Support.Com (SPRT)

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Q4 2013 Financial Summary

For the fourth quarter of 2013, total non-GAAP revenue was $24.9 million compared to $18.9 million in the fourth quarter of 2012 and $23.7 million in the third quarter of 2013. Total GAAP revenue for the fourth quarter of 2013 was $24.5 million, after a warrant-related charge to revenue of $394,000, compared to $18.9 million in the fourth quarter of 2012, which did not have a warrant-related charge, and $23.4 million in the third quarter of 2013, after a warrant-related charge to revenue of $383,000.
On a non-GAAP basis, income from continuing operations for the fourth quarter of 2013 was $5.3 million, or $0.10 per share, compared to $2.9 million, or $0.06 per share, in the fourth quarter of 2012 and $4.6 million, or $0.08 per share, in the third quarter of 2013.
On a GAAP basis, income from continuing operations for the fourth quarter of 2013 was $2.8 million, or $0.05 per share, compared to $1.2 million, or $0.02 per share, in the fourth quarter of 2012 and $3.0 million, or $0.06 per share, in the third quarter of 2013.
At December 31, 2013 cash, cash equivalents and investments were $72.4 million compared to $68.5 million at September 30, 2013.

2013 Financial Summary

Total non-GAAP revenue for 2013 was $88.9 million compared to $72.0 million in 2012. Total GAAP revenue for 2013 was $88.2 million, after warrant-related charges of $777,000.
Non-GAAP income from continuing operations for 2013 was $16.8 million, or $0.31 per share, compared to $935,000, or $0.02 per share, in 2012.
On a GAAP basis, income from continuing operations for 2013 was $10.3 million, or $0.19 per share, compared to a loss of $5.5 million, or $(0.11) per share, in 2012.

Non-GAAP revenue excludes warrant related charges. Non-GAAP income from continuing operations excludes warrant-related charges, stock-based compensation expense, amortization of intangible assets and other, restructuring and impairment charges, acquisition expense, other non-recurring items and tax expense associated with acquired goodwill. These items impacted results from continuing operations by $2.4 million in the fourth quarter of 2013, $1.7 million in the fourth quarter of 2012 and $1.6 million in the third quarter of 2013. On an annual basis, these items impacted results from continuing operations by $6.4 million in 2013 and $6.5 million in 2012. A reconciliation of GAAP to non-GAAP results is presented in the tables below.
"Our 2013 results were strong, with outstanding growth in revenue, profitability and cash flow," said Josh Pickus, President and CEO. "Program changes at the end of the year adversely affected our outlook for the first quarter of 2014, but we are moving forward aggressively with growth in existing programs, new customer wins and innovative product plans for current and future markets.”

Recent Company Highlights
Bundled home networking support program growing; additional agent hiring in process
DISH® Network program expanding
New premium technology support deals for Sam’s Club, Carbonite and Suddenlink
Selected for first home security and automation program
Software as a Service customer base continues to grow
Next generation Nexus® Service Platform to be released in first quarter of 2014
Recent Financial Highlights
Fourth quarter non-GAAP revenue grew 32% from prior year and 5% sequentially; 2013 non-GAAP revenue grew 24% from prior year
Fourth quarter non-GAAP income from continuing operations grew 78% from prior year and 14% sequentially; non-GAAP income from continuing operations grew from $0.02 per share in 2012 to $0.31 per share in 2013
Cash, cash equivalents and investments grew by $3.9 million in fourth quarter and $16.0 million in 2013
http://www.support.com/about/releases/Support_com_Reports_Fourth_Quarter_2013_Financial_Results