Support.com Reports Third Quarter 2012 Financial Results, Achieves Profitability

Support.com Reports Third Quarter 2012 Financial Results, Achieves
Profitability

REDWOOD CITY, Calif., Oct. 24, 2012 (GLOBE NEWSWIRE) -- Support.com, Inc.
(Nasdaq:SPRT), which provides a comprehensive solution for monetizing
technology services, today reported unaudited financial results for its third
quarter ended September 30, 2012.

Q3 2012 Financial Summary

For the third quarter of 2012, total revenue was $18.2 million compared to
$12.4 million in the third quarter of 2011 and $17.3 million in the second
quarter of 2012.

On a GAAP basis, income from continuing operations for the third quarter of
2012 was $298,000, or $0.01 per share, compared to a loss of $7.1 million, or
$(0.15) per share, in the third quarter of 2011 and a loss of $2.6 million, or
$(0.05) per share, in the second quarter of 2012.

Non-GAAP income from continuing operations for the third quarter of 2012 was
$1.8 million or $0.04 per share, compared to a loss of $5.0 million, or
$(0.10) per share, in the third quarter of 2011 and a loss of $897,000 or
$(0.02) per share, in the second quarter of 2012.

Non-GAAP results exclude stock-based compensation expense, amortization of
intangible assets and other, restructuring and impairment charges, acquisition
expense, other non-recurring items and tax expense associated with acquired
goodwill. These items impacted results from continuing operations by $1.5
million in the third quarter of 2012, $2.1 million in the third quarter of
2011 and $1.7 million in the second quarter of 2012. A reconciliation of GAAP
to non-GAAP results is presented in the tables below.

"Q3 was a milestone quarter for Support.com," said Josh Pickus, President and
CEO. "We achieved long-held efficiency goals, enabling us to reach
profitability and generate cash. Our results reflect the success we're having
in working with leading brands to monetize technology services. We look
forward to extending our market leadership position."

Balance Sheet Information

At September 30, 2012 cash, cash equivalents and investments were $51.6
million compared to $48.5 million at June 30, 2012.

Recent Highlights

  *Revenue growth of 47% year-over-year
  *Non-GAAP earnings of $0.04 per share
  *Cash and cash equivalents increase of $3.1 million sequentially
  *Non-GAAP services gross margin of 41%
  *Reached agreement with leading Canadian communications provider for SMB
    program
  *Business model extended to provide service delivery platform on a
    standalone basis; first agreement signed
  *5 Star "Spectacular" review from CNET for SUPERAntiSpyware product

Conference Call

Support.com will host a conference call discussing the Company's third quarter
2012 results on Wednesday, October 24, 2012 starting at 4:30 p.m. ET (1:30
p.m. PT). The live call may be accessed by dialing (877) 312-8789 (domestic)
or (253) 237-1314 (international) and referencing passcode 39316444. A live
audio webcast and replay of the call will be available at the Investor
Relations section of Support.com's website at
http://www.support.com/about/investor-relations/webcastsevents.

About Support.com

Support.com, Inc. (Nasdaq:SPRT) enables partners to unlock the potential of
technology services. We help leading brands create new revenue streams and
deepen customer loyalty through programs that enhance their customers'
technology experience. Our solution includes a comprehensive service delivery
platform, mobile and desktop apps, a scalable workforce of technology
specialists and proven expertise in program design and execution. Our partners
include many of the nation's leading communications providers, retailers and
technology companies. For more information, please visit us at:
www.support.com.

Support.com, Inc. is an Equal Opportunity Employer. For more information,
visit http://www.support.com/about/careers.

Copyright © 2012 Support.com, Inc. All rights reserved. Support.com and
SUPERAntiSpyware are trademarks orregistered trademarksof Support.com,
Inc.in the U.S. and other countries. All other marks are the property of
their respective owners.

The Support.com, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11893

Note on Forward-Looking Statements

Statements made in this document that are not historical facts are
"forward-looking statements" and accordingly involve risks and uncertainties
that could cause actual results to differ materially from those described
herein. Forward-looking statements include, for example, all statements
relating to projected financial performance (including without limitation
statements involving projections of revenue, margin, income (loss), earnings
(loss) per share, cash usage, capital structure, and other financial items);
the plans and objectives of management for future operations, partnerships,
products, services or investments; and future performance in economic and
other terms. The potential risks and uncertainties that could cause results to
differ materially include, among others, our ability to retain and grow major
partnerships, our ability to maintain and grow revenue, our ability to scale
and manage our workforce and our ability to control expenses and achieve
desired margins. These and other risks are detailed in Support.com's reports
filed with the Securities and Exchange Commission, including without
limitation its latest Annual Report on Form 10-K and its latest quarterly
report on Form 10-Q, copies of which may be obtained from www.sec.gov.
Support.com does not intend to update this information to reflect future
events or circumstances, and disclaims any obligation to do so except as may
be required by law.

Disclosure Regarding Non-GAAP Financial Measures

Support.com has excluded stock-based compensation expense, amortization of
intangible assets and other, restructuring and impairment charges, acquisition
expense, other non-recurring items and tax expense associated with acquired
goodwill from its GAAP results in order to determine the non-GAAP financial
measures of income (loss) from continuing operations and earnings (loss) from
continuing operations per share referenced in this document. We believe that
the non-GAAP measures, when viewed in addition to and not in lieu of our
reported GAAP results, assist investors in understanding our results of
operations.

A. Stock-based compensation expense. Management excludes stock-based
compensation expense when evaluating its operating performance because such
expense does not require cash settlement and because such expense is not used
by management to assess the performance of the Company's business. Stock-based
compensation expense was $911,000 in the third quarter of 2012, compared to
$937,000 in the third quarter of 2011 and $1.0 million in the second quarter
of 2012.

B. Amortization of intangible assets and other. Management excludes
acquisition-related intangible asset amortization and related charges when
evaluating its operating performance because the Company does not acquire
businesses on a predictable cycle and excluding such charges enables more
consistent evaluation of the Company's operating performance. Management also
excludes such charges because they represent non-cash expenses. Amortization
of intangible assets and other was $397,000 in the third quarter of 2012,
compared to $330,000 in the third quarter of 2011 and $391,000 in the second
quarter of 2012.

C. Restructuring and impairment charges. Management excludes restructuring and
impairment charges when evaluating its operating performance because the
Company does not undertake restructurings on a predicable basis and excluding
such charges enables more consistent evaluation of the Company's operating
performance. Restructuring and impairment charges were $72,000 in the third
quarter of 2012, compared to $368,000 in the third quarter of 2011 and
$172,000 in the second quarter of 2012.

D. Acquisition expense. Management excludes acquisition expense such as legal
fees and advisor fees when evaluating its operating performance because the
Company does not acquire businesses on a predictable cycle and excluding such
expense enables more consistent evaluation of the Company's operating
performance. Acquisition expense was $1,000 in the third quarter of 2012,
compared to $190,000 in the third quarter of 2011 and $16,000 in the second
quarter of 2012.

E. Other non-recurring items.Management excludes other non-recurring items
when evaluating its operating performance because the Company does not incur
such expenses on a predictable basis and exclusion of such expenses enables
more consistent evaluation of the Company's operating performance. Other
non-recurring items totaled $86,000 in the third quarter of 2012, compared to
zero in the third quarter of 2011 and $57,000 in the second quarter of 2012.

F. Tax expense associated with acquired goodwill. The Company is required to
record a deferred tax liability and the related tax expense that results from
the amortization for income tax purposes of acquired goodwill.Management
excludes tax expense associated with acquired goodwill when evaluating its
operating performance because the Company does not acquire businesses on a
predictable cycle and excluding such expense enables more consistent
evaluation of the Company's operating performance.Tax expense associated with
acquired goodwill was $69,000 in the third quarter of 2012, compared to
$270,000 in the third quarter of 2011 and $68,000 in the second quarter of
2012.

The Company believes that non-GAAP measures have significant limitations in
that they do not reflect all of the amounts associated with the Company's
financial results as determined in accordance with GAAP and that these
measures should only be used to evaluate the Company's financial results in
conjunction with the corresponding GAAP measures. In addition, the exclusion
of the charges and expenses indicated above from the non-GAAP financial
measures presented does not indicate an expectation by management that such
charges and expenses will not be incurred in subsequent periods.

                                                          
                                                          
SUPPORT.COM, INC.
GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                                                          
                                      September 30,        December 31,
                                       2012 (1)             2011 (2)
                                                          
Assets                                                     
Current assets:                                            
Cash, cash equivalents and short-term  $51,587            $51,902
investments
Accounts receivable, net               9,785               10,284
Prepaid expenses and other current     1,565               1,068
assets
Total current assets                   62,937              63,254
Long-term investment                   --                 1,111
Property and equipment, net            670                 461
Purchased technology, net              82                  143
Goodwill                               14,240              13,621
Intangible assets, net                 5,126               5,670
Other assets                           940                 736
                                                          
Total assets                           $83,995            $84,996
                                                          
Liabilities and Stockholders' Equity                      
Current liabilities:                                       
Accounts payable and accrued           $3,011             $2,872
compensation
Other accrued liabilities              4,477               4,491
Short-term deferred revenue            5,971               4,723
Total current liabilities             13,459              12,086
Long-term deferred revenue             139                 489
Other long-term liabilities            1,422               1,086
Total liabilities                      15,020              13,661
                                                          
Stockholders' equity:                                      
Common stock                           5                   5
Additional paid-in-capital             237,984             233,977
Accumulated other comprehensive loss   (1,343)             (1,698)
Accumulated deficit                    (167,671)           (160,949)
Total stockholders' equity             68,975              71,335
                                                          
Total liabilities and stockholders'    $83,995            $84,996
equity
                                                          
Note 1: Amounts are subject to completion of management's and its independent
registered public accounting firm's customary closing and review procedures.
                                                          
Note 2: Derived from audited consolidated financial statements for the year
ended December 31, 2011.

                                                       
                                                       
SUPPORT.COM, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
                                                       
                       Three Months Ended     Nine Months Ended
                        September 30,          September 30,
                       2012 (3)    2011        2012 (3)   2011
Revenue:                                                
Services                $14,769   $8,532    $42,278  $26,124
Software and other      $3,407    3,818      10,799    12,711
Total revenue           18,176     12,350     53,077    38,835
                                                       
Cost of revenue:                                        
Cost of services (4)    8,815      7,917      28,696    21,334
Cost of software and    312        458        1,142     1,295
other (4)
Total cost of revenue   9,127      8,375      29,838    22,629
Gross profit            9,049      3,975      23,239    16,206
Operating expenses:                                     
Amortization of
intangible assets and   397        330        1,155     536
other
Research and            1,643      1,577      5,121     4,458
development (4)
Sales and marketing (4) 3,789      5,954      14,908    16,282
General and             2,897      3,074      8,661     9,300
administrative (4)
Total operating         8,726      10,935     29,845    30,576
expenses
                                                       
Income (loss) from      323        (6,960)    (6,606)   (14,370)
operations
                                                       
Interest income and     93         96         227       371
other, net
                                                       
Income (loss) from
continuing operations,  416        (6,864)    (6,379)   (13,999)
before income taxes
                                                       
Income tax provision    118        264        353       295
                                                       
Income (loss) from
continuing operations,  298        (7,128)    (6,732)   (14,294)
after income taxes
                                                       
Income (loss) from
discontinued            (7)        18         10        3
operations, net of
income taxes
                                                       
Net income (loss)       $291      $(7,110)  $(6,722) $(14,291)
                                                       
Income (loss) from continuing operations, after           
income taxes
Basic                   $0.01     $(0.15)   $(0.14)  $(0.30)
Diluted                 $0.01     $(0.15)   $(0.14)  $(0.30)
                                                       
Income (loss) from discontinued operations, net           
of income taxes
Basic                   $(0.00)   $0.00     $0.00    $0.00
Diluted                 $(0.00)   $0.00     $0.00    $0.00
                                                       
Shares used in computing per share                       
amounts:
Basic                   48,707     48,326     48,571    48,267
Diluted                 50,326     48,326     48,571    48,267
                                                       
Note 3:Amounts are subject to completion of management's and its
independent registered public accounting firm's customary closing and
review procedures.
                                                       
Note 4: Includes stock-based compensation expense, restructuring and
impairment charges, acquisition expense and other non-recurring items,
as follows:
                                                       
                       Three Months Ended    Nine Months Ended
                       September   September   September  September
                        30, 2012    30, 2011    30, 2012   30, 2011
Cost of revenue:                                        
Cost of services       $86       $116      $270     $263
Cost of software and    3          7          24        13
other
Operating expenses:                                     
Research and            252        202        820       545
development
Sales and marketing    94         456        511       757
General and             634        714        1,734     2,241
administrative
Total                   $1,069    $1,495    $3,359   $3,819
                                                                         

                                                             
                                                             
SUPPORT.COM, INC.
RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP FINANCIAL MEASURES
(in thousands, except per share amounts)
(unaudited)
                                                             
                       Three Months Ended        Nine Months Ended
                        September 30,             September 30,
                       2012         2011          2012          2011
                                                             
GAAP cost of revenue   $9,127     $8,375      $29,838     $22,629
Stock-based
compensation expense    (89)        (68)         (295)        (183)
(Cost of revenue
portion only)
Restructuring and
impairment charges      --         (55)         --          (93)
(Cost of revenue
portion only)
Non-GAAP cost of        $9,038     $8,252      $29,543     $22,353
revenue
                                                             
GAAP operating          $8,726     $10,935     $29,845     $30,576
expenses
Stock-based
compensation expense    (822)       (869)        (2,643)      (2,628)
(Excl. cost of revenue
portion)
Amortization of
intangible assets and   (397)       (330)        (1,155)      (536)
other
Restructuring and
impairment charges      (72)        (313)        (244)        (377)
(Excl. cost of revenue
portion)
Acquisition expense     (1)         (190)        (36)         (538)
Other non-recurring     (86)        --          (143)        --
items
Non-GAAP operating      $7,348     $9,233      $25,624     $26,497
expenses
                                                             
GAAP income tax         $118       $264        $353        $295
provision
Tax expense associated  (69)        (270)        (206)        (270)
with acquired goodwill
Non-GAAP income tax     $49        $(6)        $147        $25
provision
                                                             
GAAP income (loss) from
continuing operations,  $298       $(7,128)    $(6,732)    $(14,294)
after income taxes
Stock-based             911         937          2,938        2,811
compensation expense
Amortization of
intangible assets and   397         330          1,155        536
other
Restructuring and       72          368          244          470
impairment charges
Acquisition expense     1           190          36           538
Other non-recurring     86          --          143          --
items
Tax expense associated  69          270          206          270
with acquired goodwill
Total impact of        1,536       2,095        4,722        4,625
Non-GAAP exclusions
Non-GAAP income (loss)
from continuing         $1,834     $(5,033)    $(2,010)    $(9,669)
operations, after
income taxes
                                                             
Income (loss) from
continuing operations,                                        
after income taxes
Basic -GAAP             $0.01      $(0.15)     $(0.14)     $(0.30)
Basic - Non-GAAP        $0.04      $(0.10)     $(0.04)     $(0.20)
                                                             
Diluted - GAAP          $0.01      $(0.15)     $(0.14)     $(0.30)
Diluted - Non-GAAP      $0.04      $(0.10)     $(0.04)     $(0.20)
Shares used in
computing per share                                           
amounts (GAAP)
Basic                   48,707      48,326       48,571       48,267
Diluted                 50,326      48,326       48,571       48,267
Shares used in
computing per share                                           
amounts (Non-GAAP)
Basic                   48,707      48,326       48,571       48,267
Diluted                 50,326      48,326       48,571       48,267
                                                             
The adjustments above reconcile the Company's GAAP financial results to the
non-GAAP financial measures used by the Company. The Company's non-GAAP
financial measures exclude stock-based compensation expense, amortization of
intangible assets and other, restructuring and impairment charges, acquisition
expense, other non-recurring items and tax expense associated with acquired
goodwill. The Company believes that presentation of these non-GAAP items
provides meaningful supplemental information to investors, when viewed in
conjunction with, and not in lieu of, the Company's GAAP results. However, the
non-GAAP financial measures have not been prepared under a comprehensive set
of accounting rules or principles. Non-GAAP information should not be
considered in isolation from, or as a substitute for, information prepared in
accordance with GAAP. Moreover, there are material limitations associated with
the use of non-GAAP financial measures.See the text of this press release for
more information on non-GAAP financial measures.

Amounts are subject to completion of management's and its independent
registered public accounting firm's customary closing and review procedures.

CONTACT: Investor Contact
         Carolyn Bass and Jacob Moelter
         Market Street Partners
         (415) 445-3235
         sprt@marketstreetpartners.com
        
         Media Contact
         Seth Geisler
         Martin Levy Public Relations, Inc.
         (858) 610-9860
         seth@martinlevypr.com

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