iLinc Communications Announces Fiscal 2005 Second Quarter Results

Business Wire, Nov 15, 2004

PHOENIX -- iLinc Communications, Inc. (AMEX:ILC):

Fiscal 2005 Second Quarter Highlights:

--Added more than 100 new Web conferencing customers

--Doubled revenues over previous year period

--Integrated audio conferencing operations from recent acquisition

--Realized sales success from Web and audio conferencing product synergies

iLinc Communications, Inc. (AMEX:ILC), developers of one of the most feature-rich and secure Web conferencing and integrated audio conferencing solutions available, today announced results for the fiscal 2005 second quarter ended September 30, 2004.

For the three months ended September 30, 2004, revenues from continuing operations increased 96% to $2.7 million as compared with revenues of $1.4 million for the three months ended September 30, 2003. For the three months ended September 30, 2004, the Company reported a net loss from continuing operations of $1.8 million, or $0.08 per basic and diluted share, as compared with a net loss from continuing operations of $590,000, or $0.05 per basic and diluted share, during the three months ended September 30, 2003.

For the first half of fiscal 2005, revenues from continuing operations increased 72% to $4.7 million as compared with revenues of $2.7 million for the first half of fiscal 2004. For the six months ended September 30, 2004, the Company reported a net loss from continuing operations of $3.3 million, or $0.15 per basic and diluted share, as compared with a net loss from continuing operations of $724,000, or $0.06 per basic and diluted share, during the same six-month period in 2003.

Commenting on the second quarter results, James M. Powers, Jr., president and chief executive officer of iLinc Communications, said, "We created a strong pipeline of new opportunities, accelerated our penetration of strategic Web conferencing accounts and are encouraged with our progress. This quarter realized the successful integration of our recently acquired audio conferencing operations. We expect the synergies of this audio conferencing acquisition with our Web conferencing product offerings to make a powerful combination for substantial expansion in our revenues in the upcoming quarters."

John S. ("Jack") Hodgson, senior vice president and chief financial officer of iLinc Communications, added, "Our continued expansion of revenue is a demonstration of growing product acceptance. The loss for the quarter was due primarily to continued investment in infrastructure, sales and marketing, and cost associated with integrating our new acquisition. With much of the one-time expense behind us, we have already reduced operating costs while continuing investments in sales and marketing activities to expand revenues."

A listen-only simulcast and 30-day replay of iLinc Communications' fiscal 2005 second quarter conference call will be available online through the Company's Web site at www.ilinc.com or www.fulldisclosure.com beginning at 11:00 a.m. Eastern time on Monday, November 15, 2004.

About iLinc Communications, Inc.

iLinc Communications, Inc. is a leading developer and provider of hosted and premise-based Web and audio conferencing software for two-way, highly secure and cost-effective collaborative online meetings, presentations, and training sessions. iLinc's family of software products, including MeetingLinc, LearnLinc, ConferenceLinc, and SupportLinc, is used by financial services, technology, and professional services firms worldwide in sales, HR and training, marketing, and information technology applications.

Through the recent Glyphics acquisition, the Company now also delivers comprehensive audio conferencing products and services that help businesses provide daily conference calls, virtual meetings, corporate events, and distance learning programs.

More information about the Phoenix-based company may be found on the Web at http://www.ilinc.com.

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risk and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Factors that could contribute to such differences include the rate of acceptance of the Company's products and services by customers, changes in the Web conferencing and audio conferencing market in general, the acceptance of new products, the Company's need for working capital, the result of pending litigation, the competition the Company faces from larger and more well-capitalized competitors, and other matters more fully disclosed in the Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates and expectations as of the date of the press release, and subsequent events and developments may cause the Company's estimates and expectations to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates and expectations of its future financial performance as of any date subsequent to the date of this press release.