Mr. Kelly further noted, "We are pleased to report that we exceeded internal revenue projections in the past quarter, and we have completed the third phase of our integration plan with Tandberg Data. The significant operational changes at Overland will result in cost-savings of 10% to 15% (or
Recent Corporate Highlights:
- Completed the third phase of the Company's integration plan with Tandberg Data.
- The Registration Statement on Form F-4/A filed by
Sphere 3D Corporation (NASDAQ: ANY) (TSX VENTURE: ANY) has been declared effective by theSecurities and Exchange Commission (SEC ). Shareholders will be asked to approve the merger at a meeting of shareholders onNovember 28, 2014 . CertainOverland Storage shareholders holding approximately 65% of the outstanding Overland shares have agreed, pursuant to voting agreements, to vote their shares in favor of the merger, and as a result Overland expects the merger to be approved at the shareholder meeting, and completed during the first week in December.
- Secured
$5.0 million of additional working capital in the form of debt financing fromCyrus Capital to support our transition plans.
- Entered into a Memorandum of Understanding with the plaintiffs in the consolidated class action cases that would, subject to court approval and other standard conditions, provide for the settlement of all outstanding claims in regard to our proposed merger transaction with Sphere3D.
- Litigation update:
November 7, 2014 , the United States Patent and Trademark Office issued a Final Written Decision finding claims 1-11 of U.S. Patent No. 6,328,766 to be unpatentable. Overland has the option to appeal the decision to theUnited States Court of Appeals for the Federal Circuit .Overland Storage has successfully settled its infringement litigation related to this patent with all other parties.
First Quarter Fiscal 2015 Financial Results:
The following financial highlights for the first fiscal quarter of 2015 reflect contribution from the Tandberg Data acquisition, which contribution is not reflected in the comparative results for the first fiscal quarter of 2014.
- Net revenue for the first quarter of fiscal 2015 was
$22.9 million , compared to$10.6 million for the first quarter of fiscal 2014 and$24.2 million in the fourth quarter of fiscal 2014. Product revenue for the first quarter of fiscal 2015 was$19.3 million , compared to$6.1 million for the first quarter of fiscal 2014 and$19.8 million in the fourth quarter of fiscal 2014.
- Gross margin for the first quarter of fiscal 2015 was 27.8%, compared to 33.7% in the first quarter of fiscal 2014, and 26.9% in the fourth quarter of fiscal 2014.
- Operating expenses for the first quarter of fiscal 2015 were
$13.3 million , compared to$7.7 million in the first quarter of fiscal 2014 and$15.0 million for the fourth quarter of fiscal 2014. One-time costs for the first quarter of fiscal 2015 were approximately$1.9 million .
- Stock compensation expense was
$0.8 million in the first quarter of fiscal 2015, compared to$0.9 million in the first quarter of fiscal 2014 and$1.2 million in the fourth quarter of fiscal 2014. Depreciation and amortization was$0.9 million in the first quarter of fiscal 2015, compared to$0.3 million in the first quarter of fiscal 2014 and$1.0 million in the fourth quarter of fiscal 2014.
- Net loss for the first quarter of fiscal 2015 was
$7.3 million , or a loss of$0.42 per share, compared to a net loss of$4.6 million , or a loss of$0.75 per share, in the first quarter of fiscal 2014, and a net loss of$7.4 million , or a loss of$0.42 per share, in the fourth quarter of fiscal 2014.
- Adjusted EBITDA for the first quarter of fiscal 2015 was a loss of
$3.8 million , compared to adjusted EBITDA of a loss of$3.0 million in the first quarter of fiscal 2014, and a loss of$6.3 million in the fourth quarter of fiscal 2014.
- Cash and short-term investments at
September 30, 2014 were$6.9 million , compared to cash and short-term investments of$12.1 million atJune 30, 2014 . As ofSeptember 30, 2014 , the company had$5.1 million outstanding under its credit facilities and$17.3 million outstanding under its notes from related parties.
Recent Product Highlights:
As we highlighted in our
- V3™ hyper-converged appliances designed to address the rapidly growing virtualization and cloud markets.
- SnapServer XSD 40™, powered by the new GuardianOS® 7.6 software, is the simplest and most versatile NAS and iSCSI SAN storage system available for today's business needs--from virtualized server and Microsoft Exchange environments, to backup and storage consolidation.
VMware -certified SnapScale® clustered data storage featuring RAINcloud® OS 4.1, the next major software release with software-defined storage services for virtual infrastructures.
- RDX® integration with SnapServer provides small-to-medium business customers with an affordable, integrated solution for backup and data exchange.
- NEO® XL-Series automated tape libraries, combining flexibility, density, high-performance and best value for backup, archive and disaster recovery.
Investor Conference Call:
In light of the imminent anticipated closing of the Merger Agreement with
About
Additional Information
This communication may be deemed to be solicitation material in respect of the proposed combination of
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
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 Overland's business or
OVERLAND STORAGE, INC. | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(In thousands, except per share data) | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Net revenue | $ | 22,896 | $ | 10,606 | |||||
Cost of revenue | 16,534 | 7,037 | |||||||
Gross profit | 6,362 | 3,569 | |||||||
Operating expenses: | |||||||||
Sales and marketing | 5,586 | 3,745 | |||||||
Research and development | 1,920 | 1,309 | |||||||
General and administrative | 5,811 | 2,611 | |||||||
13,317 | 7,665 | ||||||||
Loss from operations | (6,955 | ) | (4,096 | ) | |||||
Investment income | 1,801 | - | |||||||
Interest expense | (364 | ) | (314 | ) | |||||
Other income (expense), net | (381 | ) | (161 | ) | |||||
Loss before income taxes | (5,899 | ) | (4,571 | ) | |||||
Provision for income taxes | 1,395 | 19 | |||||||
Net loss | $ | (7,294 | ) | $ | (4,590 | ) | |||
Net loss per share: | |||||||||
Basic and diluted | $ | (0.42 | ) | $ | (0.75 | ) | |||
Shares used in computing net loss per share: | |||||||||
Basic and diluted | 17,567 | 6,145 | |||||||
OVERLAND STORAGE, INC. | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(In thousands, except per share data) | |||||||||
Three Months Ended | Three Months Ended | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Net revenue | $ | 22,896 | $ | 24,210 | |||||
Cost of revenue | 16,534 | 17,702 | |||||||
Gross profit | 6,362 | 6,508 | |||||||
Operating expenses: | |||||||||
Sales and marketing | 5,586 | 6,142 | |||||||
Research and development | 1,920 | 1,706 | |||||||
General and administrative | 5,811 | 7,153 | |||||||
13,317 | 15,001 | ||||||||
Loss from operations | (6,955 | ) | (8,493 | ) | |||||
Investment income | 1,801 | - | |||||||
Interest expense | (364 | ) | (336 | ) | |||||
Other income (expense), net | (381 | ) | (95 | ) | |||||
Loss before income taxes | (5,899 | ) | (8,924 | ) | |||||
Provision for (benefit from) income taxes | 1,395 | (1,539 | ) | ||||||
Net loss | $ | (7,294 | ) | $ | (7,385 | ) | |||
Net loss per share: | |||||||||
Basic and diluted | $ | (0.42 | ) | $ | (0.42 | ) | |||
Shares used in computing net loss per share: | |||||||||
Basic and diluted | 17,567 | 17,521 | |||||||
OVERLAND STORAGE, INC. | |||||||
SELECTED BALANCE SHEETS INFORMATION | |||||||
(In thousands) | |||||||
September 30, | June 30, | ||||||
2014 | 2014 | ||||||
(Unaudited) | (Unaudited) | ||||||
ASSETS | |||||||
Cash | $ | 3,452 | $ | 4,262 | |||
Short-term investment - related party | 3,444 | 7,814 | |||||
Accounts receivable, net | 13,292 | 14,171 | |||||
Inventories | 15,821 | 15,525 | |||||
Other current assets | 3,417 | 2,419 | |||||
Total current assets | 39,426 | 44,191 | |||||
Property and equipment, net | 5,802 | 5,799 | |||||
Goodwill | 19,044 | 19,044 | |||||
Intangible assets, net | 23,142 | 23,784 | |||||
Other non-current assets | 1,331 | 1,121 | |||||
Total assets | $ | 88,745 | $ | 93,939 | |||
LIABILITIES & EQUITY | |||||||
Current liabilities | $ | 39,063 | $ | 32,427 | |||
Long-term debt - related party | 17,278 | 14,528 | |||||
Long-term debt | - | 5,406 | |||||
Other long-term liabilities | 4,965 | 4,784 | |||||
Shareholders' equity | 27,439 | 36,794 | |||||
Total liabilities and equity | $ | 88,745 | $ | 93,939 | |||
OVERLAND STORAGE, INC. | |||||||||||||
ADJUSTED EBITDA RECONCILIATION | |||||||||||||
(In thousands) | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
September 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | |||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Net loss | $ | (7,294 | ) | $ | (4,590 | ) | $ | (7,385 | ) | ||||
Interest | 364 | 314 | 336 | ||||||||||
Tax | 1,395 | 19 | (1,539 | ) | |||||||||
Depreciation and amortization | 896 | 328 | 1,048 | ||||||||||
Share-based compensation | 794 | 910 | 1,234 | ||||||||||
Adjusted EBITDA | $ | (3,845 | ) | $ | (3,019 | ) | $ | (6,306 | ) | ||||
Non-GAAP Financial Measure: Overland uses a financial measure which is not calculated and presented in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). Overland presents this non-GAAP financial measure because it believes it to be an important supplemental measure of performance that is commonly used by investors and other interested parties in the evaluation of companies in our industry. |
|||||||||||||
Overland defines Adjusted EBITDA as net loss before interest expense, income taxes, depreciation and amortization, and share-based compensation. Non-GAAP financial measures should not be considered as an alternative to net loss, operating income (loss), cash flow from operating activities, as a measure of liquidity, or any other financial measure. They may not be indicative of the historical operating results of the company nor is it intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as a substitute for performance measures calculated in accordance with GAAP. | |||||||||||||
Contacts:
Director,
+1 408/283-4779
padams@overlandstorage.com
+1 323/468-2300
ovrl@mkr-group.com
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