Xura, Inc. (“Xura”) (NASDAQ:MESG) today announced its preliminary
estimated results for the third fiscal quarter ended October 31,
2015.
Preliminary Consolidated
Highlights: Below is selected preliminary consolidated
financial information for the three and nine months ended October
31, 2015 and 2014, prepared in accordance with generally accepted
accounting principles (“GAAP”), except as noted.
|
Three Months Ended October 31, |
|
Nine Months Ended October 31, |
(In millions,
unaudited) (1) |
2015 |
|
2014 |
|
2015 |
|
2014 |
Total revenue |
$ |
82 |
|
|
$ |
65 |
|
|
$ |
189 |
|
|
$ |
205 |
|
Total costs and
expenses |
100 |
|
|
84 |
|
|
247 |
|
|
262 |
|
Loss from
operations |
(18 |
) |
|
(19 |
) |
|
(58 |
) |
|
(58 |
) |
Expense
adjustments |
29 |
|
|
10 |
|
|
46 |
|
|
22 |
|
Depreciation |
4 |
|
|
4 |
|
|
10 |
|
|
10 |
|
Adjusted EBITDA (2) |
$ |
14 |
|
|
$ |
(5 |
) |
|
$ |
(2 |
) |
|
$ |
(26 |
) |
|
|
|
|
|
|
|
|
Operating margin |
(22 |
)% |
|
(30 |
)% |
|
(31 |
)% |
|
(28 |
)% |
|
|
|
|
|
|
|
|
Adjusted EBITDA (2)
margin |
17 |
% |
|
(8 |
)% |
|
(1 |
)% |
|
(13 |
)% |
(1) Percentages and amounts may not calculate due to rounding
differences.(2) "Adjusted EBITDA" has not been prepared in
accordance with GAAP.
"We continue to execute our strategic plan, and
are pleased with our progress as Xura is on track to achieve its
objectives. The company is starting to realize the anticipated
benefits of the three strategic transactions closed this year as
reflected in our quarterly preliminary results. Due to the recent
strategic transactions and the complexity of the related accounting
items, we continue to work on filing our Form 10-Q and intend to
file it next week.” said Philippe Tartavull, President and Chief
Executive Officer, Xura, Inc.
Selected Balance Sheet
Highlights: Below is selected balance sheet data:
|
As of |
(In
millions) |
October 31, 2015 |
|
July 31, 2015 |
|
|
|
|
Cash and cash
equivalents |
$ |
138 |
|
|
$ |
346 |
|
Restricted cash
(including long-term restricted cash) and bank time deposits |
58 |
|
|
61 |
|
Total |
$ |
196 |
|
|
$ |
407 |
|
On August 6, 2015, the company paid
approximately $171 million in cash as part of the consideration for
the acquisition of Acision.
Conference Call Details
Xura will be conducting a conference call today,
December 15, 2015 at 8:00 a.m. ET. To listen to the conference
call live, please dial (678) 825-8369. Please dial-in at least ten
minutes before the scheduled start time. A live webcast and
presentation can be accessed at www.Xura.com by following
links to the events and presentations page under the Investors
section. Following the call, a replay of the webcast will be
archived in the same location.
Delay in Form 10-Q Filing
As previously disclosed, Xura was not be able to
file its Quarterly Report on Form 10-Q for the fiscal quarter ended
October 31, 2015 (the “Form 10-Q”) within the prescribed time
period. Xura continues to execute on its plan to complete the Form
10-Q as soon as practicable. The reasons for the delay are
disclosed in the Form 12b-25 filed by Xura with the Securities and
Exchange Commission on December 11, 2015. In addition, Xura is
evaluating the implications on its controls.
Presentation of Non-GAAP Financial
Measures
We provide Adjusted EBITDA, a non-GAAP financial
measure, as additional information for our operating results.
Adjusted EBITDA is computed by management as a
loss from operations less depreciation and expense adjustments
consisting of the following: (i) stock-based compensation
expense; (ii) amortization of intangible assets; (iii)
compliance-related professional fees; (iv) compliance-related
compensation and other expenses; (v) acquisition and integration
costs (vi) strategic-related costs (vii) write-off of property and
equipment; (viii) certain litigation settlements and related costs;
(ix) restructuring expenses; and (x) certain other gains, losses
and expenses. Strategic related costs include business strategy
evaluation and mergers and acquisition efforts.
This measure is not in accordance with, or an
alternative for, GAAP financial measures and may be different from,
or not comparable to similarly titled or other non-GAAP financial
measures used by other companies. We believe that the presentation
of this non-GAAP financial measure provides useful information to
investors regarding certain additional financial and business
trends relating to our results of operations as viewed by
management in monitoring our businesses, reviewing financial
results and for planning purposes.
About Xura, Inc.
Xura offers a portfolio of digital services
solutions that enable global communications across a variety of
mobile devices and platforms. We help communication service
providers (“CSPs”) and enterprises navigate and monetize the
digital ecosystem to create innovative, new experiences through our
cloud-based offerings. Our solutions touch more than three billion
end points, through 350+ service providers and enterprises in 140+
countries. You can find us at www.Xura.com.
Forward-Looking Statements
This press release includes “forward-looking
statements.” Forward-looking statements include financial
projections, statements of plans and objectives for future
operations, statements of future economic performance, and
statements of assumptions relating thereto. In some cases,
forward-looking statements can be identified by the use of
terminology such as “may,” “expects,” “plans,” “anticipates,”
“estimates,” “believes,” “potential,” “projects,” “forecasts,”
“intends,” or the negative thereof or other comparable terminology.
The financial results provided in this press release are
preliminary and estimated, subject to ongoing review in connection
with the preparation of the company’s Quarterly Report on Form 10-Q
for the periods ended October 31, 2015, and therefore subject to
changes, which may be material. By their very nature,
forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause actual
results, performance and the timing of events to differ materially
from those anticipated, expressed or implied by the forward-looking
statements in this press release. Such risks or uncertainties may
give rise to claims or regulatory issues, increase exposure to
contingent liabilities and cause pressure on the company's stock
price. These risks and uncertainties relate to (among other
factors) the timing of the filing of the Form 10-Q and the contents
thereof, including the results of operations for the periods ended
October 31, 2015; revenues, product bookings, operating expenses
and cash flows, variability of our tax provision, as well as
acquisition-related, financial accounting and other risks
described in the sections entitled “Forward-Looking Statements” and
Item 1A, “Risk Factors” and elsewhere in the company's Annual
Report on Form 10-K, its Quarterly Reports on Form 10-Q for the
quarters ended April 30, 2015 and July 31, 2015, or in other
subsequently filed periodic, current or other reports. We undertake
no commitment to update or revise any forward-looking statements
except as required by law.
The risks and uncertainties noted above, as well
as others, are discussed in greater detail in our filings with the
SEC. The documents and reports we file with the SEC are available
through us, or our website, www.Xura.com, or through the SEC's
Electronic Data Gathering, Analysis, and Retrieval system (EDGAR)
at www.sec.gov.
CONTACT: Todd, Luke - Xura, Inc.
(781) 213-2131
Luke.Todd@Xura.com
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