Click here to close now.

SYS-CON MEDIA Authors: Pat Romanski, Carmen Gonzalez, Liz McMillan, Blue Box Blog, Lori MacVittie

News Feed Item

Sysorex Global Holdings Corp. Announces Results for the Quarter Ended June 30, 2014

Sysorex Global Holdings Corp. (NASDAQ:SYRX) (“Sysorex”), an emerging growth technology company, today reported its financial results for the three months ended June 30, 2014.

Second Quarter 2014 Financial Highlights

  • Second quarter 2014 revenue of $17.1 million
  • Second quarter 2014 consolidated gross profit margins of 33.1%
  • Second quarter 2014 non-GAAP Adjusted EBITDA of $455,000*
  • Second quarter 2014 GAAP net loss of ($0.13) per share

*See Adjusted EBITDA definition below under Reconciliation of Adjusted EBITDA to Net Loss and Pro Forma Net Loss Per Share to GAAP Net Loss Per Share

"We are very pleased to continue realizing both revenue growth and margin expansion as a result of the acquisitions we have made since 2013. Our results from the second quarter also show the progress we are making in our strategy to increase margins in the Lilien business by adding more data analytics services,” said Nadir Ali, CEO of Sysorex Global Holdings Corp. "We accomplished a great deal in the second quarter including raising capital, acquiring AirPatrol and listing our common stock on the NASDAQ Capital Market. We believe our foundation is stronger than ever and our integration and transition continues according to plan," he continued.

Second Quarter 2014 Financial Results

Revenues for the three-month period ended June 30, 2014 were $17,145,000 compared to $14,789,000 for the comparable period in the prior year. This increase of $2,356,000 was primarily attributable to Sysorex’s acquisitions of Shoom in August 2013 and AirPatrol in April 2014.

Cost of revenues for the three months ended June 30, 2014 was $11,465,000 compared to $11,790,000 for the comparable period in the prior year, a slight decrease of $325,000 primarily attributable to increased higher margin data analytics revenues from Lilien offset by the inclusion of Shoom and AirPatrol cost of revenues. Operating expenses for the three months ended June 30, 2014 were $8,050,000 compared to $3,429,000 for the comparable period in the prior year, an increase of $4,621,000. The increase in operating expenses was primarily attributable to increased Lilien operating expenses and the Shoom and AirPatrol acquisitions.

Loss from operations for the three months ended June 30, 2014 was ($2,370,000) compared to ($430,000) for the comparable period in the prior year. This increase of $1,940,000 was primarily attributable to acquisition transaction costs, expenses and amortization of intangibles related to the pursuit of Sysorex’s acquisition strategy.

Adjusted EBITDA for the three months ended June 30, 2014 was $455,000 compared to $190,000 for the comparable period in the prior year. Consolidated net loss attributable to Sysorex shareholders was ($2,407,000) or ($0.13) per share compared to ($436,000) or ($0.03) per share for the comparable period in the prior year. Pro forma net loss per share was ($0.01) per share compared to ($0.00) per share for the comparable period in the prior year.

Reconciliation of Adjusted EBITDA to Net Loss and Pro Forma Net Loss per Share to GAAP Net Loss per Share

Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. EBIDTA, Adjusted EBITDA and pro forma net loss per share are non-GAAP measures. Sysorex defines “EBITDA” as net income (loss) before interest, provision for (benefit from) income taxes, and depreciation and amortization. Management uses Adjusted EBITDA as the matrix in which it manages the business and Sysorex defines “Adjusted EBITDA” as EBITDA plus adjustments for other income or expense items, non-recurring items and non-cash stock-based compensation. Sysorex defines “pro forma net loss per share” as GAAP net loss per share adjusted for stock-based compensation, amortization of intangibles and one time non-recurring charges such as acquisition and offering costs.

Management provides Adjusted EBITDA and pro forma net loss per share measures so that investors will have the same financial information that management uses, which may assist investors in assessing Sysorex’s performance on a period-over-period basis. Adjusted EBITDA or pro forma net loss per share is not a measure of financial performance under GAAP, and should not be considered an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA and pro forma net loss per share have limitations as analytical tools and should not be considered either in isolation or as a substitute for analysis of Sysorex’s results as reported under GAAP.

The following table presents a reconciliation of net income/loss attributable to stockholders of Sysorex, which is our GAAP operating performance measure, to Adjusted EBITDA for the three months ended June 30, 2014 and 2013:

 

Three
Months
ended
June 30,
2014

 

Three
Months
ended
June 30,
2013

Adjusted EBITDA $ 455,000 $ 190,000
 
Gain on settlement of obligations -- 15,000
Cost of public offering - non recurring one time charges -- (87,000 )
Acquisition transaction costs - non-recurring one time charges (771,000 ) (144,000 )
Stock-based compensation – included in acquisition costs (320,000 ) --
Stock-based compensation – included in SG&A expense (332,000 ) (127,000 )
Other interest expense (104,000 ) (59,000 )
Depreciation and amortization   (1,335,000 )   (224,000 )
Net loss attributable to stockholders of Sysorex Global Holdings Corp. $ (2,407,000 ) $ (436,000 )
 

The following table presents a reconciliation of net loss per share – basic and diluted, which is our GAAP operating performance measure, to pro forma net loss per share for the three months ended June 30, 2014 and 2013:

 

Three
Months
ended
June 30,
2014

 

Three
Months
ended
June 30,
2013

Net loss per share – basic and diluted $ (0.13 ) $ (0.03 )
 
Amortization of intangibles 0.06 0.02
Stock based compensation 0.02 0.01
Stock based compensation – acquisition costs 0.02 --
Acquisition costs   0.04   --
Proforma net loss per share $ (0.01 ) $ (0.00 )
 

Third Quarter 2014 Business Outlook

  • Third quarter 2014 revenue forecast to be between $18 million to $21 million
  • Third quarter 2014 gross margin forecast to be between 33% to 35%

Sysorex Conference Call Information

Sysorex will host a conference call today at 5:00 pm Eastern Time to discuss the release of its financial results and corporate developments for the quarter ended June 30, 2014. Following management's prepared remarks, there will be a question and answer session.

To listen to the conference call, interested parties within the U.S. should dial 1-866-652-5200 five to ten minutes before the scheduled start time. International callers should dial +1-412-317-6060. All callers should request to be connected to the Sysorex Global Holdings Corporation conference call. The conference call will also be available through a live webcast at http://client.irwebkit.com/Sysorex/events.

A replay of the call will be available approximately one hour after the end of the call through September 15, 2014. The replay can be accessed via Sysorex’s website or by dialing 1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The replay conference ID number is 7752.

About Sysorex Global Holdings Corp.

Through focused, custom technology solutions, Sysorex (NASDAQ:SYRX) provides cyber security, data analytics, custom application development, cloud solutions, Mobile/BYOD solutions and strategic outsourcing to government and commercial clients in major industries around the world. From identifying security risks to helping clients realize value from their big data strategies, Sysorex has the experience, technology, partners, and agility to be your trusted IT partner. Visit www.sysorex.com, follow @SysorexGlobal and Like us on Facebook.

Safe Harbor Statement

All statements in this release that are not based on historical fact are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of our control, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of global economic conditions, the performance of management and our employees, our ability to obtain financing, competition, general economic conditions and other factors that are to be detailed in our periodic and current reports available for review at www.sec.gov. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Many of the well-known examples of DevOps success we read in blogs on the Internet paint an idyllic picture of DevOps productivity. A team was facing a stodgy, slow-moving operations department, teams weren’t delivering software on time. Those teams moved to DevOps, became proactive about infrastructure and deployment automation, and an overnight transition to productivity ensues. People are promoted, projects are successful, and developers and system administrators dance hand-in-hand in a final...
SYS-CON Events announced today that Secure Infrastructure & Services 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, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Secure Infrastructure & Services (SIAS) is a managed services provider of cloud computing solutions for the IBM Power Systems market. The company...
Enterprise IoT is an exciting and chaotic space with a lot of potential to transform how the enterprise resources are managed. In his session at @ThingsExpo, Hari Srinivasan, Sr Product Manager at Cisco, will describe the challenges in enabling mass adoption of IoT, and share perspectives and insights on architectures/standards/protocols that are necessary to build a healthy ecosystem and lay the foundation to for a wide variety of exciting IoT use cases in the years to come.
SYS-CON Events announced today that CenturyLink, Inc., a leader in the network services market, has been named “Platinum 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 City, NY. CenturyLink is the third largest telecommunications company in the United States and is recognized as a leader in the network services market by technology industry analyst firms. The company is a global leader in cloud infrastructure and ...
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
A new definition of Big Data & the practical applications of the defined components & associated technical architecture models This presentation introduces a new definition of Big Data, along with the practical applications of the defined components and associated technical architecture models. In his session at Big Data Expo, Tony Shan will start with looking into the concept of Big Data and tracing back the first definition by Doug Laney, and then he will dive deep into the description of 3V...
As cloud gives an opportunity to businesses to buy services externally – how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, provided answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He also discussed Intercloud and Cisco’s investment on it.
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, 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. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
SYS-CON Events announced today that MangoApps 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., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immed...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...