Sphere 3D Corporation.: Form 6-K - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

     For the month of November, 2015

Commission File Number: 001-36532

Sphere 3D Corp.

240 Matheson Blvd. East
Mississauga, Ontario, Canada, L4Z 1X1

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

[   ] Form 20-F     [X] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [   ]

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [   ]     No [X]

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):


SUBMITTED HEREWITH

Exhibits

  99.1 News Release dated November 16, 2015


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SPHERE 3D CORP.

Date: November 16, 2015 /s/ Kurt Kalbfleisch
  Name: Kurt Kalbfleisch
  Title: Chief Financial Officer


Sphere 3D Corp.: Exhibit 99.1 - Filed by newsfilecorp.com

Exhibit 99.1

Sphere 3D Reports Third Quarter 2015 Financial Results

SAN JOSE, Calif. – November 16, 2015 – Sphere 3D Corp. (NASDAQ: ANY), a containerization, virtualization, and data management solutions provider, today reported financial results for its third quarter ended September 30, 2015.

“In the third quarter, we have made significant steps in the market toward scaling and driving broad adoption of our Enterprise Cloud infrastructure offerings,” said Eric Kelly, CEO of Sphere 3D. “We sequentially grew revenue despite some partner headwinds. We believe we have positioned the company to drive revenue growth as enterprises shift to using ANY device, on ANY network, on ANY cloud, ANYwhere through our unique cloud-ready technologies like the Glassware 2.0™ platform and SnapServer® / SnapCloud™ products. ”

Third Quarter 2015 Financial Results:

The following financial results for the third quarter of 2015 include contribution from the Overland Storage acquisition for the full three months, and the contribution from the Imation RDX acquisition since August 10th, 2015, which contribution is not reflected in the comparative results for the third quarter of 2014.

  •  
  • Net revenue for the third quarter of 2015 was $18.8 million, compared to $1.5 million for the third quarter of 2014.

       
  •  
  • Product revenue for the third quarter of 2015 was $16.1 million, compared to $1.3 million for the third quarter of 2014.

       
  •  
  • Disk systems revenue was $10.1 million, compared to $1.3 million for the third quarter of 2014.

       
  •  
  • Tape archive product revenue was $6.0 million compared to none for the third quarter of 2014.

       
  •  
  • Service revenue was $2.7 million, compared to $0.2 million in the third quarter of 2014.

       
  •  
  • Gross margin for the third quarter of 2015 was 29.2%, compared to 37.1% for the third quarter of 2014. Non-GAAP gross margin for the third quarter of 2015 was 33%. Our methodology for determining non-GAAP gross margin, which excludes the effect of intangible asset amortization from gross profit, is described in the Use of GAAP and Non-GAAP Financial Measures section of this announcement. See also, Non-GAAP Reconciliations” below.

       
  •  
  • Operating expenses for the third quarter of 2015 were $14.5 million, compared to $4.0 million for the third quarter of 2014.

       
  •  
  • Share-based compensation expense for the third quarter of 2015 was $2.7 million, compared to $0.8 million for the third quarter of 2014. Depreciation and amortization was $1.8 million in third quarter of 2015, compared to $1.1 million in the third quarter of 2014.



       
  •  
  • Net loss for the third quarter of 2015 was $10.2 million, or a net loss of $0.26 per share, compared to a net loss of $3.5 million, or a net loss of $0.15 per share, in the third quarter of 2014.

       
  •  
  • Adjusted EBITDA for the third quarter of 2015 was a net loss of $4.6 million, or a net loss of $0.12 per share, based on 38.7 million weighted average shares outstanding, compared to adjusted EBITDA net loss of $0.9 million, or net loss of $0.04 per share based on 23.6 million weighted average shares outstanding for the third quarter of 2014. Adjusted EBITDA is a non-GAAP measure presented as net loss before interest expense, income taxes, acquisition costs, depreciation and amortization and share-based compensation. For additional information regarding the non- GAAP financial measures discussed in this release, please see “Use of GAAP and Non-GAAP Financial Measures” and "Non-GAAP Reconciliations " below.
       
  •  
  • Cash and cash equivalents at September 30, 2015 were $5.1 million, compared to $4.3 million at December 31, 2014. The Company had $10.3 million outstanding under its credit facilities ($5.0 million of which is from related parties) and $19.5 million outstanding under its notes from related parties as of September 30, 2015.

    Recent Corporate and 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 excludes from the statement of operations the effects of interest expense, income taxes, acquisition costs, 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. 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 8:30 a.m. EST (5:30 a.m. PST) to discuss the Company’s 2015 third quarter financial results. To access the call, dial (844) 268-1747 (Toll Free) or (918) 559-5655 (International) and give the participant pass code 66959540. 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 (855) 859-2056 (Toll Free U.S. and Canada) or +1 (404) 537-3406 (International) and entering replay access code 66959540. The replay will be available beginning approximately two hours after the call and will remain available for one week.

    About Sphere 3D

    Sphere 3D Corp. (NASDAQ: ANY) delivers containerization and virtualization technologies along with data management products that enable workload-optimized solutions. We achieve this through a combination of containerized applications, virtual desktops, virtual storage and physical hyper-converged platforms. Sphere 3D’s value proposition is simple and direct—we allow organizations to deploy a combination of public, private or hybrid cloud strategies while backing them up with state of the art storage solutions. Sphere 3D, along with its wholly-owned subsidiaries Overland Storage and Tandberg Data, has a strong portfolio of brands including Glassware 2.0™, SnapCLOUD™, SnapScale®, SnapServer®, V3, RDX®, and NEO®. For more information, visit www.sphere3d.com.


    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). 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:
    The Blueshirt Group
    Mike Bishop
    Tel: +1 415-217-4968
    mike@blueshirtgroup.com


    SPHERE 3D CORP.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)

     

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2015     2014     2015     2014  
        (Unaudited)     (Unaudited)  
    Net revenue $  18,796   $  1,484   $  57,296   $  4,002  
    Cost of revenue   13,299     933     40,053     2,228  
    Gross profit   5,497     551     17,243     1,774  
                             
    Operating expenses:                        
             Sales and marketing   6,145     1,217     17,255     2,302  
             Research and development   2,423     -     7,337     -  
             General and administrative   5,926     2,810 -     17,852     6,630  
        14,494     4,027     42,444     8,932  
    Loss from operations   (8,997 )   (3,476 )   (25,201 )   (7,158 )
    Interest expense - related party   (798 )   -     (2,116 )   -  
    Interest expense   (89 )   (97 )   (250 )   (214 )
    Other income (expense), net   (348 )   117     (882 )   87  
    Loss before income taxes   (10,232 )   (3,456 )   (28,449 )   (7,285 )
    (Benefit from) provision for income taxes   (2 )   -     179     -  
    Net loss $  (10,230 ) $  (3,456 ) $  (28,628 ) $  (7,285 )
                             
    Net loss per share:                        
             Basic and diluted $  (0.26 ) $  (0.15 ) $  (0.78 ) $  (0.32 )
                             
    Shares used in computing net loss per share:                
             Basic and diluted   38,683     23,567     36,540     22,880  


    SPHERE 3D CORP.
    SELECTED BALANCE SHEETS INFORMATION
    (In thousands)

        September 30,     December 31,  
        2015     2014  
        (Unaudited)     (Unaudited)  
    ASSETS            
    Cash and cash equivalents $  5,109   $  4,258  
    Accounts receivable   11,943     15,488  
    Inventories   11,170     9,936  
    Other current assets   2,986     2,457  
         Total current assets   31,208     32,139  
    Property and equipment, net   4,227     4,427  
    Intangible assets, net   66,289     73,271  
    Goodwill   41,755     38,821  
    Other assets   492     605  
         Total assets $  143,971   $  149,263  
                 
                 
                 
    LIABILITIES AND EQUITY            
    Current liabilities $  38,494   $  37,051  
    Long-term debt — related party   19,500     19,500  
    Long-term deferred tax liabilities   4,332     4,387  
    Other long-term liabilities   2,550     3,185  
    Shareholders' equity   79,095     85,140  
         Total liabilities and equity $  143,971   $  149,263  


    SPHERE 3D CORP.
    NON-GAAP RECONCILIATIONS
    (In thousands except per share data)

        Three Months Ended     Nine Months Ended  
        September 30,     September 30,  
        2015     2014     2015     2014  
        (Unaudited)     (Unaudited)  
                             
    Revenue $  18,796   $  1,484   $  57,296   $  4,002  
                             
    Gross Profit - GAAP $  5,497   $ 551   $  17,243   $  1,774  
    Intangible asset amortization   704     -     1,961     -  
    Gross Profit - Non -GAAP $  6,201   $  551   $  19,204   $  1,774  
                             
    Gross Margin Percentages                        
    GAAP   29.2%     37.1%     30.1%      44.3%  
    Non-GAAP   33.0%     37.1%      33.5%     44.3%  
                             
    Net loss $  (10,230 ) $  (3,456 ) $  (28,628 ) $  (7,285 )
    Less:                        
    Interest   887     97     2,366     214  
    Tax   (2 )   -     179     -  
    Acquisition costs   218     530     218     858  
    Depreciation and amortization   1,809     1,094     5,737     2,326  
    Share-based compensation   2,695     792     4,017     2,595  
    Adjusted EBITDA $  (4,623 ) $  (943 ) $  (16,111 ) $  (1,292 )
                             
    Net loss per share:                        
    Basic and diluted $  (0.26 ) $ (0.15 ) $  (0.78 ) $  (0.32 )
                             
    Adjusted Net loss per share:                        
    Basic and diluted $  (0.12 ) $  (0.04 ) $  (0.44 ) $  (0.06 )
                             
    Shares used in computing net loss and adjusted net loss per share:                
    Basic and diluted   38,683     23,567     36,540     22,880  

    Non-GAAP Financial Measures:

    To supplement Sphere 3D’s consolidated financial statements presented in accordance with GAAP, the Company uses non-GAAP financial measures that exclude from the statement of operations the effects of interest expense, income taxes, depreciation and amortization, acquisition costs and share-based compensation. These non-GAAP financial measures are non-GAAP gross margin and adjusted EBITDA. 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.