Envivio Reports Lower Q2 2013 Results, Takes Actions to Reduce Operating Costs

Posted by Joe Zaller
Sep 07 2012

Video encoding and transcoding specialist Envivio, which went public on the NASDAQ exchange in April 2012, reported that revenue for its second quarter as a public company was $10.8m, down 6% versus the same period a year ago, and down 19% versus the previous quarter.

The GAAP net loss for the quarter was $4.3m, or $0.16 per share, compared to net income of $55,000, or $0.00 per share, during the same period a year ago, and a GAAP net loss of $2.2m, or $0.17 per share last quarter.

The Non-GAAP net loss for the quarter was $3.5m or $0.13 per share, compared to net income of $425,000 or $0.03 per share last year and a loss of $1.5m, or $0.12 per share last quarter.

Gross margins for the quarter were 62%, versus 64% last year, and 61.7% last quarter.

The results are in-line with the profit warning Envivio issued last month.  At that time the company said its revenue for the second quarter of 2012 would be in the range of $10m to $11m (35% to 41% lower than the bottom end of its previously issued guidance), non-GAAP net income / loss in the range of a loss of $460,000 to a profit of $720,000, and non-GAAP gross margins for the quarter to be in the range of 62% to 64%.

Company CEO Julien Signès attributed the company’s performance in the quarter to project delays by our service provider customers and the impact of the macroeconomic environment. “We are disappointed in our quarterly performance and have taken actions to reduce our cost structure.”

As part of this cost containment exercise, Envivio said it has begun cutting its operating expenses, and laid off nine employees in August 2012.  The company will take a one-time charge of approximately $275,000 in the third quarter of fiscal 2013 for severance and other related benefits related to the cost-cutting program.

The company ended the quarter with cash, cash equivalents and short-term investments of $63.2m.

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Outlook

Envivio says that it expects it revenue for its third quarter to be in the range of $10m to $11m, with a n on-GAAP loss per share in the range of ($0.16) to ($0.12), non-GAAP operating loss in the range of $4.1m to $3.2m, and non-GAAP gross margins in the range of 59 to 62 percent.

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Related Content:

Press Release: Envivio Reports Second Quarter Fiscal 2013 Financial Results

Envivio Warns that its Q2 FY2013 Revenue Will be Significantly Below Previously Issued Guidance

Previous Quarter: Envivio Beats Expectations in First Quarter as Public Company as Revenue Jumps 35 Percent

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