Attached files
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| 8-K - 8-K - XTERA COMMUNICATIONS, INC. | xcom-8k_20160203.htm |
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FOR IMMEDIATE RELEASE |
|
Exhibit 99.1 |
Xtera Announces Fiscal First Quarter Financial Results
DALLAS, TEXAS, USA – (February 3, 2016) – Xtera Communications, Inc. (NASDAQ: XCOM), a provider of high-capacity optical transport solutions, today announced financial results for its fiscal first quarter ended December 31, 2015. Revenue for the first quarter of fiscal 2016 was $12.6 million, a decrease of 5.5% compared to $13.4 million for the fiscal first quarter of 2015.
“After completing our IPO in mid-November, we saw strong demand for our products and solutions in Q1,” reported Jon Hopper, Xtera’s President and Chief Executive Officer. “Our backlog increased considerably during the December quarter and we ended the quarter with a backlog of $80.5 million, up 85% over the prior quarter.”
The company's GAAP net loss for the fiscal first quarter of 2016 was $7.2 million, or $0.71 per basic and fully diluted share, compared to a GAAP net loss of $3.2 million, or $3.65 per basic and fully diluted share, for the first fiscal quarter of 2015. The company's non-GAAP net loss for the fiscal first quarter of 2016 was $6.9 million, or $0.68 per basic and fully diluted share, compared to a non-GAAP net loss of $3.0 million, or $3.49 per basic and fully diluted share, for the first fiscal quarter of 2015.
A reconciliation of our fiscal first quarter 2016 operating results from GAAP to non-GAAP is provided below:
Three Months Ended December 31, 2015
(Unaudited, in thousands, except share data)
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Stock Based |
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Amortization of |
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Acquisition-Related |
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Non-GAAP |
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Compensation |
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Intangible Assets |
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Costs |
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GAAP |
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|||||
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Revenue |
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$ |
12,630 |
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$ |
— |
|
|
$ |
— |
|
|
$ |
— |
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$ |
12,630 |
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Cost of revenue |
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12,949 |
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— |
|
|
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— |
|
|
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— |
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12,949 |
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Gross profit |
|
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(319 |
) |
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— |
|
|
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— |
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|
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— |
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|
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(319 |
) |
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Gross margin |
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-2.5 |
% |
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0.0 |
% |
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0.0 |
% |
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0.0 |
% |
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-2.5 |
% |
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Operating expenses |
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5,804 |
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52 |
|
|
|
270 |
|
|
|
— |
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|
6,126 |
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Operating loss |
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(6,123 |
) |
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(52 |
) |
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(270 |
) |
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— |
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(6,445 |
) |
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Interest and other income(expense), net |
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(768 |
) |
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— |
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— |
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— |
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(768 |
) |
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Provision for income taxes |
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1 |
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— |
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— |
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— |
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1 |
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Net loss |
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$ |
(6,892 |
) |
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$ |
(52 |
) |
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$ |
(270 |
) |
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$ |
— |
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$ |
(7,214 |
) |
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Weighted average shares used to compute net loss per common share: basic and diluted |
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10,183,075 |
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10,183,075 |
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10,183,075 |
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10,183,075 |
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10,183,075 |
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Net loss per common share: basic and diluted |
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$ |
(0.68 |
) |
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$ |
(0.01 |
) |
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$ |
(0.03 |
) |
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$ |
- |
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$ |
(0.71 |
) |
Conference Call
In conjunction with this announcement, Xtera will host a conference call to discuss its results at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, February 3, 2016. Interested parties can listen to a live webcast of the conference call by visiting the Investor Relations section of Xtera’s website at http://ir.xtera.com. Dial in information for the conference call is available by registering at http://dpregister.com/10078802. The conference call and webcast will include forward-looking information. A replay of the conference call will also be available on the Investor Relations section of Xtera’s website at http://ir.xtera.com following the completion of the call.
About Xtera Communications, Inc.
Xtera Communications, Inc. (NASDAQ: XCOM) is a leading provider of high-capacity, cost-effective optical transport solutions, supporting the high growth in global demand for bandwidth. Xtera sells solutions to telecommunications service providers, content service providers, enterprises and government entities worldwide. Xtera’s proprietary Wise RamanTM optical amplification technology leads to capacity and reach performance advantages over competitive products. Xtera’s solutions enable cost-effective capacity to meet customers’ bandwidth requirements of today and to support their increasing bandwidth demand fueled by the development of data centers and related cloud-based services.
For more information, visit www.xtera.com, contact info@xtera.com or connect via LinkedIn, Twitter, Facebook and YouTube.
Use of Non-GAAP Financial Information
The Company uses certain non-GAAP financial measures in this press release to supplement its consolidated financial statements, which are presented in accordance with GAAP. These non-GAAP measures include non-GAAP net income (loss) and non-GAAP basic and diluted income (loss) per share. These non-GAAP measures are provided to enhance the reader's understanding of the Company's operating performance as they primarily exclude certain non-cash charges for stock-based compensation and amortization of acquisition-related intangible assets, and non-recurring acquisition-related costs, which the Company believes are not indicative of its core operating results. Management believes that the non-GAAP measures used in this press release provide investors with important perspectives into the Company's ongoing business performance and management uses these non-GAAP measures to evaluate financial results and to establish operational goals. The presentation of these non-GAAP measures is not meant to be a substitute for results presented in accordance with GAAP, but rather should be evaluated in conjunction with those GAAP results. A reconciliation of the non-GAAP results to the most directly comparable GAAP results is provided in this press release. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.
2
XTERA COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
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Three Months Ended December |
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2015 |
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2014 |
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Revenue: |
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Products |
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$ |
10,842 |
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$ |
12,179 |
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Services |
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1,788 |
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1,186 |
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Total revenue |
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12,630 |
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13,365 |
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Cost of revenue: |
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Products |
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12,189 |
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9,224 |
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Services |
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760 |
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562 |
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Total cost of revenue |
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12,949 |
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9,786 |
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Gross profit |
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(319 |
) |
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3,579 |
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Operating expenses: |
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Sales and marketing |
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1,525 |
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1,193 |
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Research and development |
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2,764 |
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2,752 |
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General and administrative |
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1,837 |
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|
1,617 |
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Total operating expense |
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6,126 |
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|
5,562 |
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Operating loss |
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(6,445 |
) |
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|
(1,983 |
) |
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Other income (expense): |
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|
|
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Interest expense |
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(405 |
) |
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(661 |
) |
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Interest expense, related party |
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— |
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(343 |
) |
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Foreign exchange loss |
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(363 |
) |
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(242 |
) |
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Total other expense |
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(768 |
) |
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(1,246 |
) |
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Loss before income taxes |
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(7,213 |
) |
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(3,229 |
) |
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Income tax provision |
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1 |
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15 |
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Net loss |
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$ |
(7,214 |
) |
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$ |
(3,244 |
) |
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Preferred dividend |
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— |
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(3,374 |
) |
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Net loss available to common stockholders |
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$ |
(7,214 |
) |
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$ |
(6,618 |
) |
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Loss per common share – basic and diluted |
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$ |
(0.71 |
) |
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$ |
(3.65 |
) |
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Weighted average shares – basic and diluted |
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10,183,075 |
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1,814,630 |
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3
XTERA COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
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As of December 31, |
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As of September 30, |
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2015 |
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2015 |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
6,714 |
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$ |
1,753 |
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Restricted cash |
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277 |
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1,120 |
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Accounts receivable, net |
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5,550 |
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6,580 |
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Unbilled receivables |
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8,725 |
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6,119 |
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Inventories, net |
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10,938 |
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10,540 |
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Deferred cost |
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7,149 |
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|
780 |
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Prepaid expenses and other current asset |
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843 |
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1,185 |
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Total current assets |
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40,196 |
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28,077 |
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Property and equipment, net |
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3,270 |
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3,399 |
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Restricted cash |
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3,526 |
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|
152 |
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Intangible assets, net |
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7,284 |
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7,554 |
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Other assets |
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90 |
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|
90 |
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Total assets |
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$ |
54,366 |
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$ |
39,272 |
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Liabilities and Stockholders’ Equity |
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Current liabilities |
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Accounts payable |
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$ |
12,318 |
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$ |
13,589 |
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Accrued compensation and employee benefits |
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1,046 |
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|
760 |
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Deferred revenue |
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1,172 |
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1,058 |
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Warranty reserve |
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1,936 |
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1,735 |
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Current portion of long-term debt |
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11,301 |
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10,707 |
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Other accrued liabilities |
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7,293 |
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4,966 |
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Total current liabilities |
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35,066 |
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32,815 |
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Long-term debt less current portion |
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— |
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2,133 |
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Other long-term liabilities |
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|
647 |
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|
631 |
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Total liabilities |
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35,713 |
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35,579 |
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Commitments and contingencies |
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Stockholders’ equity (deficit) |
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Series A-3 convertible preferred stock, $0.001 par value, Authorized shares: 0 and 40,500,000 as of December 31, 2015 and September 30, 2015; Issued and outstanding shares: 0 and 39,663,482 as of December 31, 2015 and September 30, 2015 |
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— |
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40 |
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Series B-3 convertible preferred stock, $0.001 par value, Authorized shares: 0 and 39,500,000 as of December 31, 2015 and September 30, 2015; Issued and outstanding shares: 0 and 38,589,303 as of December 31, 2015 and September 30, 2015 |
|
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— |
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39 |
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Series C-3 convertible preferred stock, $0.001 par value, Authorized shares: 0 and 25,000,000 as of December 31, 2015 and September 30, 2015; Issued and outstanding shares: 0 and 19,081,778 as of December 31, 2015 and September 30, 2015 |
|
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— |
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19 |
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Series D-3 convertible preferred stock, $0.001 par value, Authorized shares: 0 and 60,000,000 as of December 31, 2015 and September 30, 2015; Issued and outstanding shares: 0 and 52,509,212 as of December 31, 2015 and September 30, 2015 |
|
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— |
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53 |
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Series E-3 convertible preferred stock, $0.001 par value, Authorized shares: 0 and 120,000,000 as of December 31, 2015 and September 30, 2015; Issued and outstanding shares: 0 and 114,679,639 as of December 31, 2015 and September 30, 2015 |
|
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— |
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|
115 |
|
|
Preferred Stock, $0.001 par value, 5,000,000 shares authorized, no shares issued and outstanding |
|
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— |
|
|
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— |
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Common Stock, $0.001 par value, Authorized shares: 100,000,000 and 350,000,000 as of December 31, 2015 and September 30, 2015; Issued and outstanding shares: 17,114,364 and 1,936,056 as of December 31, 2015 and September 30, 2015 |
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17 |
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2 |
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Additional paid-in-capital |
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410,119 |
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|
388,047 |
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Accumulated deficit |
|
|
(391,899 |
) |
|
|
(384,685 |
) |
|
Accumulated other comprehensive income, net |
|
|
416 |
|
|
|
63 |
|
|
Total stockholders’ equity (deficit) |
|
|
18,653 |
|
|
|
3,693 |
|
|
Total liabilities and stockholders’ equity |
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$ |
54,366 |
|
|
$ |
39,272 |
|
4
XTERA COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
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Three Months Ended December 31, |
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|||||
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|
2015 |
|
|
2014 |
|
||
|
Operating Activities: |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(7,214 |
) |
|
$ |
(3,244 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
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|
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Depreciation and amortization |
|
|
715 |
|
|
|
658 |
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Provision for inventory obsolescence |
|
|
1,134 |
|
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|
602 |
|
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Provision for loss on contracts |
|
|
1,039 |
|
|
|
— |
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Warranty provision |
|
|
230 |
|
|
|
215 |
|
|
Share-based compensation |
|
|
52 |
|
|
|
9 |
|
|
Interest expense |
|
|
66 |
|
|
|
31 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
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Accounts receivable |
|
|
1,024 |
|
|
|
(5,480 |
) |
|
Unbilled accounts receivable |
|
|
(2,606 |
) |
|
|
(1,454 |
) |
|
Inventories |
|
|
(1,533 |
) |
|
|
(2,386 |
) |
|
Deferred costs |
|
|
(6,369 |
) |
|
|
(2,548 |
) |
|
Prepaid expenses and other assets |
|
|
341 |
|
|
|
126 |
|
|
Accounts payable |
|
|
(1,266 |
) |
|
|
3,626 |
|
|
Other accrued liabilities |
|
|
1,489 |
|
|
|
(161 |
) |
|
Deferred revenue |
|
|
118 |
|
|
|
5,699 |
|
|
Net cash used in operating activities |
|
|
(12,780 |
) |
|
|
(4,307 |
) |
|
Investing Activities: |
|
|
|
|
|
|
|
|
|
Changes in restricted cash |
|
|
(2,530 |
) |
|
|
(115 |
) |
|
Purchases of property and equipment |
|
|
(326 |
) |
|
|
(185 |
) |
|
Net cash used in investing activities |
|
|
(2,856 |
) |
|
|
(300 |
) |
|
Financing Activities: |
|
|
|
|
|
|
|
|
|
Repayment of debt |
|
|
(11,237 |
) |
|
|
(4,612 |
) |
|
Proceeds from debt |
|
|
9,633 |
|
|
|
8,909 |
|
|
Payment of capital lease obligations |
|
|
(22 |
) |
|
|
— |
|
|
Proceeds from issuance of common stock |
|
|
21,764 |
|
|
|
— |
|
|
Net cash provided by financing activities |
|
|
20,138 |
|
|
|
4,297 |
|
|
Effect of exchange rate changes on cash |
|
|
459 |
|
|
|
260 |
|
|
Net increase(decrease) in cash and cash equivalents |
|
|
4,961 |
|
|
|
(50 |
) |
|
Cash and cash equivalents at beginning of period |
|
|
1,753 |
|
|
|
1,920 |
|
|
Cash and cash equivalents at end of period |
|
$ |
6,714 |
|
|
$ |
1,870 |
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
312 |
|
|
$ |
274 |
|
|
Cash paid for income taxes |
|
$ |
1 |
|
|
$ |
15 |
|
5
David H. Allen | +1 408 427 4463 | IR@xtera.com
Marketing & Sales Contact:
Bertrand Clesca | +33 1 45 48 15 67 | marketing@xtera.com
###
6