- Unaudited Q4 2020 sales of Mezzanine products increase 50%
sequentially to $1.6 million in the Quarter
- Total gross profit (unaudited) improves sequentially by 600
basis points to 57%
- Company pays down loan obligations, ending the year with
stronger balance sheet
Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), the
award-winning maker of multi-stream collaboration solutions, today
reported preliminary unaudited financial results for the fourth
quarter of 2020 and an update on its cash position and balance
sheet. All fourth quarter 2020 figures in this release are
approximate due to the preliminary nature of this announcement.
Q4 2020 Financial Highlights
The Company expects to report the following financial results
for the fourth quarter 2020:
- Unaudited fourth quarter 2020 product sales from our flagship
Mezzanine™ collaboration suite increased more than 50% sequentially
to over $1.6 million, versus $1.1 million for the third quarter of
2020.
- Unaudited fourth quarter 2020 total revenue increased more than
20% sequentially to over $3.9 million, versus $3.3 million for the
third quarter of 2020, and exceeding the Q4 revenue estimate of
$3.6 million by the Wall Street analyst following the Company.
- Unaudited gross profit margin increased to 57% for the fourth
quarter of 2020, compared sequentially to 51% for the third quarter
of 2020 and to 40% for the second quarter of 2020.
- Unaudited cash balance at December 31, 2020 was $5.3 million.
As of December 31, 2020, the Company has no debt outstanding other
than the Company’s $2.4 million PPP Loan, of which approximately
$2.2 million is expected to be forgiven.
- Unaudited net income of $1.4 million for the fourth quarter of
2020, compared sequentially to a net loss of $2.1 million for the
third quarter of 2020 and to a net loss of $3.4 million for the
second quarter of 2020. During the fourth quarter of 2020, the
Company recorded a non-cash gain on debt extinguishment of $3.1
million.
- Unaudited adjusted EBITDA (“AEBITDA”) loss of $0.5 million for
the fourth quarter of 2020, compared sequentially to an AEBITDA
loss of $1.0 million for the third quarter of 2020 and to an
AEBITDA loss of $2.0 million for the second quarter of 2020.
AEBITDA loss is a non-GAAP financial measure. See “Non-GAAP
Financial Information” below for additional information regarding
this non-GAAP financial measure, and “GAAP to Non-GAAP
Reconciliation” for a reconciliation of this non-GAAP financial
measure to net income (loss).
Additionally, on February 12, 2021, Oblong began trading on the
Nasdaq Capital Market and all Series D and Series E Preferred Stock
converted to common stock. As of February 12, 2021, the Company has
no remaining preferred stock outstanding.
“It’s clear that the COVID-19 pandemic has accelerated digital
transformation, requiring IT and facilities teams to rethink where
and how their constituents interact within office environments.
Hybrid workforces are now taking shape looking for optimal user
experiences – both remote and in-person – that enhance productivity
through higher levels of engagement. Legacy systems and
point-product solutions cobbled together do not work for the new
hybrid workforce. A new model is required to engage today’s
increasingly mobile workforce and we believe Oblong’s technologies
are strongly positioned to capitalize on the inevitable return to
physical offices,” commented Pete Holst, Chairman and CEO of
Oblong. “Having eliminated our loan obligations to SVB, recently
listing on the Nasdaq Capital Market and substantially simplifying
our capital structure as a result, we ended the year with a much
stronger balance sheet and growing momentum in our Mezzanine™
collaboration suite.”
The preliminary fourth quarter 2020 figures provided in this
press release are unaudited and subject to revision. Final results
for the fourth quarter 2020 will be provided in a press release
substantially concurrently with our Annual Report on Form 10-K for
the year ended December 31, 2020 (the “2020 Annual Report”).
Investors are encouraged to carefully review that press release and
the 2020 Annual Report when such documents are made available for a
complete analysis of the Company’s results from operations and
financial condition.
Non-GAAP Financial Information
Adjusted EBITDA (“AEBITDA”) loss, a non-GAAP financial measure,
is defined as net income (loss) before depreciation and
amortization, stock-based compensation, impairment charges,
severance, and interest and other (income) expense, net. AEBITDA
loss is not intended to replace operating loss, net income (loss),
cash flow or other measures of financial performance reported in
accordance with generally accepted accounting principles (GAAP).
Rather, AEBITDA loss is an important measure used by management to
assess the operating performance of the Company and to compare such
performance between periods. AEBITDA loss as defined here may not
be comparable to similarly titled measures reported by other
companies due to differences in accounting policies. Therefore,
AEBITDA loss should be considered in conjunction with net income
(loss) and other performance measures prepared in accordance with
GAAP, such as operating loss or cash flow provided by (used in)
operating activities, and should not be considered in isolation or
as a substitute for GAAP measures, such as net income (loss),
operating loss or any other GAAP measure of liquidity or financial
performance. A GAAP to non-GAAP reconciliation of net income (loss)
to AEBITDA loss is shown below.
GAAP to Non-GAAP Reconciliation
(unaudited):
Q4 2020
Q3 2020
Q2 2020
Net income (loss)
$
1,448
$
(2,085
)
$
(3,385
)
Depreciation and amortization
748
780
796
Interest and other expense, net
17
102
85
Gain on debt extinguishment
(3,117
)
—
—
Impairment charges
256
117
—
Severance
10
21
475
Stock-based compensation
168
28
29
Adjusted EBITDA Loss
$
(470
)
$
(1,037
)
$
(2,000
)
About Oblong, Inc.
Oblong (Nasdaq: OBLG) provides innovative and patented
technologies that change the way people work, create, and
communicate. Oblong’s flagship product Mezzanine™ is a remote
meeting technology platform that offers simultaneous content
sharing to achieve situational awareness for both in-room and
remote collaborators. Oblong supplies Mezzanine systems to Fortune
500 enterprise customers and is a Cisco Solutions Plus integration
partner. For more information, visit Oblong’s website, Twitter and
Facebook pages.
Forward-looking and cautionary statements
The preliminary financial results for the fourth quarter 2020
presented herein represent the most current information available
to management and reflect estimates and assumptions. The company’s
actual results may differ materially from these preliminary results
due to the completion of the company’s financial closing
procedures, final adjustments and other developments that may arise
between the date of this press release and the time that financial
results for the fourth quarter 2020 are finalized. The foregoing
preliminary financial results have not been compiled or examined by
our independent registered public accounting firm nor have our
independent registered public accounting firm performed any
procedures with respect to this information or expressed any
opinion or any form of assurance of such information. These
preliminary financial results should not be viewed as a substitute
for full financial statements prepared in accordance with U.S. GAAP
or as a measure of performance. In addition, these preliminary
financial results are not necessarily indicative of the results to
be achieved for any future period. This press release and any oral
statements made regarding the subject of this release contain
forward-looking statements as defined under Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and are made under the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. All statements, other than statements of historical
facts, that address activities that Oblong assumes, plans, expects,
believes, intends, projects, estimates or anticipates (and other
similar expressions) will, should or may occur in the future are
forward-looking statements. Oblong’s actual results may differ
materially from its expectations, estimates and projections, and
consequently you should not rely on these forward-looking
statements as predictions of future events. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release include statements relating to (i) the
Company’s unaudited preliminary fourth quarter 2020 results, (ii)
potential forgiveness of any portion of the PPP Loan, (iii) the
Company’s potential future growth and financial performance and
(iv) the success of its products and services. The forward-looking
statements are based on management’s current belief, based on
currently available information, as to the outcome and timing of
future events, and involve factors, risks, and uncertainties,
including the volatility of market price for our securities, that
may cause actual results in future periods to differ materially
from such statements. A list and description of these and other
risk factors can be found in the Company’s Annual Report on Form
10-K for the year ending December 31, 2019 and in other filings
made by the Company with the SEC from time to time, including the
Company’s Quarterly Report on Form 10-Q for the three and nine
months ended September 30, 2020, filed with the SEC on November 16,
2020 (the “Quarterly Report”). Any of these factors could cause
Oblong’s actual results and plans to differ materially from those
in the forward-looking statements. Therefore, the Company can give
no assurance that its future results will be as estimated. The
Company does not intend to, and disclaims any obligation to,
correct, update, or revise any information contained herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20210225005343/en/
Brett Maas Hayden IR, LLC brett@haydenir.com 646-536-7331
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