Business
Phunware Closes Acquisition of High Performance Computer Provider Lyte Technology
Revenue Guidance for Fourth Quarter Fiscal 2021 Expected to Exceed $5M AUSTIN, Texas, Oct. 19, 2021 (GLOBE NEWSWIRE) -- Phunware, Inc. (NASDAQ: PHUN) (the
About this update from Phunware, Inc.
[{"type":"text","content":"Revenue Guidance for Fourth Quarter Fiscal 2021 Expected to Exceed $5M\nAUSTIN, Texas, Oct. 19, 2021 (GLOBE NEWSWIRE) -- Phunware, Inc. (NASDAQ: PHUN) (the “Company”), a fully-integrated enterprise cloud platform for mobile that provides products, solutions, data and services for brands worldwide, announced today it has formally closed the acquisition of privately-held Lyte Technology, Inc. (“Lyte”), a fast-growing provider of high performance computer systems. The Company financed the closing consideration of $3.32 million with cash on-hand and unsecured, non-dilutive debt. Lyte Technology Overview Founded in 2018, Lyte is a profitable, rapidly-growing system integrator that specializes in marketing and distributing custom, high-end computer systems off-the-shelf with advanced graphic processing units for gaming, streaming and cryptocurrency mining. Currently located in Illinois, Lyte employs over 25 people and ships thousands of computer systems per quarter to a unique customer network that has largely grown through word-of-mouth. Acquisition Summary and Rationale (Unaudited) The total consideration for the acquisition consisted of cash and Company common stock valued at up to approximately $10.98 million, a portion of which is characterized as an earn-out payment contingent upon Lyte generating at least $12.00 million in net revenues for the one-year period post-closing.No Company common stock was issued at closing.Lyte enables Phunware to enter the high performance personal computer market, which JPR estimates is a $32 billion USD market that is expected to grow at a 20.4% CAGR over the next five years.Complementary and synergistic go-to-market strategies exist, with no overlap in the companies’ relevant partner or customer bases.Lyte’s customers represent gamers, developers, content creators and crypto enthusiasts who will support the adoption, scale and infrastructure required for Phunware to deploy its decentralized data economy powered by PhunCoin and PhunToken.For the fourth quarter of fiscal 2021, Phunware expects to report net revenues exceeding $5.00 million. “Pre-acquisition, Q3 organic net revenues are expected to exceed 50% quarter-over-quarter growth sequentially when formally announced in mid-November, so this accretive inorganic acquisition puts us in a great position to not only continue that organic momentum ...