imi-8k_20181102.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):  November 2, 2018

 

Intermolecular, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware

001-35348

20-1616267

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

 

 

3011 N. First Street

San Jose, California

 

95134

(Address of Principal Executive Offices)

 

(Zip Code)

 

(408) 582-5700

(Registrant’s Telephone Number, Including Area Code)

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 


 

ITEM 2.02.        RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On November 6, 2018, Intermolecular, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2018. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished in Item 2.02 of this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except expressly set forth by specific reference in such filing.

ITEM 8.01.        OTHER EVENTS

On November 2, 2018, the Company’s Board of Directors (the “Board”) approved a stock repurchase program (the “Share Repurchase Program”) that authorizes, but does not obligate, the Company to repurchase up to $10 million of its common stock. Under the Share Repurchase Program, the Company may repurchase its common stock through open market or privately negotiated transactions. The timing and amount of repurchase transactions will be based on the Company’s evaluation of market conditions, share price, legal requirements and other factors. The Company expects to fund repurchases under the Share Repurchase Program with its existing cash and cash generated from operations. The Share Repurchase Program does not have an expiration date and does not obligate the Company to purchase any shares. The authorization for the Share Repurchase Program may be terminated, increased or decreased by the Board any time.

ITEM 9.01.        FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

The following exhibit relating to Item 2.02 shall be deemed to be furnished and not filed:

99.1 Press Release dated November 6, 2018, entitled “Intermolecular Reports Third Quarter and Nine Month 2018 Financial Results

 

 

 


 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

INTERMOLECULAR, INC.

 

Date:  November 6, 2018

By:

 

/s/ Bill Roeschlein

 

 

 

Bill Roeschlein

 

 

 

Chief Financial Officer

 

 

 

imi-ex991_6.htm

 

Exhibit 99.1

Intermolecular Reports Third Quarter and Nine Month 2018 Financial Results

 

Fifth Consecutive Quarter of Positive Adjusted EBITDA;

Secured Major New Program Service Agreement with New Leading Semiconductor Manufacturer;

Board of Directors Approves $10 Million Share Repurchase Program

 

SAN JOSE, Calif., November 6, 2018 -- Intermolecular, Inc. (Nasdaq: IMI), the trusted partner for advanced materials innovation, today reported results for the third quarter and nine months ended September 30, 2018.

 

Q3 2018 Financial and Operational Highlights

 

Revenue of $7.9 million, which exceeded the company’s guidance.

 

Program revenue increased 7% year-over-year to $7.4 million.

 

Adjusted EBITDA totaled $0.5 million, which exceeded the company’s guidance and marked the company’s fifth consecutive quarter of positive adjusted EBITDA.

 

Net loss totaled $(0.7) million, an improvement from net loss of $(1.8) million in the same period a year ago.

 

Secured four program contracts during the period.

 

Recent Operational Highlights

 

Signed a major new program service agreement with a leading semiconductor manufacturer during the fourth quarter of 2018. Management expects a material revenue contribution in 2019.

 

Nine Month 2018 Financial and Operational Highlights

 

Revenue increased 3% to $27.3 million.

 

Program revenue increased 29% to a $26.0 million.

 

Total operating expenses decreased 30% to $20.5 million.

 

Adjusted EBITDA improved to $3.3 million from a loss of $(2.8) million in the same period a year ago.

 

Net loss totaled $(0.8) million, a significant improvement from a net loss of $(10.5) million in the same period a year ago.

 

Cash and investments increased $4.8 million from December 31, 2017 to $30.6 million, or $0.62 per share, at September 30, 2018. The company also continued to have no debt.

 

Secured nine program contracts during the period.

 

Management Commentary

“Our financial results for the third quarter exceeded our guidance for the period,” said Intermolecular President and CEO Chris Kramer. “Q3 marked our fifth consecutive quarter of positive adjusted EBITDA, which we believe reflects the continued strength of our services business and consistent execution of our ongoing cost management initiatives. Looking at our financial results for the first nine months of 2018, our adjusted EBITDA reached the highest level in five years, which we believe reflects both strong demand for our services as well as a 30% reduction in operating expenses.

 

“While we do expect a slowdown in the fourth quarter due to the timing of certain program completions as well as a temporary delay in the scheduled commencement of a new program, we are encouraged by the recent major new program service agreement we secured in Q4 with a leading semiconductor manufacturer. With this new relationship as well as our increasing momentum in additional new programs and extensions, coupled with the improved operational efficiencies that we have been implementing, we believe we are well-positioned for 2019 and beyond. Additionally, the share repurchase program we announced today is a reflection of our confidence in the business and our commitment to maximizing shareholder value.”

 


 

Third Quarter of 2018 Financial Results

Revenue for the third quarter of 2018 was $7.9 million, a decrease of 20% from $9.8 million in the second quarter of 2018, and a decrease of 9% from $8.6 million in the same period a year ago. Program revenue was $7.4 million, a 21% decrease from $9.4 million in the second quarter of 2018, and a 7% increase from $6.9 million in the same period a year ago.

 

Gross profit for the third quarter of 2018 was $5.8 million (74% of total revenue), a 1% increase from $5.7 million (67% of total revenue) in the same period a year ago.

 

Total operating expenses for the third quarter of 2018 were $6.7 million, flat compared to the second quarter of 2018, and a decrease of 13% compared to $7.7 million in the same period a year ago.

 

Net loss for the third quarter of 2018 totaled $(0.7) million, or $(0.01) per basic and diluted share, compared to net income of $0.5 million, or $0.01 per basic and diluted share in the second quarter of 2018, and an improvement from a net loss of $(1.8) million, or $(0.04) per basic and diluted share in the same period a year ago.

 

Non-GAAP net loss, which excludes stock-based compensation expense, for the third quarter of 2018 totaled $(0.5) million, or $(0.01) per basic and diluted share, compared to non-GAAP net income of $0.7 million, or $0.01 per basic and diluted share in the second quarter of 2018, and an improvement from a non-GAAP net loss of $(1.6) million, or $(0.03) per basic and diluted share in the same period a year ago.  

 

Adjusted EBITDA for the third quarter of 2018 totaled $0.5 million, compared to $1.8 million in the second quarter of 2018, and an improvement from an adjusted EBITDA of $0.1 million in the same period a year ago.  

 

Cash and investments totaled $30.6 million at the end of third quarter of 2018, a decrease of $0.7 million compared to $31.3 million at the end of second quarter of 2018. The company had no debt at quarter end.    

 

Nine Month 2018 Financial Results

Revenue for the first nine months of 2018 was $27.3 million, an increase of 3% from $26.7 million in the same period a year ago. Program revenue was $26.0 million, an increase of 29% from $20.2 million in the same period a year ago.

 

Gross profit for the first nine months of 2018 was $19.0 million (70% of total revenue), a 4% increase from $18.2 million (68% of total revenue) in the same period a year ago.

 

Total operating expenses for the first nine months of 2018 was $20.5 million, a decrease of 30% compared to $29.2 million in the same period a year ago.

 

Net loss for the first nine months of 2018 totaled $(0.8) million, or $(0.02) per basic and diluted share, an improvement from a net loss of $(10.5) million, or $(0.21) per basic and diluted share in the same period a year ago.

 

Non-GAAP net loss for the first nine months of 2018 totaled $(0.2) million, or $(0.00) per basic and diluted share, an improvement from a non-GAAP net loss of $(9.3) million, or $(0.19) per basic and diluted share in the same period a year ago.  

 

Adjusted EBITDA for the first nine months of 2018 totaled $3.3 million, an improvement from an adjusted EBITDA loss of $(2.8) million in the same period a year ago.  

 

 

2018 Financial Outlook

The following statements are based on Intermolecular’s current expectations for the fourth quarter ending December 31, 2018. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Forward-Looking Statements” below. Intermolecular does not plan to update, nor does it undertake any obligation to update, this outlook in the future.

 

 

Revenue is projected to be in the range of $5.2 million to $5.8 million;

 

Net loss is projected to be between $(2.8) million and $(3.2) million, or $(0.06) per share (based on approximately 49.8 million shares expected to be outstanding);


 

 

Non-GAAP net loss is projected to be between $(2.4) million and $(2.8) million, or $(0.05) per share and $(0.06) per share, respectively (based on approximately 49.8 million shares expected to be outstanding); and,

 

Adjusted EBITDA loss is projected to be between $(1.8) million and $(2.2) million.

 

Intermolecular reports revenue, cost of revenue, gross margin, operating income (loss), net income (loss) and earnings (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and additionally on a non-GAAP basis. A reconciliation of the non-GAAP financial measures with the most directly comparable GAAP measures, as well as a description of the items excluded from the non-GAAP measures, is included in the financial statements portion of this press release. Please refer to “Reconciliation of GAAP to Non-GAAP Financial Measures” and “Reconciliation of GAAP Net Loss to Non-GAAP Net Loss” below.

 

Conference Call

Intermolecular will host a conference call and simultaneous audio-only webcast today (November 6, 2018) at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss these results. The call will be hosted by Intermolecular President and CEO Chris Kramer and CFO Bill Roeschlein.

 

U.S. dial-in number: (877) 251-1860

International dial-in number: (224) 357-2386

Conference ID: 9991865

 

Please call the conference telephone number five to ten minutes prior to start time. An operator will register your name and organization. If you have difficulty connecting with the conference call, please contact Liolios Group at (949) 574-3860.

A live and archived webcast (audio only) of the call will be available on Intermolecular’s website for up to 30 days after the call.

 

About Intermolecular, Inc.

Intermolecular® is the trusted partner for advanced materials innovation. Advanced materials are at the core of innovation in the 21st century for a wide range of industries including semiconductors, consumer electronics, automotive and aerospace. With its substantial materials expertise, accelerated learning and experimentation platform, and information and analytics infrastructure, Intermolecular has a ten-year track record helping leading companies accelerate and de-risk materials innovation. Learn more at www.intermolecular.com.

 

“Intermolecular” and the Intermolecular logo are registered trademarks; all rights reserved.

 

Forward-Looking Statements

Statements made in this press release and the earnings call referencing the press release that are not statements of historical fact are forward-looking statements. Forward-looking statements are subject to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are commonly identified by words such as “would,” “may,” “expects,” “believes,” “plans,” “intends,” “projects” and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this document are based on current beliefs, assumptions and expectations, speak only as of the date of this document and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond Intermolecular’s control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Material factors that could cause actual results to differ materially from current expectations include, without limitation, the following: our ability to productize our workflows with existing and future customers; expectations regarding our future revenue, cash flow and GAAP and non-GAAP net income or loss; financial condition; the ability of our new business model to generate profits and long-term shareholder returns; the extent to which technology developed in collaboration with our customers will continue to remain on the critical path and have significant value for such customers and us as well as the industry as a whole; and anticipated growth in our current markets through expansion of existing customer programs and the entry into other engagements with new customers. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations, including but not limited to: our ability to execute on our strategy, prove our business model and remain technologically competitive in rapidly evolving industry conditions; commercial acceptance of our HPC platform and methodology as effective R&D tools; our ability to achieve and sustain profitability; the ability of our customers to achieve their announced product roadmaps in a timely manner; the extent to which we are able to successfully extend and expand relationships with existing customers; our ability to manage the growth of our business; the rapid technology changes and volatility of the customers and industries we serve; our potential need for future capital to finance our operations; and other risks described in our most recent annual report on Form 10-K as updated by our quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission available at www.sec.gov, particularly in the sections titled "Risk


 

Factors." All forward-looking statements are based on management’s current estimates, projections and assumptions, and we assume no obligation to update them.

 

Non-GAAP Financial Measures

To supplement the financial data presented on a GAAP basis, we also disclose certain non-GAAP financial measures, which exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP, do not serve as an alternative to GAAP and may be calculated differently than non-GAAP financial information disclosed by other companies. These results should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. We believe that our non-GAAP financial information provides useful information to management and investors regarding financial and business trends relating to our financial condition and results of operations because the non-GAAP measures exclude charges that management considers to be outside of Intermolecular's core operating results. We believe that the non-GAAP measures of revenue, cost of net revenue, gross profit, gross margin, operating (loss) income, net (loss) income, earnings per share and net (loss) income per share, viewed in combination with our financial results calculated in accordance with GAAP, provide investors with additional perspective and a more meaningful understanding of our ongoing operating performance. In addition, management uses these non-GAAP measures to review and assess financial performance, to determine executive officer incentive compensation and to plan and forecast performance in future periods.

 

Corporate Contact

Bill Roeschlein

Intermolecular, Inc.

Chief Financial Officer

bill.roeschlein@intermolecular.com

(408) 582-5415

 

Investor Contact

Matt Glover or Najim Mostamand, CFA

Liolios Group, Inc.

IMI@liolios.com

(949) 574-3860


 

Intermolecular, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts, Unaudited)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Program revenue

 

$

7,354

 

 

$

6,869

 

 

$

25,975

 

 

$

20,160

 

 

Licensing and royalty revenue

 

 

508

 

 

 

1,753

 

 

 

1,364

 

 

 

6,495

 

 

Total revenue

 

 

7,862

 

 

 

8,622

 

 

 

27,339

 

 

 

26,655

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of program revenue

 

 

2,054

 

 

 

2,864

 

 

 

8,286

 

 

 

8,106

 

 

Cost of licensing and royalty revenue

 

 

4

 

 

 

11

 

 

 

8

 

 

 

303

 

 

Total cost of revenue

 

 

2,058

 

 

 

2,875

 

 

 

8,294

 

 

 

8,409

 

 

Gross profit

 

 

5,804

 

 

 

5,747

 

 

 

19,045

 

 

 

18,246

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

4,463

 

 

 

4,835

 

 

 

12,551

 

 

 

17,328

 

 

Sales and marketing

 

 

692

 

 

 

874

 

 

 

2,346

 

 

 

3,285

 

 

General and administrative

 

 

1,581

 

 

 

2,000

 

 

 

5,615

 

 

 

7,225

 

 

Restructuring charges

 

 

 

 

 

 

 

 

 

 

 

1,351

 

 

Total operating expenses

 

 

6,736

 

 

 

7,709

 

 

 

20,512

 

 

 

29,189

 

 

Loss from operations

 

 

(932

)

 

 

(1,962

)

 

 

(1,467

)

 

 

(10,943

)

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

 

168

 

 

 

70

 

 

 

413

 

 

 

182

 

 

Other income (expense), net

 

 

78

 

 

 

64

 

 

 

241

 

 

 

243

 

 

Total other income (expense), net

 

 

246

 

 

 

134

 

 

 

654

 

 

 

425

 

 

Loss before provision for income taxes

 

 

(686

)

 

 

(1,828

)

 

 

(813

)

 

 

(10,518

)

 

Provision for income taxes

 

 

 

 

 

 

 

 

1

 

 

 

1

 

 

Net loss

 

$

(686

)

 

$

(1,828

)

 

$

(814

)

 

$

(10,519

)

 

Net loss per share, basic and diluted

 

$

(0.01

)

 

$

(0.04

)

 

$

(0.02

)

 

$

(0.21

)

 

Weighted-average number of shares used in computing net loss per share, basic and diluted

 

 

49,746,082

 

 

 

49,554,701

 

 

 

49,667,518

 

 

 

49,543,014

 

 


 

Intermolecular, Inc.

Condensed Consolidated Balance Sheets

(In thousands, Unaudited)

 

As of September 30, 2018

 

 

As of December 31, 2017

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,889

 

 

$

6,090

 

Short-term investments

 

 

23,759

 

 

 

18,060

 

Total cash, cash equivalents and short-term investments

 

 

30,648

 

 

 

24,150

 

Accounts receivable

 

 

3,330

 

 

 

5,519

 

Prepaid expenses and other current assets

 

 

949

 

 

 

1,069

 

Total current assets

 

 

34,927

 

 

 

30,738

 

Long-term investments

 

 

 

 

 

1,657

 

Materials inventory

 

 

2,752

 

 

 

2,781

 

Property and equipment, net

 

 

3,497

 

 

 

5,913

 

Intangible assets, net

 

 

2,141

 

 

 

2,620

 

Other assets

 

 

542

 

 

 

600

 

Total assets

 

$

43,859

 

 

$

44,309

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

752

 

 

$

928

 

Accrued liabilities

 

 

917

 

 

 

865

 

Accrued compensation and employee benefits

 

 

2,602

 

 

 

2,535

 

Deferred revenue

 

 

289

 

 

 

941

 

Total current liabilities

 

 

4,560

 

 

 

5,269

 

Other long-term liabilities

 

 

2,737

 

 

 

2,967

 

Total liabilities

 

 

7,297

 

 

 

8,236

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock

 

 

50

 

 

 

50

 

Additional paid-in capital

 

 

215,606

 

 

 

214,796

 

Accumulated other comprehensive loss

 

 

(19

)

 

 

(35

)

Accumulated deficit

 

 

(179,075

)

 

 

(178,738

)

Total stockholders’ equity

 

 

36,562

 

 

 

36,073

 

Total liabilities and stockholders’ equity

 

$

43,859

 

 

$

44,309

 


 

Intermolecular, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands, Unaudited)

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(814

)

 

$

(10,519

)

Adjustments to reconcile net loss to net cash used in operating

   activities:

 

 

 

 

 

 

 

 

Depreciation, amortization and accretion

 

 

3,514

 

 

 

5,369

 

Stock-based compensation

 

 

624

 

 

 

1,221

 

Loss on disposal of property and equipment

 

 

 

 

 

70

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,666

 

 

 

1,587

 

Prepaid expenses and other assets

 

 

177

 

 

 

663

 

Materials inventory

 

 

57

 

 

 

391

 

Accounts payable

 

 

(304

)

 

 

688

 

Accrued and other liabilities

 

 

(220

)

 

 

370

 

Deferred revenue

 

 

(652

)

 

 

485

 

Net cash provided by operating activities

 

 

5,048

 

 

 

325

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchase of investments

 

 

(21,968

)

 

 

(15,505

)

Redemption of investments

 

 

18,151

 

 

 

20,014

 

Purchase of property and equipment

 

 

(620

)

 

 

(705

)

Proceeds from sale of equipment

 

 

1

 

 

 

12

 

Net cash (used in) provided by investing activities

 

 

(4,436

)

 

 

3,816

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Payment of capital leases

 

 

 

 

 

(13

)

Proceeds from exercise of common stock options

 

 

187

 

 

 

 

Net cash (used in) provided by financing activities

 

 

187

 

 

 

(13

)

Net increase (decrease) in cash and cash equivalents

 

 

799

 

 

 

4,128

 

Cash and cash equivalents at beginning of period

 

 

6,090

 

 

 

5,759

 

Cash and cash equivalents at end of period

 

$

6,889

 

 

$

9,887

 


 

Intermolecular, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share amounts and percentages, Unaudited)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

GAAP cost of net revenue

 

$

2,058

 

 

$

2,875

 

 

$

8,294

 

 

$

8,409

 

Stock-based compensation expense (a)

 

 

(33

)

 

 

(38

)

 

 

(125

)

 

 

(144

)

Non-GAAP cost of net revenue

 

$

2,025

 

 

$

2,837

 

 

$

8,169

 

 

$

8,265

 

GAAP gross profit

 

$

5,804

 

 

$

5,747

 

 

$

19,045

 

 

$

18,246

 

Stock-based compensation expense (a)

 

 

33

 

 

 

38

 

 

 

125

 

 

 

144

 

Non-GAAP gross profit

 

$

5,837

 

 

$

5,785

 

 

$

19,170

 

 

$

18,390

 

As a percentage of net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross margin

 

 

73.8

%

 

 

66.7

%

 

 

69.7

%

 

 

68.5

%

Non-GAAP gross margin

 

 

74.2

%

 

 

67.1

%

 

 

70.1

%

 

 

69.0

%

GAAP operating loss

 

$

(932

)

 

$

(1,962

)

 

$

(1,467

)

 

$

(10,943

)

Stock-based compensation expense (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Cost of net revenue

 

 

33

 

 

 

38

 

 

 

125

 

 

 

144

 

- Research and development

 

 

69

 

 

 

61

 

 

 

183

 

 

 

306

 

- Sales and marketing

 

 

22

 

 

 

28

 

 

 

73

 

 

 

97

 

- General and administrative

 

 

18

 

 

 

115

 

 

 

243

 

 

 

674

 

Non-GAAP operating loss

 

$

(790

)

 

$

(1,720

)

 

$

(843

)

 

$

(9,722

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(686

)

 

$

(1,828

)

 

$

(814

)

 

$

(10,519

)

Stock-based compensation expense (a)

 

 

142

 

 

 

242

 

 

 

624

 

 

 

1,221

 

Non-GAAP net loss

 

$

(544

)

 

$

(1,586

)

 

$

(190

)

 

$

(9,298

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(686

)

 

$

(1,828

)

 

$

(814

)

 

$

(10,519

)

Interest (income) expense, net

 

 

(168

)

 

 

(70

)

 

 

(413

)

 

 

(182

)

Provision for taxes

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Depreciation, amortization, impairments and accretion

 

 

1,212

 

 

 

1,772

 

 

 

3,905

 

 

 

5,369

 

Restructuring charges (b)

 

 

 

 

 

 

 

 

 

 

 

1,351

 

Stock-based compensation expense (a)

 

 

142

 

 

 

242

 

 

 

624

 

 

 

1,221

 

Adjusted EBITDA

 

$

500

 

 

$

116

 

 

$

3,303

 

 

$

(2,759

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing GAAP basic and diluted earnings per share

 

 

49,746,082

 

 

 

49,554,701

 

 

 

49,667,518

 

 

 

49,543,014

 

GAAP earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(0.01

)

 

$

(0.04

)

 

$

(0.02

)

 

$

(0.21

)

Shares used in computing Non-GAAP basic and diluted earnings per share

 

 

49,746,082

 

 

 

49,554,701

 

 

 

49,667,518

 

 

 

49,543,014

 

Non-GAAP earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(0.01

)

 

$

(0.03

)

 

$

(0.00

)

 

$

(0.19

)

 

 

(a)

Stock-based compensation reflects expense recorded relating to stock-based awards. The Company excludes this item when it evaluates the continuing operational performance of the Company, as management believes this provides it a meaningful understanding of its core operating performance.

 

 

(b)

Restructuring charges incurred in connection with a reduction in headcount primarily comprised of employee severance and benefit costs.



 

Intermolecular, Inc.

Fourth Quarter 2018 Outlook

Reconciliation of GAAP Net Loss to Non-GAAP Net Loss

(In thousands, except per share amounts, Unaudited)

 

GAAP net loss range

 

$(2,800) -   $(3,200)

Stock-based compensation

 

$400 -   $400

Non-GAAP net loss range

 

$(2,400) -   $(2,800)

 

 

 

GAAP and Non-GAAP diluted shares

 

49,800

GAAP net loss per share range

 

$(0.06) -   $(0.06)

Non-GAAP net loss per share range

 

$(0.05) -   $(0.06)