Envivio Reports First Quarter Fiscal 2014 Financial Results SOUTH SAN FRANCISCO, Calif., May 30, 2013 (GLOBE NEWSWIRE) -- Envivio (Nasdaq:ENVI), a leading provider of software-based video processing and delivery solutions, today announced financial results for the first quarter of fiscal 2014 ended April 30, 2013. Financial Highlights *Revenue for the first quarter of fiscal 2014 was $7.5 million, compared to $7.7 million in the fourth quarter of fiscal 2013 and $13.4 million in the first quarter of fiscal 2013. *GAAP net loss for the quarter was $4.7 million, or $0.18 per share, compared to GAAP net loss of $4.9 million, or $0.18 per share, in the fourth quarter of fiscal 2013 and GAAP net loss of $2.2 million, or $0.17 per share, in the first quarter of fiscal 2013. *Non-GAAP net loss for the quarter was $4.2 million, or $0.16 per share, compared to non-GAAP net loss of $4.1 million, or $0.15 per share, in the fourth quarter of fiscal 2013 and non-GAAP net loss of $1.5 million, or $0.12 per share, in the first quarter of fiscal 2013. 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 statements portion of this press release. "In the first quarter, customer engagements in North America increased following the changes we made previously in our sales force," said Julien Signès, President and CEO, Envivio. "We are pleased with our key wins this quarter which included tier 1 North American companies in the cable and telecommunications sectors. We remain focused on increasing our engagements with content and service provider customers, via our direct sales force and new channel partners to improve our market presence." As of April 30, 2013, Envivio had cash, cash equivalents and short-term investments of $49.9 million. Business Highlights oIncrediTek, a value added reseller (VAR) and Envivio's reseller to Verizon Communications Inc., contributed 18.5% of revenue for the Company in the first quarter of fiscal 2014. oEnvivio signed a master purchase agreement with a leading tier 1 US cable multiple-system operator. oEnvivio announced its integration with Adobe® Primetime, the industry's most advanced video publishing and monetization platform for programmers and pay TV service providers enabling delivery of a high quality TV-like viewing experience across connected devices. oEnvivio introduced Envivio Halo™ Experience Server, an innovative new multi-screen application server that allows operators to further personalize the user experience based on individual viewer requests and facilitates advanced applications including time-shifted TV and network DVR, targeted advertisement insertion, social and personalized TV. oEnvivio was honored as a winner of the inaugural Best of NAB Award presented by Streaming Media magazine. Envivio Halo™ Experience Server was selected for its capabilities that are designed to personalize and advance the multi-screen user experience without requiring complex changes to the existing video infrastructure. oEnvivio announced that the Envivio Muse™ software-based encoders have received a 2012 Cable Spotlight Product of the Year Award from Cable.TMCnet.com, a TMC sponsored cable technology website. Conference Call Information Envivio will host an investor conference call and live webcast today at 5:00 p.m. EDT (2:00 p.m. PDT) to discuss its financial results for the first quarter ended April 30, 2013. To access the conference call, dial 877-941-2068, using conference code 4620849. Callers outside the U.S. and Canada should dial 480-629-9712, using conference code 4620849. A replay of the conference call will be available through Friday, June 7, 2013. To access the replay, please dial 800-406-7325 and enter pass code 4620849. Callers outside the U.S. and Canada should dial 303-590-3030 and enter pass code 4620849.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 May 30, 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, share-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 Envivio's continued focus on increasing its engagements with content and service provider customers to improve its market presence.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 first quarter of fiscal 2014 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, unpredictable sales cycles, fluctuations in our operating results, failure to develop new and enhanced products in a timely manner, the loss of a key customer, the loss of our 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. Productinformation is intended to outline our general product direction, is not a commitment, promise or legal obligation to deliver any material, code, or functionality, and should not be relied on in making a purchasing decision. The development, release, and timing of any features or functionality described for our products remains at our sole discretion. Envivio reserves the right to modify future product plans at any time. These new software options may be purchased separately when and if available. 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) April 30, January 31, 2013 2013 (in thousands) Assets Current assets: Cash and cash equivalents $48,847 $51,344 Short-term investments 1,007 3,517 Accounts receivable, net of allowance for doubtful 8,973 8,376 accounts Inventory 545 708 Prepaid expenses and other assets 3,322 2,891 Deferred inventory costs, current 228 318 Total current assets 62,922 67,154 Property and equipment, net 4,583 5,003 Other assets 223 216 Total assets $67,728 $72,373 Liabilities, convertible preferred stock and stockholders' equity Current liabilities: Accounts payable $3,871 $4,953 Accrued compensation 3,759 3,395 Accrued liabilities 1,457 1,271 Deferred revenue, current 3,841 3,298 Total current liabilities 12,928 12,917 Deferred revenue, net of current portion 1,096 1,360 Other non-current liabilities 1,472 1,661 Deferred rent 866 874 Total liabilities 16,362 16,812 Stockholders' equity (deficit): Common stock 28 27 Additional paid-in capital 152,731 152,168 Accumulated other comprehensive loss (888) (868) Accumulated deficit (100,505) (95,766) Total stockholders' equity 51,366 55,561 Total liabilities, convertible preferred stock and $67,728 $72,373 stockholders' equity ENVIVIO, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (UNAUDITED) Three Months Ended (in thousands, except for per share amounts) April 30, 2013 January 31, 2013 April 30, 2012 Revenues Product $5,669 $5,877 $11,652 Professional services and 1,793 1,824 1,764 support Total revenue 7,462 7,701 13,416 Cost of revenue Product 2,276 2,762 4,762 Professional services and 465 425 374 support Total cost of revenue 2,741 3,187 5,136 Gross profit 4,721 4,514 8,280 Expenses Research and development 1,967 1,499 1,997 Sales and marketing 5,063 4,816 5,744 General and administrative 2,553 3,016 2,688 Total operating expenses 9,583 9,331 10,429 Income (loss) from operations (4,862) (4,817) (2,149) Interest income (expense), net 19 37 (9) Other income (expense), net (7) 15 27 Loss before provision for (4,850) (4,765) (2,131) income taxes Income tax provision (benefit) (111) 88 106 Net income (loss) (4,739) (4,853) (2,237) Net loss attributable to common $(4,739) $(4,853) $(2,237) stockholders Net loss per share of common $(0.18) $(0.18) $(0.17) stock, basic and diluted Shares used in computing net loss per share of common stock, 27,061,498 26,931,071 13,322,309 basic and diluted ENVIVIO, INC. AND SUBSIDIARIES Reconciliation of Net Income to Non-GAAP Net Income (UNAUDITED) Three Months Ended (in thousands, except for per share amounts) April 30, 2013 January 31, 2013 April 30, 2012 GAAP Net loss $(4,739) $(4,853) $(2,237) Adjustments: Stock-based compensation $519 $721 $690 Non-GAAP net income loss $(4,220) $(4,132) $(1,547) Non-GAAP net loss per share of common stock, basic and $(0.16) $(0.15) $(0.12) diluted Shares used in computing net income (loss) per share of 27,061,498 26,931,071 13,322,309 common stock, basic and diluted CONTACT: Envivio Sarah Lum email@example.com +1.650.243.2710 The Blueshirt Group Investor Relations for Envivio Alice Kousoum and Cynthia Hiponia firstname.lastname@example.org +1.650.243.2702 company logo
Envivio Reports First Quarter Fiscal 2014 Financial Results
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