Welcome!

News Feed Item

Horizon Pharma Reports First Quarter 2014 Financial Results Exceeding Expectations and Raises 2014 Full-Year Guidance

Net Revenues of $51.9 Million, Adjusted EBITDA of $11.0 Million and Adjusted Non-GAAP Net Income of $11.0 Million, or $0.13 Non-GAAP Diluted Earnings per Share

DEERFIELD, IL -- (Marketwired) -- 05/09/14 -- Horizon Pharma, Inc. (NASDAQ: HZNP) today provided an update on the Company's business and announced financial results for the first quarter ended March 31, 2014.

First Quarter 2014 Financial Highlights

  • Gross and net sales were a record $92.2 million and $51.9 million, respectively, representing an overall gross to net revenue deduction of 43.7%.
  • First quarter 2014 VIMOVO net sales were $34.0 million.
  • First quarter 2014 net sales of DUEXIS and RAYOS were $13.9 million and $3.3 million, respectively.
  • Adjusted EBITDA was $11.0 million after excluding the impact of $4.0 million in Vidara acquisition related expenses.
  • Adjusted non-GAAP net income was $11.0 million, or $0.16 non-GAAP basic earnings per share and $0.13 non-GAAP diluted earnings per share.
  • On a GAAP basis, net loss in the first quarter of 2014 was $206.3 million, which includes a non-cash charge of $204.0 million related to the increase in fair value of the embedded derivative associated with the Company's convertible senior notes due to an increase in the market value of the Company's common stock during the first quarter.
  • The Company generated $4.3 million in adjusted cash from operating activities, excluding payments made in connection with the Vidara acquisition.
  • Cash and cash equivalents at March 31, 2014 were $103.4 million.

Financial Guidance

  • For 2014, the Company expects net revenues in the range of $270 to $280 million, which assumes the Vidara acquisition closes by July 31, 2014 and includes ACTIMMUNE revenues for the period of August through December 2014. This includes net revenues in the range of $245 to $255 million for the Company's base business, which includes DUEXIS, VIMOVO, RAYOS and LODOTRA.
  • For 2014, the Company expects adjusted EBITDA (excluding Vidara acquisition related expenses, step up in inventory required under purchase accounting related to ACTIMMUNE and other potential special items or substantive events) to be in the range of $80 to $90 million, which assumes the Vidara acquisition closes by July 31, 2014 and includes ACTIMMUNE results for the period of August through December 2014.

"2014 is off to a great start with record revenues for the quarter and our first ever non-GAAP quarterly profit," said Timothy P. Walbert, chairman, president and chief executive officer, Horizon Pharma. "VIMOVO results were above our expectations, with $34.0 million in net revenue in the first quarter, our first full quarter of marketing VIMOVO after acquiring it from AstraZeneca in November 2013. As a result of our outperformance in the quarter and including an expected five months of ACTIMMUNE sales, we have increased our net revenues and adjusted EBITDA guidance for the year."

Mr. Walbert continued, "We are also making good progress in activities related to the proposed Vidara acquisition, including the early termination of the HSR waiting period, and currently expect we will be in a position to close the transaction this summer."

First Quarter 2014 Financial Results

During the three months ended March 31, 2014, gross and net sales were $92.2 million and $51.9 million, respectively, compared to $10.7 million and $8.7 million, respectively, during the three months ended March 31, 2013. The Company reaffirms its expectation of mid-forty percent gross to net discounts across its portfolio in 2014.

VIMOVO gross and net sales during the three months ended March 31, 2014 were $50.0 million and $34.0 million, respectively, after deducting sales discounts and allowances of $16.0 million, including co-pay assistance costs of $4.6 million. The Company began promotion of VIMOVO with its rheumatology sales force on November 26, 2013 and began commercialization through its primary care sales force on January 2, 2014. According to data from IMS Health, new prescriptions for VIMOVO increased 10% in January, 18% in February and 15% in March versus the prior month, respectively, as the installed base of prior VIMOVO prescribers were very responsive to active promotion for the first time in years and the commercial business outgrew the decline of the government and cash business. According to data from IMS Health, total prescriptions for VIMOVO in the first quarter of 2014 were 69,368.

DUEXIS gross and net sales during the three months ended March 31, 2014 were $36.4 million and $13.9 million, respectively, after deducting sales discounts and allowances of $22.5 million, including co-pay assistance costs of $11.3 million, compared to gross and net sales of $6.7 million and $4.9 million, respectively, during the three months ended March 31, 2013. The increase in DUEXIS sales during the three months ended March 31, 2014 compared to the prior year period was primarily the result of prescription volume growth driven by expansion of the field sales organization and product price increases implemented during the course of 2013 and in January 2014. DUEXIS sales discounts and allowances increased from the prior year period and from the fourth quarter of 2013 primarily due to higher co-pay costs as a result of the Company's strategy of keeping patients in spite of higher deductibles and managed care plan changes at the beginning of the calendar year, and higher managed care rebates in the quarter driven by channel mix. The Company expects a moderating of DUEXIS sales discounts and allowances in the coming quarters as patients meet their plan deductibles and co-pay costs are reduced. According to data from IMS Health, total prescriptions for DUEXIS in the first quarter of 2014 were 53,368, versus 39,365 in the first quarter of 2013, an increase of 36%.

RAYOS gross and net sales were $5.1 million and $3.3 million, respectively, during the three months ended March 31, 2014 after deducting sales discounts and allowances of $1.8 million, including co-pay assistance costs of $0.8 million, compared to gross and net sales of $0.4 million and $0.3 million, respectively, during the three months ended March 31, 2013. The increase in RAYOS sales during the three months ended March 31, 2014 compared to the prior year period was primarily attributable to increased volume driven by the expansion of the Company's sales force focused on RAYOS and product price increases implemented during the course of 2013 and in January 2014. According to data from IMS Health, total prescriptions for RAYOS in the first quarter of 2014 were 2,945, versus 1,152 in the first quarter of 2013.

LODOTRA gross and net sales during the three months ended March 31, 2014 were $0.7 million compared to gross and net sales of $3.6 million and $3.5 million, respectively, during the three months ended March 31, 2013. The decrease in LODOTRA sales during the three months ended March 31, 2014 compared to the prior year period was the result of timing of product shipments to the Company's European distribution partner, Mundipharma. LODOTRA sales to Mundipharma occur at the time the Company ships product based on Mundipharma's estimated requirements. Accordingly, LODOTRA sales are not linear or directly tied to Mundipharma sales to the market and can therefore fluctuate from quarter to quarter.

Net loss for the first quarter of 2014 was $206.3 million, or $3.07 per share based on 67,138,463 weighted average shares outstanding, compared to a net loss of $22.2 million, or $0.36 per share based on 61,939,822 weighted average shares outstanding, during the first quarter of 2013. During the first quarter of 2014, the Company recorded a $204.0 million non-cash charge related to the increase in the fair value of the embedded derivative associated with the Company's convertible senior notes. The increase in fair value was primarily due to a $7.50 per share increase in the market value of the Company's common stock between December 31, 2013 and March 31, 2014.

Non-GAAP net income for the first quarter of 2014 was $6.9 million, or $0.10 per share basic and $0.08 per share diluted, compared to a non-GAAP net loss of $18.7 million, or $0.30 per share basic and diluted, during the first quarter of 2013. Excluding expenses associated with the Vidara acquisition, adjusted non-GAAP net income for the first quarter of 2014 was $11.0 million, or $0.16 per share basic and $0.13 per share diluted. Refer to the section of this press release below titled, "Note Regarding Use of Non-GAAP Financial Measures."

The Company had cash and cash equivalents of $103.4 million at March 31, 2014. Excluding payments made in connection with the Vidara acquisition, the Company generated $4.3 million in cash from operating activities during the first quarter of 2014. The Company also generated $24.2 million in cash during the first quarter of 2014 from financing activities, primarily as a result of proceeds from warrant exercises.

Gross profit margins improved to 85% of net sales during the first quarter of 2014 from 57% in the first quarter of 2013, including the impact of depreciation and intangible amortization expense. Excluding depreciation and intangible amortization expense, adjusted gross profit margins were 95% in the first quarter of 2014 compared to 76% in the first quarter of 2013. Higher average selling prices, product sales mix and the increase in net sales which spreads fixed amortization amounts over a larger base were primarily responsible for the improvement in the current period.

Total operating expenses increased to $42.7 million in the first quarter of 2014 from $23.5 million in the first quarter of 2013. $12.4 million of the increase was attributable to sales and marketing, with the majority driven by expansion of the Company's field sales force as a result of the VIMOVO acquisition. General and administrative expenses increased $6.3 million in the first quarter of 2014 versus the first quarter of 2013, with approximately $4.0 million related to the Vidara acquisition.

Interest expense increased by net $0.6 million to $4.2 million during the three months ended March 31, 2014, from $3.6 million during the three months ended March 31, 2013. The increase in interest expense was primarily attributable to higher debt discount expenses of $1.4 million, offset by $0.8 million in lower interest expense as a result of lower borrowing costs under the Company's 5.0% convertible senior notes due 2018, compared to borrowing costs under the Company's prior senior secured loan facility which was retired in November 2013.

Note Regarding Use of Non-GAAP Financial Measures

Horizon provides certain financial measures such as non-GAAP net income (loss) and non-GAAP net income (loss) per share, gross profit margins and cash from operations, including further adjustments to these measures, that include adjustments to GAAP figures. These adjustments to GAAP exclude transaction related expenses as well as non-cash items such as stock compensation, depreciation and amortization, non-cash interest expense, and other non-cash adjustments such as the increase or decrease in the fair value of the embedded derivative associated with the Company's convertible senior notes. Certain other special items or substantive events may also be included in the non-GAAP adjustments periodically when their magnitude is significant within the periods incurred. EBITDA, or earnings before interest, taxes, depreciation and amortization, and adjusted EBITDA are also used and provided by Horizon as a non-GAAP financial measure. Horizon believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of Horizon's financial performance. The non-GAAP financial measures are included with the intent of providing investors with a more complete understanding of operational results and trends. In addition, these non-GAAP financial measures are among the indicators Horizon's management uses for planning and forecasting purposes and measuring the Company's performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies. Please refer to the financial statements portion of this press release where the Company has provided a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures. However, the Company has not provided a reconciliation of full year 2014 adjusted EBITDA outlook to a net income (loss) outlook because certain items that are a component of net income (loss) but not part of adjusted EBITDA, such as the gain (loss) on derivative revaluation associated with the convertible senior notes, are not in our control and cannot be reasonably projected due to the significant impact of changes in Horizon's stock price on that component of net income (loss).

Conference Call

At 8:00 a.m. Eastern Time today, Horizon's management will host a live conference call and webcast to review the Company's financial and operating results and provide a general business update.

The live webcast and a replay may be accessed by visiting Horizon's website at http://ir.horizon-pharma.com. Please connect to the Company's website at least 15 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast.

Alternatively, please call 1-888-338-8373 (U.S.) or 973-872-3000 (international) to listen to the conference call. The conference ID number for the live call is 29164068. Telephone replay will be available approximately two hours after the call. To access the replay, please call 1-855-859-2056 (U.S.) or 404-537-3406 (international). The conference ID number for the replay is 29164068.

About Horizon Pharma

Horizon Pharma, Inc. is a commercial stage, specialty pharmaceutical company that markets DUEXIS®, VIMOVO® and RAYOS®/LODOTRA®, which target unmet therapeutic needs in arthritis, pain and inflammatory diseases. The Company's strategy is to develop, acquire or in-license additional innovative medicines or companies where it can execute a targeted commercial approach among specific target physicians such as primary care physicians, orthopedic surgeons and rheumatologists, while taking advantage of its commercial strengths and the infrastructure the Company has put in place. For more information, please visit www.horizonpharma.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding expected 2014 net revenue and adjusted EBITDA, expectations regarding future DUEXIS sales discounts and allowances for the remainder of 2014, the expected timing for closing of the Vidara acquisition and the on-going commercialization of DUEXIS, VIMOVO and RAYOS and future commercialization of ACTIMMUNE. These forward-looking statements are based on management's expectations and assumptions as of the date of this press release, and actual results may differ materially from those in these forward-looking statements as a result of various factors. These factors include, but are not limited to, risks regarding Horizon's ability to commercialize products successfully, whether commercial data regarding DUEXIS, VIMOVO, RAYOS and ACTIMMUNE in the United States for any historic periods are indicative of future results, Horizon's ability to comply with post-approval regulatory requirements, Horizon's ability to enforce its intellectual property rights to its products, whether and when Horizon will be able to satisfy the conditions precedent to close its proposed merger with Vidara, Horizon's ability to execute on its plan to grow through acquisition of or in-licensing additional products or companies where it can execute a targeted commercial approach among specific target physicians and whether any such acquisitions or in-licensing transactions will leverage the Company's commercial strengths and infrastructure. For a further description of these and other risks facing the Company, please see the risk factors described in the Company's filings with the United States Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in those filings. Forward-looking statements speak only as of the date of this press release and the Company undertakes no obligation to update or revise these statements, except as may be required by law.

Additional Information and Where to Find It

In connection with the proposed transaction, Horizon and Vidara will be filing documents with the SEC, including the filing by Horizon of a preliminary and definitive proxy statement/prospectus relating to the proposed transaction and the filing by Vidara of a registration statement on Form S-4 that will include the proxy statement/prospectus relating to the proposed transaction. After the registration statement has been declared effective by the SEC, a definitive proxy statement/prospectus will be mailed to Horizon stockholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE RELATED PRELIMINARY AND DEFINITIVE PROXY/PROSPECTUS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HORIZON, VIDARA AND THE PROPOSED TRANSACTION. Investors and security holders may obtain free copies of these documents (when they are available) and other related documents filed with the SEC at the SEC's web site at www.sec.gov, by directing a request to Horizon's Investor Relations department at Horizon Pharma, Inc., Attention: Investor Relations, 520 Lake Cook Road, Suite 520, Deerfield, IL 60015 or to Horizon's Investor Relations department at 224-383-3000 or by email to [email protected]. Investors and security holders may obtain free copies of the documents filed with the SEC on Horizon's website at www.horizonpharma.com under the heading "Investors" and then under the heading "SEC Filings."

Horizon and its directors and executive officers and Vidara and its directors and executive officers may be deemed participants in the solicitation of proxies from the stockholders of Horizon in connection with the proposed transaction. Information regarding the special interests of these directors and executive officers in the proposed transaction will be included in the proxy statement/prospectus described above. Additional information regarding the directors and executive officers of Horizon is also included in Horizon's Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the SEC on March 13, 2014. These documents are available free of charge at the SEC's web site at www.sec.gov and from Investor Relations at Horizon as described above.

This communication does not constitute an offer to sell, or the solicitation of an offer to sell, or the solicitation of an offer to subscribe for or buy, any securities nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.



                   CONDENSED CONSOLIDATED BALANCE SHEETS

              (in thousands, except share and per share data)

                                                           As of
                                               ----------------------------
                                                 March 31,     December 31,
                                                    2014           2013
                                               -------------  -------------
                                                        (Unaudited)
Assets
Current assets
  Cash and cash equivalents                    $     103,374  $      80,480
  Restricted cash                                        738            738
  Accounts receivable, net                            40,100         15,958
  Inventories, net                                     9,432          8,701
  Prepaid expenses and other current assets            9,105          4,888
                                               -------------  -------------
    Total current assets                             162,749        110,765
  Property and equipment, net                          3,897          3,780
  Intangible assets, net                             125,992        131,094
  Other assets                                         6,496          6,957
                                               -------------  -------------
    Total assets                               $     299,134  $     252,596
                                               =============  =============
Liabilities and Stockholders' Equity
Current liabilities
  Accounts payable                             $      10,271  $       9,921
  Accrued expenses                                    44,712         24,049
  Accrued royalties                                   11,416          8,010
  Deferred revenues - current portion                  3,102          1,330
                                               -------------  -------------
    Total current liabilities                         69,501         43,310
Long-term liabilities

  Convertible debt, net                              112,774        110,762
  Derivative liability                               313,440        109,410
  Accrued royalties                                   21,576         24,982
  Deferred revenues, net of current                    8,017          9,686
  Deferred tax liabilities, net                        2,903          3,362
  Other long term liabilities                            166            166
                                               -------------  -------------
    Total liabilities                                528,377        301,678
                                               -------------  -------------

Commitments and Contingencies

Stockholders' equity
  Common stock, $0.0001 par value per share;
   200,000,000 shares authorized; 71,413,573
   and 66,097,417 shares issued and
   outstanding at March 31, 2014 and December
   31, 2013, respectively.                                 7              7
  Additional paid-in capital                         436,513        410,430
  Accumulated other comprehensive loss                (2,398)        (2,403)
  Accumulated deficit                               (663,365)      (457,116)
                                               -------------  -------------
    Total stockholders' deficit                     (229,243)       (49,082)
                                               -------------  -------------
    Total liabilities and stockholders' equity $     299,134  $     252,596
                                               =============  =============



              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

              (in thousands, except share and per share data)

                                               Three Months Ended March 31,
                                               ----------------------------
                                                    2014           2013
                                               -------------  -------------
                                                        (Unaudited)
Revenues
Gross sales                                    $      92,248  $      10,698
Sales discounts and allowances                       (40,322)        (2,005)
                                               -------------  -------------
  Net sales                                           51,926          8,693
                                               -------------  -------------

Cost of goods sold                                     7,619          3,769
                                               -------------  -------------
Gross profit                                          44,307          4,924
Operating Expenses
  Research and development                             2,833          2,198
  Sales and marketing                                 28,695         16,328
  General and administrative                          11,192          4,942
                                               -------------  -------------
    Total operating expenses                          42,720         23,468
                                               -------------  -------------
Operating income (loss)                                1,587        (18,544)

Interest expense, net                                 (4,207)        (3,603)
Foreign exchange loss                                    (38)          (905)
Loss on derivative fair value                       (204,030)             -
Other expense                                           (667)             -
                                               -------------  -------------
Loss before benefit for income taxes                (207,355)       (23,052)
Benefit for income taxes                              (1,105)          (881)
                                               -------------  -------------
Net loss                                       $    (206,250) $     (22,171)
                                               =============  =============

Net loss per share- basic and diluted          $       (3.07) $       (0.36)
                                               -------------  -------------
Weighted average shares outstanding used in
 calculating net loss per share - basic and
 diluted                                          67,138,463     61,939,822
                                               -------------  -------------



       RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME (LOSS)
             (in thousands, except share and per share amounts)

                                               Three Months Ended March 31,
                                               ----------------------------
                                                    2014           2013
                                               -------------  -------------
                                                        (Unaudited)

GAAP Net Loss                                  $    (206,250) $     (22,171)
Non-GAAP Adjustments
  Loss on derivative revaluation                     204,030              -
  Intangible amortization expense (net of tax
   effect)                                             4,680          1,324
  Stock-based compensation                             1,927          1,079
  Amortization of debt discount and deferred
   financing costs                                     2,333            910
  Depreciation expense                                   376            259
  Amortization of deferred revenue                      (161)           (68)
                                               -------------  -------------
    Total of non-GAAP adjustments                    213,185          3,504
                                               -------------  -------------
Non-GAAP Net Income (Loss)                     $       6,935  $     (18,667)
                                               =============  =============

Weighted average shares - basic                   67,138,463     61,939,822

Weighted average shares - diluted
  Weighted average shares - basic                 67,138,463     61,939,822
  Common stock equivalents                        15,961,807              -
                                               -------------  -------------
  Weighted average shares - diluted               83,100,270     61,939,822
                                               =============  =============

Non-GAAP Basic Earnings (Loss) per share:
GAAP net loss per common share-basic and
 diluted                                       $       (3.07) $       (0.36)
  Non-GAAP adjustments                                  3.17           0.06
                                               -------------  -------------
  Non-GAAP Basic Earnings (Loss) per share     $        0.10  $       (0.30)

Non-GAAP Diluted Net Income (Loss) Per Share:
Non-GAAP net income (loss) per common share-
 basic                                         $        0.10  $       (0.30)
  Dilutive earnings per share effect of common
   stock equivalents                                   (0.02)             -
                                               -------------  -------------
  Non-GAAP net income (loss) per common share-
   diluted                                     $        0.08  $       (0.30)


Adjustments to Non-GAAP Net Income (Loss)
  Adjustment for Vidara acquisition expenses   $       4,049  $           -
                                               -------------  -------------
    Total of non-GAAP adjustments                    217,234          3,504
                                               -------------  -------------
Adjusted Non-GAAP Net Income (Loss)            $      10,984  $     (18,667)
                                               =============  =============

Adjusted Non-GAAP Basic Earnings (Loss) per
 share:
GAAP net loss per common share-basic and
 diluted                                       $       (3.07) $       (0.36)
  Non-GAAP adjustments                                  3.23           0.06
                                               -------------  -------------
  Adjusted Non-GAAP Basic Earnings (Loss) per
   share                                       $        0.16  $       (0.30)

Adjusted Non-GAAP Diluted Net Income (Loss)
 Per Share:
Adjusted Non-GAAP net income (loss) per common
 share-basic                                   $        0.16  $       (0.30)
  Dilutive earnings per share effect of common
   stock equivalents                                   (0.03)             -
                                               -------------  -------------
  Adjusted Non-GAAP net income (loss) per
   common share-diluted                        $        0.13  $       (0.30)



                ADDITIONAL GAAP TO NON-GAAP RECONCILIATIONS
                     (in thousands, except percentages)

                                               Three Months Ended March 31,
                                               ----------------------------
                                                    2014           2013
                                               -------------  -------------
                                                        (Unaudited)

GAAP Net Loss                                  $    (206,250) $     (22,171)

Loss on derivative revaluation                       204,030              -
Depreciation and intangible amortization
 expense                                               5,403          1,922
Interest expense, net                                  4,207          3,603
Other expense, net                                       667              -
Foreign exchange loss                                     38            905
Benefit for income taxes                              (1,105)          (881)
                                               -------------  -------------
      Non-GAAP Adjustments                           213,240          5,549
                                               -------------  -------------
EBITDA                                         $       6,990  $       1,079
                                               -------------  -------------
  Adjustments for Vidara acquisition costs             4,049              -
                                               -------------  -------------
      Total Non-GAAP Adjustments                     217,289          5,549
                                               -------------  -------------
Adjusted EBITDA                                $      11,039  $       1,079
                                               =============  =============

GAAP net sales                                 $      51,926  $       8,693
GAAP cost of goods sold                               (7,619)        (3,769)
                                               -------------  -------------
GAAP gross profit                              $      44,307  $       4,924
                                               -------------  -------------

GAAP gross profit %                                       85%            57%

Non-GAAP gross profit adjustments:
  Depreciation and intangible amortization
   expense                                             5,059          1,716
                                               -------------  -------------
Non-GAAP gross profit                          $      49,366  $       6,640
                                               -------------  -------------

Non-GAAP gross profit %                                   95%            76%

GAAP cash used in operating activities         $        (757) $     (22,769)
  Cash payments related to Vidara acquistion           5,095              -
                                               -------------  -------------
Non-GAAP cash used in operating activities     $       4,338  $     (22,769)
                                               -------------  -------------



              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (in thousands)

                                               Three Months Ended March 31,
                                               ----------------------------
                                                    2014           2013
                                               -------------  -------------
                                                        (Unaudited)
Cash flows from operating activities
Net loss                                       $    (206,250) $     (22,171)
Adjustments to reconcile net loss to net cash
 used in operating activities
  Depreciation and amortization                        5,403          1,922
  Stock-based compensation                             1,927          1,079
  Loss on derivative revaluation                     204,030              -
  Amortization of debt discount and deferred
   financing costs                                     2,333            910
  Paid in kind interest expense                            -            783
  Foreign exchange loss                                   38            905
  Changes in operating assets and liabilities:
    Accounts receivable                              (24,142)        (4,300)
    Inventories                                         (729)           866
    Prepaid expenses and other current assets         (4,218)           379
    Accounts payable                                     352         (1,026)
    Accrued expenses                                  20,702         (1,682)
    Deferred revenues                                    112            349
    Deferred tax liabilities                            (454)          (864)
    Other non-current assets and liabilities             139             81
                                               -------------  -------------
      Net cash used in operating activities             (757)       (22,769)
                                               -------------  -------------
Cash flows from investing activities
Purchase of property and equipment                      (494)          (225)
                                               -------------  -------------
      Net cash used in investing activities             (494)          (225)
                                               -------------  -------------
Cash flows from financing activities
Proceeds from the issuance of common stock            24,156              -
                                               -------------  -------------
      Net cash provided by financing
       activities                                     24,156              -
                                               -------------  -------------
Effect of exchange rate changes on cash and
 cash equivalents                                        (11)           (17)
      Net increase (decrease) in cash and cash
       equivalents                                    22,894        (23,011)
Cash and cash equivalents
Beginning of period                                   80,480        104,087
                                               -------------  -------------
End of period                                  $     103,374  $      81,076
                                               =============  =============

Contact:

Robert J. De Vaere
Executive Vice President, Chief Financial Officer
Email Contact

Bob Carey
Executive Vice President, Chief Business Officer
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...