Sphere 3D: Fiscal 1Q19 Financial Results

(in $ million)	1Q18	1Q19	Growth
Revenue	2.4	2.1	*-10%*
Net income (loss)	(6.8)	(1.8)

Sphere 3D Corp. reported financial results for its first quarter ended March 31, 2019.

“This quarter was the first full quarter since the divestiture of Overland in 4Q18. We were able to reduce our operating expense in 1Q19 vs. 1Q18 by just over 50%, and saw an increase in gross margins as well,” said Peter Tassiopoulos, CEO. “We continue to assess the business for additional potential improvements to our operating results.“

1FQ19 Financial Results:
On November 13, 2018, the company closed the divestiture of its Overland subsidiary and related business. The financial results of Overland for 1FQ18 have been reflected in the company’s consolidated statements of operations as discontinued operations.

All results below exclude discontinued operations.

Results for 1FQ19 were as follows:
• Revenue was $2.1 million, compared to $2.4 million for 1FQ18.
• Gross margin 1FQ18 was 32.6%, compared to 18.7% for 1FQ18.
• Operating expenses were $2.4 million, compared to $4.9 million for 1FQ18.
• Share-based compensation expense was $124,000, compared to $821,000 for 1FQ18. Depreciation and amortization was $267,000 in the first quarter of 2019, compared to $1.5 million for the first quarter of 2018.
• Net loss from continuing operations was $1.8 million, or a net loss of $0.82 per share, compared to a net loss from continuing operations of $5.1 million, or a net loss of $5.35 per share, for 1FQ18.
• Net loss from discontinued operations for 1FQ18 was $1.7 million, or a net loss of $1.76 per share.

The company will not be hosting 1FQ19 earnings conference call.