EX-99.1 3 smsi-ex991_15.htm EX-99.1

Exhibit 99.1

Item 6. SELECTED CONSOLIDATED FINANCIAL DATA

The following selected consolidated financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and the related notes thereto appearing elsewhere in this Annual Report. The following selected consolidated statement of operations and comprehensive loss data for the years ended December 31, 2016, 2015 and 2014, and the consolidated balance sheet data at December 31, 2016 and 2015, have been derived from audited consolidated financial statements included elsewhere in this Annual Report. The consolidated statement of operations and comprehensive loss data presented below for the years ended December 31, 2013 and 2012, and the consolidated balance sheet data at December 31, 2014, 2013 and 2012 are derived from audited consolidated financial statements that are not included in this Annual Report.

|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2013 |  |  | 2012 |
Consolidated Statement of Operations and Comprehensive Loss Data (in thousands, except per share data): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues |  | $ | 28,235 |  |  | $ | 39,507 |  |  | $ | 36,979 |  |  | $ | 42,675 |  |  | $ | 43,329 |
Cost of revenues |  |  | 7,564 |  |  |  | 8,152 |  |  |  | 9,317 |  |  |  | 9,707 |  |  |  | 8,448 |
Gross profit |  |  | 20,671 |  |  |  | 31,355 |  |  |  | 27,662 |  |  |  | 32,968 |  |  |  | 34,881 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | 9,615 |  |  |  | 8,902 |  |  |  | 9,559 |  |  |  | 15,675 |  |  |  | 16,666 |
Research and development |  |  | 15,906 |  |  |  | 13,863 |  |  |  | 14,192 |  |  |  | 21,305 |  |  |  | 24,767 |
General and administrative |  |  | 10,341 |  |  |  | 11,128 |  |  |  | 13,218 |  |  |  | 18,216 |  |  |  | 20,211 |
Restructuring expenses |  |  | 303 |  |  |  | — |  |  |  | 2,435 |  |  |  | 5,602 |  |  |  | 238 |
Long-lived asset impairment |  |  | 411 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total operating expenses |  |  | 36,576 |  |  |  | 33,893 |  |  |  | 39,404 |  |  |  | 60,798 |  |  |  | 61,882 |
Operating loss |  |  | (15,905 | ) |  |  | (2,538 | ) |  |  | (11,742 | ) |  |  | (27,830 | ) |  |  | (27,001 | )
Non-operating income (expense): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Change in carrying value of contingent liability |  |  | 668 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,210 |
Interest income (expense), net |  |  | (313 | ) |  |  | 1 |  |  |  | (5 | ) |  |  | 28 |  |  |  | 91 |
Other income (expense), net |  |  | (22 | ) |  |  | 3 |  |  |  | (3 | ) |  |  | 2 |  |  |  | 3 |
Loss before provision for income taxes |  |  | (15,572 | ) |  |  | (2,534 | ) |  |  | (11,750 | ) |  |  | (27,800 | ) |  |  | (25,697 | )
Provision for income tax expense (benefit) |  |  | (229 | ) |  |  | 68 |  |  |  | 49 |  |  |  | 153 |  |  |  | (234 | )
Net loss |  |  | (15,343 | ) |  |  | (2,602 | ) |  |  | (11,799 | ) |  |  | (27,953 | ) |  |  | (25,463 | )
Other comprehensive income (loss), before tax: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains (losses) on available- for-sale securities |  |  | 2 |  |  |  | (1 | ) |  |  | — |  |  |  | 7 |  |  |  | 33 |
Income tax expense related to items of other comprehensive income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6 |
Other comprehensive income (expense), net of tax |  |  | 2 |  |  |  | (1 | ) |  |  | — |  |  |  | 7 |  |  |  | 27 |
Comprehensive loss |  | $ | (15,341 | ) |  | $ | (2,603 | ) |  | $ | (11,799 | ) |  | $ | (27,946 | ) |  | $ | (25,436 | )
Net loss per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (1.28 | ) |  | $ | (0.23 | ) |  | $ | (1.16 | ) |  | $ | (3.02 | ) |  | $ | (2.84 | )
Diluted |  | $ | (1.28 | ) |  | $ | (0.23 | ) |  | $ | (1.16 | ) |  | $ | (3.02 | ) |  | $ | (2.84 | )
Weighted average shares: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 11,951 |  |  |  | 11,486 |  |  |  | 10,162 |  |  |  | 9,245 |  |  |  | 8,962 |
Diluted |  |  | 11,951 |  |  |  | 11,486 |  |  |  | 10,162 |  |  |  | 9,245 |  |  |  | 8,962 |

Exhibit 99.1

|  | As of December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2013 |  |  | 2012 |
Consolidated Balance Sheet Data (in thousands): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 14,308 |  |  | $ | 24,473 |  |  | $ | 27,390 |  |  | $ | 31,538 |  |  | $ | 54,395 |
Total liabilities |  |  | 11,249 |  |  |  | 10,447 |  |  |  | 12,488 |  |  |  | 13,367 |  |  |  | 11,733 |
Accumulated comprehensive deficit |  |  | (226,228 | ) |  |  | (210,887 | ) |  |  | (208,284 | ) |  |  | (196,485 | ) |  |  | (168,539 | )
Total stockholders' equity |  | $ | 3,059 |  |  | $ | 14,026 |  |  | $ | 14,902 |  |  | $ | 18,171 |  |  | $ | 42,662 |