Northern, WI 7/17/12 (StreetBeat) – LiveDeal, Inc. (Nasdaq:LIVE) issued a letter today to shareholders from President and CEO Jon Isaac. The following letter outlines LiveDeal’s recent achievements, strategic business plans and market opportunities for growth.
The stock has plummeted 33% within the past two weeks, currently trading at $9.67. Jon Isaac seeks to provide an explanation and show opportunities of growth through the following letter.
Dear Fellow Shareholders:
I would like to start by saying that I am honored to serve as LiveDeal's President and CEO. Since January of this year, LiveDeal has made tremendous progress, including a significant reorganization of our corporate activities and the development of a new suite of products and solutions to bring to our customers.
First, I'd like to share with you some of our corporate milestones achieved year-to-date:
• We have focused on cleaning up our balance sheet and in the process retired debt with an 18% interest rate. All of the company's assets were secured by this note. I am pleased to announce that this note has been paid in full and our assets have been released from this lender.
• We are now fully compliant with all the requirements pertaining to our Nasdaq listing.
• In addition to relocating offices in Las Vegas, we opened an office in San Diego, California. Combined, we have reduced overhead costs and expenditures to achieve greater operational efficiencies.
• Following 39 consecutive months of losses, I am happy to announce that LiveDeal achieved profitability in the month of April, 2012. This result is based on unaudited financials, and does not predict any future performance of the Company.
The LiveDeal Mission -- To Provide Local Commerce Solutions for Local Businesses Worldwide
Second, I'd like to discuss our mission for the future and the opportunities that we are readily capitalizing on. LiveDeal has a long history of serving local businesses. We wish to remain in this space because we believe there exists tremendous opportunity.
The local commerce segment is estimated to be in the hundreds of billions of dollars. However, in order for us to succeed in the long term, we need to add value for merchants and continue to cultivate our relationships with them. Our business strategy is built around the following:
• Mobile applications will be our primary focus for product development.
• We are developing strategic relationships with larger, well-known companies in the industry that can add value to our local merchant customer base.
• We plan to leverage these strategic relationships and alliances to move quickly to market a suite of state-of-the-art local commerce solutions based on patentable technology.
• We will target our existing subscribers, as well as new customers, for our product line.
• We anticipate to finalize discussions with several large strategic partners, and announce formal agreements with them in the very near future.
LiveDeal: Not a 'Daily-Deal' Company
Third, I want to be clear that LiveDeal is not a "daily deal" company, nor do we have plans to enter into this market segment at this time. Based on our research, we do not believe that the daily deal model is a successful or profitable one. We do not believe that taking 50% of merchants' revenue is a long term value add proposition for our clients. Instead, we have decided to focus on adding value for our merchants. We are in the late stages of releasing a suite of mobile technology applications, which may present ground-breaking solutions to better serve our local business customers. We anticipate that these new products can deliver significant revenue opportunities for our customers.
I believe that we are building a very strong foundation from which our targeted business objectives can be achieved. I hope that you will share in my excitement for LiveDeal's future outlook. I am extremely happy to be part of a company poised for tremendous growth. As always, thank you for your continued support and interest in our Company.
President & CEO
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