Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), the
award-winning maker of multi-stream collaboration solutions, today
reported financial results for the first quarter ending March 31,
2022.
“Our results in the first quarter are emblematic of larger
themes cascading throughout the conventional workplace. IT leaders
and facility planners are gradually re-opening traditional offices
throughout the world while carefully measuring how and when
employees choose to use those spaces. As the notion of ‘hybrid
work’ becomes standardized, we believe interest in our products
will gain more traction as companies (re)design purpose driven
workspaces that draw current and prospective employees rather than
relying on the status quo of pre-Covid laborious commutes and
cubicles. While the market opportunity for Mezzanine™ percolates,
we’ve also undertaken a detailed strategic review process to create
optionality and opportunities for Oblong moving forward. This
process has been underway throughout the first quarter and we plan
to identify and communicate an optimal direction that builds
shareholder value in both the near and long term,” commented Pete
Holst, President and CEO of Oblong.
- As of March 31, 2022, the Company had $6.6 million of cash and
no debt.
- Total revenue was $1.5 million for the first quarter of 2022
versus $1.9 million for the first quarter of 2021.
- Net loss of $4.5 million for the first quarter of 2022,
compared to a net loss of $3.4 million for the first quarter of
2021. During the first quarter of 2022, the Company recorded a
non-cash impairment charge on goodwill of $1.1 million.
- Adjusted EBITDA (“AEBITDA”) loss of $2.5 million for the first
quarter of 2022, compared to an AEBITDA loss of $2.4 million for
the first quarter of 2021. 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 loss.
Non-GAAP Financial Information
Adjusted EBITDA (“AEBITDA”) loss, a non-GAAP financial measure,
is defined as net loss before depreciation and amortization,
stock-based compensation and expense, impairment charges, gain on
extinguishment of debt, severance, income tax expense, and interest
and other (income) expense, net. AEBITDA loss is not intended to
replace operating loss, net 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 loss and other performance
measures prepared in accordance with GAAP, such as operating loss
or cash flow used in operating activities, and should not be
considered in isolation or as a substitute for GAAP measures, such
as net loss, operating loss or any other GAAP measure of liquidity
or financial performance. A GAAP to non-GAAP reconciliation of net
loss to AEBITDA loss is shown under “GAAP to Non-GAAP
Reconciliation” later in this release.
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
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) our strategic review process and the
timing and results thereof, (ii) the Company’s potential future
growth and financial performance, (iii) the success of its products
and services, and (iv) the redesign of office environments. 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, 2021 and in
other filings made by the Company with the SEC from time to time.
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.
OBLONG, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
($ in thousands)
March 31, 2022
December 31, 2021
(Unaudited)
ASSETS
Current assets:
Cash
$
6,525
$
8,939
Restricted cash
61
61
Accounts receivable, net
555
849
Inventory
1,718
1,821
Prepaid expenses and other current
assets
1,441
1,081
Total current assets
10,300
12,751
Property and equipment, net
122
159
Goodwill
6,229
7,367
Intangibles, net
6,982
7,562
Right-of-use assets, net
532
659
Other assets
64
109
Total assets
$
24,229
$
28,607
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
553
259
Accrued expenses and other current
liabilities
1,147
959
Current portion of deferred revenue
736
783
Current portion of operating lease
liabilities
395
492
Total current liabilities
2,831
2,493
Long-term liabilities:
Operating lease liabilities, net of
current portion
170
236
Deferred revenue, net of current
portion
302
381
Total long-term liabilities
472
617
Total liabilities
3,303
3,110
Commitments and contingencies
Stockholders’ equity:
Common stock, $.0001 par value;
150,000,000 shares authorized; 30,929,331 shares issued and
30,816,048 outstanding at March 31, 2022 and December 31, 2021
3
3
Treasury stock, 113,283 shares of common
stock at March 31, 2022 and December 31, 2021
(181
)
(181
)
Additional paid-in capital
227,549
227,581
Accumulated deficit
(206,445
)
(201,906
)
Total stockholder's equity
20,926
25,497
Total liabilities and stockholders’
equity
$
24,229
$
28,607
OBLONG, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
($ in thousands)
(Unaudited)
Three Months Ended
March 31,
2022
2021
Revenue
$
1,532
$
1,918
Cost of revenue (exclusive of depreciation
and amortization)
1,033
1,290
Gross profit
499
628
Operating expenses:
Research and development
1,004
692
Sales and marketing
562
527
General and administrative
1,690
2,067
Impairment charges
1,138
31
Depreciation and amortization
627
722
Total operating expenses
5,021
4,039
Loss from operations
(4,522
)
(3,411
)
Interest and other expense, net
6
22
Loss before income taxes
(4,528
)
(3,433
)
Income tax expense
11
—
Net loss
$
(4,539
)
$
(3,433
)
GAAP to Non-GAAP
Reconciliation:
Three Months Ended
March 31,
2022
2021
Net loss
$
(4,539
)
$
(3,433
)
Depreciation and amortization
627
722
Interest and other expense, net
6
22
Income tax expense
11
—
Impairment charges
1,138
31
Severance
294
—
Stock-based expense
(32
)
307
Adjusted EBITDA Loss
$
(2,495
)
$
(2,351
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220511006002/en/
Investor Relations Contact David Clark
investors@oblong.com (213) 683-8863 ext 2205
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