Zscaler, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Zscaler, Inc. on April 30, 2019. The filing reports the entry into a material definitive agreement regarding a sublease of office space in San Jose, California.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity metrics. The only financial figure disclosed relates to the new lease obligation:
- Total Base Rent: Approximately $39.1 million through the end of the lease term.
- Additional Costs: The Company is responsible for its pro rata portion of operating and other expenses.
Material Changes and Agreements
On April 30, 2019, Zscaler obtained landlord consent for a sublease agreement with Micron Technology, Inc., dated March 26, 2019. Key terms include:
- Location: 120 Holger Way, San Jose, California.
- Space: Up to approximately 172,000 square feet of rentable space.
- Occupancy Plan: Initial occupancy of approximately 69,000 square feet, with the remainder occupied in phases.
- Term: Commences October 1, 2019, with full occupancy expected in October 2025. The lease terminates on September 30, 2026.
Outlook, Risks, and Contingencies
The filing notes that the effectiveness of the sublease was conditioned upon obtaining landlord consent, which was secured on the report date. The full text of the Sublease will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the three months ended April 30, 2019. No other risks, guidance, or unusual items are disclosed in this specific report.
Investor Verification Checklist
- Verify the full terms of the Sublease agreement in the upcoming Form 10-Q exhibit.
- Confirm the phased occupancy schedule and associated capital expenditure requirements.
- Monitor the impact of the $39.1 million rent obligation on future cash flow projections.