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Share Name | Share Symbol | Market | Type |
---|---|---|---|
(MM) | NASDAQ:MERU | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.62 | 0 | 01:00:00 |
SUNNYVALE, Calif., May 4, 2015 /PRNewswire/ -- Meru Networks, Inc. (NASDAQ: MERU), a leader in intelligent Wi-Fi networking, today announced its financial results for the first quarter ended March 31, 2015.
First Quarter 2015 Financial Results
Total revenues for the first quarter of 2015 were $17.4 million, a decrease of 15% from $20.0 million in the first quarter of 2014. Product revenues for the first quarter of 2015 were $12.9 million, down 18% from $15.8 million reported in the first quarter of 2014.
Net loss as reported in accordance with GAAP was $8.0 million in the first quarter of 2015, or a net loss of ($0.33) per basic and diluted share, compared to a net loss of $8.1 million, or a net loss of ($0.35) per basic and diluted share, for the same period of 2014.
Meru reported a first quarter 2015 non-GAAP net loss of $3.9 million, or ($0.16) loss per basic and diluted share, compared to a non-GAAP net loss of $5.4 million, or ($0.23) loss per basic and diluted share in the first quarter of 2014. Non-GAAP results for the first quarter of 2015 exclude the impact of stock-based compensation expense of $1.8 million, restructuring costs of $0.7 million, and $1.8 million from the impairment of goodwill. Non-GAAP results for the first quarter of 2014 excluded stock-based compensation expense of $1.8 million, restructuring costs, including associated stock-based compensation charges, of $0.7 million, and $0.1 million from the amortization of intangibles.
"Meru achieved revenue and earnings results consistent with our guidance and slightly ahead of analyst consensus for the first quarter of 2015, and restructured our operations by reducing operating costs and creating a flatter, more responsive organization. We've lowered the breakeven point for quarterly sales to approximately $21 to $22 million," said Dr. Bami Bastani, president and CEO. "During the first quarter, we also launched Meru XPress Cloud, a controller-less Wi-Fi solution tailored to the needs of small-to-medium enterprises. We are very pleased with the SDN Excellence Award for Meru Collaborator, an SDN application that integrates with the Microsoft Lync platform enabling Meru Wi-Fi users to optimize the performance and experience of Microsoft Lync over multivendor networks. We continue to work with Deutsche Bank in exploring various strategic options for the Company."
Conference Call Information
Meru will host a conference call for analysts and investors to discuss its 2015 first quarter results today, May 4th, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To join the live call, individuals may do so by dialing (877) 852-2926 for domestic callers and (253) 237-1123 for international callers. The conference ID for the call is 32506132.
The live and archived webcast of the financial results conference call will also be available at the investor relations section of Meru's website at http://investors.merunetworks.com.
About Meru Networks
Meru Networks (NASDAQ: MERU) is a leader in intelligent 802.11ac Wi-Fi solutions delivering uninterrupted user experience for education, healthcare, hospitality and enterprise. The Meru open-standards-based architecture is designed to enable unified management of wired and wireless networks. Its end-to-end application QoS enables enforceable service-level agreements. Meru provides top performance and high capacity in high-density environments. Visit www.merunetworks.com or call (408) 215-5300 for more information.
©2015 Meru Networks. Meru and Meru Networks are registered trademarks and the Meru logo is a trademark of Meru Networks, Inc. in the United States.
Investor contact:
Ed Keaney
Market Street Partners
(415) 445-3238
ir@merunetworks.com
Cautionary Statement Regarding Forward Looking Statements
All statements other than statements of historical facts are statements that can be deemed forward-looking statements, including any statements of expectations or beliefs. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include, among others: business and economic conditions and growth trends in the networking industry, our vertical markets and various geographic regions; competition in the industry; our future capital needs may change; changes in overall information technology spending; failure to develop new products; and those risks and uncertainties described in documents filed with or furnished to the Securities and Exchange Commission ("SEC") by Meru, including under the caption "Risk Factors" in Meru's Quarterly Report on Form 10-K filed with the SEC on February 27, 2015, and any subsequent reports filed with the SEC. All forward-looking statements in this press release are based on information available to Meru as of the date hereof, and Meru assumes no obligation to update these forward-looking statements, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company believes it is appropriate to report certain non-GAAP financial measures.
The Company's non-GAAP financial measures include the adjustments as follows:
The Company's non-GAAP financial measures include the following:
MERU NETWORKS, INC. | |||||
Condensed Consolidated Balance Sheets | |||||
(Unaudited) | |||||
(In thousands) | |||||
March 31, |
December 31, | ||||
2015 |
2014 | ||||
ASSETS |
|||||
CURRENT ASSETS: |
|||||
Cash and cash equivalents |
$ 11,599 |
$ 14,881 | |||
Accounts receivable, net |
6,761 |
11,891 | |||
Inventory |
9,664 |
8,982 | |||
Prepaid expenses and other current assets |
1,400 |
1,502 | |||
Total current assets |
29,424 |
37,256 | |||
Property and equipment, net |
1,633 |
1,879 | |||
Goodwill |
- |
1,658 | |||
Other assets |
696 |
1,937 | |||
TOTAL ASSETS |
$ 31,753 |
$ 42,730 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|||||
CURRENT LIABILITIES: |
|||||
Accounts payable |
$ 5,656 |
$ 7,902 | |||
Accrued liabilities |
9,573 |
10,223 | |||
Long-term debt, current portion |
1,784 |
2,803 | |||
Deferred revenue, current portion |
12,348 |
12,781 | |||
Total current liabilities |
29,361 |
33,709 | |||
Deferred revenue, net of current portion |
6,829 |
6,886 | |||
Other liabilities |
28 |
38 | |||
Total liabilities |
36,218 |
40,633 | |||
STOCKHOLDERS' EQUITY (DEFICIT): |
|||||
Preferred stock |
- |
- | |||
Common stock |
12 |
12 | |||
Additional paid-in capital |
290,465 |
289,023 | |||
Accumulated other comprehensive loss |
(655) |
(688) | |||
Accumulated deficit |
(294,287) |
(286,250) | |||
Total stockholders' equity (deficit) |
(4,465) |
2,097 | |||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
$ 31,753 |
$ 42,730 | |||
MERU NETWORKS, INC. | |||
Condensed Consolidated Statements of Operations | |||
(Unaudited) | |||
(In thousands, except for share and per share amounts) | |||
Three months ended | |||
March 31, | |||
2015 |
2014 | ||
REVENUES: |
|||
Products |
$ 12,917 |
$ 15,833 | |
Support and services |
4,499 |
4,767 | |
Total revenues |
17,416 |
20,600 | |
COSTS OF REVENUES: |
|||
Products |
5,514 |
5,875 | |
Support and services |
1,524 |
1,902 | |
Total costs of revenues * |
7,038 |
7,777 | |
Gross margin |
10,378 |
12,823 | |
OPERATING EXPENSES: |
|||
Research and development * |
4,294 |
5,452 | |
Sales and marketing * |
9,166 |
11,629 | |
General and administrative * |
2,978 |
3,298 | |
Impairment of goodwill |
1,658 |
- | |
Total operating expenses |
18,096 |
20,379 | |
Loss from operations |
(7,718) |
(7,556) | |
Interest expense, net * |
(164) |
(378) | |
Other expense, net |
(52) |
(16) | |
Loss before provision for income taxes |
(7,934) |
(7,950) | |
Provision for income taxes |
103 |
112 | |
Net loss |
$ (8,037) |
$ (8,062) | |
Net loss per share of common stock, basic and diluted |
$ (0.33) |
$ (0.35) | |
Shares used in computing net loss per share of common stock, basic and diluted |
24,248,016 |
23,069,260 | |
*Includes stock-based compensation expense (1)as follows: |
|||
Costs of revenues |
$ 117 |
$ 109 | |
Research and development |
445 |
338 | |
Sales and marketing |
1,032 |
811 | |
General and administrative |
542 |
715 | |
$ 2,136 |
$ 1,973 | ||
(1) This table includes $346,000 and $147,000 of stock-based compensation expense related to restructuring in the quarters ended March 31, 2015 and 2014, respectively. |
|||
*Includes restructuring costs(2)as follows: |
|||
Costs of revenues |
$ 9 |
$ - | |
Research and development |
69 |
43 | |
Sales and marketing |
263 |
405 | |
General and administrative |
21 |
140 | |
$ 362 |
$ 588 | ||
(2)This table excludes $346,000 and $147,000 of stock-based compensation related to restructuring in the quarter ended March 31, 2015 and 2014, respectively. |
|||
*Includes amortization of acquisition-related intangible assets as follows: |
|||
Costs of revenues |
$ - |
$ 52 | |
*Includes amortization of common stock warrant issued |
|||
in connection with debt financing as follows: |
|||
Interest expense, net |
$ 10 |
$ 29 |
MERU NETWORKS, INC. | ||||
GAAP to Non-GAAP Reconciliation | ||||
(Unaudited) | ||||
(In thousands, except share and per share amounts) | ||||
Three months ended | ||||
March 31, | ||||
2015 |
2014 | |||
GAAP net loss |
$ (8,037) |
$ (8,062) | ||
. |
||||
Plus: |
||||
a) Stock-based compensation |
1,790 |
1,826 | ||
b) Stock-based compensation associated with restructuring |
346 |
147 | ||
c) Restructuring costs |
362 |
588 | ||
d) Amortization of acquisition-related intangible assets |
- |
- | ||
e) Amortization of common stock warrant issued in connection with debt financing |
10 |
29 | ||
f) Impairment of goodwill |
1,658 |
- | ||
Non-GAAP net loss |
$ (3,871) |
$ (5,472) | ||
GAAP net loss per share of common stock, basic and diluted |
(0.33) |
(0.35) | ||
Plus: |
||||
a) Stock-based compensation |
0.07 |
0.08 | ||
b) Stock-based compensation associated with restructuring |
0.01 |
0.01 | ||
c) Restructuring costs |
0.02 |
0.03 | ||
d) Amortization of acquisition-related intangible assets |
- |
- | ||
e) Amortization of common stock warrant issued in connection with debt financing |
- |
- | ||
f) Impairment of goodwill |
0.07 |
- | ||
Non-GAAP net loss per share of common stock, basic and diluted |
$ (0.16) |
$ (0.24) | ||
Shares used in computing basic and diluted non-GAAP net loss |
||||
per share of common stock |
24,248,016 |
23,069,260 | ||
GAAP gross margin |
$ 10,378 |
$ 12,823 | ||
Plus: |
||||
Stock-based compensation |
117 |
109 | ||
Restructuring costs |
9 |
- | ||
Amortization of acquisition-related intangible assets |
- |
52 | ||
Non-GAAP gross margin |
$ 10,504 |
$ 12,984 | ||
GAAP loss from operations |
$ (7,718) |
$ (7,556) | ||
Plus: |
||||
Stock-based compensation |
1,790 |
1,826 | ||
Stock-based compensation associated with restructuring |
346 |
147 | ||
Restructuring costs |
362 |
588 | ||
Amortization of acquisition-related intangible assets |
- |
- | ||
Impairment of goodwill |
1,658 |
- | ||
Non-GAAP loss from operations |
$ (3,562) |
$ (4,995) |
MERU NETWORKS, INC. | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
(In thousands) | |||||||
Three months ended | |||||||
March 31, | |||||||
2015 |
2014 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|||||||
Net loss |
$ (8,037) |
$ (8,062) | |||||
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||
Depreciation and amortization |
327 |
416 | |||||
Stock-based compensation |
2,136 |
1,973 | |||||
Impairment of goodwill |
1,658 |
- | |||||
Accrued interest on long-term debt |
103 |
214 | |||||
Amortization of issuance costs |
15 |
41 | |||||
Net provision for bad debt |
112 |
35 | |||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable, net |
5,018 |
6,825 | |||||
Inventory |
(681) |
(707) | |||||
Prepaid expenses and other assets |
105 |
81 | |||||
Accounts payable |
(2,246) |
(1,783) | |||||
Accrued liabilities |
(1,134) |
(2,121) | |||||
Deferred revenue |
(490) |
(692) | |||||
Net cash used in operating activities |
(3,114) |
(3,780) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||
Purchases of property and equipment |
(69) |
(333) | |||||
Proceeds from sale of investment |
1,250 |
- | |||||
Net cash provided by (used in) investing activities |
1,181 |
(333) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||
Proceeds from exercise of stock options |
17 |
164 | |||||
Taxes paid related to net share settlement of equity awards |
(371) |
(406) | |||||
Repayment of long-term debt |
(1,034) |
(918) | |||||
Net cash used in financing activities |
(1,388) |
(1,160) | |||||
Effect of exchange rate changes on cash and cash equivalents |
39 |
(1) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(3,282) |
(5,274) | |||||
CASH AND CASH EQUIVALENTS -- Beginning of period |
14,881 |
30,938 | |||||
CASH AND CASH EQUIVALENTS -- End of period |
$ 11,599 |
$ 25,664 |
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/meru-networks-reports-first-quarter-2015-financial-results-300077028.html
SOURCE Meru Networks, Inc.
Copyright 2015 PR Newswire
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