Exhibit 99.1

News Release

For Release on November 14, 2016

Sysorex Reports Financial Results For The Third Quarter Ended September 30, 2016

Conference Call To Be Held Today at 4:30 pm Eastern Time

PALO ALTO, Calif. – Sysorex (NASDAQ: SYRX), a developer of high performance analytics software and solutions, today reported financial results for the third quarter ended September 30, 2016.

Third Quarter 2016 Financial Highlights:

“Our Storage & Computing segment continued to see softening in the third quarter due to the challenges facing the VAR industry, especially with private sector customers. I will discuss on our earnings call today the two strategies we are implementing to address these challenges. First of course is our move to increase our value proposition to our customers by owning our proprietary technologies such as AirPatrol and LightMiner. Our second approach is to counter the VAR trends in the private sector by growing our VAR business in the public sector. I have stated this many times in the past and we started on this effort as evidenced by the recent government contract wins. We believe the announcement today of the planned asset purchase of Integrio will allow us to address this challenge aggressively. As represented by Integrio, it has generated more than $40 million per year in revenue over the past two years. We believe this fundamentally strengthens our VAR business segment with positive, long-term benefits,” said Mr. Nadir Ali, CEO of Sysorex. “Integrio’s relationships with the Bureau of Prisons, FBI and many other government agencies yield further opportunities for our AirPatrol and LightMiner products. We are also encouraged about our Mobile and IoT segment as we begin to monetize the implementation of our Air Patrol and LightMiner solutions pursuant to the managed services contract with a large mall operator. This implementation is what we envision to be the first of numerous significant business developments that capitalize on our innovative technologies and big data solutions. Our offerings continue to receive substantial interest from numerous industry leading clients across Retail, Security and the Government sectors and we expect to announce a number of customer developments in the coming quarters,” Mr. Ali concluded.

Third Quarter 2016 Financial Results

Revenue: Total revenues for the three months ended September 30, 2016 were $11.2 million compared to $14.9 million for the comparable period in the prior year. The decrease in revenues of $3.7 million is primarily attributable to the Storage and Computing segment based on the challenges the VAR industry faces in the commercial verticals as discussed above. For the three months ended September 30, 2016, Mobile, IoT & Big Data Products revenue was $542,000 compared to $487,000 for the prior year period. Storage and Computing revenue was $7.9 million for the three months ended September 30, 2016 and $10.3 million for the prior year period. SaaS revenue was $826,000 during the three months ended September 30, 2016 and $871,000 during the prior year period. Professional Services revenue was $2.0 million during the three months ended September 30, 2016 and $3.2 million during the prior year period.

Gross Profit: Total gross profit for the quarter ended September 30, 2016 was $3.1 million, compared to $4.4 million for the comparable period in the prior year. The gross profit margin for the three months ended September 30, 2016 was 28% compared to 30% during the three months ended September 30, 2015. The decrease in gross margin was primarily attributable to lower gross margin for the Storage and Computing segment during the quarter ended September 30, 2016.

Net Loss: Net loss attributable to common stockholders for the three months ended September 30, 2016 was $4.7 million compared to $3.2 for the prior year period. This increase in net loss of $1.5 million was attributable to lower revenue during the quarter and therefore lower gross profit to offset the operating expenses.

Non-GAAP net loss¹: For the quarter ended September 30, 2016, pro-forma non-GAAP net loss was $3.3 million, compared to a non-GAAP net loss of $1.8 million for the prior year period. For the quarter ended September 30, 2016, non-GAAP net loss per share was $0.13, compared to a non-GAAP net loss per share of $0.09 for the prior year period. Non-GAAP net loss per share is defined as net loss per basic and diluted share adjusted for non-cash items including stock based compensation, amortization of intangibles, change in the fair value of shares to be issued, change in the fair value of derivative liability and one time charges including acquisition costs.

Non-GAAP adjusted EBITDA¹: Total adjusted EBITDA for the quarter ended September 30, 2016 was a loss of $2.4 million compared to a loss of $1.5 million for the prior year period. Non-GAAP adjusted EBITDA is defined as net income (loss) before interest, provision for (benefit from) income taxes, and depreciation and amortization plus adjustments for other income or expense items, non-recurring items and non-cash stock-based compensation.

¹ A reconciliation of GAAP to non-GAAP financial measures is provided in the financial statement tables included in this press release. An explanation of these measures is also included under the heading “Non-GAAP Financial Measures.”

Third Quarter 2016 and Recent Business Highlights

All results summarized in this press release (including the financial statement tables) should be considered preliminary, are qualified in their entirety by the financial statement tables included in this press release and are subject to change. Please refer to Sysorex’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, which will be filed with the Securities and Exchange Commission on or about November 14, 2016.

Conference Call Information

Management will host a conference call today, November 14, 2016, at 4:30 p.m. Eastern Time to review financial results and corporate highlights. Following management’s formal remarks, there will be a question and answer session.

To listen to the conference call, interested parties within the U.S. should call 1-844-824-3831. International callers should call +1-412-317-5141. All callers should ask for the Sysorex Global conference call. The conference call will also be available through a live webcast, which can be accessed at http://client.irwebkit.com/Sysorex.

A replay of the call will be available approximately one hour after the end of the call through December 14, 2016. The replay can be accessed via Sysorex’s website or by dialing 1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The replay conference playback code is 10096306.

About Sysorex

Sysorex develops the systems and solutions that power the data-driven enterprise. With an innovative approach to big data, analytics and the Internet of Things (IoT), we blend virtual data from software and networks with the huge volume of physical data generated by mobile devices and Internet-connected things to open new worlds of insight. Our unique solutions are helping organizations worldwide improve decision making, increase productivity, and fuel the discoveries of tomorrow. Headquartered in Palo Alto, California, we have regional offices in North America, South America, Europe and the Middle East. Visit www.sysorex.com, follow us @SysorexGlobal and Link up on LinkedIn.

Safe Harbor Statement

All statements in this release that are not based on historical fact are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements include statements that indicate that the acquisition of certain assets of Integrio Technologies will address the continued softening in our Storage and Computing Segment, that we will see improvement in our Mobile and IoT segment as we begin to monetize the implementation of our Air Patrol and LightMiner solutions pursuant to a managed services contract and that we expect to announce a number of customer developments in the coming quarters. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Sysorex and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of global economic conditions, the performance of management and employees, the company’s ability to obtain financing, competition, general economic conditions and other factors that are detailed in the company’s periodic and current reports available for review at www.sec.gov. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.

Non-GAAP Financial Measures

Management believes that certain financial measures not in accordance with generally accepted accounting principles ("GAAP") are useful measures of operations. EBIDTA, Adjusted EBITDA and pro forma net loss per share are non-GAAP measures. Sysorex defines “EBITDA” as net income (loss) before interest, provision for (benefit from) income taxes, and depreciation and amortization. Management uses Adjusted EBITDA as the matrix in which it manages the business and Sysorex defines “Adjusted EBITDA” as EBITDA plus adjustments for other income or expense items, non-recurring items and non-cash stock-based compensation. Sysorex defines “pro forma net loss per share” as GAAP net loss per share adjusted for stock-based compensation, amortization of intangibles, change in the fair value of shares to be issued, change in the fair value of derivative liability and one-time non-recurring charges such as severance costs, acquisition costs and the costs associated with the public offering.

Management provides Adjusted EBITDA and pro forma net loss per share measures so that investors will have the same financial information that management uses, which may assist investors in assessing Sysorex’s performance on a period-over-period basis. Adjusted EBITDA or pro forma net loss per share is not a measure of financial performance under GAAP, and should not be considered an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA and pro forma net loss per share have limitations as analytical tools and should not be considered either in isolation or as a substitute for analysis of Sysorex’s results as reported under GAAP.

Contacts

 
Sysorex Investor Relations:
CorProminence LLC
Scott Arnold, +1 (516) 222-2560
Managing Director
www.corprominence.com

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SYSOREX GLOBAL

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

SYSOREX GLOBAL

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share data)

SYSOREX GLOBAL

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Reconciliation of Non-GAAP Financial Measures:

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