Sphere 3D: Fiscal 2Q15 Financial Results

Sphere 3D Corp. reported financial results for its second quarter ended June 30, 2015.

“We continue to execute on our vision to become a leader in virtualization and data management,” said Eric Kelly, CEO. “This has been demonstrated by our recent completion of key strategic milestones like our first cloud offering of SnapCLOUD in the Microsoft Azure Marketplace and our recent launch of the Glassware 2.0 G-Series on-premise appliance for Education applications.”

2Q15 compared with 2Q14

• Net revenue increased to $18.4 million during the second quarter of 2015 from $1.6 million during the second quarter of 2014, an increase of $16.8 million. The increase in net revenue is a result of our acquisition that was completed in December 2014, which contributed significant product offerings in the second quarter of 2015. OEM net revenue accounted for 14.7% of net revenues in the second quarter of 2015 and did not account for any revenues in 2014. During the second quarter of 2014, the company recognized $0.3 million of revenue that was earned from Overland in connection with the Overland license agreement.
• Net product revenue increased to $15.6 million during the second quarter of 2015 from $1.5 million during the second quarter of 2014. The increase of approximately $14.1 million resulted from the acquisition that was completed in December 2014.
• Net service revenue increased to $2.8 million during the second quarter of 2015 from $0.1 million during the second quarter of 2014. The increase of approximately $2.7 million was primarily due to service revenue generated by the acquisition that was completed in December 2014.

1H15 compared with 1H14

• Net revenue increased to $38.5 million during the first half of 2015 from $2.5 million during the first half of 2014, an increase of $36.0 million. The increase in net revenue is a result of the acquisition that was completed in December 2014, which contributed significant product offerings in the first half of 2015. OEM net revenue accounted for 17.2% of net revenues in the first half of 2015 and did not account for any revenues in 2014. During the first half of 2014, the company recognized $0.5 million of revenue that was earned from Overland in connection with the Overland license agreement.
• Net product revenue increased to $32.8 million during the first half of 2015 from $2.3 million during the first half of 2014. The increase of approximately $30.5 million resulted from the acquisition that was completed in December 2014.
• Net service revenue increased to $5.7 million during the first half of 2015 from $0.2 million during the first half of 2014. The increase of approximately $5.5 million was primarily due to service revenue generated by the acquisition that was completed in December 2014.

% of revenue by business