Washington, DC 20549
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FORM 8-K
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CURRENT REPORT
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Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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March 7, 2019
Date
of report (Date of earliest event reported)
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SUPPORT.COM, INC.
(Exact
Name of Registrant as Specified in Charter)
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Delaware
(State
or Other
Jurisdiction
of
Incorporation)
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000-30901
(Commission
File No.)
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94-3282005
(I.R.S.
Employer Identification No.)
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1200 Crossman Ave., Suite 210,
Sunnyvale, CA 94089
(Address of Principal Executive Offices) (Zip
Code)
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(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)
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By:
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/s/ Richard A.
Bloom
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Name:
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Richard A. Bloom
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Title:
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President and Chief Executive Officer
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Exhibit No.
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Description
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Press Release of the Company, dated March 7, 2019.
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SUPPORT.COM,
INC.
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GAAP
CONDENSED CONSOLIDATED BALANCE SHEETS
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(in
thousands)
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(unaudited)
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Dec
31,
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December
31,
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2018
(1)
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2017
(2)
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Assets
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Current
assets:
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Cash, cash
equivalents and short-term investments
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$49,649
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$49,233
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Accounts
receivable, net
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12,292
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11,951
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Prepaid expenses
and other current assets
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999
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802
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Total
current assets
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62,940
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61,986
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Property and
equipment, net
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703
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1,133
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Intangible assets,
net
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250
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250
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Other
assets
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707
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984
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Total
assets
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$64,600
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$64,353
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Liabilities
and Stockholders' Equity
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Current
liabilities:
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Accounts payable
and accrued compensation
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$3,791
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$3,661
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Other accrued
liabilities
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978
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1,330
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Acrued legal
settlement
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10,000
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-
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Short-term deferred
revenue
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1,135
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2,006
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Total
current liabilities
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15,904
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6,997
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Long-term deferred
revenue
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-
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13
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Other long-term
liabilities
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800
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885
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Total
liabilities
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16,704
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7,895
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Stockholders'
equity:
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Common
stock
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2
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2
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Additional
paid-in-capital
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268,794
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267,857
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Treasury
stock
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(5,297)
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(5,297)
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Accumulated other
comprehensive loss
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(2,507)
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(2,108)
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Accumulated
deficit
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(213,096)
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(203,996)
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Total
stockholders' equity
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47,896
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56,458
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Total
liabilities and stockholders' equity
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$64,600
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$64,353
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SUPPORT.COM,
INC.
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GAAP
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(in
thousands, except per share amounts)
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(unaudited)
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Three
Months Ended
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Twelve
Months Ended
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Dec 31, 2018
(1)
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Sept 30,
2018
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Dec 31,
2017
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Dec 31, 2018
(1)
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Dec 31, 2017
(2)
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Revenue:
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Services
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$16,297
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$16,759
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$14,926
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$64,476
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$54,670
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Software and
other
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1,245
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1,258
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1,366
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5,073
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5,451
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Total
revenue
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17,542
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18,017
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16,292
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69,549
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60,121
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Cost
of revenue:
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Cost of services
(3)
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14,411
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14,412
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13,341
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57,396
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47,101
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Cost of software
and other (3)
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56
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51
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35
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208
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287
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Total
cost of revenue
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14,467
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14,463
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13,376
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57,604
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47,388
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Gross
profit
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3,075
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3,554
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2,916
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11,945
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12,733
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Operating
expenses:
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Research and
development (3)
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698
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690
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604
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2,780
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3,033
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Sales and marketing
(3)
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440
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424
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414
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1,823
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2,425
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General and
administrative (3)
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1,785
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1,800
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1,849
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7,408
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8,696
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Amortization of
intangible assets and other
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-
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-
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-
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-
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16
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Restructuring
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-
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-
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-
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-
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128
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Legal
Settlement
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-
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10,000
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-
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10,000
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-
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Total
operating expenses
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2,923
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12,914
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2,867
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22,011
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14,298
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Income
(loss) from operations
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152
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(9,360)
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49
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(10,066)
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(1,565)
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Interest income and
other, net
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289
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241
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192
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965
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643
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Income
(loss) before income taxes
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441
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(9,119)
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241
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(9,101)
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(922)
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Income
tax provision (benefit)
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23
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29
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547
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(1)
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604
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Net
income (loss)
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$418
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$(9,148)
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$(306)
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$(9,100)
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$(1,526)
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Net
earnings (loss) per share (4)
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Basic
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$0.02
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$(0.49)
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$(0.02)
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$(0.48)
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$(0.08)
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Diluted
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$0.02
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$(0.49)
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$(0.02)
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$(0.48)
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$(0.08)
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Shares
used in computing per share amounts: (4)
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Basic
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18,923
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18,805
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18,720
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18,826
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18,644
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Diluted
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18,983
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18,805
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18,720
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18,826
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18,644
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Note 3: Includes stock-based
compensation expense as follows:
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Three
Months Ended
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Twelve
Months Ended
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Dec 31,
2018
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Sept 30,
2018
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Dec 31,
2017
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Dec 31,
2018
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Dec 31,
2017
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Cost
of revenue:
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Cost of
services
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$14
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$11
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$26
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$63
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$109
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Cost of software
and other
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-
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-
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1
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-
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4
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Operating
expenses:
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Research and
development
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9
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9
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16
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42
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78
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Sales and
marketing
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14
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14
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25
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54
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59
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General and
administrative
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56
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68
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67
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521
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180
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Total
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$93
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$102
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$135
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$680
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$430
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SUPPORT.COM,
INC.
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RECONCILIATION
OF GAAP FINANCIAL RESULTS TO NON-GAAP FINANCIAL
MEASURES
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(in
thousands, except per share amounts)
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(unaudited)
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Three
Months Ended
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Twelve
Months Ended
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Dec 31,
2018
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Sept 30,
2018
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Dec 31,
2017
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Dec 31,
2018
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Dec 31,
2017
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GAAP
cost of revenue
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$14,467
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$14,463
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$13,376
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$57,604
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$47,388
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Stock-based
compensation expense (Cost of revenue portion only)
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(14)
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(11)
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(27)
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(63)
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(113)
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Non-GAAP
cost of revenue
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$14,453
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$14,452
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$13,349
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$57,541
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$47,275
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GAAP
operating expenses
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$2,923
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$12,914
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$2,867
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$22,011
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$14,298
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Stock-based
compensation expense (Excl. cost of revenue portion)
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(79)
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(91)
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(108)
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(617)
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(317)
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Amortization of
intangible assets and other
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-
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-
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-
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-
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(16)
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Restructuring
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-
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-
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-
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-
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(128)
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Legal
settlement
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-
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(10,000)
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-
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(10,000)
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-
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Non-GAAP
operating expenses
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$2,844
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$2,823
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$2,759
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$11,394
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$13,837
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GAAP
net income (loss)
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$418
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$(9,148)
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$(306)
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$(9,100)
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$(1,526)
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Stock-based
compensation expense
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93
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102
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135
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680
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430
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Legal
settlement
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-
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10,000
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-
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10,000
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-
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Amortization of
intangible assets and other
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-
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-
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-
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-
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16
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Restructuring
|
-
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-
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-
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-
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128
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Tax expense on
international earnings and profits
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-
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-
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543
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543
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Total
impact of Non-GAAP exclusions
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93
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10,102
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678
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10,680
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1,117
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Non-GAAP
net income (loss)
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$511
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$954
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$372
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$1,580
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$(409)
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Earnings
(loss) per share (3)
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Basic -
GAAP
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$0.02
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$(0.49)
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$(0.02)
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$(0.48)
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$(0.08)
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Basic -
Non-GAAP
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$0.03
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$0.05
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$0.02
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$0.08
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$(0.02)
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Diluted -
GAAP
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$0.02
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$(0.49)
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$(0.02)
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$(0.48)
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$(0.08)
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Diluted -
Non-GAAP
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$0.03
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$0.05
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$0.02
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$0.08
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$(0.02)
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Shares
used in computing per share amounts (GAAP)
|
|
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Basic
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18,923
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18,805
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18,720
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18,826
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18,644
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Diluted
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18,983
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18,805
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18,720
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18,912
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18,644
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Shares
used in computing per share amounts (Non-GAAP) (3)
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|
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Basic
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18,923
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18,805
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18,720
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18,826
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18,644
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Diluted
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18,983
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18,974
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19,037
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18,912
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18,644
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