The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from GlobeNewswire (a Nasdaq OMX company)

Envivio Reports First Quarter Fiscal 2013 Financial Results

Wednesday, May 30, 2012

Envivio Reports First Quarter Fiscal 2013 Financial Results13:05 EDT Wednesday, May 30, 2012SOUTH SAN FRANCISCO, Calif., May 30, 2012 (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 first quarter of fiscal 2013 ended April 30, 2012.Financial Highlights Revenue for the first quarter of fiscal 2013 was $13.4 million, up 35% from the same period in the prior year GAAP net loss for the first quarter of fiscal 2013 was $2.2 million, or $0.17 per diluted share Non-GAAP net loss for the first quarter of fiscal 2013 was $1.5 million, or $0.12 per diluted share Initial public offering was completed on April 24, 2012 with approximately $48.6 million in net proceeds "In our first quarter as a public company, we delivered strong year-over-year revenue results, which reflect our leadership in the growing multi-screen video processing market," said Julien Signes, president and CEO, Envivio. "In this quarter we added 17 new customers, expanded sales of our new Halo product and began deployments of satellite TV solutions. We are committed to continuing our growth strategy, and the proceeds from our IPO will provide the flexibility to expand our marketing and sales initiatives, and further develop innovative, industry-leading products." Revenue for the first quarter of fiscal 2013 was $13.4 million, compared to $9.9 million in the first quarter of fiscal 2012. GAAP net loss for the quarter was $2.2 million, or $0.17 per share, compared to $1.2 million, or $0.09 per share, in the first quarter of 2012. Non-GAAP net loss for the quarter was $1.5 million or $0.12 per share, compared to $0.8 million or $0.06 per share in the first quarter of 2012. 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. As of April 30, 2012, Envivio had cash, cash equivalents and short-term investments of $75.3 million.Business Highlights SKY Perfect JSAT Corporation, Japan's largest direct-to-home satellite service provider, deployed Envivio 4Caster™ Gen III encoders powered by Envivio Muse™ software, for the SKY PerfecTV! On-Demand video service. Envivio introduced the Muse iTV™ transcoder for broadcast and over-the-top TV applications. Muse iTV offers improved compression efficiency, lower operating expenses and high interoperability with the CDN to broadcasters and content providers. Envivio extended its suite of products on HP's industry-leading BladeSystem and ProLiant blade server infrastructure. Envivio products that will be available on the HP c7000 and c3000 BladeSystems include Envivio Muse transcoders and the Envivio Halo™, 4Balancer™ and Envivio 4Manager™. China Beijing TV Station selected Envivio's 4Caster C4 Gen III encoders to power its IPTV and over-the-top services to Internet and mobile devices. Maxcom, an integrated telecommunication services operator in Mexico, selected Envivio's 4Caster C4 Gen III encoders to power Yuzu, its new live and on-demand over-the-top streaming service.Business Outlook Envivio has set the following financial performance guidance for the second quarter of fiscal year 2013 ending July 31, 2012: Revenue is expected to be in the range of $17.0 to $18.0 million. Non-GAAP gross margin percentage is expected to be in the range of 62 to 64 percent. Non-GAAP operating loss/income is expected to be in the range of ($0.46 million) to $0.72 million. Non-GAAP net loss/income per share is expected to be in the range of ($0.02) to $0.02. Weighted-average basic shares outstanding are expected to be approximately 27.0 million. Weighted-average diluted shares outstanding are expected to be approximately 29.05 million.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, 2012. To access the conference call, dial 877-941-1427, using conference code 4539183. Callers outside the U.S. and Canada should dial 480-629-9664, using conference code 4539183. A replay of the conference call will be available through Wednesday, June 6, 2012. To access the replay, please dial 800-406-7325 and enter pass code 4539183. Callers outside the U.S. and Canada should dial 303-590-3030 and enter pass code 4539183. 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, 2012 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 expected financial performance for the second quarter of fiscal 2012, Envivio's strategy, customer offerings and products, and the ability of those product offerings to expand Envivio's leadership position. 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 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, 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.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, seven 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. The Envivio logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12583  ENVIVIO, INC. AND SUBSIDIARIESConsolidated Statements of Operations(UNAUDITED)    Three Months Ended April 30,   (in thousands, except for per share amounts)   2011 2012       Revenues  9,903  13,416 Cost of revenue  4,007  5,136 Gross profit  5,896  8,280       Expenses     Research & development  1,503  1,998 Sales and marketing  3,429  5,744 General and administrative  2,131  2,688 Total operating expenses  7,063  10,430       Income (loss) from operations  (1,167)  (2,150) Interest expense, net  37  9 Other income (expense), net  (91)  (27) Income (loss) before provision for income taxes  (1,113)  (2,132)       Provision for income taxes  42  106 Net loss  (1,155)  (2,238)       Net loss per share of common stock, basic and diluted  (0.09)  (0.17)       Shares used in computing net loss per share of common stock, basic and diluted  13,515  13,322    ENVIVIO, INC. AND SUBSIDIARIESConsolidated Balance Sheets(UNAUDITED)        January 31,April 30,  20122012    (in thousands)      ASSETS     Current assets:     Cash and cash equivalents  27,405  72,016 Short-term investments  --   3,284 Accounts receivable, net of allowance for doubtful accounts  8,499  9,516 Inventory  108  80 Prepaid expenses and other current assets  2,456  2,674 Deferred inventory costs, current portion  1,547  330 Total current assets  40,015  87,900 Property and equipment, net  3,016  3,456 Deferred inventory costs, net of current portion  100  66 Other assets  1,447  510Total assets  44,578  91,932      LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities:     Accounts payable  7,035  10,662 Accrued compensation  4,615  3,520 Accrued liabilities  929  1,418 Deferred revenue, current portion  7,257  4,191 Line of credit  1,000  1,000 Total current liabilities  20,836  20,791 Deferred revenue, net of current portion  1,400  1,394 Warrant liability  103  --  Other non-current liabilities  1,163  1,454Total liabilities  23,502  23,639       Convertible preferred stock:  47,764  --  Stockholders' equity (deficit):     Common stock  13  27 Additional paid-in capital  52,955  151,000 Notes receivable - common stock  --   (811) Accumulated other comprehensive loss  (825)  (856) Accumulated deficit  (78,831)  (81,067)Total stockholders' equity (deficit)  (26,688)  68,293Total liabilities and stockholders' equity (deficit)  44,578  91,932    ENVIVIO, INC. AND SUBSIDIARIES Reconciliation of Net Income to Non-GAAP Net Income (UNAUDITED)      Three Months Ended April 30,   (in thousands, except for per share amounts)   2011 2012            Net loss  $ (1,155)  $ (2,238) Income tax expense  $ 42  $ 106 Net loss, before income taxes  $ (1,113)  $ (2,132)       Adjustments:     Stock-based compensation  $ 350  $ 690 Non-GAAP net income, before income taxes  $ (763)  $ (1,442) Non-GAAP tax expense  $ 42  $ 106 Non-GAAP net loss  $ (805)  $ (1,548)             Non-GAAP net loss per share of common stock, basic and diluted  $ (0.06)  $ (0.12) Shares used in computing net loss per share of common stock, basic and diluted  13,515  13,322CONTACT: Envivio Sarah Lum pr@envivio.com +1.650.243.2710 The Blueshirt Group Investor Relations for Envivio Cynthia Hiponia ir@envivio.com +1.650.243.2702