Delivered on Second Quarter Financial Commitments
Executing on Transformational Plan to Return to Sustainable Growth
CHARLESTON, S.C., Aug. 03, 2022 (GLOBE NEWSWIRE) -- Benefitfocus, Inc. (NASDAQ: BNFT), an industry-leading cloud-based benefits administration technology company that simplifies benefits administration for employers, health plans and brokers, today announces its second quarter 2022 financial results:
Financial Highlights for the Second Quarter 2022:
- Revenue of $56.6 million was at the high end of the guidance range of $55 to $57 million.
- Adjusted EBITDA of $6.2 million was above the high end of the guidance range of $4 to $6 million.
- GAAP net loss available to common stockholders was ($13.8) million, compared to ($16.6) million in the second quarter of 2021.
- GAAP EPS was ($0.40) in the second quarter of 2022 and non-GAAP EPS was ($0.10).
Operational Highlights for the Second Quarter 2022:
- Launched a new product called Claims Audit & Recovery Services, which is designed to analyze claims data to identify errors and waste, and seek reimbursement.
- Entered into a strategic sales partnership with Lockton, expected to drive further penetration into the employer segment.
- Appointed Ed Rumzis as our new Chief Technology Officer starting on August 8, adding another seasoned industry veteran to the leadership team.
“During the second quarter, the team continued to demonstrate a high say:do ratio against our three-pillar transformation plan.” said Benefitfocus President and Chief Executive Officer, Matt Levin. “We are establishing relationships with key players in the ecosystem and seeing early indicators that our go-to-market strategy is working, both a testament to our unwavering focus on service excellence.”
“We were once again able to deliver financial results at or better than our guidance ranges for this quarter,” said Alpana Wegner, Chief Financial Officer. “We are pleased with the progress we are making on executing our strategy to drive sustainable growth and are well-positioned to unlock long-term value for our shareholders.”
Second Quarter 2022 Financial Highlights
Revenue
- Total revenue was $56.6 million, down approximately 7% compared to the second quarter of 2021.
- Software services, which is comprised of both subscription and platform revenue, was $48.6 million, down 3% compared to the second quarter of 2021.
- Subscription revenue was $42.0 million, down 5% compared to the second quarter of 2021.
- Platform revenue was $6.6 million, up 12% compared to the second quarter of 2021.
- Professional services revenue was $8.0 million, down 25% compared to the second quarter of 2021.
Net Loss
- GAAP net loss was ($12.2) million, compared to ($15.0) million in the second quarter of 2021. GAAP net loss per share was ($0.40), based on ($13.8) million net loss available to common stockholders and 34.0 million basic and diluted weighted average common shares outstanding. This compares to GAAP net loss per share of ($0.50) for the second quarter of 2021, based on ($16.6) million net loss available to common stockholders and 33.1 million basic and diluted weighted average common shares outstanding.
Non-GAAP Net Loss, Adjusted EBITDA and Free Cash Flow
- Non-GAAP net loss available to common stockholders was ($3.5) million for the second quarter of 2022, compared to ($5.9) million in the second quarter of 2021. Non-GAAP net loss per share was ($0.10) based on both 34.0 million basic and diluted weighted average common shares outstanding. This compares to non-GAAP net loss of ($0.18) in the second quarter of 2021, based on both 33.1 million basic and diluted weighted average common shares outstanding.
- Adjusted EBITDA was $6.2 million, compared to $9.6 million in the second quarter of 2021.
- Cash used in operations was ($0.7) million and free cash flow was ($2.1) million, compared to cash from operations of $9.2 million and $6.6 million of free cash flow in the second quarter of 2021.
See important disclosures about non-GAAP measures, and a reconciliation of them to GAAP, below.
Balance Sheet
Cash and cash equivalents at June 30, 2022, totaled $51.5 million, compared to cash and cash equivalents and marketable securities of $68.1 million at the end of the of 2021, a decline driven by the timing of working capital changes.
The full $50.0 million line of credit remains available to the company.
Business Outlook
Benefitfocus is providing guidance for the third quarter and full year 2022 as indicated below.
Third Quarter 2022
- Total revenue is expected to be in the range of $55 million to $57 million.
- Adjusted EBITDA is expected to be in the range of $4 million to $6 million.
- Non-GAAP net loss available to common stockholders is expected to be between ($6.0) million and ($4.0) million, or between ($0.18) and ($0.12) per share based on 34.0 million basic and diluted weighted average shares outstanding.
Full-Year 2022
- Total revenue is expected to be in the range of $252 million to $258 million.
- Adjusted EBITDA is expected to be in the range of $44 million to $50 million.
- Free cash flow is expected to be in the range of $18 million to $24 million.
Adjusted EBITDA and free cash flow guidance excludes the impact of restructuring and impairment charges.
Management has not reconciled forward-looking non-GAAP net loss, adjusted EBITDA or free cash flow to their most directly comparable GAAP measure of GAAP net loss or GAAP operating cash flows. This is because we cannot predict with reasonable certainty the ultimate outcome of the various necessary GAAP components of such reconciliations, including, for example, those related to certain impairment charges, acquisition transactions and integration, costs not core to our business or others that may arise during the year, without unreasonable effort. These components and other factors could materially impact the amount of future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts. See below for additional important disclosures regarding our non-GAAP financial measures.
Conference Call Details:
In conjunction with this announcement, Benefitfocus will host a conference call to discuss the company’s financial results and business outlook on Wednesday, August 3, 2022, at 5:00 p.m. ET. To access this call, dial (800) 941-4658 (domestic) or +1 (416) 981-9033 (international). A live webcast of the conference call will be available on the Investor Relations page of the company’s website at http://investor.benefitfocus.com/. After the conference call, a replay will be available until August 10, 2022, at 11:59 p.m. ET and can be accessed by dialing (844) 512-2921 (domestic) or +1 (412) 317-6671 (international) with passcode 22019867.
About Benefitfocus
Benefitfocus (NASDAQ: BNFT) is a cloud-based benefits administration technology company committed to helping our customers, and the people they serve, get the most out of their health care and benefit programs. Through exceptional service and innovative SaaS solutions, we aim to be the safest set of hands for our customers helping to simplify the complexity of benefits administration while delivering an experience that engages people and unlocks the potential for better health and improved outcomes. Our mission is simple: to improve lives with benefits.
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures in this release, including non-GAAP gross profit, operating income/loss, net loss/income, net loss/income per common share, adjusted EBITDA and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.
Non-GAAP gross profit, operating income/loss, net loss/income and net loss/income per common share exclude stock-based compensation expenses, amortization of acquisition-related intangible assets, transaction and acquisition-related costs expensed, expense related to the impairment of goodwill, intangible assets and long-lived assets, gain or loss on extinguishment of debt, change in fair value of contingently returnable consideration and costs not core to our business. We define adjusted EBITDA as net loss before net interest, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense; transaction and acquisition-related costs expensed; restructuring costs; impairment of goodwill, intangible assets and long-lived assets; gain or loss on extinguishment of debt; other costs not core to our business; loss on settlement of lawsuits; and, now, changes in fair value of contingently returnable consideration. The revision to our definition of adjusted EBITDA had no impact on our reported adjusted EBITDA in prior periods. We define free cash flow as cash provided by or used in operating activities less capital expenditures, adjusted to eliminate cash paid for restructuring costs. Please note that other companies might define their non-GAAP financial measures differently than we do.
Management presents these non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, their inclusion should provide consistency in the company’s financial reporting.
Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release, including in the accompanying tables.
Safe Harbor Statement
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: our need to increase sales and achieve consistent GAAP profitability; fluctuations in our financial results; our ability to maintain our culture and recruit, integrate and retain qualified personnel, including on our board of directors; our ability to compete effectively and implement our growth strategy; our reliance on channel relationships; market developments and opportunities; the need to innovate and provide useful products and services; risks related to changing healthcare and other applicable regulations; the immature and volatile nature of the market for our products and services; privacy; security and other risks associated with our business; management of growth; volatility and uncertainty in the global economy and financial markets in light of the evolving COVID-19 pandemic and war in Ukraine; and the other risk factors set forth from time to time in our SEC filings, copies of which are available free of charge within the Investor Relations section of the Benefitfocus website at http://investor.benefitfocus.com/sec-filings or upon request from our Investor Relations Department. Benefitfocus assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Source: Benefitfocus, Inc.
Media Contact:
843-981-8898
pr@benefitfocus.com
Investor Relations:
Doug Kuckelman
843-790-7460
ir@benefitfocus.com
| Benefitfocus, Inc. Unaudited Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 56,587 | $ | 60,904 | $ | 117,812 | $ | 125,967 | ||||||||
| Cost of revenue(1)(2) | 29,095 | 28,030 | 58,981 | 56,623 | ||||||||||||
| Gross profit | 27,492 | 32,874 | 58,831 | 69,344 | ||||||||||||
| Operating expenses:(1)(2)(3) | ||||||||||||||||
| Sales and marketing | 10,643 | 10,921 | 20,567 | 21,812 | ||||||||||||
| Research and development | 12,249 | 11,103 | 23,406 | 21,935 | ||||||||||||
| General and administrative | 13,517 | 13,571 | 22,806 | 23,433 | ||||||||||||
| Impairment of lease right-of-use assets | 1,769 | 4,003 | 1,769 | 4,003 | ||||||||||||
| Change in fair value of contingently returnable consideration | (719 | ) | – | (719 | ) | – | ||||||||||
| Restructuring costs | – | 2,727 | 1,006 | 4,127 | ||||||||||||
| Total operating expenses | 37,459 | 42,325 | 68,835 | 75,310 | ||||||||||||
| Loss from operations | (9,967 | ) | (9,451 | ) | (10,004 | ) | (5,966 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 72 | 54 | 84 | 111 | ||||||||||||
| Interest expense | (2,476 | ) | (5,646 | ) | (4,958 | ) | (11,201 | ) | ||||||||
| Other income | 236 | 64 | 482 | 22 | ||||||||||||
| Total other expense, net | (2,168 | ) | (5,528 | ) | (4,392 | ) | (11,068 | ) | ||||||||
| Loss before income taxes | (12,135 | ) | (14,979 | ) | (14,396 | ) | (17,034 | ) | ||||||||
| Income tax expense | 29 | 41 | 45 | 83 | ||||||||||||
| Net loss | (12,164 | ) | (15,020 | ) | (14,441 | ) | (17,117 | ) | ||||||||
| Preferred dividends | (1,600 | ) | (1,600 | ) | (3,200 | ) | (3,200 | ) | ||||||||
| Net loss available to common stockholders | $ | (13,764 | ) | $ | (16,620 | ) | $ | (17,641 | ) | $ | (20,317 | ) | ||||
| Comprehensive loss | $ | (12,164 | ) | $ | (15,020 | ) | $ | (14,441 | ) | $ | (17,117 | ) | ||||
| Net loss per common share: | ||||||||||||||||
| Basic and diluted | $ | (0.40 | ) | $ | (0.50 | ) | $ | (0.52 | ) | $ | (0.62 | ) | ||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 34,028,422 | 33,080,257 | 33,764,103 | 32,787,162 | ||||||||||||
| (1) Stock-based compensation included in above line items: | ||||||||||||||||
| Cost of revenue | $ | 1,008 | $ | 638 | $ | 1,204 | $ | 964 | ||||||||
| Sales and marketing | 1,110 | 927 | 1,746 | 1,507 | ||||||||||||
| Research and development | 783 | 503 | 1,014 | 621 | ||||||||||||
| General and administrative | 2,414 | 2,308 | 2,540 | 2,807 | ||||||||||||
| (2) Amortization of acquired intangible assets included in above line items: | ||||||||||||||||
| Cost of revenue | $ | 610 | $ | 336 | $ | 1,232 | $ | 673 | ||||||||
| Sales and marketing | 131 | 77 | 273 | 153 | ||||||||||||
| Research and development | 233 | 113 | 449 | 226 | ||||||||||||
| General and administrative | 99 | 43 | 192 | 85 | ||||||||||||
| (3) Transaction and acquisition-related costs expensed included in above line items: | ||||||||||||||||
| General and administrative | $ | 13 | $ | 6 | $ | 96 | $ | 160 | ||||||||
| Benefitfocus, Inc. Unaudited Consolidated Balance Sheets (in thousands, except share and per share data) | ||||||||
| As of June 30, 2022 | As of December 31, 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 51,497 | $ | 31,001 | ||||
| Marketable securities | – | 37,049 | ||||||
| Accounts receivable, net | 22,342 | 16,491 | ||||||
| Contract, prepaid and other current assets | 33,558 | 27,615 | ||||||
| Total current assets | 107,397 | 112,156 | ||||||
| Property and equipment, net | 26,048 | 27,202 | ||||||
| Financing lease right-of-use assets | 50,391 | 56,474 | ||||||
| Operating lease right-of-use assets | 669 | 774 | ||||||
| Intangible assets, net | 18,988 | 21,134 | ||||||
| Goodwill | 34,237 | 34,237 | ||||||
| Deferred contract costs and other non-current assets | 7,283 | 8,864 | ||||||
| Total assets | $ | 245,013 | $ | 260,841 | ||||
| Liabilities, redeemable preferred stock and stockholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,298 | $ | 10,565 | ||||
| Accrued expenses | 17,546 | 9,451 | ||||||
| Accrued compensation and benefits | 11,557 | 16,411 | ||||||
| Deferred revenue, current portion | 27,808 | 27,756 | ||||||
| Lease liabilities and financing obligations, current portion | 6,387 | 7,378 | ||||||
| Contingent consideration | – | 675 | ||||||
| Total current liabilities | 68,596 | 72,236 | ||||||
| Deferred revenue, net of current portion | 2,464 | 2,377 | ||||||
| Convertible senior notes | 119,962 | 107,281 | ||||||
| Lease liabilities and financing obligations, net current portion | 74,184 | 75,758 | ||||||
| Other non-current liabilities | 372 | 313 | ||||||
| Total liabilities | 265,578 | 257,965 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable preferred stock: | ||||||||
| Series A preferred stock, par value $0.001, 5,000,000 shares authorized, 1,777,778 and 1,777,778 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively, liquidation preference $45 per share as of June 30, 2022 and December 31, 2021, respectively | 79,193 | 79,193 | ||||||
| Stockholders' deficit: | ||||||||
| Common stock, par value $0.001, 95,000,000 shares authorized, 34,172,079 and 33,460,545 issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 34 | 33 | ||||||
| Additional paid-in capital | 382,204 | 431,874 | ||||||
| Accumulated deficit | (481,996 | ) | (508,224 | ) | ||||
| Total stockholders' deficit | (99,758 | ) | (76,317 | ) | ||||
| Total liabilities, redeemable preferred stock and stockholders' deficit | $ | 245,013 | $ | 260,841 | ||||
| Benefitfocus, Inc. Unaudited Consolidated Statements of Cash Flows (in thousands) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2022 | 2021 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (14,441 | ) | $ | (17,117 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 13,462 | 12,525 | ||||||
| Stock-based compensation expense | 6,504 | 5,899 | ||||||
| Accretion of interest on convertible senior notes | 377 | 5,780 | ||||||
| Interest accrual on finance lease liabilities | 22 | 3,244 | ||||||
| Rent expense less than payments | (54 | ) | (27 | ) | ||||
| Change in fair value of contingently returnable assets | (719 | ) | – | |||||
| Non-cash accretion income from investments | 29 | 506 | ||||||
| Impairment or loss on disposal of right-of-use assets and property and equipment | 1,769 | 4,048 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (5,851 | ) | 1,354 | |||||
| Accrued interest on investments | 284 | (101 | ) | |||||
| Contract, prepaid and other current assets | 4,016 | 2,410 | ||||||
| Deferred costs and other non-current assets | 1,582 | 1,249 | ||||||
| Accounts payable and accrued expenses | (6,025 | ) | 3,520 | |||||
| Accrued compensation and benefits | (4,853 | ) | (4,907 | ) | ||||
| Deferred revenue | 139 | (615 | ) | |||||
| Other non-current liabilities | 60 | 159 | ||||||
| Net cash (used in) provided by operating activities | (3,699 | ) | 17,927 | |||||
| Cash flows from investing activities | ||||||||
| Purchases of investments held-to-maturity | – | (48,427 | ) | |||||
| Proceeds from short-term investments held-to-maturity | – | 48,000 | ||||||
| Maturities of investments available-for-sale | 22,045 | – | ||||||
| Sales of investments available-for-sale | 14,691 | – | ||||||
| Business combination, net of cash acquired | (500 | ) | – | |||||
| Purchases of property and equipment | (3,911 | ) | (4,483 | ) | ||||
| Net cash provided by (used in) investing activities | 32,325 | (4,910 | ) | |||||
| Cash flows from financing activities | ||||||||
| Payments of preferred dividends | (3,200 | ) | (3,200 | ) | ||||
| Payments of contingent consideration | (675 | ) | – | |||||
| Proceeds from exercises of stock options and ESPP | – | 322 | ||||||
| Payments on financing obligations | (2 | ) | (224 | ) | ||||
| Payments of principal on finance lease liabilities | (4,253 | ) | (2,559 | ) | ||||
| Net cash used in financing activities | (8,130 | ) | (5,661 | ) | ||||
| Net increase in cash and cash equivalents | 20,496 | 7,356 | ||||||
| Cash and cash equivalents, beginning of period | 31,001 | 90,706 | ||||||
| Cash and cash equivalents, end of period | $ | 51,497 | $ | 98,062 | ||||
| Supplemental disclosure of non-cash investing and financing activities | ||||||||
| Property and equipment purchases in accounts payable and accrued expenses | $ | 52 | $ | – | ||||
| Benefitfocus, Inc. Unaudited Reconciliation of GAAP to Non-GAAP Measures (in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Reconciliation from Gross Profit to Non-GAAP Gross Profit: | ||||||||||||||||
| Gross profit | $ | 27,492 | $ | 32,874 | $ | 58,831 | $ | 69,344 | ||||||||
| Amortization of acquired intangible assets | 610 | 336 | 1,232 | 673 | ||||||||||||
| Stock-based compensation expense | 1,008 | 638 | 1,204 | 964 | ||||||||||||
| Total net adjustments | 1,618 | 974 | 2,436 | 1,637 | ||||||||||||
| Non-GAAP gross profit | $ | 29,110 | $ | 33,848 | $ | 61,267 | $ | 70,981 | ||||||||
| Reconciliation from Operating Loss to Non-GAAP Operating Income: | ||||||||||||||||
| Operating loss | $ | (9,967 | ) | $ | (9,451 | ) | $ | (10,004 | ) | $ | (5,966 | ) | ||||
| Amortization of acquired intangible assets | 1,073 | 569 | 2,146 | 1,137 | ||||||||||||
| Stock-based compensation expense | 5,315 | 4,376 | 6,504 | 5,899 | ||||||||||||
| Transaction and acquisition-related costs expensed | 13 | 6 | 96 | 160 | ||||||||||||
| Impairment of lease right-of-use assets | 1,769 | 4,003 | 1,769 | 4,003 | ||||||||||||
| Change in fair value of contingently returnable consideration | (719 | ) | — | (719 | ) | — | ||||||||||
| Costs not core to our business | 2,800 | 1,717 | 4,755 | 3,598 | ||||||||||||
| Total net adjustments | 10,251 | 10,671 | 14,551 | 14,797 | ||||||||||||
| Non-GAAP operating income | $ | 284 | $ | 1,220 | $ | 4,547 | $ | 8,831 | ||||||||
| Reconciliation from Net Loss to Adjusted EBITDA: | ||||||||||||||||
| Net loss | $ | (12,164 | ) | $ | (15,020 | ) | $ | (14,441 | ) | $ | (17,117 | ) | ||||
| Depreciation | 3,264 | 3,444 | 6,498 | 7,067 | ||||||||||||
| Amortization of software development costs | 2,388 | 2,159 | 4,818 | 4,321 | ||||||||||||
| Amortization of acquired intangible assets | 1,073 | 569 | 2,146 | 1,137 | ||||||||||||
| Interest income | (72 | ) | (54 | ) | (84 | ) | (111 | ) | ||||||||
| Interest expense | 2,476 | 5,646 | 4,958 | 11,201 | ||||||||||||
| Income tax expense | 29 | 41 | 45 | 83 | ||||||||||||
| Stock-based compensation expense | 5,315 | 4,376 | 6,504 | 5,899 | ||||||||||||
| Transaction and acquisition-related costs expensed | 13 | 6 | 96 | 160 | ||||||||||||
| Impairment of lease right-of-use assets | 1,769 | 4,003 | 1,769 | 4,003 | ||||||||||||
| Change in fair value of contingently returnable consideration | (719 | ) | — | (719 | ) | — | ||||||||||
| Restructuring costs | — | 2,727 | 1,006 | 4,127 | ||||||||||||
| Costs not core to our business | 2,800 | 1,717 | 4,755 | 3,598 | ||||||||||||
| Total net adjustments | 18,336 | 24,634 | 31,792 | 41,485 | ||||||||||||
| Adjusted EBITDA | $ | 6,172 | $ | 9,614 | $ | 17,351 | $ | 24,368 | ||||||||
| Reconciliation from Net Loss to Non-GAAP Net (Loss) Income: | ||||||||||||||||
| Net loss | $ | (12,164 | ) | $ | (15,020 | ) | $ | (14,441 | ) | $ | (17,117 | ) | ||||
| Amortization of acquired intangible assets | 1,073 | 569 | 2,146 | 1,137 | ||||||||||||
| Stock-based compensation expense | 5,315 | 4,376 | 6,504 | 5,899 | ||||||||||||
| Transaction and acquisition-related costs expensed | 13 | 6 | 96 | 160 | ||||||||||||
| Impairment of lease right-of-use assets | 1,769 | 4,003 | 1,769 | 4,003 | ||||||||||||
| Change in fair value of contingently returnable consideration | (719 | ) | — | (719 | ) | — | ||||||||||
| Costs not core to our business | 2,800 | 1,717 | 4,755 | 3,598 | ||||||||||||
| Total net adjustments | 10,251 | 10,671 | 14,551 | 14,797 | ||||||||||||
| Non-GAAP net (loss) income | $ | (1,913 | ) | $ | (4,349 | ) | $ | 110 | $ | (2,320 | ) | |||||
| Calculation of Non-GAAP Earnings Per Share: | ||||||||||||||||
| Non-GAAP net (loss) income | $ | (1,913 | ) | $ | (4,349 | ) | $ | 110 | $ | (2,320 | ) | |||||
| Preferred dividends | (1,600 | ) | (1,600 | ) | (3,200 | ) | (3,200 | ) | ||||||||
| Non-GAAP net loss available to common stockholders | $ | (3,513 | ) | $ | (5,949 | ) | $ | (3,090 | ) | $ | (5,520 | ) | ||||
| Weighted average shares outstanding - basic and diluted | 34,028,422 | 33,080,257 | 33,764,103 | 32,787,162 | ||||||||||||
| Shares used in computing non-GAAP net loss per share - basic and diluted | 34,028,422 | 33,080,257 | 33,764,103 | 32,787,162 | ||||||||||||
| Non-GAAP net loss per common share - basic and diluted | $ | (0.10 | ) | $ | (0.18 | ) | $ | (0.09 | ) | $ | (0.17 | ) | ||||
| Reconciliation of Cash Flows from Operations to Free Cash Flow: | ||||||||||||||||
| Net cash and cash equivalents (used in) provided by operating activities | $ | (699 | ) | $ | 9,163 | $ | (3,699 | ) | $ | 17,927 | ||||||
| Purchases of property and equipment | (1,901 | ) | (2,590 | ) | (3,911 | ) | (4,483 | ) | ||||||||
| Cash paid for restructuring costs | 518 | 5 | 1,304 | 1,384 | ||||||||||||
| Total net adjustments | (1,383 | ) | (2,585 | ) | (2,607 | ) | (3,099 | ) | ||||||||
| Free Cash Flow | $ | (2,082 | ) | $ | 6,578 | $ | (6,306 | ) | $ | 14,828 | ||||||
