Quarterly Revenue up 64%
Year-Over-Year$9 Million Annualized Expense Reduction
Program ImplementedReiterate Cash Flow Breakeven During
2016Conference Call Today at 4:30 p.m. ET
Qumu Corporation (NASDAQ: QUMU) today reported financial results
for the third quarter ended September 30, 2015.
Third quarter revenue was $9.6 million, an increase of 64%,
compared to the third quarter 2014. Year-to-date revenue was $24.3
million, an increase of 34%, compared to the same period last
year.
Third quarter net loss per share was $(0.79) compared to $(0.33)
in the third quarter 2014. Third quarter 2015 results included
severance expense of $784,000 or $(0.08) per share, an equipment
operating lease loss of $1 million or $(0.11) per share, and a tax
benefit of $163,000 or $0.02 per share; and the third quarter 2014
results included a tax benefit of $4.5 million or $0.51 per share.
During the third quarter 2015, the Company implemented an expense
reduction program that is expected to result in more than $9
million in annualized expense reductions compared to the first nine
months of 2015 annualized.
“The third quarter results continue to reflect strong sequential
and year-over-year revenue growth,” said Vern Hanzlik, Qumu’s new
President and Chief Executive Officer. “I am excited for the
opportunity to lead Qumu at this pivotal time in the evolution of
the fast growing enterprise video market. I have had the privilege
over the past three years to help create the foundation of our
winning culture. I am proud of what our employees have accomplished
to date and I look forward to increasing Qumu’s leadership
advantage in the market. During the quarter we continued to execute
our enterprise strategy by providing world class video solutions
for the largest companies in the world. We believe we offer the
only solution flexible and robust enough to be deployed just as our
enterprise customers require, whether on premise, in the cloud or
through a hybrid solution. Based on our strong pipeline, we believe
video communication and management continues to grow rapidly in all
of our target markets.”
“Additionally,” Mr. Hanzlik continued, “we implemented a
significant expense reduction program in the third quarter that
will allow us to move into next year well positioned to attain our
goal of being cash flow breakeven during 2016 without sacrificing
our growth objectives.”
Other Quarterly Information
- Total headcount was 194 as of September
30, 2015 compared to 232 as of June 30, 2015 and 222 as of December
31, 2014.
- Contracted commitments of $7.5 million
for the third quarter of 2015 compared to $6.6 million for the
third quarter 2014 and $8.3 million for the second quarter 2015.
The decline from the second quarter 2015 was primarily due to the
timing of maintenance and support renewals.
- Backlog was $31.3 million as of
September 30, 2015 compared with $33.4 million as of June 30,
2015.
- Cash, marketable securities and
restricted cash were $15.1 million as of September 30, 2015,
compared to $21.8 million as of June 30, 2015, reflecting the third
quarter operating loss and the impact on cash from changes in
working capital primarily related to a $1.5 million customer
payment that was anticipated in the third quarter but was received
in the fourth quarter. Restricted cash as of September 30, 2015
consisted of $2.3 million in proceeds from the sale of the disc
publishing business in July 2014. These funds were released from
escrow in October 2015.
GuidanceDuring the balance of 2015, the Company continues
to expect significant bookings and revenue growth based on a strong
fourth quarter pipeline. As a result, the Company expects:
- Annual revenue growth in 2015 of
approximately 30%,
- Gross margin in 2015 of approximately
48%, and
- Cash and marketable securities at the
end of 2015 to be approximately $14 million.
Additionally, based on revenue growth and the expense reduction
program, the Company continues to anticipate that it will be cash
flow breakeven during 2016.
Conference CallThe Company has scheduled a conference
call and webcast to review its third quarter results today,
November 5, 2015 at 4:30 p.m. Eastern Time. The dial-in number for
the conference call is 877-407-8293 for domestic participants and
201-689-8349 for international participants. Investors can also
access a webcast of the live conference call by linking through the
investor relations section of the Qumu website, www.qumu.com.
Webcasts will be archived on Qumu’s website.
Forward-Looking StatementsThis press release contains
forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Any statements contained in this press release that are
not statements of historical fact may be deemed to be
forward-looking statements. Without limiting the foregoing, words
such as “may,” “will,” “expect,” “believe,” “anticipate,” or
“estimate” or comparable terminology are intended to identify
forward-looking statements. Such forward-looking statements
include, for example, statements about: the Company’s future
revenue and operating performance, cash balances, future product
mix or the timing of recognition of revenue; the demand for the
Company’s products or software; and the success of cost reduction
measures. The statements made by the Company are based upon
management’s current expectations and are subject to certain risks
and uncertainties that could cause the actual results to differ
materially from those described in the forward-looking statements.
These risks and uncertainties include the risk factors described in
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2014 and other factors set forth in the Company’s
filings with the Securities and Exchange Commission.
About QumuVideo is today’s document. Qumu Corporation
(NASDAQ: QUMU) provides the tools businesses need to create,
manage, secure, deliver and measure the success of their videos.
Qumu's innovative solutions release the power in video to engage
and empower employees, partners and clients. Organizations around
the world realize the greatest possible value from video they
create and publish using Qumu. Whatever the audience size, viewer
device or network configuration, Qumu solutions are how business
does video. Additional information can be found at
www.qumu.com.
QUMU CORPORATION
Condensed Consolidated Statements of
Operations
(unaudited - in thousands, except per
share data)
Three Months Ended Nine Months Ended
September 30, September 30, 2015
2014 2015 2014 Revenues: Software
licenses and appliances $ 3,267 $ 2,193 $ 6,970 $ 8,103 Service
6,335 3,660 17,365 10,083 Total
revenues 9,602 5,853 24,335 18,186 Cost
of revenues: Software licenses and appliances 1,057 615 1,996 2,850
Service 3,813 2,608 11,141 7,154 Total
cost of revenues 4,870 3,223 13,137 10,004
Gross profit 4,732 2,630 11,198 8,182
Operating expenses: Research and development 2,848 2,321
8,508 6,609 Selling, general and administrative 9,059 7,473 26,549
21,411 Amortization of purchased intangibles 200 157
599 470 Total operating expenses 12,107 9,951
35,656 28,490 Operating loss (7,375 ) (7,321 )
(24,458 ) (20,308 ) Other income (expense): Interest, net (10 ) 11
21 33 Loss on currency exchange (89 ) (33 ) (157 ) (56 ) Other, net
— (28 ) — (38 ) Total other income (expense), net (99
) (50 ) (136 ) (61 ) Loss before income taxes (7,474 ) (7,371 )
(24,594 ) (20,369 ) Income tax benefit (163 ) (4,492 ) (482 )
(5,938 ) Net loss from continuing operations (7,311 ) (2,879 )
(24,112 ) (14,431 ) Net income (loss) from discontinued operations,
net of tax 79 11,559 (10 ) 14,365 Net income
(loss) $ (7,232 ) $ 8,680 $ (24,122 ) $ (66 ) Net income
(loss) per basic and diluted share: Net loss from continuing
operations per share $ (0.79 ) $ (0.33 ) $ (2.61 ) $ (1.65 ) Net
income (loss) from discontinued operations per share $ 0.01 $ 1.32
$ — $ 1.64 Net income (loss) per share $ (0.78 ) $ 0.99 $ (2.61 ) $
(0.01 ) Basic and diluted weighted average shares outstanding 9,288
8,780 9,233 8,743
QUMU CORPORATION
Condensed Consolidated Balance
Sheets
(in thousands)
September 30, December 31, Assets
2015
2014 Current assets:
(unaudited) Cash and cash
equivalents $ 4,029 $ 11,684 Marketable securities 8,754 23,486
Restricted cash 2,301 2,300 Receivables, net of allowance for
doubtful accounts 8,401 10,090 Finished goods inventories 329 168
Prepaid income taxes 700 301 Prepaid expenses and other current
assets 3,863 3,633 Deferred income taxes - current 64 64 Current
assets from discontinued operations — 1,026 Total
current assets 28,441 52,752 Property and equipment,
net of accumulated depreciation 3,147 1,899 Intangible assets, net
of amortization 11,669 13,384 Goodwill 8,295 8,525 Other assets -
non-current 3,861 3,617 Total assets $ 55,413
$ 80,177 Liabilities and Stockholders’ Equity Current
liabilities: Trade accounts payable and other accrued liabilities $
3,008 $ 3,529 Accrued compensation 2,947 6,222 Deferred revenue
9,953 9,015 Deferred income taxes - current 13 110 Income taxes
payable — 53 Financing obligations - current 279 — Current
liabilities from discontinued operations 50 448 Total
current liabilities 16,250 19,377 Non-current
liabilities: Deferred revenue - non-current 1,339 1,047 Income
taxes payable - non-current 9 8 Deferred tax liability -
non-current 904 1,071 Financing obligations - non-current 519 —
Other non-current liabilities 1,114 401 Total
non-current liabilities 3,885 2,527 Total liabilities
20,135 21,904 Stockholders’ equity: Common stock 92
91 Additional paid-in capital 65,091 63,566 Accumulated deficit
(28,721 ) (4,599 ) Accumulated other comprehensive loss (1,184 )
(785 ) Total stockholders’ equity 35,278 58,273
Total liabilities and stockholders’ equity $ 55,413
$ 80,177
QUMU CORPORATION
Condensed Consolidated Statements of
Cash Flows
(unaudited - in thousands)
Nine Months Ended September 30, 2015
2014 Cash flows used in operating activities: Net
loss $ (24,122 ) $ (66 ) Net (income) loss from discontinued
operations, net of tax 10 (14,365 ) Net loss from continuing
operations (24,112 ) (14,431 ) Adjustments to reconcile net loss to
net cash used in continuing operating activities: Depreciation and
amortization 2,292 1,411 Stock-based compensation 1,430 1,281 Loss
on disposal of property and equipment 23 31 Deferred income taxes
(235 ) 85 Current income tax benefit resulting from income
generated from discontinued operations — (5,888 ) Changes in
operating assets and liabilities: Receivables 1,647 (4,364 )
Finished goods inventories (162 ) (76 ) Prepaid income taxes /
income taxes payable (407 ) 310 Prepaid expenses and other assets
(300 ) (2,231 ) Trade accounts payable and other accrued
liabilities (524 ) 175 Accrued compensation (3,264 ) 498 Deferred
revenue 1,296 2,624 Other non-current liabilities (11 ) (91 ) Net
cash used in continuing operating activities (22,327 ) (20,666 )
Net cash provided by discontinued operating activities 665
1,483 Net cash used in operating activities (21,662 )
(19,183 ) Cash flows provided by (used in) investing activities:
Purchases of marketable securities (9,500 ) (31,250 ) Sales and
maturities of marketable securities 24,215 14,250 Purchases of
property and equipment (530 ) (760 ) Proceeds from sale of property
and equipment 43 — Net cash provided by (used in)
continuing investing activities 14,228 (17,760 ) Net cash provided
by (used in) discontinued investing activities (1 ) 19,676
Net cash provided by investing activities 14,227 1,916
Cash flows provided by (used in) financing activities:
Common stock repurchases to settle employee withholding liability
(46 ) (84 ) Principal payments on financing obligations (241 ) —
Proceeds from employee stock plans 142 123 Net cash
provided by (used in) continuing financing activities (145 ) 39 Net
cash used in discontinued financing activities — (59 ) Net
cash used in financing activities (145 ) (20 ) Effect of exchange
rate changes on cash (75 ) (90 ) Net decrease in cash and cash
equivalents (7,655 ) (17,377 ) Cash and cash equivalents, beginning
of period 11,684 37,725 Cash and cash
equivalents, end of period $ 4,029 $ 20,348
QUMU CORPORATION
Non-Cash Charges Included in Continuing
Operations
(unaudited - in thousands)
Three Months Ended Nine Months Ended
September 30, September 30, 2015
2014 2015 2014 Continuing Operations:
Depreciation $ 269 $ 190 $ 740 $ 521 Amortization of intangibles
Cost of revenues $ 320 $ 140 $ 953 $ 420 Amortization of purchased
intangibles 200 157 599 470 Total amortization
of intangibles $ 520 $ 297 $ 1,552 $ 890
Equity compensation: Cost of revenues $ 40 $ 4 $ 115 $ 23 Research
and development 39 52 201 169 Selling, general and administrative
283 441 1,114 1,089 Total equity compensation
$ 362 $ 497 $ 1,430 $ 1,281
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151105006753/en/
Qumu CorporationInvestor Contact:Peter Goepfrich, CFO,
612-638-9096
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