Sphere 3D: Fiscal 1Q18 Financial Results

(in $ million)	1Q17	1Q18	Growth
Revenue	21.7	19.4	*-11%*
Net income (loss)	(7.8)	(6.8)

Sphere 3D Corp. reported financial results for its first quarter ended March 31, 2018.

First Quarter 2018 Financial Results:
Net revenue for the first quarter of 2018 was $19.4 million, compared to $21.7 million for the first quarter of 2017.

Product revenue for the first quarter of 2018 was $17.4 million, compared to $19.4 million for the first quarter of 2017.

Disk systems revenue was $13.1 million, compared to $15.0 million for the first quarter of 2017. Disk systems is defined as RDX, SnapServer family, VDI, and Glassware derived products.

Tape archive product revenue was $4.3 million compared to $4.4 million for the first quarter of 2017.

Service revenue was $2.0 million in the first quarter of 2018 compared to $2.3 million for the first quarter of 2017.

Gross margin for the first quarter of 2018 was 30.9%, compared to 31.4% for the first quarter of 2017. Non-GAAP gross margin for the first quarter of 2018 was 33.8%, compared to 34.0% for the first quarter of 2017.

Operating expenses for the first quarter of 2018 were $11.1 million, compared to $11.6 million for the first quarter of 2017.

Share-based compensation expense for the first quarter of 2018 was $0.8 million, compared to $2.2 million for the first quarter of 2017. Depreciation and amortization was $1.5 million in the first quarter of 2018 and the first quarter of 2017.

Adjusted EBITDA for the first quarter of 2018 was a net loss of $3.3 million, or a net loss of $0.43 per share, based on 7.7 million weighted average shares outstanding, compared to adjusted EBITDA net loss of $966,000, or a net loss of $0.31 per share, based on 3.1 million weighted average shares outstanding for the first quarter of 2017.

Net loss for the first quarter of 2018 was $6.8 million, or a net loss of $0.89 per share, compared to a net loss of $7.8 million, or a net loss of $2.50 per share, in the first quarter of 2017.