Sphere 3D Corp (NASDAQ:ANY) shares were down 5.87% to $0.470 on Wednesday and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.40 to $2.75. The company has a market cap of $25.54 million at 51.19 million shares outstanding.
Sphere 3D Corp is a company that delivers data management, and desktop and application virtualization solutions via hybrid Cloud, Cloud and on-premise implementations through its global reseller network. Along with its wholly-owned subsidiaries Overland Storage and Tandberg Data, Sphere 3D Corp has a strong portfolio of brands including Glassware 2.0(TM), NEO(R), RDX(R), SnapCLOUD(TM), SnapScale(R), SnapServer(R), SnapSync(TM), and V3(R).
The company is due to report its quarterly earnings figures on November 11, 2016. Analysts expect the company to report a loss of $0.18 per share, following its previous -$0.09 EPS in the period ending June 30, 2016. Sphere 3D Corp had revenue of $19.60 million for the quarter, compared to analysts’ expectations of $20.40 million. Also, the company had a negative return on equity of 37.54% and a negative net margin of 60.50% even as its revenue was up 6.5% on a year-over-year basis.
Earlier in the period, Sphere 3D Corp reported continued improvements in operational efficiencies are expected to result in a minimum of $4 million in additional savings per annum. It also shared that it received a formal, non-binding expression of interest for the purchase of certain of its assets from an arm’s-length third party, although it was still exploring the arrangement to gauge if it will increase shareholder value. In the same update, the company reported that it is currently in late stage discussions with a number of financial institutions in order to seek access to additional capital.
The company has seen a number of positive signals around its business and remains focused on driving the adoption of our vertically integrated portfolio of hybrid Cloud, Cloud, and on-premise solutions,” said Eric Kelly, of Sphere 3D Corp. “Our focus on operational efficiencies, profitability, increased liquidity and continuing to advance key corporate initiatives will provide the catalyst needed to achieve our business goals.”
On the daily chart of Sphere 3D Corp shares, it can be seen that the stock is already slowing from its drop. Price is testing key support zones, and a break below this area could pull the rug from under share prices, exposing it to a potentially sharper decline. On the other hand, stronger than expected quarterly earnings could lead to a bounce off these bottoms onto the area of interest around $0.65.
Volume is still subdued, although slightly higher compared to investor interest earlier in the year. Harber Asset Management LLC purchased a new stake in Sphere 3D Corp, according to its most recent 13F filing with the SEC. This institutional investor bought 218,464 shares of the company’s stock, valued at approximately $175,000, giving it 44% stake in the company’s stock as of its latest SEC filing.
In addition, brokers have set a one year consensus price target of $1.50 for the company according to Zacks, which also shows that the company received an average broker rating score of 3.00 from analysts that cover its performance.
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