China HGS launched the sales center for the Liangzhou Mansion project

PR Newswire

HANZHONG, China, Dec. 10, 2020 /PRNewswire/ — China HGS Real Estate, Inc. (NASDAQ: HGSH) (“China HGS” or the “Company”), a leading regional real estate developer headquartered in Hanzhong City, Shaanxi Province, China, today announced that the Company has established a sales center for the Liangzhou Mansion project.

Liangzhou Mansion project is a part of Liangzhou road real estate project. Liangzhou Mansion project consists of 7 high-rise residential building and commercial shops with total planned GFA of 160,000 square meters located in the downtown of Hanzhong city. The construction of Liangzhou Mansion project was started in the beginning of December 2020. The Company expects to begin the presales of project in the first half of 2021.

Safe Harbor Statement

This press release contains forward-looking statements, which are subject to change. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All “forward-looking statements” relating to the business of China HGS Real Estate Inc., which can be identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties which could cause actual results to differ. These factors include but are not limited to: the uncertain market for the Company’s business, macroeconomic, technological, regulatory, or other factors affecting the profitability of real estate business; and other risks related to the Company’s business and risks related to operating in China. Please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2019, for specific details on risk factors. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. The Company’s actual results could differ materially from those contained in the forward-looking statements. The Company undertakes no obligation to revise or update its forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

About China HGS Real Estate, Inc.

China HGS Real Estate, Inc. (NASDAQ: HGSH), founded in 1995 and headquartered in Hanzhong City, Shaanxi Province, is a leading real estate developer in the region and holds the national grade I real estate qualification. The Company focuses on the development of high-rise, sub-high-rise residential buildings and multi-building apartment complexes in China’s Tier 3 and Tier 4 cities and counties with rapidly growing populations driven by increased urbanization. The Company provides affordable housing with popular and modern designs to meet the needs of multiple buyer groups. The Company’s development activity spans a range of services, including land acquisition, project planning, design management, construction management, sales and marketing, and property management. For further information about China HGS, please go to www.chinahgs.com.

Company contact:

Randy Xiong,
President of Capital Market
China Phone: (86) 091-62622612
Email: [email protected]

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SOURCE China HGS Real Estate Inc.

LiveXLive Media Announces Two Million Shares Stock Repurchase Program

PR Newswire

LOS ANGELES, Dec. 10, 2020 /PRNewswire/ — LiveXLive Media (Nasdaq: LIVX) (“LiveXLive”), a global platform for livestream and on-demand audio, video and podcast content in music, comedy and pop culture, and owner of PodcastOne, announced today that its board of directors (the “Board”) has authorized the repurchase up to two million shares of LiveXLive’s outstanding common stock from time to time (the “Program”).

Robert Ellin, LiveXLive’s CEO and Chairman, commented, “I am pleased to announce board approval for the new stock repurchase program given the current price of our stock, which we do not believe reflects the underlying value of LiveXLive. We remain enthusiastic about the prospects of LiveXLive and are focused on our commitment to maximize shareholder value.”

The timing, price, and quantity of purchases under the Program will be at the discretion of LiveXLive’s management and will depend upon a variety of factors including share price, general and business market conditions, compliance with applicable laws and regulations, corporate and regulatory requirements, and alternative uses of capital. Repurchases may also be made under a Rule 10b5-1 plan, which would permit shares to be repurchased when LiveXLive might otherwise be precluded from doing so under insider trading laws. The Program may be expanded, suspended, or discontinued by the Board at any time. There is no guarantee as to the exact number of shares, if any, that will be repurchased by LiveXLive, and LiveXLive may discontinue purchases at any time that management determines additional purchases are not warranted. The Plan will be funded from current available working capital. 

LiveXLive has the first talent-centric platform focused on superfans and building long-term franchises in on-demand audio and video, podcasting, vodcasting, OTT linear channels, pay-per-view (“PPV”), and livestreaming. Its model includes multiple monetization paths including subscription, advertising, sponsorship, merchandise sales, licensing, and ticketing. LiveXLive recently raised revenue guidance for its 2021 fiscal year based on strength in its core businesses.

LiveXLive has become a go-to platform for livestreaming events that combine music with pop culture of podcasting, sports, arts, fashion, culinary and comedy. So far in calendar year 2020, LiveXLive content has been viewed over 95 million times. From emerging to established artists, LiveXLive has streamed a variety of artists and celebrities in 2020 alone, including Billie Eilish, Kygo, Billy Joel, Bon Jovi, Chris Rock, Idina Menzel, Jennifer Lopez, Jimmy Buffett, OneRepublic, Zac Brown, Sofi Tukker, and Darius Rucker.


About LiveXLive Media, Inc.

Headquartered in Los Angeles, California, LiveXLive Media, Inc. (NASDAQ: LIVX) (the “Company”) (pronounced Live “by” Live) is a global platform for livestream and on-demand audio, video and podcast content in music, comedy, and pop culture. LiveXLive, which has streamed over 1500 artists since January 2020, has become a go-to partner for the world’s top artists and celebrity voices as well as music festivals concerts, including Rock in Rio, EDC Las Vegas, and many others. In April 2020, LiveXLive produced its first 48-hour music festival called “Music Lives” with tremendous success as it earned over 50 million views and over 5 billion views for #musiclives on TikTok on 100+ performances. LiveXLive’s library of global events, video-audio podcasts and original shows are also available on Amazon, Apple TV, Roku and Samsung TVs in addition to its own app, destination site and social channels. The Company’s wholly-owned subsidiary, PodcastOne, generates more than 2.1 billion downloads annually across more than 300 podcasts. For more information, visit www.livexlive.com and follow us on FacebookInstagramTikTokTwitter at @livexlive, and YouTube.


Forward-Looking Statements

All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: the Company’s reliance on one key customer for a substantial percentage of its revenue; the Company’s ability to consummate any proposed financing or acquisition and the timing of the closing of such proposed transaction, including the risks that a condition to closing would not be satisfied within the expected timeframe or at all or that the closing of any proposed transaction will not occur; the Company’s ability to continue as a going concern; the Company’s ability to attract, maintain and increase the number of its users and paid subscribers; the Company identifying, acquiring, securing and developing content; the Company’s ability to maintain compliance with certain financial and other covenants; the Company successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; the effects of the global Covid-19 pandemic; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of the Company’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 26, 2020, Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, filed with the SEC on August 14, 2020, and in the Company’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof and the Company disclaims any obligations to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

Press Contact:
For LiveXLive: The Rose Group 
Lynda Dorf
[email protected]

LiveXLive IR Contact:
310.601.2500
[email protected]

 

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SOURCE LiveXLive Media, Inc.

Shutterstock Launches The Create Fund

New $300,000 grant program aimed at supporting underrepresented artists

PR Newswire

NEW YORK, Dec. 10, 2020 /PRNewswire/ — Shutterstock, Inc. (NYSE:SSTK), a leading global creative platform offering full-service solutions for brands, businesses and media in need of high-quality content, tools and services, today announced The Create Fund, a $300,000 artist grant program. The Create Fund provides financial and professional support for artists around the globe focusing on diversity, inclusion, social justice and environmental awareness through the content they create.

Through The Create Fund, Shutterstock aims to fill content gaps and further diversity and inclusion within its content library and contributor network. The financial and professional support will be offered to underrepresented artists who are advancing the global mission of diversity and inclusion through their visual content. To increase the reach of the grant program, The Create Fund will be partnering with a variety of leading organizations to support giving back and engaging with a variety of artist communities.

At launch, grants offered through The Create Fund include:

  • Create for Climate: Drawing awareness to global climate change by supporting artists who use their talents to depict climate change, environmental protests, and our changing landscape.
  • Support Invisible Illness: Promoting artists who create visual stories and representations that break the stigma around mental health, portraying a more inclusive view of mental illness around the world.
  • The Senior Creatives: Supporting our community of senior creatives—those over 50 who have had years to hone their craft and want to share their experiences and perspectives through creative means.

“Representation, whether behind or in front of the lens, is integral in creating authentic content that accurately reflects the world around us,” said Kristen Sanger, Sr. Director of Contributor Marketing at Shutterstock. “With The Create Fund, we’re hoping to use this global platform to showcase the stunning, interesting, and culturally relevant imagery that reflects the beautifully diverse world we live in, as well as support and enable more artists to create and share their unique and artistic perspectives.”

Artists including photographers, videographers, illustrators, composers or writers are open and encouraged to apply. Applicants must submit a project proposal, examples of their work, and a short biography by February 8, 2021 to be considered for the first three grants. Grant recipients will be selected by a diverse panel of expert judges who are knowledgeable in the various genres of grants Shutterstock will be offering. All artists selected for a grant will be provided an outlet to license their work, either via Shutterstock, Shutterstock Editorial, Premium Beat or OFFSET.

To learn more about The Create Fund, visit https://www.shutterstock.com/explore/create-fund

About Shutterstock
Shutterstock, Inc. (NYSE: SSTK), directly and through its group subsidiaries, is a leading global provider of high-quality licensed photographs, vectors, illustrations, videos and music to businesses, marketing agencies and media organizations around the world. Working with its growing community of over 1 million contributors, Shutterstock adds hundreds of thousands of images each week, and currently has more than 350 million images and more than 20 million video clips available.

Headquartered in New York City, Shutterstock has offices around the world and customers in more than 150 countries. The company’s brands also include Bigstock, a value-oriented stock media offering; Shutterstock Custom, a custom content creation platform; Offset, a high-end image collection; PremiumBeat, a curated royalty-free music library; and Shutterstock Editorial, a premier source of editorial images and videos for the world’s media.

For more information, please visit www.shutterstock.com and follow Shutterstock on Twitter and on Facebook.

 

 

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SOURCE Shutterstock, Inc.

Fidelity National Financial Announces the inHere™ Experience Platform that Transforms the Real Estate Transaction Experience, Helping to Enhance the Safety and Simplicity Needed to Start, Track, Notarize, and Close Residential Real Estate Transactions

PR Newswire

JACKSONVILLE, Fla., Dec. 10, 2020 /PRNewswire/ — Fidelity National Financial, Inc. (NYSE: FNF) (“FNF” or the “Company”) a leading provider of title insurance and transaction services to the real estate and mortgage industries and the nation’s largest title insurance company, through its title insurance underwriters, announced today the inHere™ Experience Platform, a technology platform designed to transform the experience of buying, selling, or refinancing a home.

For years, the process of purchasing, selling, or refinancing a property has remained largely unchanged. Until now. The inHere Experience Platform transforms the real estate transaction experience, helping to enhance the safety and simplicity needed to start and track the progress of a real estate transaction, as well as, notarize and sign documents needed to close on a home.

“The real estate industry is now at an inflection point,” said Randy Quirk, CEO, Fidelity National Financial. “Evidence supports the fact that real estate professionals and consumers are ready to embrace change in the closing process, but there hasn’t been a large enough coordinated effort to deliver on the customer’s desire for change or to capitalize on the change itself. The inHere Experience Platform overcomes these hurdles and provides the necessary scale needed for real change to occur,” said Quirk.

This is because inHere is being brought to the market by the largest family of title and settlement companies, and inHere works with the nation’s largest network of trusted escrow and settlement professionals.

“Our digital vision involves leveraging our significant national footprint, expert network of local escrow and settlement professionals, and the latest cloud-based technology to reimagine the experience for real estate professionals and consumers involved in the millions of real estate transactions we handle every year. We believe that our experienced team of professionals are our greatest asset and we are committed to continually empowering them to provide the best services possible. The inHere Experience Platform is the realization of this effort,” said Michael Nolan, President, Fidelity National Financial.

The first component of inHere, startSafe®, originally announced in early 2020, is a digital experience for buyers and sellers to begin their real estate transaction and dynamically guide them through the completion of the opening process. startSafe has already been used by over a million consumers since it was introduced.

The second major component of the inHere Experience Platform is the inHere mobile app and portal. inHere is a mobile-first, transaction management solution designed for everyone involved in the home purchase, sale, or refinance process. It gives real estate professionals and consumers access to track the progress of the transaction, as well as collaborate and securely communicate with local escrow and settlement professionals throughout the transaction. And because inHere will be provided and supported by all of the FNF family of title companies, every real estate agent, lender, buyer, seller, or borrower can benefit from the better experience it provides.

“The inHere Experience Platform is built with a digital-first, mobile-first focus. Over the past few years, we have successfully migrated to cloud-based solutions and fully implemented digital connections to our key systems,” said Jason Nadeau, Chief Digital Officer, Fidelity National Financial. “What we have done that is unique is we have reimagined the process of managing and closing a real estate transaction within the nation’s largest footprint of settlement service providers. By investing in a digital infrastructure instead of investing in outside ventures, we don’t need to rely on new entities to drive change. Rather, we have spent the time to develop a technology platform that is easily deployed at scale and empowers our trusted staff to bring the digital inHere experience to millions of transactions quickly,” said Nadeau.

These integrated technology solutions work together seamlessly to provide a totally redesigned, transparent real estate experience from the moment a transaction is initiated all the way through closing. Lenders and mortgage companies, real estate agents and attorneys, title and escrow companies, and consumers each have different needs in a real estate transaction. And inHere is the first experience platform to address the three very important, yet very distinct parts of buying, selling, or refinancing a home: 1) Transaction Transparency; 2) Finance Closing; and 3) Transfer of Title / Ownership Closing.

inHere’s startSafe is deployed and has already been delivered to over a million consumers. The inHere mobile app and portal, as well as, components of the inHere Experience Platform that reimagine remote notarization and provide a guided closing experience are being deployed throughout FNF’s family of title companies now and will continue through 2021. Additional details regarding each individual component of the inHere Experience Platform will be announced in the coming months.

“We are committed to expanding our technology investments that will assist in bringing to market new parts of the inHere Experience Platform. We see the inHere mobile app, portal, and digital notarization and closing capabilities reducing costs and increasing market share,” said Quirk. “We are excited about inHere and will continue to focus on improving the security, transparency, and the overall closing experience for our customers throughout our title and settlement operations nationwide.”


About Fidelity National Financial, Inc.

Fidelity National Financial, Inc. (NYSE: FNF) is a leading provider of title insurance and transaction services to the real estate and mortgage industries. FNF is the nation’s largest title insurance company through its title insurance underwriters – Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York – that collectively issue more title insurance policies than any other title company in the United States. More information about FNF can be found at fnf.com.

FNF-G

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SOURCE Fidelity National Financial, Inc.

Cresco Labs Debuts Deliciously DosedTM Chocolates from its Mindy’s Chef Led Artisanal Edibles Brand for the Illinois Recreational Cannabis Market

PR Newswire

Arriving just in time for the holidays, the line features four chocolate bars with rich, distinct flavors from James Beard Award-winning Chef Mindy Segal

CHICAGO, Dec. 10, 2020 /PRNewswire/ – Cresco Labs (CSE: CL) (OTCQX: CRLBF) (“Cresco” or “the Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today the relaunch and availability of its cannabis-infused Chocolates line from its Mindy’s Chef Led Artisanal Edibles brand in dispensaries across Illinois. Previously introduced to the state’s medical market in 2016, the line is now available for the first time to recreational customers. Illinois total adult use cannabis sales topped $75 million for the second consecutive month in November1. The Chocolates line features three consistently dosed chocolate bars—Milk Chocolate & Peanut Brittle, Caramelized Chocolate Marshmallow Graham and Dark Chocolate Almond Toffee. In addition, for the 2020 holiday season the brand has launched a limited-time only flavor, Dark Chocolate Peppermint Bark.

“As the largest wholesaler of branded cannabis products in both the industry and Illinois, we continue to expand the reach of our House of Brands and diversified offerings to appeal to all consumers who have different preferences and needs,” said Greg Butler, Chief Commercial Officer at Cresco Labs. “It has been such a pleasure to see our Mindy’s brand grow in the last year and delight more consumers not only in Illinois, but also in California, Michigan and Massachusetts.”

Mindy Segal is Illinois’ original cannabis chef and the creative force behind her namesake line of artisanal edibles. A big difference between Mindy’s Chef Led Artisanal Edibles and other edible products in the market is their decadently delicious taste, featuring iconic flavor combinations and distinctive, premium ingredients. In addition, each product is precisely dosed to provide cannabis consumers with confidence to experiment with different flavors and textures.

With a reputation as a renowned pastry chef and restaurant owner, Segal has taken her unmatched attention to detail and quality to the production of cannabis-infused Chocolates. Additional details on the newly available Chocolates line:

  • Milk Chocolate & Peanut Brittle – A blend of two milk chocolates, each with a distinct flavor note, accented with smooth peanut butter and crunchy peanut brittle. 100 mg THC bar with 10 breakable, 10 mg pieces.
  • Caramelized Chocolate Marshmallow Graham – Caramelized white chocolate nestled with crunchy graham crackers and mini marshmallows. 100 mg 1:1 CBD/THC bar with 10 breakable, 10 mg pieces.
  • Dark Chocolate Almond Toffee – Two dark chocolates and a touch of milk chocolate with smoked almonds, crunchy toffee and smooth caramel. 100 mg THC bar with 10 breakable, 10 mg pieces.
  • Dark Chocolate Peppermint Bark – A limited-time only offering available for the 2020 holiday season while supplies last, delivers a blend of rich, luscious dark milk chocolate with smooth white chocolate ganache drizzle, topped with crushed peppermints. 100 mg THC bar with 10 breakable, 10 mg pieces.

In Illinois, the Mindy’s Chef Led Artisanal Edibles suite of products includes 2 mg and 5 mg Gummies available in six flavors and now Chocolates. The brand plans to expand its offerings to include Taffy soon.

Chocolates from Mindy’s Chef Led Artisanal Edibles are the latest product offerings to enter Cresco Labs’ Illinois market this year, following the recent launch and availability of Wonder Wellness Co. and Wonder Minis. Cresco Labs’ House of Brands is available in the state for medical patients and customers, and products include the following: Cresco premium flower, pre-rolled joints, live resin concentrates and liquid live resin vape cartridges; Mindy’s Chef Led Artisanal Edibles gummies and chocolates; Remedi capsules, Rick Simpson (RSO) syringes and tinctures; High Supply flower, popcorn, shake, pre-rolled joints, vape pens and live vape cartridges; Good News pre-rolled shorties, gummies and vape pens; and Wonder Wellness Co. Wonder Minis.

Cresco’s Mindy’s Chef Led Artisanal Edibles brand is available in California, Illinois, Massachusetts and Michigan. For more information, please visit mindysedibles.com.

1
https://www.idfpr.com/Forms/AUC/2020%2012%2002%20IDFPR%20monthly%20adult%20use%20cannabis%20sales.pdf

About Cresco Labs
Cresco Labs is one of the largest vertically-integrated multi-state cannabis operators in the United States.  Cresco is built to become the most important company in the cannabis industry by combining the most strategic geographic footprint with one of the leading distribution platforms in North America. Employing a consumer-packaged goods (“CPG”) approach to cannabis, Cresco’s house of brands is designed to meet the needs of all consumer segments and includes some of the most recognized and trusted national brands including Cresco, Remedi, High Supply, Cresco Reserve, Good News, Wonder Wellness Co., FloraCal Farms and Mindy’s Chef Led Artisanal Edibles created by James Beard Award-winning chef Mindy Segal. Sunnyside, Cresco’s national dispensary brand, is a wellness-focused retailer designed to build trust, education and convenience for both existing and new cannabis consumers. Recognizing that the cannabis industry is poised to become one of the leading job creators in the country, Cresco provides the industry’s first national comprehensive Social Equity and Educational Development (SEED) program designed to ensure that all members of society have the skills, knowledge and opportunity to work in and own businesses in the cannabis industry. Learn more about Cresco Labs at crescolabs.com.

Forward Looking Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, ‘may,’ ‘will,’ ‘should,’ ‘could,’ ‘would,’ ‘expects,’ ‘plans,’ ‘anticipates,’ ‘believes,’ ‘estimates,’ ‘projects,’ ‘predicts,’ ‘potential’ or ‘continue’ or the negative of those forms or other comparable terms. The Company’s forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under “Risk Factors” in the company’s Annual Information Form dated April 28, 2020, and other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company’s forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco’s shares, nor as to the Company’s financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company’s forward-looking statements contained herein, whether as a result of new information, any future event or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise.

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SOURCE Cresco Labs, Inc.

ENHERTU (fam-trastuzumab deruxtecan-nxki) Continues to Demonstrate Durable Responses with New Data From DESTINY-Breast01 in HER2-positive Metastatic Breast Cancer

ENHERTU (fam-trastuzumab deruxtecan-nxki) Continues to Demonstrate Durable Responses with New Data From DESTINY-Breast01 in HER2-positive Metastatic Breast Cancer

Median duration of response exceeded 20 months

Update shows encouraging landmark survival in exploratory analysis with an estimated three out of four patients alive at 18 months

WILMINGTON, Del.–(BUSINESS WIRE)–
Updated results from the positive DESTINY-Breast01 Phase II trial showed AstraZeneca and Daiichi Sankyo Company, Limited (Daiichi Sankyo)’s ENHERTU® (fam-trastuzumab deruxtecan-nxki) continued to demonstrate impressive efficacy and durable responses in patients with HER2-positive metastatic breast cancer following two or more prior HER2-based regimens.

The updated data were presented in a Spotlight Poster Discussion at the 2020 San Antonio Breast Cancer Symposium (SABCS).

With a median duration of follow-up of 20.5 months, patients treated with ENHERTU (5.4 mg/kg) achieved an objective response rate (ORR) of 61.4% and a median duration of response (DoR) of 20.8 months. The median progression-free survival (PFS) was 19.4 months. In an exploratory landmark analysis of overall survival (OS), evaluated at 35% maturity, an estimated 74% of patients remained alive at 18 months.

In the previous analysis at 11.1 months of follow-up, an ORR of 60.9% was seen with a median DoR of 14.8 months and median PFS of 16.4 months. Additional trials are ongoing to confirm the results seen in DESTINY-Breast01.

Approximately one in five patients with breast cancer are considered HER2 positive, which is associated with aggressive disease, high recurrence rate, and increased mortality.1,2

Shanu Modi, MD, Breast Medical Oncologist, Memorial Sloan Kettering Cancer Center and principal investigator in the DESTINY-Breast01 trial, said: “These longer-term data from the DESTINY-Breast01 trial further highlight the role that this treatment option may have in changing clinical outcomes for patients with previously treated HER2-positive metastatic breast cancer. It is important that we are able to offer patients therapy like this which provides a meaningful clinical benefit, as historically there have been few therapies that were able to do that in this patient population.”

José Baselga, Executive Vice President, Oncology R&D, said: “These results reinforce the transformational potential of ENHERTU in patients with previously treated HER2-positive metastatic breast cancer. With a median duration of response of greater than twenty months, the updated results of DESTINY-Breast01 are unprecedented. We look forward to further confirming the DESTINY-Breast01 findings with results from our Phase III development program for ENHERTU.”

Antoine Yver, Executive Vice President and Global Head, Oncology R&D, Daiichi Sankyo, said: “The updated findings illustrate the practice-changing potential for ENHERTU to become a long-term treatment option for patients with previously treated HER2-positive metastatic breast cancer. The duration of response and long-term safety profile further validate that our proprietary DXd antibody drug conjugate technology delivers effective and durable treatment.”

Summary of updated efficacy results from DESTINY-Breast01

 

As of Aug 1 2019

(n=184)i

As of Jun 8 2020

(n=184)ii

Median duration of follow-up

11.1 months (0.7-19.9)

20.5 months (0.7-31.4)

Patients remaining on treatment

42.9% (n=79)

20.1% (n=37)

Confirmed ORR by ICR [95% CI]iii,iv

60.9% [53.4-68.0]

(n=112)

61.4% [54.0-68.5]

(n=113)

Complete response

6.0% (n=11)

6.5% (n=12)

Partial response

54.9% (n=101)

54.9% (n=101)

Stable disease

36.4% (n=67)

35.9% (n=66)

Progressive disease

1.6% (n=3)

1.6% (n=3)

Median duration of response (95% CI)

14.8 months (13.8-16.9)

20.8 months (15.0-NE)v

Median PFS (95% CI)vi

16.4 months (12.7-NE)

19.4 months (14.1-NE)

Median OS (95% CI)vii

NE (NE-NE)

24.6 months (23.1-NE)

Estimated OS at 12 months (95% CI)

86.2% (79.8-90.7)

85% (79-90)

Estimated OS at 18 months (95% CI)

74% (67-80)

i Data from the 1 August 2019 cut-off were presented at the 2019 SABCS and published in The New England Journal of Medicine.

ii As of data cut-off, 20.1% of patients remained on treatment with Enhertu

iii ICR, independent central review

iv CI, confidence interval

v NE, not estimable

vi 114 patients (62.0%) were censored at time of analysis

vii OS was estimated at 35% maturity, with 119 patients (64.7%) censored and only 17 patients at risk at 24 months; additional follow-up is required for more mature OS data

The overall safety and tolerability profiles of ENHERTU were consistent with what has been previously reported, with few additional treatment discontinuations due to adverse events with longer treatment duration. In the updated analysis, 18.5% of patients discontinued treatment due to adverse events compared to 15.2% in the previous analysis. Most cases of interstitial lung disease (ILD) or pneumonitis occurred during the first 12 months of treatment and the results suggest the risk of developing ILD or pneumonitis toxicity is not related to cumulative treatment with ENHERTU. There were three new cases of treatment-related ILD reported, as determined by an independent adjudication committee, including one Grade 1, one Grade 2 and one death (Grade 5). Two potential cases were pending adjudication at data cut-off. Continued attention to monitoring to identify pulmonary symptoms and ensure early intervention is warranted.

ENHERTU was approved in the US and Japan for the treatment of HER2-positive, unresectable or metastatic breast cancer following two or more prior anti-HER2 based regimens in the metastatic setting based on the earlier results from the DESTINY-Breast01 trial. In the US, ENHERTU was approved under FDA Accelerated Approval and confirmatory trials are underway.

Several ongoing randomized Phase III trials are further testing ENHERTU in patients with HER2-expressing metastatic breast cancer. These trials include DESTINY-Breast02, which is evaluating ENHERTU as a 3rd-line treatment for patients with HER2-positive metastatic breast cancer and DESTINY-Breast03, which is testing ENHERTU as a 2nd-line treatment for these patients. DESTINY-Breast04 is investigating ENHERTU in patients with metastatic breast cancer and low expressions of HER2.

FDA-Approved Indication for ENHERTU

ENHERTU is a HER2-directed antibody and topoisomerase inhibitor conjugate indicated for the treatment of adult patients with unresectable or metastatic HER2-positive breast cancer who have received two or more prior anti-HER2-based regimens in the metastatic setting.

This indication is approved under accelerated approval based on tumor response rate and duration of response. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial.

IMPORTANT SAFETY INFORMATION

Contraindications

None.

WARNING: INTERSTITIAL LUNG DISEASE and EMBRYO-FETAL TOXICITY

  • Interstitial lung disease (ILD) and pneumonitis, including fatal cases, have been reported with ENHERTU. Monitor for and promptly investigate signs and symptoms including cough, dyspnea, fever, and other new or worsening respiratory symptoms. Permanently discontinue ENHERTU in all patients with Grade 2 or higher ILD/pneumonitis. Advise patients of the risk and to immediately report symptoms.
  • Exposure to ENHERTU during pregnancy can cause embryo-fetal harm. Advise patients of these risks and the need for effective contraception.

WARNINGS AND PRECAUTIONS

Interstitial Lung Disease / Pneumonitis

Severe, life-threatening, or fatal interstitial lung disease (ILD), including pneumonitis, can occur in patients treated with ENHERTU. In clinical studies, of the 234 patients with unresectable or metastatic HER2-positive breast cancer treated with ENHERTU, ILD occurred in 9% of patients. Fatal outcomes due to ILD and/or pneumonitis occurred in 2.6% of patients treated with ENHERTU. Median time to first onset was 4.1 months (range: 1.2 to 8.3).

Advise patients to immediately report cough, dyspnea, fever, and/or any new or worsening respiratory symptoms. Monitor patients for signs and symptoms of ILD. Promptly investigate evidence of ILD. Evaluate patients with suspected ILD by radiographic imaging. Consider consultation with a pulmonologist. For asymptomatic ILD/pneumonitis (Grade 1), interrupt ENHERTU until resolved to Grade 0, then if resolved in ≤28 days from date of onset, maintain dose. If resolved in >28 days from date of onset, reduce dose one level. Consider corticosteroid treatment as soon as ILD/pneumonitis is suspected (e.g., ≥0.5 mg/kg prednisolone or equivalent). For symptomatic ILD/pneumonitis (Grade 2 or greater), permanently discontinue ENHERTU. Promptly initiate corticosteroid treatment as soon as ILD/pneumonitis is suspected (e.g., ≥1 mg/kg prednisolone or equivalent). Upon improvement, follow by gradual taper (e.g., 4 weeks).

Neutropenia

Severe neutropenia, including febrile neutropenia, can occur in patients treated with ENHERTU. Of the 234 patients with unresectable or metastatic HER2-positive breast cancer who received ENHERTU, a decrease in neutrophil count was reported in 30% of patients and 16% had Grade 3 or 4 events. Median time to first onset was 1.4 months (range: 0.3 to 18.2). Febrile neutropenia was reported in 1.7% of patients.

Monitor complete blood counts prior to initiation of ENHERTU and prior to each dose, and as clinically indicated. Based on the severity of neutropenia, ENHERTU may require dose interruption or reduction. For Grade 3 neutropenia (Absolute Neutrophil Count [ANC] <1.0 to 0.5 x 109/L) interrupt ENHERTU until resolved to Grade 2 or less, then maintain dose. For Grade 4 neutropenia (ANC <0.5 x 109/L) interrupt ENHERTU until resolved to Grade 2 or less. Reduce dose by one level. For febrile neutropenia (ANC <1.0 x 109/L and temperature >38.3ºC or a sustained temperature of ≥38ºC for more than 1 hour), interrupt ENHERTU until resolved. Reduce dose by one level.

Left Ventricular Dysfunction

Patients treated with ENHERTU may be at increased risk of developing left ventricular dysfunction. Left ventricular ejection fraction (LVEF) decrease has been observed with anti-HER2 therapies, including ENHERTU. In the 234 patients with unresectable or metastatic HER2-positive breast cancer who received ENHERTU, two cases (0.9%) of asymptomatic LVEF decrease were reported. Treatment with ENHERTU has not been studied in patients with a history of clinically significant cardiac disease or LVEF <50% prior to initiation of treatment.

Assess LVEF prior to initiation of ENHERTU and at regular intervals during treatment as clinically indicated. Manage LVEF decrease through treatment interruption. Permanently discontinue ENHERTU if LVEF of <40% or absolute decrease from baseline of >20% is confirmed. When LVEF is >45% and absolute decrease from baseline is 10-20%, continue treatment with ENHERTU. When LVEF is 40-45% and absolute decrease from baseline is <10%, continue treatment with ENHERTU and repeat LVEF assessment within 3 weeks. When LVEF is 40-45% and absolute decrease from baseline is 10-20%, interrupt ENHERTU and repeat LVEF assessment within 3 weeks. If LVEF has not recovered to within 10% from baseline, permanently discontinue ENHERTU. If LVEF recovers to within 10% from baseline, resume treatment with ENHERTU at the same dose. When LVEF is <40% or absolute decrease from baseline is >20%, interrupt ENHERTU and repeat LVEF assessment within 3 weeks. If LVEF of <40% or absolute decrease from baseline of >20% is confirmed, permanently discontinue ENHERTU. Permanently discontinue ENHERTU in patients with symptomatic congestive heart failure.

Embryo-Fetal Toxicity

ENHERTU can cause fetal harm when administered to a pregnant woman. Advise patients of the potential risks to a fetus. Verify the pregnancy status of females of reproductive potential prior to the initiation of ENHERTU. Advise females of reproductive potential to use effective contraception during treatment and for at least 7 months following the last dose of ENHERTU. Advise male patients with female partners of reproductive potential to use effective contraception during treatment with ENHERTU and for at least 4 months after the last dose of ENHERTU.

Adverse Reactions

The safety of ENHERTU was evaluated in a pooled analysis of 234 patients with unresectable or metastatic HER2-positive breast cancer who received at least one dose of ENHERTU 5.4 mg/kg in DESTINY-Breast01 and Study DS8201-A-J101. ENHERTU was administered by intravenous infusion once every three weeks. The median duration of treatment was 7 months (range: 0.7 to 31).

Serious adverse reactions occurred in 20% of patients receiving ENHERTU. Serious adverse reactions in >1% of patients who received ENHERTU were interstitial lung disease, pneumonia, vomiting, nausea, cellulitis, hypokalemia, and intestinal obstruction. Fatalities due to adverse reactions occurred in 4.3% of patients including interstitial lung disease (2.6%), and the following events occurred in one patient each (0.4%): acute hepatic failure/acute kidney injury, general physical health deterioration, pneumonia, and hemorrhagic shock.

ENHERTU was permanently discontinued in 9% of patients, of which ILD accounted for 6%. Dose interruptions due to adverse reactions occurred in 33% of patients treated with ENHERTU. The most frequent adverse reactions (>2%) associated with dose interruption were neutropenia, anemia, thrombocytopenia, leukopenia, upper respiratory tract infection, fatigue, nausea, and ILD. Dose reductions occurred in 18% of patients treated with ENHERTU. The most frequent adverse reactions (>2%) associated with dose reduction were fatigue, nausea, and neutropenia.

The most common adverse reactions (frequency ≥20%) were nausea (79%), fatigue (59%), vomiting (47%), alopecia (46%), constipation (35%), decreased appetite (32%), anemia (31%), neutropenia (29%), diarrhea (29%), leukopenia (22%), cough (20%), and thrombocytopenia (20%).

Use in Specific Populations

  • Pregnancy: ENHERTU can cause fetal harm when administered to a pregnant woman. Advise patients of the potential risks to a fetus. There are clinical considerations if ENHERTU is used in pregnant women, or if a patient becomes pregnant within 7 months following the last dose of ENHERTU.
  • Lactation: There are no data regarding the presence of ENHERTU in human milk, the effects on the breastfed child, or the effects on milk production. Because of the potential for serious adverse reactions in a breastfed child, advise women not to breastfeed during treatment with ENHERTU and for 7 months after the last dose.
  • Females and Males of Reproductive Potential: Pregnancy testing: Verify pregnancy status of females of reproductive potential prior to initiation of ENHERTU. Contraception: Females: ENHERTU can cause fetal harm when administered to a pregnant woman. Advise females of reproductive potential to use effective contraception during treatment with ENHERTU and for at least 7 months following the last dose. Males: Advise male patients with female partners of reproductive potential to use effective contraception during treatment with ENHERTU and for at least 4 months following the last dose. Infertility: ENHERTU may impair male reproductive function and fertility.
  • Pediatric Use: Safety and effectiveness of ENHERTU have not been established in pediatric patients.
  • Geriatric Use: Of the 234 patients with HER2-positive breast cancer treated with ENHERTU 5.4 mg/kg, 26% were ≥65 years and 5% were ≥75 years. No overall differences in efficacy were observed between patients ≥65 years of age compared to younger patients. There was a higher incidence of Grade 3-4 adverse reactions observed in patients aged ≥65 years (53%) as compared to younger patients (42%).
  • Hepatic Impairment: In patients with moderate hepatic impairment, due to potentially increased exposure, closely monitor for increased toxicities related to the topoisomerase inhibitor.

To report SUSPECTED ADVERSE REACTIONS, contact Daiichi Sankyo, Inc. at 1-877-437-7763 or FDA at 1-800-FDA-1088 or fda.gov/medwatch.

Please see accompanying full Prescribing Information, including Boxed WARNINGS, and Medication Guide.

Notes

HER2-positive breast cancer

In women, breast cancer is the most common cancer and one of the most common causes of cancer mortality worldwide; there were an estimated 2.1 million new cases of female breast cancer diagnosed in 2018.3,4 Breast cancer occurs mainly in women, but in rare cases it occurs in men too.5

HER2 is a tyrosine kinase receptor growth-promoting protein expressed on the surface of many types of tumors, including gastric, breast and lung cancers. HER2 overexpression is associated with a specific HER2 gene alteration known as HER2 amplification and is often associated with aggressive disease and poorer prognosis.6 Approximately one in five patients with breast cancer are considered HER2 positive.2

DESTINY-Breast01

DESTINY-Breast01 is a pivotal Phase II, single-arm, open-label, global, multicenter, two-part trial evaluating the safety and efficacy of ENHERTU in patients with HER2-positive unresectable and/or metastatic breast cancer previously treated with trastuzumab emtansine. The primary endpoint of the trial is ORR, as determined by ICR. Secondary objectives include DoR, disease control rate, clinical benefit rate, PFS and OS.

ENHERTU

ENHERTU (fam-trastuzumab deruxtecan-nxki) is a HER2-directed antibody drug conjugate (ADC). ENHERTU is the lead ADC in the oncology portfolio of Daiichi Sankyo and the most advanced program in AstraZeneca’s ADC scientific platform.

ADCs are targeted cancer medicines that deliver cytotoxic chemotherapy (“payload”) to cancer cells via a linker attached to a monoclonal antibody that binds to a specific target expressed on cancer cells. ENHERTU is comprised of a HER2 monoclonal antibody attached to a topoisomerase I inhibitor payload by a tetrapeptide-based linker.

ENHERTU (5.4mg/kg) is approved in the US and Japan for the treatment of adult patients with unresectable or metastatic HER2-positive breast cancer who have received two or more prior anti-HER2 based regimens in the metastatic setting based on the DESTINY-Breast01 trial. ENHERTU(6.4mg/kg) is approved in Japan for patients with HER2-positive unresectable advanced or recurrent gastric cancer that progressed after chemotherapy.

ENHERTUclinical development

A comprehensive development program is underway globally, with nine registrational trials evaluating the efficacy and safety of trastuzumab deruxtecan monotherapy across multiple HER2 cancers, including breast, gastric and lung cancers. Trials in combination with other anticancer treatments, such as immunotherapy, are also underway.

In October 2020, ENHERTUwas granted Priority Review from the US Food and Drug Administration for the treatment of patients with HER2-positive metastatic gastric or gastroesophageal junction (GEJ) adenocarcinoma. In May 2020, ENHERTUreceived a Breakthrough Therapy Designation (BTD) and Orphan Drug Designation (ODD) for gastric cancer, including GEJ adenocarcinoma.

In July 2020, The European Medicines Agency’s Committee for Medicinal Products for Human Use granted accelerated assessment for the treatment of adults with unresectable or metastatic HER2 positive breast cancer who have received two or more prior anti-HER2 based regimens.

In May 2020, ENHERTU also received a BTD for the treatment of patients with metastatic non-small cell lung cancer whose tumors have a HER2 mutation and with disease progression on or after platinum-based therapy. ENHERTU is not approved in the US for gastric or lung cancer.

Collaboration between AstraZeneca and Daiichi Sankyo

AstraZeneca and Daiichi Sankyo entered into a global collaboration to jointly develop and commercialize fam-trastuzumab deruxtecan-nxki (a HER2-directed ADC) in March 2019, and datopotamab deruxtecan (DS-1062; a TROP2-directed ADC) in July 2020, except in Japan where Daiichi Sankyo maintains exclusive rights. Daiichi Sankyo is responsible for manufacturing and supply of fam-trastuzumab deruxtecan-nxki and datopotamab deruxtecan.

AstraZeneca in breast cancer

Driven by a growing understanding of breast cancer biology, AstraZeneca is starting to challenge, and redefine, the current clinical paradigm for how breast cancer is classified and treated to deliver even more effective treatments to patients in need – with the bold ambition to one day eliminate breast cancer as a cause of death.

AstraZeneca has a comprehensive portfolio of approved and promising compounds in development that leverage different mechanisms of action to address the biologically diverse breast cancer tumor environment. AstraZeneca aims to continue to transform outcomes for HR-positive breast cancer with foundational medicines fulvestrant and goserelin and the next-generation SERD and potential new medicine AZD9833. PARP inhibitor, olaparib is a targeted treatment option for metastatic breast cancer patients with an inherited BRCA mutation. AstraZeneca with MSD (Merck & Co., Inc. in the US and Canada) continue to research olaparib in metastatic breast cancer patients with an inherited BRCA mutation, and are exploring new opportunities to treat these patients earlier in their disease state. Building on the first approval of ENHERTU, a HER2-directed antibody-drug conjugate, in previously treated HER2-positive metastatic breast cancer, AstraZeneca and Daiichi Sankyo are exploring its potential in earlier lines of treatment and in new breast cancer settings. To bring much needed treatment options to patients with triple-negative breast cancer, an aggressive form of breast cancer, AstraZeneca is testing immunotherapy durvalumab in combination with other oncology medicines, including olaparib and ENHERTU, investigating the potential of AKT kinase inhibitor, capivasertib, in combination with chemotherapy, and collaborating with Daiichi Sankyo to explore the potential of TROP2-directed ADC, datopotamab deruxtecan (DS-1062).

AstraZeneca in oncology

AstraZeneca has a deep-rooted heritage in oncology and offers a quickly growing portfolio of new medicines that has the potential to transform patients’ lives and the Company’s future. With seven new medicines launched between 2014 and 2020, and a broad pipeline of small molecules and biologics in development, the Company is committed to advance oncology as a key growth driver for AstraZeneca focused on lung, ovarian, breast and blood cancers.

By harnessing the power of four scientific platforms – Immuno-Oncology, Tumor Drivers and Resistance, DNA Damage Response and Antibody Drug Conjugates – and by championing the development of personalized combinations, AstraZeneca has the vision to redefine cancer treatment and, one day, eliminate cancer as a cause of death.

AstraZeneca

AstraZeneca is a global, science-led biopharmaceutical company that focuses on the discovery, development and commercialization of prescription medicines, primarily for the treatment of diseases in three therapy areas – Oncology, Cardiovascular, Renal & Metabolism and Respiratory & Immunology. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide. For more information, please visit www.astrazeneca-us.com and follow us on Twitter @AstraZenecaUS.

References

  1. Tandon A, et al. HER-2/neu oncogene protein and prognosis in breast cancer. J Clin Oncol. 1989;7(8):1120-8.
  2. Mitri Z, et al. The HER2 Receptor in Breast Cancer: Pathophysiology, Clinical Use, and New Advances in Therapy. Chemother ResPrac. 2012 (743193).
  3. GLOBOCAN 2018. Breast Cancer Fact Sheet. World Health Organization. Accessed: December 2020.
  4. IARC WHO 2018. Latest global cancer data. Accessed: December 2020
  5. Yalaza, M., Inan, A., & Bozer, M. Male Breast Cancer. Eur J Breast Health. 2016;12(1), 1–8.
  6. Iqbal N, et al. Human Epidermal Growth Factor Receptor 2 (HER2) in Cancers: Overexpression and Therapeutic Implications. Mol Biol Int. 2014;852748.

Dr. Modi has provided consulting/advisory services for Daiichi Sankyo.

US-48296 | 12/20

Media Inquiries

Michele Meixell +1 302 885 2677

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Ciena Reports Fiscal Fourth Quarter 2020 and Year-End Financial Results

Ciena Reports Fiscal Fourth Quarter 2020 and Year-End Financial Results

HANOVER, Md.–(BUSINESS WIRE)–Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal fourth quarter and year ended October 31, 2020.

  • Q4 Revenue: $828.5 million
  • Q4 Net Income per Share: $0.42 GAAP; $0.60 adjusted (non-GAAP), increasing 3.4% year over year
  • Share Repurchases: Reinstituting share repurchase program with the intent to resume purchases in the first quarter of 2021

“Our fiscal fourth quarter and full-year 2020 performance reported today demonstrates that we have the innovation, diversification and global scale to perform well in a challenging environment,” said Gary Smith, President and CEO, Ciena. “While we expect current market conditions to persist in the near-term, we are confident in strong secular demand dynamics and our ability to continue to outperform the market.”

For the fiscal fourth quarter 2020, Ciena reported revenue of $828.5 million as compared to $968.0 million for the fiscal fourth quarter 2019. For fiscal year 2020, Ciena reported revenue of $3.53 billion, as compared to $3.57 billion for fiscal year 2019.

Ciena’s GAAP net income for the fiscal fourth quarter 2020 was $65.0 million or $0.42 per diluted common share, which compares to a GAAP net income of $80.3 million, or $0.51 per diluted common share, for the fiscal fourth quarter 2019. For fiscal year 2020, Ciena’s GAAP net income was $361.3 million, or $2.32 per diluted common share, as compared to a GAAP net income of $253.4 million, or $1.61 per diluted common share for fiscal year 2019.

Ciena’s adjusted (non-GAAP) net income for the fiscal fourth quarter 2020 was $94.5 million, or $0.60 per diluted common share, which compares to an adjusted (non-GAAP) net income of $90.4 million, or $0.58 per diluted common share, for the fiscal fourth quarter 2019. For fiscal year 2020, Ciena’s adjusted (non-GAAP) net income was $460.1 million, or $2.95 per diluted common share, as compared to an adjusted (non-GAAP) net income of $331.8 million, or $2.11 per diluted common share for fiscal year 2019.

Performance Summary for the Fiscal Fourth Quarter and the Year Ended October 31, 2020

The tables below (in millions, except percentage data) provide comparisons of certain quarterly and annual results to the prior year. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.

 

 

GAAP Results (unaudited)

 

 

Quarter Ended

 

Period

Change

 

Year Ended

 

Period

Change

 

 

October 31,

2020

 

November 2,

2019

 

Y-T-Y*

 

October 31,

2020

 

November 2,

2019

 

Y-T-Y*

Revenue

 

$

828.5

 

 

$

968.0

 

 

(14.4

)%

 

$

3,532.2

 

 

$

3,572.1

 

 

(1.1

)%

Gross margin

 

48.8

%

 

43.4

%

 

5.4

%

 

46.8

%

 

43.2

%

 

3.6

%

Operating expense

 

$

310.9

 

 

$

326.5

 

 

(4.8

)%

 

$

1,165.9

 

 

$

1,195.3

 

 

(2.5

)%

Operating margin

 

11.3

%

 

9.6

%

 

1.7

%

 

13.8

%

 

9.7

%

 

4.1

%

 

 

 

Non-GAAP Results (unaudited)

 

 

Quarter Ended

 

Period

Change

 

Year Ended

 

Period

Change

 

 

October 31,

2020

 

November 2,

2019

 

Y-T-Y*

 

October 31,

2020

 

November 2,

2019

 

Y-T-Y*

Revenue

 

$

828.5

 

 

$

968.0

 

 

(14.4

)%

 

$

3,532.2

 

 

$

3,572.1

 

 

(1.1

)%

Adj. gross margin

 

49.5

%

 

43.8

%

 

5.7

%

 

47.4

%

 

43.7

%

 

3.7

%

Adj. operating expense

 

$

278.9

 

 

$

295.3

 

 

(5.6

)%

 

$

1,055.3

 

 

$

1,091.8

 

 

(3.3

)%

Adj. operating margin

 

15.8

%

 

13.3

%

 

2.5

%

 

17.6

%

 

13.1

%

 

4.5

%

Adj. EBITDA

 

$

154.5

 

 

$

151.6

 

 

1.9

%

 

$

713.9

 

 

$

557.3

 

 

28.1

%

 

* Denotes % change, or in the case of margin, absolute change

 

 

Revenue by Segment (unaudited)

 

 

Quarter Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

Revenue

 

%**

 

Revenue

 

% **

Networking Platforms

 

 

 

 

 

 

 

 

Converged Packet Optical

 

$

579.3

 

 

69.9

 

 

$

665.8

 

 

68.8

 

Packet Networking

 

$

56.0

 

 

6.8

 

 

131.9

 

 

13.6

 

Total Networking Platforms

 

$

635.3

 

 

76.7

 

 

797.7

 

 

82.4

 

 

 

 

 

 

 

 

 

 

Platform Software and Services

 

$

54.5

 

 

6.6

 

 

41.2

 

 

4.3

 

 

 

 

 

 

 

 

 

 

Blue Planet Automation Software and Services

 

$

20.9

 

 

2.5

 

 

16.6

 

 

1.7

 

 

 

 

 

 

 

 

 

 

Global Services

 

 

 

 

 

 

 

 

Maintenance Support and Training

 

$

67.0

 

 

8.1

 

 

65.3

 

 

6.7

 

Installation and Deployment

 

$

43.0

 

 

5.2

 

 

36.5

 

 

3.8

 

Consulting and Network Design

 

$

7.8

 

 

0.9

 

 

10.7

 

 

1.1

 

Total Global Services

 

$

117.8

 

 

14.2

 

 

112.5

 

 

11.6

 

 

 

 

 

 

 

 

 

 

Total

 

$

828.5

 

 

100.0

 

 

$

968.0

 

 

100.0

 

 

 

 

Revenue by Segment (unaudited)

 

 

Year Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

Revenue

 

%**

 

Revenue

 

% **

Networking Platforms

 

 

 

 

 

 

 

 

Converged Packet Optical

 

$

2,547.6

 

 

72.1

 

 

$

2,562.8

 

 

71.8

 

Packet Networking

 

267.5

 

 

7.6

 

 

348.5

 

 

9.8

 

Total Networking Platforms

 

2,815.1

 

 

79.7

 

 

2,911.3

 

 

81.6

 

 

 

 

 

 

 

 

 

 

Platform Software and Services

 

197.8

 

 

5.6

 

 

155.3

 

 

4.3

 

 

 

 

 

 

 

 

 

 

Blue Planet Automation Software and Services

 

62.6

 

 

1.8

 

 

54.6

 

 

1.5

 

 

 

 

 

 

 

 

 

 

Global Services

 

 

 

 

 

 

 

 

Maintenance Support and Training

 

269.4

 

 

7.6

 

 

261.3

 

 

7.3

 

Installation and Deployment

 

152.0

 

 

4.3

 

 

148.2

 

 

4.1

 

Consulting and Network Design

 

35.3

 

 

1.0

 

 

41.4

 

 

1.2

 

Total Global Services

 

456.7

 

 

12.9

 

 

450.9

 

 

12.6

 

 

 

 

 

 

 

 

 

 

Total

 

$

3,532.2

 

 

100.0

 

 

$

3,572.1

 

 

100.0

 

Additional Performance Metrics for Fiscal Fourth Quarter and Year Ended October 31, 2020

 

 

Revenue by Geographic Region (unaudited)

 

 

Quarter Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

Revenue

 

% **

 

Revenue

 

% **

Americas

 

$

531.6

 

 

64.2

 

 

$

715.7

 

 

73.9

 

Europe, Middle East and Africa

 

157.6

 

 

19.0

 

 

153.0

 

 

15.8

 

Asia Pacific

 

139.3

 

 

16.8

 

 

99.3

 

 

10.3

 

Total

 

$

828.5

 

 

100.0

 

 

$

968.0

 

 

100.0

 

 

 

Revenue by Geographic Region (unaudited)

 

 

Year Ended

 

 

October 31, 2020

 

November 2, 2019

 

 

Revenue

 

% **

 

Revenue

 

% **

Americas

 

$

2,469.3

 

 

69.9

 

 

$

2,503.9

 

 

70.1

 

Europe, Middle East and Africa

 

591.5

 

 

16.8

 

 

566.7

 

 

15.9

 

Asia Pacific

 

471.4

 

 

13.3

 

 

501.5

 

 

14.0

 

Total

 

$

3,532.2

 

 

100.0

 

 

$

3,572.1

 

 

100.0

 

 

** Denotes % of total revenue

  • No customer represented more than 10% of revenue for the fiscal quarter
  • One 10%-plus customer represented a total of 10.6% of revenue for the fiscal year
  • Cash and investments totaled $1.3 billion
  • Cash flow from operations totaled $187.3 million and $493.7 million for the fiscal quarter and year, respectively
  • Average days’ sales outstanding (DSOs) were 88 and 82 for the fiscal quarter and year, respectively
  • Accounts receivable, net balance was $719.4 million
  • Unbilled contract asset balance was $85.8 million
  • Inventories totaled $344.4 million, including:

    • Raw materials: $119.5 million
    • Work in process: $13.7 million
    • Finished goods: $210.1 million
    • Deferred cost of sales: $40.7 million
    • Reserve for excess and obsolescence: $(39.6) million
  • Product inventory turns were 4.0 and 4.6 for the fiscal quarter and year, respectively
  • Headcount totaled 7,032

Share Repurchase Program

After temporarily suspending repurchases of our common stock during fiscal 2020, we will be reinstituting this program in first quarter of 2021 and are currently targeting repurchases in the range of $150 million during fiscal 2021. Ciena may purchase shares at management’s discretion in the open market, in privately negotiated transactions, in transactions structured through investment banking institutions, or a combination of the foregoing. Ciena may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The amount and timing of repurchases are subject to a variety of factors including liquidity, cash flow, stock price, and general business and market conditions. The program may be modified, suspended or discontinued at any time. During fiscal year 2020, Ciena repurchased approximately 1.9 million shares of its common stock at an average price of $39.81 per share for an aggregate purchase price of $74.5 million.

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Fourth Quarter 2020 Results

Today, Thursday, December 10, 2020, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal fourth quarter and fiscal 2020 results.

Ciena’s management will also host a discussion today with investors and financial analysts that will include the Company’s outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena’s website.

Notes to Investors

Forward-Looking Statements.You are encouraged to review the Investors section of our website, where we routinely post press releases, SEC filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena’s expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words. Forward-looking statements in this release include: “Our fiscal fourth quarter and full-year year 2020 performance reported today demonstrates that we have the innovation, diversification and global scale to perform well in a challenging environment.” “While we expect current market conditions to persist in the near-term, we are confident in strong secular demand dynamics and our ability to continue to outperform the market.”

Ciena’s actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena’s business, including: the effect of broader economic and market conditions on our customers and their business; our ability to execute our business and growth strategies; the duration and severity of the COVID-19 pandemic and the impact of countermeasures taken to mitigate its spread; the impact of COVID-19 on macroeconomic conditions, the level of economic activity, demand for our technology solutions, short- and long-term customer or end user needs and changes thereto, continuity of supply chain, logistics and business operations, liquidity and financial results; changes in network spending or network strategy by customers; seasonality and the timing and size of customer orders, including our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; supply chain disruptions and the level of success relating to efforts to optimize Ciena’s operations; changes in foreign currency exchange rates affecting revenue and operating expense; the impact of the Tax Cuts and Jobs Act, changes in estimates of prospective income tax rates and any adjustments to Ciena’s provisional estimates whether related to further guidance, analysis or otherwise, and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q filed with the SEC on September 9, 2020 and its Annual Report on Form 10-K to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release.

Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena’s gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena’s business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena’s control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena’s GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena’s non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena’s results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release for the relevant period, Appendix A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

About Ciena. Ciena (NYSE: CIEN) is a networking systems, services and software company. We provide solutions that help our clients create the Adaptive Network™ in response to the constantly changing demands of their users. By delivering best-in-class networking technology through high-touch consultative relationships, we build the world’s most agile networks with automation, openness and scale. For updates on Ciena, follow us on Twitter @Ciena, LinkedIn, the Ciena Insights blog, or visit www.ciena.com.

CIENA CORPORATION

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

 

 

Quarter Ended

 

Year Ended

 

 

October 31,

2020

 

November 2,

2019

 

October 31,

2020

 

November 2,

2019

Revenue:

 

 

 

 

 

 

 

 

Products

 

$

668,661

 

 

$

820,007

 

 

$

2,914,790

 

 

$

2,983,815

 

Services

 

159,819

 

 

147,980

 

 

617,367

 

 

588,316

 

Total revenue

 

828,480

 

 

967,987

 

 

3,532,157

 

 

3,572,131

 

Cost of goods sold:

 

 

 

 

 

 

 

 

Products

 

343,413

 

 

469,945

 

 

1,573,791

 

 

1,716,358

 

Services

 

80,718

 

 

78,346

 

 

305,475

 

 

313,707

 

Total cost of goods sold

 

424,131

 

 

548,291

 

 

1,879,266

 

 

2,030,065

 

Gross profit

 

404,349

 

 

419,696

 

 

1,652,891

 

 

1,542,066

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

137,237

 

 

141,657

 

 

529,888

 

 

548,139

 

Selling and marketing

 

113,382

 

 

117,201

 

 

416,425

 

 

423,046

 

General and administrative

 

43,415

 

 

50,307

 

 

169,548

 

 

174,399

 

Amortization of intangible assets

 

5,851

 

 

5,222

 

 

23,383

 

 

21,808

 

Acquisition and integration costs (recoveries)

 

3,127

 

 

(735

)

 

4,031

 

 

3,370

 

Significant asset impairments and restructuring costs

 

7,854

 

 

12,842

 

 

22,652

 

 

24,538

 

Total operating expenses

 

310,866

 

 

326,494

 

 

1,165,927

 

 

1,195,300

 

Income from operations

 

93,483

 

 

93,202

 

 

486,964

 

 

346,766

 

Interest and other income (loss), net

 

(249

)

 

(1,183

)

 

964

 

 

3,876

 

Interest expense

 

(7,395

)

 

(9,136

)

 

(31,321

)

 

(37,452

)

Loss on extinguishment and modification of debt

 

 

 

 

 

(646

)

 

 

Income before income taxes

 

85,839

 

 

82,883

 

 

455,961

 

 

313,190

 

Provision for income taxes

 

20,798

 

 

2,552

 

 

94,670

 

 

59,756

 

Net income

 

$

65,041

 

 

$

80,331

 

 

$

361,291

 

 

$

253,434

 

 

 

 

 

 

 

 

 

 

Net Income per Common Share

 

 

 

 

 

 

 

 

Basic net income per common share

 

$

0.42

 

 

$

0.52

 

 

$

2.34

 

 

$

1.63

 

Diluted net income per potential common share

 

$

0.42

 

 

$

0.51

 

 

$

2.32

 

 

$

1.61

 

 

 

 

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

154,706

 

 

154,852

 

 

154,287

 

 

155,720

 

Weighted average diluted potential common shares outstanding(1)

 

156,563

 

 

156,612

 

 

155,955

 

 

157,612

 

(1) Weighted average diluted potential common shares outstanding used in calculating GAAP diluted net income per potential common share for the fourth quarter of fiscal 2020 includes 1.9 million shares underlying certain stock option and stock unit awards.

 

Weighted average diluted potential common shares outstanding used in calculating GAAP diluted net income per potential common share for fiscal 2020 includes 1.7 million shares underlying certain stock option and stock unit awards.

 

Weighted average diluted potential common shares outstanding used in calculating GAAP diluted net income per potential common share for the fourth quarter of fiscal 2019 includes 1.8 million shares underlying certain stock option and stock unit awards.

 

Weighted average diluted potential common shares outstanding used in calculating GAAP diluted net income per potential common share for fiscal 2019 includes 1.9 million shares underlying certain stock option and stock unit awards.

CIENA CORPORATION

CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

 

 

October 31,

2020

 

November 2,

2019

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,088,624

 

 

$

904,045

 

Short-term investments

 

150,667

 

 

109,940

 

Accounts receivable, net

 

719,405

 

 

724,854

 

Inventories

 

344,379

 

 

345,049

 

Prepaid expenses and other

 

308,084

 

 

297,914

 

Total current assets

 

2,611,159

 

 

2,381,802

 

Long-term investments

 

82,226

 

 

10,014

 

Equipment, building, furniture and fixtures, net

 

272,377

 

 

286,884

 

Operating lease right-of-use assets

 

57,026

 

 

 

Goodwill

 

310,847

 

 

297,937

 

Other intangible assets, net

 

96,647

 

 

112,781

 

Deferred tax asset, net

 

647,805

 

 

714,942

 

Other long-term assets

 

102,830

 

 

88,986

 

Total assets

 

$

4,180,917

 

 

$

3,893,346

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

291,904

 

 

$

344,819

 

Accrued liabilities and other short-term obligations

 

334,132

 

 

382,740

 

Deferred revenue

 

108,700

 

 

111,381

 

Operating lease liabilities

 

19,035

 

 

 

Current portion of long-term debt

 

6,930

 

 

7,000

 

Total current liabilities

 

760,701

 

 

845,940

 

Long-term deferred revenue

 

49,663

 

 

45,492

 

Other long-term obligations

 

123,185

 

 

148,747

 

Long-term operating lease liabilities

 

61,415

 

 

 

Long-term debt, net

 

676,356

 

 

680,406

 

Total liabilities

 

$

1,671,320

 

 

$

1,720,585

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Preferred stock — par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding

 

 

 

 

Common stock — par value $0.01; 290,000,000 shares authorized; 154,563,005 and 154,403,850 shares issued and outstanding

 

1,546

 

 

1,544

 

Additional paid-in capital

 

6,826,531

 

 

6,837,714

 

Accumulated other comprehensive loss

 

(35,358

)

 

(22,084

)

Accumulated deficit

 

(4,283,122

)

 

(4,644,413

)

Total stockholders’ equity

 

2,509,597

 

 

2,172,761

 

Total liabilities and stockholders’ equity

 

$

4,180,917

 

 

$

3,893,346

 

CIENA CORPORATION

CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Year Ended

 

 

October 31,

2020

 

November 2,

2019

Cash flows from operating activities:

 

 

 

 

Net income

 

$

361,291

 

 

$

253,434

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation of equipment, furniture and fixtures, and amortization of leasehold improvements

 

93,908

 

 

87,576

 

Share-based compensation costs

 

67,758

 

 

59,736

 

Amortization of intangible assets

 

38,619

 

 

35,136

 

Deferred taxes

 

64,339

 

 

19,865

 

Provision for doubtful accounts

 

8,855

 

 

6,740

 

Provision for inventory excess and obsolescence

 

24,701

 

 

28,085

 

Provision for warranty

 

22,417

 

 

23,105

 

Other

 

11,628

 

 

(910

)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

(17,299

)

 

65,712

 

Inventories

 

(25,044

)

 

(112,941

)

Prepaid expenses and other

 

(38,998

)

 

(96,618

)

Operating lease right-of-use assets

 

16,787

 

 

 

Accounts payable, accruals and other obligations

 

(117,931

)

 

27,740

 

Deferred revenue

 

2,519

 

 

16,480

 

Short and long-term operating lease liabilities

 

(19,896

)

 

 

Net cash provided by operating activities

 

493,654

 

 

413,140

 

Cash flows provided by (used in) investing activities:

 

 

 

 

Payments for equipment, furniture, fixtures and intellectual property

 

(82,667

)

 

(62,579

)

Purchase of available for sale securities

 

(223,196

)

 

(158,074

)

Proceeds from maturities of available for sale securities

 

110,390

 

 

248,748

 

Settlement of foreign currency forward contracts, net

 

3,531

 

 

(1,351

)

Purchase of equity investment

 

 

 

(2,667

)

Acquisition of businesses, net of cash acquired

 

(28,300

)

 

 

Net cash provided by (used in) investing activities

 

(220,242

)

 

24,077

 

Cash flows from financing activities:

 

 

 

 

Payment of long-term debt

 

(5,198

)

 

(7,000

)

Payment for debt conversion liability

 

 

 

(111,268

)

Payment of debt issuance costs

 

(382

)

 

(1,191

)

Payment of finance lease obligations

 

(2,703

)

 

(3,319

)

Shares repurchased for tax withholdings on vesting of restricted stock units

 

(32,472

)

 

(29,059

)

Repurchases of common stock – repurchase program

 

(74,535

)

 

(150,076

)

Proceeds from issuance of common stock

 

28,068

 

 

22,947

 

Net cash used in financing activities

 

(87,222

)

 

(278,966

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(1,643

)

 

476

 

Net increase in cash, cash equivalents and restricted cash

 

184,547

 

 

158,727

 

Cash, cash equivalents and restricted cash at beginning of fiscal year

 

904,161

 

 

745,434

 

Cash, cash equivalents and restricted cash at end of fiscal year

 

$

1,088,708

 

 

$

904,161

 

Supplemental disclosure of cash flow information

 

 

 

 

Cash paid during the fiscal year for interest

 

$

32,837

 

 

$

39,579

 

Cash paid during the fiscal year for income taxes, net

 

$

53,076

 

 

$

33,570

 

Operating lease payments

 

$

22,089

 

 

$

 

Non-cash investing and financing activities

 

 

 

 

Purchase of equipment in accounts payable

 

$

7,854

 

 

$

16,549

 

Conversion of debt conversion liability into 1,585,140 shares of common stock

 

$

 

 

$

52,944

 

Operating lease right-of-use assets subject to lease liability

 

$

24,160

 

 

$

 

Unrealized gain on equity investment

 

$

2,681

 

 

$

 

APPENDIX A – Reconciliation of Adjusted (Non-GAAP) Measurements (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Year Ended

 

 

October 31,

2020

 

November 2,

2019

 

October 31,

2020

 

November 2,

2019

Gross Profit Reconciliation (GAAP/non-GAAP)

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

404,349

 

 

$

419,696

 

 

$

1,652,891

 

 

$

1,542,066

 

Share-based compensation-products

 

724

 

 

748

 

 

3,182

 

 

2,868

 

Share-based compensation-services

 

968

 

 

715

 

 

3,853

 

 

3,175

 

Amortization of intangible assets

 

3,732

 

 

3,303

 

 

15,235

 

 

13,327

 

Total adjustments related to gross profit

 

5,424

 

 

4,766

 

 

22,270

 

 

19,370

 

Adjusted (non-GAAP) gross profit

 

$

409,773

 

 

$

424,462

 

 

$

1,675,161

 

 

$

1,561,436

 

Adjusted (non-GAAP) gross profit percentage

 

49.5

%

 

43.8

%

 

47.4

%

 

43.7

%

 

 

 

 

 

 

 

 

 

Operating Expense Reconciliation (GAAP/non-GAAP)

 

 

 

 

 

 

 

 

GAAP operating expense

 

$

310,866

 

 

$

326,494

 

 

$

1,165,927

 

 

$

1,195,300

 

Share-based compensation-research and development

 

4,030

 

 

3,287

 

 

16,987

 

 

14,321

 

Share-based compensation-sales and marketing

 

5,137

 

 

4,151

 

 

20,194

 

 

16,474

 

Share-based compensation-general and administrative

 

5,982

 

 

6,425

 

 

23,424

 

 

22,841

 

Amortization of intangible assets

 

5,851

 

 

5,222

 

 

23,383

 

 

21,808

 

Acquisition and integration costs (recoveries)

 

3,127

 

 

(735

)

 

4,031

 

 

3,370

 

Significant asset impairments and restructuring costs

 

7,854

 

 

12,842

 

 

22,652

 

 

24,538

 

Legal settlements

 

 

 

 

 

 

 

137

 

Total adjustments related to operating expense

 

$

31,981

 

 

$

31,192

 

 

$

110,671

 

 

$

103,489

 

Adjusted (non-GAAP) operating expense

 

$

278,885

 

 

$

295,302

 

 

$

1,055,256

 

 

$

1,091,811

 

 

 

 

 

 

 

 

 

 

Income from Operations Reconciliation (GAAP/non-GAAP)

 

 

 

 

 

 

 

 

GAAP income from operations

 

$

93,483

 

 

$

93,202

 

 

$

486,964

 

 

$

346,766

 

Total adjustments related to gross profit

 

5,424

 

 

4,766

 

 

22,270

 

 

19,370

 

Total adjustments related to operating expense

 

31,981

 

 

31,192

 

 

110,671

 

 

103,489

 

Total adjustments related to income from operations

 

37,405

 

 

35,958

 

 

132,941

 

 

122,859

 

Adjusted (non-GAAP) income from operations

 

$

130,888

 

 

$

129,160

 

 

$

619,905

 

 

$

469,625

 

Adjusted (non-GAAP) operating margin percentage

 

15.8

%

 

13.3

%

 

17.6

%

 

13.1

%

Net Income Reconciliation (GAAP/non-GAAP)

 

 

 

 

 

 

 

 

GAAP net income

 

$

65,041

 

 

$

80,331

 

 

$

361,291

 

 

$

253,434

 

Exclude GAAP provision for income taxes

 

20,798

 

 

2,552

 

 

94,670

 

 

59,756

 

Income before income taxes

 

85,839

 

 

82,883

 

 

455,961

 

 

313,190

 

Total adjustments related to income from operations

 

37,405

 

 

35,958

 

 

132,941

 

 

122,859

 

Loss on extinguishment and modification of debt

 

 

 

 

 

646

 

 

 

Unrealized gain on equity investment

 

(2,681

)

 

 

 

(2,681

)

 

 

Adjusted income before income taxes

 

120,563

 

 

118,841

 

 

586,867

 

 

436,049

 

Non-GAAP tax provision on adjusted income before income taxes

 

26,042

 

 

28,403

 

 

126,763

 

 

104,216

 

Adjusted (non-GAAP) net income

 

$

94,521

 

 

$

90,438

 

 

$

460,104

 

 

$

331,833

 

 

 

 

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

154,706

 

 

154,852

 

 

154,287

 

 

155,720

 

Weighted average diluted potential common shares outstanding(1)

 

156,563

 

 

156,612

 

 

155,955

 

 

157,612

 

 

 

 

 

 

 

 

 

 

Net Income per Common Share

 

 

 

 

 

 

 

 

GAAP diluted net income per potential common share

 

$

0.42

 

 

$

0.51

 

 

$

2.32

 

 

$

1.61

 

Adjusted (non-GAAP) diluted net income per potential common share

 

$

0.60

 

 

$

0.58

 

 

$

2.95

 

 

$

2.11

 

 

 

 

 

 

 

 

 

 

(1) Weighted average diluted potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the fourth quarter of fiscal 2020 includes 1.9 million shares underlying certain stock option and stock unit awards.

 

Weighted average diluted potential common shares outstanding used in calculating adjusted (non-GAAP) diluted net income per potential common share for fiscal 2020 includes 1.7 million shares underlying certain stock option and stock unit awards.

 

Weighted average diluted potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the fourth quarter of fiscal 2019 includes 1.8 million shares underlying certain stock option and stock unit awards.

 

Weighted average diluted potential common shares outstanding used in calculating adjusted (non-GAAP) diluted net income per potential common share for fiscal 2019 includes 1.9 million shares underlying certain stock option and stock unit awards.

APPENDIX B – Calculation of EBITDA and Adjusted EBITDA (unaudited)

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Year Ended

 

 

October 31,

2020

 

November 2,

2019

 

October 31,

2020

 

November 2,

2019

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

65,041

 

 

$

80,331

 

 

$

361,291

 

 

$

253,434

 

Add: Interest expense

 

7,395

 

 

9,136

 

 

31,321

 

 

37,452

 

Less: Interest and other income (loss), net

 

(249

)

 

(1,183

)

 

964

 

 

3,876

 

Add: Loss on extinguishment and modification of debt

 

 

 

 

 

(646

)

 

 

Add: Provision for income taxes

 

20,798

 

 

2,552

 

 

94,670

 

 

59,756

 

Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements

 

23,538

 

 

22,505

 

 

93,908

 

 

87,576

 

Add: Amortization of intangible assets

 

9,584

 

 

8,525

 

 

38,619

 

 

35,136

 

EBITDA

 

$

126,605

 

 

$

124,232

 

 

$

619,491

 

 

$

469,478

 

Add: Share-based compensation cost

 

16,920

 

 

15,290

 

 

67,758

 

 

59,736

 

Add: Significant asset impairments and restructuring costs

 

7,854

 

 

12,842

 

 

22,652

 

 

24,538

 

Add: Acquisition and integration costs (recoveries)

 

3,127

 

 

(735

)

 

4,031

 

 

3,370

 

Add: Legal settlement

 

 

 

 

 

 

 

137

 

Adjusted EBITDA

 

$

154,506

 

 

$

151,629

 

 

$

713,932

 

 

$

557,259

 

The adjusted (non-GAAP) measures above and their reconciliation to Ciena’s GAAP results for the periods presented reflect adjustments relating to the following items:

  • Share-based compensation – a non-cash expense incurred in accordance with share-based compensation accounting guidance.
  • Amortization of intangible assets – a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over its expected useful life.
  • Acquisition and integration costs (recoveries) consist of expenses for financial, legal and accounting advisors, severance and other employee-related costs associated with our acquisitions of DonRiver and Centina, including costs and recoveries of acquisition consideration associated with a three-year earn-out arrangement related to the DonRiver acquisition in fiscal 2018. Ciena does not believe that these costs are reflective of its ongoing operating expense following its completion of these integration activities.
  • Significant asset impairments and restructuring costs – costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities and the redesign of business processes.
  • Legal settlements – costs incurred as a result of settlements, during the first quarter of fiscal 2019.
  • Unrealized gain on equity investment – reflects a change in the carrying value of a certain cost method equity investment.
  • Non-GAAP tax provision – consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 21.6% for fiscal 2020, and 23.9% for fiscal 2019. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.

Press:

Nicole Anderson

Ciena Corporation

+1 (410) 694-5761 

[email protected]

Investors:

Gregg Lampf

Ciena Corporation

+1 (410) 694-5700

[email protected]

KEYWORDS: Maryland United States North America

INDUSTRY KEYWORDS: Software Networks Internet Data Management Consumer Electronics Technology Mobile/Wireless Security

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RingCentral Appoints Matthew Bishop as Chief Digital Officer

RingCentral Appoints Matthew Bishop as Chief Digital Officer

Formerly Corporate Vice President of Strategy and Operations for Microsoft’s Worldwide Commercial Business

BELMONT, Calif.–(BUSINESS WIRE)–RingCentral, Inc. (NYSE: RNG), a leading provider of global enterprise cloud communications, collaboration, and contact center solutions, today announced that Matthew Bishop has been appointed as Chief Digital Officer. Bishop will be responsible for ensuring that RingCentral has the very best digital strategy, real time actionable insights and processes to support the growing operational needs of its global business.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201210005300/en/

Matthew Bishop, courtesy of RingCentral

Matthew Bishop, courtesy of RingCentral

“We’re entering a new era of working from anywhere. Just as our customers transform, we must be ready to think differently and evolve as our business grows,” said Anand Eswaran, president and chief operating officer at RingCentral. “Transformation is no longer a single isolated event. It’s a series of rapid evolutions that become part of the planning and operations DNA of today’s most successful businesses. Matthew brings us the skills, experience, insights and vision to help us embrace new thinking and approaches to successfully manage our global growth.”

Bishop spent over 18 years at Microsoft, most recently as Corporate Vice President of Commercial Strategy and Operations of Microsoft’s Worldwide Commercial Business, where he was responsible for rapidly identifying opportunities to grow new business and increase usage and adoption around the world. He joined RingCentral from Core Scientific, where he served as Chief Administrative Officer after leaving Microsoft. In 2012, Bishop was made an Officer of the Order of the British Empire (OBE) by the Queen in her Birthday Honours list for voluntary work in protecting children online.

“A modern digital business isn’t just about data, technology and channels; it’s about bringing together all of those things with the right data-driven culture and the right strategy,” said Bishop. “At RingCentral, we are in the vanguard of an incredible transformation of how people work, communicate and collaborate. Our job is to be curious, to preoccupy ourselves with our customers, and combine that with amazing innovation and strong partnerships. These are exciting times.”

As Chief Digital Officer, Bishop will create and implement RingCentral’s overall digital strategy with a focus on using data and insights to enrich and enhance customer and partner engagements. The infusion of artificial intelligence will drive greater efficiency and effectiveness across the company’s go-to-market process.

About RingCentral

RingCentral, Inc. (NYSE: RNG) is a leading provider of cloud Message Video Phone™ (MVP™), customer engagement, and contact center solutions for businesses worldwide. More flexible and cost-effective than legacy on-premise PBX and video conferencing systems that it replaces, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location. RingCentral’s open platform integrates with leading third-party business applications and enables customers to easily customize business workflows. RingCentral is headquartered in Belmont, California, and has offices around the world.

© 2020 RingCentral, Inc. All rights reserved. RingCentral, Message Video Phone, MVP and the RingCentral logo are all trademarks of RingCentral, Inc.

Mariana Leventis

[email protected]

650-562-6545

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Technology Mobile/Wireless Telecommunications Audio/Video Software Networks Internet Data Management VoIP

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Matthew Bishop, courtesy of RingCentral

Moderna Announces First Participants Dosed in Phase 2/3 Study of COVID-19 Vaccine Candidate in Adolescents

Moderna Announces First Participants Dosed in Phase 2/3 Study of COVID-19 Vaccine Candidate in Adolescents

Phase 2/3 study expected to enroll 3,000 healthy participants

CAMBRIDGE, Mass.–(BUSINESS WIRE)–
Moderna Inc. (Nasdaq: MRNA), a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines to create a new generation of transformative medicines for patients, today announced that the first adolescent participants have been dosed in the Phase 2/3 study of mRNA-1273, the Company’s vaccine candidate against COVID-19, in adolescents ages 12 to less than 18. The study is being conducted in collaboration with the Biomedical Advanced Research and Development Authority (BARDA), part of the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services.

“We are pleased to begin this Phase 2/3 study of mRNA-1273 in healthy adolescents in the U.S. Our goal is to generate data in the spring of 2021 that will support the use of mRNA-1273 in adolescents in advance of the 2021 school year,” said Stéphane Bancel, Chief Executive Officer of Moderna. “We are encouraged by the interim and primary analyses of the Phase 3 COVE study in adults ages 18 and above and this adolescent study will help us assess the potential safety and immunogenicity of our COVID-19 vaccine candidate in this important younger age population. We hope we will be able to provide a safe vaccine to provide protection to adolescents so they can return to school in a normal setting.”

This randomized, controlled Phase 2/3 study will evaluate the safety, reactogenicity and immunogenicity of two vaccinations of mRNA-1273 given 28 days apart. The Company intends to enroll 3,000 adolescent participants in the U.S. ages 12 to less than 18 years. Each participant will be assigned to receive a placebo or a 100 μg dose at both vaccinations. Participants will be followed through 12 months after the second vaccination. Vaccine effectiveness will either be inferred through achieving a correlate of protection (if established) or through immunobridging to the adult population. Evaluation of vaccine safety and reactogenicity is also a primary endpoint of the study. The ClinicalTrials.gov identifier is NCT04649151.

About mRNA-1273

mRNA-1273 is an mRNA vaccine against COVID-19 encoding for a prefusion stabilized form of the Spike (S) protein, which was co-developed by Moderna and investigators from NIAID’s Vaccine Research Center. The first clinical batch, which was funded by the Coalition for Epidemic Preparedness Innovations, was completed on February 7, 2020 and underwent analytical testing; it was shipped to the NIH on February 24, 42 days from sequence selection. The first participant in the NIAID-led Phase 1 study of mRNA-1273 was dosed on March 16, 63 days from sequence selection to Phase 1 study dosing. On May 12, the FDA granted mRNA-1273 Fast Track designation. On May 29, the first participants in each age cohort: adults ages 18-55 years (n=300) and older adults ages 55 years and above (n=300) were dosed in the Phase 2 study of mRNA-1273. On July 8, the Phase 2 study completed enrollment.

Results from the second interim analysis of the NIH-led Phase 1 study of mRNA-1273 in the 56-70 and 71+ age groups were published on September 29 in The New England Journal of Medicine. On July 28, results from a non-human primate preclinical viral challenge study evaluating mRNA-1273 were published in The New England Journal of Medicine. On July 14, an interim analysis of the original cohorts in the NIH-led Phase 1 study of mRNA-1273 was published in The New England Journal of Medicine. mRNA-1273 currently is not approved for use by any regulatory body.

BARDA is supporting the continued research and development of mRNA-1273 with $955 million in federal funding under Contract no. 75A50120C00034. BARDA is reimbursing Moderna for 100 percent of the allowable costs incurred by the Company for conducting the program described in the BARDA contract. The U.S. government has agreed to provide up to $1.525 billion to purchase supply of mRNA-1273 under U.S. Department of Defense Contract No. W911QY-20-C-0100.

About Moderna

Moderna is advancing messenger RNA (mRNA) science to create a new class of transformative medicines for patients. mRNA medicines are designed to direct the body’s cells to produce intracellular, membrane or secreted proteins that can have a therapeutic or preventive benefit and have the potential to address a broad spectrum of diseases. The company’s platform builds on continuous advances in basic and applied mRNA science, delivery technology and manufacturing, providing Moderna the capability to pursue in parallel a robust pipeline of new development candidates. Moderna is developing therapeutics and vaccines for infectious diseases, immuno-oncology, rare diseases, cardiovascular diseases, and autoimmune and inflammatory diseases, independently and with strategic collaborators.

Headquartered in Cambridge, Mass., Moderna currently has strategic alliances for development programs with AstraZeneca PLC and Merck & Co., Inc., as well as the Defense Advanced Research Projects Agency (DARPA), an agency of the U.S. Department of Defense, and BARDA. Moderna has been named a top biopharmaceutical employer by Science for the past six years. To learn more, visit www.modernatx.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including regarding the Company’s development of a potential vaccine (mRNA-1273) against the novel coronavirus, the Company’s plans to conduct clinical trials for mRNA-1273 in adolescents, the potential for mRNA-1273 to provide protection against COVID-19 in adolescents, and the safety profile for mRNA-1273. In some cases, forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “could”, “expects,” “intends,” “plans,” “aims,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond Moderna’s control and which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties, and other factors include, among others: the fact that there has never been a commercial product utilizing mRNA technology approved for use; the fact that the rapid response technology in use by Moderna is still being developed and implemented; the safety, tolerability and efficacy profile of mRNA-1273 observed to date may change adversely in ongoing analyses of trial data or subsequent to commercialization; despite having ongoing interactions with the FDA or other regulatory agencies, the FDA or such other regulatory agencies may not agree with the Company’s regulatory approval strategies, components of our filings, such as clinical trial designs, conduct and methodologies, or the sufficiency of data submitted; Moderna may encounter delays in meeting manufacturing or supply timelines or disruptions in its distribution plans for mRNA-1273; whether and when any biologics license applications and/or emergency use authorization applications may be filed and ultimately approved by regulatory authorities; potential adverse impacts due to the global COVID-19 pandemic such as delays in regulatory review, manufacturing and clinical trials, supply chain interruptions, adverse effects on healthcare systems and disruption of the global economy; and those other risks and uncertainties described under the heading “Risk Factors” in Moderna’s most recent Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission (SEC) and in subsequent filings made by Moderna with the SEC, which are available on the SEC’s website at www.sec.gov. Except as required by law, Moderna disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on Moderna’s current expectations and speak only as of the date hereof.

Media:

Colleen Hussey

Director, Corporate Communications

617-335-1374

[email protected]

Investors:

Lavina Talukdar

Senior Vice President & Head of Investor Relations

617-209-5834

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Health Infectious Diseases Clinical Trials General Health Pharmaceutical Biotechnology

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WM Holding Company, LLC, the Leading Technology Platform to the Cannabis Industry, to List on Nasdaq Through Merger With Silver Spike Acquisition Corp.

WM Holding Company, LLC, the Leading Technology Platform to the Cannabis Industry, to List on Nasdaq Through Merger With Silver Spike Acquisition Corp.

  • WM Holding Company, LLC (“WMH” or “WM Holding”) operates Weedmaps, the leading online listings marketplace for cannabis consumers, and WM Business, a comprehensive software-as-a-service (“SaaS”) subscription offering for cannabis retailers and brands
  • The merger advances WM Holding’s mission to power a transparent and inclusive global cannabis economy and capitalize on its position as the largest technology provider in the sector
  • The estimated post transaction equity value of the combined Company is approximately $1.5 billion and provides up to $575 million of gross proceeds through the approximately $250 million of cash held-in-trust by Silver Spike Acquisition Corp. and a fully-committed common stock PIPE of $325 million
  • As a result of outsized demand, the PIPE offering was significantly oversubscribed and upsized, including investment from funds managed by AFV Partners, the Federated Hermes Kaufmann Funds and Senvest Management LLC along with a $35 million commitment from Silver Spike Capital
  • WM Holding’s executive officers will retain 100% of their equity in the combined company, which will have approximately $100 million of cash on hand after closing

IRVINE, Calif.–(BUSINESS WIRE)–
WM Holding Company, LLC (“WMH” or the “Company”) and Silver Spike Acquisition Corp. (Nasdaq: SSPK) (“Silver Spike”), a publicly-traded special purpose acquisition company, announced today a definitive agreement for a business combination that would result in WMH becoming a public company. The combined company will be led by Chris Beals, Chief Executive Officer of WMH, and is expected to remain listed on the Nasdaq Stock Market.

Company Overview

Founded in 2008, WMH operates Weedmaps, the leading online listings marketplace for cannabis consumers and businesses, and WM Business, the most comprehensive SaaS subscription offering sold to cannabis retailers and brands. The Company solely provides software and other technology solutions and is non-plant touching. WMH has grown revenue at a CAGR of 40% over the last five years and is on track to deliver $160 million in revenue and $35 million in EBITDA for 2020.

The cannabis market in the U.S. is expected to double over the next five years as the majority of U.S. adults support having legal access to cannabis. Despite these expectations of growth, cannabis users in the U.S. are still a small sub-segment of the population today, and retail density is still low across the majority of states with regulated legal cannabis markets. The regulations related to these markets are often complex and disparate across states as well as cities and counties within regulated states. Cannabis itself is a highly complex and non-shelf stable consumer product. These dynamics present a challenging and sometimes uncertain environment for consumers seeking legal cannabis products and for businesses selling to cannabis users while operating in a compliant fashion.

WMH addresses these challenges with its Weedmaps marketplace and WM Business SaaS subscription offering. Over the past 12 years, Weedmaps has grown to become the premier destination for cannabis consumers, with over 10 million monthly active users and over 18,000 business listings across every U.S. state, the District of Columbia and Puerto Rico with a legal cannabis market. Clients of the Company maintain listings in 9 international countries outside of the U.S. Through the Weedmaps website and mobile apps, WMH provides consumers with information regarding cannabis retailers and brands, as well as the availability of cannabis products, facilitating product discovery and online order-ahead for pickup or delivery by participating retailers.

The Company’s cloud-based WM Business SaaS subscription offering provides cannabis retailers with an end-to-end operating system to access valuable users, grow sales and scale their businesses at a compelling return-on-spend. This “business-in-a-box” functionality ranges from integrations supporting product menus that have online order-ahead, delivery order fulfillment software, data & analytics, a point-of-sale solution and a wholesale marketplace. WMH has been investing in and optimizing its WM Business software solution to also facilitate compliance for businesses amidst the complex, disparate and constantly evolving regulations governing the cannabis industry. Underlying this compliance functionality is a proprietary and sophisticated rules engine that is a core underpinning of the WM Business SaaS platform.

Chris Beals, WMH’s Chief Executive Officer, will continue to lead the Company along with the existing management team. Silver Spike’s CEO and Chairman, Scott Gordon, will join the merged company’s Board of Directors upon completion of the transaction.

Management Comments

“We are thrilled to partner with Silver Spike to transition WMH to our next phase of growth as a public company,” said Chris Beals, CEO of WMH. “We passionately believe in the power of cannabis and the importance of enabling safe, legal access to cannabis for consumers worldwide. With this merger, we will be able to continue scaling the Weedmaps marketplace in the U.S. and internationally in service of our users while expanding the functionality of our WM Business SaaS offerings in service of our clients. Our partnership with Silver Spike will provide us a stronger platform to advance our mission to advocate for legalization, social equity and licensing in many jurisdictions while providing cannabis businesses with the tools needed to succeed in a highly complex world of regulations. I am grateful for the continued support from my teammates and investors and most thankful for the thousands – and what I expect over time to be hundreds of thousands – of business clients on our platform. We are energized by the opportunities to continue helping our business clients thrive as regulated cannabis markets expand and grow.”

Scott Gordon, CEO and Chairman of Silver Spike, commented, “We believe WMH is the most compelling investment opportunity in cannabis today. We established Silver Spike Acquisition Corp. to identify and partner with a best-in-class company and proven management team that are well positioned to benefit from the macro drivers surrounding cannabis. We wanted to not only assist them with the transition to the public markets but also create a unique opportunity worthy of institutional investors. WMH is the perfect expression of our vision for Silver Spike Acquisition Corp.

Their business is transforming the eCommerce experience for cannabis by combining the largest audience of frequent cannabis users with the broadest set of brands and retailers and supporting those businesses with the complete tech stack for cannabis. They have created a 12-year advantage and solved very thorny issues, such as normalizing product data to drive user conversion or embedding compliance functionality throughout their software, while building the only comprehensive “business-in-a-box” software solution for cannabis retailers. We are beyond excited to work with Chris and the incredibly-talented WMH team to support their vision of helping licensed cannabis businesses thrive while driving growth and returns for our shareholders.”

Transaction Overview

The estimated post transaction equity value of the combined Company is approximately $1.5 billion, assuming the $10.00 per share PIPE price and no redemptions by Silver Spike shareholders. The transaction will provide up to $575 million of gross proceeds (assuming no redemptions), including $325 million through a fully-committed common stock PIPE at $10.00 per share. The PIPE includes commitments from existing investors including Silver Spike Capital, and new institutional investors including funds managed by AFV Partners, the Federated Hermes Kaufmann Funds and Senvest Management LLC.

The transaction, which has been unanimously approved by the Boards of Directors of WMH and Silver Spike, is subject to approval by Silver Spike’s shareholders and other customary closing conditions. Additional information about the proposed transaction, including a copy of the merger agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by Silver Spike with the Securities and Exchange Commission and will be available at www.sec.gov. Additional information can be found on the WMH Investor Relations page at www.weedmaps.com/investors.

Advisors

Rothschild & Co. is serving as exclusive financial and capital markets adviser and Cooley LLP is serving as legal advisor to WM Holding, LLC. Stifel, Nicolaus & Company, Incorporated and Piper Sandler & Co. are serving as joint placement agents and financial advisors and Davis Polk & Wardwell LLP is serving as legal advisor to Silver Spike Acquisition Corp. Gibson, Dunn & Crutcher LLP is serving as legal advisor to the founders of WM Holding.

Investor Conference Call Information

WMH and Silver Spike will host a joint investor conference call to discuss the proposed transaction Thursday, December 10, 2020 at 8:30am ET. Interested parties may listen to the prepared remarks via telephone by dialing 1-800-585-8367 (U.S.) or 1-416-621-4642 (International) and entering Conference ID: 7745849.

To listen to the prepared remarks via audio webcast, go to WMH’s investor website, at https://weedmaps.com/investors. The investor presentation will also be furnished today to the SEC, which can be viewed at the SEC’s website at www.sec.gov.

About WM Holding Company, LLC

WM Holding’s mission is to power a transparent and inclusive global cannabis economy. Now in its second decade, WMH has been a driving force behind much of the legislative change we’ve seen in the past 10 years.

WM Holding Company, LLC (“WM Holding” or “WMH” or “the Company”), parent company of Weedmaps and its WM Business SaaS offering, is the leading technology and software infrastructure provider to the cannabis industry. Founded in 2008, WMH is the leading two-sided marketplace and SaaS provider to the cannabis industry, comprising the Company’s B2C marketplace, Weedmaps, and its B2B software, WM Business. The Company’s cloud-based SaaS solutions provide an end-to-end operating system for cannabis retailers. These tools support compliance with the complex, disparate and constantly evolving regulations applicable to the cannabis industry. Underlying this compliance functionality is a proprietary and sophisticated rules engine that is a core underpinning of the WM Business SaaS platform. Through its website and mobile apps, WM Holding provides consumers with the latest information, data and availability of cannabis products, facilitating product discovery and driving sales for our customers. The Company holds a strong belief in the power of cannabis and the importance of enabling safe, legal access to consumers worldwide. Since inception, WMH has worked tirelessly, not only to be the most comprehensive platform for consumers, but to build the software solutions that power businesses compliantly in the space, to advocate for legalization, social equity, and licensing in many jurisdictions, and to facilitate further learning through partnering with dozens of subject matter experts on providing detailed, accurate information about the plant.

Headquartered in Irvine, California, WMH employs approximately 400 professionals around the world, including in Denver, New York, Ontario, Canada and Barcelona, Spain. Visit us at www.weedmaps.com/investors.

About Silver Spike Acquisition Corp.

Silver Spike Acquisition Corp. (SSAC), an affiliate of Silver Spike Capital, is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses.

The management team and board of directors are composed of veteran cannabis and finance industry executives and founders, including Scott Gordon, founder, and CEO of the Company, who began investing in the cannabis industry in 2014 and in 2016 co-founded and became Chairman of Egg Rock Holdings, the parent company of the Papa & Barkley family of cannabis products with related subsidiary assets in manufacturing, processing and logistics; and Dr. Orrin Devinsky, director of the Company, who is the director of the NYU Langone Comprehensive Epilepsy Center and is a Professor of Neurology, Neuroscience, Psychiatry, and Neuroscience at the NYU School of Medicine and who, since 2016 has served as the Chair of the Medical Advisory Board at Tilray, a pharmaceutical and cannabis company.

About Silver Spike Capital

Silver Spike Capital is an investment manager focused on the cannabis and alternative health & wellness industries. The firm offers diversified private credit and equity-related investment opportunities in the emerging and rapidly accelerating state and federally compliant cannabis, hemp, and other cannabinoid sectors. Silver Spike also manages a venture fund focused on the nascent psychedelics industry.

With over three decades of investment experience, Silver Spike’s investment professionals include early cannabis investors, entrepreneurs, operators, and researchers as well as emerging market finance veterans experienced in complex legal and regulatory characteristics that mirror the current cannabis landscape today.

Silver Spike Capital is headquartered in New York with a satellite office in Toronto. To learn more, please visit us at www.silverspikecap.com.

Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of financial and performance metrics, projections of market opportunity and market share, expectations and timing related to commercial product launches, potential benefits of the transaction and the potential success of WMH’s go-to-market strategy, and expectations related to the terms and timing of the transaction. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of WMH’s and Silver Spike’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of WMH and Silver Spike. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political and legal conditions; the inability of the parties to successfully or timely consummate the proposed business combination, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed business combination or that the approval of the shareholders of Silver Spike or WMH is not obtained; failure to realize the anticipated benefits of the proposed business combination; risks relating to the uncertainty of the projected financial information with respect to WMH; future global, regional or local economic and market conditions affecting the cannabis industry; the development, effects and enforcement of laws and regulations, including with respect to the cannabis industry; WMH’s ability to successfully capitalize on new and existing cannabis markets, including its ability to successfully monetize its solutions in those markets; WMH’s ability to manage future growth; WMH’s ability to develop new products and solutions, bring them to market in a timely manner, and make enhancements to its platform and WMH’s ability to maintain and grow its two sided digital network, including its ability to acquire and retain paying customers; the effects of competition on WMH’s future business; the amount of redemption requests made by Silver Spike’s public shareholders; the ability of Silver Spike or the combined company to issue equity or equity-linked securities in connection with the proposed business combination or in the future; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors discussed in Silver Spike’s final prospectus dated August 7, 2019, Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, in each case, under the heading “Risk Factors,” and other documents of Silver Spike filed, or to be filed, with the Securities and Exchange Commission (“SEC”). If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither Silver Spike nor WMH presently know or that Silver Spike and WMH currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Silver Spike’s and WMH’s expectations, plans or forecasts of future events and views as of the date of this press release. Silver Spike and WMH anticipate that subsequent events and developments will cause Silver Spike’s and WMH’s assessments to change. However, while Silver Spike and WMH may elect to update these forward-looking statements at some point in the future, Silver Spike and WMH specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing Silver Spike’s and WMH’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Additional Information About the Proposed Business Combination and Where To Find It

The proposed business combination will be submitted to shareholders of Silver Spike for their consideration. Silver Spike intends to file a registration statement on Form S-4 (the “Registration Statement”) with the SEC which will include preliminary and definitive proxy statements to be distributed to Silver Spike’s shareholders in connection with Silver Spike’s solicitation for proxies for the vote by Silver Spike’s shareholders in connection with the proposed business combination and other matters as described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued to WMH’s shareholders in connection with the completion of the proposed business combination. After the Registration Statement has been filed and declared effective, Silver Spike will mail a definitive proxy statement and other relevant documents to its shareholders as of the record date established for voting on the proposed business combination. Silver Spike’s shareholders and other interested persons are advised to read, once available, the preliminary proxy statement / prospectus and any amendments thereto and, once available, the definitive proxy statement / prospectus, in connection with Silver Spike’s solicitation of proxies for its special meeting of shareholders to be held to approve, among other things, the proposed business combination, because these documents will contain important information about Silver Spike, WMH and the proposed business combination. Shareholders may also obtain a copy of the Extension Proxy Statement and preliminary or definitive proxy statement, once available, as well as other documents filed with the SEC regarding the proposed business combination and other documents filed with the SEC by Silver Spike, without charge, at the SEC’s website located at www.sec.gov or by directing a request to 660 Madison Ave Suite 1600, New York, NY 10065 or [email protected].

Participants in the Solicitation

Silver Spike, WMH and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitations of proxies from Silver Spike’s shareholders in connection with the proposed business combination. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of Silver Spike’s shareholders in connection with the proposed business combination will be set forth in Silver Spike’s proxy statement / prospectus when it is filed with the SEC. You can find more information about Silver Spike’s directors and executive officers in Silver Spike’s final prospectus dated August 7, 2019 and filed with the SEC on August 9, 2019. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests will be included in Silver Spike’s Extension Proxy Statement and also will be included in the proxy statement / prospectus when they become available. Shareholders, potential investors and other interested persons should read the proxy statement / prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from the sources indicated above.

No Offer or Solicitation

This press release not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

For WM Holding Company, LLC:

Media: Travis Rexroad, [email protected]

Investor Relations: Greg Stolowitz, [email protected]

For Silver Spike Acquisition Corp:

Nathaniel K Garnick, [email protected]

KEYWORDS: California New York United States North America

INDUSTRY KEYWORDS: Alternative Medicine Online Retail Retail Health Technology Software

MEDIA:

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