Conference Call To Be Held Today at
Fourth Quarter 2016 Financial Highlights:
- 2016 Q4 revenue of
$14.5 million - 2016 Q4 gross margin of 31%
- 2016 Q4 GAAP net loss of
$7.51 per share - 2016 Q4 Proforma Non-GAAP net loss1 of
$2.13 per share - 2016 Q4 Non-GAAP Adjusted EBITDA1 loss of
$2.8 million
Full Year Financial Highlights
- 2016 revenue of
$53.2 million - 2016 gross margin of 28%
- 2016 GAAP net loss of
$15.61 per share - 2016 Proforma Non-GAAP net loss1 of
$7.44 per share - 2016 Non-GAAP Adjusted EBITDA1 loss of
$9.8 million
“Sysorex is now known as
“In addition to adding revenues with long-term government contracts that we believe can help sustain and grow this segment, we are consolidating and cutting operational expenses and reducing office footprints and locations. We anticipate that taking these steps, will result in more efficient operations that coupled with focusing our efforts to grow the Inpixon Indoor Positioning Analytics business will address the softness in revenue that we saw in 2016 and get us on track in 2017. We also saw net losses in 2016 of which approximately
2016 Financial Results
Revenue: Total Revenues for the year ended
Gross Profit: Total gross profit for the year ended
Net Loss: GAAP net loss attributable to the stockholders for 2016 was
Non-GAAP net loss1: 2016 pro-forma non-GAAP net loss was
Non-GAAP adjusted EBITDA1: Total non-GAAP adjusted EBITDA for the year ended
1 A reconciliation of GAAP to non-GAAP financial measures is provided in the financial statement tables included in this press release. An explanation of these measures is also included under the heading “Non-GAAP Financial Measures.”
2016 Business Highlights and Recent Developments
- Sysorex Rebrands To Inpixon, Signifying Increased Focus On Indoor Positioning Analytics
- Inpixon Named To 2017 CRN MSP Elite 150 List
- Inpixon Appoints Soumya Das As Chief Marketing Officer
- Inpixon Launches 3-Part “Freethinkers Of The Retail World” Webinar Series
- Inpixon Announces Pricing Of
$2.0 Million Registered Direct Offering - Inpixon Federal Acquires Certain Assets of
Integrio Technologies Inc. - Inpixon Announces
~$1M Contract With Top Mall Operator
All results summarized in this press release (including the financial statement tables) should be considered preliminary, are qualified in their entirety by the financial statement tables included in this press release and are subject to change. Please refer to Inpixon’s Annual Report on Form 10-K for the year ended
Conference Call Information
Management will host a conference call on
To listen to the conference call, interested parties within the
A replay of the call will be available approximately one hour after the end of the call through
About
Safe Harbor Statement
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Act, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of
Non-GAAP Financial Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles in
Management provides Adjusted EBITDA and pro forma net loss per share measures so that investors will have the same financial information that management uses, which may assist investors in assessing Inpixon’s performance on a period-over-period basis. Adjusted EBITDA or pro forma net loss per share is not a measure of financial performance under GAAP, and should not be considered an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA and pro forma net loss per share have limitations as analytical tools and should not be considered either in isolation or as a substitute for analysis of Inpixon’s results as reported under GAAP.
INPIXON AND SUBSIDIARIES (f/k/a SYSOREX GLOBAL AND SUBSIDIARIES) CONSOLIDATED BALANCE SHEETS (In thousands, except number of shares and par value data) |
|||||||||
2016 |
2015 |
||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 1,821 | $ | 4,060 | |||||
Accounts receivable, net | 11,788 | 12,209 | |||||||
Notes and other receivables | 362 | 1,340 | |||||||
Inventory | 1,061 | 755 | |||||||
Prepaid licenses and maintenance contracts | 13,321 | 7,509 | |||||||
Assets held for sale | 23 | 772 | |||||||
Other current assets | 1,768 | 1,967 | |||||||
Total current assets | 30,144 | 28,612 | |||||||
Prepaid licenses and maintenance contracts, non-current | 5,169 | 6,586 | |||||||
Property and equipment, net | 1,385 | 1,392 | |||||||
Software development costs, net | 2,058 | 1,281 | |||||||
Intangible assets, net | 17,691 | 17,161 | |||||||
|
9,028 | 13,166 | |||||||
Other assets | 998 | 517 | |||||||
Total assets | $ | 66,473 | $ | 68,715 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 23,027 | $ | 9,320 | |||||
Accrued liabilities | 4,169 | 2,992 | |||||||
Deferred revenue | 15,043 | 9,095 | |||||||
Short-term debt, net | 6,887 | 9,417 | |||||||
Liabilities held for sale | 2,041 | 2,026 | |||||||
Total current liabilities | 51,167 | 32,850 | |||||||
Deferred revenue, non-current | 5,960 | 7,666 | |||||||
Long-term debt, net | 4,047 | 1,226 | |||||||
Other liabilities | 371 | 542 | |||||||
Acquisition liability – |
1,648 | – | |||||||
Acquisition liability – LightMiner | 567 | 3,475 | |||||||
Total liabilities | 63,760 | 45,759 | |||||||
Commitments and contingencies | |||||||||
Stockholders’ equity: | |||||||||
Preferred stock, |
— | — | |||||||
or outstanding | |||||||||
Convertible Series 1 Preferred Stock – | |||||||||
|
|||||||||
2,250 and 0 issued and outstanding at |
|||||||||
respectively. Liquidation preference of |
|||||||||
|
1,340 | — | |||||||
Common stock, |
33 | 25 | |||||||
2,171,886 and 1,687,324 issued and 2,155,964 and 1,671,402 outstanding | |||||||||
at |
|||||||||
Additional paid-in capital | 64,117 | 58,226 | |||||||
|
(695 | ) | (695 | ) | |||||
Due from |
(666 | ) | (666 | ) | |||||
Accumulated other comprehensive income (loss) | 52 | 31 | |||||||
Accumulated deficit | (59,473 | ) | (32,359 | ) | |||||
Stockholders’ equity attributable to |
4,708 | 24,562 | |||||||
Non-controlling interest | (1,995 | ) | (1,606 | ) | |||||
Total stockholders’ equity | 2,713 | 22,956 | |||||||
Total liabilities and stockholders’ equity | $ | 66,473 | $ | 68,715 | |||||
INPIXON AND SUBSIDIARIES (f/k/a SYSOREX GLOBAL AND SUBSIDIARIES) CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except per share data) |
|||||||||
For the Years Ended |
|||||||||
2016 |
2015 |
||||||||
Revenues | |||||||||
Products | $ | 37,510 | $ | 51,381 | |||||
Services | 15,657 | 15,576 | |||||||
Total Revenues | 53,167 | 66,957 | |||||||
Cost of Revenues | |||||||||
Products | 29,025 | 40,763 | |||||||
Services | 9,215 | 6,865 | |||||||
Total Cost of Revenues | 38,240 | 47,628 | |||||||
Gross Profit | 14,927 | 19,329 | |||||||
Operating expenses: | |||||||||
Research and development | 2,277 | 635 | |||||||
Sales and marketing | 8,500 | 11,531 | |||||||
General and administrative | 15,269 | 14,226 | |||||||
Acquisition related costs | 876 | 355 | |||||||
Impairment of goodwill | 7,400 | — | |||||||
Amortization of intangibles | 4,328 | 3,994 | |||||||
Total operating expenses | 38,650 | 30,741 | |||||||
Loss from operations | (23,723 | ) | (11,412 | ) | |||||
Other income (expense) | |||||||||
Interest expense | (1,743 | ) | (448 | ) | |||||
Other income (expense) | (266 | ) | 25 | ||||||
Change in fair value of derivative liability | 51 | — | |||||||
Gain (loss) on the settlement of obligation | — | (85 | ) | ||||||
Reserve for the recoverability of note receivable | (1,077 | ) | — | ||||||
Change in fair value of shares to be issued | 13 | 211 | |||||||
Total other income (expense) | (3,022 | ) | (297 | ) | |||||
Net loss from continuing operations | (26,745 | ) | (11,709 | ) | |||||
Net loss from discontinued operations, net of tax | (758 | ) | (20 | ) | |||||
Net loss | (27,503 | ) | (11,729 | ) | |||||
Net loss attributable to non-controlling interest | (389 | ) | (10 | ) | |||||
Net loss attributable to stockholders of |
$ | (27,114 | ) | $ | (11,719 | ) | |||
Comprehensive loss | |||||||||
Net Loss | (27,503 | ) | (11,729 | ) | |||||
Unrealized foreign exchange gain/(loss) from cumulative translation adjustments | 21 | 49 | |||||||
Comprehensive loss | $ | (27,482 | ) | $ | (11,680 | ) | |||
Loss from continuing operations attributable to common stockholders | $ | (15.40 | ) | $ | (8.29 | ) | |||
Loss from discontinued operations, net of tax | $ | (0.21 | ) | $ | (0.01 | ) | |||
Net loss per basic and diluted common share | $ | (15.61 | ) | $ | (8.30 | ) | |||
Weighted average common shares outstanding: | |||||||||
Basic and Diluted | 1,737,120 | 1,412,094 | |||||||
INPIXON AND SUBSIDIARIES (f/k/a SYSOREX GLOBAL AND SUBSIDIARIES) CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
|||||||||
For the Years Ended |
|||||||||
2016 |
2015 |
||||||||
Cash flows from operating activities: | |||||||||
Net loss | $ | (27,503 | ) | $ | (11,729 | ) | |||
Adjustment to reconcile net loss to net cash used in operating activities: | |||||||||
Depreciation and amortization | 1,333 | 653 | |||||||
Amortization of intangible assets | 4,328 | 3,994 | |||||||
Impairment of goodwill | 7,400 | — | |||||||
Stock based compensation | 1,377 | 1,424 | |||||||
Change in fair value of shares to be issued | (13 | ) | (211 | ) | |||||
Change in fair value of derivative liability | (51 | ) | — | ||||||
Amortization of deferred financing costs | — | 23 | |||||||
Amortization of debt discount | 491 | — | |||||||
Compensation expense, note receivable related party | — | 90 | |||||||
Provision for doubtful accounts | 93 | 1,032 | |||||||
Reserve for settlement of bond | 749 | — | |||||||
Reserve for note receivable | 1,077 | — | |||||||
Amortization of technology | 133 | — | |||||||
Other | 64 | 19 | |||||||
(Gain)/Loss on settlement of obligations | (1,541 | ) | 85 | ||||||
|
— | (695 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable and other receivables | 2,968 | (5,066 | ) | ||||||
Inventory | (305 | ) | (145 | ) | |||||
Other current assets | 67 | (510 | ) | ||||||
Prepaid licenses and maintenance contracts | (232 | ) | (744 | ) | |||||
Other assets | (711 | ) | 69 | ||||||
Accounts payable | 6,907 | 1,944 | |||||||
Accrued liabilities | 623 | 586 | |||||||
Deferred revenue | (10 | ) | 1,127 | ||||||
Other liabilities | (29 | ) | (147 | ) | |||||
Total Adjustments | 24,718 | 3,528 | |||||||
|
(2,785 | ) | (8,201 | ) | |||||
Cash Flows Used in Investing Activities: | |||||||||
Purchase of property and equipment | (526 | ) | (355 | ) | |||||
Investment in capitalized software | (1,576 | ) | (1,176 | ) | |||||
Investment in LightMiner | — | (19 | ) | ||||||
Cash acquired in |
189 | — | |||||||
Cash paid for the acquisition of |
(753 | ) | — | ||||||
Net Cash Flows Used in Investing Activities | (2,665 | ) | (1,550 | ) | |||||
Cash Flows provided by Financing Activities | |||||||||
Advances (repayment) of lines of credit | (1,863 | ) | 4,682 | ||||||
Advances from term loan | — | 2,000 | |||||||
Repayment of term loan | (1,611 | ) | (764 | ) | |||||
Proceeds from debenture and convertible preferred stock | 5,000 | — | |||||||
Net proceeds from the issuance of common stock and warrants | 1,734 | — | |||||||
Advances to related party | (3 | ) | — | ||||||
Advances from related party | 3 | 2 | |||||||
Net proceeds from issuance of common stock | — | 4,685 | |||||||
Repayment of notes payable | (70 | ) | (71 | ) | |||||
Net Cash Provided by Financing Activities | 3,190 | 10,534 | |||||||
Effect of Foreign Exchange Rate on Changes on Cash | 21 | 49 | |||||||
Net (Decrease) Increase in Cash and Cash Equivalents | (2,239 | ) | 832 | ||||||
Cash and Cash Equivalents – Beginning of period | 4,060 | 3,228 | |||||||
Cash and Cash Equivalents – End of period | $ | 1,821 | $ | 4,060 | |||||
Reconciliation of Non-GAAP Financial Measures: | |||||||||
(In thousands) |
Years Ended |
||||||||
2016 |
2015 |
||||||||
Net loss attributable to stockholders | $ | (27,114 | ) | $ | (11,719 | ) | |||
Adjustments: | |||||||||
Non-recurring one-time charges: | |||||||||
Provision for doubtful accounts | 685 | 1,206 | |||||||
Reserve for recoverability of note receivable | 1,077 | — | |||||||
Costs associated with public offering | 4 | 46 | |||||||
Acquisition transaction/financing costs | 876 | 355 | |||||||
Severance | 55 | 307 | |||||||
(Gain)/Loss on the settlement of obligations | (1,541 | ) | 85 | ||||||
Change in the fair value of shares to be issued | (13 | ) | (211 | ) | |||||
Change in the fair value of derivative liability | (51 | ) | — | ||||||
Stock-based compensation – compensation and related benefits | 1,377 | 1,424 | |||||||
Interest expense | 1,743 | 448 | |||||||
Impairment of goodwill | 7,400 | — | |||||||
Depreciation and amortization | 5,662 | 4,647 | |||||||
Adjusted EBITDA | $ | (9,840 | ) | $ | (3,412 | ) | |||
(In thousands, except share data) | Years Ended |
||||||||
2016 | 2015 | ||||||||
Net loss attributable to stockholders | $ | (27,114 | ) | $ | (11,719 | ) | |||
Adjustments: | |||||||||
Non-recurring one-time charges: | |||||||||
Provision for doubtful accounts | 685 | 1,206 | |||||||
Reserve for recoverability of note receivable | 1,077 | — | |||||||
Costs associated with public offering | 4 | 46 | |||||||
Acquisition transaction/financing costs | 876 | 355 | |||||||
Severance | 55 | 307 | |||||||
(Gain)/Loss on the settlement of obligations | (1,541 | ) | 85 | ||||||
Change in the fair value of shares to be issued | (13 | ) | (211 | ) | |||||
Change in the fair value of derivative liability | (51 | ) | — | ||||||
Stock-based compensation – compensation and related benefits | 1,377 | 1,424 | |||||||
Impairment of goodwill | 7,400 | — | |||||||
Amortization of intangibles | 4,328 | 3,994 | |||||||
Proforma non-GAAP net loss | $ | (12,917 | ) | $ | $ (4,513 | ) | |||
Proforma non-GAAP net loss per basic and diluted common share | $ | (7.44 | ) | $ | (3.20 | ) | |||
Weighted average basic and diluted common shares outstanding | 1,737,120 | 1,412,094 | |||||||
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Inpixon Investor Relations:
CORE IR
Managing Director
www.coreir.com
or
Media Contact:
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