SCHEDULE 1
COMVERGE, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ --------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue
Product $5,077 $4,249 $9,913 $7,451
Service 8,188 5,272 14,932 12,523
----- ----- ------ ------
Total revenue 13,265 9,521 24,845 19,974
Cost of revenue
Product 2,982 2,659 6,086 4,699
Service 4,445 3,037 8,503 7,042
----- ----- ----- -----
Total cost of
revenue 7,427 5,696 14,589 11,741
----- ----- ------ ------
Gross profit 5,838 3,825 10,256 8,233
Operating expenses
General and
administrative
expenses 8,101 8,615 15,990 16,916
Marketing and
selling expenses 4,683 3,856 8,442 7,880
Research and
development
expenses 1,209 168 2,325 536
Amortization of
intangible assets 552 656 1,104 1,312
--- --- ----- -----
Operating loss (8,707) (9,470) (17,605) (18,411)
Interest and other
expense (income),
net 369 67 564 (144)
--- -- --- ----
Loss before income
taxes (9,076) (9,537) (18,169) (18,267)
Provision for
income taxes 65 78 107 170
-- -- --- ---
Net loss $(9,141) $(9,615) $(18,276) $(18,437)
======= ======= ======== ========
Net loss per share
Basic and diluted $(0.43) $(0.45) $(0.85) $(0.88)
====== ====== ====== ======
Weighted average
shares used in
computation 21,403,508 21,175,224 21,385,061 21,022,739
SCHEDULE 2
COMVERGE, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
Utility Products
& Services $7,939 $5,309 $14,600 $9,466
Residential
Business 3,019 1,778 6,971 5,104
Commercial &
Industrial
Business 2,307 2,434 3,274 5,404
----- --- --- ---
Total Revenue $13,265 $9,521 $24,845 $19,974
======= ====== ======= =======
Cost of Revenue:
Utility Products
& Services 4,362 3,006 8,239 5,417
Residential
Business 1,690 1,076 4,333 2,622
Commercial &
Industrial
Business 1,375 1,614 2,017 3,702
----- --- --- ---
Total Cost of
Revenue $7,427 $5,696 $14,589 $11,741
====== ====== ======= =======
Gross Profit:
Utility Products
& Services 3,577 2,303 6,361 4,049
Residential
Business 1,329 702 2,638 2,482
Commercial &
Industrial
Business 932 820 1,257 1,702
--- --- --- ---
Total Gross
Profit $5,838 $3,825 $10,256 $8,233
====== ====== ======= ======
SCHEDULE 3
COMVERGE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2009 2008
------- -------
Assets
Cash and cash equivalents $33,805 $19,571
Restricted cash 1,074 1,968
Marketable securities 21,448 28,276
Billed accounts receivable, net 9,603 18,877
Unbilled accounts receivable 5,403 5,908
Inventory, net 4,848 4,960
Deferred costs 8,937 2,197
Other current assets 1,270 1,273
----- -----
Total current assets 86,388 83,030
Restricted cash 2,094 2,089
Property and equipment, net 23,020 20,572
Intangible assets, net 9,070 10,251
Goodwill 8,179 8,179
Other assets 912 1,036
--- -----
Total assets $129,663 $125,157
======== ========
Liabilities and
Shareholders' Equity
Accounts payable $7,038 7,672
Accrued expenses 4,929 8,006
Deferred revenue 23,503 6,694
Current portion of long-term debt 3,763 3,226
Other current liabilities 3,433 2,400
----- -----
Total current liabilities 42,666 27,998
Deferred revenue 2,482 2,220
Long-term debt 30,099 24,888
Other liabilities 2,158 2,391
----- -----
Total long-term liabilities 34,739 29,499
Common stock 22 22
Additional paid-in capital 223,563 220,638
Common stock held in treasury (189) (119)
Accumulated deficit (171,206) (152,930)
Accumulated other comprehensive
income 68 49
-- --
Total shareholders' equity 52,258 67,660
------ ------
Total liabilities and shareholders'
equity $129,663 $125,157
======== ========
SCHEDULE 4
COMVERGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------- ------------------
2009 2008 2009 2008
---- ---- ---- ----
Cash flows from operating
activities
Net loss $(9,141) $(9,615) $(18,276) $(18,437)
Adjustments to reconcile net
loss to net cash provided
by (used in) operating
activities
Depreciation 261 200 512 375
Amortization of intangible
assets 686 656 1,365 1,312
Stock-based compensation 1,429 1,899 2,817 3,752
Other 555 (53) 644 32
Changes in working capital 14,220 472 22,348 (1,725)
------ --- ------ -----
Net cash provided by (used
in) operating activities 8,010 (6,441) 9,410 (14,691)
Cash flows from investing
activities
Changes in restricted cash (4) 410 889 (2,512)
Purchases of marketable
securities (10,462) (12,465) (14,481) (22,845)
Maturities of marketable
securities 9,350 12,700 21,250 29,480
Purchases of property and
equipment (4,645) (2,038) (8,586) (4,432)
----- ----- ----- -----
Net cash used in investing
activities (5,761) (1,393) (928) (309)
Cash flows from financing
activities
Borrowings under debt
facilities, net 3,432 1,808 5,749 3,694
Other 33 (480) 3 (395)
-- --- -- ---
Net cash provided by
financing activities 3,465 1,328 5,752 3,299
Net change in cash and cash
equivalents 5,714 (6,506) 14,234 (11,701)
Cash and cash equivalents at
beginning of period 28,091 34,560 19,571 39,755
------ ------ ------ ------
Cash and cash equivalents at
end of period $33,805 $28,054 $33,805 $28,054
======= ======= ======= =======
SCHEDULE 5
COMVERGE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO THE
MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURE
(In thousands)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ --------------------
2009 2008 2009 2008
---- ---- ---- ----
Net loss $(9,141) $(9,615) $(18,276) $ (18,437)
Depreciation and
amortization 947 856 1,877 1,687
Interest
(income)
expense, net 358 7 548 (201)
Provision for
income taxes 65 78 107 170
-- -- --- ---
EBITDA (7,771) (8,674) (15,744) (16,781)
Non-cash stock
compensation
expense 1,429 1,899 2,817 3,752
----- ----- ----- -----
Adjusted EBITDA $(6,342) $(6,775) $(12,927) $(13,029)
======= ======= ======== ========
See "Non-GAAP Financial Information" above in this earnings press release for information on the use of this Non-GAAP financial measure.