Sphere 3D Reports Third Quarter Fiscal Year 2020 Financial Results
- Written by Newsfile
Toronto, Ontario--(Newsfile Corp. - November 16, 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 third quarter ended September 30, 2020.
Third Quarter 2020 Financial Results:
Our results for third quarter 2020 were as follows:
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Revenue for the third quarter of 2020 was $0.9 million, compared to $1.4 million for the third quarter of 2019.
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Gross margin for third quarter of 2020 was 60.0%, compared to 35.5% for the third quarter of 2019.
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Operating expenses for third quarter of 2020 were $2.2 million, compared to $1.8 million for the third quarter of 2019.
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Depreciation and amortization was $0.3 million for both the third quarter of 2020 and 2019.
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Net loss from operations for third quarter of 2020 was $1.2 million, or a net loss of $0.17 per share, compared to a net income from operations of $0.9 million, or a net income of $0.33 per share, for the third quarter of 2019.
Nine Months Ended September 30, 2020 Financial Results:
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Revenue for the first nine months of 2020 was $2.8 million, compared to $4.5 million for the first nine months of 2019.
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Gross margin for the first nine months of 2020 was 51.6%, compared to 31.9% for the first nine months of 2019.
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Operating expenses for the first nine months of 2020 were $6.2 million, compared to $6.0 million for the first nine months of 2019.
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Depreciation and amortization for the first nine months of 2020 was $0.7 million, compared to $0.8 for the first nine months of 2019.
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Net loss from operations for the first nine months of 2020 was $4.2 million, or a net loss of $0.81 per share, compared to a net loss from operations of $2.6 million, or a net loss of $1.09 per share, in the first nine months of 2019.
Investor Conference Call:Sphere 3D will not be hosting a third 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 and other filings with the United States Securities and Exchange Commission (www.sec.gov[1]) and with Canadian securities regulators (www.sedar.com[2]). 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+1-858-495-4211Investor.relations@sphere3d.com[3]
SPHERE 3D CORP.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data)
| Three Months Ended | Nine Months Ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Revenue | $ | 890 | $ | 1,368 | $ | 2,791 | $ | 4,461 | ||||
| Cost of revenue | 356 | 883 | 1,352 | 3,036 | ||||||||
| Gross profit | 534 | 485 | 1,439 | 1,425 | ||||||||
| Operating expenses: | ||||||||||||
| Sales and marketing | 336 | 550 | 872 | 1,494 | ||||||||
| Research and development | 264 | 460 | 947 | 1,673 | ||||||||
| General and administrative | 1,590 | 801 | 4,406 | 2,814 | ||||||||
| 2,190 | 1,811 | 6,225 | 5,981 | |||||||||
| Loss from operations | (1,656 | ) | (1,326 | ) | (4,786 | ) | (4,556 | ) | ||||
| Interest expense - related party | (191 | ) | (41 | ) | (309 | ) | (327 | ) | ||||
| Interest expense | (57 | ) | (9 | ) | (142 | ) | (24 | ) | ||||
| Other income, net | 715 | 2,261 | 1,002 | 2,283 | ||||||||
| Loss (income) before income taxes | (1,189 | ) | 885 | (4,235 | ) | (2,624 | ) | |||||
| Provision for income taxes | 1 | - | 4 | - | ||||||||
| Net (loss) income | $ | (1,190 | ) | $ | 885 | $ | (4,239 | ) | $ | (2,624 | ) | |
| Net (loss) income per share: | ||||||||||||
| Basic | $ | (0.17 | ) | $ | 0.33 | $ | (0.81 | ) | $ | (1.09 | ) | |
| Diluted | $ | (0.17 | ) | $ | 0.10 | $ | (0.81 | ) | $ | (1.09 | ) | |
| Shares used in computing net (loss) income per share: | ||||||||||||
| Basic | 6,949,010 | 2,668,311 | 5,240,003 | 2,403,373 | ||||||||
| Diluted | 6,949,010 | 8,909,761 | 5,240,003 | 2,403,373 | ||||||||
SPHERE 3D CORP.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)
| September 30, | December 31, | |||||
| 2020 | 2019 | |||||
| (Unaudited) | (Unaudited) | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 2,896 | $ | 149 | ||
| Accounts receivable, net | 259 | 369 | ||||
| Inventories | 659 | 753 | ||||
| Other current assets | 998 | 670 | ||||
| Total current assets | 4,812 | 1,941 | ||||
| Investment in affiliate | 2,100 | 2,100 | ||||
| Intangible assets, net | 3,091 | 2,301 | ||||
| Goodwill | 1,385 | 1,385 | ||||
| Other assets | 3,636 | 679 | ||||
| Total assets | $ | 15,024 | $ | 8,406 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities | $ | 7,997 | $ | 6,646 | ||
| Long-term debt | 667 | - | ||||
| Other long-term liabilities | 328 | 520 | ||||
| Total shareholders' equity | 6,032 | 1,240 | ||||
| Total liabilities and shareholders' equity | $ | 15,024 | $ | 8,406 | ||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/68308[4]
References
- ^ www.sec.gov (www.newsfilecorp.com)
- ^ www.sedar.com (www.newsfilecorp.com)
- ^ Investor.relations@sphere3d.com (www.newsfilecorp.com)
- ^ https://www.newsfilecorp.com/release/68308 (www.newsfilecorp.com)