SAN JOSE, CA--(Marketwired - May 13, 2015) - Sphere 3D Corp. (
"Our core data management business continues to deliver a solid revenue foundation that has enabled us to remain focused on our expansion into the fast growing virtualization markets," said Eric Kelly, CEO of Sphere 3D Corp. "We see positive channel partner and customer feedback on our strategy to position the company for growth. In the near future, we plan to roll out our new hybrid cloud architecture for the virtual workspace environment. This will allow organizations to deploy their applications and data into a combination of public, private or hybrid cloud solutions."
First Quarter 2015 Financial Results:
The following financial results for the first quarter of 2015 include contribution from the acquisition for the full three months, which contribution is not reflected in the comparative results for the first quarter of 2014.
Corporate Highlights:
Business Highlights:
Use of GAAP and Non-GAAP Financial Measures:
To supplement Sphere 3D's consolidated financial statements presented in accordance with GAAP, the Company uses Adjusted EBITDA, a non-GAAP financial measure that exclude from the statement of operations the effects of interest expense, income taxes, depreciation and amortization and share-based compensation. The Company also uses Non-GAAP gross profit and Non-GAAP gross-margin, non-GAAP financial measures that exclude the effect of intangible asset amortization from gross-profit. Sphere 3D uses the above non-GAAP financial measures internally to understand, manage and evaluate the business. Management believes it is useful for itself and investors to review, as applicable, both GAAP information and the non-GAAP measures in order to assess the performance of continuing operations and for planning and forecasting in future periods. The presentation of these non-GAAP measures is intended to provide investors with an understanding of the Company's operational results and trends that enables them to analyze the base financial and operating performance and facilitate period-to-period comparisons and analysis of operational trends. Sphere 3D believes the presentation of these non-GAAP financial measures is useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition, our non-GAAP financial measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as we do.
Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the most comparable GAAP measures, which are provided in the attached table after the text of this release.
Investor Conference Call:
Sphere 3D will host an investor conference call today at 5:00 pm ET (2:00 pm PT) to discuss the Company's 2015 first quarter financial results. To access the call, dial (888)-427-9419 (US and Canada) or +1 (719)-325-2435 (International) and give the participant pass code 5893828. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. In addition, a live and archived webcast of the conference call will be available at www.sphere3d.com in the Investor Relations section. A replay of the conference call will also be available via telephone by dialing (888) 203-1112 (U.S. and Canada) or +1 (719) 457-0820 (International) and entering access code 5893828. The replay will be available beginning approximately two hours after the call and remain in effect for one week.
About Sphere 3D
Sphere 3D Corp. (
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, unforeseen changes in the course of Sphere 3D's business or the business of its wholly-owned subsidiaries, including, without limitation, Overland Storage and Tandberg Data; any increase in Sphere 3D's cash needs or our inability to obtain additional debt or equity financing; 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 Sphere 3D's 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), and risks detailed in the Form F-4/A relating to Sphere 3D's merger with Overland Storage filed with the SEC. 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.
SPHERE 3D CORP. | |||||||
SELECTED BALANCE SHEETS INFORMATION | |||||||
(In thousands) | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
(Unaudited) | (Unaudited) | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 4,364 | $ | 4,258 | |||
Accounts receivable | 13,735 | 15,488 | |||||
Inventories | 10,204 | 9,936 | |||||
Other current assets | 2,976 | 2,457 | |||||
Total current assets | 31,279 | 32,139 | |||||
Property and equipment, net | 3,861 | 4,427 | |||||
Intangible assets, net | 71,272 | 73,271 | |||||
Goodwill | 38,821 | 38,821 | |||||
Other assets | 479 | 605 | |||||
Total assets | $ | 145,712 | $ | 149,263 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | $ | 41,282 | $ | 37,051 | |||
Long-term debt -- related party | 19,500 | 19,500 | |||||
Long-term deferred tax liabilities | 4,307 | 4,387 | |||||
Other long-term liabilities | 3,041 | 3,185 | |||||
Shareholders' equity | 77,582 | 85,140 | |||||
Total liabilities and equity | $ | 145,712 | $ | 149,263 | |||
SPHERE 3D CORP. | |||||||||
NON-GAAP RECONCILIATIONS | |||||||||
(In thousands, except per share data) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(Unaudited) | |||||||||
Revenue | $ | 20,098 | $ | 912 | |||||
Gross Profit - GAAP | $ | 5,941 | $ | 519 | |||||
Intangible asset amortization | 632 | - | |||||||
Gross Profit - Non -GAAP | $ | 6,573 | $ | 519 | |||||
Gross Margin Percentages | |||||||||
GAAP | 29.6 | % | 56.9 | % | |||||
Non-GAAP | 32.7 | % | 56.9 | % | |||||
Net loss | $ | (9,542 | ) | $ | (778 | ) | |||
Less: | |||||||||
Interest | 619 | 13 | |||||||
Tax | 53 | - | |||||||
Depreciation and amortization | 1,992 | 73 | |||||||
Share-based compensation | 735 | 733 | |||||||
Adjusted EBITDA | $ | (6,143 | ) | $ | 41 | ||||
Net loss per share: | |||||||||
Basic and diluted | $ | (0.27 | ) | $ | (0.04 | ) | |||
Adjusted Net loss per share: | |||||||||
Basic and diluted | $ | (0.18 | ) | $ | 0.00 | ||||
Shares used in computing net loss and adjusted net loss per share: | |||||||||
Basic and diluted | 35,003 | 21,692 | |||||||
Non-GAAP Financial Measures: Sphere uses financial measures which are not calculated and presented in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). Sphere presents these non-GAAP financial measures because it believes them to be important supplemental measures of performance that is commonly used by investors and other interested parties in the evaluation of companies in our industry. |
To supplement Sphere 3D's consolidated financial statements presented in accordance with GAAP, the Company uses Adjusted EBITDA, a non-GAAP financial measure that exclude from the statement of operations the effects of interest expense, income taxes, depreciation and amortization and share-based compensation. The Company also uses Non-GAAP gross profit and Non-GAAP gross-margin, non-GAAP financial measures that exclude the effect of intangible asset amortization from gross-profit. Sphere 3D uses the above non-GAAP financial measures internally to understand, manage and evaluate the business. Management believes it is useful for itself and investors to review, as applicable, both GAAP information and the non-GAAP measures in order to assess the performance of continuing operations and for planning and forecasting in future periods. The presentation of these non-GAAP measures is intended to provide investors with an understanding of the Company's operational results and trends that enables them to analyze the base financial and operating performance and facilitate period-to-period comparisons and analysis of operational trends. Sphere 3D believes the presentation of these non-GAAP financial measures is useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered substitutes for or superior to GAAP results. In addition, our non-GAAP financial measures may not be comparable to similarly titled measures utilized by other companies since such other companies may not calculate such measures in the same manner as we do. |
Contact Information:
Media Contact:
Pattie Adams
Director, Global Corporate Communications
+1 408/283-4779
pattie.adams@sphere3d.com
Investor Contact:
MKR Group Inc.
Todd Kehrli or Jim Byers
+1 323/468-2300
any@mkr-group.com