Delaware
(State or Other Jurisdiction of Incorporation)
|
000-30901
(Commission File No.)
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94-3282005
(I.R.S. Employer Identification No.)
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900 Chesapeake Drive, Second Floor, Redwood City, CA 94063
(Address of Principal Executive Offices) (Zip Code)
|
||
(650) 556-9440
(Registrant’s telephone number, including area code)
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||
N/A
(Former Name or Former Address, if Changed Since Last Report)
|
q
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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q
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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q
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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q
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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SUPPORT.COM, INC.
|
|||
By:
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/s/ Gregory J. Wrenn
|
||
Name:
|
Gregory J. Wrenn
|
||
Title:
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SVP Business Affairs, General Counsel & Secretary
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Exhibit No.
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Description
|
|||
Press Release of the Company, dated October 29, 2014
|
·
|
Q3 2014 financial results exceeded outlook for both revenue and non-GAAP earnings per share
|
·
|
The Nexus SaaS offering has passed several milestones of product validation, including value creation through the use of guided paths and increased usage on a per customer basis
|
·
|
Leadership team has been bolstered with the appointment of a Senior Vice President of Product and a Vice President of Engineering
|
September 30,
|
December 31,
|
|||||||
2014
|
(1) |
2013
|
(2) | |||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash, cash equivalents and short-term investments
|
$
|
75,310
|
$
|
72,357
|
||||
Accounts receivable, net
|
15,190
|
13,993
|
||||||
Prepaid expenses and other current assets
|
1,173
|
1,322
|
||||||
Total current assets
|
91,673
|
87,672
|
||||||
Property and equipment, net
|
428
|
461
|
||||||
Goodwill
|
14,240
|
14,240
|
||||||
Intangible assets, net
|
2,636
|
3,454
|
||||||
Other assets
|
1,192
|
1,072
|
||||||
Total assets
|
$
|
110,169
|
$
|
106,899
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued compensation
|
$
|
4,959
|
$
|
3,017
|
||||
Other accrued liabilities
|
3,373
|
3,359
|
||||||
Short-term deferred revenue
|
2,630
|
3,323
|
||||||
Total current liabilities
|
10,962
|
9,699
|
||||||
Long-term deferred revenue
|
61
|
50
|
||||||
Other long-term liabilities
|
1,947
|
1,754
|
||||||
Total liabilities
|
12,970
|
11,503
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
5
|
5
|
||||||
Additional paid-in-capital
|
261,341
|
258,291
|
||||||
Treasury stock
|
(5,036
|
)
|
(5,036
|
)
|
||||
Accumulated other comprehensive loss
|
(1,884
|
)
|
(1,874
|
)
|
||||
Accumulated deficit
|
(157,227
|
)
|
(155,990
|
)
|
||||
Total stockholders' equity
|
97,199
|
95,396
|
||||||
Total liabilities and stockholders' equity
|
$
|
110,169
|
$
|
106,899
|
Note 1: Amounts are subject to completion of management’s customary closing and review procedures.
Note 2: Derived from audited consolidated financial statements for the year ended December 31, 2013.
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2014
|
(1) |
2013
|
2014
|
(1) |
2013
|
|||||||||||
Revenue:
|
||||||||||||||||
Services (3)
|
$
|
20,844
|
$
|
19,585
|
$
|
56,639
|
$
|
52,609
|
||||||||
Software and other (3)
|
1,387
|
3,774
|
4,382
|
11,077
|
||||||||||||
Total revenue
|
22,231
|
23,359
|
61,021
|
63,686
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Cost of services (4)
|
16,020
|
11,046
|
43,513
|
29,194
|
||||||||||||
Cost of software and other (4)
|
189
|
294
|
656
|
872
|
||||||||||||
Total cost of revenue
|
16,209
|
11,340
|
44,169
|
30,066
|
||||||||||||
Gross profit
|
6,022
|
12,019
|
16,852
|
33,620
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development (4)
|
1,203
|
1,456
|
3,614
|
4,325
|
||||||||||||
Sales and marketing (4)
|
1,782
|
4,120
|
5,022
|
12,431
|
||||||||||||
General and administrative (4)
|
2,808
|
3,077
|
8,450
|
8,193
|
||||||||||||
Amortization of intangible assets and other
|
273
|
335
|
818
|
1,005
|
||||||||||||
Total operating expenses
|
6,066
|
8,988
|
17,904
|
25,954
|
||||||||||||
Income (loss) from operations
|
(44
|
)
|
3,031
|
(1,052
|
)
|
7,666
|
||||||||||
Interest income and other, net
|
77
|
127
|
217
|
307
|
||||||||||||
Income (loss) from continuing operations, before income taxes
|
33
|
3,158
|
(835
|
)
|
7,973
|
|||||||||||
Income tax provision
|
128
|
121
|
385
|
446
|
||||||||||||
Income (loss) from continuing operations, after income taxes
|
(95
|
)
|
3,037
|
(1,220
|
)
|
7,527
|
||||||||||
Income (loss) from discontinued operations, net of income taxes
|
(6
|
)
|
(5
|
)
|
(18
|
)
|
(16
|
)
|
||||||||
Net income (loss)
|
$
|
(101
|
)
|
$
|
3,032
|
$
|
(1,238
|
)
|
$
|
7,511
|
||||||
Income (loss) from continuing operations, after income taxes
|
||||||||||||||||
Basic
|
$
|
(0.00
|
)
|
$
|
0.06
|
$
|
(0.02
|
)
|
$
|
0.15
|
||||||
Diluted
|
$
|
(0.00
|
)
|
$
|
0.06
|
$
|
(0.02
|
)
|
$
|
0.14
|
||||||
Income (loss) from discontinued operations, net of income taxes
|
||||||||||||||||
Basic
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||||
Diluted
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||||
Shares used in computing per share amounts:
|
||||||||||||||||
Basic
|
54,028
|
52,266
|
53,716
|
51,080
|
||||||||||||
Diluted
|
54,028
|
54,661
|
53,716
|
53,508
|
Note 3: In the third quarter of 2014, fees from Nexus software-as-a-service solution were reclassified from “Software and other revenue” to ”Services revenue”. Therefore, certain amounts previously reported in fiscal years 2014 and 2013 have been reclassified to conform to the current period’s presentation. Cost associated with the Nexus software-as-a-service solution was immaterial and therefore it was not reclassified from ”Cost of software and other” to ”Cost of services”. These reclassifications have no impact on previously reported total revenue, net income (loss), and cash flows.
Note 4: Includes stock-based compensation expense, restructuring and impairment charges, acquisition expense and other non-recurring items, as follows:
|
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30, 2014
|
September 30, 2013
|
September 30, 2014
|
September 30, 2013
|
|||||||||||||
Cost of revenue:
|
|||||||||||||||||
Cost of services
|
$
|
75
|
$
|
84
|
$
|
357
|
$
|
241
|
|||||||||
Cost of software and other
|
4
|
3
|
10
|
8
|
|||||||||||||
Operating expenses:
|
|||||||||||||||||
Research and development
|
145
|
192
|
308
|
530
|
|||||||||||||
Sales and marketing
|
122
|
103
|
293
|
285
|
|||||||||||||
General and administrative
|
457
|
488
|
1,239
|
1,370
|
|||||||||||||
Total
|
$
|
803
|
$
|
870
|
$
|
2,207
|
$
|
2,434
|
|||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
GAAP revenue
|
$
|
22,231
|
$
|
23,359
|
$
|
61,021
|
$
|
63,686
|
||||||||
Warrant-related charge
|
-
|
383
|
-
|
383
|
||||||||||||
Non-GAAP revenue
|
$
|
22,231
|
$
|
23,742
|
$
|
61,021
|
$
|
64,069
|
||||||||
GAAP cost of revenue
|
$
|
16,209
|
$
|
11,340
|
$
|
44,169
|
$
|
30,066
|
||||||||
Stock-based compensation expense (Cost of revenue portion only)
|
(79
|
)
|
(87
|
)
|
(217
|
)
|
(249
|
)
|
||||||||
Other non-recurring items
|
-
|
-
|
(150
|
)
|
-
|
|||||||||||
Non-GAAP cost of revenue
|
$
|
16,130
|
$
|
11,253
|
$
|
43,802
|
$
|
29,817
|
||||||||
GAAP operating expenses
|
$
|
6,066
|
$
|
8,988
|
$
|
17,904
|
$
|
25,954
|
||||||||
Stock-based compensation expense (Excl. cost of revenue portion)
|
(724
|
)
|
(783
|
)
|
(1,840
|
)
|
(2,185
|
)
|
||||||||
Amortization of intangible assets and other
|
(273
|
)
|
(335
|
)
|
(818
|
)
|
(1,005
|
)
|
||||||||
Non-GAAP operating expenses
|
$
|
5,069
|
$
|
7,870
|
$
|
15,246
|
$
|
22,764
|
||||||||
GAAP interest income and other, net
|
$
|
77
|
$
|
127
|
$
|
217
|
$
|
307
|
||||||||
Other non-recurring items
|
-
|
(57
|
)
|
-
|
(57
|
)
|
||||||||||
Non-GAAP interest income and other, net
|
$
|
77
|
$
|
70
|
$
|
217
|
$
|
250
|
||||||||
GAAP income tax provision
|
$
|
128
|
$
|
121
|
$
|
385
|
$
|
446
|
||||||||
Tax expense associated with acquired goodwill
|
(77
|
)
|
(54
|
)
|
(219
|
)
|
(209
|
)
|
||||||||
Non-GAAP income tax provision
|
$
|
51
|
$
|
67
|
$
|
166
|
$
|
237
|
||||||||
GAAP income (loss) from continuing operations, after income taxes
|
$
|
(95
|
)
|
$
|
3,037
|
$
|
(1,220
|
)
|
$
|
7,527
|
||||||
Warrant-related charge
|
-
|
383
|
-
|
383
|
||||||||||||
Stock-based compensation expense
|
803
|
870
|
2,057
|
2,434
|
||||||||||||
Amortization of intangible assets and other
|
273
|
335
|
818
|
1,005
|
||||||||||||
Other non-recurring items
|
-
|
(57
|
)
|
150
|
(57
|
)
|
||||||||||
Tax expense associated with acquired goodwill
|
77
|
54
|
219
|
209
|
||||||||||||
Total impact of Non-GAAP exclusions
|
1,153
|
1,585
|
3,244
|
3,974
|
||||||||||||
Non-GAAP income (loss) from continuing operations, after income taxes
|
$
|
1,058
|
$
|
4,622
|
$
|
2,024
|
$
|
11,501
|
||||||||
Income (loss) from continuing operations, after income taxes
|
||||||||||||||||
Basic -GAAP
|
$
|
(0.00
|
)
|
$
|
0.06
|
$
|
(0.02
|
)
|
$
|
0.15
|
||||||
Basic - Non-GAAP
|
$
|
0.02
|
$
|
0.09
|
$
|
0.04
|
$
|
0.23
|
||||||||
Diluted - GAAP
|
$
|
(0.00
|
)
|
$
|
0.06
|
$
|
(0.02
|
)
|
$
|
0.14
|
||||||
Diluted - Non-GAAP
|
$
|
0.02
|
$
|
0.08
|
$
|
0.04
|
$
|
0.21
|
||||||||
Shares used in computing per share amounts (GAAP)
|
||||||||||||||||
Basic
|
54,028
|
52,266
|
53,716
|
51,080
|
||||||||||||
Diluted
|
54,028
|
54,661
|
53,716
|
53,508
|
||||||||||||
Shares used in computing per share amounts (Non-GAAP)
|
||||||||||||||||
Basic
|
54,028
|
52,266
|
53,716
|
51,080
|
||||||||||||
Diluted
|
54,159
|
54,661
|
53,937
|
53,508
|
The adjustments above reconcile the Company’s GAAP financial results to the non-GAAP financial measures used by the Company. The Company’s non-GAAP financial measures exclude 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. The Company believes that presentation of these non-GAAP items provides meaningful supplemental information to investors, when viewed in conjunction with, and not in lieu of, the Company’s GAAP results. However, the non-GAAP financial measures have not been prepared under a comprehensive set of accounting rules or principles. Non-GAAP information should not be considered in isolation from, or as a substitute for, information prepared in accordance with GAAP. Moreover, there are material limitations associated with the use of non-GAAP financial measures. See the text of this press release for more information on non-GAAP financial measures.
2014 Amounts are subject to completion of management’s customary closing and review procedures.
|