Attached files
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| 8-K - 8-K - Violin Memory Inc | d306352d8k.htm |
Exhibit 99.1
VIOLIN MEMORY, INC.
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
| October 31, 2016 |
January 31, 2016 |
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| (Unaudited) | ||||||||
| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 9,305 | $ | 23,921 | ||||
| Restricted cash |
— | 10,000 | ||||||
| Short-term investments |
2,452 | 42,058 | ||||||
| Accounts receivable, net |
3,669 | 5,308 | ||||||
| Inventory |
9,749 | 12,001 | ||||||
| Other current assets |
1,642 | 4,170 | ||||||
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| Total current assets |
26,817 | 97,458 | ||||||
| Property and equipment, net |
6,873 | 9,322 | ||||||
| Other assets |
5,151 | 6,067 | ||||||
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| $ | 38,841 | $ | 112,847 | |||||
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| Liabilities and Stockholders’ Deficit |
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| Current liabilities: |
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| Line of credit |
$ | — | $ | 13,398 | ||||
| Accounts payable |
3,418 | 3,747 | ||||||
| Accrued liabilities |
8,374 | 13,570 | ||||||
| Deferred revenue |
9,938 | 13,006 | ||||||
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| Total current liabilities |
21,730 | 43,721 | ||||||
| Convertible senior notes, net |
118,369 | 117,464 | ||||||
| Deferred revenue |
4,368 | 6,239 | ||||||
| Long-term liabilities |
— | 275 | ||||||
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| Total liabilities |
144,467 | 167,699 | ||||||
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| Stockholders’ deficit: |
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| Preferred stock, $0.0001 par value, 10,000 shares authorized as of October 31, 2016; no shares issued and outstanding as of October 31, 2016 and January 31, 2016 |
— | — | ||||||
| Common stock, $0.001 par value, 250,000 shares authorized as of October 31, 2016; 25,258 and 24,660 shares issued and outstanding as of October 31, 2016 and January 31, 2016, respectively |
2 | 10 | ||||||
| Additional paid-in capital |
514,742 | 505,274 | ||||||
| Accumulated other comprehensive income |
563 | 456 | ||||||
| Accumulated deficit |
(620,933 | ) | (560,592 | ) | ||||
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| Total stockholders’ deficit |
(105,626 | ) | (54,852 | ) | ||||
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| $ | 38,841 | $ | 112,847 | |||||
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VIOLIN MEMORY, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
| Three Months Ended October 31, |
Nine Months Ended October 31, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Revenue: |
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| Product revenue |
$ | 1,597 | $ | 6,326 | $ | 7,817 | $ | 22,996 | ||||||||
| Service revenue |
5,425 | 6,213 | 16,421 | 16,947 | ||||||||||||
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| Total revenue |
7,022 | 12,539 | 24,238 | 39,943 | ||||||||||||
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| Cost of revenue: |
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| Cost of product revenue (1) |
2,957 | 3,383 | 10,843 | 13,485 | ||||||||||||
| Cost of service revenue (1) |
2,344 | 2,785 | 7,591 | 8,337 | ||||||||||||
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| Total cost of revenue |
5,301 | 6,168 | 18,434 | 21,822 | ||||||||||||
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| Gross profit |
1,721 | 6,371 | 5,804 | 18,121 | ||||||||||||
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| Operating expenses: |
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| Sales and marketing (1) |
6,173 | 14,049 | 22,721 | 41,144 | ||||||||||||
| Research and development (1) |
7,863 | 10,110 | 26,694 | 32,216 | ||||||||||||
| General and administrative (1) |
2,645 | 3,456 | 9,293 | 13,315 | ||||||||||||
| Restructuring charges |
980 | — | 2,450 | — | ||||||||||||
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| Total operating expenses |
17,661 | 27,615 | 61,158 | 86,675 | ||||||||||||
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| Loss from operations |
(15,940 | ) | (21,244 | ) | (55,354 | ) | (68,554 | ) | ||||||||
| Other income (expense), net |
(56 | ) | 126 | (364 | ) | 79 | ||||||||||
| Interest and other financing expense |
(1,596 | ) | (1,649 | ) | (4,569 | ) | (5,093 | ) | ||||||||
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| Loss before income taxes |
(17,592 | ) | (22,767 | ) | (60,287 | ) | (73,568 | ) | ||||||||
| Income taxes |
14 | (98 | ) | 54 | (15 | ) | ||||||||||
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| Net loss |
$ | (17,606 | ) | $ | (22,669 | ) | $ | (60,341 | ) | $ | (73,553 | ) | ||||
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| Net loss per share of common stock, basic and diluted |
$ | (0.70 | ) | $ | (0.93 | ) | $ | (2.41 | ) | $ | (3.05 | ) | ||||
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| Shares used in computing net loss per share of common stock, basic and diluted |
25,207 | 24,389 | 25,015 | 24,138 | ||||||||||||
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| (1) Includes stock-based compensation expense as follows: |
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| Cost of product revenue |
$ | 22 | $ | 233 | $ | 56 | $ | 753 | ||||||||
| Cost of service revenue |
112 | 383 | 466 | 1,052 | ||||||||||||
| Sales and marketing |
363 | 785 | 1,673 | 3,066 | ||||||||||||
| Research and development |
904 | 1,582 | 4,245 | 5,537 | ||||||||||||
| General and administrative |
808 | 1,052 | 2,938 | 4,846 | ||||||||||||
VIOLIN MEMORY, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
| Nine Months Ended October 31, |
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| 2016 | 2015 | |||||||
| (Unaudited) | ||||||||
| Cash flows from operating activities: |
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| Net loss |
$ | (60,341 | ) | $ | (73,553 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation and amortization |
6,076 | 6,655 | ||||||
| Accretion of debt issuance costs to interest expense |
1,013 | 1,287 | ||||||
| Loss on disposal of property and equipment |
99 | — | ||||||
| Provision for excess and obsolete inventory |
2,940 | — | ||||||
| Stock-based compensation |
9,373 | 15,254 | ||||||
| Changes in operating assets and liabilities, net: |
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| Accounts receivable |
1,639 | 5,568 | ||||||
| Inventory |
(2,670 | ) | (1,800 | ) | ||||
| Other assets |
2,519 | 911 | ||||||
| Accounts payable |
126 | (5,313 | ) | |||||
| Accrued liabilities |
(5,471 | ) | (5,131 | ) | ||||
| Deferred revenue |
(4,939 | ) | (3,818 | ) | ||||
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| Net cash used in operating activities |
(49,636 | ) | (59,940 | ) | ||||
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| Cash flows from investing activities: |
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| Purchase of property and equipment |
(1,382 | ) | (5,451 | ) | ||||
| Decrease (increase) in restricted cash |
10,000 | (7,700 | ) | |||||
| Purchase of investments |
— | (49,913 | ) | |||||
| Sale of investments |
— | 1,500 | ||||||
| Proceeds from maturity of investments |
39,615 | 52,607 | ||||||
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| Net cash provided by (used in) investing activities |
48,233 | (8,957 | ) | |||||
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| Cash flows from financing activities: |
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| Proceeds from line of credit |
12,847 | 31,617 | ||||||
| Repayment of line of credit |
(26,245 | ) | (27,723 | ) | ||||
| Proceeds from issuance of common stock, net of issuance costs |
87 | 962 | ||||||
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| Net cash used in financing activities |
(13,311 | ) | 4,856 | |||||
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| Effect of exchange rates on cash and cash equivalents |
98 | 222 | ||||||
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| Net increase in cash and cash equivalents |
(14,616 | ) | (63,819 | ) | ||||
| Cash and cash equivalents at beginning of year |
23,921 | 93,432 | ||||||
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| Cash and cash equivalents at end of period |
$ | 9,305 | $ | 29,613 | ||||
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| Supplemental disclosure of other cash flow information: |
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| Taxes paid |
$ | 36 | $ | 271 | ||||
| Interest paid |
5,164 | 5,225 | ||||||
| Supplemental disclosure of non-cash investing and financing activities: |
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| Transfer/exchange of inventory to/for property and equipment |
1,982 | 136 | ||||||
| Payables outstanding related to purchases of long-term assets |
— | 609 | ||||||