EX-99.1 2 sprt_ex991.htm PRESS RELEASE Blueprint
  Exhibit 99.1
 
Support.com Reports First Quarter 2019 Financial Results
 
Sunnyvale, CA – May 13, 2019 – Support.com, Inc. (NASDAQ: SPRT), a full-spectrum leader in outsourced call center and direct-to-consumer technical support solutions, today reported unaudited financial results for its first quarter ended March 31, 2019.
 
Q1 2019 Financial Summary
 
For the first quarter of 2019, total revenue was $18.1 million, up 9 percent compared to revenues of $16.5 million in the first quarter of 2018 and up 3 percent compared to revenues of $17.5 million in the fourth quarter of 2018.
 
We recorded net income for the first quarter of 2019 of $1.4 million, or $0.08 per share, compared to a loss of $(0.8) million, or $(0.04) per share, in the first quarter of 2018 and net income of $0.4 million, or $0.02 per share, in the fourth quarter of 2018.
 
Key changes in our net income/(loss) included the following:
 
●
Gross profit increased by $1.9 million in the first quarter compared to the same period in 2018, and by $1.1 million compared to the fourth quarter of 2018.
●
Our gross profit margin increased by 9 percentage points compared with the same quarter of 2018 and increased by nearly 6 percentage points relative to the fourth quarter of 2018. The increase over the prior quarter reflect the success of our continued investment in recruiting and training talented agents with several key customers while improving our operational efficiencies.
●
Operating expenses in the first quarter of 2019 were $3.0 million, as compared with $3.4 million of operating expenses in the first quarter of 2018 and slightly higher than the $2.9 million of operating expenses in the fourth quarter of 2018.
●
Operating expenses in the first quarter of 2018 include $0.4 million of stock compensation related expenses as compared with $44,000 in the first quarter of 2019.
 
Balance Sheet Information
 
At March 31, 2019, cash, cash equivalents and short-term investments were $48.0 million, of which $10 million was paid to the Federal Trade Commission (“FTC”) on April 1, 2019 as a part of the previously disclosed settlement negotiations. Cash, cash equivalents and short-term investments were $47.6 million at March 31, 2018 and $49.6 million at December 31, 2018.
 
Total assets as of March 31, 2019 were $65.6 million and total shareholders’ equity was $49.5 million.
 
Support.com will not host a conference call discussing the Company’s first quarter results. For more information, please visit the Investor Relations section of the Support.com website at Support.com/about-us/investor-relations/.
 
About Support.com
 
Support.com, Inc. (NASDAQ: SPRT) is a full-spectrum leader in outsourced call center and direct-to-consumer technical support solutions. The company’s skilled US-based workforce delivers high quality, turnkey support solutions. With more than 20 years serving well-known brands, Support.com has the expertise, tools, and software solutions to troubleshoot and maintain all the devices in the connected home, helping people get the most out of their technology. For more information, please visit www.support.com.
 
Support.com, Inc. is an Equal Opportunity Employer. For more information, visit http://www.support.com/about-us/careers.
 
© 2019 Support.com, Inc. All rights reserved. Support.com and the Support.com logo are trademarks or registered trademarks of Support.com, Inc. in the United States and other countries. All other marks are the property of their respective owners.
 
Safe Harbor Statement
 
This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Support.com. These statements include, but are not limited to, statements that address our expected future business and financial performance and other statements identified by words such as "will", "expect", "believe", "anticipate", "estimate", "should", "intend", "plan", "potential", "predict" "project", "aim", and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of the management of Support.com, as well as assumptions made by, and information currently available to, such management, current market trends and market conditions and involve risks and uncertainties, many of which are outside the Company's and management's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, you should not place undue reliance on such statements. Forward-looking statements include, but are not limited to, all statements relating to expected financial performance (including without limitation statements involving growth and projections of revenue, margin, profitability, income (loss) from continuing operations, income (loss) per share from continuing operations, cash usage or generation, cash balance as of any future date, capital structure and other financial items); the plans and objectives of management for future operations, customer relationships, products, services or investments; personnel matters; and future performance in economic and other terms. Such forward-looking statements are based on current expectations that involve a number of uncertainties and risks that may cause actual events or results to differ materially from those indicated by such forward-looking statements, including, among others, our ability to retain and grow major programs, our ability to expand and diversify our customer base, our ability to market and sell our Support.com Cloud (formerly “Nexus®”) software-as-a-service (SaaS) offering, our ability to maintain and grow revenue, any acquisitions we may make, including integrating acquired companies with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions, our ability to successfully develop new products and services, our ability to manage our workforce, our ability to operate in markets that are subject to extensive regulations, such as support for home security systems, our ability to control expenses and achieve desired margins,  our ability to maintain or improve gross margin, our dependence on a small number of customers and partners, our ability to attract, train and retain talented employees, potential intellectual property, class action or other litigation, fluctuations in government laws and regulations, our ability to utilize and realize the value of our net operating loss carryforwards and how they could be substantially limited or permanently impaired, given our current market capitalization and cash position, our ability to execute the cost reduction program involving the planned actions on the expected schedule, our ability to achieve the cost savings expected in connection with the cost reduction plan, the ultimate effect of any such cost reductions on our financial results, any expenses or reputational damage associated with resolving customer warranty and/or indemnification claims; and our ability to manage the effects of the cost reduction plan on our workforce and other operations. Our filings with the SEC, which may be obtained for free at the SEC's website at http://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.
 
 
 
 
SUPPORT.COM, INC.
GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 March 31,
 
 
 December 31,
 
 
 
2019
(1)
 
2018
(2)
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash, cash equivalents and short-term investments
 $47,988 
 $49,649 
Accounts receivable, net
  14,871 
  12,292 
Prepaid expenses and other current assets
  958 
  999 
Total current assets
  63,817 
  62,940 
Property and equipment, net
  637 
  703 
Intangible assets, net
  250 
  250 
Right of Use assets
  186 
  - 
Other assets
  708 
  707 
 
    
    
Total assets
 $65,598 
 $64,600 
 
    
    
Liabilities and Stockholders' Equity
    
    
Current liabilities:
    
    
Accounts payable and accrued compensation
 $2,745 
 $3,791 
Other accrued liabilities
  1,009 
  978 
Accrued legal settlement
  10,000 
  10,000 
Short-term lease liability
  175 
  - 
Short-term deferred revenue
  1,315 
  1,135 
Total current liabilities
  15,244 
  15,904 
Long-term lease liability
  13 
  - 
Other long-term liabilities
  801 
  800 
Total liabilities
  16,058 
  16,704 
 
    
    
Stockholders' equity:
    
    
Common stock
  2 
  2 
Additional paid-in-capital
  268,846 
  268,794 
Treasury stock
  (5,297)
  (5,297)
Accumulated other comprehensive loss
  (2,358)
  (2,507)
Accumulated deficit
  (211,653)
  (213,096)
Total stockholders' equity
  49,540 
  47,896 
 
    
    
Total liabilities and stockholders' equity
 $65,598 
 $64,600 
 
 
 
 
 
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 Decembeer 31, 2018.
 
 
 
 
 
 
 
 
 
SUPPORT.COM, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
 
 
 
 Three Months Ended
 
 
 
March 31, 2019
  (1)
 
 December 31, 2018
 
 
 March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Services
 $16,864 
 $16,297 
 $15,200 
Software and other
  1,200 
  1,245 
  1,322 
Total revenue
  18,064 
  17,542 
  16,522 
 
    
    
    
Cost of revenue:
    
    
    
Cost of services
  13,798 
  14,411 
  14,111 
Cost of software and other
  54 
  56 
  55 
Total cost of revenue
  13,852 
  14,467 
  14,166 
Gross profit
  4,212 
  3,075 
  2,356 
Operating expenses:
    
    
    
Research and development
  749 
  698 
  711 
Sales and marketing
  392 
  440 
  550 
General and administrative
  1,896 
  1,785 
  2,146 
Total operating expenses
  3,037 
  2,923 
  3,407 
 
    
    
    
Income (loss) from operations
  1,175 
  152 
  (1,051)
 
    
    
    
Interest income and other, net
  296 
  289 
  205 
 
    
    
    
Income (loss) before income taxes
  1,471 
  441 
  (846)
 
    
    
    
Income tax provision (benefit)
  28 
  23 
  (80)
 
    
    
    
Net income (loss)
 $1,443 
 $418 
 $(766)
 
    
    
    
 
    
    
    
Net earnings (loss) per share
    
    
    
Basic
 $0.08 
 $0.02 
 $(0.04)
Diluted
 $0.08 
 $0.02 
 $(0.04)
 
    
    
    
Shares used in computing per share amounts
    
    
    
Basic
  18,955 
  18,923 
  18,729 
Diluted
  19,004 
  18,983 
  18,729 
 
Investor Contact
 
Investor Relations, Support.com
+1 (650) 556-8574
IR@support.com