Wizzard Software Announces 2011 Financial Results

Wizzard Software (NYSE Amex: WZE) announced 2011 financial results today, recording overall revenues of $6,540,217 in 2011, an increase of $1,000,095 or approximately 18% from revenues of $5,540,122 in 2010. The overall increase in revenue for 2011 reflects increased revenue across all business segments. Wizzard’s 2011 Speech business revenue grew 3%; Healthcare grew 11% and our Media business revenue increased by 40%.

For the fourth quarter of 2011, Wizzard recorded overall revenues of $1,820,948, an increase of 26% from revenues of $1,448,401 in the fourth quarter of 2010. Our Media business revenues increased 45% in the fourth quarter when compared to the fourth quarter of 2010 with Healthcare up 20% and our Speech business up 6%.

Wizzard generated a gross profit of $3,064,831 in 2011, versus a gross profit of $2,009,019 in 2010, an increase of 53%. For the fourth quarter of 2011, Wizzard generated a gross profit of $911,729 versus a gross profit of $549,938 in 2010, an increase of 66%, led by our Media business, which saw an increase in gross profit of 156% in the fourth quarter of 2011.

Excluding the non-cash charge for the impairment of goodwill, basic and diluted loss per common share was $.07 for the fourth quarter of 2011, versus $.66 for the fourth quarter of 2010. The $.07 loss per common share for the fourth quarter of 2011 does include other non-cash expenses and acquisition related due diligence costs. Excluding the non-cash charge for the impairment of goodwill, Basic and diluted loss per common share was $.24 in 2011 versus $.76 for 2010.

Net loss available to common stockholders increased 143% to $9,979,883 in 2011, as compared to a net loss available to common stockholders of $4,110,459 in 2010. This increase in net loss available to common stockholders for 2011 was primarily due to the recording of $7,785,757 non-cash expense for impairment of goodwill. Basic and diluted loss per common share was $1.31 in 2011, compared to $0.76 in 2010.

“We were pleased to see continued growth across our three business segments and we are very excited about our planned acquisition of FAB which, when completed, will create a major digital media distribution company,” said Chris Spencer, Wizzard Software CEO. “While the acquisition process has taken longer than we originally projected, management from both companies remain committed to the plan and we expect to enter into definitive contracts any day. The delays have not been due to material differences but simply logistics and both companies commitment to a fair and equitable partnership. I believe we have reached that point and we are now expediting the final agreements.”

Wizzard’s Media business experienced its highest level of audience and episode requests in the fourth quarter and throughout the entire year of 2011. With the new ability to charge for podcast episodes and create ongoing subscription packages through mobile Apps and websites, combined with the continued growth of the network and audience, Management believes we have found a working business model for achieving growth and profitability for our Media business going forward. We are very interested to see how our business grows as we begin expanding the network reach via Facebook in the next several weeks.”

For 2011, the Wizzard Media Network, through our premier podcast-hosting service Libsyn, reached a record 21 million monthly unique audience members and saw 40% revenue growth in our Media division.

Management stated that it continues to see very positive trends in its App business in terms of early in-App purchasing numbers and subscription purchases. The first test of a complete set of its current subscription/premium upgrade products shows excellent adoption rates and has been expanding to other top level podcast shows in the last several months.

“We believe Wizzard is very well positioned for the mobile entertainment lifestyle shift currently taking shape and believe we can accelerate the growth of our media business to keep up with the rapidly changing entertainment consumption habits of consumers worldwide,” said Laurie Sims, President of Wizzard Media. “It is Wizzard’s mission to become the leading online content distribution and monetization service for the serious podcast publisher by providing state of the art distribution services, unique monetization solutions and compelling audience engagement experiences. This is the future consumption and monetization model for online media and Wizzard is working to deliver it today.”

The previously mentioned numbers and statements are highlights from Wizzard’s 2011, 10K filing. For a complete and detailed financial description of Wizzard Software Corporation, please visit www.sec.gov, where all of Wizzard’s SEC filings can be found.

Wizzard’s audited financial statements for the fiscal year ended December 31, 2011, included in the Company's Annual Report on Form 10-K, filed on March 30, 2012, contained a going concern qualification from its independent registered auditing firm, Gregory & Associates, LLC.

This announcement is required by NYSE Amex Company Guide Section 610(b), which requires separate disclosure of receipt of an audit opinion containing a going concern qualification. This announcement does not represent any change or amendment to the company's financial statements or to its Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

About Wizzard Software

Through its Media business segment, Wizzard Media provides podcast publishers with distribution and monetization services. Our clients include Microsoft, National Geographic, Harvard Business Review, NPR and more than 14,000 others who use Wizzard Media products to measure their podcast audience, deliver popular audio and video entertainment and monetize their content through advertising and App sales. In 2011, the Wizzard Media Network reached over 20 million monthly unique users worldwide through iPods, iPhones, iTunes, Zunes, Androids, BlackBerrys and many other devices and destinations. Wizzard Media is part of a publicly-held, Pittsburgh based company with Software and Healthcare business segments, thousands of shareholders and a world-class team. Visit us on the web at www.wizzardsoftware.com/media, email us at contact@wizzard.tv.

Legal Notice

Legal Notice Regarding Forward-Looking Statements: "Forward-looking Statements" as defined in the Private Securities litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies and acts of terror against the United States.

Copyright Business Wire 2010

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