Delaware | 000-30901 | 94-3282005 |
(State or Other Jurisdiction of Incorporation)
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(Commission File No.)
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(I.R.S. Employer Identification No.)
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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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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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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(d)
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Exhibits.
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99.1
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Press Release of the Company, dated March 22, 2018
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SUPPORT.COM, INC.
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||
By:
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/s/ James P. Berklas Jr.
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Name:
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James P. Berklas Jr.
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Title:
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VP, General Counsel & Secretary
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Exhibit No.
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Description
|
|
Press Release of the Company, dated March 22, 2018
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· |
Gross profit increased by $0.2 million in the fourth quarter compared to the same period in 2016, but was down $0.5 million compared to the third quarter of 2017.
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· |
Our gross profit margin declined by 0.4 percentage points compared with the same quarter of 2016 and was down 4.7 percentage points relative to the third quarter of 2017. The decline from the third quarter reflected additional recruiting and training costs as we grow business with our major customers.
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· |
Operating expenses in the fourth quarter of 2017 were $2.8 million, lower by $2.2 million (45 percent) than the $5.0 million of operating expenses in the fourth quarter of 2016 and lower by $0.5 million (15 percent) than the $3.2 million of operating expenses in the third quarter of 2017.
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· |
Operating expenses for the fourth quarter of 2017 included $0.1 million in expenses not associated with normal business operations (primarily higher than expected legal expenses). This compares with $0.2 million in the fourth quarter of 2016 (which included costs related to our proxy contest), and $0.2 million in the third quarter of 2017 (which included higher than expected legal expenses).
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· |
Our lower operating expenses reflects the ongoing impact of our cost saving initiatives, which included operational efficiencies, continued reductions in headcount, tighter fiscal controls on spending, and the renegotiation of certain vendor agreements.
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December 31,
2017
|
(1) |
December 31,
2016
|
||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash, cash equivalents and short-term investments
|
$
|
49,233
|
$
|
53,409
|
||||
Accounts receivable, net
|
11,951
|
9,567
|
||||||
Prepaid expenses and other current assets
|
802
|
1,211
|
||||||
Total current assets
|
61,986
|
64,187
|
||||||
Property and equipment, net
|
1,133
|
1,706
|
||||||
Intangible assets, net
|
250
|
266
|
||||||
Other assets
|
984
|
1,070
|
||||||
Total assets
|
$
|
64,353
|
$
|
67,229
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued compensation
|
$
|
3,661
|
$
|
4,059
|
||||
Other accrued liabilities
|
1,330
|
2,496
|
||||||
Short-term deferred revenue
|
2,006
|
2,759
|
||||||
Total current liabilities
|
6,997
|
9,314
|
||||||
Long-term deferred revenue
|
13
|
106
|
||||||
Other long-term liabilities
|
885
|
501
|
||||||
Total liabilities
|
7,895
|
9,921
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
2
|
2
|
||||||
Additional paid-in-capital
|
267,857
|
267,400
|
||||||
Treasury stock
|
(5,297
|
)
|
(5,295
|
)
|
||||
Accumulated other comprehensive loss
|
(2,108
|
)
|
(2,329
|
)
|
||||
Accumulated deficit
|
(203,996
|
)
|
(202,470
|
)
|
||||
Total stockholders' equity
|
56,458
|
57,308
|
||||||
Total liabilities and stockholders' equity
|
$
|
64,353
|
$
|
67,229
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||||
December 31, 2017
|
(1) |
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
(1) |
December 31, 2016
|
||||||||||||||||
Revenue:
|
||||||||||||||||||||||
Services
|
$
|
14,926
|
$
|
13,682
|
$
|
13,256
|
$
|
54,670
|
$
|
56,311
|
||||||||||||
Software and other
|
1,366
|
1,350
|
1,351
|
5,451
|
5,349
|
|||||||||||||||||
Total revenue
|
16,292
|
15,032
|
14,607
|
60,121
|
61,660
|
|||||||||||||||||
Cost of revenue:
|
||||||||||||||||||||||
Cost of services (2)
|
13,341
|
11,559
|
11,842
|
47,101
|
50,245
|
|||||||||||||||||
Cost of software and other (2)
|
35
|
66
|
109
|
287
|
486
|
|||||||||||||||||
Total cost of revenue
|
13,376
|
11,625
|
11,951
|
47,388
|
50,731
|
|||||||||||||||||
Gross profit
|
2,916
|
3,407
|
2,656
|
12,733
|
10,929
|
|||||||||||||||||
Operating expenses:
|
||||||||||||||||||||||
Research and development (2)
|
604
|
631
|
1,113
|
3,033
|
5,577
|
|||||||||||||||||
Sales and marketing (2)
|
414
|
621
|
1,270
|
2,425
|
6,671
|
|||||||||||||||||
General and administrative (2)
|
1,849
|
1,996
|
2,772
|
8,696
|
12,958
|
|||||||||||||||||
Goodwill impairment
|
||||||||||||||||||||||
Amortization of intangible assets and other
|
-
|
-
|
227
|
16
|
1,028
|
|||||||||||||||||
Restructuring
|
-
|
128
|
723
|
128
|
1,146
|
|||||||||||||||||
Total operating expenses
|
2,867
|
3,376
|
6,105
|
14,298
|
27,380
|
|||||||||||||||||
Income (loss) from continuing operations
|
49
|
31
|
(3,449
|
)
|
(1,565
|
)
|
(16,451
|
)
|
||||||||||||||
Interest income and other, net
|
192
|
164
|
135
|
643
|
518
|
|||||||||||||||||
Income (loss) from continuing operations, before income taxes
|
241
|
195
|
(3,314
|
)
|
(922
|
)
|
(15,933
|
)
|
||||||||||||||
Income tax provision (benefit)
|
547
|
(36
|
)
|
175
|
604
|
307
|
||||||||||||||||
Income (loss) from continuing operations, after income taxes
|
(306
|
)
|
231
|
(3,489
|
)
|
(1,526
|
)
|
(16,240
|
)
|
|||||||||||||
Income from discontinued operations, net of income taxes
|
-
|
-
|
-
|
-
|
284
|
|||||||||||||||||
Net income (loss)
|
$
|
(306
|
)
|
$
|
231
|
$
|
(3,489
|
)
|
$
|
(1,526
|
)
|
$
|
(15,956
|
)
|
||||||||
Earnings (loss) per share from continuing operations (3)
|
||||||||||||||||||||||
Basic
|
$
|
(0.02
|
)
|
$
|
0.01
|
$
|
(0.19
|
)
|
$
|
(0.08
|
)
|
$
|
(0.88
|
)
|
||||||||
Diluted
|
$
|
(0.02
|
)
|
$
|
0.01
|
$
|
(0.19
|
)
|
$
|
(0.08
|
)
|
$
|
(0.88
|
)
|
||||||||
Earnings per share from discontinued operations (3)
|
||||||||||||||||||||||
Basic
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.01
|
||||||||||||
Diluted
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
0.01
|
||||||||||||
Shares used in computing per share amounts: (3)
|
||||||||||||||||||||||
Basic
|
18,720
|
18,692
|
18,514
|
18,644
|
18,409
|
|||||||||||||||||
Diluted
|
18,720
|
18,714
|
18,514
|
18,644
|
18,409
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
Cost of revenue:
|
||||||||||||||||||||
Cost of services
|
$
|
26
|
$
|
19
|
$
|
38
|
$
|
109
|
$
|
172
|
||||||||||
Cost of software and other
|
1
|
-
|
1
|
4
|
5
|
|||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Research and development
|
16
|
(18
|
)
|
54
|
78
|
400
|
||||||||||||||
Sales and marketing
|
25
|
12
|
51
|
59
|
172
|
|||||||||||||||
General and administrative
|
67
|
15
|
67
|
180
|
1,238
|
|||||||||||||||
Total
|
$
|
135
|
$
|
28
|
$
|
211
|
$
|
430
|
$
|
1,987
|
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||||||
December 31, 2017
|
September 30, 2017
|
December 31, 2016
|
December 31, 2017
|
December 31, 2016
|
||||||||||||||||
GAAP cost of revenue
|
$
|
13,376
|
$
|
11,625
|
$
|
11,951
|
$
|
47,388
|
$
|
50,731
|
||||||||||
Stock-based compensation expense (Cost of revenue portion only)
|
(27
|
)
|
(19
|
)
|
(39
|
)
|
(113
|
)
|
(177
|
)
|
||||||||||
Other non-recurring items
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Non-GAAP cost of revenue
|
$
|
13,349
|
$
|
11,606
|
$
|
11,912
|
$
|
47,275
|
$
|
50,554
|
||||||||||
GAAP operating expenses
|
$
|
2,867
|
$
|
3,376
|
$
|
6,105
|
$
|
14,298
|
$
|
27,380
|
||||||||||
Stock-based compensation expense (Excl. cost of revenue portion)
|
(108
|
)
|
(9
|
)
|
(172
|
)
|
(317
|
)
|
(1,810
|
)
|
||||||||||
Amortization of intangible assets and other
|
-
|
-
|
(227
|
)
|
(16
|
)
|
(1,028
|
)
|
||||||||||||
Restructuring charges
|
-
|
(128
|
)
|
(723
|
)
|
(128
|
)
|
(1,146
|
)
|
|||||||||||
Non-GAAP operating expenses
|
$
|
2,759
|
$
|
3,239
|
$
|
4,983
|
$
|
13,837
|
$
|
23,396
|
||||||||||
GAAP income tax provision (benefit)
|
$
|
547
|
$
|
(36
|
)
|
$
|
175
|
$
|
604
|
$
|
307
|
|||||||||
Tax expense on international earnings and profits
|
(543
|
)
|
-
|
-
|
(543
|
)
|
-
|
|||||||||||||
Non-GAAP income tax provision (benefit)
|
$
|
4
|
$
|
(36
|
)
|
$
|
175
|
$
|
61
|
$
|
307
|
|||||||||
GAAP income (loss) from continuing operations, after income taxes
|
$
|
(306
|
)
|
$
|
231
|
$
|
(3,489
|
)
|
$
|
(1,526
|
)
|
$
|
(16,240
|
)
|
||||||
Stock-based compensation expense
|
135
|
28
|
211
|
430
|
1,987
|
|||||||||||||||
Amortization of intangible assets and other
|
-
|
-
|
227
|
16
|
1,028
|
|||||||||||||||
Restructuring charges
|
-
|
128
|
723
|
128
|
1,146
|
|||||||||||||||
Tax expense on international earnings and profits
|
543
|
-
|
-
|
543
|
-
|
|||||||||||||||
Total impact of Non-GAAP exclusions
|
678
|
156
|
1,161
|
1,117
|
4,161
|
|||||||||||||||
Non-GAAP income (loss) from continuing operations, after income taxes
|
$
|
372
|
$
|
387
|
$
|
(2,328
|
)
|
$
|
(409
|
)
|
$
|
(12,079
|
)
|
|||||||
Earnings (loss) per share from continuing operations (3)
|
||||||||||||||||||||
Basic - GAAP
|
$
|
(0.02
|
)
|
$
|
0.01
|
$
|
(0.19
|
)
|
$
|
(0.08
|
)
|
$
|
(0.88
|
)
|
||||||
Basic - Non-GAAP
|
$
|
0.02
|
$
|
0.02
|
$
|
(0.13
|
)
|
$
|
(0.02
|
)
|
$
|
(0.66
|
)
|
|||||||
Diluted - GAAP
|
$
|
(0.02
|
)
|
$
|
0.01
|
$
|
(0.19
|
)
|
$
|
(0.08
|
)
|
$
|
(0.88
|
)
|
||||||
Diluted - Non-GAAP
|
$
|
0.02
|
$
|
0.02
|
$
|
(0.13
|
)
|
$
|
(0.02
|
)
|
$
|
(0.66
|
)
|
|||||||
Shares used in computing per share amounts (GAAP) (3)
|
||||||||||||||||||||
Basic
|
18,720
|
18,692
|
18,514
|
18,644
|
18,409
|
|||||||||||||||
Diluted
|
18,720
|
18,714
|
18,514
|
18,644
|
18,409
|
|||||||||||||||
Shares used in computing per share amounts (Non-GAAP) (3)
|
||||||||||||||||||||
Basic
|
18,720
|
18,692
|
18,514
|
18,644
|
18,409
|
|||||||||||||||
Diluted
|
19,037
|
18,714
|
18,514
|
18,644
|
18,409
|