Envivio Reports First Quarter Fiscal 2014 Financial Results

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
         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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