Oblong, Inc. (NYSE American: OBLG) ("Oblong" or the "Company"),
the award-winning maker of multi-stream collaboration solutions,
today announced financial results for the first quarter ended March
31, 2020.
Financial Highlights
- Revenue of $5.3 million for the first quarter of 2020, compared
to $2.6 million for the first quarter of 2019 and $5.4 million for
the fourth quarter of 2019.
- Revenue for the first quarter of 2020 and fourth quarter of
2019 include $3.3 million and $3.2 million of revenue,
respectively, from the Company’s wholly-owned subsidiary Oblong
Industries, Inc. On October 1, 2019, the Company closed the merger
of Oblong, Inc. (formerly named Glowpoint, Inc.) and Oblong
Industries, Inc. (the “Merger”). The Company’s consolidated
financial results for the three months ended March 31, 2019 do not
reflect Oblong Industries’ financial results since the Merger
closed on October 1, 2019.
- Gross profit margin of 55% for the first quarter of 2020,
compared to 35% for the first quarter of 2019 and 53% for the
fourth quarter of 2019.
- Quarterly general and administrative, research and development
and sales and marketing expenses were reduced by $1.1 million (or
19%) in the first quarter of 2020 compared to the fourth quarter of
2019 (or a total of $5.7 million for the fourth quarter of 2019 as
compared to a total of $4.6 million for the first quarter of 2020).
Management expects to further reduce the Company’s operating
expenses in the future as compared to its annualized operating
expenses for the three months ended March 31, 2020.
- Net loss of $3.1 million for the first quarter of 2020,
compared to a net loss of $0.6 million for the first quarter of
2019 and a net loss of $5.6 million for the fourth quarter of
2019.
- Adjusted EBITDA (“AEBITDA”) loss of $1.5 million for the first
quarter of 2020, compared to an AEBITDA loss of $0.1 million for
the first quarter of 2019 and an AEBITDA loss of $2.3 million for
the fourth quarter of 2019. 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” later in this release for a reconciliation
of this non-GAAP financial measure to net loss.
“Following the merger in late 2019, we’ve taken significant
steps to better align resources and product strategy with
ever-increasing demand for distributed interactions and
collaboration,” said Peter Holst, Chairman & CEO of Oblong.
“During the second half of 2020, our focus will be on designing and
deploying new services that exponentially expand our addressable
market while also investing deeply in key distribution partners who
share a common vision of the distributed workforce. Our sales
pipeline continues to expand, both in terms of quality and
quantity, and we believe there is a significant backlog of interest
in our Mezzanine solution that we will have the opportunity to
pursue as the stay-at-home mandates expire,” added Holst. “In fact,
our aggregate qualified pipeline has increased approximately 50%
since April 15th, giving us increasing optimism for the
future.”
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, impairment charges, severance, merger
expenses and interest and other 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 provided by (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’s innovative and patented technologies 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. Learn more at
www.oblong.com.
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) the availability of sufficient capital
resources to fund the Company’s operations for the next 12 months
following the date of this release, including through cost
reduction initiatives or additional financing sources, (ii) the
Company’s potential future growth and financial performance, and
(iii) 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 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 months ended
March 31, 2020. 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, except par
value, stated value, and shares)
March 31, 2020
December 31, 2019
(Unaudited)
ASSETS
Current assets:
Cash
$
2,059
$
4,602
Inventory
1,439
1,816
Accounts receivable, net
4,209
2,543
Prepaid expenses and other current
assets
1,098
965
Total current assets
8,805
9,926
Property and equipment, net
1,091
1,316
Goodwill
7,366
7,907
Intangibles, net
11,961
12,572
Operating lease - right of use asset,
net
2,602
3,117
Other assets
128
71
Total assets
$
31,953
$
34,909
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Current portion of long-term debt, net of
discount
$
3,550
$
2,664
Accounts payable
921
647
Accrued expenses and other current
liabilities
1,262
1,752
Deferred revenue
2,673
1,901
Current portion of operating lease
liabilities
1,294
1,294
Total current liabilities
9,700
8,258
Long-term liabilities:
Long-term debt, net of current portion and
net of discount
1,991
2,843
Operating lease liabilities, net of
current portion
1,487
2,020
Other long-term liabilities
—
3
Total long-term liabilities
3,478
4,866
Total liabilities
13,178
13,124
Total stockholders’ equity
18,775
21,785
Total liabilities and stockholders’
equity
$
31,953
$
34,909
OBLONG, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data) (Unaudited)
Three Months Ended
March 31,
2020
2019
Revenue
$
5,328
$
2,594
Cost of revenue (exclusive of depreciation
and amortization)
2,374
1,675
Gross profit
2,954
919
Operating expenses:
Research and development
1,327
213
Sales and marketing
1,220
33
General and administrative
2,028
1,112
Impairment charges
541
—
Depreciation and amortization
815
159
Total operating expenses
5,931
1,517
Loss from operations
(2,977
)
(598
)
Interest and other expense, net
(154
)
—
Foreign exchange gain
2
—
Interest and other expense, net
(152
)
—
Net loss
(3,129
)
(598
)
Preferred stock dividends
4
15
Net loss attributable to common
stockholders
$
(3,133
)
$
(613
)
Net loss attributable to common
stockholders per share:
Basic and diluted net loss per share
$
(0.60
)
$
(0.12
)
Weighted-average number of shares of
common stock:
Basic and diluted
5,204
5,104
GAAP to Non-GAAP
Reconciliation:
Net loss
$ (3,129)
$ (598)
Depreciation and amortization
815
159
Interest and other expense, net
152
—
Impairment charges
541
—
Merger expenses
—
261
Severance
40
—
Stock-based compensation
32
29
Adjusted EBITDA loss
$ (1,549)
$ (149)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200630005307/en/
Investor Relations Contact: Brett Maas Hayden IR, LLC
brett@haydenir.com 646-536-7331
Oblong (AMEX:OBLG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Oblong (AMEX:OBLG)
Historical Stock Chart
From Apr 2023 to Apr 2024