[November 08, 2016] |
|
Echelon Reports Third Quarter 2016 Results
Echelon Corporation (NASDAQ:ELON) today announced financial results for
the third quarter ended September 30, 2016.
"Revenue from our connected lighting business increased for the third
consecutive quarter while we maintained our operating expenses at
historical lows," said Ron Sege, Chairman and CEO of Echelon. "This
quarter we introduced exciting new products that offer a wider range of
sustainability, security and livability applications for making cities
and enterprises smart. According to an independent study released in
October by the Northeast Group, LLC, Echelon now sits among the top
three market leaders in terms of deployed smart streetlight systems
worldwide."
Financial Highlights
-
Revenues: $8.2 million
-
Operating expenses $5.7 million
-
GAAP Net Loss: $1.3 million; GAAP Net Loss per Share:
$0.29
-
Non-GAAP Net Loss: $1.1 million; Non-GAAP Net Loss per Share:
$0.25
-
Cash & investments of $23.7 million
Revenues were $8.2 million in the third quarter, down from $10.0 million
in the same period of 2015 and up from $8.1 million in the second
quarter of 2016. The increase in revenues from the second quarter of
2016 is attributable to our ongoing focus on growing our lighting
business. As expected, our embedded systems business is continuing its
long-term decline, exacerbated year-on-year by the reduction in
shipments to Enel.
GAAP gross margin in the third quarter was 54.7% compared with 56.2% in
the third quarter of 2015 and 58.4% in the second quarter of 2016. The
fluctuations in gross margin were predominantly due to product mix as
well as overall revenue levels and certain one-time costs incurred in
the third quarter of 2016.
Total operating expenses for the quarter were $5.7 million, down from
$6.8 million in the third quarter last year and flat when compared to
the prior quarter. The annual decrease was primarily due to our ongoing
efforts to manage costs while investing in our strategy to grow our
lighting business.
GAAP net loss for the third quarter was $1.3 million, or $0.29 per
share, compared with a net loss of $1.0 million, or $0.24 per share in
the same period last year, and a net loss of $571,000, or $0.13 per
share, in the previous quarter. The increase in our losses were due
primarily to foreign currency swings quarter-to-quarter.
Non-GAAP net loss for the third quarter was $1.1 million, or $0.25 per
share, compared with non-GAAP net loss of $891,000, or $0.20 per share
for the third quarter of 2015, and $586,000, or $0.13 per share, in the
previous quarter.
Included in both our GAAP and non-GAAP results for the third quarter of
2016 were foreign currency translation losses of $74,000. This compares
to foreign currency translation gains of $170,000 in the third quarter
of 2015 and $486,000 in the second quarter of 2016. These foreign
currency translation gains and losses are attributable to our foreign
currency denominated short-term intercompany balances.
Customer Highlights
The following customer activity reflects the interest we are seeing in
the marketplace for our connected outdoor lighting and embedded
solutions. In addition to energy savings, customers are beginning to
express interest in the safety- and comfort-enhancing aspects of our
platform.
-
In an interesting safety application, a large Washington State
municipality is using a Lumewave by Echelon® connected
lighting control system to centrally program school zone safety
flashers based on the changing requirements of school schedules. This
system replaces expensive and near-obsolete 2G cellular modem
technology with a long-term solution that has no recurring cost. With
the Echelon Central Management System (CMS) and gateways now installed
to support this application, the city has laid the foundation for its
planned multi-year roll out of 35,000 LED street lights. Echelon's
LumInsight® 2 CMS will provide calendar and permission-based
scheduling not currently available from its existing school zone
flasher vendors.
-
The installation throughout the city of Cambridge, MA continued
its expansion and is close to being fully online with its 7,000+ LED
fixtures using the Lumewave by Echelon adaptive control system.
We believe Cambridge is the first city in the U.S. to have
"border-to-border" intelligent lighting installed and operating. The
city is considering expanding its system to include both the city
parks with dimming features as well as crosswalk flashers to allow for
customized schedules to meet citizen and safety needs.
-
Phase 2 of the Bellingham, WA city-wide deployment of 3,615
streetlights with Echelon's wireless technology on roadway lights and
'invisible' power line communication on highly-visible decorative
luminaries was ordered and installed in the third quarter. The
Bellingham LED conversion program is projected to cut energy
consumption from streetlights by half, reducing approximately 2
million pounds of CO2 output annually. This directly supports the
city's Climate Action Plan goal of reducing greenhouse gas emissions
locally by 70% by the year 2020.
-
The city of Bloemfontein, South Africa, has embarked on a smart
city initiative to install 18,000 luminaries to upgrade its
streetlight infrastructure over the next three years. In the first
phase completed earlier this year, 3,000 luminaries were installed by
Echelon's partner, MAT Co., Ltd. using outdoor lighting controllers
based on Echelon power line technologies along with Echelon's
SmartServer® gateways. This initial project expanded to include
another 1,000 lights and SmartServers, which were installed during the
third quarter.
-
At a Pacific Northwest military base, Echelon's partner
received formal notice from Bonneville Power Administration to proceed
with the contract to replace approximately 2,400 outdoor lighting
fixtures with LEDs, including Lumewave by Echelon wireless
controllers and approximately 400 Lumewave by Echelon motion
sensors. The combination of the controllers with the motion sensors
allows the military base to achieve over 80% savings while increasing
security and reducing maintenance.
-
The Port of Seattle, which manages the physical port, marinas
and Sea-Tac airport, among other facilities, completed its lighting
installation at the Shilshole Bay Marina during the quarter. The port
also placed a follow-on order for Lumewave by Echelon's
lighting controllers and microwave occupancy sensors which is
currently being installed at the Fisherman's Terminal property. The
port also plans to expand the system to include its Salmon Bay
Terminal and Jack Block Park properties next year.
-
Across a dozen U.S. auto dealerships, Echelon's outdoor
lighting controls were rolled out in new and expanded deployments in
the third quarter. Applications include energy savings, theft
prevention and merchandise display enhancement. Echelon continues to
focus on national, independent and large automotive dealerships.
-
Several municipalities in the U.S., Canada, Vietnam, Mexico,
Uruguay and Argentina, among others, have selected Echelon
technology for pilot projects with applications ranging from fixture
maintenance to highway direction of travel. While these pilots are not
material in terms of short-term revenues, we believe they improve the
likelihood of future business.
-
In the embedded business, earlier this year we partnered with a
gas pump manufacturer and won a new design to upgrade credit card
readers in gas station fuel dispensers. This quarter we doubled our
business with this customer due to the implementation of the EMV
Liability Shift regulation, which requires gas station merchants to
install chip readers in their gas dispensers by October 2017.
-
Also in the embedded business, we received an order for multiple IzoT®
Net and LNS DDE servers from an existing customer. This was the result
of our ability to support the latest Microsoft operating systems in
large corporate office buildings.
-
A wireless asset management systems company for industrial trucks,
rental vehicles, and transportation assets has developed a new design
for a Radio-Frequency Identification (RFID) tracking device using
Echelon's Neuron® 5000 chip. Echelon replaced the incumbent due to our
next generation microcontroller's superior performance, lower cost and
small form factor.
Product Highlights
-
The new CLP 4000 sensor-compatible lighting controller - enables
smarter, safer cities
-
This new product extends Echelon's multi-application platform
enabling high-value safety and comfort features while providing
energy and maintenance cost savings. Combining LEDs with advanced
controllers enables outdoor lighting to play a strategic role in
making cities safer, more comfortable and more efficient. This
next-generation controller includes faster and smarter
communication technology, multiple lighting control options and
native support for advanced sensors. The CLP 4000 is currently
being sampled for multiple smart city projects. With this new
product, for example, city officials can integrate dimming and
white-tuning capabilities with emergency call box systems to
assist first responders by improving visibility, quickly and
dynamically.
-
The New U60 Network Interface Module - easy network connectivity
for any controller or gateway
-
This new member of the U60 module family of products makes it
easier for controller and gateway manufacturers to add LON®
network connectivity to their products without investing valuable
R&D resources to do a chip-level design. The U60 module has
already been designed into multiple OEM products.
-
SmartServer 2.2 - first-of-its-kind gateway for buildings,
lighting, and other Internet of Things (IoT) applications
-
This new SmartServer is a platform for integrating a wide range of
applications with power line meshing that enables outdoor power
line-based lighting controls to be installed in large geographic
areas with a single controller. It is an industry-leading
converged controller and gateway for building automation, lighting
controls, and IoT applications and supports multiple standard
protocols including LON, BACnet, and Modbus. The SmartServer
offers customers a broader selection of devices that can be easily
integrated into and managed by one head-end interface thereby
reducing the installed cost of outdoor lighting systems.
-
Multi-protocol, multi-technology gateways
-
The BACnet Gateway Interface for Lumewave by Echelon
wireless lighting control systems is now being deployed in
multiple customer trials from corporate to higher education
campuses. This two-way BACnet interface allows existing Building
Management and Automation systems to communicate with and
coordinate control of the lighting system for facility-wide
integrated energy management and operations. The BACnet Gateway
Interface seamlessly integrates to the LumInsight Desktop
CMS and is a key part of Echelon's efforts to enable the
convergence of building and lighting.
Proof of Concepts
Echelon is currently working with industry partners and customers on
some interesting PoCs that take advantage of the high degree of
controllability of LED lighting. These include:
-
Intelligent and on-demand white tuning that varies the color
temperature of outdoor lights from a warm yellow 2,700 Kelvin to a
cool blue 5,500 Kelvin
-
Traffic-adaptive roadway lighting that adjusts light levels on the
road according to actual or predicted traffic
-
Weather-driven lighting schedules that can vary light levels according
to real-time weather predictions
We hope to discuss more details of these concepts in coming quarters.
Sales & Marketing Highlights
-
As noted by the increase in lighting revenue for the third consecutive
quarter, our upgraded and experienced lighting sales team is making
solid progress. Requests for proposals totaling over 360,000 street
lights were received in the third quarter alone. Discussions are
underway with approximately 20 U.S. and international manufacturers of
LED OEM fixtures to establish potential partnerships with Echelon.
Additionally, Echelon is expanding its presence with Energy Savings
Companies (ESCOs).
-
We recently added Glenn International as our new sales representative
agency for Central America and the Caribbean. Glenn is the region's
leading supplier of electrical, lighting and telecom equipment. We
also welcomed MRD Soluciones de Iluminacion to represent Echelon in
Argentina and Uruguay. With more than 10 years of experience
representing LED fixtures and indoor controls, they also bring over 25
years of experience in lighting in the South America market.
-
In the embedded IIoT business, we recently announced that ABBA Logic,
a supplier to security integrators, has introduced a revolutionary
upgrade to its line of access control products based on Echelon's 6050
processor. ABBA Logic can now provide security integrators with
cost-effective, expandable IP network-based solutions that can be used
with a variety of software front ends without a large service
commitment. Applications include correctional facilities, airports and
schools that require high levels of secure access.
Industry Highlights
-
In a recent
global study of the LED and smart networked streetlighting market
by the Northeast Group, LLC, Echelon ranked among the top three
leaders of smart connectivity deployments, ahead of such household
names as GE and Philips. The report also noted that Echelon captured
the number one position in Asia-Pacific. The study projects that LED
and smart streetlights will reach 89% and 42% of the total streetlight
market, respectively, by 2026. To capitalize on this trend, the Lumewave
by Echelon platform is architected to allow cities to integrate a
growing range of IoT applications. This should enable municipal
systems such as crosswalk flashers, emergency call boxes, traffic
analysis and human-centric street lighting to work together seamlessly
while improving public safety and creating a more comfortable
environment.
Outlook
Echelon's guidance for the fourth quarter of 2016 is as follows:
-
Total revenues are expected to be $7.8 million to $8.2 million
-
Gross margin is expected to be in a range of 55% to 57%
-
Operating expenses are expected to be in a range of $5.8 million to
$6.0 million
-
GAAP loss per share is expected to be between $0.27 and $0.39, based
on 4.4 million fully diluted weighted average shares outstanding
-
Excluding expected non-cash equity compensation charges of $0.09 per
share, non-GAAP loss per share is expected to be between $0.18 and
$0.30
About Echelon Corporation
For 25 years Echelon (NASDAQ: ELON) has pioneered the development of
open-standard networking platforms for connecting, monitoring and
controlling devices in commercial and industrial applications. With more
than 110 million devices installed worldwide, Echelon's proven, scalable
solutions host a range of applications enabling customers to reduce
energy and operational costs, improve safety and comfort, and create
efficiencies through optimizing physical systems. Echelon is focusing
today on two IoT (Internet of Things) market areas: Creating smart
cities and smart enterprises through connected outdoor lighting systems,
and enabling device makers to bring connected products to market faster
via a range of IoT-optimized embedded systems. More information about
Echelon can be found at www.echelon.com.
Echelon, Echelon logo, LumInsight, Lumewave, Lumewave by Echelon,
SmartServer, Neuron and LON are trademarks of Echelon Corporation that
may be registered in the United States and other countries. Other
product or service names mentioned herein are the trademarks of their
respective owners.
Use of Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared
and presented in accordance with U.S. generally accepted accounting
principles, or GAAP, we have provided in this press release certain
measures that have not been prepared in accordance with GAAP. These
non-GAAP financial measures consist of (i) non-GAAP net income, which is
defined as net income less stock-based compensation expense, adjustments
to contingent consideration, lease termination charges, and income tax
effect of reconciling items, and (ii) non-GAAP net income per share,
which is defined as non-GAAP net income divided by the fully diluted
weighted-average number of shares outstanding.
We use these non-GAAP financial measures internally to analyze our
financial results and trends, prepare and approve our annual budget, and
develop short- and long-term operating plans. We believe these non-GAAP
financial measures are useful to investors as an additional tool to
evaluate ongoing operating results and trends. However, it is important
to note that these non-GAAP financial measures are not based on any
standardized methodology and are not necessarily comparable to similar
measures used by other companies. In addition, stock-based compensation
expense and other excluded items may have a material impact on our
reported financial results. As a result, these non-GAAP financial
measures should not be considered in isolation or as a substitute for
comparable financial information prepared in accordance with GAAP and
should be read only in conjunction with our consolidated financial
statements prepared in accordance with GAAP. A reconciliation of our
non-GAAP financial measures to their most directly comparable GAAP
financial measures has been provided in the financial statement tables
included in this press release, and investors are encouraged to review
the reconciliation.
Risk Factors Regarding Forward-Looking Statements
This press release contains "forward-looking" statements within the
meaning of Section 21A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and is
subject to the safe harbor created thereby. Forward looking statements
include, without limitation, statements regarding our future financial
and operating performance, including our guidance for the fourth quarter
of 2016, opportunities for future growth, the size of prospective
markets, and our business strategy, plans and objectives. Actual results
could differ materially from those projected in our forward-looking
statements as a result of a number of risks and uncertainties,
including, but not limited to, risks associated with the continued
development and growth of markets for Echelon's products; failure to
achieve revenue estimates or maintain expense controls; changes in our
headcount growth or the fair market value of our common stock, either of
which could impact our ability to estimate our future stock-based
compensation expense; circumstances that may delay the time frame for
achieving our business outlook; our ability to attract and retain
talent; the risk of competition that may arise as the market develops or
through consolidations in the industry; the timely development of our
products and services and the ability of those products and services to
perform as designed and meet customer expectations; the deployment and
success of the pilot programs and proof of concepts, including the
extent to which they result in follow-on orders; the risk that we do not
meet expected or required shipment, delivery or acceptance schedules for
our products, which could cause us to incur penalties or additional
expenses or delay revenue recognition as a result; and other risks
identified in the reports we file with the Securities and Exchange
Commission, including our most recent Annual Report on Form 10-K and
Quarterly Report on Form 10-Q.
The financial information presented in this release reflects estimates
based on information that is available to us at this time. We undertake
no obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise.
The condensed consolidated financial statements that follow should be
read in conjunction with the notes set forth in our Quarterly Report on
Form 10-Q when filed with the Securities and Exchange Commission.
|
|
|
|
|
ECHELON CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In
thousands) (Unaudited)
|
|
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
ASSETS
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
10,487
|
|
|
$
|
7,691
|
Restricted investments
|
|
1,250
|
|
|
1,401
|
Short-term investments
|
|
11,990
|
|
|
16,978
|
Accounts receivable, net
|
|
3,709
|
|
|
4,030
|
Inventories
|
|
2,609
|
|
|
2,893
|
Deferred cost of revenues
|
|
1,142
|
|
|
1,122
|
Other current assets
|
|
674
|
|
|
1,109
|
Total current assets
|
|
31,861
|
|
|
35,224
|
Property and equipment, net
|
|
475
|
|
|
595
|
Other long-term assets
|
|
2,126
|
|
|
2,227
|
|
|
$
|
34,462
|
|
|
$
|
38,046
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
2,137
|
|
|
$
|
2,267
|
Accrued liabilities
|
|
1,827
|
|
|
2,885
|
Deferred revenues
|
|
3,733
|
|
|
3,359
|
Total current liabilities
|
|
7,697
|
|
|
8,511
|
Long-term liabilities
|
|
730
|
|
|
614
|
Total stockholders' equity
|
|
26,035
|
|
|
28,921
|
|
|
$
|
34,462
|
|
|
$
|
38,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECHELON CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts) (Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
8,179
|
|
|
$
|
9,983
|
|
|
$
|
24,887
|
|
|
$
|
29,214
|
|
Cost of revenues (1)
|
|
3,701
|
|
|
4,370
|
|
|
10,892
|
|
|
12,435
|
|
Gross profit
|
|
4,478
|
|
|
5,613
|
|
|
13,995
|
|
|
16,779
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Product development (1)
|
|
2,034
|
|
|
2,454
|
|
|
6,160
|
|
|
7,406
|
|
Sales and marketing (1)
|
|
1,574
|
|
|
1,848
|
|
|
4,512
|
|
|
6,230
|
|
General and administrative (1)
|
|
2,092
|
|
|
2,547
|
|
|
6,310
|
|
|
7,555
|
|
Lease termination charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,337
|
|
Total operating expenses
|
|
5,700
|
|
|
6,849
|
|
|
16,982
|
|
|
24,528
|
|
Loss from operations
|
|
(1,222
|
)
|
|
(1,236
|
)
|
|
(2,987
|
)
|
|
(7,749
|
)
|
Interest and other income (expense), net
|
|
(57
|
)
|
|
184
|
|
|
241
|
|
|
564
|
|
Interest expense on lease financing obligations
|
|
-
|
|
|
(5
|
)
|
|
-
|
|
|
(385
|
)
|
Loss before provision for income taxes
|
|
(1,279
|
)
|
|
(1,057
|
)
|
|
(2,746
|
)
|
|
(7,570
|
)
|
Income tax expense
|
|
23
|
|
|
(10
|
)
|
|
80
|
|
|
64
|
|
Net loss
|
|
$
|
(1,302
|
)
|
|
$
|
(1,047
|
)
|
|
$
|
(2,826
|
)
|
|
(7,634
|
)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share
|
|
$
|
(0.29
|
)
|
|
$
|
(0.24
|
)
|
|
$
|
(0.64
|
)
|
|
$
|
(1.73
|
)
|
|
|
|
|
|
|
|
|
|
Shares used in computing net loss per share:
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
4,431
|
|
|
4,413
|
|
|
4,423
|
|
|
4,407
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include stock-based compensation costs as follows:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
7
|
|
|
$
|
(34
|
)
|
|
$
|
(39
|
)
|
|
$
|
(102
|
)
|
Product development
|
|
74
|
|
|
94
|
|
|
62
|
|
|
229
|
|
Sales and marketing
|
|
53
|
|
|
(19
|
)
|
|
(68
|
)
|
|
(109
|
)
|
General and administrative
|
|
54
|
|
|
115
|
|
|
295
|
|
|
91
|
|
Total stock-based compensation expenses
|
|
$
|
188
|
|
|
$
|
156
|
|
|
$
|
250
|
|
|
$
|
109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECHELON CORPORATION RECONCILIATION OF NON-GAAP TO GAAP RESULTS Excluding
adjustments itemized below (In thousands, except per share
amounts) (Unaudited)
|
An itemized reconciliation between net earnings on a GAAP basis
and non-GAAP basis is as follows:
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
GAAP net loss
|
|
$
|
(1,302
|
)
|
|
$
|
(1,047
|
)
|
|
$
|
(2,826
|
)
|
|
$
|
(7,634
|
)
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
188
|
|
|
156
|
|
|
250
|
|
|
109
|
|
Adjustment to contingent consideration
|
|
-
|
|
|
-
|
|
|
(318
|
)
|
|
-
|
|
Lease termination charges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,337
|
|
Total non-GAAP adjustments to earnings from operations
|
|
188
|
|
|
156
|
|
|
(68
|
)
|
|
3,446
|
|
Income tax effect of reconciling items
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Non-GAAP net loss
|
|
$
|
(1,114
|
)
|
|
$
|
(891
|
)
|
|
$
|
(2,894
|
)
|
|
$
|
(4,188
|
)
|
Non-GAAP net loss per share:
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
(0.25
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(0.65
|
)
|
|
$
|
(0.95
|
)
|
Shares used in computing net loss per share:
|
|
|
|
|
|
|
|
|
Diluted
|
|
4,431
|
|
|
4,413
|
|
|
4,423
|
|
|
4,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ECHELON CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands) (Unaudited)
|
|
|
|
|
|
Nine Months Ended
|
|
|
September 30,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
Cash flows provided by (used in) operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(2,826
|
)
|
|
$
|
(7,634
|
)
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
377
|
|
|
1,413
|
|
Reduction in allowance for doubtful accounts
|
|
(1
|
)
|
|
(17
|
)
|
Lease termination charges
|
|
-
|
|
|
3,337
|
|
Loss on disposal of and write down of property, equipment, and other
|
|
-
|
|
|
53
|
|
Increase in accrued investment income
|
|
(30
|
)
|
|
(23
|
)
|
Stock-based compensation
|
|
250
|
|
|
109
|
|
Adjustment to contingent consideration
|
|
(318
|
)
|
|
(98
|
)
|
Change in operating assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
322
|
|
|
(19
|
)
|
Inventories
|
|
285
|
|
|
630
|
|
Deferred cost of revenues
|
|
(35
|
)
|
|
190
|
|
Other current assets
|
|
435
|
|
|
(418
|
)
|
Accounts payable
|
|
(130
|
)
|
|
(1,509
|
)
|
Accrued liabilities
|
|
(965
|
)
|
|
(55
|
)
|
Deferred revenues
|
|
364
|
|
|
6
|
|
Deferred rent
|
|
93
|
|
|
(154
|
)
|
Net cash used in operating activities
|
|
(2,179
|
)
|
|
(4,189
|
)
|
|
|
|
|
|
Cash flows provided by (used in) investing activities:
|
|
|
|
|
Purchases of available-for-sale short-term investments
|
|
(17,972
|
)
|
|
(7,984
|
)
|
Proceeds from maturities and sales of available-for-sale short-term
investments
|
|
23,155
|
|
|
20,852
|
|
Change in other long-term assets
|
|
(63
|
)
|
|
(793
|
)
|
Capital expenditures
|
|
(84
|
)
|
|
(83
|
)
|
Net cash provided by investing activities
|
|
5,036
|
|
|
11,992
|
|
|
|
|
|
|
Cash flows provided by (used in) financing activities:
|
|
|
|
|
Principal payments of lease financing obligations
|
|
-
|
|
|
(11,147
|
)
|
Repurchase of common stock from employees for payment of taxes on
vesting of restricted stock units and upon exercise of stock options
|
|
(42
|
)
|
|
(152
|
)
|
Net cash used in financing activities
|
|
(42
|
)
|
|
(11,299
|
)
|
|
|
|
|
|
Effect of exchange rates on cash:
|
|
(19
|
)
|
|
(639
|
)
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
2,796
|
|
|
(4,135
|
)
|
Cash and cash equivalents:
|
|
|
|
|
Beginning of period
|
|
7,691
|
|
|
13,340
|
|
End of period
|
|
$
|
10,487
|
|
|
$
|
9,205
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161108006162/en/
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