SILVER SPRING NETWORKS INC

CIK:0001180079|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Product revenue	$ 26,612,000	$ 50,463,000	$ 267,853,000	$ 153,232,000
Services revenue	20,956,000	23,723,000	91,550,000	91,526,000
Total revenue	47,568,000	74,186,000	359,403,000	244,758,000
Cost of revenue:
Product cost of revenue	15,885,000	29,249,000	218,403,000	86,668,000
Services cost of revenue	17,878,000	16,695,000	53,744,000	48,308,000
Total cost of revenue	33,763,000	45,944,000	272,147,000	134,976,000
Gross profit	13,805,000	28,242,000	87,256,000	109,782,000
Operating expenses:
Research and development	15,971,000	18,165,000	51,884,000	51,583,000
Sales and marketing	8,752,000	10,425,000	26,748,000	28,597,000
General and administrative	15,828,000	11,667,000	38,975,000	33,752,000
Impairment of intangible assets	0	2,204,000	0	2,204,000
Restructuring	35,000		1,289,000	39,000
Total operating expenses	40,586,000	42,461,000	118,896,000	116,175,000
Operating loss	(26,781,000)	(14,219,000)	(31,640,000)	(6,393,000)
Other income, net	761,000	113,000	1,313,000	887,000
Loss before income taxes	(26,020,000)	(14,106,000)	(30,327,000)	(5,506,000)
Benefit (provision) for income taxes	793,000	(1,143,000)	555,000	(2,136,000)
Net loss	$ (25,227,000)	$ (15,249,000)	$ (29,772,000)	$ (7,642,000)
Net loss per share
Basic	$ (0.47)	$ (0.29)	$ (0.56)	$ (0.15)
Diluted	$ (0.47)	$ (0.29)	$ (0.56)	$ (0.15)
Weighted average shares used to compute net loss per share
Basic	53,829	51,743	53,260	51,244
Diluted	53,829	51,743	53,260	51,244

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (29,772,000)	$ (7,642,000)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred taxes	(45,000)	94,000
Impairment of intangible assets	0	2,204,000
Depreciation and amortization	6,666,000	6,332,000
Stock-based compensation	21,258,000	21,839,000
Other non-cash adjustments	269,000	772,000
Changes in operating assets and liabilities:
Accounts receivable	(5,241,000)	2,826,000
Inventory	1,980,000	(750,000)
Prepaid expenses and other current assets	(5,161,000)	2,957,000
Landlord incentives related to lease	883,000	6,788,000
Deferred cost of revenue	140,122,000	17,595,000
Accounts payable	10,019,000	(8,908,000)
Customer deposits	42,000	1,031,000
Deferred revenue	(130,167,000)	(28,061,000)
Accrued and other liabilities	1,187,000	(4,400,000)
Net cash provided by operating activities	12,040,000	12,677,000
Cash flows from investing activities:
Proceeds from sales of available-for-sale investments	6,548,000	39,217,000
Proceeds from maturities of available-for-sale investments	5,200,000	10,970,000
Purchases of available-for-sale investments	(11,382,000)	(56,355,000)
Purchases of property and equipment	(2,491,000)	(23,369,000)
Net cash used for investing activities	(2,125,000)	(29,537,000)
Cash flows from financing activities:
Payments on capital lease obligations		(285,000)
Proceeds from issuance of common stock	5,484,000	4,238,000
Taxes paid related to net share settlement of equity awards	(7,040,000)	(4,169,000)
Net cash used for financing activities	(1,556,000)	(216,000)
Effect of exchange rate changes on cash and cash equivalents	123,000	(140,000)
Net increase (decrease) in cash and cash equivalents	8,482,000	(17,216,000)
Cash and cash equivalents—beginning of period	50,383,000	65,264,000
Cash and cash equivalents—end of period	58,865,000	48,048,000
Supplemental cash flow information—cash paid for income taxes	501,000	4,740,000
Non-cash investing activities:
Unpaid purchases of property and equipment	$ 2,033,000	$ 1,134,000

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 58,865	$ 50,383
Short-term investments	67,349	67,876
Accounts receivable	49,988	44,770
Inventory	6,064	8,040
Deferred cost of revenue	72,459	194,769
Prepaid expenses and other current assets	12,984	12,536
Total current assets	267,709	378,374
Property and equipment, net	26,395	28,986
Goodwill and intangible assets	10,428	11,005
Deferred cost of revenue, non-current	8,980	26,639
Deferred tax assets, non-current	525	481
Other long-term assets	2,483	1,643
Total assets	316,520	447,128
Current liabilities:
Accounts payable	36,960	26,785
Deferred revenue	208,060	292,260
Accrued and other liabilities	37,598	44,146
Total current liabilities	282,618	363,191
Deferred revenue, non-current	47,451	93,149
Other liabilities	25,406	22,324
Total liabilities	355,475	478,664
Commitments and contingencies (Note 12)
Stockholders’ deficit:
Common stock and additional paid-in capital, $0.001 par value; 1,000,000 shares authorized; 54,127 and 52,185 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively	641,187	618,651
Accumulated other comprehensive loss	(2,053)	(2,113)
Accumulated deficit	(678,089)	(648,074)
Total stockholders’ deficit	(38,955)	(31,536)
Total liabilities and stockholders’ deficit	$ 316,520	$ 447,128