Spok Reports 2020 Fourth Quarter and Full Year Operating Results
Feb 17, 2021 4:10 PM
Improved Software Revenue Levels, Continued Strong Wireless Trends, and Expense Management Contribute to Operating Performance
Board Declares Regular Quarterly Dividend
Key Fourth Quarter and Full Year Operating Highlights:
-
Fourth quarter 2020 software revenue of
$17.2 million included$9.9 million of maintenance revenue and$7.3 million of operations revenue. This compares to third quarter software revenue of$16.9 million , which included$9.5 million of maintenance revenue and$7.4 million of operations revenue. -
Software bookings in the fourth quarter totaled
$16.5 million , compared to$21.4 million in the prior quarter and$21.9 million in the fourth quarter of 2019. Fourth quarter bookings included Spok Go® deals with an aggregate total contract value of$255,000 . Fourth quarter software bookings included$7.2 million of operations bookings and$9.3 million of maintenance renewals. AtDecember 31, 2020 , the software revenue backlog totaled$50.5 million , compared to the backlog of$50.6 million atDecember 31, 2019 . - The quarterly rate of paging unit erosion was 1.4% in the fourth quarter of 2020, down from paging unit erosion of 1.9% in the prior quarter. Gross disconnects were down on both a sequential and year-over-year basis.
- The rate of wireless revenue erosion in the fourth quarter was 2.5%, compared to a revenue erosion rate of 1.2% in the prior quarter. For the full year 2020, the wireless revenue erosion rate was 5.2%, down 130 basis points from the revenue erosion rate of 6.5% in 2019.
-
Total paging ARPU (average revenue per unit) in 2020 totaled
$7.30 , down slightly from ARPU of$7.34 in 2019. -
Operating expenses in 2020 totaled
$170.8 million , down from$176.1 million in 2019. Adjusted operating expenses (which excludes goodwill impairment, depreciation, amortization and accretion charges, and includes capitalized software development costs) totaled$148.0 million in 2020, down more than 6% from adjusted operating expenses of$158.0 million in 2019. -
Capital expenses were
$3.5 million in 2020, compared to$4.8 million 2019. -
The number of full-time equivalent employees at
December 31, 2020 totaled 602, compared to 638 atDecember 31, 2019 . -
Capital paid to stockholders in 2020 aggregated
$9.8 million . This came in the form of the Company's regular quarterly dividend. -
The Company’s cash, cash equivalents and short-term investments balance at
December 31, 2020 , was$78.7 million , up from$77.3 million atDecember 31, 2019 .
2020 Fourth Quarter and Full Year Results:
Consolidated revenue for the fourth quarter of 2020 under Generally Accepted Accounting Principles (“GAAP”) was
For the three months ended |
For the year ended |
|||||||||||||||||||||||
(Dollars in thousands) |
|
|
Change
|
|
|
Change
|
||||||||||||||||||
Wireless revenue |
|
|
|
|
|
|
||||||||||||||||||
Paging revenue |
$ |
19,513 |
|
$ |
20,826 |
|
(6.3 |
) |
% |
$ |
79,916 |
|
$ |
85,067 |
|
(6.1 |
) |
% |
||||||
Product and other revenue |
787 |
|
789 |
|
(0.3 |
) |
% |
3,677 |
|
3,100 |
|
18.6 |
|
% |
||||||||||
Total wireless revenue |
$ |
20,300 |
|
$ |
21,615 |
|
(6.1 |
) |
% |
$ |
83,593 |
|
$ |
88,167 |
|
(5.2 |
) |
% |
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Software revenue |
|
|
|
|
|
|
||||||||||||||||||
Operations revenue |
$ |
7,268 |
|
$ |
7,783 |
|
(6.6 |
) |
% |
$ |
25,996 |
|
$ |
31,757 |
|
(18.1 |
) |
% |
||||||
Maintenance revenue |
9,913 |
|
10,150 |
|
(2.3 |
) |
% |
38,591 |
|
40,365 |
|
(4.4 |
) |
% |
||||||||||
Total software revenue |
17,181 |
|
17,933 |
|
(4.2 |
) |
% |
64,587 |
|
72,122 |
|
(10.4 |
) |
% |
||||||||||
Total revenue |
$ |
37,481 |
|
$ |
39,548 |
|
(5.2 |
) |
% |
$ |
148,180 |
|
$ |
160,289 |
|
(7.6 |
) |
% |
||||||
GAAP net loss for the fourth quarter of 2020 was
GAAP net loss for the for the year ended
In the fourth quarter of 2020, the Company generated
|
For the three months ended |
|
For the year ended |
||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
||||||||||||
Net loss |
$ |
(46,610 |
) |
|
|
$ |
(9,511 |
) |
|
|
$ |
(44,225 |
) |
|
|
$ |
(10,765 |
) |
|
Basic and diluted net loss per common share |
$ |
(2.44 |
) |
|
|
$ |
(0.50 |
) |
|
|
$ |
(2.32 |
) |
|
|
$ |
(0.56 |
) |
|
Adjusted EBITDA |
$ |
1,362 |
|
|
|
$ |
(19 |
) |
|
|
$ |
5,654 |
|
|
|
$ |
5,932 |
|
|
Management Commentary:
“In most respects, 2020 was the most challenging year in our history from both a management and operational perspective,” said
"In the second half of 2020 we saw a more than 22% increase in software bookings from the first half of the year, as well as continued solid trends in our wireless business. Sustained expense management drove a sharp reduction in full year 2020 operating expenses and adjusted operating expenses from the prior year, even after adding back capitalized software development costs. A big part of those expense savings came from the commitment, support and sacrifices of our employees, who along with the entire leadership team including me, accepted furloughs to contribute to our savings goals. Our software revenue backlog continues at record levels, and we generated nearly
"Finally, continuing our promise to add clinical talent to our team in order to support our customers and facilitate our transition, in late November we announced the appointment of our new Chief Product Officer,
Business Outlook:
Regarding financial guidance for 2021, Wallace said that the Company expects total revenue to range from
2020 Fourth Quarter and Full Year Call and Replay:
Spok plans to host a conference call for investors to discuss its 2020 fourth quarter and full year results at
About Spok
Spok is a trademark of
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: adjusted operating expenses and adjusted EBITDA. Adjusted operating expenses excludes depreciation, amortization and accretion, goodwill impairment and capitalized software development costs. Adjusted EBITDA represents net income/(loss) before interest income/expense, income tax expense/benefit, depreciation, amortization and accretion expense, goodwill impairment, stock based compensation expense, and capitalized software development costs.
We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to Spok's financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, to understand and evaluate our core operating performance and trends, and to generate future operating plans. We believe that these non-GAAP financial measures permit us to more thoroughly analyze key financial metrics used to make operational decisions and allow us to assess our core operating results. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies who present similar non-GAAP financial measures. We adjust for certain items because we do not regard these costs as reflective of normal costs related to the ongoing operation of the business in the ordinary course. In general, these items possess one or more of the following characteristics; non-cash expenses, factors outside of our control, items that are non-operational in nature, and unusual items not expected to occur in the normal course of business.
We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.
Safe Harbor Statement under the Private Securities Litigation Reform Act
Statements contained herein or in prior press releases which are not historical fact, such as statements regarding Spok’s future operating and financial performance are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause Spok’s actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, risks related to the COVID-19 pandemic and its effect on our business and the economy, other economic conditions such as recessionary economic cycles, higher interest rates, inflation and higher levels of unemployment, our ability to effectively develop, introduce and deploy our integrated communications platform and collaboration platform, Spok Go, declining demand for paging products and services, continued demand for our software products and services, our dependence on the
|
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a) |
||||||||||||||||||||
(Unaudited and in thousands except share, per share amounts and ARPU) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
For the three months ended |
|
For the year ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||||||
Wireless |
|
$ |
20,300 |
|
|
|
$ |
21,615 |
|
|
|
$ |
83,593 |
|
|
|
$ |
88,167 |
|
|
Software |
|
17,180 |
|
|
|
17,933 |
|
|
|
64,587 |
|
|
|
72,122 |
|
|
||||
Total revenue |
|
37,480 |
|
|
|
39,548 |
|
|
|
148,180 |
|
|
|
160,289 |
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||||||
Cost of revenue |
|
7,833 |
|
|
|
8,051 |
|
|
|
28,542 |
|
|
|
30,072 |
|
|
||||
Research and development |
|
4,166 |
|
|
|
7,132 |
|
|
|
15,828 |
|
|
|
27,543 |
|
|
||||
Technology operations |
|
7,371 |
|
|
|
8,083 |
|
|
|
29,843 |
|
|
|
31,428 |
|
|
||||
Selling and marketing |
|
5,004 |
|
|
|
5,891 |
|
|
|
19,467 |
|
|
|
23,170 |
|
|
||||
General and administrative |
|
10,046 |
|
|
|
11,531 |
|
|
|
43,102 |
|
|
|
45,787 |
|
|
||||
Depreciation, amortization and accretion |
|
2,503 |
|
|
|
2,250 |
|
|
|
9,056 |
|
|
|
9,249 |
|
|
||||
|
|
25,007 |
|
|
|
8,849 |
|
|
|
25,007 |
|
|
|
8,849 |
|
|
||||
Total operating expenses |
|
61,930 |
|
|
|
51,787 |
|
|
|
170,845 |
|
|
|
176,098 |
|
|
||||
% of total revenue |
|
165.2 |
|
% |
|
130.9 |
|
% |
|
115.3 |
|
% |
|
109.9 |
|
% |
||||
Operating loss |
|
(24,450 |
) |
|
|
(12,239 |
) |
|
|
(22,665 |
) |
|
|
(15,809 |
) |
|
||||
% of total revenue |
|
(65.2 |
) |
% |
|
(30.9 |
) |
% |
|
(15.3 |
) |
% |
|
(9.9 |
) |
% |
||||
Interest income |
|
51 |
|
|
|
350 |
|
|
|
687 |
|
|
|
1,651 |
|
|
||||
Other income |
|
95 |
|
|
|
206 |
|
|
|
208 |
|
|
|
735 |
|
|
||||
Loss before income taxes |
|
(24,304 |
) |
|
|
(11,683 |
) |
|
|
(21,770 |
) |
|
|
(13,423 |
) |
|
||||
(Provision for) benefit from income taxes |
|
(22,306 |
) |
|
|
2,172 |
|
|
|
(22,455 |
) |
|
|
2,658 |
|
|
||||
Net loss |
|
$ |
(46,610 |
) |
|
|
$ |
(9,511 |
) |
|
|
$ |
(44,225 |
) |
|
|
$ |
(10,765 |
) |
|
Basic and diluted net loss per common share |
|
$ |
(2.44 |
) |
|
|
$ |
(0.50 |
) |
|
|
$ |
(2.32 |
) |
|
|
$ |
(0.56 |
) |
|
Basic and diluted weighted average common shares outstanding |
|
19,088,329 |
|
|
|
18,860,020 |
|
|
|
19,028,918 |
|
|
|
19,089,402 |
|
|
||||
Cash dividends declared per common share |
|
0.125 |
|
|
|
0.125 |
|
|
|
0.50 |
|
|
|
0.50 |
|
|
||||
Key statistics: |
|
|
|
|
|
|
|
|
||||||||||||
Units in service |
|
885 |
|
|
|
938 |
|
|
|
885 |
|
|
|
938 |
|
|
||||
Average revenue per unit (ARPU) |
|
$ |
7.30 |
|
|
|
$ |
7.33 |
|
|
|
$ |
7.30 |
|
|
|
$ |
7.34 |
|
|
Bookings |
|
$ |
16,528 |
|
|
|
$ |
21,932 |
|
|
|
$ |
68,994 |
|
|
|
$ |
78,341 |
|
|
Backlog |
|
$ |
50,504 |
|
|
|
$ |
50,553 |
|
|
|
$ |
50,504 |
|
|
|
$ |
50,553 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a) |
||||||||||||||||||||||||||||||||||||||
(Unaudited and in thousands except share, per share amounts and ARPU) |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Wireless |
|
$ |
20,300 |
|
|
|
$ |
20,828 |
|
|
$ |
21,078 |
|
|
$ |
21,386 |
|
|
|
$ |
21,615 |
|
|
|
$ |
21,814 |
|
|
|
$ |
22,127 |
|
|
|
$ |
22,610 |
|
|
Software |
|
17,180 |
|
|
|
16,865 |
|
|
14,661 |
|
|
15,881 |
|
|
|
17,933 |
|
|
|
17,639 |
|
|
|
17,398 |
|
|
|
19,154 |
|
|
||||||||
Total revenue |
|
37,480 |
|
|
|
37,693 |
|
|
35,739 |
|
|
37,267 |
|
|
|
39,548 |
|
|
|
39,453 |
|
|
|
39,525 |
|
|
|
41,764 |
|
|
||||||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Cost of revenue |
|
7,833 |
|
|
|
6,544 |
|
|
5,901 |
|
|
8,264 |
|
|
|
8,051 |
|
|
|
7,190 |
|
|
|
7,239 |
|
|
|
7,592 |
|
|
||||||||
Research and development |
|
4,166 |
|
|
|
3,459 |
|
|
2,754 |
|
|
5,449 |
|
|
|
7,132 |
|
|
|
7,437 |
|
|
|
6,807 |
|
|
|
6,167 |
|
|
||||||||
Technology operations |
|
7,371 |
|
|
|
7,357 |
|
|
7,212 |
|
|
7,904 |
|
|
|
8,083 |
|
|
|
7,805 |
|
|
|
7,866 |
|
|
|
7,674 |
|
|
||||||||
Selling and marketing |
|
5,004 |
|
|
|
4,272 |
|
|
3,831 |
|
|
6,361 |
|
|
|
5,891 |
|
|
|
5,595 |
|
|
|
5,574 |
|
|
|
6,110 |
|
|
||||||||
General and administrative |
|
10,046 |
|
|
|
10,994 |
|
|
10,810 |
|
|
11,251 |
|
|
|
11,531 |
|
|
|
11,813 |
|
|
|
11,696 |
|
|
|
10,747 |
|
|
||||||||
Depreciation, amortization and accretion |
|
2,503 |
|
|
|
2,335 |
|
|
2,072 |
|
|
2,146 |
|
|
|
2,250 |
|
|
|
2,305 |
|
|
|
2,335 |
|
|
|
2,359 |
|
|
||||||||
|
|
25,007 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
8,849 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||||||
Total operating expenses |
|
61,930 |
|
|
|
34,961 |
|
|
32,580 |
|
|
41,375 |
|
|
|
51,787 |
|
|
|
42,145 |
|
|
|
41,517 |
|
|
|
40,649 |
|
|
||||||||
% of total revenue |
|
165.2 |
|
% |
|
92.8 |
% |
|
91.2 |
% |
|
111.0 |
|
% |
|
130.9 |
|
% |
|
106.8 |
|
% |
|
105.0 |
|
% |
|
97.3 |
|
% |
||||||||
Operating (loss) income |
|
(24,450 |
) |
|
|
2,732 |
|
|
3,159 |
|
|
(4,108 |
) |
|
|
(12,239 |
) |
|
|
(2,692 |
) |
|
|
(1,992 |
) |
|
|
1,115 |
|
|
||||||||
% of total revenue |
|
(65.2 |
) |
% |
|
7.2 |
% |
|
8.8 |
% |
|
(11.0 |
) |
% |
|
(30.9 |
) |
% |
|
(6.8 |
) |
% |
|
(5.0 |
) |
% |
|
2.7 |
|
% |
||||||||
Interest income |
|
51 |
|
|
|
127 |
|
|
146 |
|
|
363 |
|
|
|
350 |
|
|
|
399 |
|
|
|
452 |
|
|
|
449 |
|
|
||||||||
Other income (expense) |
|
95 |
|
|
|
151 |
|
|
101 |
|
|
(137 |
) |
|
|
206 |
|
|
|
163 |
|
|
|
602 |
|
|
|
(236 |
) |
|
||||||||
(Loss) income before income taxes |
|
(24,304 |
) |
|
|
3,010 |
|
|
3,406 |
|
|
(3,882 |
) |
|
|
(11,683 |
) |
|
|
(2,130 |
) |
|
|
(938 |
) |
|
|
1,328 |
|
|
||||||||
(Provision for) benefit from income taxes |
|
(22,306 |
) |
|
|
155 |
|
|
353 |
|
|
(657 |
) |
|
|
2,172 |
|
|
|
804 |
|
|
|
268 |
|
|
|
(586 |
) |
|
||||||||
Net (loss) income |
|
$ |
(46,610 |
) |
|
|
$ |
3,165 |
|
|
$ |
3,759 |
|
|
$ |
(4,539 |
) |
|
|
$ |
(9,511 |
) |
|
|
$ |
(1,326 |
) |
|
|
$ |
(670 |
) |
|
|
$ |
742 |
|
|
Basic net (loss) income per common share |
|
$ |
(2.44 |
) |
|
|
$ |
0.17 |
|
|
$ |
0.20 |
|
|
$ |
(0.24 |
) |
|
|
$ |
(0.50 |
) |
|
|
$ |
(0.07 |
) |
|
|
$ |
(0.03 |
) |
|
|
$ |
0.04 |
|
|
Diluted net (loss) income per common share |
|
(2.44 |
) |
|
|
0.16 |
|
|
0.20 |
|
|
(0.24 |
) |
|
|
(0.50 |
) |
|
|
(0.07 |
) |
|
|
(0.03 |
) |
|
|
0.04 |
|
|
||||||||
Basic weighted average common shares outstanding |
|
19,088,329 |
|
|
|
19,051,502 |
|
|
19,016,853 |
|
|
18,958,716 |
|
|
|
18,860,020 |
|
|
|
19,086,811 |
|
|
|
19,217,866 |
|
|
|
19,196,970 |
|
|
||||||||
Diluted weighted average common shares outstanding |
|
19,088,329 |
|
|
|
19,208,452 |
|
|
19,115,148 |
|
|
18,958,716 |
|
|
|
18,860,020 |
|
|
|
19,086,811 |
|
|
|
19,217,866 |
|
|
|
19,356,712 |
|
|
||||||||
Key statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Units in service |
|
885 |
|
|
|
898 |
|
|
915 |
|
|
926 |
|
|
|
938 |
|
|
|
955 |
|
|
|
977 |
|
|
|
982 |
|
|
||||||||
Average revenue per unit (ARPU) |
|
$ |
7.30 |
|
|
|
$ |
7.34 |
|
|
$ |
7.24 |
|
|
$ |
7.31 |
|
|
|
$ |
7.33 |
|
|
|
$ |
7.32 |
|
|
|
$ |
7.26 |
|
|
|
$ |
7.32 |
|
|
Bookings |
|
$ |
16,528 |
|
|
|
$ |
21,414 |
|
|
$ |
15,411 |
|
|
$ |
15,639 |
|
|
|
$ |
21,932 |
|
|
|
$ |
20,421 |
|
|
|
$ |
21,334 |
|
|
|
$ |
14,654 |
|
|
Backlog |
|
$ |
50,504 |
|
|
|
$ |
51,708 |
|
|
$ |
48,441 |
|
|
$ |
49,052 |
|
|
|
$ |
50,553 |
|
|
|
$ |
42,604 |
|
|
|
$ |
39,718 |
|
|
|
$ |
37,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||||||||||||||||||||
|
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (a) |
||||||||||
(In thousands) |
||||||||||
|
|
|
|
|
||||||
|
|
|
|
|
||||||
ASSETS |
|
|
|
|
||||||
Current assets: |
|
|
|
|
||||||
Cash and cash equivalents |
|
$ |
48,729 |
|
|
|
$ |
47,361 |
|
|
Short term investments |
|
29,995 |
|
|
|
29,899 |
|
|
||
Accounts receivable, net |
|
29,934 |
|
|
|
30,174 |
|
|
||
Prepaid expenses |
|
8,958 |
|
|
|
7,517 |
|
|
||
Other current assets |
|
1,269 |
|
|
|
2,714 |
|
|
||
Total current assets |
|
118,885 |
|
|
|
117,665 |
|
|
||
Non-current assets: |
|
|
|
|
||||||
Property and equipment, net |
|
7,815 |
|
|
|
8,000 |
|
|
||
Operating lease right-of-use assets |
|
14,016 |
|
|
|
16,317 |
|
|
||
Capitalized software development, net |
|
10,179 |
|
|
|
— |
|
|
||
|
|
99,175 |
|
|
|
124,182 |
|
|
||
Intangible assets, net |
|
417 |
|
|
|
2,917 |
|
|
||
Deferred income tax assets, net |
|
25,826 |
|
|
|
48,983 |
|
|
||
Other non-current assets |
|
978 |
|
|
|
1,808 |
|
|
||
Total non-current assets |
|
158,406 |
|
|
|
202,207 |
|
|
||
Total assets |
|
$ |
277,291 |
|
|
|
$ |
319,872 |
|
|
|
|
|
|
|
||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
||||||
Accounts payable |
|
$ |
6,685 |
|
|
|
$ |
3,615 |
|
|
Accrued compensation and benefits |
|
14,103 |
|
|
|
11,680 |
|
|
||
Deferred revenue |
|
27,686 |
|
|
|
25,944 |
|
|
||
Operating lease liabilities |
|
5,264 |
|
|
|
5,437 |
|
|
||
Other current liabilities |
|
3,702 |
|
|
|
4,507 |
|
|
||
Total current liabilities |
|
57,440 |
|
|
|
51,183 |
|
|
||
Non-current liabilities: |
|
|
|
|
||||||
Asset retirement obligations |
|
7,289 |
|
|
|
6,061 |
|
|
||
Operating lease liabilities |
|
9,456 |
|
|
|
11,575 |
|
|
||
Other non-current liabilities |
|
2,493 |
|
|
|
959 |
|
|
||
Total non-current liabilities |
|
19,238 |
|
|
|
18,595 |
|
|
||
Total liabilities |
|
76,678 |
|
|
|
69,778 |
|
|
||
Commitments and contingencies |
|
|
|
|
||||||
Stockholders' equity: |
|
|
|
|
||||||
Preferred stock |
|
$ |
— |
|
|
|
$ |
— |
|
|
Common stock |
|
2 |
|
|
|
2 |
|
|
||
Additional paid-in capital |
|
91,780 |
|
|
|
86,874 |
|
|
||
Accumulated other comprehensive loss |
|
(1,452 |
) |
|
|
(1,601 |
) |
|
||
Retained earnings |
|
110,283 |
|
|
|
164,819 |
|
|
||
Total stockholders' equity |
|
200,613 |
|
|
|
250,094 |
|
|
||
Total liabilities and stockholders' equity |
|
$ |
277,291 |
|
|
|
$ |
319,872 |
|
|
|
|
|
|
|
||||||
(a) Slight variations in totals are due to rounding. |
||||||||||
|
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a) |
||||||||||
(Unaudited and in thousands) |
||||||||||
|
|
|
|
|
||||||
|
|
For the year ended |
||||||||
|
|
|
|
|
||||||
Operating activities: |
|
|
|
|
||||||
Net loss |
|
$ |
(44,225 |
) |
|
|
$ |
(10,765 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
||||||
Depreciation, amortization and accretion |
|
9,056 |
|
|
|
9,249 |
|
|
||
|
|
25,007 |
|
|
|
8,849 |
|
|
||
Valuation allowance |
|
22,108 |
|
|
|
— |
|
|
||
Deferred income tax expense (benefit) |
|
438 |
|
|
|
(3,253 |
) |
|
||
Stock based compensation |
|
5,508 |
|
|
|
3,643 |
|
|
||
Provisions for doubtful accounts, service credits, and other |
|
1,212 |
|
|
|
694 |
|
|
||
Changes in assets and liabilities: |
|
|
|
|
||||||
Accounts receivable |
|
(1,588 |
) |
|
|
964 |
|
|
||
Prepaid expenses, inventory and other assets |
|
1,445 |
|
|
|
2,913 |
|
|
||
Accounts payable, accrued liabilities and other liabilities |
|
4,027 |
|
|
|
(643 |
) |
|
||
Deferred revenue |
|
3,175 |
|
|
|
42 |
|
|
||
Net cash provided by operating activities |
|
26,163 |
|
|
|
11,693 |
|
|
||
Investing activities: |
|
|
|
|
||||||
Purchases of property and equipment |
|
(3,455 |
) |
|
|
(4,837 |
) |
|
||
Capitalized software development |
|
(11,252 |
) |
|
|
— |
|
|
||
Purchase of short-term investments |
|
(59,864 |
) |
|
|
(59,385 |
) |
|
||
Maturity of short-term investments |
|
60,000 |
|
|
|
34,000 |
|
|
||
Net cash used in investing activities |
|
(14,571 |
) |
|
|
(30,222 |
) |
|
||
Financing activities: |
|
|
|
|
||||||
Cash distributions to stockholders |
|
(9,771 |
) |
|
|
(9,819 |
) |
|
||
Purchase of common stock (including commissions) |
|
— |
|
|
|
(6,575 |
) |
|
||
Proceeds from issuance of common stock under the Employee Stock Purchase Plan |
|
301 |
|
|
|
258 |
|
|
||
Purchase of common stock for tax withholding on vested equity awards |
|
(903 |
) |
|
|
(1,017 |
) |
|
||
Net cash used in financing activities |
|
(10,373 |
) |
|
|
(17,153 |
) |
|
||
Effect of exchange rate on cash |
|
149 |
|
|
|
(300 |
) |
|
||
Net increase (decrease) in cash and cash equivalents |
|
1,368 |
|
|
|
(35,982 |
) |
|
||
Cash and cash equivalents, beginning of period |
|
47,361 |
|
|
|
83,343 |
|
|
||
Cash and cash equivalents, end of period |
|
$ |
48,729 |
|
|
|
$ |
47,361 |
|
|
Supplemental disclosure: |
|
|
|
|
||||||
Income taxes paid |
|
$ |
1 |
|
|
|
$ |
901 |
|
|
|
|
|
|
|
||||||
(a) Slight variations in totals are due to rounding. |
||||||||||
|
||||||||||||||||||||||||||||||||
CONSOLIDATED REVENUE |
||||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION (a) |
||||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Paging |
|
$ |
19,513 |
|
|
$ |
19,961 |
|
|
$ |
19,990 |
|
|
$ |
20,451 |
|
|
$ |
20,826 |
|
|
$ |
21,212 |
|
|
$ |
21,342 |
|
|
$ |
21,687 |
|
Non-paging |
|
$ |
787 |
|
|
$ |
867 |
|
|
$ |
1,088 |
|
|
$ |
935 |
|
|
$ |
789 |
|
|
$ |
602 |
|
|
$ |
785 |
|
|
$ |
923 |
|
Total wireless revenue |
|
$ |
20,300 |
|
|
$ |
20,828 |
|
|
$ |
21,078 |
|
|
$ |
21,386 |
|
|
$ |
21,615 |
|
|
$ |
21,814 |
|
|
$ |
22,127 |
|
|
$ |
22,610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
License |
|
$ |
1,486 |
|
|
$ |
1,988 |
|
|
$ |
749 |
|
|
$ |
955 |
|
|
$ |
1,711 |
|
|
$ |
2,723 |
|
|
$ |
1,676 |
|
|
$ |
2,840 |
|
Services |
|
$ |
4,778 |
|
|
$ |
4,772 |
|
|
$ |
3,812 |
|
|
$ |
4,549 |
|
|
$ |
4,947 |
|
|
$ |
4,202 |
|
|
$ |
4,835 |
|
|
$ |
5,206 |
|
Equipment |
|
$ |
961 |
|
|
$ |
554 |
|
|
$ |
601 |
|
|
$ |
725 |
|
|
$ |
1,125 |
|
|
$ |
689 |
|
|
$ |
842 |
|
|
$ |
963 |
|
Subscription |
|
$ |
42 |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Operations revenue |
|
$ |
7,267 |
|
|
$ |
7,338 |
|
|
$ |
5,162 |
|
|
$ |
6,229 |
|
|
$ |
7,783 |
|
|
$ |
7,614 |
|
|
$ |
7,353 |
|
|
$ |
9,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Maintenance revenue |
|
$ |
9,913 |
|
|
$ |
9,527 |
|
|
$ |
9,499 |
|
|
$ |
9,652 |
|
|
$ |
10,150 |
|
|
$ |
10,025 |
|
|
$ |
10,045 |
|
|
$ |
10,145 |
|
Total software revenue |
|
$ |
17,180 |
|
|
$ |
16,865 |
|
|
$ |
14,661 |
|
|
$ |
15,881 |
|
|
$ |
17,933 |
|
|
$ |
17,639 |
|
|
$ |
17,398 |
|
|
$ |
19,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total revenue |
|
$ |
37,480 |
|
|
$ |
37,693 |
|
|
$ |
35,739 |
|
|
$ |
37,267 |
|
|
$ |
39,548 |
|
|
$ |
39,453 |
|
|
$ |
39,525 |
|
|
$ |
41,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||
CONSOLIDATED OPERATING EXPENSES |
|||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION (a) |
|||||||||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
|||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
For the three months ended |
|||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Payroll and related |
|
$ |
5,447 |
|
|
|
$ |
4,941 |
|
|
|
$ |
4,350 |
|
|
|
$ |
5,785 |
|
|
|
$ |
5,222 |
|
|
$ |
5,099 |
|
|
$ |
4,749 |
|
|
|
$ |
4,931 |
|
Cost of sales |
|
1,740 |
|
|
|
1,064 |
|
|
|
1,098 |
|
|
|
1,940 |
|
|
|
2,278 |
|
|
1,567 |
|
|
1,900 |
|
|
|
2,080 |
|
||||||||
Stock-based compensation |
|
136 |
|
|
|
148 |
|
|
|
134 |
|
|
|
119 |
|
|
|
42 |
|
|
21 |
|
|
97 |
|
|
|
107 |
|
||||||||
Other |
|
510 |
|
|
|
391 |
|
|
|
319 |
|
|
|
420 |
|
|
|
509 |
|
|
503 |
|
|
493 |
|
|
|
474 |
|
||||||||
Total cost of revenue |
|
7,833 |
|
|
|
6,544 |
|
|
|
5,901 |
|
|
|
8,264 |
|
|
|
8,051 |
|
|
7,190 |
|
|
7,239 |
|
|
|
7,592 |
|
||||||||
Research and development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Payroll and related |
|
4,358 |
|
|
|
4,147 |
|
|
|
4,115 |
|
|
|
4,761 |
|
|
|
5,056 |
|
|
5,083 |
|
|
4,639 |
|
|
|
4,263 |
|
||||||||
Outside services |
|
2,358 |
|
|
|
2,113 |
|
|
|
1,803 |
|
|
|
1,584 |
|
|
|
1,742 |
|
|
2,027 |
|
|
1,912 |
|
|
|
1,745 |
|
||||||||
Capitalized software development |
|
(3,046 |
) |
|
|
(2,906 |
) |
|
|
(3,596 |
) |
|
|
(1,705 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
||||||||
Stock-based compensation |
|
246 |
|
|
|
240 |
|
|
|
243 |
|
|
|
236 |
|
|
|
113 |
|
|
102 |
|
|
84 |
|
|
|
11 |
|
||||||||
Other |
|
250 |
|
|
|
(135 |
) |
|
|
189 |
|
|
|
573 |
|
|
|
221 |
|
|
225 |
|
|
172 |
|
|
|
148 |
|
||||||||
Total research and development |
|
4,166 |
|
|
|
3,459 |
|
|
|
2,754 |
|
|
|
5,449 |
|
|
|
7,132 |
|
|
7,437 |
|
|
6,807 |
|
|
|
6,167 |
|
||||||||
Technology operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Payroll and related |
|
2,467 |
|
|
|
2,246 |
|
|
|
2,213 |
|
|
|
2,712 |
|
|
|
2,656 |
|
|
2,823 |
|
|
2,662 |
|
|
|
2,647 |
|
||||||||
Site rent |
|
3,313 |
|
|
|
3,467 |
|
|
|
3,399 |
|
|
|
3,398 |
|
|
|
3,669 |
|
|
3,269 |
|
|
3,480 |
|
|
|
3,296 |
|
||||||||
Telecommunications |
|
857 |
|
|
|
949 |
|
|
|
961 |
|
|
|
1,001 |
|
|
|
1,026 |
|
|
1,016 |
|
|
1,019 |
|
|
|
996 |
|
||||||||
Stock-based compensation |
|
48 |
|
|
|
52 |
|
|
|
47 |
|
|
|
43 |
|
|
|
32 |
|
|
30 |
|
|
30 |
|
|
|
30 |
|
||||||||
Other |
|
686 |
|
|
|
643 |
|
|
|
592 |
|
|
|
750 |
|
|
|
700 |
|
|
667 |
|
|
675 |
|
|
|
705 |
|
||||||||
Total technology operations |
|
7,371 |
|
|
|
7,357 |
|
|
|
7,212 |
|
|
|
7,904 |
|
|
|
8,083 |
|
|
7,805 |
|
|
7,866 |
|
|
|
7,674 |
|
||||||||
Selling and marketing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Payroll and related |
|
2,912 |
|
|
|
2,773 |
|
|
|
2,538 |
|
|
|
3,583 |
|
|
|
3,382 |
|
|
3,524 |
|
|
3,329 |
|
|
|
3,273 |
|
||||||||
Commissions |
|
1,178 |
|
|
|
1,059 |
|
|
|
852 |
|
|
|
1,212 |
|
|
|
1,158 |
|
|
1,114 |
|
|
1,298 |
|
|
|
1,424 |
|
||||||||
Stock-based compensation |
|
192 |
|
|
|
208 |
|
|
|
194 |
|
|
|
172 |
|
|
|
164 |
|
|
137 |
|
|
128 |
|
|
|
161 |
|
||||||||
Advertising and events |
|
539 |
|
|
|
151 |
|
|
|
160 |
|
|
|
784 |
|
|
|
1,034 |
|
|
703 |
|
|
656 |
|
|
|
933 |
|
||||||||
Other |
|
183 |
|
|
|
81 |
|
|
|
87 |
|
|
|
610 |
|
|
|
153 |
|
|
117 |
|
|
163 |
|
|
|
319 |
|
||||||||
Total selling and marketing |
|
5,004 |
|
|
|
4,272 |
|
|
|
3,831 |
|
|
|
6,361 |
|
|
|
5,891 |
|
|
5,595 |
|
|
5,574 |
|
|
|
6,110 |
|
||||||||
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Payroll and related |
|
3,373 |
|
|
|
3,476 |
|
|
|
3,355 |
|
|
|
4,134 |
|
|
|
3,974 |
|
|
4,220 |
|
|
4,136 |
|
|
|
4,041 |
|
||||||||
Stock-based compensation |
|
726 |
|
|
|
968 |
|
|
|
744 |
|
|
|
612 |
|
|
|
770 |
|
|
674 |
|
|
690 |
|
|
|
219 |
|
||||||||
Facility rent, office, and technology costs |
|
2,412 |
|
|
|
178 |
|
|
|
628 |
|
|
|
43 |
|
|
|
56 |
|
|
402 |
|
|
(96 |
) |
|
|
308 |
|
||||||||
Outside services |
|
1,584 |
|
|
|
2,259 |
|
|
|
2,276 |
|
|
|
2,068 |
|
|
|
1,952 |
|
|
2,369 |
|
|
2,485 |
|
|
|
2,294 |
|
||||||||
Taxes, licenses and permits |
|
484 |
|
|
|
2,148 |
|
|
|
2,043 |
|
|
|
2,036 |
|
|
|
2,350 |
|
|
2,004 |
|
|
2,306 |
|
|
|
1,776 |
|
||||||||
Bad debt |
|
202 |
|
|
|
994 |
|
|
|
804 |
|
|
|
859 |
|
|
|
1,000 |
|
|
888 |
|
|
863 |
|
|
|
921 |
|
||||||||
Other |
|
1,265 |
|
|
|
971 |
|
|
|
960 |
|
|
|
1,499 |
|
|
|
1,429 |
|
|
1,256 |
|
|
1,312 |
|
|
|
1,188 |
|
||||||||
Total general and administrative |
|
10,046 |
|
|
|
10,994 |
|
|
|
10,810 |
|
|
|
11,251 |
|
|
|
11,531 |
|
|
11,813 |
|
|
11,696 |
|
|
|
10,747 |
|
||||||||
Depreciation, amortization and accretion |
|
2,503 |
|
|
|
2,335 |
|
|
|
2,072 |
|
|
|
2,146 |
|
|
|
2,250 |
|
|
2,305 |
|
|
2,335 |
|
|
|
2,359 |
|
||||||||
|
|
25,007 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,849 |
|
|
— |
|
|
— |
|
|
|
— |
|
||||||||
Operating expenses |
|
$ |
61,930 |
|
|
|
$ |
34,961 |
|
|
|
$ |
32,580 |
|
|
|
$ |
41,375 |
|
|
|
$ |
51,787 |
|
|
$ |
42,145 |
|
|
$ |
41,517 |
|
|
|
$ |
40,649 |
|
Capital expenditures |
|
$ |
638 |
|
|
|
$ |
934 |
|
|
|
$ |
846 |
|
|
|
$ |
1,063 |
|
|
|
$ |
679 |
|
|
$ |
1,378 |
|
|
$ |
1,495 |
|
|
|
$ |
1,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
(a) Slight variations in totals are due to rounding. |
|||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
UNITS IN SERVICE ACTIVITY, MARKET SEGMENT, CHURN |
||||||||||||||||||||||||||||||||||||||||
AND AVERAGE REVENUE PER UNIT (ARPU) (a) |
||||||||||||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Paging units in service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Beginning units in service (000's) |
|
898 |
|
|
|
915 |
|
|
|
926 |
|
|
|
938 |
|
|
|
955 |
|
|
|
977 |
|
|
|
982 |
|
|
|
992 |
|
|
||||||||
Gross placements |
|
20 |
|
|
|
25 |
|
|
|
35 |
|
|
|
24 |
|
|
|
22 |
|
|
|
28 |
|
|
|
35 |
|
|
|
27 |
|
|
||||||||
Gross disconnects |
|
(33 |
) |
|
|
(42 |
) |
|
|
(46 |
) |
|
|
(36 |
) |
|
|
(39 |
) |
|
|
(50 |
) |
|
|
(40 |
) |
|
|
(37 |
) |
|
||||||||
Net change |
|
(13 |
) |
|
|
(17 |
) |
|
|
(11 |
) |
|
|
(12 |
) |
|
|
(17 |
) |
|
|
(22 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
|
||||||||
Ending units in service |
|
885 |
|
|
|
898 |
|
|
|
915 |
|
|
|
926 |
|
|
|
938 |
|
|
|
955 |
|
|
|
977 |
|
|
|
982 |
|
|
||||||||
End of period units in service % of total (b) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Healthcare |
|
83.6 |
|
% |
|
83.7 |
|
% |
|
83.6 |
|
% |
|
82.6 |
|
% |
|
82.4 |
|
% |
|
81.7 |
|
% |
|
81.7 |
|
% |
|
81.6 |
|
% |
||||||||
Government |
|
5.3 |
|
% |
|
5.3 |
|
% |
|
5.5 |
|
% |
|
5.4 |
|
% |
|
5.4 |
|
% |
|
5.5 |
|
% |
|
5.6 |
|
% |
|
5.8 |
|
% |
||||||||
Large enterprise |
|
4.3 |
|
% |
|
4.3 |
|
% |
|
4.4 |
|
% |
|
5.5 |
|
% |
|
5.5 |
|
% |
|
6.1 |
|
% |
|
5.9 |
|
% |
|
5.9 |
|
% |
||||||||
Other (b) |
|
6.8 |
|
% |
|
6.6 |
|
% |
|
6.6 |
|
% |
|
6.5 |
|
% |
|
6.6 |
|
% |
|
6.7 |
|
% |
|
6.8 |
|
% |
|
6.7 |
|
% |
||||||||
Total |
|
100.0 |
|
% |
|
100.0 |
|
% |
|
100.0 |
|
% |
|
100.0 |
|
% |
|
100.0 |
|
% |
|
100.0 |
|
% |
|
100.0 |
|
% |
|
100.0 |
|
% |
||||||||
Account size ending units in service (000's) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
1 to 100 units |
|
61 |
|
|
|
63 |
|
|
|
65 |
|
|
|
67 |
|
|
|
69 |
|
|
|
72 |
|
|
|
74 |
|
|
|
77 |
|
|
||||||||
101 to 1,000 units |
|
167 |
|
|
|
167 |
|
|
|
165 |
|
|
|
171 |
|
|
|
173 |
|
|
|
175 |
|
|
|
179 |
|
|
|
186 |
|
|
||||||||
>1,000 units |
|
657 |
|
|
|
668 |
|
|
|
685 |
|
|
|
688 |
|
|
|
696 |
|
|
|
708 |
|
|
|
724 |
|
|
|
719 |
|
|
||||||||
Total |
|
885 |
|
|
|
898 |
|
|
|
915 |
|
|
|
926 |
|
|
|
938 |
|
|
|
955 |
|
|
|
977 |
|
|
|
982 |
|
|
||||||||
Account size net loss rate (c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
1 to 100 units |
|
(3.2 |
) |
% |
|
(2.9 |
) |
% |
|
(3.1 |
) |
% |
|
(3.0 |
) |
% |
|
(3.8 |
) |
% |
|
(2.1 |
) |
% |
|
(3.2 |
) |
% |
|
(2.3 |
) |
% |
||||||||
101 to 1,000 units |
|
— |
|
% |
|
1.5 |
|
% |
|
(4.2 |
) |
% |
|
(1.0 |
) |
% |
|
(1.0 |
) |
% |
|
(2.4 |
) |
% |
|
(3.9 |
) |
% |
|
(2.3 |
) |
% |
||||||||
>1,000 units |
|
(1.6 |
) |
% |
|
(2.5 |
) |
% |
|
(0.4 |
) |
% |
|
(1.2 |
) |
% |
|
(1.8 |
) |
% |
|
(2.2 |
) |
% |
|
0.7 |
|
% |
|
(1.1 |
) |
% |
||||||||
Total |
|
(1.4 |
) |
% |
|
(1.9 |
) |
% |
|
(1.3 |
) |
% |
|
(1.3 |
) |
% |
|
(1.8 |
) |
% |
|
(2.2 |
) |
% |
|
(0.5 |
) |
% |
|
(1.1 |
) |
% |
||||||||
Account size ARPU |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
1 to 100 units |
|
$ |
11.62 |
|
|
|
$ |
11.80 |
|
|
|
$ |
11.65 |
|
|
|
$ |
12.01 |
|
|
|
$ |
11.99 |
|
|
|
$ |
11.84 |
|
|
|
$ |
12.00 |
|
|
|
$ |
11.90 |
|
|
101 to 1,000 units |
|
8.35 |
|
|
|
8.37 |
|
|
|
8.24 |
|
|
|
8.34 |
|
|
|
8.31 |
|
|
|
8.41 |
|
|
|
8.47 |
|
|
|
8.35 |
|
|
||||||||
>1,000 units |
|
6.62 |
|
|
|
6.67 |
|
|
|
6.57 |
|
|
|
6.59 |
|
|
|
6.62 |
|
|
|
6.59 |
|
|
|
6.47 |
|
|
|
6.57 |
|
|
||||||||
Total |
|
$ |
7.30 |
|
|
|
$ |
7.34 |
|
|
|
$ |
7.24 |
|
|
|
$ |
7.31 |
|
|
|
$ |
7.33 |
|
|
|
$ |
7.32 |
|
|
|
$ |
7.26 |
|
|
|
$ |
7.32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||||||||||||||||||||||
(b) Other includes hospitality, resort and indirect units |
||||||||||||||||||||||||||||||||||||||||
(c) Net loss rate is net current period placements and disconnected units in service divided by prior period ending units in service. |
||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA (a) |
||||||||||||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Reconciliation of net (loss) income to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Net (loss) income |
|
$ |
(46,610 |
) |
|
|
$ |
3,165 |
|
|
|
$ |
3,759 |
|
|
|
$ |
(4,539 |
) |
|
|
$ |
(9,511 |
) |
|
|
$ |
(1,326 |
) |
|
|
$ |
(670 |
) |
|
|
$ |
742 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
(Benefit from) provision for income taxes |
|
22,306 |
|
|
|
(155 |
) |
|
|
(353 |
) |
|
|
657 |
|
|
|
(2,172 |
) |
|
|
(804 |
) |
|
|
(268 |
) |
|
|
586 |
|
|
||||||||
Other expenses (income) |
|
(95 |
) |
|
|
(151 |
) |
|
|
(101 |
) |
|
|
137 |
|
|
|
(206 |
) |
|
|
(163 |
) |
|
|
(602 |
) |
|
|
236 |
|
|
||||||||
Interest (income) expenses |
|
(51 |
) |
|
|
(127 |
) |
|
|
(146 |
) |
|
|
(363 |
) |
|
|
(350 |
) |
|
|
(399 |
) |
|
|
(452 |
) |
|
|
(449 |
) |
|
||||||||
Operating (loss) income |
|
(24,450 |
) |
|
|
2,732 |
|
|
|
3,159 |
|
|
|
(4,108 |
) |
|
|
(12,239 |
) |
|
|
(2,692 |
) |
|
|
(1,992 |
) |
|
|
1,115 |
|
|
||||||||
Depreciation, amortization and accretion |
|
2,503 |
|
|
|
2,335 |
|
|
|
2,072 |
|
|
|
2,146 |
|
|
|
2,250 |
|
|
|
2,305 |
|
|
|
2,335 |
|
|
|
2,359 |
|
|
||||||||
EBITDA |
|
$ |
(21,947 |
) |
|
|
$ |
5,067 |
|
|
|
$ |
5,231 |
|
|
|
$ |
(1,962 |
) |
|
|
$ |
(9,989 |
) |
|
|
$ |
(387 |
) |
|
|
$ |
343 |
|
|
|
$ |
3,474 |
|
|
Capitalized software development costs |
|
(3,046 |
) |
|
|
(2,906 |
) |
|
|
(3,596 |
) |
|
|
(1,705 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||||||
Stock-based compensation |
|
1,348 |
|
|
|
1,616 |
|
|
|
1,362 |
|
|
|
1,182 |
|
|
|
1,121 |
|
|
|
964 |
|
|
|
1,029 |
|
|
|
528 |
|
|
||||||||
|
|
25,007 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,849 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||||||
Adjusted EBITDA |
|
$ |
1,362 |
|
|
|
$ |
3,777 |
|
|
|
$ |
2,997 |
|
|
|
$ |
(2,485 |
) |
|
|
$ |
(19 |
) |
|
|
$ |
577 |
|
|
|
$ |
1,372 |
|
|
|
$ |
4,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
For the year ended |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Reconciliation of net loss to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Net loss |
|
$ |
(44,225 |
) |
|
|
$ |
(10,765 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Provision for (benefit from) income taxes |
|
22,455 |
|
|
|
(2,658 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Other income |
|
(208 |
) |
|
|
(735 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interest income |
|
(687 |
) |
|
|
(1,651 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Operating loss |
|
(22,665 |
) |
|
|
(15,809 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Depreciation, amortization and accretion |
|
9,056 |
|
|
|
9,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
EBITDA |
|
$ |
(13,609 |
) |
|
|
$ |
(6,560 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Capitalized software development costs |
|
(11,252 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Stock-based compensation |
|
5,508 |
|
|
|
3,643 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
25,007 |
|
|
|
8,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Adjusted EBITDA |
|
$ |
5,654 |
|
|
|
$ |
5,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
RECONCILIATION OF OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES (a) |
||||||||||||||||||||||||||||||||||||||||
(Unaudited and in thousands) |
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
For the three months ended |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Operating expenses |
|
$ |
61,930 |
|
|
|
$ |
34,961 |
|
|
|
$ |
32,580 |
|
|
|
$ |
41,375 |
|
|
|
$ |
51,787 |
|
|
|
$ |
42,145 |
|
|
|
$ |
41,517 |
|
|
|
$ |
40,649 |
|
|
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Depreciation, amortization and accretion |
|
(2,503 |
) |
|
|
(2,335 |
) |
|
|
(2,072 |
) |
|
|
(2,146 |
) |
|
|
(2,250 |
) |
|
|
(2,305 |
) |
|
|
(2,335 |
) |
|
|
(2,359 |
) |
|
||||||||
|
|
(25,007 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,849 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||||||
Capitalized software development costs |
|
3,046 |
|
|
|
2,906 |
|
|
|
3,596 |
|
|
|
1,705 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
||||||||
Adjusted operating expenses |
|
$ |
37,466 |
|
|
|
$ |
35,532 |
|
|
|
$ |
34,104 |
|
|
|
$ |
40,934 |
|
|
|
$ |
40,688 |
|
|
|
$ |
39,840 |
|
|
|
$ |
39,182 |
|
|
|
$ |
38,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
For the year ended |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Operating expenses |
|
$ |
170,845 |
|
|
|
$ |
176,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Add back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Depreciation, amortization and accretion |
|
(9,056 |
) |
|
|
(9,249 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
(25,007 |
) |
|
|
(8,849 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Capitalized software development costs |
|
11,252 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Adjusted operating expenses |
|
$ |
148,034 |
|
|
|
$ |
158,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
(a) Slight variations in totals are due to rounding. |
||||||||||||||||||||||||||||||||||||||||
|
||||||||||
2021 FINANCIAL GUIDANCE |
||||||||||
(Unaudited and in millions) |
||||||||||
|
||||||||||
|
|
|
||||||||
|
|
From |
|
To |
||||||
Revenues |
|
|
|
|
||||||
Wireless |
|
$ |
74.0 |
|
|
|
$ |
80.0 |
|
|
Software |
|
58.2 |
|
|
|
67.2 |
|
|
||
Total Revenues |
|
$ |
132.2 |
|
|
|
$ |
147.2 |
|
|
|
|
|
|
|
||||||
Adjusted Operating Expenses (a) |
|
$ |
142.7 |
|
|
|
$ |
150.7 |
|
|
|
|
|
|
|
||||||
Capital Expenditures |
|
$ |
2.7 |
|
|
|
$ |
6.7 |
|
|
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
|
|
|
|
||||||
RECONCILIATION OF OPERATING EXPENSES TO ADJUSTED OPERATING EXPENSES (a) |
||||||||||
(Unaudited and in millions) |
||||||||||
|
|
|
|
|
||||||
|
|
|
||||||||
|
|
From |
|
To |
||||||
Operating expenses |
|
$ |
141.4 |
|
|
|
$ |
149.4 |
|
|
Add back: |
|
|
|
|
||||||
Depreciation, amortization and accretion |
|
(10.2 |
) |
|
|
(10.2 |
) |
|
||
|
|
— |
|
|
|
— |
|
|
||
Capitalized software development costs |
|
11.5 |
|
|
|
11.5 |
|
|
||
Adjusted operating expenses |
|
$ |
142.7 |
|
|
|
$ |
150.7 |
|
|
|
|
|
|
|
||||||
(a) Adjusted operating expenses exclude depreciation, amortization and accretion, goodwill impairment and capitalized software development costs. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210217005910/en/
952-567-0295
Al.Galgano@spok.com
Source: