"We are excited to report strong results during our first quarter as a public company.
Financial Summary
Three Months Ended | Years Ended | ||||||||||||||||||||||
2015 | 2017 | % Change | 2015 | 2017 | % Change | ||||||||||||||||||
Revenue | $ | 25,412 | $ | 37,492 | 47.5 | % | $ | 83,773 | $ | 129,069 | 54.1 | % | |||||||||||
Gross Margin | 51.1 | % | 51.5 | % | 40 bps | 49.2 | % | 49.9 | % | 70 bps | |||||||||||||
Net income (loss) | |||||||||||||||||||||||
GAAP | 427 | 32 | (7,045 | ) | (1,895 | ) | |||||||||||||||||
Non-GAAP | 672 | 898 | (5,843 | ) | 1,195 | ||||||||||||||||||
Net income (loss) per share - diluted | |||||||||||||||||||||||
GAAP | $ | 0.02 | $ | 0.00 | $ | (9.16 | ) | $ | (0.30 | ) | |||||||||||||
Non-GAAP | $ | 0.02 | $ | 0.03 | $ | (7.59 | ) | $ | 0.04 | ||||||||||||||
(in thousands except per share data, unaudited) | |||||||||||||||||||||||
Commentary on the fourth quarter and fiscal year 2016 financial results by Company management is available at at http://ir.quantenna.com/.
Please see the note regarding the use of non-GAAP financial measures below, including a detailed reconciliation between GAAP and non-GAAP information in the tables included herein.
Fourth Quarter Company Highlights
Business Outlook
First Quarter 2017 | |||
Revenue | |||
Gross Margin | 48% to 50% | ||
Operating Expense Decline (sequential) | 5% to 10% | ||
Net income (loss) per share - diluted | |||
GAAP | ( | ||
Non-GAAP | |||
Webcast and Conference Call
Non-GAAP Financial Measures
In addition to GAAP reporting,
About
Forward-Looking Statements
This press release contains forward-looking statements based on Quantenna's current expectations, including statements regarding Quantenna's financial results for the fourth quarter and fiscal year 2016 ended
Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||
(in thousands except per share data, unaudited) | |||||||||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||||||||
2015 | 2017 | 2015 | 2017 | ||||||||||||||||||||||
Revenue | $ | 25,412 | $ | 37,492 | $ | 83,773 | $ | 129,069 | |||||||||||||||||
Cost of revenue | 12,425 | 18,188 | 42,554 | 64,640 | |||||||||||||||||||||
Gross profit | 12,987 | 19,304 | 41,219 | 64,429 | |||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||
Research and development | 9,545 | 13,691 | 35,575 | 46,604 | |||||||||||||||||||||
Sales and marketing | 1,625 | 2,520 | 6,644 | 8,091 | |||||||||||||||||||||
General and administrative | 1,302 | 2,757 | 5,212 | 10,559 | |||||||||||||||||||||
Total operating expenses | 12,472 | 18,968 | 47,431 | 65,254 | |||||||||||||||||||||
Income (loss) from operations | 515 | 336 | (6,212 | ) | (825 | ) | |||||||||||||||||||
Interest expense | (137 | ) | (252 | ) | (697 | ) | (665 | ) | |||||||||||||||||
Other income (expense), net | 87 | 262 | (21 | ) | (38 | ) | |||||||||||||||||||
Income (loss) before income taxes | 465 | 346 | (6,930 | ) | (1,528 | ) | |||||||||||||||||||
Provision for income taxes | (38 | ) | (314 | ) | (115 | ) | (367 | ) | |||||||||||||||||
Net income (loss) | $ | 427 | $ | 32 | $ | (7,045 | ) | $ | (1,895 | ) | |||||||||||||||
Net income (loss) per share - basic | $ | 0.49 | $ | 0.00 | $ | (9.16 | ) | $ | (0.30 | ) | |||||||||||||||
Net income (loss) per share - diluted | $ | 0.02 | $ | 0.00 | $ | (9.16 | ) | $ | (0.30 | ) | |||||||||||||||
Shares used in computing net income (loss) per share: | |||||||||||||||||||||||||
Basic | 872 | (1 | ) | 21,246 | 770 | (1 | ) | 6,385 | |||||||||||||||||
Diluted | 27,067 | 35,387 | 770 | 6,385 | |||||||||||||||||||||
(1) The number of shares reflects the number prior to conversion of preferred stock | |||||||||||||||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||||
(in thousands, unaudited) | ||||||||||||||
2015 | 2017 | |||||||||||||
Assets | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 18,850 | $ | 117,045 | ||||||||||
Accounts receivable | 15,717 | 14,480 | ||||||||||||
Inventory | 7,407 | 15,820 | ||||||||||||
Prepaid expenses and other current assets | 1,428 | 2,470 | ||||||||||||
Total current assets | 43,402 | 149,815 | ||||||||||||
Property and equipment, net | 3,083 | 4,742 | ||||||||||||
Other assets | 182 | 232 | ||||||||||||
Total assets | $ | 46,667 | $ | 154,789 | ||||||||||
Liabilities, Redeemable Convertible Preferred Stock, and | ||||||||||||||
Stockholders' Equity (Deficit) | ||||||||||||||
Current liabilities | ||||||||||||||
Accounts payable | $ | 5,917 | $ | 7,776 | ||||||||||
Accrued liabilities and other current liabilities | 5,617 | 11,801 | ||||||||||||
Long-term debt, current portion | 3,581 | 2,257 | ||||||||||||
Total current liabilities | 15,115 | 21,834 | ||||||||||||
Long-term debt and other long term liabilities | 2,265 | 4,207 | ||||||||||||
Convertible preferred stock warrant liability | 255 | - | ||||||||||||
Total liabilities | 17,635 | 26,041 | ||||||||||||
Convertible preferred stock | 184,704 | - | ||||||||||||
Stockholders' equity (deficit) | ||||||||||||||
Common stock | - | 3 | ||||||||||||
Additional paid-in capital | 4,007 | 290,319 | ||||||||||||
Accumulated deficit | (159,679 | ) | (161,574 | ) | ||||||||||
Total stockholders' equity (deficit) | (155,672 | ) | 128,748 | |||||||||||
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ | 46,667 | $ | 154,789 | ||||||||||
Condensed Consolidated Cash Flows | ||||||||||||||
(in thousands, unaudited) | ||||||||||||||
Years Ended | ||||||||||||||
2015 | 2017 | |||||||||||||
Cash flows from operating activities | ||||||||||||||
Net loss | $ | (7,045 | ) | $ | (1,895 | ) | ||||||||
Adjustments to reconcile net loss to net cash provided by | ||||||||||||||
(used in) operating activities | ||||||||||||||
Depreciation and amortization | 987 | 1,278 | ||||||||||||
Stock-based compensation expense | 1,202 | 3,090 | ||||||||||||
Non-cash interest expense | 271 | 322 | ||||||||||||
Change in fair value of convertible preferred stock warrants liability | 61 | 87 | ||||||||||||
Changes in assets and liabilities | ||||||||||||||
Accounts receivable | (5,877 | ) | 1,237 | |||||||||||
Inventory | 3,387 | (8,413 | ) | |||||||||||
Prepaid expenses and other current assets | 541 | (901 | ) | |||||||||||
Other assets | 60 | (50 | ) | |||||||||||
Accounts payable | (4,401 | ) | 1,804 | |||||||||||
Accrued liabilities and other current liabilities | 934 | 5,757 | ||||||||||||
Deferred revenue | (2,197 | ) | - | |||||||||||
Net cash provided by (used in) operating activities | (12,077 | ) | 2,316 | |||||||||||
Cash flows from investing activities | ||||||||||||||
Purchase of property and equipment | (1,761 | ) | (2,724 | ) | ||||||||||
Restricted cash | 59 | (59 | ) | |||||||||||
Net cash used in investing activities | (1,702 | ) | (2,783 | ) | ||||||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | 14,256 | - | ||||||||||||
Proceeds from issuance of common stock | 164 | 1,191 | ||||||||||||
Proceeds from initial public offering, net of issuance costs | - | 97,483 | ||||||||||||
Proceeds from revolving line of credit, net of fees paid | - | 2,950 | ||||||||||||
Repayment of revolving line of credit | - | (3,000 | ) | |||||||||||
Proceeds from issuance of long-term debt, net of fees paid | 3,000 | 3,854 | ||||||||||||
Repayment of long-term debt | (3,111 | ) | (3,816 | ) | ||||||||||
Net cash provided by financing activities | 14,309 | 98,662 | ||||||||||||
Net increase in cash and cash equivalents | 530 | 98,195 | ||||||||||||
Cash and cash equivalents | ||||||||||||||
Beginning of year | 18,320 | 18,850 | ||||||||||||
End of year | $ | 18,850 | $ | 117,045 | ||||||||||
Unaudited reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||
Non-GAAP Income Statement Items | Three months ended | Three months ended | ||||||||||||||||||||||||
Stock-based | Stock-based | |||||||||||||||||||||||||
GAAP | Compensation | Non-GAAP | GAAP | Compensation | Non-GAAP | |||||||||||||||||||||
Measure | Expense | Measure | Measure | Expense | Measure | |||||||||||||||||||||
Revenue | $ | 25,412 | $ | 25,412 | $ | 37,492 | $ | 37,492 | ||||||||||||||||||
Gross profit | 12,987 | 3 | 12,990 | 19,304 | 18 | 19,322 | ||||||||||||||||||||
Gross margin | 51.1 | % | 0 | % | 51.1 | % | 51.5 | % | 0 | % | 51.5 | % | ||||||||||||||
Research and development | 9,545 | 77 | 9,468 | 13,691 | 457 | 13,234 | ||||||||||||||||||||
Sales and marketing | 1,625 | 26 | 1,599 | 2,520 | 128 | 2,392 | ||||||||||||||||||||
General and administrative | 1,302 | 139 | 1,163 | 2,757 | 263 | 2,494 | ||||||||||||||||||||
Income from operations | 515 | 245 | 760 | 336 | 866 | 1,202 | ||||||||||||||||||||
Net income | $ | 427 | $ | 245 | $ | 672 | $ | 32 | $ | 866 | $ | 898 | ||||||||||||||
Basic shares outstanding | 872 | 872 | 21,246 | 21,246 | ||||||||||||||||||||||
Basic earnings per share | $ | 0.49 | $ | 0.77 | $ | 0.00 | $ | 0.04 | ||||||||||||||||||
Diluted shares outstanding | 27,067 | 27,067 | 35,387 | 35,387 | ||||||||||||||||||||||
Diluted earnings per share | $ | 0.02 | $ | 0.02 | $ | 0.00 | $ | 0.03 | ||||||||||||||||||
Unaudited reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||||
Non-GAAP Income Statement Items | Year ended | Year ended | ||||||||||||||||||||||||
Stock-based | Stock-based | |||||||||||||||||||||||||
GAAP | Compensation | Non-GAAP | GAAP | Compensation | Non-GAAP | |||||||||||||||||||||
Measure | Expense | Measure | Measure | Expense | Measure | |||||||||||||||||||||
Revenue | $ | 83,773 | $ | 83,773 | $ | 129,069 | $ | 129,069 | ||||||||||||||||||
Gross profit | 41,219 | 9 | 41,228 | 64,429 | 33 | 64,462 | ||||||||||||||||||||
Gross margin | 49.2 | % | 0 | % | 49.2 | % | 49.9 | % | 0 | % | 49.9 | % | ||||||||||||||
Research and development | 35,575 | 302 | 35,273 | 46,604 | 911 | 45,693 | ||||||||||||||||||||
Sales and marketing | 6,644 | 445 | 6,199 | 8,091 | 248 | 7,843 | ||||||||||||||||||||
General and administrative | 5,212 | 446 | 4,766 | 10,559 | 1,898 | 8,661 | ||||||||||||||||||||
Income from operations | (6,212 | ) | 1,202 | (5,010 | ) | (825 | ) | 3,090 | 2,265 | |||||||||||||||||
Net income | $ | (7,045 | ) | $ | 1,202 | $ | (5,843 | ) | $ | (1,895 | ) | $ | 3,090 | $ | 1,195 | |||||||||||
Basic shares outstanding | 770 | 770 | 6,385 | 6,385 | ||||||||||||||||||||||
Basic earnings per share | $ | (9.16 | ) | $ | (7.59 | ) | $ | (0.30 | ) | $ | 0.19 | |||||||||||||||
Diluted shares outstanding | 770 | 770 | 6,385 | 31,113 | ||||||||||||||||||||||
Diluted earnings per share | $ | (9.16 | ) | $ | (7.59 | ) | $ | (0.30 | ) | $ | 0.04 | |||||||||||||||
Unaudited Forward-Looking Statements Regarding Business Outlook | |||||||||||
Business Outlook | Three months ended | ||||||||||
High | Low | ||||||||||
Estimated GAAP diluted earnings (loss) per share | $ | (0.03 | ) | $ | (0.05 | ) | |||||
Estimated stock compensation expense | 0.05 | 0.05 | |||||||||
Estimated impact from dilutive shares deemed anti-dilutive due to GAAP loss | 0.00 | 0.00 | |||||||||
Estimated Non-GAAP diluted earnings per share | $ | 0.02 | $ | 0.00 | |||||||
Source:Quantenna Communications, Inc. Vernon Essi , Jr. 510-897-2684 [email protected]
News Provided by Acquire Media