Sphere 3D Corporate Update
Q2 Revenue up 70% Over Q1, Significant Additional Milestones Achieved
MISSISSAUGA, Ontario, July 28, 2014 (GLOBE NEWSWIRE) -- Sphere 3D Corporation
(TSX-V:ANY) (Nasdaq:ANY) (the "Company" or "Sphere 3D"), a virtualization
technology solution provider, is providing the following corporate update.
"We have seen a healthy increase in revenue along with increased demand for
our entire product portfolio. In addition, the transformative agreement we
entered into with Overland Storage creates a multitude of additional marketing
and revenue opportunities for us," said Peter Tassiopoulos, CEO of Sphere 3D.
"In addition to revenue expansion, we continued to expand our key strategic
partnerships in the second quarter and will continue to do so throughout the
year as we look to build on our early success."
Highlights for Q2 (all amounts in CDN):
*Estimated revenue for Q2 2014 is expected to exceed $1.7 million,
representing a 70% increase quarter-over-quarter;
*Cash and short term investments at the end of Q2 2014 exceed $9 million;
*Total assets at the end of Q2 2014 exceed $35 million;
*Completed equity financing of $10 million;
*Company's common shares were approved for listing on NASDAQ Global Market
and trading commenced on July 8^th;
*New product introductions;
*New patent filed for Glassware 2.0® single chip architecture;
*Transformative definitive agreement to merge with Overland Storage signed.
Revenue for the second quarter was primarily derived from sales and or
licensing of Glassware 2.0, V3 appliances, DCO, and affiliated service and
support. Interest in the product portfolio was heavily weighted towards
Healthcare, Government (including Education) and Financial Services. In
keeping with the increased demand, the Company expanded its sales and support
capabilities through the addition of additional resources and anticipates that
the proposed merger with Overland (as described below) will provide additional
capacity in this regard.
Sphere 3D continues on its quest to redefine the boundaries of hardware
through its "software defined everything" approach to computing. DLA Piper, on
behalf of the Company, filed a provisional patent for the first microvisor
runtime environment available on a chip. The latest IP creation is a
culmination of years of miniaturization work with the intent of making
Glassware 2.0 completely portable and available offline.
Glassware 2.0 has seen its architecture streamlined and gain efficiency
continuously since the first iteration that required 8 individual hardware
servers in 2010, to its current production state of availability on a single
The most recent progress of the Glassware 2.0 single chip architecture allowed
Sphere 3D to showcase Glassware 2.0 server technology running on a single
laptop for attendees at BriForum.
New Product Introductions
The second quarter resulted in expanded utilization of the Company's products
and the introduction of new solutions that leverage Sphere 3D technology.
Novarad Corporation, a leader in enterprise medical imaging solutions,
introduced NovaGlass™, at the SIIM (Society for Imaging Informatics in
Medicine) Conference in Long Beach, California in May 2014.
Designed to leverage Novarad PACS and RIS solutions, NovaGlass™ resides on
enterprise grade appliances, utilizes Sphere 3D software, and provides users
with access to full imaging features while significantly enhancing operating
speeds and choice of workstations.
The Company also announced their first converged solution for the MSP market
in May 2014. The Sphere 3D Converged MSP Solution includes custom
configurations of the V3 appliance, storage, industry-standard desktop
virtualization, and Glassware 2.0.
The new solution has been in production with various clients since the initial
part of this year and additional trials are underway and in planning stages
with several MSP customers, including Telco's and Data Centers.
Merger Agreement with Overland
On May 16^th, 2014, the Company announced that it had entered into a
definitive agreement to acquire Overland Storage, Inc. (Nasdaq:OVRL). Overland
is a trusted global provider of unified data management and data protection
solutions designed to enable small and medium enterprises, distributed
enterprises, and small and medium businesses to anticipate and respond to data
Overland provides an integrated range of technologies and services for
primary, nearline, offline, and archival data storage, and makes it easy and
cost effective to manage different tiers of information over time, whether
distributed data is across the hall or across the globe.
Overland SnapServer, RDX removable disk-based technology, SnapScale,
SnapServer, SnapSAN, NEO Series and REO Series solutions are available through
a channel of over 16,000 resellers, multiple distributers and OEMs in over 60
Additional details of the merger can be found in the Company filings on Sedar
About Sphere 3D Corporation
Sphere 3D Corporation (TSX-V:ANY) (Nasdaq:ANY) is a virtualization technology
solution provider. Sphere 3D's Glassware 2.0™ platform delivers virtualization
of some of the most demanding applications in the marketplace today; making it
easy to move applications from a physical PC or workstation to a virtual
environment either on premise and/or from the cloud. Sphere 3D's V3 Systems
division supplies the industry's first purpose built appliance for
virtualization as well as the Desktop Cloud Orchestrator management software
for VDI. Sphere 3D recently announced its proposed merger with Overland
Storage (Nasdaq:OVRL). This alliance is intended to bring together next
generation technologies for virtualization and cloud coupled with end-to-end
scalable storage offerings enabling the introduction of a number of converged
solutions. Sphere 3D maintains offices in Mississauga, Ontario, Canada and in
Salt Lake City, Utah, U.S. For additional information visit www.sphere3d.com
or access the Company's public filings at www.sedar.com or www.sec.gov.
This release contains forward-looking statements. Forward-looking statements,
without limitation, may contain the words believes, expects, anticipates,
estimates, intends, plans, or similar expressions. Forward-looking statements
are not guarantees of future performance. They involve risks, uncertainties
and assumptions and actual results could differ materially from those
anticipated. Forward looking statements are based on the opinions and
estimates of management at the date the statements are made, and are subject
to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the
forward-looking statements. Except for historical facts, the statements in
this news release, as well as oral statements or other written statements made
or to be made by Sphere 3D Corporation, are forward-looking and involve risks
and uncertainties. In the context of any forward-looking information please
refer to risk factors detailed in, as well as other information contained in
the Company's Annual Information Form and other filings with Canadian
securities regulators (www.sedar.com) and the United States Securities and
Exchange Commission (www.sec.gov).
Neither TSXV nor its Regulation Services Provider (as that term is defined in
policies of the TSXV) accepts responsibility for the adequacy or accuracy of
CONTACT: Peter Tassiopoulos, CEO
Tel: (416) 749-5999
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