TELLIUM INC

CIK:0001101680|SEC Filings

Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2024

Sep. 30, 2023

Sep. 30, 2024

Sep. 30, 2023

Income Statement [Abstract]

Net revenue

$ 38,149

$ 22,737

$ 96,882

$ 97,727

Cost of revenue

26,924

23,774

62,605

71,579

Gross profit (loss)

11,225

(1,037)

34,277

26,148

Operating expenses:

Research and product development

10,656

8,327

25,114

27,802

Selling, marketing, general and administrative

20,386

19,562

54,414

57,945

Restructuring and other charges

266

135

510

4,881

Impairment of long-lived assets

499

Amortization of intangible assets

1,919

1,321

4,299

3,913

Total operating expenses

33,227

29,345

84,337

95,040

Operating loss

(22,002)

(30,382)

(50,060)

(68,892)

Interest expense, net

(2,175)

(751)

(4,793)

(2,259)

Loss on extinguishment of debt

(375)

Bargain purchase gain

41,544

Other income (expense), net

(103)

(472)

232

Loss from continuing operations before income taxes

(24,095)

(31,611)

(13,781)

(71,294)

Income tax provision (benefit)

1,551

(2,226)

2,327

730

Net loss from continuing operations

(25,646)

(29,385)

(16,108)

(72,024)

Loss from discontinued operations, net of income tax

(4,628)

(3,319)

(10,643)

Loss on sale of discontinued operations

(2,803)

Net loss from discontinued operations

(4,628)

(6,122)

(10,643)

Net loss

(25,646)

(34,013)

(22,230)

(82,667)

Foreign currency translation adjustments

^[1]

(548)

(823)

(2,343)

(3,916)

Reclassification of foreign currency translation adjustments to net income as a result of discontinued operations

12,023

Actuarial loss

(37)

(56)

(109)

(178)

Comprehensive loss

$ (26,231)

$ (34,892)

$ (12,659)

$ (86,761)

Net loss per share from continuing operations

Basic (in dollars per share)

$ (0.67)

$ (0.92)

$ (0.43)

$ (2.29)

Diluted (in dollars per share)

(0.67)

(0.92)

(0.43)

(2.29)

Basic (in dollar per share)

(0.15)

(0.16)

(0.34)

Diluted (in dollar per share)

$ 0

$ (0.15)

$ (0.16)

$ (0.34)

Weighted average shares outstanding

Basic (in shares)

38,081

31,892

37,710

31,386

Diluted (in shares)

38,081

31,892

37,710

31,386

[1]

Includes net gain of $0.5 million and $0.1 million on intra-entity foreign currency transactions that are of a long-term investment nature for three and nine months ended September 30, 2024. Includes net loss of $0.4 million and $0.2 million on intra-entity foreign currency transactions that are of a long-term investment nature for three and nine months ended September 30, 2023.

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net loss	$ (22,230)	$ (82,667)
Loss from discontinued operations, net of income tax	3,319	10,643
Loss on sale of discontinued operations	2,803	0
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	5,566	5,633
Impairment of long-lived assets	0	499
Loss on extinguishment of debt	0	375
Bargain purchase gain	(41,544)	0
Amortization of deferred financing costs	1,554	234
Stock-based compensation	6,667	10,934
Provision for inventory write-down, net of recoveries	(965)	11,175
Provision for credit losses, net of recoveries	744	3,010
Provision for sales returns, net of recoveries	(855)	4,255
Provision for warranty expense, net of recoveries	20	(229)
Unrealized loss on foreign currency transactions	484	282
Loss on disposal of property, plant and equipment	0	56
Changes in operating assets and liabilities, excluding effects of acquisition:
Accounts receivable	13,254	35,236
Other receivable	(1,158)	724
Inventories	1,892	(11,624)
Contract assets	228	(183)
Prepaid expenses and other assets	(2,543)	(1,253)
Accounts payable	16,060	(19,377)
Contract liabilities	(3,496)	(8,647)
Accrued and other liabilities	(7,864)	7,225
Net cash used in operating activities from continuing operations	(28,064)	(33,699)
Net cash used in operating activities from discontinued operations	(9,807)	(7,520)
Net cash used in operating activities	(37,871)	(41,219)
Cash flows from investing activities:
Proceeds from disposal of property, plant and equipment and other assets	0	1,829
Purchases of property, plant and equipment	(366)	(964)
Acquisition of business, net of cash acquired	(7,326)	0
Net cash provided by (used in) investing activities from continuing operations	(7,692)	865
Sale of discontinued operations, net of cash transferred	(35)	0
Net cash used in investing activities from discontinued operations	(99)	(444)
Net cash provided by (used in) investing activities	(7,826)	421
Cash flows from financing activities:
Proceeds from private placement of shares	9,925	0
Intra-group loan from discontinued operations	0	34,100
Proceeds from long-term borrowings	15,000	0
Repayments of long-term borrowings	0	(24,073)
Repayments of short-term borrowings and line of credit, net	0	(4,302)
Payments for debt issue costs	(847)	(198)
Payments of contingent consideration	0	(347)
Proceeds from exercise of stock awards and employee stock plan purchases, net of taxes	(171)	(259)
Net cash provided by financing activities from continuing operations	23,907	4,921
Net cash provided by financing activities from discontinued operations	7,997	1,651
Net cash provided by financing activities	31,904	6,572
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,380)	914
Net change in cash, cash equivalents and restricted cash	(15,173)	(33,312)
Cash, cash equivalents and restricted cash at beginning of period	20,909	38,464
Cash, cash equivalents and restricted cash at end of period	5,736	5,152
Reconciliation of cash, cash equivalents and restricted cash to statement of financial position
Cash and cash equivalents	4,297	2,332
Restricted cash	1,439	62
Cash, cash equivalents and restricted cash held for sale	0	2,758
Cash, cash equivalents and restricted cash	5,736	5,152
Cash paid during the period for:
Interest - bank and trade facilities	1,803	2,370
Income taxes	50	235
Interest - bank and trade facilities	187	90
Interest - related party	0	159
Income taxes	$ 32	$ 487

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 4,297	$ 13,822
Restricted cash	1,439	1,280
Accounts receivable - trade, net of allowance for credit losses of $4,185 as of September 30, 2024 and $4,282 as of December 31, 2023	34,216	44,816
Other receivables, net of allowance for credit losses of $877 as of September 30, 2024 and 0 as of December 31, 2023	962	452
Inventories	79,087	33,113
Contract assets	598	825
Prepaid expenses and other current assets	13,625	7,685
Current assets held for sale	0	94,375
Total current assets	134,224	196,368
Property, plant and equipment, net	2,930	3,108
Right-of-use assets from operating leases	4,453	3,661
Intangible assets, net	25,840	25,065
Other assets	11,056	13,371
Non-current assets held for sale	0	7,808
Total assets	178,503	249,381
Current liabilities:
Accounts payable - trade	63,072	46,003
Contract liabilities	12,105	14,945
Operating lease liabilities	2,473	2,732
Accrued and other liabilities	32,431	32,704
Current liabilities held for sale	0	69,427
Total current liabilities	110,081	165,811
Long-term debt	16,424	7,308
Contract liabilities - non-current	1,831	2,834
Operating lease liabilities - non-current	3,539	3,994
Pension liabilities	11,358	11,504
Other long-term liabilities	2,936	1,797
Non-current liabilities held for sale	0	33,574
Total liabilities	146,169	226,822
Commitments and contingencies (Note 13)
Stockholders’ equity:
Common stock, $0.001 par value, 72,000 shares authorized, 38,741 and 32,122 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.	37	31
Preferred stock, $0.001 par value, 25,000 shares authorized and no shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.	0	0
Additional paid-in capital	317,291	294,863
Accumulated other comprehensive income (loss)	1,124	(8,447)
Accumulated deficit	(286,118)	(263,888)
Total stockholders’ equity	32,334	22,559
Total liabilities and stockholders’ equity	$ 178,503	$ 249,381