Glowpoint sees bright prospects for video conferencing

//July 24, 2009

Provider of video communications solutions said it plans to report $7 million in revenue for its second quarter up from $6.5 million for the year-ago period.Glowpoint Inc. (OTC Bulletin Board: GLOW), in Hillside, said it expects to report its best quarterly revenue in company history thanks in part to cost-cutting measures by large enterprises.

Glowpoint, a provider of video communications solutions, said it plans to report $7 million in revenue for its second quarter ended June 30, up from $6.5 million for the year-ago period. The company expects to make the quarterly filing the week of August 10.

While the trimming of budgets often means less business, Joseph Laezza , Glowpoint co-chief executive, said video communications can be leveraged as an alternative to travel.

He said video communications historically has been more of a Ânice to haveÂ than an essential business tool. However, the entrance of larger players such as Cisco and Hewlett-Packard as providers of video communications solutions brought marketing muscle to the industry.

ÂYou have a perfect storm for an industry that has been fairly disappointing from a flat growth perspective over the years,Â Laezza said. ÂI see a tipping point for a technology that has not yet matured.Â

But he said video communications lends itself initially to larger enterprises with offices and partners spread across wide distances. Still, Âit is definitely moving down-market,Â he said.

Laezza said broader use of video conferencing among small businesses and even in the home is five years away.

E-mail Joao-Pierre Ruth at [email protected]