AEROHIVE NETWORKS, INC

CIK:0001372414|SEC Filings

Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue:
Total revenue	$ 38,037	$ 40,475	$ 71,054	$ 76,242
Cost of revenue
Total cost of revenue	13,607	13,762	26,245	25,837
Gross profit	24,430	26,713	44,809	50,405
Operating expenses:
Research and development	9,668	8,581	18,431	17,860
Sales and Marketing Expense	13,170	15,731	27,667	31,401
General and administrative	7,711	5,272	13,722	11,226
Total operating expenses	30,549	29,584	59,820	60,487
Operating loss	(6,119)	(2,871)	(15,011)	(10,082)
Interest income	475	337	971	626
Interest expense	(200)	(183)	(407)	(347)
Other income (expense), net	(80)	(31)	(77)	(204)
Loss before income taxes	(5,924)	(2,748)	(14,524)	(10,007)
Provision for income taxes	158	84	210	142
Net loss	$ (6,082)	$ (2,832)	$ (14,734)	$ (10,149)
Net loss per share, basic and diluted (USD per share)	$ (0.11)	$ (0.05)	$ (0.26)	$ (0.19)
Weighted-average shares used in computing net loss per share, basic and diluted	56,676,019	54,828,749	56,354,579	54,582,129
Stock-based compensation	$ 3,153	$ 3,584	$ 6,738	$ 7,255
Cost of Sales
Operating expenses:
Stock-based compensation	240	256	466	502
Research and development
Operating expenses:
Stock-based compensation	867	968	1,953	2,014
Sales and marketing
Operating expenses:
Stock-based compensation	913	1,110	1,839	2,107
General and administrative
Operating expenses:
Stock-based compensation	1,133	1,250	2,480	2,632
Product
Revenue:
Total revenue	24,746	29,268	45,232	54,334
Cost of revenue
Total cost of revenue	9,888	10,379	18,885	19,050
Subscription and support
Revenue:
Total revenue	13,291	11,207	25,822	21,908
Cost of revenue
Total cost of revenue	$ 3,719	$ 3,383	$ 7,360	$ 6,787

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net loss	$ (14,734)	$ (10,149)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,492	1,493
Stock-based compensation	6,738	7,255
Other	(346)	(274)
Changes in operating assets and liabilities:
Accounts receivable, net	4,270	475
Inventories	1,814	2,261
Prepaid expenses and other current assets	(524)	(293)
Operating lease right-of-use assets and other assets	754	(370)
Accounts payable	(1,950)	(105)
Accrued liabilities and other current liabilities	(1,647)	478
Operating lease liabilities, non-current and other liabilities	(335)	12
Deferred revenue	5,148	4,267
Net cash provided by operating activities	680	5,050
Cash flows from investing activities
Purchases of property and equipment	(436)	(1,439)
Maturities of short-term investments	57,482	38,651
Purchases of short-term investments	(48,374)	(33,360)
Net cash provided by investing activities	8,672	3,852
Cash flows from financing activities
Proceeds from employee stock option exercises and employee stock purchase plan	1,462	1,612
Payment for shares withheld for tax withholdings on vesting of restricted stock units	(387)	(1,673)
Payments for Repurchase of Common Stock	0	1,023
Payment on finance lease (capital lease prior to adoption of ASC 842)	(97)	(94)
Net cash provided by (used in) financing activities	978	(1,178)
Net increase in cash and cash equivalents	10,330	7,724
Cash and cash equivalents at beginning of period	26,049	27,249
Cash and cash equivalents at end of period	36,379	34,973
Supplemental disclosure of cash flow information
Income taxes paid	129	47
Interest paid	347	355
Supplemental disclosure of noncash investing and financing activities
Unpaid property and equipment purchases	$ 104	$ 620

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 36,379	$ 26,049
Short-term investments	57,571	66,052
Accounts receivable, net	11,915	16,185
Inventories	14,303	16,117
Prepaid expenses and other current assets	6,763	6,399
Total current assets	126,931	130,802
Property and equipment, net	4,552	5,947
Operating lease right-of-use assets	4,066
Goodwill	513	513
Other assets	4,276	4,255
Total assets	140,338	141,517
CURRENT LIABILITIES:
Accounts payable	14,061	16,129
Accrued liabilities	7,707	8,937
Operating lease liabilities, current	1,024
Debt, current	0	20,000
Deferred revenue, current	41,532	38,786
Total current liabilities	64,324	83,852
Debt, non-current	20,000	0
Deferred revenue, non-current	40,877	38,475
Operating lease liabilities, non-current	3,211
Other liabilities	1,179	1,582
Total liabilities	129,591	123,909
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, par value of $0.001 per share - 25,000,000 shares authorized as of June 30, 2019 and December 31, 2018; no shares issued and outstanding as of June 30, 2019 and December 31, 2018	0	0
Common stock, par value of $0.001 per share - 500,000,000 shares authorized as of June 30, 2019 and December 31, 2018; 57,373,710 and 55,867,619 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively	57	56
Additional paid–in capital	301,722	293,910
Treasury stock - 2,469,978 shares as of June 30, 2019 and December 31, 2018, respectively	(10,584)	(10,584)
Accumulated other comprehensive income (loss)	46	(14)
Accumulated deficit	(280,494)	(265,760)
Total stockholders’ equity	10,747	17,608
Total liabilities and stockholders’ equity	$ 140,338	$ 141,517