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Tintri Reports Fourth Quarter and Fiscal Year 2018 Financial Results

Tintri, Inc., a leading enabler of enterprise cloud, today reported results for its fourth quarter and fiscal year 2018 which ended on January 31, 2018.

"We are pleased with financial results that exceeded our revenue and EPS outlook, indicating the company has improved visibility into customer purchasing dynamics. We have taken a number of important actions to strengthen our balance sheet, improve our operating model, and reduce our cash burn," said Ken Klein, Chairman and CEO at Tintri. "We also expanded our differentiated product portfolio and increased our footprint with existing customers."

Business and Financial Highlights

  • Q4 revenue of $28.9 million, better than the company's guidance.
  • Q4 net loss per share: ($1.19) per share GAAP and ($0.72) per share non-GAAP, better than the company's guidance.
  • Ken Klein, Chairman and CEO, will transition from his CEO role after a successor is found.
  • Implemented work force reduction and lowered facilities footprint, as part of a plan to reduce FY19 operating expense by more than $70 million.
  • Strengthened balance sheet by drawing on a $25 million note facility with certain existing stockholders.
  • Tom Cashman promoted to Executive Vice President, Worldwide Sales and Alliances.

CEO and Sales Management Change
The company announced that its Chairman and CEO, Ken Klein, will transition from his CEO role after a successor is found. Mr. Klein expects to continue to serve as CEO and as a Board member until the new CEO is appointed and an orderly transition has occurred. The Board of Directors has initiated a search for a successor to lead the company in its next stage of evolution and has established a search process and engaged an executive search firm.

"On behalf of the Board, I would like to thank Ken for his 4 years of leadership and many contributions to Tintri," said Harvey Jones, Tintri Board member. "Ken transformed the company and expanded Tintri's technology differentiation in the market. The Board of Directors is grateful to Ken for his continued involvement as we conduct a comprehensive search for the company's next CEO."

"We made progress on our financial initiatives this quarter, by reporting a strong Q4, reducing our operating expenses, and strengthening our balance sheet. I am proud of the transformation the company has made and I believe the company is on the right trajectory," said Ken Klein, CEO and Chairman. "I am ready to transition leadership to the right successor to propel the company forward."

Tintri also announced that Tom Cashman has been promoted to Executive Vice President, Worldwide Sales and Alliances. Mr. Cashman joined Tintri in 2015, and had served most recently as Senior Vice President, International Sales and Global Alliances. Prior to joining the company, Mr. Cashman served in senior sales leadership capacities with Informix, Tivoli Systems, IBM, and CA Technologies.

Promissory Notes Financing
On Mar 2, 2018, the company announced the issuance of Promissory Notes to certain existing stockholders for aggregate gross proceeds of $25 million.  The Promissory Notes will have an interest rate of 8.0% per annum and are scheduled to mature 18 months from the date of issuance.  

Work Force and Facilities Restructuring
The company has implemented a restructuring and reduction in force plan of approximately 20% of the company's global workforce. On February 21, 2018, the company also announced an early termination of a facility lease. The restructuring, which consisted of a reduction in force and a termination of a facility lease, is part of an overall plan to optimize the company's operating model.

The company expects to substantially complete the restructuring in its first quarter of fiscal year 2019, which ends on April 30, 2018. The company estimates it will incur approximately $4.8 million to $5.8 million of cash expenditures in connection with the restructuring, substantially all of which relate to severance costs and contract termination costs. Total restructuring expenses are estimated at $6.2 million to $7.2 million, substantially all of which related to severance costs, write-off of net leasehold costs, and contract termination costs. The company expects to recognize most of these charges in the first quarter of fiscal year 2019.

First Quarter Fiscal Year 2019 Financial Outlook
As we look ahead, we are providing the following outlook for the quarter ending April 30, 2018. These guidance numbers are based on the existing revenue standard (ASC 605). We expect:

  • Revenue in the range of $20.0 to $21.0 million;
  • Non-GAAP loss per share in the range of ($0.64) to ($0.68), using 32.6 million weighted-average shares outstanding.

If appropriate, we may update our outlook after we have completed assessing the impact of the new revenue standard (ASC 606), adopted and effective beginning February 1, 2018.

All forward-looking non-GAAP financial measures contained in this section titled "First Quarter Fiscal 2019 Financial Outlook" exclude stock-based compensation expense, payroll tax expense related to stock-based activities, legal fees related to securities lawsuits, and, as applicable, other special items. We have not reconciled guidance for non-GAAP loss per share to its most directly comparable GAAP measure because the items that have been excluded are uncertain and cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

Published Tuesday, March 06, 2018 7:46 AM by David Marshall
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