Attached files
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| 8-K - CURRENT REPORT - Support.com, Inc. | sprt_8k.htm |
Exhibit 99.1
Support.com Reports First Quarter 2021 Financial Results; Updates
on Merger Transaction Process
Los Angeles, CA – May 13, 2021 –
Support.com, Inc. (NASDAQ: SPRT), a leader in customer and technical
support solutions delivered by home-based employees, today
reported unaudited financial results for its first quarter ended
March 31, 2021.
As
previously announced on March 22, 2021, Support.com and Greenidge
Generation Holdings Inc. (“Greenidge”) entered into an
agreement providing for the acquisition of Support.com by Greenidge
in a merger transaction. In connection with the proposed merger, a
registration statement on Form S-4 has been filed by Greenidge with
the U.S. Securities and Exchange Commission at https://www.sec.gov/Archives/edgar/data/0001844971/000119312521149057/d166032ds4.htm.
Upon the effectiveness of the Form S-4, we intend to solicit the
adoption of the merger agreement by a majority of the holders of
the outstanding shares of our common stock entitled to vote at a
special meeting. The proposed merger is expected to close during
the third quarter of 2021.
Financial Summary
For the
first quarter of 2021, total revenue was $9.6 million, a
decrease of $2.3 million or 19 percent compared to revenues of
$11.9 million in the first quarter of 2020 and $0.9 million or
9 percent compared to revenues of $10.5 million in the
fourth quarter of 2020.
We
recorded net loss $2.0 million, or $0.10 per share, in the first
quarter of 2021, compared to net income of $0.3 million, or
$0.02 per share, in the first quarter of 2020 and breakeven net
income in the fourth quarter of 2020.
Key
changes in our net income (loss) included the
following:
●
Gross profit was
$3.5 million in the first quarter of 2021, compared to $4.2 million
in the first quarter of 2020 and $3.8 million in the fourth quarter
of 2020.
●
Gross profit margin
of 37% in the first quarter of 2021 increased compared to 35% in
the first quarter of 2020 and 36% in the fourth quarter of
2020.
●
Operating expenses
were $5.6 million in the first quarter of 2021, compared to $3.9
million in the first quarter of 2020 and $3.9 million in the fourth
quarter of 2020.
●
Included in the
first quarter 2021 operating costs are $1.5 million in merger
related expenses and $0.2 million in transition related costs as we
re-focus on building an enterprise-ready leader in
homesourcing™.
Balance Sheet Information
At
March 31, 2021, cash, cash equivalents and short-term
investments were $39.0 million, compared with $28.4 million at
March 31, 2020 and $30.0 million at December 31, 2020. As
previously announced, and in connection with the proposed merger
transaction with Greenidge, 210 Capital, LLC acquired approximately
3.9 million shares of Support.com in a private placement in March
2021.
Total
assets as of March 31, 2021 were $47.7 million and total
stockholders’ equity was $40.9 million.
Support.com
will not host a conference call discussing the Company’s
first quarter results. For more information, please visit the
Investor Relations section of the Support.com website at
Support.com/about-us/investor-relations/.
About Support.com
Support.com, Inc. (NASDAQ:
SPRT) is a leading provider of customer and technical support
solutions delivered by home-based employees. For more than twenty
years, the company has achieved stellar results for global
enterprise clients and top-tier businesses. Support.com's proven,
omnichannel solutions have been specifically designed and optimized
for the homesourcing™ environment, resulting in
industry-leading NPS scores and first call resolution rates. The
company efficiently meets changing client needs through its highly
scalable, global network of home-based employees and secure,
proprietary, cloud-based platforms. For more information, please
visit www.support.com.
Support.com, Inc. is an
Equal Opportunity Employer. For more information,
visit http://www.support.com/about-us/careers.
© 2021 Support.com, Inc. All rights reserved. Support.com and
the Support.com logo are trademarks or registered trademarks of
Support.com, Inc. in the United States and other countries. All
other marks are the property of their respective
owners.
Safe Harbor Statement
This
announcement may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to, all
statements relating to our plans to build an enterprise-ready
leader in homesourcing™. Such forward-looking statements are
based on current expectations and information that involve a number
of uncertainties and risks that may cause actual events or results
to differ materially from those indicated by such forward-looking
statements, including, among others, our ability to retain and grow
major programs, our ability to expand and diversify our customer
base, our ability to maintain and grow revenue, any acquisitions we
may make, including integrating acquired companies with our
existing businesses and our ability to achieve the benefits, growth
prospects and synergies expected by such acquisitions, our
ability to successfully develop new products and services, our
ability to manage our workforce, our ability to operate in markets
that are subject to extensive regulations, such as support for home
security systems, our ability to control expenses and achieve
desired margins, our ability to maintain or improve gross
margin, our dependence on a small number of customers and partners,
our ability to attract, train and retain talented employees,
potential intellectual property, class action or other litigation,
fluctuations in government laws and regulations, our ability to
utilize and realize the value of our net operating loss
carryforwards and how they could be substantially limited or
permanently impaired, given our current market capitalization and
cash position, our ability to execute the cost reduction program
involving the planned actions on the expected schedule, our ability
to achieve the cost savings expected in connection with the cost
reduction plan, the ultimate effect of any such cost reductions on
our financial results, any expenses or reputational damage
associated with resolving customer warranty and/or indemnification
claims; and our ability to manage the effects of the cost reduction
plan on our workforce and other operations. Many of the foregoing
risks and uncertainties are, and will be, exacerbated by the
COVID-19 pandemic and any worsening of the global business and
economic environment as a result. More information on these risks
and other potential factors that could affect the Company’s
business and financial results is included in the Company’s
filings with the SEC, including in the “Risk Factors”
and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of the
Company’s most recently filed periodic reports on Form 10-K
and Form 10-Q and subsequent filings. The Company assumes no
obligation to update any forward-looking statements or information,
which speak as of their respective dates.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In
connection with the transactions contemplated by that certain
Agreement and Plan of Merger dated March 19, 2021 by and between
Greenidge Generation Holdings Inc. (“Parent”), GGH
Merger Sub, Inc. (“Merger Sub”) and Support.com, Inc.
(the “Company”), the Company and Parent will file
relevant materials with the U.S. Securities and Exchange Commission
(“SEC”), and Parent has filed a registration statement
on Form S-4, which will include a proxy statement of the Company.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY AND IN
THEIR ENTIRETY THE REGISTRATION STATEMENT, PROXY
STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT
WILL BE FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY
WILL CONTAIN IMPORTANT INFORMATION. A definitive proxy
statement/prospectus will be mailed to stockholders of the Company
when it becomes available. Investors and security holders will be
able to obtain free copies of the registration statement, proxy
statement/prospectus (when available) and the other documents filed
with the SEC by the Company or Parent through the SEC’s
website at www.sec.gov.
PARTICIPANTS IN SOLICITATION
The
Company and its directors and executive officers and other members
of management and employees may be deemed to be participants in the
solicitation of proxies from stockholders of the Company in
connection with the proposed transaction. A list of the names
of such directors and executive officers, information regarding
their interests in the proposed merger and a description of their
direct and indirect interests, by security holdings or otherwise,
will be contained in the registration statement, proxy
statement/prospectus and other relevant materials to be filed with
the SEC when they become available.
Parent,
Merger Sub and their directors, executive officers, other members
of management and employees may also be deemed to be participants
in the solicitation of proxies from the shareholders of the Company
in connection with the proposed transaction. A list of the names of
such directors and executive officers, information regarding their
interests in the proposed merger and a description of their direct
and indirect interests, by security holdings or otherwise, will be
contained in the registration statement, proxy statement/prospectus
and other relevant materials to be filed with the SEC when they
become available.
NO OFFER OR SOLICITATION
This
communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S.
Securities Act of 1933, as amended.
Investor Contact
Jacob
Moelter
IR@support.com
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SUPPORT.COM, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(in thousands)
|
|
(unaudited)
|
|
|
March
31,
|
December
31,
|
|
|
2021
(1)
|
2020
(2)
|
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash, cash
equivalents and short-term investments
|
$39,021
|
$29,967
|
|
Accounts
receivable, net
|
6,312
|
6,975
|
|
Prepaid expenses
and other current assets
|
702
|
670
|
|
Total
current assets
|
46,035
|
37,612
|
|
Property and
equipment, net
|
1,105
|
1,115
|
|
Other
assets
|
511
|
539
|
|
|
|
|
|
Total
assets
|
$47,651
|
$39,266
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
and accrued compensation
|
$3,149
|
$2,101
|
|
Other accrued
liabilities
|
1,561
|
937
|
|
Short-term deferred
revenue
|
1,146
|
881
|
|
Total
current liabilities
|
5,856
|
3,919
|
|
Other long-term
liabilities
|
910
|
911
|
|
Total
liabilities
|
6,766
|
4,830
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
3
|
2
|
|
Additional
paid-in-capital
|
259,401
|
250,954
|
|
Treasury
stock
|
(5,297)
|
(5,297)
|
|
Accumulated other
comprehensive loss
|
(2,424)
|
(2,419)
|
|
Accumulated
deficit
|
(210,798)
|
(208,804)
|
|
Total
stockholders' equity
|
40,885
|
34,436
|
|
|
|
|
|
Total
liabilities and stockholders' equity
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$47,651
|
$39,266
|
|
Note 1: Amounts are subject to
completion of management’s customary closing and review
procedures.
|
|
Note 2: Derived from audited
consolidated financial statements for the year ended December 31,
2020.
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SUPPORT.COM, INC.
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GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
Three
Months Ended
|
||
|
|
March
31,
2021
(1)
|
December
31,
2020
|
March
31,
2020
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
Services
|
$9,138
|
$10,089
|
$11,511
|
|
Software and
other
|
493
|
454
|
438
|
|
Total
revenue
|
9,631
|
10,543
|
11,949
|
|
|
|
|
|
|
Cost
of revenue:
|
|
|
|
|
Cost of
services
|
6,005
|
6,695
|
7,685
|
|
Cost of software
and other
|
90
|
75
|
29
|
|
Total
cost of revenue
|
6,095
|
6,770
|
7,714
|
|
|
|
|
|
|
Gross
profit
|
3,536
|
3,773
|
4,235
|
|
Operating
expenses:
|
|
|
|
|
Engineering and
IT
|
924
|
794
|
1,040
|
|
Sales and
marketing
|
425
|
488
|
813
|
|
General and
administrative
|
4,206
|
2,586
|
2,053
|
|
Total
operating expenses
|
5,555
|
3,868
|
3,906
|
|
|
|
|
|
|
Income
(loss) from operations
|
(2,019)
|
(95)
|
329
|
|
|
|
|
|
|
Interest income and
other, net
|
42
|
150
|
84
|
|
|
|
|
|
|
Income
(loss) before income taxes
|
(1,977)
|
55
|
413
|
|
|
|
|
|
|
Income
tax provision
|
17
|
37
|
49
|
|
Net
income (loss)
|
$(1,994)
|
$18
|
$364
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) per share
|
|
|
|
|
Basic
|
$(0.10)
|
$0.00
|
$0.02
|
|
Diluted
|
$(0.10)
|
$0.00
|
$0.02
|
|
|
|
|
|
|
Shares
used in computing per share amounts
|
|
|
|
|
Basic
|
20,205
|
19,391
|
19,054
|
|
Diluted
|
20,205
|
19,732
|
19,233
|