regarded reseller partners to accelerate the accomplishment of strategic sales goals.

  • Developed revenue-producing technology licensing contracts and launched sales activities within the behavioral healthcare, U.S. government and enterprise markets.

  • Established state government sales initiative and promoted Richard Keppler to a dedicated sales role focused on government agencies in the 50 U.S. states.

  • Received $3.5 million of additional equity growth financing at the beginning of the quarter.

  • Trading in AEYE shares transitioned from the OTC BB to the OTC US market effective February 13, 2014.

  • Commenced the process and steps necessary to uplist AudioEye's common stock to the NASDAQ Capital Market as soon as practicable.

  • Launched its Audio Internet® Version 5.0 Platform.

  • Installed Audio Internet® 5.0 onto the University of Arizona's website.

  • Named Paul Arena as AudioEye's Executive Chairman.

  • Welcomed Sandy Purcell as the newest independent member of AudioEye's Board of Directors.

"Our first quarter revenue growth was in line with management's expectations and illustrates the traction that our business strategy and patented technology are beginning to achieve in the marketplace," stated Nathaniel Bradley, AudioEye's Chief Executive Officer. "By addressing the challenges of meeting federal accessibility mandates for our government, institutional, educational, healthcare and commercial customers with our patented Audio Internet technology platform, we expect quarterly revenues to accelerate during the balance of the year. Our annualized revenue 'run rate' in the first quarter exceeded $4 million, and we believe AudioEye has the potential to achieve an annualized revenue 'run rate' of $8 million or higher within the next two quarters."

Investor Conference Call

AudioEye has scheduled an investor conference call for 11:00 a.m. Eastern Time today, Thursday, May 15, 2014 to discuss these operating results and other topics of interest.

Shareholders and other interested parties may participate in the conference call by dialing 877-374-8416 (international/local participants dial 412-317-6716) and requesting participation in the "AudioEye Conference Call" a few minutes before 11:00 a.m. EDT on Thursday, May 15, 2014.

A replay of the conference call will be available one hour after the call through Thursday, May 22, 2014 at 9:00 a.m. EDT by dialing 877-344-7529 (international participants dial 412-317-0088) and entering the conference ID # 10045626.

About AudioEye, Inc.

Incorporated in 2005, AudioEye focuses on working to improve the mobility, usability and accessibility of all Internet-based content through the development, sale, licensing and use of its proprietary accessibility technologies. Audio Internet® is a technology that utilizes patented architecture to deliver a fully accessible audio equivalent of a visual or mobile website in a compliant format that can be navigated, utilized, interacted with and transacted from, without the use of a monitor or mouse, by individuals with visual impairments. For individuals with hearing impairments, Audio Internet® provides captioning for websites, and the challenges of reaching those with other impairments are also addressed by the technology platform.

Complete with an ever-growing suite of utilities tailored to the needs of different disabled users, the AudioEye® Audio Internet® Accessibility Platform is a fully scalable cloud-based solution designed and developed to meet the needs and compliance mandates for an ever-growing demographic.

AudioEye's common stock trades on the OTCQB under the symbol "AEYE". Please visit www.audioeye.com for more information.

Forward-Looking Statements 

This release includes forward-looking statements contained within Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding AudioEye's expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions, are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond AudioEye's control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in AudioEye's Form 10-K and other report filings with the SEC. AudioEye is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

(Financial Highlights Follow)

   
AUDIOEYE, INC.  
CONSOLIDATED BALANCE SHEETS  
(UNAUDITED)  
    March 31, 2014     December 31, 2013  
ASSETS                
Current Assets                
  Cash   $ 492,718     $ 1,847,004  
  Accounts receivable, net     1,295,051       569,297  
  Related party receivables     83,375       82,250  
  Prepaid assets & security deposits     49,643       -  
    Total Current Assets     1,920,787       2,498,551  
Property and equipment, net     3,048       3,847  
Intangible assets, net     3,830,823       3,073,945  
Goodwill     700,528       700,528  
  Total Assets     6,455,186     $ 6,276,871  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT                
  Current Liabilities                
  Accounts payable and accrued expenses   $ 1,275,184     $ 416,531  
  Notes and loans payable-current, net of discount of $0 and $1,155, respectively     24,000       172,845  
  Related party payable     87,000       243,424  
  Related party loans     35,000       35,000  
Total Current Liabilities     1,421,184       867,800  
                 
  Long Term Liabilities                
  Notes and loans payable-long term     69,800       79,800  
    Total Long Term Liabilities     69,800       79,800  
Total Liabilities     1,490,984       947,600  
                 
  STOCKHOLDERS' EQUITY                
  Preferred stock, $0.00001 par value, 10,000,000 shares authorized, none issued and outstanding, as of March 31, 2014 and December 31, 2013, respectively     -       -  
  Common stock, $0.00001 par value, 250,000,000 shares authorized, 55,399,839 and 53,239,369 issued and outstanding, as of March 31, 2014 and December 31, 2013 respectively     554       532  
  Treasury stock     (623,000 )     (623,000 )
  Additional paid in capital     14,274,875       13,231,212  
    Accumulated deficit     (8,688,227 )     (7,279,473 )
    Total Stockholders' Deficit     4,964,202       5,329,271  
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $ 6,455,186     $ 6,276,871  
                 
                 
                 
AUDIOEYE, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(UNAUDITED)  
   
    For the Three Months ended  
    March 31, 2014     March 31, 2013  
                 
                 
Revenue   $ 1,029,761     $ 223,172  
Revenue from related party     3,125       1,125  
Total revenues     1,032,886       224,297  
                 
Cost of revenues     41,153       45,023  
                 
Gross profit     991,733       179,274  
                 
Operating expenses:                
Selling & marketing     495,383       7,750  
Research & development     130,624       -  
General and administrative expenses     1,667,600       444,050  
Amortization & depreciation     99,897       89,593  
Total operating expenses     2,393,504       541,393  
                 
Operating income (loss)     (1,401,771 )     (362,119 )
                 
Other income (expense)                
  Unrealized gain (loss) on marketable securities     -       (9,000 )
  Interest expense     (6,983 )     (24,967 )
  Total other income (expense)     (6,983 )     (33,967 )
                   
  Net (loss)   $ (1,408,754 )   $ (396,086 )
                 
Net (loss) per common share - basic and diluted   $ (0.03 )   $ (0.01 )
                 
Weighted average common shares outstanding - basic and diluted     54,215,367       36,965,057  
                 

Contact Information

  • Contact:

    For further information, please contact:

    Nathaniel Bradley
    CEO
    AudioEye, Inc.
    (866) 331-5324

    or

    RJ Falkner & Company, Inc.
    Investor Relations Counsel
    (830) 693-4400
    Email Contact