Wave Q4 Revenues Grew 58% to $5.2 Million, Q4 -2-
DJ Press Release Wire
4:08 PM (GMT-05:00) Eastern Time (US & Canada) Mar 11, 2010
This press release may contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Wave assumes no duty to and does not undertake to update forward-looking statements.
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WAVE SYSTEMS CORP. AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Twelve months ended
December 31, December 31,
2009 2008 2009 2008
---------- ---------- ----------- -----------
Net revenues:
Licensing 5,140,132 3,248,746 18,013,043 8,691,576
Services 73,120 41,990 875,836 118,239
---------- ---------- ----------- -----------
Total net revenues $5,213,252 $3,290,736 $18,888,879 $ 8,809,815
---------- ---------- ----------- -----------
Operating expenses:
Cost of sales - licensing 293,661 169,207 876,723 736,429
Cost of sales - services 65,298 30,955 521,168 87,752
Selling, general, and
administrative 3,723,901 3,785,985 12,992,715 16,375,372
Research and development 2,127,320 2,126,563 7,825,058 11,702,776
Write-off of impaired
assets - 447,128 - 447,128
---------- ---------- ----------- -----------
Total operating expenses 6,210,180 6,559,838 22,215,664 29,349,457
---------- ---------- ----------- -----------
Operating loss (996,928) (3,269,102) (3,326,785) (20,539,642)
Net interest expense (3,626) (25,437) (19,466) (9,572)
---------- ---------- ----------- -----------
Net loss (1,000,554) (3,294,539) (3,346,251) (20,549,214)
Accretion of non-cash
beneficial conversion
feature on Series J and
Series K Preferred Stock - (657,000) - (657,000)
---------- ---------- ----------- -----------
Net loss attributable to
common stockholders (1,000,554) (3,951,539) (3,346,251) (21,206,214)
Loss per common share -
basic and diluted $ (0.01) $ (0.07) $ (0.05) $ (0.38)
========== ========== =========== ===========
Weighted average number
of common shares
outstanding during the
period 73,893,750 58,707,897 68,526,572 55,379,118
WAVE SYSTEMS CORP. AND SUBSIDIARIES
Consolidated Supplemental Schedule
(Unaudited)
Three months ended Twelve months ended
12/31/09 12/31/08 12/31/09 12/31/08
------------ ----------- ----------- ------------
Total net revenues $ 5,213,252 $ 3,290,736 $18,888,879 $ 8,809,815
Increase in deferred
revenue 1,901,162 433,484 2,016,817 1,195,019
------------ ----------- ----------- ------------
Total billings
(Non-GAAP) $ 7,114,414 $ 3,724,220 $20,905,696 $ 10,004,834
=========== =========== =========== ============
Net loss as reported $(1,000,554) $(3,294,539) $(3,346,251) $(20,549,214)
Interest expense 3,626 25,437 19,466 9,572
Income tax (benefit)
expense - - - -
Depreciation and
amortization 68,260 115,925 259,210 395,253
Stock-based
compensation expense 415,408 399,694 1,724,874 2,105,941
------------ ----------- ----------- ------------
EBITDAS (Non-GAAP) $ (513,260) $(2,753,483) $(1,342,701) $(18,038,448)
============ =========== =========== ============ Non-GAAP Financial Measures:
As supplemental information, we provide the non-GAAP performance measures that we refer to as total billings and EBITDAS. Total billings is provided in addition to, but not as a substitute for, GAAP total net revenues. Total billings means the sum of total net revenues determined in accordance with GAAP, plus the increase or minus the decrease in deferred revenue. We consider total billings an important measure of our financial performance because it includes deferred revenue related to our software license upgrades. Total billings is not a measure of financial performance under GAAP and, as calculated by us, may not be consistent with computations of total billings by other companies. EBITDAS is defined as net income (loss) before interest income (expense), income taxes, depreciation and amortization and stock-based compensation. EBITDAS should not be construed as a substitute for net income (loss) or net cash provided by (used in) operating activities (all as determined in accordance with GAAP) for the purpose of analyzing our operating performance, financial position and cash flows, as EBITDAS is not defined by GAAP. However, we regard EBITDAS as a complement to net income (loss) and other GAAP financial performance measures, including an indirect measure of operating cash flow.
WAVE SYSTEMS CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
December 31, December 31,
2009 2008
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 1,900,014 $ 951,563
Accounts receivable, net of allowance for
doubtful accounts of $-0- and $16,364 at
December 31, 2009 and 2008, respectively 3,850,020 1,701,829
Prepaid expenses 207,343 227,967
------------ ------------
Total current assets 5,957,377 2,881,359
Property and equipment, net 237,237 408,440
Other assets 133,311 139,975
------------ ------------
Total Assets 6,327,925 3,429,774
============ ============
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable and accrued expenses 4,441,658 7,655,834
Current portion of capital lease payable 61,857 63,537
Deferred revenue 3,500,861 1,484,044
------------ ------------
Total current liabilities 8,004,376 9,203,415
Long-term portion of capital lease payable 183,505 245,362
------------ ------------
Total liabilities 8,187,881 9,448,777
------------ ------------
Stockholders' Equity (Deficit):
8% Series I Convertible Preferred stock, $.01
par value. -0- shares issued and outstanding
(liquidation preference of $968,000) in 2009
and 2008 - 2
Series J Convertible Preferred stock, $.01 par
value. -0- shares issued and outstanding
(liquidation preference of $364,000) in 2009
and 2008 - 1
8% Series K Convertible Preferred stock, $.01
par value. -0- shares issued and outstanding
(liquidation preference of $1,276,800) in
2009 and 2008 - 5
Common stock, $.01 par value. Authorized
150,000,000 shares as Class A; 75,211,054
shares issued and outstanding in 2009 and
58,877,968 in 2008 752,110 588,780
Common stock, $.01 par value. Authorized
13,000,000 shares as Class B; 38,232 shares
issued and outstanding in 2009 and 2008 382 382
Capital in excess of par value 345,423,667 338,081,691
Accumulated deficit (348,036,115) (344,689,864)
------------ ------------
Total Stockholders' Equity (Deficit) (1,859,956) (6,019,003)
------------ ------------
Total Liabilities and Stockholders' Equity
(Deficit) $ 6,327,925 $ 3,429,774
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AI
