By a News Reporter-Staff News Editor at Computer Weekly News -- Mavenir Systems (NYSE: MVNR) reported financial results for the second quarter 2014, provided its outlook for the third quarter and updated its outlook for the full year of 2014.
Total revenue for the second quarter of 2014 was $33.3 million, an increase of 29% year-over-year and 16% quarter-over-quarter. GAAP operating loss for the second quarter of 2014 was $(2.2) million, compared with $(0.9) million in the second quarter of 2013 and $(2.2) million in the first quarter of 2014. Non-GAAP operating income, which excludes stock-based compensation, foreign exchange gains or losses, depreciation and amortization, was $0.1 million for the second quarter of 2014, compared to $0.2 million for the second quarter of 2013 and a loss of $(0.2) million for the first quarter of 2014. GAAP net loss for the second quarter of 2014 was $(3.9) million, compared to $(3.6) million in the second quarter of 2013 and $(4.0) million for the first quarter of 2014. Non-GAAP net loss for the second quarter of 2014 was $(1.0) million, compared to $(1.6) million for the second quarter of 2013 and $(1.1) million for the first quarter of 2014.
GAAP gross profit margin was 55% in the quarter, compared to 52% in the second quarter of 2013 and 56% in the first quarter of 2014. Non-GAAP gross profit margin was 57% in the quarter, above the high end of the guidance range provided in our earnings release for the first quarter of 2014, compared to 53% in the second quarter of 2013 and 57% in the first quarter of 2014.
Net loss per share was $(0.16) for the second quarter of 2014 compared with $(2.72) for the second quarter of 2013 and $(0.17) for the first quarter of 2014. As outlined in the accompanying table entitled "Non-GAAP Net Loss Per Share" included in this press release, the non-GAAP net loss per share was $(0.04) for the second quarter of 2014 compared to $(0.09) for the second quarter of 2013 and $(0.05) for the first quarter of 2014.
A description of the non-GAAP calculations and reconciliation to comparable GAAP measures is provided in the accompanying table entitled "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures."
"We achieved a number of financial and business milestones again this quarter. The company delivered a strong quarter with strong financial results, again setting a new quarterly revenue record with Gross Margin above the high end of our guidance range," said Pardeep Kohli, president and chief executive officer, Mavenir Systems. "Mavenir is seeing momentum in our two major areas of focus that are driving mobile network transformation - the adoption of all-IP technology and the build out of next generation networks using software-based solutions. LTE network transformation has begun in key markets with several VoLTE launches and announcements in the second quarter indicating that 2014 is the year of VoLTE." Mavenir Second Quarter 2014 Business and Financial Highlights Record quarterly revenue of $33.3 million, an increase of 29% year-over-year;
Added two Tier 1 operators to our customer list for next-generation solutions;
Expanded end-to-end portfolio of 4G LTE core networking solutions with announcement of evolved Packet Data Gateway;
Expanded software-based voice and video solution set with client provisioning server to enable Voice over Wi-Fi and Rich Communication Services;
Received key industry awards for our Network Functions Virtualization (NFV) solution, Voice over LTE Leadership and Innovation and Best RCS. Guidance Mavenir is providing the following third quarter and updated full year 2014 guidance with respect to anticipated total revenue, non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share.
Third quarter of 2014
Revenue to range from $31.0 million to $33.0 million, reflecting growth of 19% to 27% over the third quarter of 2013.
Non-GAAP gross margin to range from 51% to 53%.
Non-GAAP operating loss to range from $(3.5) million to $(2.5) million.
Non-GAAP net loss to range from $(4.4) million to $(3.4) million.
Non-GAAP net loss per share ranging from $(0.16) to $(0.12) (based on a forecasted weighted average number of shares outstanding of 27,350,000).
Full year 2014
Revenue is increased to a range from $127 million to $130 million, reflecting growth of 25% to 28% year-over-year.
Non-GAAP gross margin to range from 57% to 59%.
Non-GAAP operating income is expected to be at approximately a break-even level. Conference Call Mavenir will discuss its second quarter 2014 results and its business outlook via teleconference today at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). To access this call, investors can dial the toll free number 1-855-302-8830 (domestic) or 1-330-871-6073 with the ID#64789401, or access a live webcast of the conference call at Mavenir's website http://investor.mavenir.com.
A replay will be available following the call on Mavenir Systems' Investor Relations website and for one week at the following numbers: 855-859-2056 (domestic) or 404-537-3406 (international) with ID# 64789401. Non-GAAP Financial Measures & Definitions In addition to disclosing financial results that are determined in accordance with U.S. GAAP, Mavenir discloses non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share, which are non-GAAP financial measures, as supplemental measures. Non-GAAP operating loss represents operating loss before depreciation, amortization and stock-based compensation. Non-GAAP net loss represents non-GAAP operating loss after interest and taxes, as adjusted for uncertain tax positions component. Non-GAAP net loss per share represents non-GAAP net loss divided by our adjusted weighted average common shares outstanding, which assumes the conversion of preferred shares as of the beginning of the period. These measures are used by management to evaluate our business and management believes these measures may help investors evaluate the Company's fundamental operational performance. Management believes these non-GAAP measures facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization, stock-based compensation expense and certain other expenses. These measures are not measures of our financial performance under U.S. GAAP and should not be considered in isolation or a substitute for net loss, operating loss or other performance measures as determined in accordance with U.S. GAAP. These measures should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. Please refer to the accompanying tables entitled "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures" and "Non-GAAP Net Loss Per Share" for a reconciliation of consolidated GAAP operating loss to non-GAAP operating loss, consolidated GAAP net loss to non-GAAP net loss.
Keywords for this news article include: Finance, Software, Mavenir Systems.
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