Envivio Reports Fourth Quarter Fiscal 2015 Financial Results
March 19 2015 - 4:05PM
Q4 Revenue Was $12.7 Million, up 42% Sequentially
Company Expanded Customer Base at Several Tier 1 Customers
Envivio, Inc. (Nasdaq:ENVI), a leading provider of software-based
video processing and delivery solutions, today announced financial
results for the fourth quarter and fiscal year 2015 ending January
31, 2015.
Financial Highlights
- Revenue for the fourth quarter of fiscal 2015 was $12.7
million, compared with $9.0 million in the third quarter of fiscal
2015 and $12.5 million in the fourth quarter of fiscal 2014.
Revenue for fiscal year 2015 was $41.6 million, compared with $43.2
million in fiscal 2014.
- GAAP net loss for the fourth quarter of fiscal 2015 was $1.6
million, or $0.06 per share, compared with a net loss of $5.4
million, or $0.20 per share, in the third quarter of fiscal 2015
and net loss of $2.0 million, or $0.08 per share, in the fourth
quarter of fiscal 2014. GAAP net loss for fiscal 2015 was $15.6
million, or $0.57 per share, compared with net loss of $12.2
million, or $0.45 per share in fiscal 2014.
- Non-GAAP net loss for the fourth quarter of fiscal 2015 was
$0.5 million, or $0.02 per share. This is compared with a net loss
of $4.1 million, or $0.15 per share, in the third quarter of fiscal
2015 and net loss of $1.4 million, or $0.05 per share, in the
fourth quarter of fiscal 2014. Non-GAAP net loss for fiscal 2015
was $13 million compared with a net loss of $9.8 million in the
prior year.
- The GAAP and non-GAAP results for the fourth quarter of fiscal
2015 includes a one-time charge of $0.7 million related to
restructuring expenses.
"We are encouraged by our results, and by the positive business
environment as we head into fiscal 2016. While we have been
impacted by the consolidation in the market, we are starting to see
results from the increased adoption of our video processing
software solutions in our customer base," said Julien Signès,
founder and CEO of Envivio.
"In the fourth quarter three U.S. service providers contributed
significant revenue from incremental purchases of Envivio products
and services. Additionally, we received an order from a leading
Latin America Tier 1 customer who chose Envivio for key expansions,
products and services. This resulted in sequential top line growth
in the fourth quarter. Revenue for the quarter was $12.7 million,
up 42% sequentially," added Signès. "Over the last quarter we have
taken a number of initiatives to reduce our expenses and are
pleased to report a reduction in our losses as we drive towards
profitability."
As of January 31, 2015, Envivio had cash and cash equivalents of
$37.8 million, compared with $37.9 million at the end of the prior
quarter.
Q4 Business and Product Highlights
- Tier 1 Operator Revenue - Three U.S. and one
international Tier 1 service providers contributed significant
revenue from incremental purchases of Envivio products and
services.
- New Customers – Envivio added four new
customers to its roster of leading broadcast and operator
companies.
- Customer Expansions and Wins – French mobile
operator Bouyges Telecom chose Envivio for multiple services, while
Taiwanese telecom operator Chunghwa chose Envivio to power its 4K
HEVC trial.
- Envivio Board Appointment – Former Time Warner
EVP and CTO Mike LaJoie has joined the Envivio Board of
Directors. Mr. LaJoie has a deep understanding of Envivio's
customers and technology.
- Global Market Leadership Award – Renowned
analyst firm Frost and Sullivan named Envivio the #1 global vendor
for Live Video Transcoding (Media and Entertainment). This
prestigious industry award also highlighted Envivio for its
innovation and for capturing the highest revenue share in this
segment. It also recognized Envivio for being best in class for
customer value, and for offering a unified approach to new-age Pay
TV Services.
- Mobile World Congress, Partnering with Huawei
– At the recent Mobile World Congress, Envivio partnered with
Huawei and Sony to demonstrate 4K HEVC in action.
Conference Call Information
Envivio will host a conference call and live audio webcast for
analysts and investors at 5:00 p.m. ET on March 19th, 2015.
- Parties in the United States and Canada can access the call by
dialing 1-877-407-4018.
- International parties can access the call by dialing
1-201-689-8471.
- When dialing into the call, ask for the Envivio Fourth Quarter
FY 2015 Financial Results.
The audio webcast will be accessible on Envivio's investor
relations website at http://ir.envivio.com. A replay of the
conference call will be available beginning at 8 p.m. ET March 19,
2015 through September 1, 2015 until 11:59 p.m. ET. To access the
replay, parties in the United States and Canada should call
1-877-870-5176 and enter PIN 13603345. International parties should
call 1-858-384-5517 and enter PIN 13603345.
Non-GAAP Financial Measurements
This news release dated March 19th, 2015 contains non-GAAP
financial measures. Tables are provided in this news release
that reconcile the non-GAAP financial measures to the most directly
comparable financial measures prepared in accordance with Generally
Accepted Accounting Principles (GAAP). These non-GAAP financial
measures include non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating loss, non-GAAP net loss and non-GAAP
net loss per share. To supplement the Company's consolidated
financial statements presented on a GAAP basis, management believes
that these non-GAAP measures provide useful information about the
Company's core operating results and thus are appropriate to
enhance the overall understanding of the Company's past financial
performance and its prospects for the future. Management is
excluding from its non-GAAP operating results Financial Accounting
Standards Board ASC 718 (FAS 123R) stock-based compensation, and
the estimated settlement costs of the Company's stockholder class
action lawsuit and restructuring expenses. Management uses these
non-GAAP measures to evaluate the Company's financial results, and
believes these measures provide useful information to investors.
For its internal budgeting process, management also uses financial
statements that do not include, when applicable, share-based
compensation expense and the one-time settlement expense. The
adjustments to the Company's GAAP results are made with the intent
of providing both management and investors a more complete
understanding of the Company's underlying operational results,
trends and performance. The presentation of additional
information is not meant to be considered in isolation or as a
substitute for or superior to financial results determined in
accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including
statements about the increased adoption of Envivio's video
processing software solutions in its customer base, Envivio's drive
towards profitability and the potential for Envivio's design wins
to lay a foundation for future growth. Actual results may vary
materially due to a number of factors including, but not limited
to, the risk that, upon completion of further closing procedures,
that the financial results for the three and twelve months ended
January 31, 2015 are different than the results set forth in this
press release, unexpected changes in Envivio's business, changes in
capital spending in the markets Envivio serves, the inability to
convert bookings into revenue at all or in a timely basis within a
quarterly period, the failure of Envivio's target markets to
develop as anticipated, the actions taken by Envivio to reduce
operating expenses are not effective, disruption with existing or
the failure to develop new relationships with channel partners,
unpredictable sales cycles, fluctuations in our operating results,
failure to develop new and enhanced products in a timely manner,
the loss of a key customer, the loss of our sole source
manufacturer, the loss of a key supplier, claims of technology
infringement, general economic conditions and other risks detailed
from time to time in Envivio's SEC reports. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Envivio
undertakes no obligation to publicly release or otherwise disclose
the result of any revision to these forward-looking statements that
may be made as a result of events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Product information is intended to outline our general product
direction, is not a commitment, promise or legal obligation to
deliver any material, code, or functionality, and should not be
relied on in making a purchasing decision. The development,
release, and timing of any features or functionality described for
our products remains at our sole discretion. Envivio reserves the
right to modify future product plans at any time. These new
software options may be purchased separately when and if
available.
About Envivio
Envivio (Nasdaq:ENVI) is a global market leader and innovator of
video software solutions that are trusted by video service
providers and content companies worldwide to power stunning video
quality and captivating, personalized experiences to their millions
of viewers on any device, over any network. Leveraging its
pioneering and technically superior virtualized video delivery
solutions, Envivio enables video operators of any size to increase
revenues and reduce costs while uniquely providing the
best-in-class quality, reliability, efficiency, and scalability to
support the new age of video anywhere. Envivio is
headquartered in South San Francisco, California with offices
worldwide in France, China and Singapore. Visit www.envivio.com for
more information, or connect with us on LinkedIn.
ENVIVIO, INC. AND
SUBSIDIARIES |
Condensed Consolidated
Balance Sheets |
(UNAUDITED) |
|
|
|
|
January 31,
2015 |
January 31,
2014 |
|
(in thousands) |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 37,790 |
$ 47,873 |
Accounts receivable, net of allowance for
doubtful accounts |
8,780 |
10,766 |
Inventory |
171 |
75 |
Prepaid expenses and other current
assets |
3,655 |
4,257 |
Deferred inventory costs |
86 |
177 |
Total current assets |
50,482 |
63,148 |
Property and equipment, net |
3,591 |
3,924 |
Restricted cash |
329 |
-- |
Other non-current assets |
202 |
207 |
Total assets |
$ 54,604 |
$ 67,279 |
|
|
|
Liabilities and stockholders'
equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 5,480 |
$ 5,772 |
Accrued compensation |
5,070 |
5,308 |
Accrued liabilities |
3,296 |
1,682 |
Deferred revenue, current |
5,999 |
6,198 |
Total current liabilities |
19,845 |
18,960 |
Deferred revenue, net of current
portion |
711 |
541 |
Other non-current liabilities |
1,562 |
1,404 |
Deferred rent |
498 |
698 |
Total liabilities |
22,616 |
21,603 |
|
|
|
Stockholders' equity: |
|
|
Common stock |
28 |
28 |
Additional paid-in capital |
156,605 |
154,562 |
Accumulated other comprehensive loss |
(1,079) |
(960) |
Accumulated deficit |
(123,566) |
(107,954) |
Total stockholders'
equity |
31,988 |
45,676 |
Total liabilities and stockholders'
equity |
$ 54,604 |
$ 67,279 |
|
|
ENVIVIO, INC. AND
SUBSIDIARIES |
Condensed Consolidated
Statements of Operations |
(UNAUDITED) |
|
|
|
|
|
|
|
Three Months
Ended |
Year
Ended |
|
(in thousands except for share
and per share amounts) |
|
January 31, 2015 |
October 31, 2014 |
January 31, 2014 |
January 31, 2015 |
January 31, 2014 |
Revenue: |
|
|
|
|
|
Product |
$ 9,330 |
$ 5,961 |
$ 10,054 |
$ 30,254 |
$ 34,488 |
Professional services and support |
3,401 |
2,999 |
2,434 |
11,302 |
8,716 |
Total revenue |
12,731 |
8,960 |
12,488 |
41,556 |
43,204 |
Cost of revenue: |
|
|
|
|
|
Product |
3,772 |
2,553 |
3,457 |
12,452 |
12,342 |
Professional services and support |
711 |
666 |
690 |
2,725 |
2,268 |
Total cost of revenue |
4,483 |
3,219 |
4,147 |
15,177 |
14,610 |
Gross profit |
8,248 |
5,741 |
8,341 |
26,379 |
28,594 |
Operating expenses: |
|
|
|
|
|
Research and development |
2,507 |
2,173 |
2,244 |
9,418 |
9,141 |
Sales and marketing |
4,603 |
5,047 |
4,770 |
20,091 |
19,726 |
General and administrative |
2,499 |
3,816 |
3,161 |
11,984 |
11,595 |
Total operating expenses |
9,609 |
11,036 |
10,175 |
41,493 |
40,462 |
Loss from operations |
(1,361) |
(5,295) |
(1,834) |
(15,114) |
(11,868) |
Interest income (expense), net |
-- |
(3) |
4 |
1 |
43 |
Other income (expense), net |
(30) |
23 |
(36) |
(115) |
(12) |
Loss before provision for income taxes |
(1,391) |
(5,275) |
(1,866) |
(15,228) |
(11,837) |
Income tax provision |
178 |
154 |
175 |
384 |
351 |
Net loss |
$ (1,569) |
$ (5,429) |
$ (2,041) |
$ (15,612) |
$ (12,188) |
|
|
|
|
|
|
Net loss per share of common stock, basic and
diluted |
$ (0.06) |
$ (0.20) |
$ (0.08) |
$ (0.57) |
$ (0.45) |
|
|
|
|
|
|
Shares used in computing net loss per share
of common stock, basic and diluted |
27,713,625 |
27,712,288 |
27,118,399 |
27,500,647 |
27,102,111 |
|
|
ENVIVIO, INC. AND
SUBSIDIARIES |
Reconciliation of
Non-GAAP Financial Measures |
(UNAUDITED) |
|
|
|
|
|
|
|
Three Months
Ended |
Year
Ended |
|
(in thousands except for share
and per share amounts) |
|
January 31, 2015 |
October 31, 2014 |
January 31, 2014 |
January 31, 2015 |
January 31, 2014 |
|
|
|
|
|
|
GAAP gross margin |
$ 8,248 |
$ 5,741 |
$ 8,341 |
$ 26,379 |
$ 28,594 |
Stock-based compensation |
12 |
7 |
-- |
34 |
3 |
Non-GAAP gross margin |
8,260 |
5,748 |
8,341 |
26,413 |
28,597 |
|
|
|
|
|
|
GAAP operating expenses |
9,609 |
11,036 |
10,175 |
41,493 |
40,462 |
Stock-based compensation |
(291) |
(325) |
(646) |
(1,838) |
(2,341) |
Restructuring expense |
(718) |
-- |
-- |
(718) |
-- |
Litigation settlement expense |
-- |
(1,000) |
-- |
-- |
-- |
Non-GAAP operating expenses |
8,600 |
9,711 |
9,529 |
38,937 |
38,121 |
|
|
|
|
|
|
GAAP operating loss |
(1,361) |
(5,295) |
(1,834) |
(15,114) |
(11,868) |
Stock-based compensation |
303 |
332 |
646 |
1,872 |
2,344 |
Restructuring expense |
718 |
-- |
-- |
718 |
-- |
Litigation settlement expense |
-- |
1,000 |
-- |
-- |
-- |
Non-GAAP operating loss |
(340) |
(3,963) |
(1,188) |
(12,524) |
(9,524) |
|
|
|
|
|
|
GAAP net loss |
(1,569) |
(5,429) |
(2,041) |
(15,612) |
(12,188) |
Stock-based compensation |
303 |
332 |
646 |
1,872 |
2,344 |
Restructuring expense |
718 |
-- |
-- |
718 |
-- |
Litigation settlement expense |
-- |
1,000 |
-- |
-- |
-- |
Non-GAAP net loss |
$ (548) |
$ (4,097) |
$ (1,395) |
$ (13,022) |
$ (9,844) |
|
|
|
|
|
|
GAAP net loss per share of common stock,
basic and diluted |
$ (0.06) |
$ (0.20) |
$ (0.08) |
$ (0.57) |
$ (0.45) |
Non-GAAP net loss per share of common stock,
basic and diluted |
$ (0.02) |
$ (0.15) |
$ (0.05) |
$ (0.47) |
$ (0.36) |
Shares used in computing net loss per share
of common stock, basic and diluted |
27,713,625 |
27,712,288 |
27,118,399 |
27,500,647 |
27,102,111 |
CONTACT: Envivio
Judith Coley
Vice President, Corporate & Investor Communications
pr@envivio.com
+1.650.243.2700
NMN Advisors
Investor Relations
Avelina Ibarra Kauffman
ir@envivio.com
+1.510.344.2664
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