Envivio Reports Fourth Quarter and Fiscal 2013 Financial Results

Envivio Reports Fourth Quarter and Fiscal 2013 Financial Results

SOUTH SAN FRANCISCO, Calif., March 26, 2013 (GLOBE NEWSWIRE) -- Envivio
(Nasdaq:ENVI), a leading provider of live and on-demand multi-screen IP video
processing and delivery solutions, today announced financial results for the
fourth quarter and fiscal year 2013 ended January 31, 2013.

Financial Highlights

  *Revenue for the fourth quarter of fiscal 2013 was $7.7 million, compared
    to $7.2 million in the third quarter of fiscal 2013 and $15.5 million in
    the fourth quarter of fiscal 2012. Revenue for fiscal 2013 was $39.1
    million, compared to $50.6 million in fiscal 2012.
  *GAAP net loss for the fourth quarter of fiscal 2013 was $4.9 million, or
    $0.18 per share, compared to net loss of $5.6 million, or $0.21 per share,
    in the third quarter of fiscal 2013 and net income of $754,000, or $0.00
    per share, in the fourth quarter of fiscal 2012. GAAP net loss for fiscal
    2013 was $16.9 million, or $0.72 per share, compared to net income of
    $138,000, or $0.00 per share in fiscal 2012.
  *Non-GAAP net loss for the fourth quarter of fiscal 2013 was $4.1 million,
    or $0.15 per share, compared to net loss of $4.9 million, or $0.18 per
    share, in the third quarter of fiscal 2013 and net income of $1.2 million,
    or $0.00 per share, in the fourth quarter of fiscal 2012. Non-GAAP net
    loss for fiscal 2013 was $14.1 million, or $0.60 per share, compared to
    net income of $1.8 million, or $0.00 per share in fiscal 2012.
  *As of January 31, 2013, Envivio had cash, cash equivalents and short-term
    investments of $54.9 million.

A reconciliation of the difference between these non-GAAP financial measures
with the most directly comparable GAAP measures, as well as a description of
the items excluded from the non-GAAP measures, is included in the financial
information portion of this press release.

"While we continue to see delays in spending for multi-screen video processing
solutions, partly due to a weak macroeconomic environment, we made progress
this quarter in positioning ourselves to address these challenges," said
Julien Signès, President and CEO, Envivio. "We restructured our sales force
which included the appointment of our new senior vice president of global
sales and service and we focused on execution in the broader, Pay TV video
processing market, while prudently investing in our multi-screen technology
for long-term growth."

Business Highlights

  *Ira Goldfarb was appointed Senior Vice President of Global Sales and
    Service.
  *Envivio announced its HEVC Early Access Program for customers seeking to
    implement HEVC (H.265) encoding and its collaboration with Broadcom to
    provide encoder and decoder interoperability. This collaboration enables
    faster time to market for service providers seeking to roll out HEVC
    services for OTT or Pay TV services in the coming months.
  *Totalplay Telecomunicaciones SA, a cable and IPTV service provider in
    Mexico, deployed Envivio Muse encoders for its live and on-demand video
    services.
  *Wasu Media Group, a cable and new media service provider in Huangzhou
    province, China, has selected Envivio Muse™ transcoders on the 4Caster™
    appliance for its cable and multi-screen services.
  *Envivio and Vinson deployed an integrated mobile TV solution for three
    broadcasters in Belgium. The combined solution — incorporating Envivio
    software-based encoding and the Vinson app for navigation and social media
    integration — offers viewers premium quality video and a new television
    experience on mobile devices.
  *Envivio underscored its leadership in the development of next-generation
    software-based solutions at CABSAT 2013 in Dubai, TV Connect in London and
    CCBN in Beijing through technology demonstrations of HEVC compression and
    showcasing its range of video convergence technologies including Envivio
    Muse and Envivio Halo™.
  *At NAB 2013, a key industry event taking place April 8-11 in Las Vegas,
    Envivio will feature a variety of next-generation technology
    demonstrations, including HEVC and Ultra HD (4K) television, as well as
    introduce new products for advanced software-based video processing.

Conference Call Information

Envivio will host an investor conference call and live webcast today, March
26, 2013, at 5:00 p.m. EDT (2:00 p.m. PDT) to discuss its financial results
for the fourth quarter and fiscal year ended January 31, 2013. To access the
conference call, dial 877-941-1427, using conference code 4607258. Callers
outside the U.S. and Canada should dial 480-629-9664, using conference code
4607258. A replay of the conference call will be available through Tuesday,
April 2, 2013. To access the replay, please dial 800-406-7325 and enter pass
code 4607258. Callers outside the U.S. and Canada should dial 303-590-3030 and
enter pass code 4607258. The live webcast will be accessible on Envivio's
investor relations website at http://ir.envivio.com and will be archived and
available on this site for at least three months.

Non-GAAP Financial Measurements

This news release dated March 26, 2013 contains non-GAAP financial measures.
Tables are provided in this news release that reconcile the non-GAAP financial
measures to the most directly comparable financial measures prepared in
accordance with Generally Accepted Accounting Principles (GAAP). These
non-GAAP financial measures include non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating margin, non-GAAP net income and non-GAAP net
income per share. 

To supplement the Company's consolidated financial statements presented on a
GAAP basis, management believes that these non-GAAP measures provide useful
information about the Company's core operating results and thus are
appropriate to enhance the overall understanding of the Company's past
financial performance and its prospects for the future. Management is
excluding from its non-GAAP operating results Financial Accounting Standards
Board ASC 718 (FAS 123R) stock-based compensation.Management uses these
non-GAAP measures to evaluate the Company's financial results, and believes
these measures provide useful information to investors. For its internal
budgeting process, management also uses financial statements that do not
include, when applicable, stock-based compensation expense. The adjustments to
the Company's GAAP results are made with the intent of providing both
management and investors a more complete understanding of the Company's
underlying operational results, trends and performance. The presentation of
additional information is not meant to be considered in isolation or as a
substitute for or superior to financial results determined in accordance with
GAAP.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, including statements about prudently investing in
Envivio's multi-screen services for long-term growth.Actual results may vary
materially due to a number of factors including, but not limited to, the risk
that, upon completion of further closing procedures, that the financial
results for the fourth quarter and fiscal 2013 are different than the results
set forth in this press release, unexpected changes in Envivio's business,
changes in capital spending in the markets Envivio serves, disruption with
existing or the failure to develop new relationships with channel partners,
the ability of new members of management and Envivio's sales team to integrate
quickly and effectively contribute to Envivio's sales performance,
unpredictable sales cycles, failure to develop new and enhanced products in a
timely manner, the loss of a key customer, the loss of Envivio's sole source
manufacturer, the loss of a key supplier, claims of technology infringement,
general economic conditions and other risks detailed from time to time in
Envivio's SEC reports.Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
hereof.Envivio undertakes no obligation to publicly release or otherwise
disclose the result of any revision to these forward-looking statements that
may be made as a result of events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.

About Envivio

Envivio (Nasdaq:ENVI) is a leader in solutions for multi-screen video
processing and delivery. Envivio solutions remove the boundaries of
traditional television and make the world's video content universally
enjoyable by all viewers, on any device, across any network, at any time. Now
in its second decade of developing market-leading video convergence solutions,
Envivio powers services for more than 300 content and service provider
customers around the world, including eight of the top 10 mobile operators,
nine of the top 10 broadband providers and three of the top four US cable
operators. Envivio is headquartered in South San Francisco, California and has
offices worldwide including France, England, China, Singapore and Japan. Visit
www.envivio.com for more information.


ENVIVIO, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(UNAUDITED)
                                                                 
                                                                 
                                                      January31, January 31,
                                                      2012        2013
                                                      (in thousands)
Assets                                                            
Current assets:                                                   
Cash and cash equivalents                              $27,405   $51,344
Short-term investments                                 --        3,517
Accounts receivable, net of allowance for doubtful     8,499      8,376
accounts
Inventory                                              108        708
Prepaid expenses and other assets                      2,456      2,891
Deferred inventory costs, current                      1,547      318
Total current assets                                  40,015     67,154
Property and equipment, net                            3,016      5,003
Deferred inventory costs, net of current portion       100        --
Other assets                                           1,447      216
Total assets                                           $44,578   $72,373
                                                                 
Liabilities, convertible preferred stock and                      
stockholders' equity (deficit)
Current liabilities:                                              
Accounts payable                                       $7,035    $4,953
Accrued compensation                                   4,615      3,395
Accrued liabilities                                    929        1,271
Deferred revenue, current                              7,257      3,298
Line of credit                                         1,000      --
Total current liabilities                             20,836     12,917
Deferred revenue, net of current portion               1,400      1,360
Warrant liability                                      103        --
Other non-current liabilities                          1,163      1,661
Deferred rent                                          --        874
Total liabilities                                      23,502     16,812
                                                                 
Convertible preferred stock                            47,764     --
Stockholders' equity (deficit):                                   
Common stock                                           13         27
Additional paid-in capital                             52,954     152,167
Accumulated other comprehensive loss                   (825)      (868)
Accumulated deficit                                    (78,830)   (95,765)
Total stockholders' equity (deficit)                   (26,688)   55,561
Total liabilities, convertible preferred stock and     $44,578   $72,373
stockholders' equity (deficit)


ENVIVIO, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(UNAUDITED)
                                                                    
                                                                    
              Three Months Ended                  Year Ended January31,
              (in thousands, except for per share amounts)
              January31, October31, January31, 2011       2012        2013
               2012        2012        2013
Revenues       $15,522   $7,219    $7,701    $30,004  $50,646   $39,099
Cost of        5,460      2,548      3,187      11,504    18,492     14,993
revenue
Gross profit   10,062     4,671      4,514      18,500    32,154     24,106
Expenses                                                             
Research and   1,867      2,057      1,499      5,152     6,728      7,589
development
Sales and      4,982      5,167      4,816      8,886     16,206     21,359
marketing
General and    2,214      2,964      3,016      6,449     8,561      11,730
administrative
Total
operating      9,063      10,188     9,331      20,487    31,495     40,678
expenses
Income (loss)
from           999        (5,517)    (4,817)    (1,987)   659        (16,572)
operations
Interest
income         (36)       32         37         (270)     (134)      84
(expense), net
Other income   (20)       30         15         (61)      237        (72)
(expense), net
Income (loss)
before         943        (5,455)    (4,765)    (2,318)   762        (16,560)
provision for
income taxes
Provision for  189        112        88         167       624        375
income taxes
Net income     754        (5,567)    (4,853)    (2,485)   138        (16,935)
(loss)
Deemed
dividend on
convertible    --        --        --        (2,286)   --        --
preferred
stock
Accretion of
redeemable
convertible    (5)        --        --        --       (5)        --
preferred
stock
Noncumulative
dividends to
convertible    (749)      --        --        --       (133)      --
preferred
shareholders
Net loss
attributable   --        (5,567)    (4,853)    (4,771)   --        (16,935)
to common
stockholders
                                                                    
Net loss per
share of
common stock,  $--      $(0.21)   $(0.18)   $(0.58)  --        $(0.72)
basic and
diluted
                                                                    
Shares used in
computing net
loss per share 13,169,608 26,920,518 26,931,071 8,203,001 13,123,524 23,577,491
of common
stock, basic
and diluted


ENVIVIO, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Non-GAAP Net Income
(UNAUDITED)
                                                                    
                                                                    
             Three Months Ended                  Year Ended January 31,  
             (in thousands, except for per share amounts)                   
             January    October 31, January    2012        2013        
              31, 2012    2012        31, 2013
                                                                    
GAAP net      $754      (5,567)    $(4,853)  $138      $(16,935) 
income (loss)
Adjustments:                                                         
Stock-based   $439      668        $721      $1,651    $2,833    
compensation
Non-GAAP net  $1,193    (4,899)    $(4,132)  $1,789    $(14,102) 
income (loss)
Accretion of
redeemable
convertible   $(5)                 $--      $(5)      $--      
preferred
stock
Noncumulative
dividends to
convertible   $(1,188)  --        $--      $(1,784)  $--      
preferred
shareholders
Non-GAAP net
loss
attributable  $--      (4,899)    $(4,132)  $--      $(14,102) 
to common
stockholders
                                                                    
Non-GAAP net
loss per
share of      $--      (0.18)     $(0.15)   $--      $(0.60)   
common stock,
basic and
diluted
Shares used
in computing
net income
(loss) per    13,169,608 26,920,518 26,931,071 13,123,524 23,577,491 
share of
common stock,
basic and
diluted

CONTACT: Envivio
         Sarah Lum
         pr@envivio.com
         +1.650.243.2710
        
         The Blueshirt Group
         Investor Relations for Envivio
         Alice Kousoum and Cynthia Hiponia
         ir@envivio.com
         +1.650.243.2702

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