Sphere 3D Provides Corporate Update and Announces Investor Conference Call
October 30 2017 - 8:00AM
Sphere 3D Corp. (NASDAQ:ANY), a containerization,
virtualization, and data management solutions provider, today is
providing the following corporate update.
The Company continues to make progress on multiple fronts as it
works through its assessment of strategic alternatives. Concurrent
with such review, the Company continues to focus on driving its
overall business towards profitability.
The Company reports that its preliminary net revenue for the
third quarter of fiscal year 2017 is expected to exceed $21.5
million, representing a 16% increase compared to $18.5 million for
the third quarter of 2016, and an 11% increase compared to $19.4
million from the previous quarter.
In addition, the Company was able to make significant
improvements to its Adjusted EBITDA loss for the third quarter of
fiscal 2017. Although still preliminary, the Company anticipates
that the Adjusted EBITDA loss will be at the lowest level since it
began reporting this non-GAAP metric in the fourth quarter of
2014.
The Company maintained reductions in operating expenses with a
slight improvement in the third fiscal quarter of 2017 compared to
the second quarter of 2017; the Company continues to evaluate its
operating expenses to seek opportunities for additional
improvements.
Detailed financial results for the third fiscal quarter of 2017
will be contained in the Company’s Form 6-K, expected to be filed
with the SEC on November 9, 2017.
As reported earlier this year, the Company refined its
go-to-market approach through the creation of a storage group that
is branded as the Overland-Tandberg storage business group and the
Virtualization group marketed under the HVE brand.
Subsequent to this, and a byproduct of the strategic review
being undertaken, the Company has completed an analysis of its Data
Protection & Archive products (which includes RDX, Tape, Media
and related Services) and associated costs as a pro-forma business
unit within the Overland-Tandberg storage business group. This
analysis shows that as a standalone business unit, it would have
seen positive Adjusted EBITDA for each of the last eight quarters.
The Company believes this product group could see additional growth
and profitability with a number of recent product launches, such as
its RDX Ransom Block solution and the NEO Agility LTFS product line
with its new features that enable integration with Microsoft Azure
Cloud. The Company continues to review the overall business with an
eye towards unlocking potential value for stakeholders.
In addition, the Company has accomplished the following
milestones and recent customer wins as part of its overall
strategic plan:
- Recent Corporate Developments
- Favorable ruling and dismissal of the Special Situations Funds
complaint in its entirety with prejudice by the Commercial Division
of the Supreme Court of the State of New York; Special Situation
Funds had sought $6.0 million in contractual damages, plus costs
and fees
- Extended the Opus Credit Agreement maturity date to March 31,
2018
- Engagement with EYCA as its exclusive financial advisor to
review a broad range of strategic options
- Business Key Milestones
- HVE has won Huawei Americas Partner of the Year for the 2nd
year in the row; more details at this blog post
- HVE recently announced another customer contract win with a
value that exceeds $1 million
- The Company announced during VMworld, in August of this year,
multiple product offerings that leverage a wide range of Sphere
technologies
- Overland-Tandberg Announced earlier this month the
Overland-Tandberg rdxLOCK and RansomBlock functionality to defend
against enterprise software security threats like Ransomware
“We are excited to see the positive momentum from our business
restructuring earlier this year to move to a distinct focus on the
Virtualization market through our HVE brand, and the storage market
through our Overland-Tandberg brand,” said Eric Kelly, chairman and
chief executive officer for Sphere 3D. “Our total top line results
continue to improve because we are better equipped to support the
unique market dynamics for each of these product groups.
Also, we have seen a significant improvement in our bottom line,
based on the preliminary adjusted EBITDA numbers in the third
quarter. Maintaining these demonstrated improvements in operational
efficiencies will help keep us on our path to profitability.”
Investor Conference Call:Simultaneously Sphere
3D announces it will report financial results for its third
quarter fiscal year 2017 on November 9, 2017.
The company will host an investor conference call on the same
day at 2:00 p.m. PDT (5:00 p.m. EDT) to discuss the
Company’s 2017 second quarter financial results. To access
the call, dial (844) 268-1747 (Toll Free) or (918) 559-5655
(International) and give the participant pass code 7799158.
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 7799158. The replay will be available beginning
approximately two hours after the call and will remain available
for one week.
About Sphere 3DSphere 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, along
with its wholly owned subsidiaries Overland
Storage and Tandberg Data, has a strong portfolio of
brands, including Overland-Tandberg, HVE
ConneXions and UCX ConneXions, dedicated to helping
customers achieve their IT goals. For more information,
visit www.sphere3d.com. Follow us on
Twitter @Sphere3D, @HVEconneXions and @ovltb.
Safe Harbor StatementThis 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 comply with the covenants in our credit facilities
or to obtain additional debt or equity financing; any increase in
our future cash needs; the Company’s ability to maintain listing
with the NASDAQ Capital Market; our ability to successfully
integrate the UCX and HVE ConneXions business with Sphere 3D’s
other businesses; 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;
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 of the statements in this press release,
including 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
GroupLauren SloaneTel: +1 415-217-2632Lauren@blueshirtgroup.com
Sphere 3D (NASDAQ:ANY)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sphere 3D (NASDAQ:ANY)
Historical Stock Chart
From Sep 2023 to Sep 2024