Adesto Technologies Corporation (NASDAQ:IOTS), a leading provider
of application-specific, feature-rich, ultra-low power non-volatile
memory products, today announced financial results for the fourth
quarter and full year ended December 31, 2015.
Fourth Quarter and Recent
Highlights:
- Revenue increased 14.1% year-over-year and 6.1% sequentially to
$11.8 million;
- Gross margin was 45.6%, compared to 40.5% in the fourth quarter
of 2014 and 45.2% in the third quarter of 2015;
- Adjusted EBITDA for the fourth quarter of 2015 was a loss of
$494,000, compared to a loss of $442,000 in the fourth quarter of
2014 and a loss of $436,000 in the third quarter of 2015; and
- Launched a new line of extended voltage range Fusion XV serial
Flash memory products.
Full Year 2015 Highlights:
- Revenue increased 4.3% to $43.3 million;
- Gross margin increased to 42.7% from 38.4% in 2014;
- Secured 135 new design wins compared to 65 in 2014 and 32 in
2013; and
- Completed an initial public offering in October 2015, raising
approximately $22.1 million in net proceeds.
“We ended the year strong with fourth quarter
revenue growing 14.1% over the prior year period and gross margin
above 45%,” said Narbeh Derhacobian, Adesto’s president and CEO.
“Revenue growth was driven by an increasing number of design wins
ramping into production across our industrial, consumer and
communications markets. We also more than doubled design wins
year-over-year to 135 in 2015, creating a strong foundation for
continued growth in 2016 and beyond.
“Key to our revenue and design win success are
the differentiated features of our non-volatile memory solutions,
including ultra-low power, high speed, reduced energy consumption
and integrated intelligence. We believe these features are also
particularly critical for the next-generation memory requirements
of IoT and wearable applications.
“Also throughout the year, we made significant
progress on our product roadmap in order to increase our
addressable market opportunities. This includes the expansion of
product densities, integration of enhanced feature sets and smaller
form factors for targeted applications, combined with further
traction for our CBRAM devices, the first commercially available
resistive RAM technology.
“In summary, I believe our strong design win
momentum, expanding product offerings and increasing market
penetration have positioned us well for continued growth in the
coming year.”
Fourth Quarter 2015 Results
Revenue in the quarter ended December 31, 2015 was $11.8 million,
an increase of 14.1% from $10.4 million in the fourth quarter of
2014 and an increase of 6.1% from $11.1 million in the third
quarter of 2015.
Gross margin in the fourth quarter of 2015 was
45.6%, compared to 40.5% in the fourth quarter of 2014 and 45.2% in
the third quarter of 2015. The year-over-year increase in gross
margin was due primarily to favorable product mix and the benefits
from product cost improvements.
GAAP net loss in the fourth quarter of 2015 was
$3.3 million, or $0.32 per share, compared to GAAP net loss of $1.4
million, or $2.50 per share, in the prior year quarter and GAAP net
loss of $1.1 million, or $1.90 per share, in the prior quarter.
Adjusted EBITDA for the fourth quarter was a
loss of $494,000, compared to a loss of $442,000 in the fourth
quarter of 2014 and a loss of $436,000 in the third quarter of
2015.
On a non-GAAP basis, net loss in the fourth
quarter of 2015 was $0.9 million, or $0.07 per share, compared to a
net loss of $1.2 million, or $0.12 per share, in the fourth quarter
of 2014 and a net loss of $1.1 million, or $0.12 per share, in the
third quarter of 2015.
A reconciliation of our GAAP results to non-GAAP
results is provided in the financial statement tables following the
text of this press release.
Cash and cash equivalents totaled $23.1 million
as of December 31, 2015, compared to $6.0 million as of December
31, 2014.
Business OutlookFor the first
quarter of 2016, the Company expects revenue to range between $11.8
million and $12.0 million. Gross margin is expected to be between
43% and 45%, and operating expenses are expected to range between
$8.0 million and $8.3 million. For the full year, the Company
expects revenue growth in excess of 30% based on its current design
win pipeline and customer activity.
Conference Call
InformationAdesto will host a conference call today at
7:00 a.m. Pacific Time to discuss its financial results. Investors
and analysts may join the call by dialing 1-855-715-1006 and
providing confirmation code 21651640. International callers may
join the teleconference by dialing +1-440-996-5684 using the same
confirmation code. The call will also be available as a live and
archived webcast in the Investor Relations section of the Company’s
website at http://www.adestotech.com.
A telephone replay of the conference call will
be available approximately two hours after the conference call
until Monday, February 15, 2016 at midnight Pacific Time. The
replay dial-in number is 1-855-859-2056. International callers
should dial +1-404-537-3406. The pass code is 21651640.
Non-GAAP Financial Information
To supplement our financial results presented in accordance with
Generally Accepted Accounting Principles (GAAP), this press release
and the accompanying tables and the related earnings conference
call contain certain non-GAAP financial measures, including
adjusted EBITDA, non-GAAP net loss, non-GAAP net loss per share and
non-GAAP weighted average shares outstanding. We believe these
non-GAAP financial measures are useful in evaluating our past
financial performance and future results. Our non-GAAP financial
measures should not be considered in isolation or as a substitute
for comparable GAAP measures and should be read in conjunction with
our consolidated financial statements prepared in accordance with
GAAP. Our management regularly uses our supplemental non-GAAP
financial measures internally to help us evaluate growth trends,
establish budgets, measure the effectiveness of our business
strategies and assess operational efficiencies. These
non-GAAP financial measures are not based on any standardized
methodology prescribed by GAAP and are not necessarily comparable
to similar measures presented by other companies. Our
non-GAAP financial measures include adjustments based on the
following items:
- Stock-based compensation expenses: We have excluded the effect
of stock-based compensation expenses from our non-GAAP financial
measures. Although stock-based compensation is an important part of
our employees’ compensation affecting their performance, we
continue to evaluate our business performance excluding stock-based
compensation expenses. Stock-based compensation expenses will recur
in future periods.
- Amortization of acquisition-related intangible assets: We have
excluded the effect of amortization of acquisition-related
intangible assets from our non-GAAP financial measures.
Amortization of acquisition-related intangible assets is a non-cash
expense, and it is not part of our core operations. Investors
should note that the use of acquisition-related intangible assets
contributed to revenues earned during the periods presented and
will contribute to future period revenues as well.
- Revaluation of preferred stock warrants: We have excluded the
effect of the revaluation of preferred stock warrants from our
non-GAAP financial measures. Revaluation of our preferred stock
warrants is a non-cash expense and we evaluate our financial
performance excluding the impact of any revaluation of preferred
stock warrants. Upon the completion of our initial public offering
in October 2015, all preferred stock warrants converted to common
stock warrants, as a result there will be no preferred stock
revaluation income or expense in future periods.
Our non-GAAP Financial Measures are described as
follows:
- Non-GAAP net loss and net loss per share. Non-GAAP net loss is
net loss as reported on our consolidated statements of operations,
excluding the impact of stock-based compensation, amortization of
acquisition-related intangible assets and the revaluation of
preferred stock warrants. Non-GAAP net loss per share is non-GAAP
net loss divided by non-GAAP diluted weighted average shares
outstanding. Non-GAAP diluted weighted average shares outstanding
was computed to give effect to the conversion of all outstanding
convertible preferred stock which occurred in connection with our
initial public offering in October 2015, as if conversion had
occurred at the beginning of the period.
- Adjusted EBITDA is net loss as reported on our consolidated
statements of operations, excluding the impact of the same items
excluded from the calculation of non-GAAP net loss as well as
interest expense, depreciation and amortization, and our provision
for income taxes.
For reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures,
please see the section of the accompanying tables titled,
“Reconciliation of GAAP to Non-GAAP Financial Information.”
About Adesto TechnologiesAdesto is a leading
provider of application-specific, feature-rich, ultra-low power
non-volatile memory products. The company has designed and built a
portfolio of innovative products, including Fusion Serial Flash,
DataFlash® and Conductive Bridging RAM (CBRAM®). CBRAM® is a
breakthrough technology platform that enables 100 times less energy
consumption than today’s memory technologies without sacrificing
speed and performance. Founded in 2007 in Sunnyvale, CA, Adesto
holds more than 100 patents with dozens more in process and is
working with visionary companies across various industries to
deploy its technology to the market. For more information, please
visit http://www.adestotech.com.
Forward looking StatementsThe
quotes of our Chief Executive Officer in this release regarding our
prospects for growth, as well as all statements under “Business
Outlook” are forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements involve risks and uncertainties that
could cause our actual results to differ materially, including, but
not limited to: our ability to predict the timing of design wins
entering production and the potential future revenue associated
with our design wins market adoption of our CBRAM-based products;
our limited operating history; our rate of growth; our ability to
predict customer demand for our existing and future products and to
secure adequate manufacturing capacity; our ability to manage our
growth; our ability to hire, retain and motivate employees; the
effects of competition, including price competition; technological,
regulatory and legal developments; and developments in the economy
and financial markets.
For a detailed discussion of these and other
risk factors, please refer to our filings with the Securities and
Exchange Commission, including the final prospectus related to our
initial public offering, which are available on our investor
relations Web site (ir.adestotech.com) and on the SEC’s Web site
(www.sec.gov).
All information provided in this release and in
the attachments is as of February 11, 2016, and stockholders of
Adesto are cautioned not to place undue reliance on our
forward-looking statements, which speak only as of the date such
statements are made. Adesto does not undertake any obligation to
publicly update any forward-looking statements to reflect events,
circumstances or new information after this February 11, 2016 press
release, or to reflect the occurrence of unanticipated events.
|
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|
|
|
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|
ADESTO TECHNOLOGIES
CORPORATION |
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2015 |
|
|
2014 |
|
Assets |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
|
23,089 |
|
|
|
$ |
|
5,972 |
|
|
Accounts receivable, net |
|
|
|
6,536 |
|
|
|
|
|
1,994 |
|
|
Inventories |
|
|
|
7,368 |
|
|
|
|
|
7,453 |
|
|
Prepaid expenses |
|
|
|
1,155 |
|
|
|
|
|
239 |
|
|
Deferred tax asset, current |
|
|
|
- |
|
|
|
|
|
291 |
|
|
Other current assets |
|
|
|
1,186 |
|
|
|
|
|
1,095 |
|
|
Total current assets |
|
|
|
39,334 |
|
|
|
|
|
17,044 |
|
|
Property and equipment,
net |
|
|
|
909 |
|
|
|
|
|
1,725 |
|
|
Deferred tax assets,
non-current |
|
|
|
- |
|
|
|
|
|
1,861 |
|
|
Intangible assets,
net |
|
|
|
9,559 |
|
|
|
|
|
10,795 |
|
|
Other non-current
assets |
|
|
|
114 |
|
|
|
|
|
- |
|
|
Goodwill |
|
|
|
22 |
|
|
|
|
|
22 |
|
|
Total assets |
|
$ |
|
49,938 |
|
|
|
$ |
|
31,447 |
|
|
Liabilities,
Convertible Preferred Stock and Stockholders' Equity
(Deficit) |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Revolving line of credit |
|
$ |
|
- |
|
|
|
$ |
|
4,273 |
|
|
Accounts payable |
|
|
|
9,680 |
|
|
|
|
|
7,814 |
|
|
Income taxes payable |
|
|
|
52 |
|
|
|
|
|
134 |
|
|
Accrued compensation and
benefits |
|
|
|
893 |
|
|
|
|
|
877 |
|
|
Accrued expenses and other current
liabilities |
|
|
|
1,413 |
|
|
|
|
|
1,334 |
|
|
Deferred tax liability,
current |
|
|
|
- |
|
|
|
|
|
726 |
|
|
Term loan |
|
|
|
5,606 |
|
|
|
|
|
6,476 |
|
|
Total current liabilities |
|
|
|
17,644 |
|
|
|
|
|
21,634 |
|
|
Preferred stock warrant
liability |
|
|
|
- |
|
|
|
|
|
122 |
|
|
Term loan |
|
|
|
7,814 |
|
|
|
|
|
- |
|
|
Deferred tax liability,
non-current |
|
|
|
1 |
|
|
|
|
|
1,453 |
|
|
Other liabilities,
non-current |
|
|
|
- |
|
|
|
|
|
23 |
|
|
Total liabilities |
|
|
|
25,459 |
|
|
|
|
|
23,232 |
|
|
|
|
|
|
|
|
|
|
|
Convertible preferred
stock |
|
|
|
- |
|
|
|
|
|
78,467 |
|
|
Stockholders' equity
(deficit) |
|
|
|
|
|
|
|
|
Common stock |
|
|
|
2 |
|
|
|
|
|
- |
|
|
Additional paid-in capital |
|
|
|
107,167 |
|
|
|
|
|
3,912 |
|
|
Accumulated other comprehensive
income |
|
|
|
(146 |
) |
|
|
|
|
(3 |
) |
|
Accumulated deficit |
|
|
|
(82,544 |
) |
|
|
|
|
(74,161 |
) |
|
Total stockholders'
equity (deficit) |
|
|
|
24,479 |
|
|
|
|
|
(70,252 |
) |
|
Total liabilities,
convertible preferred stock and stockholders' equity (deficit) |
|
$ |
|
49,938 |
|
|
|
$ |
|
31,447 |
|
|
ADESTO TECHNOLOGIES
CORPORATION |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(in thousands, except for share and per share
amounts) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended December
31, |
|
|
|
|
December 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2015 |
|
2015 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
$ |
|
11,826 |
|
|
|
$ |
|
10,369 |
|
|
|
$ |
|
11,143 |
|
|
$ |
|
43,259 |
|
|
$ |
|
41,465 |
|
|
Cost of revenue |
|
|
|
|
6,429 |
|
|
|
|
|
6,165 |
|
|
|
|
|
6,110 |
|
|
|
|
24,775 |
|
|
|
|
25,532 |
|
|
Gross profit |
|
|
|
|
5,397 |
|
|
|
|
|
4,204 |
|
|
|
|
|
5,033 |
|
|
|
|
18,484 |
|
|
|
|
15,933 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
|
|
3,482 |
|
|
|
|
|
3,035 |
|
|
|
|
|
3,217 |
|
|
|
|
12,795 |
|
|
|
|
14,410 |
|
|
Sales and marketing |
|
|
|
|
2,156 |
|
|
|
|
|
1,843 |
|
|
|
|
|
2,126 |
|
|
|
|
8,345 |
|
|
|
|
7,211 |
|
|
General and administrative |
|
|
|
|
1,389 |
|
|
|
|
|
547 |
|
|
|
|
|
919 |
|
|
|
|
3,978 |
|
|
|
|
2,356 |
|
|
Total operating expenses |
|
|
|
|
7,027 |
|
|
|
|
|
5,425 |
|
|
|
|
|
6,262 |
|
|
|
|
25,118 |
|
|
|
|
23,977 |
|
|
Loss from operations |
|
|
|
|
(1,630 |
) |
|
|
|
|
(1,221 |
) |
|
|
|
|
(1,229 |
) |
|
|
|
(6,634 |
) |
|
|
|
(8,044 |
) |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
|
(293 |
) |
|
|
|
|
(253 |
) |
|
|
|
|
(336 |
) |
|
|
|
(1,115 |
) |
|
|
|
(864 |
) |
|
Other income (expense), net |
|
|
|
|
(1,478 |
) |
|
|
|
|
109 |
|
|
|
|
|
494 |
|
|
|
|
(695 |
) |
|
|
|
114 |
|
|
Total other income (expense),
net |
|
|
|
|
(1,771 |
) |
|
|
|
|
(144 |
) |
|
|
|
|
158 |
|
|
|
|
(1,810 |
) |
|
|
|
(750 |
) |
|
Loss before provision for
(benefit from) income taxes |
|
|
|
|
(3,401 |
) |
|
|
|
|
(1,365 |
) |
|
|
|
|
(1,071 |
) |
|
|
|
(8,444 |
) |
|
|
|
(8,794 |
) |
|
Provision for (benefit
from) income taxes |
|
|
|
|
(137 |
) |
|
|
|
|
15 |
|
|
|
|
|
5 |
|
|
|
|
(61 |
) |
|
|
|
140 |
|
|
Net loss attributable to
common stockholders |
|
|
$ |
|
(3,264 |
) |
|
|
$ |
|
(1,380 |
) |
|
|
$ |
|
(1,076 |
) |
|
$ |
|
(8,383 |
) |
|
$ |
|
(8,934 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share
attributable to common stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
$ |
|
(0.32 |
) |
|
|
$ |
|
(2.50 |
) |
|
|
$ |
|
(1.90 |
) |
|
$ |
|
(2.79 |
) |
|
$ |
|
(16.48 |
) |
|
Weighted average number of
shares used in computing net loss per share attributable to common
stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
|
|
10,265,617 |
|
|
|
|
|
551,031 |
|
|
|
|
|
564,896 |
|
|
|
|
3,007,929 |
|
|
|
|
542,248 |
|
|
ADESTO TECHNOLOGIES
CORPORATION |
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
INFORMATION |
|
|
(in thousands, except for share and per share
amounts) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year Ended December 31, |
|
|
|
|
December 31, 2015 |
|
|
|
December 31, 2014 |
|
|
September 30, 2015 |
|
|
|
2015 |
|
|
|
|
|
2014 |
|
|
|
Reconciliation from GAAP net loss to adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss: |
|
$ |
|
(3,264 |
) |
|
|
$ |
|
(1,380 |
) |
|
$ |
|
(1,076 |
) |
|
$ |
|
(8,383 |
) |
|
|
$ |
|
(8,934 |
) |
|
|
Stock-based compensation
expense |
|
|
|
590 |
|
|
|
|
|
42 |
|
|
|
|
85 |
|
|
|
|
787 |
|
|
|
|
|
246 |
|
|
|
Revaluation of preferred stock
warrants |
|
|
|
1,428 |
|
|
|
|
|
(168 |
) |
|
|
|
(441 |
) |
|
|
|
906 |
|
|
|
|
|
(206 |
) |
|
|
Amortization of acquisition-related
intangible assets |
|
|
|
309 |
|
|
|
|
|
309 |
|
|
|
|
309 |
|
|
|
|
1,236 |
|
|
|
|
|
1,236 |
|
|
|
Non-GAAP net loss |
|
|
|
(937 |
) |
|
|
|
|
(1,197 |
) |
|
|
|
(1,123 |
) |
|
|
|
(5,454 |
) |
|
|
|
|
(7,658 |
) |
|
|
Interest expense |
|
|
|
300 |
|
|
|
|
|
253 |
|
|
|
|
336 |
|
|
|
|
1,122 |
|
|
|
|
|
864 |
|
|
|
Provision for (benefit from) income
taxes |
|
|
|
(137 |
) |
|
|
|
|
15 |
|
|
|
|
5 |
|
|
|
|
(61 |
) |
|
|
|
|
140 |
|
|
|
Depreciation and amortization |
|
|
|
280 |
|
|
|
|
|
487 |
|
|
|
|
346 |
|
|
|
|
1,453 |
|
|
|
|
|
1,852 |
|
|
|
Adjusted EBITDA |
|
$ |
|
(494 |
) |
|
|
$ |
|
(442 |
) |
|
$ |
|
(436 |
) |
|
$ |
|
(2,940 |
) |
|
|
$ |
|
(4,802 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted net loss per
share |
|
$ |
|
(0.07 |
) |
|
|
$ |
|
(0.12 |
) |
|
$ |
|
(0.12 |
) |
|
$ |
|
(0.52 |
) |
|
|
$ |
|
(0.79 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of shares
used in computing non-GAAP net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in
calculating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net loss per
share |
|
|
|
10,265,617 |
|
|
|
|
|
551,031 |
|
|
|
|
564,896 |
|
|
|
|
3,007,929 |
|
|
|
|
|
542,248 |
|
|
|
Incremental shares upon conversion
of convertible preferred stock in connection with IPO |
|
|
|
2,972,198 |
|
|
|
|
|
9,114,739 |
|
|
|
|
9,114,739 |
|
|
|
|
7,566,482 |
|
|
|
|
|
9,114,739 |
|
|
|
Weighted-average shares used in
calculating non-GAAP diluted net loss per share |
|
|
|
13,237,815 |
|
|
|
|
|
9,665,770 |
|
|
|
|
9,679,635 |
|
|
|
|
10,574,411 |
|
|
|
|
|
9,656,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact:
David Viera
Director, Corporate Communications
P: 408-419-4844
E: david.viera@adestotech.com
Adesto Technologies Investor Relations:
Shelton Group
Matt Kreps, Managing Director
P: 214-272-0073
Leanne K. Sievers, Executive Vice President
P: 949-836-4276
E: sheltonir@sheltongroup.com
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