Conference Call to Be Held Today at 4:30 pm
Eastern Time
Inpixon (NASDAQ: INPX), a leading indoor positioning and data
analytics company, today reported financial results for the second
quarter ended June 30, 2017 and provided an update on corporate
developments.
Second Quarter 2017 Financial Highlights:
- 2017 Q2 revenue of $15.1 million
- 2017 Q2 gross margin of 22%
- 2017 Q2 GAAP net loss of $2.72 per
share
- 2017 Q2 Proforma Non-GAAP net loss1 of
$1.89 per share
- 2017 Q2 Non-GAAP Adjusted EBITDA1 loss
of $2.7 million
“In the second quarter, Inpixon accomplished much in the areas
of engineering and market outreach to further strengthen our
foundations as a leading provider of innovative Indoor Positioning
Analytics products and services. With growing pipeline and customer
acceptance, we expect that our sales cycles will continue to
improve as we emerge from the early stages of indoor positioning
technology and advance the learning curve required for customers to
rollout such solutions in more locations,” said Nadir Ali,
Inpixon’s CEO. “We are also pleased with the growth in our
Infrastructure segment resulting primarily from our government
contracts, which we expect will increase revenues through the
remainder of 2017 as compared to historical results.”
Second Quarter 2017 Financial Results
Revenue: Net revenues for the three months ended June 30, 2017
were $15.1 million compared to $13.3 million for the comparable
period in the prior year. This $1.8 million increase in revenues
was primarily attributable to the acquisition of Integrio
Technologies in November 2016. For the three months ended June 30,
2017, Indoor Positioning Analytics revenue was $1.2 million
compared to $1.3 million for the prior year period. Infrastructure
revenue was $13.9 million for the three months ended June 30, 2017,
and $12.1 million for the prior year period.
Gross Profit: Gross profit for the three month period ended June
30, 2017 was $3.4 million as compared to $3.4 million for the same
period in 2016. The gross profit margin for the three months ended
June 30, 2017 was 22% compared to 26% for the prior year period.
The decrease in gross margin was primarily attributable to lower
gross margins on the Integrio revenue which is included in the
Infrastructure segment. Indoor Positioning Analytics gross margins
for the three months ended June 30, 2017 and 2016 were 67% and 77%,
respectively. Gross margins for the Infrastructure segment for the
three months ended June 30, 2017 and 2016 were 19% and 20%,
respectively.
Net Loss: GAAP net loss attributable to common stockholders for
the three months ended June 30, 2017 was $6.4 million compared to
$4.2 million for the prior year period. This increase in net loss
of $2.2 million was attributable to the increase in amortization of
intangibles and depreciation costs, additional costs incurred for
the Integrio operations offset by a reduction in operating expenses
related to Inpixon USA.
Non-GAAP net loss1: Proforma non-GAAP net loss per basic and
diluted common share for the three months ended June 30, 2017 was
($1.89) compared to ($1.65) for the prior year period. This
decrease was attributable to the same changes discussed above under
“Net Loss”.
Non-GAAP adjusted EBITDA1: Adjusted EBITDA for the three months
ended June 30, 2017 was a loss of $2.7 million compared to a loss
of $2.2 million for the prior year period. Non-GAAP adjusted EBITDA
is defined as net income (loss) before interest, provision for
(benefit from) income taxes, and depreciation and amortization plus
adjustments for other income or expense items, non-recurring items
and non-cash stock-based compensation.
1 A reconciliation of GAAP to non-GAAP financial measures is
provided in the financial statement tables included in this press
release. An explanation of these measures is also included under
the heading “Non-GAAP Financial Measures”.
2017 Business Highlights and Recent Developments
- Inpixon recently completed a credit
facility with Payplant which will allow increased flexibility in
meeting working capital needs by advancing funds to allow Inpixon
to process its commercial and government purchase orders.
- Inpixon’s subsidiary, Inpixon Federal,
received two delivery orders from the Bureau of Census totaling
$1.4 million.
- Inpixon joined ng Connect Program to
advance the adoption and development of indoor positioning
analytics and collaborate with the multi-industry open innovation
ecosystem founded by Nokia to provide an indoor positioning and
analytics platform for next generation networks, cloud and IoT
technologies.
- Inpixon signed a technology refresh
transaction with a leading beverage distributor for $750,000 that
will span Q2 and Q3 of 2017 and will upgrade the customer’s
existing infrastructure.
- Inpixon Federal expanded its offering
of Canon USA’s RadPRO SecurPASS Security Screening System,
partnering with Virtual Imaging, Inc., a wholly owned subsidiary of
Canon U.S.A., Inc., to improve the safety and security of federal,
state and local government correctional facilities and has
delivered over 100 RadPRO SecurPASS Security Screening Systems
across the nation’s correctional facilities.
- Inpixon was approved to expand its NASA
Solutions for Enterprise-Wide Procurement V (SEWP V) catalog to
include offerings that meet the requirements for the
Government-wide Strategic Solutions (GSS) for laptops and
monitors.
- Inpixon was approved for the Army
Consolidated Buy number 25. The Army ADMC-2 CB-25 ordering period
is from June 26, 2017 and ends September 30, 2017.
- Inpixon won the 2017 IoT Security
Excellence Award.
- Inpixon gained channel partner momentum
with its Indoor Positioning Analytics and Security Offerings,
adding IT solutions firm GDT, Phirelight Security Solutions and
Integrated Security Technologies (IST) as channel partners to
deliver the benefits of its sensor technology, real-time
positioning, and data analytics to customers across
industries.
- Inpixon announced the closing of an
underwritten public offering pursuant to which it received
approximately $6 million in gross proceeds which was primarily used
to satisfy outstanding debt obligations.
- Inpixon was selected by Finance
Factors, Hawaii’s largest locally-owned depository financial
services loan company, to protect consumer data and privacy.
- Inpixon announced a $2.5 million
purchase order from a leading health insurer for the design and
deployment of a highly modernized infrastructure platform for the
customer’s core commercial claims processing application.
- Inpixon announced the appointment of
Zaman Khan as the President of Inpixon Federal.
All results summarized in this press release (including the
financial statement tables) should be considered preliminary, are
qualified in their entirety by the financial statement tables
included in this press release and are subject to change.
Conference Call Information
Management will host a conference call on Monday, August 21,
2017, at 4:30 p.m. Eastern Time to review financial results and
corporate highlights. Following management’s formal remarks, there
will be a question and answer session.
To listen to the conference call, interested parties within the
U.S. should call 1-844-824-3831. International callers should call
+1-412-317-5141. All callers should ask for the Inpixon conference
call. The conference call will also be available through a live
webcast, which can be accessed at
http://client.irwebkit.com/inpixon.
A replay of the call will be available approximately one hour
after the end of the call through September 21, 2017. The replay
can be accessed via Inpixon’s website or by dialing 1-877-344-7529
(U.S.) or +1-412-317-0088 (international). The replay conference
playback code is 10111622.
About Inpixon
Inpixon (NASDAQ: INPX) is a leader in Indoor Positioning and
Data Analytics. Inpixon sensors are designed to find all accessible
cellular, Wi-Fi, and Bluetooth devices anonymously. Paired with a
high performance, data analytics platform this technology delivers
visibility, security, and business intelligence on any commercial
or government premises worldwide. Inpixon’s products,
infrastructure solutions, and professional services group help
customers take advantage of mobile, big data, analytics, and the
Internet of Things (IoT) to uncover the untold stories of the
indoors. For the latest insight on Indoor Positioning and Data
Analytics, follow Inpixon on LinkedIn and @InpixonHQ on
Twitter.
Safe Harbor Statement
All statements in this release that are not based on historical
fact are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 and the provisions
of Section 27A of the Act, and Section 21E of the Securities
Exchange Act of 1934, as amended. While management has based any
forward-looking statements included in this release on its current
expectations, the information on which such expectations were based
may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties and other factors, many of which are outside
of the control of Inpixon and its subsidiaries, which could cause
actual results to materially differ from such statements. Such
risks, uncertainties, and other factors include, but are not
limited to, the fluctuation of global economic conditions, the
performance of management and employees, the Company’s ability to
obtain financing, competition, general economic conditions and
other factors that are detailed in the Company’s periodic and
current reports available for review at www.sec.gov. Furthermore,
we operate in a highly competitive and rapidly changing environment
where new and unanticipated risks may arise. Accordingly, investors
should not place any reliance on forward-looking statements as a
prediction of actual results. We disclaim any intention to, and
undertake no obligation to, update or revise forward-looking
statements.
Non-GAAP Financial Measures
Management believes that certain financial measures not in
accordance with generally accepted accounting principles in the
United States (“GAAP"”) are useful measures of operations. EBIDTA,
Adjusted EBITDA and pro forma net loss per share are non-GAAP
measures. Inpixon defines “EBITDA” as net income (loss) before
interest, provision for (benefit from) income taxes, and
depreciation and amortization. Management uses Adjusted EBITDA as
the matrix in which it manages the business and Inpixon defines
“Adjusted EBITDA” as EBITDA plus adjustments for other income or
expense items, non-recurring items and non-cash stock-based
compensation. Inpixon defines “pro forma net loss per share” as
GAAP net loss per share adjusted for stock-based compensation,
amortization of intangibles, change in the fair value of shares to
be issued, change in the fair value of derivative liability and
one-time non-recurring charges such as severance costs, acquisition
costs and the costs associated with the public offering.
Management provides Adjusted EBITDA and pro forma net loss per
share measures so that investors will have the same financial
information that management uses, which may assist investors in
assessing Inpixon’s performance on a period-over-period basis.
Adjusted EBITDA or pro forma net loss per share is not a measure of
financial performance under GAAP, and should not be considered an
alternative to net income (loss) or any other measure of
performance under GAAP, or to cash flows from operating, investing
or financing activities as an indicator of cash flows or as a
measure of liquidity. Adjusted EBITDA and pro forma net loss per
share have limitations as analytical tools and should not be
considered either in isolation or as a substitute for analysis of
Inpixon’s results as reported under GAAP.
INPIXON AND SUBSIDIARIES CONDENSED CONSOLIDATED
BALANCE SHEETS (In thousands, except number of shares and
par value data) June 30, December 31, 2017
2016 (Unaudited) (Audited)
ASSETS Current assets: Cash and
cash equivalents $ 42 $ 1,821 Accounts receivable, net 6,047 11,788
Notes and other receivables 414 362 Inventory 793 1,061 Prepaid
licenses and maintenance contracts 9,058 13,321 Assets held for
sale 23 23 Prepaid assets and other current assets 1,244
1,768 Total current assets 17,621 30,144
Prepaid licenses and maintenance contracts, non-current 3,788 5,169
Property and equipment, net 1,105 1,385 Software development costs,
net 2,269 2,058 Intangible assets, net 14,924 17,691 Goodwill 9,028
9,028 Other assets 969 998 Total assets
$ 49,704 $ 66,473
LIABILITIES AND STOCKHOLDERS’
(DEFICIT) EQUITY Current liabilities: Accounts payable $ 25,866
$ 23,027 Accrued liabilities 3,447 4,169 Deferred revenue 10,633
15,043 Short-term debt 2,523 6,887 Derivative liabilities 3,775 0
Liabilities held for sale 2,049 2,041 Total current
liabilities 48,293 51,167 Deferred revenue, non-current 4,346 5,960
Long-term debt 1,586 4,047 Other liabilities 349 371 Acquisition
liability - Integrio 1,558 1,648 Acquisition liability - LightMiner
-- 567 Total liabilities 56,132 63,760
Commitments and contingencies Stockholders’ (deficit) equity:
Preferred Stock - $0.001 par value; 5,000,000 shares authorized,
4,060 issued and outstanding as of June 30, 2017 -- --
Convertible Series 1 Preferred Stock -
$1,000 stated value, 0 issued and outstanding at June 30, 2017 and
2,250 issued and outstanding at December 31, 2016Liquidation
preference of $0 at June 30, 2017 and $2,250,000 at December 31,
2016.
-- 1,340
Series 2 Convertible Preferred Stock -
$1,000 stated value; 4669 shares authorized; 4060 issued and
outstanding at June 30, 2017 and 0 issued and outstanding at
December 31, 2016Liquidation preference of $4,060,000 at June 30,
2017 and $0 at December 31, 2016.
1,508 --
Common Stock - $0.001 par value;
50,000,000 shares authorized; 4,309,131 and 2,171,886 issued and
4,293,209 and 2,155,964 outstanding at June 30, 2017 and December
31, 2016, respectively
4 2 Additional paid-in capital 67,336 64,148 Treasury stock, at
cost, 15,922 shares (695 ) (695 ) Due from Sysorex Consulting Inc.
(666 ) (666 ) Accumulated other comprehensive income 41 52
Accumulated deficit (71,952 ) (59,473 ) Stockholders’
(deficit) equity attributable to Inpixon (4,424 ) 4,708
Non-controlling interest (2,004 ) (1,995 ) Total
stockholders' (deficit) equity (6,428 ) 2,713
Total liabilities and stockholders’ (deficit) equity $ 49,704
$ 66,473
INPIXON AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (In thousands, except per share data)
For the Three Months Ended For the Six Months
Ended June 30, June 30, 2017 2016 2017 2016
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues
Products $ 12,210 $ 9,157 $ 21,659 $ 19,505 Services 2,886
4,175 6,919 7,914
Total Revenues 15,096 13,332
28,578 27,419
Cost of Revenues
Products 10,231 7,448 18,285 15,490 Services 1,481
2,440 3,620 4,538
Total Cost of Revenues 11,712 9,888
21,905 20,028
Gross
Profit 3,384 3,444 6,673 7,391
Operating expenses:
Research and development
454 537 1,012 1,124 Sales and marketing 2,181 2,336 4,221 4,837
General and administrative 4,595 3,452 9,255 7,417 Acquisition
related costs 2 10 5 30 Amortization of intangibles 1,382
1,057 2,767 2,113
Total operating expenses 8,614 7,392
17,260 15,521
Loss from
operations (5,230 ) (3,948 ) (10,587 ) (8,130 )
Other income
(expense) Interest expense (1,344 ) (255 ) (2,027 ) (398 )
Change in fair value of shares to be issued -- 9 -- 8 Change in
fair value of derivative liability 152 -- 208 -- Other income
-- 19 (65 ) 39
Total other income (expense) (1,192 ) (227 )
(1,884 ) (351 )
Loss from continuing
operations (6,422 ) (4,175 ) (12,471 ) (8,481 )
Loss from
discontinued operations, net of tax (9 ) --
(17 ) --
Net loss (6,431 )
(4,175 ) (12,488 ) (8,481 )
Net loss attributable to
non-controlling interest (4 ) (4 ) (9 )
(8 )
Net loss attributable to stockholders of Inpixon
$ (6,427 ) $ (4,171 ) $ (12,479 ) $ (8,473 )
Comprehensive
loss Net Loss (6,431 ) (4,175 ) (12,488 ) (8,481 ) Unrealized
foreign exchange gain/(loss) from cumulative translation
adjustments (21 ) 2 (11 ) 19
Comprehensive loss $ (6,452 ) $ (4,173 ) $ (12,499 )
$ (8,462 )
Net loss per share - basic and diluted $ (2.72 )
$ (2.49 ) $ (5.50 ) $ (5.05 )
Weighted average common shares
outstanding: Basic and Diluted 2,372,637
1,675,267 2,272,330 1,674,490
INPIXON AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In thousands)
For the Six Months Ended June 30, 2017
2016 (Unaudited)
Cash flows from operating
activities: Net loss $ (12,488 ) $ (8,481 ) Adjustment to
reconcile net loss to net cash used in operating activities:
Depreciation and amortization 834 550 Amortization of intangible
assets 2,767 2,113 Stock based compensation 993 711 Change in fair
value of shares to be issued -- (8 ) Change in fair value of
derivative liability (208 ) -- Amortization of technology 33 --
Amortization of deferred financing costs 102 -- Amortization of
debt discount 1,251 -- Provision for doubtful accounts -- 212 Other
41 8 Changes in operating assets and liabilities: Accounts
receivable and other receivables 5,691 (777 ) Inventory 267 (153 )
Other current assets 523 241 Prepaid licenses and maintenance
contracts 5,644 477 Other assets (106 ) (43 ) Accounts payable
2,839 2,278 Accrued liabilities (515 ) (580 ) Deferred revenue
(6,024 ) 3,483 Other liabilities (101 ) (149 ) Total
Adjustments 14,031 8,363
Net Cash Provided by (Used in)
Operating Activities 1,543 (118 )
Cash Flows Used in
Investing Activities: Purchase of property and equipment (86 )
(146 ) Investment in capitalized software (718 ) (817
)
Net Cash Flows Used in Investing Activities (804 ) (963 )
Cash Flows Provided by Financing
Activities:
Net repayment of line of credit (4,345 ) (2,305 ) Repayment of term
loan -- (333 ) Advances to related party -- (3 ) Net proceeds from
issuance of common stock, preferred stock and warrants 5,570 --
Repayment of debenture (3,050 ) -- Repayment of notes payable (20 )
-- Advances from related party -- 1 Net proceeds from convertible
promissory notes 2,000 -- Repayment of convertible promissory notes
(2,662 ) --
Net Cash Used in Financing
Activities (2,507 ) (2,640 )
Effect of Foreign Exchange Rate
on Changes on Cash (11 ) 19
Net Decrease in Cash and Cash
Equivalents (1,779 ) (3,702 )
Cash and Cash Equivalents -
Beginning of period 1,821 4,060
Cash and Cash Equivalents - End of period $ 42 $ 358
Reconciliation of Non-GAAP Financial Measures:
(In thousands)
Three Months Ended Six
Months Ended June 30, June 30,
2017 2016
2017 2016 Net loss
attributable to common stockholders $ (6,427 ) $ (4,171 ) $ (12,479
) $ (8,473 ) Adjustments: Non-recurring one-time charges:
Acquisition transaction/financing costs 2 10 5 30 Change in the
fair value of shares to be issued -- (9 ) -- (8 ) Change in the
fair value of derivative liability (152 ) -- (208 ) -- Severance --
-- 27 --
Stock-based compensation – acquisition
costs
-- -- 7 --
Stock-based compensation – compensation
and related benefits
711 347 986 711 Interest expense 1,344 255 2,027 398 Depreciation
and amortization 1,816 1,344
3,601 2,663 Adjusted EBITDA $ (2,706 ) $
(2,224 ) $ (6,034 ) $ (4,679 ) (In thousands, except
share data)
Three Months Ended Six Months Ended
June 30, June 30, 2017
2016 2017
2016 Net loss attributable to common stockholders $
(6,427 ) $ (4,171 ) $ (12,479 ) $ (8,473 ) Adjustments:
Non-recurring one-time charges: Acquisition transaction/financing
costs 2 10 5 30 Change in the fair value of shares to be issued --
(9 ) -- (8 ) Change in the fair value of derivative liability (152
) -- (208 ) -- Severance -- -- 27 --
Stock-based compensation – acquisition
costs
-- -- 7 --
Stock-based compensation – compensation
and related benefits
711 347 986 711 Amortization of intangibles 1,383
1,057 2,766 2,113
Proforma non-GAAP net loss $ (4,483 ) $ $ (2,766 ) $ (8,896 ) $ $
(5,627 ) Proforma non-GAAP net loss per basic and diluted common
share $ (1.89 ) $ (1.65 ) $ (3.91 ) $ (3.36 ) Weighted average
basic and diluted common shares outstanding 2,372,637
1,675,267 2,272,330 1,674,490
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170821005797/en/
Inpixon Investor Relations:CORE IRScott Arnold,
+1-516-222-2560Managing Directorwww.coreir.comorMedia
Contact:PAN CommunicationsHilary Katulak,
+1-617-502-4347hkatulak@pancomm.com
Inpixon (NASDAQ:INPX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Inpixon (NASDAQ:INPX)
Historical Stock Chart
From Apr 2023 to Apr 2024