Geeknet, Inc

CIK:0001096199|SEC Filings

Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Net revenue	$ 19,083us-gaap_SalesRevenueGoodsNet	$ 22,691us-gaap_SalesRevenueGoodsNet
Cost of revenue	15,471us-gaap_CostOfGoodsSold	18,866us-gaap_CostOfGoodsSold
Gross margin	3,612us-gaap_GrossProfit	3,825us-gaap_GrossProfit
Operating expenses:
Sales and marketing	2,539us-gaap_SellingAndMarketingExpense	2,505us-gaap_SellingAndMarketingExpense
Technology and design	2,599us-gaap_ResearchAndDevelopmentExpense	1,869us-gaap_ResearchAndDevelopmentExpense
General and administrative	2,358us-gaap_GeneralAndAdministrativeExpense	1,819us-gaap_GeneralAndAdministrativeExpense
Acquisition-related costs	32	0
Total operating expenses	7,528us-gaap_OperatingExpenses	6,193us-gaap_OperatingExpenses
Loss from operations	(3,916)us-gaap_OperatingIncomeLoss	(2,368)us-gaap_OperatingIncomeLoss
Interest and other income (expense), net	(12)us-gaap_NonoperatingIncomeExpense	123us-gaap_NonoperatingIncomeExpense
Loss before income taxes	(3,928)	(2,245)
Income tax provision	0us-gaap_IncomeTaxExpenseBenefit	0us-gaap_IncomeTaxExpenseBenefit
Net loss	$ (3,928)us-gaap_NetIncomeLoss	$ (2,245)us-gaap_NetIncomeLoss
Net loss per share:
Basic and diluted	$ (0.58)us-gaap_EarningsPerShareBasicAndDiluted	$ (0.34)us-gaap_EarningsPerShareBasicAndDiluted
Shares used in per share calculations:
Basic and diluted	6,723	6,658

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	$ (3,928)us-gaap_NetIncomeLoss	$ (2,245)us-gaap_NetIncomeLoss
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expense	408us-gaap_DepreciationAndAmortization	313us-gaap_DepreciationAndAmortization
Stock-based compensation expense	202us-gaap_ShareBasedCompensation	180us-gaap_ShareBasedCompensation
Change in fair value of contingent consideration	31	0
Provision for bad debts	0us-gaap_ProvisionForDoubtfulAccounts	(5)us-gaap_ProvisionForDoubtfulAccounts
Provision for inventory write-downs	62us-gaap_InventoryWriteDown	18us-gaap_InventoryWriteDown
Changes in assets and liabilities:
Accounts receivable	2,509	5,048
Inventories	(1,413)us-gaap_IncreaseDecreaseInInventories	(1,712)us-gaap_IncreaseDecreaseInInventories
Prepaid expenses and other assets	(2,289)	1,725
Accounts payable	(8,790)	(5,511)
Deferred revenue	(132)	(470)
Accrued and other liabilities	(3,166)	(5,968)
Other long-term liabilities	(843)	0
Net cash used in operating activities	(17,349)	(8,627)
Cash flows from investing activities:
Purchase of property and equipment	(70)	0
Net cash used in investing activities	(70)	0
Cash flows from financing activities:
Payment of contingent consideration	(250)	0
Proceeds from issuance of common stock	13	19
Repurchase of stock	(12)	(200)
Net cash used in financing activities	(249)	(181)
Net change in cash and cash equivalents	(17,668)	(8,808)
Cash and cash equivalents, beginning of year	54,747	53,084
Cash and cash equivalents, end of period	$ 37,079	$ 44,276

Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2015

Balance Sheet Components [Abstract]

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):



	March 31,		December 31,
	2015		2014
Prepaid expenses and deposits for inventory	$	4,595	$	2,253
Other current assets	550		603
Prepaid expenses and other current assets	$	5,145	$	2,856

Property, Plant and Equipment

Property and equipment consist of the following (in thousands):



	March 31,			December 31,
	2015			2014
Distribution equipment (useful lives of lesser of 7 years or contract term)	$	5,582		$	5,582
Computer and office equipment (useful lives of 3 to 5 years)	448			383
Software, including internal-use software (useful lives of 3 years)	329			329
Leasehold improvements (useful lives of lesser of estimated life or lease term)	226			226
Furniture and fixtures (useful lives of 5 years)	199			199
Total property and equipment	6,784			6,719
Less: Accumulated depreciation and amortization	(5,451		)	(5,118		)
Property and equipment, net	$	1,333		$	1,601

Schedule of Accrued Liabilities

Accrued and other liabilities consist of the following (in thousands):



	March 31, 2015		December 31, 2014
Unbilled inventory receipts	$	1,952	$	845
Accrued royalties	1,341		3,973
Accrued employee compensation and benefits	1,156		947
Short-term contingent consideration⁽¹⁾	896		250
Accrued expenses	933		2,121
Accrued Geek Points⁽²⁾	354		446
Other accrued liabilities	642		2,077
Accrued and other liabilities	$	7,274	$	10,659

(1) Short-term contingent consideration represents the fair value of the potential earn-out payments related to the acquisition of Treehouse based on the terms of the asset purchase agreement. A payment of approximately $0.3 million was paid during the first quarter of 2015. The remaining payment will be determined as of December 31, 2015. See Note 4. Fair Value Measurements.

(2) Accrued Geek Points represents the cost of anticipated future redemptions for awards earned as of the end of the respective periods.

Schedule of Other Long Term Liabilities

Other long-term liabilities consist of the following (in thousands):



	March 31, 2015		December 31, 2014
Long-term contingent consideration⁽¹⁾	$	—	$	865
Long-term deferred rent	72		50
Long-term deferred tax liability	10		10
Other long-term liabilities	$	82	$	925

(1) Long-term contingent consideration at December 31, 2014 represents the fair value of the potential earn-out payments related to the acquisition of Treehouse based on the terms of the asset purchase agreement. At March 31, 2015, this liability is reflected in accrued and other liabilities. See Note 4. Fair Value Measurements.