Sphere 3D Reports First Quarter Fiscal Year 2019 Financial Results
May 15 2019 - 3:30PM
Sphere 3D Corp. (NASDAQ: ANY), a company delivering
containerization, virtualization, and data management solutions,
today reported financial results for its first quarter ended March
31, 2019.
“This quarter was the first full quarter since
the divestiture of Overland in Q4 of 2018. We were able to reduce
our operating expense in Q1 2019 vs Q1 2018 by just over 50%, and
saw an increase in gross margins as well,” said Peter Tassiopoulos,
chief executive officer of Sphere3D, adding, “We continue to assess
the business for additional potential improvements to our operating
results.”
First Quarter 2019 Financial
Results:On November 13, 2018, the Company closed the
divestiture of its Overland subsidiary and related business. The
financial results of Overland for the first quarter of 2018 have
been reflected in the Company’s consolidated statements of
operations as discontinued operations. All results below exclude
discontinued operations. Our results for first quarter 2019
were as follows:
- Revenue for the first quarter of
2019 was $2.1 million, compared to $2.4 million for the first
quarter 2018.
- Gross margin for the first quarter
of 2019 was 32.6%, compared to 18.7% for the first quarter of
2018.
- Operating expenses for the first
quarter of 2019 were $2.4 million, compared to $4.9 million for the
first quarter of 2018.
- Share-based compensation expense
for the first quarter of 2019 was $124,000, compared to $821,000
for the first quarter of 2018. Depreciation and amortization was
$267,000 in the first quarter of 2019, compared to $1.5 million for
the first quarter of 2018.
- Net loss from continuing operations
for the first quarter of 2019 was $1.8 million, or a net loss of
$0.82 per share, compared to a net loss from continuing operations
of $5.1 million, or a net loss of $5.35 per share, for the first
quarter of 2018.
- Net loss from discontinued
operations for the first quarter of 2018 was $1.7 million, or a net
loss of $1.76 per share.
Investor Conference Call:
Sphere 3D will not be hosting a first quarter fiscal year 2019
earnings conference call.
About Sphere 3D:Sphere 3D
Corp. (NASDAQ: ANY) delivers containerization, virtualization,
and data management solutions via hybrid cloud, cloud and
on-premise implementations through its global reseller network and
professional services organization. Sphere 3D has a portfolio
of brands, including HVE ConneXions, UCX ConneXions, and
SnapServer® dedicated to helping customers achieve their IT goals.
For more information, visit www.sphere3d.com. Follow us on
Twitter @Sphere3D and @HVEconneXions
Safe Harbor Statement: This
press release contains forward-looking statements that involve
risks, uncertainties, and assumptions that are difficult to
predict. Actual results and the timing of events could differ
materially from those anticipated in such forward-looking
statements as a result of risks and uncertainties including,
without limitation, our inability to obtain additional debt or
equity financing; any increase in our cash needs; the
Company’s ability to maintain listing with the NASDAQ Capital
Market; market adoption and performance of our products; the level
of success of our collaborations and business partnerships;
possible actions by customers, partners, suppliers, competitors or
regulatory authorities; and other risks detailed from time to time
in our periodic reports contained in our Annual Information Form
and other filings with Canadian securities regulators
(www.sedar.com) and in prior periodic reports filed with
the United States Securities and Exchange Commission
(www.sec.gov). Sphere 3D undertakes no obligation to
update any forward-looking statement, whether written or oral, that
may be made from time to time, whether as a result of new
information, future developments or otherwise, except as required
by law.
Investor Contact:Kurt
Kalbfleisch+1-858-495-4211Investor.relations@sphere3d-overland.com
|
SPHERE 3D
CORP. |
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS |
(In thousands, except share and per
share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
(Unaudited) |
Revenue |
$ |
2,130 |
|
|
$ |
2,373 |
|
Cost of
revenue |
|
1,435 |
|
|
|
1,930 |
|
Gross
profit |
|
695 |
|
|
|
443 |
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
Sales and marketing |
|
453 |
|
|
|
781 |
|
|
Research and
development |
|
697 |
|
|
|
1,111 |
|
|
General and
administrative |
|
1,252 |
|
|
|
3,000 |
|
|
|
|
2,402 |
|
|
|
4,892 |
|
Loss from
operations |
|
(1,707 |
) |
|
|
(4,449 |
) |
|
Interest expense -
related party |
|
(142 |
) |
|
|
(558 |
) |
|
Interest expense |
|
(3 |
) |
|
|
- |
|
|
Other income (expense),
net |
|
8 |
|
|
|
(126 |
) |
Net loss
from continuing operations |
|
(1,844 |
) |
|
|
(5,133 |
) |
Net loss
from discontinued operations |
|
- |
|
|
|
(1,690 |
) |
Net
loss |
$ |
(1,844 |
) |
|
$ |
(6,823 |
) |
|
|
|
|
|
Net loss per
share: |
|
|
|
|
Continuing
operations |
$ |
(0.82 |
) |
|
$ |
(5.35 |
) |
|
Discontinued
operations |
|
- |
|
|
|
(1.76 |
) |
|
Net loss per share basic
and diluted |
$ |
(0.82 |
) |
|
$ |
(7.11 |
) |
|
|
|
|
|
Shares used
in computing net loss per share: |
|
|
|
|
Basic and diluted |
|
2,236,590 |
|
|
|
959,828 |
|
|
|
|
|
|
|
SPHERE 3D
CORP. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
ASSETS |
|
|
|
Cash and
cash equivalents |
$ |
139 |
|
|
$ |
341 |
|
Accounts
receivable, net |
|
859 |
|
|
|
1,142 |
|
Inventories |
|
1,247 |
|
|
|
1,230 |
|
Other
current assets |
|
596 |
|
|
|
784 |
|
|
Total current
assets |
|
2,841 |
|
|
|
3,497 |
|
Investment
in affiliate |
|
2,100 |
|
|
|
2,100 |
|
Property and
equipment, net |
|
5 |
|
|
|
6 |
|
Intangible
assets, net |
|
3,101 |
|
|
|
3,348 |
|
Goodwill |
|
1,385 |
|
|
|
1,385 |
|
Other
assets |
|
1,114 |
|
|
|
950 |
|
|
Total assets |
$ |
10,546 |
|
|
$ |
11,286 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
DEFICIT |
|
|
|
Current
liabilities |
$ |
9,594 |
|
|
$ |
9,639 |
|
Series A
redeemable preferred shares |
|
6,701 |
|
|
|
6,571 |
|
Other
long-term liabilities |
|
1,433 |
|
|
|
683 |
|
Total
shareholders' deficit |
|
(7,182 |
) |
|
|
(5,607 |
) |
|
Total liabilities and
shareholders' deficit |
$ |
10,546 |
|
|
$ |
11,286 |
|
|
|
|
|
|
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