Sphere 3D Reports First Quarter Fiscal Year 2018 Financial ResultsSphere 3D Reports First Quarter Fiscal Year 2018 Financial Results

Sphere 3D Corp (NASDAQ:ANY), a containerization, virtualization and data management solutions provider reported financial results for its first quarter ended March 31, 2018.

As quoted in the press release:

• Net revenue for the first quarter of 2018 was $19.4 million, compared to $21.7 million for the first quarter of 2017.

• Product revenue for the first quarter of 2018 was $17.4 million, compared to $19.4 million for the first quarter of 2017.

  • Disk systems revenue was $13.1 million, compared to $15.0 million for the first quarter of 2017. Disk systems is defined as RDX, SnapServer family, virtual desktop infrastructure, and Glassware derived products.
  • Tape archive product revenue was $4.3 million compared to $4.4 million for the first quarter of 2017.

• Service revenue was $2.0 million in the first quarter of 2018 compared to $2.3 million for the first quarter of 2017.

• Gross margin for the first quarter of 2018 was 30.9%, compared to 31.4% for the first quarter of 2017.  Non-GAAP gross margin for the first quarter of 2018 was 33.8%, compared to 34.0% for the first quarter of 2017. Our methodology for determining non-GAAP gross margin, which excludes the effect of intangible asset amortization from gross profit, is described in the Use of GAAP and Non-GAAP Financial Measures section of this announcement.  See also, “Non-GAAP Reconciliations” below.

• Operating expenses for the first quarter of 2018 were $11.1 million, compared to $11.6 million for the first quarter of 2017.

• Share-based compensation expense for the first quarter of 2018 was $0.8 million, compared to $2.2 million for the first quarter of 2017. Depreciation and amortization was $1.5 million in the first quarter of 2018 and the first quarter of 2017.

• Adjusted EBITDA for the first quarter of 2018 was a net loss of $3.3 million, or a net loss of $0.43 per share, based on 7.7 million weighted average shares outstanding, compared to adjusted EBITDA net loss of $966,000, or a net loss of $0.31 per share, based on 3.1 million weighted average shares outstanding for the first quarter of 2017. Adjusted EBITDA is a non-GAAP measure presented as net loss before interest expense, income taxes, acquisition costs, depreciation and amortization, share-based compensation, loss on revaluation of investment, and warrant revaluation gain.  For additional information regarding the non-GAAP financial measures discussed in this release, please see “Use of GAAP and Non-GAAP Financial Measures” and “Non-GAAP Reconciliations ” below.

• Net loss for the first quarter of 2018 was $6.8 million, or a net loss of $0.89 per share, compared to a net loss of $7.8 million, or a net loss of $2.50 per share, in the first quarter of 2017.

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