Press Release
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Sphere 3D Reports Second Quarter Fiscal Year 2021 Financial Results

Toronto, Ontario--(Newsfile Corp. - August 16, 2021) - Sphere 3D Corp. (NASDAQ: ANY) (the "Company" or "Sphere 3D"), a company delivering containerization, virtualization, and data management solutions, today reported financial results for its second quarter ended June 30, 2021.

Second Quarter 2021 Financial Results:

Our results for second quarter 2021 were as follows:

  • Revenue was $0.9 million in the both the second quarters of 2021 and 2020.

  • Gross margin for second quarter of 2021 was 43.7%, compared to 49.6% for the second quarter of 2020.

  • Operating expenses for second quarter of 2021 were $3.9 million, compared to $2.4 million for the second quarter of 2020.

  • Depreciation and amortization was $0.2 million for both the second quarter of 2021 and 2020.

  • Net loss available to common shareholders for second quarter of 2021 was $3.0 million, or a net loss of $0.19 per share, compared to a net loss available to common shareholders of $1.9 million, or a net loss of $0.41 per share, for the second quarter of 2020.

  • Net loss, before dividends on preferred shares, for the second quarter of 2021 was $2.9 million.

  • Dividends on preferred shares for the second quarter of 2021 was $169,000 compared to nil for the second quarter of 2020.

Six Months Ended June 30, 2021 Financial Results:

  • Revenue for the first six months of 2021 was $1.8 million, compared to $1.9 million for the first six months of 2020.

  • Gross margin for the first six months of 2021 was 44.8%, compared to 47.6% for the first six months of 2020.

  • Operating expenses for the first six months of 2021 were $5.6 million, compared to $4.0 million for the first six months of 2020.

  • Depreciation and amortization for the first six months of 2021 was $0.3 million, compared to $0.5 million in the first six months of 2020.

  • Net loss available to common shareholders for the first six months of 2021 was $5.6 million, or a net loss of $0.44 per share, compared to a net loss available to common shareholders of $3.0 million, or a net loss of $0.70 per share, in the first six months of 2020.

  • Net loss, before dividends on preferred shares, for the first six months of 2021 was $5.3 million.

  • Dividends on preferred shares for the first six months of 2021 was $362,000 compared to nil for the first six months of 2020.

Investor Conference Call:
Sphere 3D will not be hosting a second quarter fiscal year 2021 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 and other filings with the United States Securities and Exchange Commission (www.sec.gov) and with Canadian securities regulators (www.sedar.com). 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
+1-858-495-4211
Investor.relations@sphere3d.com

 

 SPHERE 3D CORP. 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
 (In thousands, except share and per share data) 
                         
                         
                         
         Three Months Ended       Six Months Ended 
        June 30,     June 30,
        2021   2020     2021     2020
         (Unaudited)           (Unaudited)        
 Revenue.............................................................................................................       $            894     $          891        $        1,834     $          1,901
 Cost of revenue..................................................................................................                         503                   449                  1,012                    996
 Gross profit......................................................................................................                       391                   442                     822                    905
                          
 Operating expenses:                        
   Sales and marketing..................................................................................................                       407                   232                     711                    536
   Research and development..................................................................................................                       269                   344                     506                    683
   General and administrative......................................................................                    3,257                1,832                  4,422                   2,816
                      3,933                2,408                  5,639                 4,035
 Loss from operations..................................................................................................                  (3,542)              (1,966)                 (4,817)               (3,130)
   Interest expense - related party.........................................................................................                            -                 (118)                    (496)                  (118)
   Interest expense.........................................................................................                         (6)                   (76)                      (19)                    (85)
   Other income, net...........................................................................................                       667                   217                       79                    287
 Loss before income taxes…………………………………………………………………………..                  (2,881)              (1,943)                 (5,253)               (3,046)
 Provision for income taxes…...............................................................................                            -                       3                          -                        3
 Net loss…………………………………………………………………………..                  (2,881)              (1,946)                 (5,253)               (3,049)
 Dividends on preferred shares…………………………………………………………………………..                       169                      -                       362                      -  
 Net loss available to common shareholders…………………………………………………………………………..       $       (3,050)    $    (1,946)      $      (5,615)      $      (3,049)
                          
 Net loss per share:                       
   Basic and diluted…………………………………………………………….......       $         (0.19)    $      (0.41)      $        (0.44)          (0.70)
 Shares used in computing net loss per share:                        
   Basic and diluted...............................................................................................           15,990,564         4,804,562         12,724,287     4,376,108

 

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 SPHERE 3D CORP. 
 CONDENSED CONSOLIDATED BALANCE SHEETS 
 (In thousands) 
                  
               
        June 30,     December 31,
        2021     2020
         (Unaudited)       (Unaudited) 
 ASSETS             
 Cash and cash equivalents......................................................................         $                4,584    $              461
 Accounts receivable, net.....................................................................                              205                            264
 Inventories........................................................................................                              501                            558
 Other current assets.....................................................................................                              990                            807
   Total current assets.....................................................................                           6,280                         2,090
 Note receivable..................................................................................                           3,354                         3,207
 Investment............................................................................................                           2,100                         2,100
 Intangible assets, net....................................................................................                           2,310                         2,608
 Goodwill....................................................................................................                           1,385                         1,385
 Other assets.............................................................................................                              367                            443
   Total assets....................................................................................      $             15,796    $          11,833
               
               
 LIABILITIES AND SHAREHOLDERS' EQUITY             
 Current liabilities..................................................................................     $                3,274    $           5,805
 Long-term debt..................................................................................                              449                            672
 Other long-term liabilities.....................................................................                              161                            347
 Total shareholders' equity.........................................................................                         11,912                         5,009
   Total liabilities and shareholders' equity.....................................................................     $             15,796   $ 11,833

 

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