“The second quarter revenue was negatively impacted by our cash constraints and our move to new hardware suppliers for our HVE line of products. Despite the drop in revenue, we were able to reduce our net loss, quarter over quarter, through a reduction in our operating expenses in Q2,” said
On
Second Quarter 2019 Financial Results:
- Revenue for the second quarter of 2019 was
$1.0 million , compared to$2.7 million for the second quarter 2018. - Gross margin for the second quarter of 2019 was 25.4%, compared to 17.5% for the second quarter of 2018.
- Operating expenses for the second quarter of 2019 were
$1.8 million , compared to$3.3 million for the second quarter of 2018. - Share-based compensation expense for the second quarter of 2019 was
$0.1 million , compared to$0.4 million for the second quarter of 2018. Depreciation and amortization was$0.3 million in both the second quarter of 2019 and 2018. - Net loss from continuing operations for the second quarter of 2019 was
$1.7 million , or a net loss of$0.72 per share, compared to a net loss from continuing operations of$4.0 million , or a net loss of$2.36 per share, for the second quarter of 2018. - Net loss from discontinued operations for the second quarter of 2018 was
$2.0 million , or a net loss of$1.16 per share.
Six Months Ended
- Revenue for the first six months of 2019 was
$3.1 million , compared to$5.1 million for the first six months of 2018. - Gross margin for the first six months of 2019 was 30.4%, compared to 18.1% for the first six months of 2018.
- Operating expenses for the first six months of 2019 were
$4.2 million , compared to$8.2 million for the first six months of 2018. - Share-based compensation expense for the first six months of 2019 was
$0.2 million , compared to$1.3 million for the first six months of 2018. Depreciation and amortization was$0.5 million in the first six months of 2019, compared to$1.1 million for the first six months of 2018. - Net loss from continuing operations for the first six months of 2019 was
$3.5 million , or a net loss of$1.55 per share, compared to a net loss from continuing operations of$9.2 million , or a net loss of$6.86 per share, in the first six months of 2018. - Net loss from discontinued operations for the first six months of 2018 was
$3.7 million , or a net loss of$2.75 per share.
Investor Conference Call:
About
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:
+1-858-495-4211
Investor.relations@sphere3d-overland.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, | ||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| Revenue | $ | 963 | $ | 2,698 | $ | 3,093 | $ | 5,071 | |||||||||
| Cost of revenue | 718 | 2,225 | 2,153 | 4,155 | |||||||||||||
| Gross profit | 245 | 473 | 940 | 916 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing | 491 | 740 | 944 | 1,521 | |||||||||||||
| Research and development | 516 | 899 | 1,213 | 2,010 | |||||||||||||
| General and administrative | 761 | 1,691 | 2,013 | 4,691 | |||||||||||||
| 1,768 | 3,330 | 4,170 | 8,222 | ||||||||||||||
| Loss from operations | (1,523 | ) | (2,857 | ) | (3,230 | ) | (7,306 | ) | |||||||||
| Interest expense - related party | (144 | ) | (1,212 | ) | (286 | ) | (1,770 | ) | |||||||||
| Interest expense | (12 | ) | - | (15 | ) | - | |||||||||||
| Other income (expense), net | 14 | 41 | 22 | (85 | ) | ||||||||||||
| Net loss from continuing operations | (1,665 | ) | (4,028 | ) | (3,509 | ) | (9,161 | ) | |||||||||
| Net loss from discontinued operations | - | (1,974 | ) | - | (3,664 | ) | |||||||||||
| Net loss | $ | (1,665 | ) | $ | (6,002 | ) | $ | (3,509 | ) | $ | (12,825 | ) | |||||
| Net loss per share: | |||||||||||||||||
| Continuing operations | $ | (0.72 | ) | $ | (2.36 | ) | $ | (1.55 | ) | $ | (6.86 | ) | |||||
| Discontinued operations | - | (1.16 | ) | - | (2.75 | ) | |||||||||||
| Net loss per share basic and diluted. | $ | (0.72 | ) | $ | (3.52 | ) | $ | (1.55 | ) | $ | (9.61 | ) | |||||
| Shares used in computing net loss per share: | |||||||||||||||||
| Basic and diluted | 2,300,469 | 1,706,289 | 2,268,706 | 1,335,104 | |||||||||||||
| SPHERE 3D CORP. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (In thousands) | |||||||||
| June 30, | December 31, | ||||||||
| 2019 | 2018 | ||||||||
| (Unaudited) | (Unaudited) | ||||||||
| ASSETS | |||||||||
| Cash and cash equivalents | $ | 151 | $ | 341 | |||||
| Accounts receivable, net | 500 | 1,142 | |||||||
| Inventories | 1,170 | 1,230 | |||||||
| Other current assets | 703 | 784 | |||||||
| Total current assets | 2,524 | 3,497 | |||||||
| Investment in affiliate | 2,100 | 2,100 | |||||||
| Property and equipment, net | 5 | 6 | |||||||
| Intangible assets, net | 2,873 | 3,348 | |||||||
| Goodwill | 1,385 | 1,385 | |||||||
| Other assets | 1,025 | 950 | |||||||
| Total assets | $ | 9,912 | $ | 11,286 | |||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | |||||||||
| Current liabilities | $ | 10,493 | $ | 9,639 | |||||
| Series A redeemable preferred shares | 6,832 | 6,571 | |||||||
| Other long-term liabilities | 1,315 | 683 | |||||||
| Total shareholders' deficit | (8,728 | ) | (5,607 | ) | |||||
| Total liabilities and shareholders' deficit | $ | 9,912 | $ | 11,286 | |||||
Source: Sphere 3D Corp
