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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

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SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.