Sphere 3D Corp. (NASDAQ:ANY) traded higher in the market after posting first-quarter results that met Wall Street expectations. The Virtualization technology provider says it generated revenues of $21.7 million up from $19.6 million in Q1 of 2016. Gross margin in the quarter was also up coming in at 31.4% compared to 30.4% last year same period.
Sphere 3D Q1 Results
Sphere 3D Corp. (NASDAQ:ANY) net loss for the three months ending march 31 narrowed to$7.8 million compared to $8.1 million as of last year same period. Operating expenses also dropped to $11.6 million from $13.8 million as of Q1 2016.
Chief executive officer, Erick Kelly, has attributed the stellar financial results to strategic initiatives implemented from Q2 2016.
“Through the restructuring and execution on the virtualization strategy, specifically through our acquisition of HVE and UCX, we are able to deliver new large deals for our converged and virtualization product offerings. Meanwhile, our storage products continued to perform well in the market in the first quarter. We continue to make progress towards positioning the Company for revenue growth and financial stability, “said Mr. Kelly.
The filling of the earnings also came with the confirmation of the appointment of Duncan McEwan into the company’s board of directors. McEwan joins the board with vast experience having worked in a number of cloud-based software companies. He is currently serving as the president of Diligent Inc., having also worked as the executive vice president of Call Net Enterprises Inc.
Sphere 3D Partners Datrium
Separately, Sphere 3D Corp. (NASDAQ:ANY) has partnered Datrium as it moves to accelerate the adoption of its private cloud center. The data center in question has already undergone massive transformation having been built on converged, hyper-converged and open converged technologies.
The two companies have already created a series of HVE bundles that they say will accelerate the transformation of proven solution designs that should help meet customer performance and capacity needs. The new HVE ‘Datrium ready’ node bundles will be available in two distinct sets for different workloads.
The signing of the partnership comes just days after Sphere 3D confirmed Gollob Morgan Peddy PC has selected its HVE technology for VDI expansion through authorized reseller Cynergy Technology.
Sphere 3D Corp. (NASDAQ:ANY) impressive run continued on Thursday trading session after posting better than expected financial results. The stock was up by 18.6% consequently closing at highs of $0.2289 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.