Xura, Inc. (“Xura”) (NASDAQ:MESG) today announced its preliminary
estimated unaudited results for the fourth fiscal quarter and
fiscal year ended January 31, 2016 and disclosed that its
management is engaged in negotiations for the potential sale of the
company. The company also announced that it has postponed the
release of its financial results for the three months and year
ended January 31, 2016. The company expects to release its
financial results and file its annual report on Form 10-K by May 2,
2016. The company will issue a subsequent update announcing a
rescheduled date for the release and conference call.
Preliminary Consolidated
Highlights: Below is selected preliminary unaudited
consolidated financial information for the fiscal quarters and
fiscal years ended January 31, 2016 and 2015, prepared in
accordance with generally accepted accounting principles (“GAAP”),
except as noted.
(In millions,
unaudited) (1) |
Three Months EndedJanuary 31, |
|
Fiscal Year EndedJanuary 31, |
|
2016 |
|
|
2015 (3) |
|
2016 (3) |
|
2015 (3) |
Total revenue |
$ |
82 |
|
|
|
$ |
64 |
|
|
$ |
271 |
|
|
$ |
269 |
|
Total costs and
expenses |
90 |
|
|
|
71 |
|
|
337 |
|
|
333 |
|
Loss from
operations |
(8 |
) |
|
|
(7 |
) |
|
(66 |
) |
|
(64 |
) |
Expense
adjustments |
19 |
|
|
|
7 |
|
|
65 |
|
|
27 |
|
Depreciation |
3 |
|
|
|
4 |
|
|
14 |
|
|
14 |
|
Adjusted EBITDA
(2) |
$ |
14 |
|
|
|
$ |
4 |
|
|
$ |
13 |
|
|
$ |
(23 |
) |
|
|
|
|
|
|
|
|
|
Operating margin |
(10 |
)% |
|
|
(11 |
)% |
|
(24 |
)% |
|
(24 |
)% |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (2)
margin |
17 |
% |
|
|
6 |
% |
|
5 |
% |
|
(9 |
)% |
|
(1) Percentages and amounts may not calculate due to rounding
differences.(2) "Adjusted EBITDA" is a non-GAAP financial measure
which is calculated without giving effect to any adjustments from
US GAAP to IFRS.(3) Includes approximately $7.9 million, $11
million and $32 million in BSS Reseller Revenue for the three
months ended January 31, 2015 and for the fiscal years ended
January 31, 2016 and 2015, respectively. BSS Reseller Revenue for
the fiscal year ended January 31, 2016 were recognized in the first
and second quarters. BSS Reseller Revenue means revenue related to
contracts associated with the BSS business where the rights to
those contracts have not been fully transferred to Amdocs.
As of January 31, 2016, Xura had cash and cash equivalents
(including restricted cash) of approximately $170 million.
"Although revenue from Digital Communications solutions
generated from legacy Comverse customers ended the fiscal year at
$197 million which is well ahead of our expected mid-point revenue
range of $180 million, we experienced weakness in monetization and
enterprise as well as delays in Digital Communications revenue from
legacy Acision customers, primarily in Latin America. While we
firmly believe in the strategic importance of Acision to Xura, we
continue to focus on maximizing stockholder value and are currently
engaged in exclusive strategic negotiations for the potential sale
of the company to a third party at a purchase price of $25 per
share,” said Philippe Tartavull, President and Chief Executive
Officer, Xura, Inc.
“Our year end filing and earnings call are being
delayed for us to finalize our financial statements, including our
accounting for income taxes. The delay is largely attributable to
complex strategic negotiations for the potential sale of the
company. We continue to work toward filing our Form 10-K by
May 2, 2016,” continued Mr. Tartavull.
Fiscal 2016 Financial Outlook
Xura is providing the following financial outlook for the fiscal
year ending January 31, 2017 (“fiscal 2016”).
We currently expect:
- fiscal 2016 annual revenue to be between $340 million and $370
million;
- fiscal 2016 Adjusted EBITDA to be between $70 million and $85
million;
- cash and cash equivalents (including restricted cash) at the
end of fiscal 2016 to be between $170 million and $200 million;
and
- restructuring to be largely complete by the end of the third
quarter of fiscal 2016.
We continue to expect an annualized run rate Adjusted EBITDA of
between $100 million and $120 million for the third quarter of
fiscal 2016 (3Q’ 16 Annualized).
Conference Call Postponement and
Earnings Presentation
Xura has postponed its fourth quarter and fiscal
year 2016 earnings conference call, originally scheduled for
April 15, 2016, to allow for more time to finalize its
quarterly and year-end financial results. Xura intends to
issue a press release about its rescheduled earnings call date.
Delay in Form 10-K Filing
Xura has determined that it will not be able to
file its Annual Report on Form 10-K for the fiscal year ended
January 31, 2016 (the “Form 10-K”) within the prescribed time
period. Xura expects that the Form 10-K will be filed on or before
May 2, 2016. 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) acquisition and integration costs (v) strategic-related costs
(vi) write-off of property and equipment; (vii) restructuring
expenses; and (viii) certain other gains, losses and expenses
(collectively, "Expense Adjustments"). 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. This measure is used
by management in monitoring our businesses, evaluating our
financial results and for planning purposes. See “Consolidated
Reconciliation of GAAP to Non-GAAP Financial Measures” below.
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 the potential entry
into a transaction for the sale of the Company, the potential price
per share, the timing of filing the company’s Annual Report on Form
10-K for the fiscal year ended January 31, 2016, the company’s
fiscal 2016 financial outlook, statements about expected synergies
relating to recent transactions, statements of plans and objectives
for future operations, and 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.
Although the company is in exclusive strategic
negotiations for the potential sale of the company, as of the date
of this press release, the company has not entered into any
agreement in principle or any other agreement and there can be no
assurance that such negotiations will ultimately result in a
transaction.
The financial results provided in this press
release are unaudited, preliminary and estimated, subject to
ongoing internal review and external audit in connection with the
preparation of the company’s Annual Report on Form 10-K for the
fiscal year ended January 31, 2016, and therefore are subject to
changes.
Our 2016 guidance and other 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 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. Many of these risks and
uncertainties are 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 for the
fiscal year ended January 31, 2015, its Quarterly Reports on Form
10-Q for the quarters ended October 31, 2015, July 31, 2015 and
April 30, 2015, or may be disclosed 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 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.
XURA, INC. AND
SUBSIDIARIES |
CONSOLIDATED
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
(UNAUDITED) |
|
Reconciliation of loss from operations to Adjusted
EBITDA: |
|
|
Three Months EndedJanuary 31, |
|
Fiscal Year EndedJanuary, 31 |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
(in millions) (1) |
Loss from
operations |
$ |
(8 |
) |
|
$ |
(7 |
) |
|
$ |
(66 |
) |
|
$ |
(64 |
) |
Expense
adjustments: |
|
|
|
|
|
|
|
Stock-based compensation
expense |
2 |
|
|
2 |
|
|
9 |
|
|
9 |
|
Amortization of intangible
assets |
11 |
|
|
— |
|
|
23 |
|
|
— |
|
Compliance-related professional
fees |
— |
|
|
— |
|
|
— |
|
|
1 |
|
Acquisition and integration
costs |
2 |
|
|
— |
|
|
17 |
|
|
— |
|
Strategic-related costs |
— |
|
|
— |
|
|
1 |
|
|
3 |
|
Restructuring expenses |
3 |
|
|
3 |
|
|
13 |
|
|
12 |
|
Other |
1 |
|
|
2 |
|
|
2 |
|
|
2 |
|
Total expense adjustments |
19 |
|
|
7 |
|
|
65 |
|
|
27 |
|
Depreciation |
3 |
|
|
4 |
|
|
14 |
|
|
14 |
|
Adjusted EBITDA |
$ |
14 |
|
|
$ |
4 |
|
|
$ |
13 |
|
|
$ |
(23 |
) |
|
(1) Amounts may not calculate due to rounding differences.
CONTACT:
Luke Todd - Xura, Inc.
(207) 242-8138
Luke.Todd@Xura.com
Xura, Inc. (NASDAQ:MESG)
Historical Stock Chart
From May 2024 to Jun 2024
Xura, Inc. (NASDAQ:MESG)
Historical Stock Chart
From Jun 2023 to Jun 2024