Attached files
| file | filename |
|---|---|
| 8-K - MEDIDATA SOLUTIONS, INC. 8-K - Medidata Solutions, Inc. | a6290509.htm |
| EX-99.1 - EXHIBIT 99.1 - Medidata Solutions, Inc. | a6290509ex99_1.htm |
Exhibit 99.2
(NASDAQ: MDSO)
SUPPLEMENTAL RECONCILIATION AND GUIDANCE PRESENTATION
FOR THE PERIOD ENDED MARCH 31,
2010
Thursday, May 13, 2010
Investor
Relations Contact:
Hulus Alpay
(212) 419-1025
halpay@mdsol.com
Table of contents:
Page 3 - First quarter 2010
reconciliation table
Page 4 - Historical reconciliation information
Page
5 - Historical and updated guidance comparisons
| MEDIDATA SOLUTIONS, INC. | ||||||||
|
Reconciliation of GAAP Operating Income and GAAP Net Income to
Non-GAAP Operating Income, Non-GAAP Net Income and Adjusted Non-GAAP Net Income (unaudited) (Amounts in thousands, except per share data) |
||||||||
|
Three Months Ended
March 31, |
||||||||
| 2010 | 2009 | |||||||
| Operating income: | ||||||||
| GAAP operating income | $ | 2,944 | $ | 2,288 | ||||
| GAAP operating margins | 7.9 | % | 6.7 | % | ||||
| Depreciation and amortization | 2,593 | 2,550 | ||||||
| Stock-based compensation | 1,150 | 1,003 | ||||||
| Non-GAAP operating income | $ | 6,687 | $ | 5,841 | ||||
| Non-GAAP operating margins | 17.8 | % | 17.4 | % | ||||
| Net income: | ||||||||
| GAAP net income | $ | 1,864 | $ | 1,694 | ||||
| Stock-based compensation | 1,150 | 1,003 | ||||||
| Amortization | 365 | 457 | ||||||
| Non-GAAP net income | 3,379 | 3,154 | ||||||
| Tax impact on stock-based compensation and amortization (1) | (523 | ) | - | |||||
| Adjusted non-GAAP net income | $ | 2,856 | $ | 3,154 | ||||
| GAAP basic earnings per share | $ | 0.08 | $ | 0.22 | ||||
| GAAP diluted earnings per share | $ | 0.08 | $ | 0.10 | ||||
| Non-GAAP basic earnings per share | $ | 0.15 | $ | 0.43 | ||||
| Non-GAAP diluted earnings per share | $ | 0.14 | $ | 0.18 | ||||
| Adjusted non-GAAP basic earnings per share | $ | 0.13 | $ | 0.43 | ||||
| Adjusted non-GAAP diluted earnings per share | $ | 0.12 | $ | 0.18 | ||||
(1) Tax impact calculated using a 35% effective tax rate
*Non-GAAP
Financial Information
Medidata provides Non-GAAP operating income,
net income, adjusted net income and net income per share applicable to
common stockholders data as additional information for its operating
results. These measures are not in accordance with, or an alternative
for, generally accepted accounting principles and may be different from
Non-GAAP measures used by other companies. Non-GAAP operating income
excludes the impact of depreciation, amortization of purchased
intangible assets and acquisition-related charges and stock-based
compensation expense. Non-GAAP net income excludes the impact of
amortization of intangible assets associated with acquisitions and
stock-based compensation expense. Adjusted non-GAAP net income excludes
the impact of tax affected amortization of intangible assets associated
with acquisitions and stock-based compensation expense. Management uses
these Non-GAAP measures to evaluate its financial results, develop
budgets, manage expenditures, and as an important factor in determining
variable compensation. In addition, investors frequently have requested
information from management regarding depreciation and amortization and
non-cash, share-based compensation charges and management believes,
based on discussions with investors, that these Non-GAAP measures
enhance investor’s ability to assess Medidata’s historical and project
future financial performance. While management believes these Non-GAAP
financial measures provide useful supplemental information to investors,
there are limitations associated with the use of Non-GAAP financial
measures. One limitation of Non-GAAP operating income is that it
excludes depreciation and amortization, which represents the periodic
costs of certain capitalized tangible and intangible assets used in
generating revenues in our business. Medidata compensates for these
limitations by using these non-GAAP financial measures as supplements to
GAAP financial measures and by reviewing the reconciliations of the
Non-GAAP financial measures to their most comparable GAAP financial
measures. Investors are encouraged to review the reconciliations of
these Non-GAAP financial measures to the comparable GAAP results, which
are attached to this press release.
| MEDIDATA SOLUTIONS, INC. | ||||||||||||||||||||||||
|
Reconciliation of GAAP Operating Income and GAAP Net Income to
Non-GAAP Operating Income, Non-GAAP Net Income and Adjusted Non-GAAP Net Income (unaudited) (Amounts in thousands, except per share data) |
||||||||||||||||||||||||
| Actual | ||||||||||||||||||||||||
| Quarter Ended |
Year
Ended |
Quarter
Ended |
||||||||||||||||||||||
|
Mar. 31,
2009 |
Jun. 30,
2009 |
Sep. 30,
2009 |
Dec. 31,
2009 |
Dec. 31,
2009 |
Mar. 31,
2010 |
|||||||||||||||||||
| Operating income: | ||||||||||||||||||||||||
| GAAP operating income | $ | 2,288 | $ | 773 | $ | 2,622 | $ | 3,094 | $ | 8,777 | $ | 2,944 | ||||||||||||
| GAAP operating margins | 6.7 | % | 2.3 | % | 7.4 | % | 8.2 | % | 6.2 | % | 7.9 | % | ||||||||||||
| Depreciation and amortization | 2,550 | 2,591 | 2,669 | 2,770 | 10,580 | 2,593 | ||||||||||||||||||
| Stock-based compensation | 1,003 | 920 | 1,505 | 1,302 | 4,730 | 1,150 | ||||||||||||||||||
| Non-GAAP operating income | $ | 5,841 | $ | 4,284 | $ | 6,796 | $ | 7,166 | $ | 24,087 | $ | 6,687 | ||||||||||||
| Non-GAAP operating margins | 17.4 | % | 12.6 | % | 19.3 | % | 19.1 | % | 17.2 | % | 17.8 | % | ||||||||||||
| Net income: | ||||||||||||||||||||||||
| GAAP net income | $ | 1,694 | $ | 200 | $ | 1,549 | $ | 1,739 | $ | 5,182 | $ | 1,864 | ||||||||||||
| Stock-based compensation | 1,003 | 920 | 1,505 | 1,302 | 4,730 | 1,150 | ||||||||||||||||||
| Amortization | 457 | 456 | 457 | 456 | 1,826 | 365 | ||||||||||||||||||
| Non-GAAP net income | 3,154 | 1,576 | 3,511 | 3,497 | 11,738 | 3,379 | ||||||||||||||||||
| Tax impact of stock-based compensation and amortization (1) | - | - | - | - | - | (523 | ) | |||||||||||||||||
| Adjusted non-GAAP net income | $ | 3,154 | $ | 1,576 | $ | 3,511 | $ | 3,497 | $ | 11,738 | $ | 2,856 | ||||||||||||
| GAAP basic earnings per share | $ | 0.22 | $ | 0.01 | $ | 0.07 | $ | 0.08 | $ | 0.33 | $ | 0.08 | ||||||||||||
| GAAP diluted earnings per share | $ | 0.10 | $ | 0.01 | $ | 0.06 | $ | 0.07 | $ | 0.25 | $ | 0.08 | ||||||||||||
| Non-GAAP basic earnings per share | $ | 0.43 | $ | 0.20 | $ | 0.16 | $ | 0.16 | $ | 0.77 | $ | 0.15 | ||||||||||||
| Non-GAAP diluted earnings per share | $ | 0.18 | $ | 0.09 | $ | 0.15 | $ | 0.15 | $ | 0.57 | $ | 0.14 | ||||||||||||
| Adjusted non-GAAP basic earnings per share | $ | 0.43 | $ | 0.20 | $ | 0.16 | $ | 0.16 | $ | 0.77 | $ | 0.13 | ||||||||||||
| Adjusted non-GAAP diluted earnings per share | $ | 0.18 | $ | 0.09 | $ | 0.15 | $ | 0.15 | $ | 0.57 | $ | 0.12 | ||||||||||||
(1) Tax impact calculated using a 35% effective tax rate
| MEDIDATA SOLUTIONS, INC. | |||||||||||||||||||||||
|
Summary of Prior, New and Updated Guidance*
(Amounts in thousands) |
|||||||||||||||||||||||
| Historical Guidance | New Guidance | Prior Guidance | Updated Guidance | ||||||||||||||||||||
|
Quarter Ended
March 31, |
Quarter Ended
June 30, |
Year Ended
December 31, |
Year Ended
December 31, |
||||||||||||||||||||
| 2010 | 2010 | 2010 | 2010 | ||||||||||||||||||||
| Low | High | Low | High | Low | High | Low | High | ||||||||||||||||
| Total revenues | $ | 36,000 | $ | 37,000 | $ | 38,000 | $ | 39,000 | $ | 160,000 | $ | 164,000 | $ | 160,000 | $ | 164,000 | |||||||
| GAAP operating income | $ | 1,000 | $ | 2,000 | $ | 2,000 | $ | 3,000 | $ | 13,000 | $ | 15,000 | $ | 13,000 | $ | 15,000 | |||||||
| Non-GAAP operating income/EBITDAO | $ | 5,000 | $ | 6,000 | $ | 6,000 | $ | 7,000 | $ | 29,000 | $ | 31,000 | $ | 29,000 | $ | 31,000 | |||||||
| GAAP net income | $ | 500 | $ | 1,500 | $ | 1,000 | $ | 2,000 | $ | 8,000 | $ | 10,000 | $ | 8,000 | $ | 10,000 | |||||||
| Non-GAAP net income | $ | 2,000 | $ | 3,000 | $ | 3,000 | $ | 4,000 | $ | 16,500 | $ | 18,500 | $ | 16,500 | $ | 18,500 | |||||||
| Adjusted non-GAAP net income (1) | NA | NA | $ | 2,500 | $ | 3,500 | NA | NA | $ | 14,500 | $ | 16,500 | |||||||||||
(1) includes tax impact of stock-based compensation and amortization
using a 35% effective tax rate
*Information only valid as of May
13, 2010
Cautionary Statement
The guidance presented here
in constitutes “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are
subject to risks and uncertainties that could cause actual performance
or results to differ materially from those expressed in these
statements. In particular, the risks and uncertainties include, among
other things, risks associated with possible fluctuations in our
financial and operating results; errors, interruptions or delays in our
service or our Web hosting; the financial impact of any future
acquisitions; our ability to continue to release, and gain customer
acceptance of, new and improved versions of our products; changes in our
sales and implementation cycles; competition; our ability to retain and
expand our customer base or increase new business from those customers;
our ability to hire, retain and motivate our employees and manage our
growth; regulatory developments; litigation; and general developments in
the economy. For additional disclosure regarding these and other risks
faced by the Company, see disclosures contained in Medidata's public
filings with the Securities and Exchange Commission including, the “Risk
Factors” section of Medidata’s Annual Report on Form 10-K for the year
ended December 31, 2009. You should consider these factors in evaluating
the forward-looking statements included in this press release and not
place undue reliance on such statements. The forward-looking statements
are made as of the date hereof, and Medidata undertakes no obligation to
update such statements as a result of new information.