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Sphere 3D Reports First Quarter Fiscal Year 2020 Financial Results

·5 min read

Toronto, Ontario--(Newsfile Corp. - June 24, 2020) - 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 first quarter ended March 31, 2020.

First Quarter 2020 Financial Results:

Our results for first quarter 2020 were as follows:

  • Net revenue for the first quarter of 2020 was $1.0 million, compared to $2.1 million for the first quarter of 2019.

  • Gross margin for first quarter of 2020 was 45.8%, compared to 32.6% for the first quarter of 2019.

  • Operating expenses for first quarter of 2020 were $1.6 million, compared to $2.4 million for the first quarter of 2019.

  • Share-based compensation expense for first quarter of 2020 was $5,000, compared to $124,000 for the first quarter of 2019. Depreciation and amortization was $247,000 for the first quarter of 2020, compared to $267,000 for the first quarter of 2019.

  • Net loss from operations for first quarter of 2020 was $1.1 million, or a net loss of $0.28 per share, compared to a net loss from operations of $1.8 million, or a net loss of $0.82 per share, for the first quarter of 2019.

Select Events Subsequent to First Quarter End:

  • Between April 7, 2020 and April 24, 2020, $377,000 of convertible debentures were converted into 580,580 common shares of the Company.

  • On April 30, 2020, the Company entered into an agreement to issue 1,694,000 shares of the Company's Series D Convertible Preferred Stock and warrants to purchase up to 1,694,000 common shares of the Company in a private placement transaction valued $1.1 million.

  • On May 15, 2020, the Company entered into an equity line agreement for the purchase of up to $11.0 million of common shares of the Company, as long as certain conditions are satisfied, including the effectiveness of a resale registration statement being filed on Form S-1. The Company will control the timing and amount of any sales. The agreement contains a floor price of $1.58 per common share. This allows the Company to fund its needs in a more expedient and cost-effective manner, on the pricing terms set forth in the Purchase Agreement. The equity line is designed to provide capital to the Company as it is required.

  • The completion of certain transactions subsequent to the end of the quarter have increased the Company's equity balance by adding approximately $2.6 million to the equity balance that was reported as of March 31, 2020.

Investor Conference Call:

Sphere 3D will not be hosting a first quarter fiscal year 2020 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 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:
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 

 

 

 

 

 

March 31,

 

 

 

 

 

2020

 

 

2019

 

 

 

 

 

 (Unaudited)

 

 Revenue............................................................................................................. 

  

$

1,010

 

$

2,130

 

 Cost of revenue.................................................................................................. 

  

 

547

 

 

1,435

 

 Gross profit...................................................................................................... 

  

 

463

 

 

695

 

 

 

  

 

 

 

 

 

 

 Operating expenses: 

  

 

 

 

 

 

 

 

 Sales and marketing.................................................................................................. 

  

 

304

 

 

453

 

 

 Research and development.................................................................................................. 

  

 

339

 

 

697

 

 

 General and administrative...................................................................... 

  

 

984

 

 

1,252

 

 

 

  

 

1,627

 

 

2,402

 

 Loss from operations.................................................................................................. 

  

 

(1,164

)

 

(1,707

)

 

 Interest expense - related party......................................................................................... 

  

 

-

 

 

(142

)

 

 Interest expense......................................................................................... 

  

 

(9

)

 

(3

)

 

 Other income, net........................................................................................... 

  

 

70

 

 

8

 

 Net loss………………………………………………………………………….. 

  

$

(1,103

)

$

(1,844

)

 

 

  

 

 

 

 

 

 

 Net loss per share: 

 

 

 

 

 

 

 

 

Basic and diluted………………………………………………………… 

  

$

(0.28

)

$

(0.82

)

 Shares used in computing net loss per share: 

  

 

 

 

 

 

 

 

Basic and diluted............................................................................................... 

  

 

3,947,657

 

 

2,236,590

 

 SPHERE 3D CORP. 

 

 CONDENSED CONSOLIDATED BALANCE SHEETS 

 

 (In thousands) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

 

 

2020

 

 

2019

 

 

 

 

 

 (Unaudited) 

 

 

 (Unaudited) 

 

 ASSETS 

 

 

 

 

 

 

 

 Cash and cash equivalents...................................................................... 

 

$

285

 

$

149

 

 Accounts receivable, net..................................................................... 

 

 

335

 

 

369

 

 Inventories........................................................................................ 

 

 

694

 

 

753

 

 Other current assets..................................................................................... 

 

 

666

 

 

670

 

 

 Total current assets..................................................................... 

  

 

1,980

 

 

1,941

 

 Investment in affiliate............................................................................. 

  

 

2,100

 

 

2,100

 

 Intangible assets, net.................................................................................... 

 

 

1,976

 

 

2,301

 

 Goodwill.................................................................................................... 

 

 

1,385

 

 

1,385

 

 Other assets............................................................................................. 

 

 

616

 

 

679

 

 

 Total assets.................................................................................... 

  

$

8,057

 

$

8,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 LIABILITIES AND SHAREHOLDERS' EQUITY 

 

 

 

 

 

 

 

 Current liabilities.................................................................................. 

 

$

6,750

 

$

6,646

 

 Convertible debt.................................................................................. 

 

 

725

 

 

-

 

 Other long-term liabilities..................................................................... 

 

 

381

 

 

520

 

 Total shareholders' equity.................................................................... 

 

 

201

 

 

1,240

 

 

 Total liabilities and shareholders' equity..................................................................... 

  

$

8,057

 

$

8,406​

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/58511