Q2 2016 Earnings

Reported June 29, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2016	Q1 2016	Q2 2015	QoQ Change	YoY Change
Revenue	$14M	$13M	—	8.9%	—
Op. Income	-$10M	-$9M	—	-7.2%	—
Gross Margin	83.1%	84.1%	—	-1.0pp	—
Net Margin	-67.6%	-67.9%	—	0.3pp	—
EPS (Diluted)	$-1.23	$-1.13	—	-8.2%	—

Income Statement

Item	Amount
REVENUE	$14M
Cost of Revenue	$2M
GROSS PROFIT	$12M
R&D Expenses	$492.6K
Selling & Marketing	$17M
General & Administrative	$4M
SG&A Expenses	$21M
Other Expenses	$0
Operating Expenses	$21M
Cost & Expenses	$23M
OPERATING INCOME	-$10M
Interest Income	$135.2K
Interest Expense	$0
Other Income/Expenses	$136.6K
INCOME BEFORE TAX	-$9M
Income Tax Expense	$0
Net Income from Continuing Ops	-$9M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	-$9M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	-$9M
D&A	$114.4K
EBIT	-$10M
EBITDA	-$9M
EPS	-$1
EPS Diluted	-$1