Conference Call to be Held Today at 4:30 pm Eastern Time
PALO ALTO, Calif. – (BUSINESS WIRE) –Sysorex Global (NASDAQ: SYRX), a developer of high performance analytics software and solutions reported financial results today for the fourth quarter and year ended December 31, 2015.
Fourth Quarter Financial Highlights:
- 2015 Q4 revenue of $20.3 million
- 2015 Q4 gross margin of 26%
- 2015 Q4 GAAP net loss of $0.16 per share
- 2015 Q4 Proforma Non-GAAP net loss1 of $0.04 per share
- 2015 Q4 Non-GAAP Adjusted EBITDA1 loss of $0.8 million
Full Year 2015 Financial Highlights:
- 2015 revenue of $67.0 million
- 2015 gross margin of 29%
- 2015 GAAP net loss of $0.55 per share
- Proforma Non-GAAP net loss1 of $0.22 per share
- 2015 Non-GAAP Adjusted EBITDA1 loss of $3.6 million
Nadir Ali, CEO of Sysorex stated: “2015 was a pivotal year for Sysorex in completing the integration of the acquisitions we made and for positioning Sysorex Global as an innovative technology company that empowers our customers to derive real time value by combining data from both the physical and digital worlds using our proprietary AirPatrol and LightMiner technologies coupled with our professional services and our strategic storage and computing partners.”
2015 Financial Results
Revenue: Total revenues for the year ended December 31, 2015 were $67.0 million compared to $62.9 million for the prior year. The increase of $4.1 million, or approximately 6.5%, is primarily associated with growth in the Storage and Computing and Professional Services segments. Total 2015 revenue included Storage and Computing revenue of $50.0 million, Professional Services Revenue of $11.6 million, SaaS Revenue of $3.7 million and Mobile, IoT & Big Data Products revenue of $1.7 Million.
Gross Profit: Total gross profit for the year ended December 31, 2015 was $19.3 million, compared to $18.7 million in 2014. Gross margin for 2015 was approximately 29% compared to approximately 30% for 2014. This slight difference in margin is based on sales mix.
Net Loss: GAAP net loss attributable to the stockholders for 2015 was $11.7 million, compared to a net loss of $7.5 million for 2014. GAAP net loss per share for 2015 was $0.55, compared to a net loss per share of $0.42 for 2014. The increase in net loss was primarily attributable to an increase in amortization of intangibles, depreciation, acquisition costs, provision for doubtful accounts and the costs of expanding our engineering, sales and marketing operations.
Non-GAAP net loss1: 2015 pro-forma non-GAAP net loss was $4.7 million, compared to a non-GAAP net loss of $2.6 million for 2014. 2015 pro-forma non-GAAP net loss per share was $0.22, compared to a non-GAAP net loss per share of $0.14 for 2014. Non-GAAP net loss per share is defined as net loss per basic and diluted share adjusted for non-cash items including stock based compensation, amortization of intangibles and one time charges including gain/loss on the settlement of obligations, severance costs, change in the fair value of shares to be issued, acquisition costs, provision for doubtful accounts and the costs associated with the public offering.
Non-GAAP adjusted EBITDA1: Total adjusted EBITDA for the year ended December 31, 2015 was a loss of $3.6 million compared to loss of $1.9 million for the year ended December 31, 2014. Non-GAAP adjusted EBITDA is defined as net loss before interest, provision for income taxes, and depreciation and amortization plus adjustments for other income or expense items, non-recurring items and non-cash stock-based compensation.
1 A reconciliation of GAAP to non-GAAP financial measures is provided in the financial statement tables included in this press release. An explanation of these measures is also included under the heading “Non-GAAP Financial Measures.”
2015 Business Highlights
- City of Seattle Selects Sysorex to Optimize its IT Infrastructure – $3.9 million purchase order
- Sysorex announces series of IT engagements with Fortune 500 biopharmaceutical firm
- Sysorex Lands Series of IT Systems Engagements With Leading Health Care Provider
- Agriculture Giant Chooses Sysorex for IT Infrastructure Upgrade
- Sysorex Secures $1 Million Sysorex Cyber-Security Engagement with US Government Agency
- Sysorex Announces Signing of Additional $91 Million Contract With Daruna
- Sysorex Adds Bluetooth Support to Its AirPatrol Mobile Device Security and Locationing Systems
- Sysorex Signs Hearst Corporation to New 3-Year Deal
- Sysorex to Provide Retail Analytics for Saudi Shopping Center
- Citrix Partners with Sysorex to Deliver Strong Mobile Security
- Sysorex to Develop Gaming Analytics for CrowdStar
- Sysorex Acquires Assets of LightMiner Systems
- Sysorex Awarded CIO-CS Contract
- Sysorex Awarded NASA SEWP V Contract
- Sysorex Awarded Sub-Contract on $249 Million Army Enterprise IT Services Contract
All results summarized in this press release (including the financial statement tables) should be considered preliminary, are qualified in their entirety by the financial statement tables included in this press release and are subject to change. Please refer to Sysorex’s Annual Report on Form 10-K for the year ended December 31, 2015, which will be filed with the Securities and Exchange Commission on or about March 30, 2016.
Management will host a conference call on Thursday, March 10, 2016, at 4:30pm Eastern Time to review financial results and corporate highlights. Following management’s formal remarks, there will be a question and answer session.
To listen to the conference call, interested parties within the U.S. should call 1-866-652-5200. International callers should call +1-412-317-6060. All callers should ask for the Sysorex Global conference call. The conference call will also be available through a live webcast at http://services.choruscall.com/links/syrx160310.
A replay of the call will be available approximately one hour after the end of the call through April 11, 2016. The replay can be accessed via Sysorex’s website or by dialing 1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The replay conference playback code is 10082016.
Sysorex (NASDAQ: SYRX) helps you derive real time value by combining data from both the digital and physical worlds. With an innovative approach to big data, analytics and the Internet of Things (IoT), we blend virtual data from software and networks with the huge volume of physical data generated by mobile devices and Internet-connected things to open new worlds of insight. Our unique solutions are helping organizations worldwide improve decision making, increase productivity, and fuel the discoveries of tomorrow. Headquartered in Palo Alto, California, we have regional offices in North America, South America, Europe and the Middle East. Visit https://sysorex.com, follow us @SysorexGlobal and Link up on LinkedIn.
Safe Harbor Statement
All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Sysorex and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of global economic conditions, the performance of management and employees, the company’s ability to obtain financing, competition, general economic conditions and other factors that are detailed in the company’s periodic and current reports available for review at www.sec.gov. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.
Non-GAAP Financial Measures
Management believes that certain financial measures not in accordance with generally accepted accounting principles (“GAAP”) are useful measures of operations. EBIDTA, Adjusted EBITDA and pro forma net loss per share are non-GAAP measures. Sysorex defines “EBITDA” as net income (loss) before interest, provision for (benefit from) income taxes, and depreciation and amortization. Management uses Adjusted EBITDA as the matrix in which it manages the business and Sysorex defines “Adjusted EBITDA” as EBITDA plus adjustments for other income or expense items, non-recurring items and non-cash stock-based compensation. Sysorex defines “pro forma net loss per share” as GAAP net loss per share adjusted for stock-based compensation, amortization of intangibles and one-time non-recurring charges such as gain/loss on the settlement of obligations, severance costs, change in the fair value of shares to be issued, acquisition costs, provision for doubtful accounts and the costs associated with the public offering.
Management provides Adjusted EBITDA and pro forma net loss per share measures so that investors will have the same financial information that management uses, which may assist investors in assessing Sysorex’s performance on a period-over-period basis. Adjusted EBITDA or pro forma net loss per share is not a measure of financial performance under GAAP, and should not be considered an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA and pro forma net loss per share have limitations as analytical tools and should not be considered either in isolation or as a substitute for analysis of Sysorex’s results as reported under GAAP.
A. Sage Osterfeld +1 (760) 707-0459
Scott Arnold, +1 (516) 222-2560