DALLAS, Dec. 9, 2015 (GLOBE NEWSWIRE) — Xtera Communications, Inc. (NASDAQ:XCOM), a provider of high-capacity optical transport solutions, today announced financial results for its fiscal fourth quarter and full year ended September 30, 2015. Revenue for the fourth quarter of fiscal 2015 was $15.0 million, an increase of 132% compared to $6.5 million for the fourth quarter of 2014.
“2015 was a year of significant progress for Xtera as we more than doubled our revenue, successfully demonstrated in a real world network the industry’s highest capacity/longest reach solution at 64 Tbit/s per fiber pair with reach of over 1,500 km, began commercial sales of our Submarine repeater, and strengthened our balance sheet with our IPO last month,” said Jon Hopper, Xtera president and CEO.
The company’s net loss for the fiscal fourth quarter of 2015 was $6.6 million, or $5.49 per basic and fully diluted share, compared to a net loss of $15.0 million, or $10.12 per basic and fully diluted share, for the fourth quarter of 2014. Basic and fully diluted net loss per share for the fiscal fourth quarter ended September 30, 2015 and 2014 reflect 1.9 million and 1.8 million common shares outstanding, respectively, and do not include shares issued in conjunction with the company’s initial public offering and the conversion of preferred shares into common shares in November 2015.
Conference Call
In conjunction with this announcement, Xtera will host a conference call to discuss its results at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) on Wednesday, December 9, 2015. Interested parties can listen to a live webcast of the conference call by visiting the Investor Relations section of Xtera’s website at http://ir.xtera.com. Dial in information for the conference call is available by registering at http://dpregister.com/10076293. The conference call and webcast will include forward-looking information. A replay of the conference call will also be available on the Investor Relations section of Xtera’s website at http://ir.xtera.com following the completion of the call.
About Xtera Communications, Inc.
Xtera Communications, Inc. (NASDAQ:XCOM) is a leading provider of high-capacity, cost-effective optical transport solutions, supporting the high growth in global demand for bandwidth. Xtera sells solutions to telecommunications service providers, content service providers, enterprises and government entities worldwide. Xtera’s proprietary Wise RamanTM optical amplification technology leads to capacity and reach performance advantages over competitive products. Xtera’s solutions enable cost-effective capacity to meet customers’ bandwidth requirements of today and to support their increasing bandwidth demand fueled by the development of data centers and related cloud-based services.
For more information, visit www.xtera.com, contact [email protected] or connect via LinkedIn, Twitter, Facebook and YouTube.
| Xtera Communications, Inc. | ||||
| Condensed Consolidated Statement of Operations | ||||
| (In thousands, except per share data) | ||||
| (Unaudited) | ||||
| Three Months Ended | Fiscal Year Ended | |||
| September 30, | September 30, | September 30, | September 30, | |
| 2015 | 2014 | 2015 | 2014 | |
| Revenue: | ||||
| Products | $ 13,710 | $ 5,235 | $ 53,557 | $ 19,838 |
| Services | 1,309 | 1,242 | 5,114 | 5,160 |
| Total revenue | 15,019 | 6,477 | 58,671 | 24,998 |
| Cost of revenue | ||||
| Products | 13,671 | 5,364 | 46,615 | 14,242 |
| Services | 460 | 597 | 2,187 | 2,323 |
| Total cost of revenue | 14,131 | 5,961 | 48,802 | 16,565 |
| Gross profit | 888 | 516 | 9,869 | 8,433 |
| Operating expenses | ||||
| Sales and marketing | 1,248 | 1,089 | 4,463 | 5,059 |
| Research and development | 2,964 | 2,825 | 11,162 | 11,140 |
| General and administrative | 2,007 | 1,337 | 6,494 | 5,903 |
| Goodwill impairment charge | — | 9,019 | — | 9,019 |
| Total operating expenses | 6,219 | 14,270 | 22,119 | 31,121 |
| Operating loss | (5,331) | (13,754) | (12,250) | (22,688) |
| Other income(expense) | (1,210) | (1,211) | (4,329) | (3,303) |
| Loss before income taxes | (6,541) | (14,965) | (16,579) | (25,991) |
| Income tax provision | (15) | (31) | (53) | (119) |
| Net loss | $ (6,556) | $ (14,996) | $ (16,632) | $ (26,110) |
| Preferred dividend | (3,674) | (3,374) | (13,684) | (13,384) |
| Net loss available to common stockholders | $ (10,230) | $ (18,370) | $ (30,316) | $ (39,494) |
| Loss per common share – basic and diluted | $ (5.49) | $ (10.12) | $ (16.59) | $ (21.77) |
| Weighted average shares – basic and diluted | 1,864,242 | 1,814,630 | 1,827,722 | 1,814,526 |
| Xtera Communications, Inc. | ||
| Condensed Consolidated Balance Sheets | ||
| (In thousands, except par values) | ||
| (Unaudited) | ||
| September 30, | September 30, | |
| Assets | 2015 | 2014 |
| Current assets | ||
| Cash and cash equivalents | $ 1,753 | $ 1,920 |
| Restricted cash | 1,120 | 1,155 |
| Accounts receivable, net | 6,580 | 7,588 |
| Unbilled receivables | 6,119 | 1,080 |
| Inventories, net | 10,540 | 9,374 |
| Deferred cost | 780 | 595 |
| Prepaid expenses and other current assets | 1,185 | 527 |
| Total current assets | 28,077 | 22,239 |
| Property and equipment, net | 3,399 | 3,463 |
| Restricted cash | 152 | 495 |
| Intangible assets, net | 7,554 | 8,632 |
| Other assets | 90 | 81 |
| Total assets | $ 39,272 | $ 34,910 |
| Liabilities and Stockholders’ Equity | ||
| Current liabilities | ||
| Accounts payable | $ 13,589 | $ 3,307 |
| Accrued compensation and employee benefits | 760 | 784 |
| Deferred revenue | 1,058 | 2,995 |
| Warranty reserve | 1,735 | 978 |
| Notes payable, related party | — | 20,934 |
| Current portion of long-term debt | 10,707 | 12,548 |
| Other accrued liabilities | 4,966 | 5,428 |
| Total current liabilities | 32,815 | 46,974 |
| Long-term debt less current portion | 2,133 | 6,129 |
| Other long-term liabilities | 631 | 10 |
| Total liabilities | 35,579 | 53,113 |
| Commitments and contingencies | ||
| Stockholders’ equity (deficit) | ||
| Series A-3 convertible preferred stock, $.001 par value 40,500,000 shares authorized 2015 and 2014: 39,663,482 issued and outstanding | 40 | 40 |
| Series B-3 convertible preferred stock, $.001 par value 39,500,000 shares authorized 2015 and 2014: 38,589,303 issued and outstanding | 39 | 39 |
| Series C-3 convertible preferred stock, $.001 par value 25,000,000 shares authorized 2015 and 2014: 19,081,778 issued and outstanding | 19 | 19 |
| Series D-3 convertible preferred stock, $.001 par value 60,000,000 shares authorized 2015 and 2014: 52,509,212 issued and outstanding | 53 | 53 |
| Series E-3 convertible preferred stock, $.001 par value 120,000,000 shares authorized 2015: 114,679,639 issued and outstanding 2014: 0 issued and outstanding | 115 | — |
| Common Stock, $.001 par value 395,000,000 shares authorized 2015: 1,936,056 issued and outstanding 2014: 1,814,630 issued and outstanding | 2 | 2 |
| Additional paid in capital | 388,047 | 350,098 |
| Accumulated deficit | (384,685) | (368,053) |
| Accumulated other comprehensive income(loss), net | 63 | (401) |
| Total stockholders’ equity | 3,693 | (18,203) |
| Total liabilities and stockholders’ equity | $ 39,272 | $ 34,910 |
| Xtera Communications, Inc. | ||
| Condensed Consolidated Statements of Cash Flows | ||
| (In thousands) | ||
| (Unaudited) | ||
| Fiscal Year Ended | ||
| September 30, | September 30, | |
| 2015 | 2014 | |
| Operating activities: | ||
| Net loss | $ (16,632) | $ (26,110) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation and amortization | 2,687 | 2,543 |
| Goodwill impairment charge | — | 9,019 |
| Provision for inventory obsolescence | 1,679 | 1,100 |
| Provision for bad debts | — | (286) |
| Warranty provision | 1,062 | 312 |
| Share-based compensation | 38 | 35 |
| Interest expense | 218 | 253 |
| (Gain) loss on disposition of assets | — | (1,055) |
| (Gain) loss on disposition of property and equipment | (9) | 19 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 849 | 854 |
| Unbilled accounts receivable | (5,039) | 1,914 |
| Inventories | (2,845) | 3,519 |
| Deferred costs | (185) | 314 |
| Prepaid expenses and other assets | (693) | 97 |
| Accounts payable | 10,359 | (5,945) |
| Other accrued liabilities | 3,473 | 2,466 |
| Deferred revenue | (1,917) | 1,673 |
| Net cash used in operating activities | (6,955) | (9,278) |
| Investing activities: | ||
| Changes in restricted cash | 377 | 544 |
| Proceeds from disposition of assets | — | 1,350 |
| Proceeds from disposition of property and equipment | — | — |
| Purchases of property and equipment | (1,160) | (609) |
| Net cash provided (used) in investing activities | (783) | 1,285 |
| Financing activities: | ||
| Repayments of debt | (35,292) | (19,736) |
| Proceeds from debt | 37,535 | 21,756 |
| Proceeds from issuance of bridge loan | 4,800 | 950 |
| Proceeds from issuance of bridge loan, related party | — | 4,150 |
| Payment of capital lease obligations | (18) | — |
| Proceeds from issuance of common stock | 31 | — |
| Proceeds from stock option exercises | 1 | — |
| Net cash provided by financing activities | 7,057 | 7,120 |
| Effect of exchange rate on cash | 514 | 304 |
| Net decrease in cash and cash equivalents | (167) | (569) |
| Cash and cash equivalents at beginning of year | 1,920 | 2,489 |
| Cash and cash equivalents at end of year | $ 1,753 | $ 1,920 |
| Supplemental disclosure of cash flow information | ||
| Cash paid for interest | $ 1,285 | $ 1,480 |
| Cash paid for income taxes | $ 39 | $ 24 |
| Noncash investing and financing activities | ||
| Issuance of warrants | $ 264 | $ — |
| Debt conversion to preferred shares | $ 37,730 | $ — |
CONTACT: Investor Contact:
David H. Allen | +1 408 427 4463 | [email protected]
Marketing & Sales Contact:
Bertrand Clesca | +33 1 45 48 15 67 | [email protected]