News Column

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

August 30, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- Sysorex Global Holdings Corp. (NASDAQ:SYRX) ("Sysorex"), an emerging growth technology company, 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.

Keywords for this news article include: Finance, Information Technology, Sysorex Global Holdings Corp, Information and Data Analytics.

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Source: Investment Weekly News


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