WTT - WIRELESS TELECOM GROUP ANNOUNCES FOURTH QUARTER AND YEAR-END 2021 FINANCIAL RESULTS
Highlights for the year ended December 31, 2021:
| ? |
| Net revenues of $49.2 million, an increase of 18.0% compared to the same period last year |
| ? |
| Gross Profit of $25.1 million, or 50.9% of net revenue, an increase of $4.1 million or 19.6% compared to the same period last year |
| ? |
| Net income of $1.5 million, compared to a net loss of $8.1 million for the same period last year |
| ? |
| Non-GAAP Adjusted EBITDA of $3.7 million, compared to Non-GAAP Adjusted EBITDA of $1.8 million for the same period last year |
| ? |
| Cash provided by operations of $4.6 million, compared to $3.0 million for the same period last year |
| ? |
| Excluding Microlab , backlog at December 31, 2021, was $9.2 million, a $2.1 million, or 30.4% year-over-year increase |
Highlights for the quarter ended December 31, 2021:
| ? |
| Signed an agreement for the sale of Microlab to RF Industries on December 16, 2021 for $24.25 million which subsequently closed on March 1, 2022 |
| ? |
| Net revenues of $13.1 million, an increase of 26.4% compared to the same period last year |
| ? |
| Gross Profit of $6.5 million, or 49.5% of net revenue |
| ? |
| Net income of $384,000, which includes a $614,000 gain related to the adjustment of the Holzworth earn-out |
| ? |
| Non-GAAP Adjusted EBITDA of $1.0 million, compared to $603,000 for the same period last year |
Parsippany, New Jersey, March 17, 2022 (GLOBE NEWSWIRE) -- Wireless Telecom Group, Inc. (NYSE American: WTT) (the “Company”) announced today results for the three months and twelve months ended December 31, 2021.
Tim Whelan, CEO of Wireless Telecom Group, Inc. stated, “2021 was a transformative year for Wireless Telecom Group, reflecting strong execution by our global team members, the success of our CommAgility and Holzworth acquisitions, and improving global demand for our products and services. Capitalizing on the positive momentum underway across our business and end markets, on December 17, 2021, we announced the sale of our RF Components business, which closed on March 1, 2022. As a result, we have successfully transitioned our business model to focus on high-growth specialized 5G software and test and measurement solutions primarily related to the semiconductor, satellite, quantum computing, aerospace and defense sectors.”
Mr. Whelan continued, “We enter 2022 from a position of strength as we benefit from a streamlined business model, favorable market dynamics, and the strongest balance sheet in our history. Our record cash position provides us with significant flexibility to accelerate our technology roadmap and provide capital for growth.”
Mr. Whelan concluded, “The combined backlog of our Test and Measurement and Radio, Baseband, Software segments increased 30%, to $9.2 million at December 31, 2021 which gives us optimism to believe we are well positioned for continued sales growth in 2022. We also expect our gross margin in 2022 to benefit from a higher mix of software and test and measurement revenue. We are closely monitoring our global markets and continue to navigate supply chain challenges along with uncertainties arising from the conflict in Ukraine. Recently imposed sanctions have caused us to suspend delivery of only one backlog project in the amount of $350,000 and we continue to monitor our outlook. We look forward to continuing the refresh of our strategic plans.”
Full Year 2021 Operating Results:
| ? |
| Net revenues increased 18.0% from the prior year driven primarily by increases in our T&M and RBS revenues, representing the recovery in our markets from the COVID-19 pandemic, new product introductions, and increased demand for our software, services, and digital signal processing cards. |
| ? |
| Gross profit margin increased from 50.2% to 50.9% primarily due to our T&M product group. |
| ? |
| Excluding Microlab, backlog increased $2.1 million, to $9.2 million, a 30% year-over-year increase. |
| ? |
| Operating expenses were $25.2 million in 2021 compared to $29.1 million in 2020 reflecting decreases in goodwill impairment and contingent consideration charges in 2021. |
| ? |
| GAAP net income was $1.5 million compared to a net loss of $8.1 million in the prior year due to higher gross profit and lower impairment and contingent consideration charges as compared to the prior year. In addition, 2021 benefited from the gain recognized on extinguishment of the PPP loan which was partially offset by higher interest expense and a lower tax benefit. |
| ? |
| Adjusted EBITDA was $3.7 million compared to $1.8 million in the prior year. Non-GAAP adjusted EBITDA is a metric the Company uses to measure our core operations. A reconciliation of non-GAAP adjusted EBITDA to GAAP net income is provided later in this press release. |
Cash Flow and Balance Sheet
| ? |
| Cash provided from operations of $4.6 million |
| ? |
| Subsequent Events: |
| ? |
| On March 1, 2022, the Company received $23.9 million in cash at close of the sale of Microlab to RF Industries Ltd. |
| ? |
| Repaid and terminated both the Muzinich term loan and the Bank of America credit facility, and added approximately $18.0 million net proceeds in cash to the balance sheet. |
Conference Call
As previously announced, Wireless Telecom Group Inc. will host a conference call on March 17, 2022 at 8:30 a.m. ET in which management will discuss fourth quarter and year end 2021 results and related matters. To participate in the conference call, dial 800-346-7359 or 973-528-0008. The conference identification number is 501420. The call will also be webcast over the internet at the following URL:
https://www.webcaster4.com/Webcast/Page/1690/44859
A replay will be made available on the Wireless Telecom website following the conference call.
Investor Contact
Andrew M. Berger
Managing Director
SM Berger & Company
Tel: (216) 464-6400
andrew@smberger.com
Contact
Michael Kandell
25 Eastmans Road
Parsippany, NJ 07054
Tel: (973) 386-9696
Fax: (973) 386-9191
www.wirelesstelecomgroup.com
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with generally accepted accounting principles (“GAAP”). Management believes, however, that certain non-GAAP financial measures used in managing the Company’s business may provide users of this financial information with additional meaningful comparisons between current results and prior reported results. Certain of the information set forth herein and certain of the information presented by the Company from time to time may constitute non-GAAP financial measures within the meaning of Regulation G adopted by the Securities and Exchange Commission. We have presented herein a reconciliation of these measures to the most directly comparable GAAP financial measure. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies. The foregoing measures do not serve as a substitute and should not be construed as a substitute for GAAP performance, but provide supplemental information concerning our performance that our investors and we find useful.
The Company defines EBITDA as its net earnings before interest, taxes, depreciation and amortization. “Adjusted EBITDA” is EBITDA excluding our stock compensation expense, restructuring charges, acquisition expenses, integration expenses, unrealized and realized foreign exchange gains and losses, purchase accounting adjustments, non-recurring legal fees associated with the Harris arbitration, goodwill and indefinite lived intangible asset impairment charges, (gain)/loss on change in fair value of contingent consideration, gain on extinguishment of our PPP loan and other non-recurring costs. A reconciliation of net income/(loss) to non-GAAP Adjusted EBITDA is included as an attachment to this press release.
The Company defines Adjusted EBITDA margin as Adjusted EBITDA divided by revenue. The Company does not provide a forward-looking reconciliation of expected Adjusted EBITDA margin because the amount and significance of special items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts. These special items could be meaningful.
GAAP operating expenses (“GAAP opex”) includes research and development expenses, sales and marketing expenses, general and administrative expenses, non-cash goodwill and indefinite lived intangible asset impairment charges and (gain)/loss on change in fair value of contingent consideration. The Company defines non-GAAP Operating Expenses (“Non-GAAP Opex”) as GAAP opex excluding stock compensation expense, restructuring charges, acquisition expenses, integration expenses, depreciation and amortization expense, non-recurring legal fees associated with the Harris arbitration, non-cash goodwill and indefinite lived intangible asset impairment charges, (gain)/loss on change in fair value of contingent consideration and other non-recurring costs and expenses.
The Company views Adjusted EBITDA, Adjusted EBITDA margin and Non-GAAP Opex as important indicators of performance, consistent with the manner in which management measures and forecasts the Company’s performance. We believe Adjusted EBITDA is an important performance metric because it facilitates the analysis of our results, exclusive of certain non-cash and non-recurring items, including items which do not directly correlate to our business operations.
The Company believes that Adjusted EBITDA and Non GAAP Opex metrics provide qualitative insight into our current performance; we use these measures to evaluate our results, the performance of our management team and our management’s entitlement to incentive compensation; and we believe that making this information available to investors enables them to view our performance the way that we view our performance and thereby gain a meaningful understanding of our core operating results, in general, and from period to period.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements include, among others, our belief that we are well positioned for continued sales growth in 2022 and our expectation that our gross margin in 2022 will benefit from a higher mix of software revenue and higher T&M revenue mix. Investors are cautioned that such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results, including, among others, the ongoing impact that the conflict in Ukraine and related sanctions have had and may continue to have on our business, supply chain, transportation costs, and our backlog; the impact that the evolving COVID-19 pandemic has had and may continue to have on our supply chain, human capital and the general economy in the future; the potential impact of inflation on our business and the economy in general, our dependency on capital spending on data and communication networks by our customers and end users; our dependency on the deployment of 4G LTE and 5G NR private networks and related services to grow our business; the impact of the loss of any significant customers; the ability of our management to successfully implement our evolving business plan; the impact of competitive products and pricing; our abilities to protect our intellectual property rights and our ability to manage risks related to our information technology and cyber security as well as other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise, as except as required by law.
About Wireless Telecom Group, Inc.
Wireless Telecom Group, Inc ., comprised of Boonton , CommAgility , Holzworth , and Noisecom , is a global designer and manufacturer of advanced RF and microwave components, modules, systems, and instruments. Serving the wireless, telecommunication, satellite, military, aerospace, and semiconductor industries, Wireless Telecom Group products enable innovation across existing and emerging wireless technologies. With a product portfolio including peak power meters, signal generators, phase noise analyzers, signal processing modules, LTE PHY/stack software, noise sources, and programmable noise generators, Wireless Telecom Group supports the development, testing, and deployment of wireless technologies around the globe. Wireless Telecom Group, Inc.’s website address is wirelesstelecomgroup.com .
Wireless Telecom Group Inc.
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME/(LOSS)
(In thousands, except per share amounts)
| For the Three Months Ended |
| For the Twelve Months Ended |
| December 31 |
| December 31 |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Net revenues |
| $ |
| 13,077 |
| $ |
| 10,343 |
| $ |
| 49,245 |
| $ |
| 41,748 |
| Cost of revenues |
| 6,609 |
| 5,125 |
| 24,158 |
| 20,781 |
| Gross profit |
| 6,468 |
| 5,218 |
| 25,087 |
| 20,967 |
| Operating expenses |
| Research and development |
| 1,270 |
| 1,309 |
| 5,550 |
| 6,389 |
| Sales and marketing |
| 1,904 |
| 1,844 |
| 7,169 |
| 6,955 |
| General and administrative |
| 3,401 |
| 2,586 |
| 11,869 |
| 9,907 |
| Goodwill/intangibles impairment |
| 258 |
| 4,742 |
| 258 |
| 4,742 |
| Loss on change in fair value of contingent consideration |
| (614 |
| ) |
| 1,073 |
| 386 |
| 1,073 |
| Total operating expenses |
| 6,219 |
| 11,554 |
| 25,232 |
| 29,066 |
| Operating income/(loss) |
| 249 |
| (6,336 |
| ) |
| (145 |
| ) |
| (8,099 |
| ) |
| PPP Loan Forgiveness |
| - |
| - |
| 2,045 |
| - |
| Other income/(expense) |
| 43 |
| (66 |
| ) |
| 70 |
| 187 |
| Interest expense |
| (196 |
| ) |
| (258 |
| ) |
| (1,143 |
| ) |
| (985 |
| ) |
| Gain/(Loss) before taxes |
| 96 |
| (6,660 |
| ) |
| 827 |
| (8,897 |
| ) |
| Tax provision/(benefit) |
| (288 |
| ) |
| (1,162 |
| ) |
| (673 |
| ) |
| (809 |
| ) |
| Net income/(loss) |
| $ |
| 384 |
| $ |
| (5,498 |
| ) |
| $ |
| 1,500 |
| $ |
| (8,088 |
| ) |
| Other comprehensive income/(loss): |
| Foreign currency translation adjustments |
| (6 |
| ) |
| 595 |
| (70 |
| ) |
| 190 |
| Comprehensive Income/(Loss) |
| $ |
| 378 |
| $ |
| (4,903 |
| ) |
| $ |
| 1,430 |
| $ |
| (7,898 |
| ) |
| Income/(Loss) per share: |
| Basic |
| $ |
| 0.02 |
| $ |
| (0.25 |
| ) |
| $ |
| 0.07 |
| $ |
| (0.37 |
| ) |
| Diluted |
| $ |
| 0.02 |
| $ |
| (0.25 |
| ) |
| $ |
| 0.06 |
| $ |
| (0.37 |
| ) |
| Weighted average shares outstanding: |
| Basic |
| 22,494 |
| 21,734 |
| 22,050 |
| 21,657 |
| Diluted |
| 24,858 |
| 21,734 |
| 24,297 |
| 21,657 |
CONSOLIDATED BALANCE SHEET
(In thousands, except number of shares and par value)
| December 31 2021 |
| December 31 2020 |
| CURRENT ASSETS |
| Cash & cash equivalents |
| $ |
| 4,472 |
| $ |
| 4,910 |
| Accounts receivable - net of reserves of $221 and $143, respectively |
| 5,290 |
| 5,520 |
| Inventories - net of reserves of $909 and $1,129, respectively |
| 9,074 |
| 8,796 |
| Prepaid expenses and other current assets |
| 1,689 |
| 2,172 |
| TOTAL CURRENT ASSETS |
| 20,525 |
| 21,398 |
| PROPERTY PLANT AND EQUIPMENT - NET |
| 1,532 |
| 1,824 |
| OTHER ASSETS |
| Goodwill |
| 11,459 |
| 11,512 |
| Acquired intangible assets, net |
| 3,661 |
| 5,242 |
| Deferred income taxes, net |
| 5,580 |
| 5,701 |
| Right of use assets |
| 1,146 |
| 1,680 |
| Other Assets |
| 448 |
| 561 |
| TOTAL OTHER ASSETS |
| 22,294 |
| 24,696 |
| TOTAL ASSETS |
| $ |
| 44,351 |
| $ |
| 47,918 |
| CURRENT LIABILITIES |
| Short term debt |
| $ |
| 126 |
| $ |
| 512 |
| Accounts payable |
| 2,264 |
| 1,546 |
| Short term leases |
| 585 |
| 534 |
| Accrued expenses and other current liabilities |
| 7,858 |
| 7,997 |
| Deferred revenue |
| 408 |
| 924 |
| TOTAL CURRENT LIABILITIES |
| 11,241 |
| 11,513 |
| LONG TERM LIABILITIES |
| Long term debt |
| 3,595 |
| 8,895 |
| Long term leases |
| 615 |
| 1,200 |
| Other long term liabilities |
| 52 |
| 82 |
| Deferred tax liability |
| 228 |
| 377 |
| TOTAL LONG TERM LIABILITIES |
| 4,490 |
| 10,554 |
| COMMITMENTS AND CONTINGENCIES |
| SHAREHOLDERS’ EQUITY |
| Preferred Stock, $.01 par value, 2,000,000 shares authorized, none issued |
| - |
| - |
| Common Stock, $.01 par value, 75,000,000 shares authorized 35,915,636 and 34,888,904 shares issued, 22,666,074 and 21,669,361 shares outstanding |
| 359 |
| 349 |
| Additional paid in capital |
| 51,555 |
| 50,163 |
| Retained earnings/(deficit) |
| 554 |
| (946 |
| ) |
| Treasury stock at cost, 13,249,562 and 13,219,543 shares |
| (24,619 |
| ) |
| (24,556 |
| ) |
| Accumulated other comprehensive income |
| 771 |
| 841 |
| TOTAL SHAREHOLDERS’ EQUITY |
| 28,620 |
| 25,851 |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ |
| 44,351 |
| $ |
| 47,918 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| For the Twelve Months |
| Ended December 31 |
| 2021 |
| 2020 |
| CASH FLOWS PROVIDED/(USED) BY OPERATING ACTIVITIES |
| Net income/(loss) |
| $ |
| 1,500 |
| $ |
| (8,088 |
| ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |
| Depreciation and amortization |
| 2,152 |
| 2,238 |
| Extinguishment of PPP Loan |
| (2,045 |
| ) |
| - |
| Goodwill and intangibles impairment |
| 258 |
| 4,742 |
| Amortization of debt issuance fees |
| 335 |
| 297 |
| Share-based compensation expense |
| 316 |
| 474 |
| Deferred rent |
| (30 |
| ) |
| (29 |
| ) |
| Deferred income taxes |
| (26 |
| ) |
| 178 |
| Provision for doubtful accounts |
| 78 |
| (31 |
| ) |
| Inventory reserves |
| 141 |
| 157 |
| Changes in assets and liabilities, net of acquisition: |
| - |
| - |
| Accounts receivable |
| 150 |
| 1,209 |
| Inventories |
| (427 |
| ) |
| (186 |
| ) |
| Prepaid expenses and other assets |
| 976 |
| 923 |
| Accounts payable |
| 770 |
| (842 |
| ) |
| Deferred Revenue |
| (515 |
| ) |
| 819 |
| Accrued expenses and other liabilities |
| 925 |
| 1,119 |
| Net cash provided/(used) by operating activities |
| 4,558 |
| 2,980 |
| CASH FLOWS PROVIDED/(USED) BY INVESTING ACTIVITIES |
| Capital expenditures |
| (524 |
| ) |
| (364 |
| ) |
| Acquisition of business, net of cash acquired |
| (200 |
| ) |
| (8,246 |
| ) |
| Net cash provided/(used) by investing activities |
| (724 |
| ) |
| (8,610 |
| ) |
| CASH FLOWS PROVIDED/(USED) BY FINANCING ACTIVITIES |
| Revolver borrowings/(repayments), net |
| - |
| (2,354 |
| ) |
| Term loan borrowings |
| 345 |
| 8,400 |
| Term loan repayments |
| (4,212 |
| ) |
| (426 |
| ) |
| Debt issuance fees |
| - |
| (1,327 |
| ) |
| Paycheck Protection Program loan |
| - |
| 2,045 |
| Payment of contingent consideration |
| (1,052 |
| ) |
| - |
| Proceeds from exercise of stock options |
| 208 |
| 16 |
| Tax withholding payments for vested equity awards |
| (63 |
| ) |
| (46 |
| ) |
| ATM Shares Sold |
| 563 |
| - |
| Net cash provided/(used) by financing activities |
| (4,211 |
| ) |
| 6,308 |
| Effect of exchange rate changes on cash and cash equivalents |
| (61 |
| ) |
| (13 |
| ) |
| NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS |
| (438 |
| ) |
| 665 |
| Cash and cash equivalents, at beginning of period |
| 4,910 |
| 4,245 |
| CASH AND CASH EQUIVALENTS, AT END OF PERIOD |
| $ |
| 4,472 |
| $ |
| 4,910 |
| SUPPLEMENTAL INFORMATION: |
| Cash paid during the period for interest |
| $ |
| 810 |
| $ |
| 703 |
| Cash paid during the period for income taxes |
| $ |
| 187 |
| $ |
| 65 |
NET REVENUE AND GROSS PROFIT BY PRODUCT GROUP
(In thousands)
| Three months ended December 31 |
| Revenue |
| % of Revenue |
| Change |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Amount |
| Pct. |
| RF components |
| $ |
| 4,937 |
| $ |
| 3,112 |
| 37.8 |
| % |
| 30.1 |
| % |
| $ |
| 1,825 |
| 58.6 |
| % |
| Test and measurement |
| 5,897 |
| 6,537 |
| 45.1 |
| % |
| 63.2 |
| % |
| (640 |
| ) |
| -9.8 |
| % |
| Radio, baseband, software |
| 2,243 |
| 694 |
| 17.2 |
| % |
| 6.7 |
| % |
| 1,549 |
| 223.2 |
| % |
| Total net revenues |
| $ |
| 13,077 |
| $ |
| 10,343 |
| 100.0 |
| % |
| 100.0 |
| % |
| $ |
| 2,734 |
| 26.4 |
| % |
| Three months ended December 31 |
| Gross Profit |
| Gross Profit % |
| Change |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Amount |
| Pct. |
| RF components |
| $ |
| 2,152 |
| $ |
| 1,120 |
| 43.6 |
| % |
| 36.0 |
| % |
| $ |
| 1,032 |
| 92.1 |
| % |
| Test and measurement |
| 3,275 |
| 3,896 |
| 55.5 |
| % |
| 59.6 |
| % |
| (621 |
| ) |
| -15.9 |
| % |
| Radio, baseband, software |
| 1,041 |
| 202 |
| 46.4 |
| % |
| 29.1 |
| % |
| 839 |
| 415.3 |
| % |
| Total gross profit |
| $ |
| 6,468 |
| $ |
| 5,218 |
| 49.5 |
| % |
| 50.4 |
| % |
| $ |
| 1,250 |
| 24.0 |
| % |
| Twelve months ended December 31 |
| Revenue |
| % of Revenue |
| Change |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Amount |
| Pct. |
| RF components |
| $ |
| 17,756 |
| $ |
| 17,667 |
| 36.1 |
| % |
| 42.3 |
| % |
| $ |
| 89 |
| 0.5 |
| % |
| Test and measurement |
| 22,676 |
| 20,551 |
| 46.0 |
| % |
| 49.2 |
| % |
| 2,125 |
| 10.3 |
| % |
| Radio, baseband, software |
| 8,813 |
| 3,530 |
| 17.9 |
| % |
| 8.5 |
| % |
| 5,283 |
| 149.7 |
| % |
| Total net revenues |
| $ |
| 49,245 |
| $ |
| 41,748 |
| 100.0 |
| % |
| 100.0 |
| % |
| $ |
| 7,497 |
| 18.0 |
| % |
| Twelve months ended December 31 |
| Gross Profit |
| Gross Profit % |
| Change |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Amount |
| Pct. |
| RF components |
| $ |
| 7,497 |
| $ |
| 7,695 |
| 42.2 |
| % |
| 43.6 |
| % |
| $ |
| (198 |
| ) |
| -2.6 |
| % |
| Test and measurement |
| 12,965 |
| 11,347 |
| 57.2 |
| % |
| 55.2 |
| % |
| 1,618 |
| 14.3 |
| % |
| Radio, baseband, software |
| 4,625 |
| 1,925 |
| 52.5 |
| % |
| 54.5 |
| % |
| 2,700 |
| 140.3 |
| % |
| Total gross profit |
| $ |
| 25,087 |
| $ |
| 20,967 |
| 50.9 |
| % |
| 50.2 |
| % |
| $ |
| 4,120 |
| 19.6 |
| % |
RECONCILIATION OF NET INCOME TO NON-GAAP EBITDA AND NON-GAAP ADJUSTED EBITDA
(In thousands, unaudited)
| Three Months Ended |
| Twelve Months Ended |
| December 31 |
| December 31 |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| GAAP Net Income/(Loss), as reported |
| $ |
| 384 |
| $ |
| (5,498 |
| ) |
| $ |
| 1,500 |
| $ |
| (8,088 |
| ) |
| Tax Provision/(Benefit) |
| (288 |
| ) |
| (1,162 |
| ) |
| (673 |
| ) |
| (809 |
| ) |
| Depreciation and Amortization Expense |
| 548 |
| 607 |
| 2,152 |
| 2,238 |
| Interest Expense |
| 196 |
| 241 |
| 1,143 |
| 968 |
| Non-GAAP EBITDA |
| 840 |
| (5,812 |
| ) |
| 4,122 |
| (5,691 |
| ) |
| Stock Compensation |
| 14 |
| 114 |
| 316 |
| 474 |
| Merger and Acquisition/Integration |
| 539 |
| - |
| 653 |
| 243 |
| Restructuring Costs |
| - |
| 3 |
| 36 |
| 122 |
| Inventory Impairment Recovery |
| - |
| - |
| - |
| (32 |
| ) |
| US GAAP Purchase Accounting |
| - |
| 116 |
| - |
| 664 |
| Change in Fair Value of Contingent Consideration |
| (614 |
| ) |
| 1,073 |
| 386 |
| 1,073 |
| FX (Gain)/Loss |
| 6 |
| 75 |
| (13 |
| ) |
| (64 |
| ) |
| Intangible/Goodwill Impairment |
| 258 |
| 4,742 |
| 258 |
| 4,742 |
| PPP Loan Forgiveness |
| - |
| - |
| (2,045 |
| ) |
| - |
| Deferred S-3 Costs |
| - |
| 255 |
| - |
| 255 |
| Non Recurring Arbitration Legal Costs |
| - |
| 37 |
| 4 |
| 23 |
| Non-GAAP Adjusted EBITDA |
| $ |
| 1,043 |
| $ |
| 603 |
| $ |
| 3,717 |
| $ |
| 1,809 |
RECONCILIATION OF OPEX TO NON-GAAP OPEX
(In thousands, unaudited)
| Three Months Ended |
| Twelve Months Ended |
| December 31 |
| December 31 |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| GAAP Opex |
| $ |
| 6,219 |
| $ |
| 11,554 |
| $ |
| 25,232 |
| $ |
| 29,066 |
| Stock Compensation |
| (14 |
| ) |
| (114 |
| ) |
| (316 |
| ) |
| (474 |
| ) |
| Merger and Acquisition/Integration |
| (539 |
| ) |
| - |
| (653 |
| ) |
| (243 |
| ) |
| Restructuring Costs |
| - |
| (3 |
| ) |
| (36 |
| ) |
| (122 |
| ) |
| US GAAP Purchase Accounting |
| - |
| (116 |
| ) |
| - |
| (216 |
| ) |
| Depreciation & Amortization (ex. COGS) |
| (455 |
| ) |
| (447 |
| ) |
| (1,809 |
| ) |
| (1,803 |
| ) |
| Change in Fair Value of Contingent Consideration |
| 614 |
| (1,073 |
| ) |
| (386 |
| ) |
| (1,073 |
| ) |
| Intangible/Goodwill Impairment |
| (258 |
| ) |
| (4,742 |
| ) |
| (258 |
| ) |
| (4,742 |
| ) |
| Deferred S-3 Costs |
| - |
| (255 |
| ) |
| - |
| (255 |
| ) |
| Non Recurring Arbitration Legal Costs |
| - |
| (37 |
| ) |
| (4 |
| ) |
| (23 |
| ) |
| Non GAAP Opex |
| $ |
| 5,567 |
| $ |
| 4,767 |
| $ |
| 21,770 |
| $ |
| 20,115 |