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8-K - FORM 8-K - ACME PACKET INC | b88651e8vk.htm |
Exhibit 99.1
Investor Relations Contact:
|
Media and Analyst Contact: | |
Brian Norris
|
Mike OMalley | |
Acme Packet
|
Acme Packet | |
+1.781.328.4790
|
+1.781.869.2975 | |
bnorris@acmepacket.com
|
momalley@acmepacket.com |
Acme Packet Reports Results for Third Quarter of 2011
Company Reaffirms 2011 Revenue and Earnings Estimates
Bedford, Massachusetts October 20, 2011 Acme Packet, Inc. (NASDAQ: APKT), the leader in
session delivery network solutions, today announced results for the third quarter ended September
30, 2011 and reaffirmed its business outlook for 2011.
Results for the Third Quarter of 2011
Total revenue in the third quarter of 2011 was $70.6 million, compared to $56.6 million in the
third quarter of 2010 and $79.7 million in the second quarter of 2011. Net income in the third
quarter of 2011 was $7.9 million, or $0.11 per share, compared to $10.5 million, or $0.15 per
share, in the third quarter of 2010 and $14.0 million, or $0.20 per share, in the second quarter of
2011. Net income on a non-GAAP1 basis in the third quarter of 2011 was $14.6 million,
or $0.21 per share, compared to $13.7 million, or $0.20 per share, in the third quarter of 2010,
and $20.4 million, or $0.29 per share, in the second quarter of 2011. All earnings per share
results are on a fully diluted basis.
The fundamentals of our business remain strong, and we remain well positioned to take advantage of
the profound shift to Internet-based voice, video and unified communications, said Andy Ory,
President and CEO of Acme Packet, Inc. We are excited about the new products and partnerships that
we have launched to drive the next stage of our growth. We remain confident in our ability to
execute on our full year business outlook.
Company Reaffirms Business Outlook for 2011
The Company today reaffirmed its business outlook for 2011. The Companys outlook is based on the
current indications for its business, which may change at any time. A reconciliation of the
Companys
expected GAAP to non-GAAP1 business outlook, and a statement as to the use of
non-GAAP1 financial measures, is included at the end of this press release.
All earnings per share results are on a fully diluted basis.
Business Outlook for Year Ending December 31, 2011 | ||||
Estimate | Issued October 20, 2011 | |||
Total revenue (in millions)
|
$ | 315-$320 | ||
Total revenue growth rate
|
Approximately 36%-38% | |||
Non-GAAP1 EPS
|
$ | 1.14-$1.18 | ||
Non-GAAP1 EPS growth rate
|
Approximately 43%-48% | |||
GAAP EPS
|
$ | 0.78-$0.82 | ||
GAAP EPS growth rate
|
Approximately 24%-30% | |||
Diluted share count (in millions)
|
71.5 | |||
Company to Host Live Conference Call and Webcast
The Companys management team will host a live conference call and webcast at 4:30 p.m.
eastern time today to discuss the financial results as well as managements outlook for the
business. The conference call may be accessed in the United States by dialing 1.800.230.1093 and
using access code APKT. The conference call may be accessed outside of the United States by
dialing +1.612.288.0329 and using access code APKT. The conference call will be simultaneously
webcast on the Companys investor relations website, which can be accessed at
www.ir.acmepacket.com. A replay of the conference call will be available approximately two hours
after the call by dialing 1.800.475.6701 or +1.320.365.3844 and using access code 219385 or by
accessing the webcast replay on the Companys investor relations website.
1 | A reconciliation of GAAP to non-GAAP results, and a statement on the use of non-GAAP financial measures, is included at the end of this press release. |
About Acme Packet
Acme Packet (NASDAQ: APKT), the leader in session delivery network solutions, enables the trusted,
first-class delivery of next-generation voice, data and unified communications services and
applications across IP networks. Our Net-Net product family fulfills demanding security, service
assurance and regulatory requirements in service provider, enterprise and contact center networks.
Based in Bedford, Massachusetts, Acme Packet designs and manufactures its products in the USA,
selling them through over 200 reseller partners worldwide. More than 1,525 customers in 107
countries have deployed over 14,000 Acme Packet systems, including 90 of the top 100 service
providers and 36 of the Fortune 100. For more information visit www.acmepacket.com.
Acme Packet, Inc. Safe Harbor Statement
Statements contained herein that are not historical fact (including those in the section Company
Reaffirms Business Outlook for 2011) may be forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements may relate to, among other things, expected financial and operating
results, expected growth rates, future stock-based compensation and amortization expenses, future
business prospects and market conditions. Such
forward-looking statements do not constitute guarantees of future performance and are subject to a variety
of risks and uncertainties that could cause actual results to differ materially from those anticipated. These include, but are not
limited to: the amount of stock-based compensation awarded; the applicable Company stock price used
to determine stock-based compensation; the exercise pattern of employee stock options; difficulties
expanding the Companys customer base; difficulties leveraging market opportunities; difficulties
providing solutions that meet the needs of customers; poor product sales; long sales cycles;
difficulties developing new products; difficulties in relationships with vendors and partners;
higher risks in international operations; difficulties managing rapid growth; difficulties managing
the Companys financial performance; the ability to hire and retain employees and appropriately
staff operations; the Companys cash needs; the impact of new accounting pronouncements and
increased competition. Additional factors that could cause actual results to differ materially from
those projected or suggested in any forward-looking statements are contained in the Companys
recent filings with the Securities and Exchange Commission, including those factors discussed under
the caption Risk Factors in such filings.
Acme Packet, Inc.
Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
(unaudited)
Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue: |
||||||||||||||||
Product |
$ | 53,077 | $ | 45,328 | $ | 177,507 | $ | 129,452 | ||||||||
Maintenance, support and service |
17,544 | 11,286 | 46,814 | 31,548 | ||||||||||||
Total revenue |
70,621 | 56,614 | 224,321 | 161,000 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Product |
8,778 | 7,903 | 30,090 | 22,886 | ||||||||||||
Maintenance, support and service |
3,042 | 2,556 | 8,573 | 6,964 | ||||||||||||
Total cost of revenue |
11,820 | 10,459 | 38,663 | 29,850 | ||||||||||||
Gross profit |
58,801 | 46,155 | 185,658 | 131,150 | ||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
27,201 | 17,012 | 75,640 | 50,062 | ||||||||||||
Research and development |
13,249 | 8,896 | 37,262 | 26,235 | ||||||||||||
General and administrative |
5,406 | 3,906 | 15,771 | 10,785 | ||||||||||||
Merger and integration-related costs |
120 | | 300 | | ||||||||||||
Total operating expenses |
45,976 | 29,814 | 128,973 | 87,082 | ||||||||||||
Income from operations |
12,825 | 16,341 | 56,685 | 44,068 | ||||||||||||
Other (expense) income, net |
(53 | ) | 189 | (147 | ) | 354 | ||||||||||
Income before provision for income taxes |
12,772 | 16,530 | 56,538 | 44,422 | ||||||||||||
Provision for income taxes |
4,846 | 6,065 | 20,895 | 15,895 | ||||||||||||
Net income |
$ | 7,926 | $ | 10,465 | $ | 35,643 | $ | 28,527 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.12 | $ | 0.17 | $ | 0.54 | $ | 0.46 | ||||||||
Diluted |
$ | 0.11 | $ | 0.15 | $ | 0.50 | $ | 0.43 | ||||||||
Weighted average number of common
shares used in the calculation of net
income per share: |
||||||||||||||||
Basic |
66,752,669 | 62,772,466 | 66,011,761 | 61,371,085 | ||||||||||||
Diluted |
70,908,590 | 68,426,272 | 70,887,241 | 67,114,486 | ||||||||||||
Margin: |
||||||||||||||||
Gross margin |
83.3 | % | 81.5 | % | 82.8 | % | 81.5 | % | ||||||||
Operating margin |
18.2 | % | 28.9 | % | 25.3 | % | 27.4 | % | ||||||||
Net margin |
11.2 | % | 18.5 | % | 15.9 | % | 17.7 | % |
Acme Packet, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 156,962 | $ | 91,669 | ||||
Short-term investments |
181,660 | 179,024 | ||||||
Accounts receivable, net |
51,246 | 34,797 | ||||||
Inventory |
11,779 | 6,662 | ||||||
Deferred product costs |
1,074 | 3,572 | ||||||
Deferred tax asset |
3,814 | 3,814 | ||||||
Income taxes receivable |
13,404 | 9,979 | ||||||
Other current assets |
6,953 | 3,231 | ||||||
Total current assets |
426,892 | 332,748 | ||||||
Long-term investments |
| 5,030 | ||||||
Property and equipment, net |
24,514 | 17,156 | ||||||
Acquired intangible assets, net |
9,095 | 9,468 | ||||||
Goodwill |
3,269 | | ||||||
Deferred tax asset, net |
14,802 | 14,802 | ||||||
Other assets |
425 | 940 | ||||||
Total assets |
$ | 478,997 | $ | 380,144 | ||||
Liabilities and Stockholders Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 7,056 | $ | 7,161 | ||||
Accrued expenses and other current liabilities |
13,494 | 14,629 | ||||||
Deferred revenue |
28,838 | 31,998 | ||||||
Total current liabilities |
49,388 | 53,788 | ||||||
Deferred revenue |
3,471 | 1,546 | ||||||
Deferred rent |
1,820 | 4,265 | ||||||
Stockholders equity: |
||||||||
Common stock |
74 | 71 | ||||||
Additional paid-in capital |
334,254 | 266,114 | ||||||
Treasury stock, at cost |
(37,522 | ) | (37,522 | ) | ||||
Other comprehensive income |
21 | 34 | ||||||
Accumulated retained earnings |
127,491 | 91,848 | ||||||
Total stockholders equity |
424,318 | 320,545 | ||||||
Total liabilities and stockholders equity |
$ | 478,997 | $ | 380,144 | ||||
Condensed Consolidated Statements of Cash Flow
(in thousands)
(unaudited)
(in thousands)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Cash provided by operating activities |
$ | 16,441 | $ | 9,715 | $ | 36,646 | $ | 32,749 | ||||||||
Cash provided by (used in) investing activities |
10,516 | (4,590 | ) | (14,486 | ) | (53,772 | ) | |||||||||
Cash provided by financing activities |
9,434 | 14,894 | 43,133 | 41,194 |
Acme Packet, Inc.
Statement on Use of Non-GAAP Financial Measures and
Reconciliation of Non-GAAP Net Income and Non-GAAP Net Income Per Share
(in thousands, except share and per share data)
(unaudited)
Statement on Use of Non-GAAP Financial Measures and
Reconciliation of Non-GAAP Net Income and Non-GAAP Net Income Per Share
(in thousands, except share and per share data)
(unaudited)
Statement on Use of Non-GAAP Financial Measures:
To supplement its condensed consolidated financial statements presented in accordance with
accounting principles generally accepted in the United States (GAAP), the Company discloses
certain non-GAAP financial measures, including non-GAAP net income, net income on a non-GAAP
basis, non-GAAP net income per share, non-GAAP EPS, net income per share on a non-GAAP basis
and non-GAAP EPS growth rate. These non-GAAP financial measures are not presented in accordance
with GAAP and are not meant to be a substitute for the most directly comparable GAAP measures of
net income, EPS, GAAP EPS growth rate or net income per share. Rather, these non-GAAP
financial measures should be evaluated in conjunction with its most directly comparable GAAP
financial measure and the Companys financial statements as a whole.
Management uses these supplemental non-GAAP financial measures to evaluate performance period
over period, to analyze the underlying trends in the Companys business, to assess its performance
relative to its competitors, and to establish operational goals and forecasts that are used in
allocating resources. Management uses these non-GAAP financial measures because they exclude
stock-based compensation expense which is a non-cash charge and related payroll taxes, amortization
of acquired intangible assets and merger and integration-related costs associated with the
Companys acquisition activities all of which are non-operational costs and expenses. By excluding
stock-based compensation expense and related payroll taxes, amortization of acquired intangible
assets, and merger and integration-related costs, management can compare the Companys operations
to prior periods and to the operations of other companies in its industry who may have materially
different unusual, non-operational charges. Management does not consider any of stock-based
compensation expense and related payroll taxes, amortization of acquired intangible assets, and
merger and integration-related costs to be part of the Companys operating activities or meaningful
in evaluating the Companys past financial performance or future prospects. Management believes
that excluding these items is useful to investors because it is more representative of ongoing
costs and therefore more comparable to historical operations.
Because management uses them, management believes that the disclosure of these non-GAAP
financial measures to investors provides greater transparency and useful information to help the
investor better understand the Companys operating performance and to evaluate the methodology used
by management to evaluate and measure such performance. Notwithstanding their utility to
investors in understanding operational trends, these non-GAAP measures should not be considered
measures of the Companys liquidity. In addition, the Company cautions that its definition of
non-GAAP net income, non-GAAP EPS and non-GAAP net income per share may differ from similar
measures used by other companies and may differ from period to period. Also, in future periods,
management may make other adjustments for expenses and gains that it does not consider reflective
of core operating performance in a particular period thereby modifying its definition of non-GAAP
net income, non-GAAP EPS and non-GAAP net income per share by excluding these other or
additional expenses and gains.
Acme Packet, Inc.
Non-GAAP Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
(unaudited)
Non-GAAP Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenue: |
||||||||||||||||
Product |
$ | 53,077 | $ | 45,328 | $ | 177,507 | $ | 129,452 | ||||||||
Maintenance, support and service |
17,544 | 11,286 | 46,814 | 31,548 | ||||||||||||
Total revenue |
70,621 | 56,614 | 224,321 | 161,000 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Product |
8,066 | 7,311 | 27,882 | 21,172 | ||||||||||||
Maintenance, support and service |
2,474 | 2,268 | 7,055 | 6,201 | ||||||||||||
Total cost of revenue |
10,540 | 9,579 | 34,937 | 27,373 | ||||||||||||
Gross profit |
60,081 | 47,035 | 189,384 | 133,627 | ||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
22,316 | 14,898 | 62,549 | 44,448 | ||||||||||||
Research and development |
10,309 | 7,536 | 29,405 | 22,459 | ||||||||||||
General and administrative |
3,791 | 3,040 | 11,873 | 8,970 | ||||||||||||
Total operating expenses |
36,416 | 25,474 | 103,827 | 75,877 | ||||||||||||
Income from operations |
23,665 | 21,561 | 85,557 | 57,750 | ||||||||||||
Other (expense) income, net |
(53 | ) | 189 | (147 | ) | 354 | ||||||||||
Income before provision for income taxes |
23,612 | 21,750 | 85,410 | 58,104 | ||||||||||||
Provision for income taxes |
8,964 | 8,061 | 31,393 | 21,232 | ||||||||||||
Net income |
$ | 14,648 | $ | 13,689 | $ | 54,017 | $ | 36,872 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.22 | $ | 0.22 | $ | 0.82 | $ | 0.60 | ||||||||
Diluted |
$ | 0.21 | $ | 0.20 | $ | 0.76 | $ | 0.55 | ||||||||
Weighted average number of common
shares used in the calculation of net
income per share: |
||||||||||||||||
Basic |
66,752,669 | 62,772,466 | 66,011,761 | 61,371,085 | ||||||||||||
Diluted |
70,908,590 | 68,426,272 | 70,887,241 | 67,114,486 | ||||||||||||
Margin: |
||||||||||||||||
Gross margin |
85.1 | % | 83.1 | % | 84.4 | % | 83.0 | % | ||||||||
Operating margin |
33.5 | % | 38.1 | % | 38.1 | % | 35.9 | % | ||||||||
Net margin |
20.7 | % | 24.2 | % | 24.1 | % | 22.9 | % |
Reconciliation of Non-GAAP Net Income and Non-GAAP Net Income Per Share for the Three and
Nine Months Ended September 30, 2011 and September 30, 2010 and the Three Months Ended June 30,
2011:
Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation
Three Months Ended September 30, 2011
(in thousands, except share and per share data)
(unaudited)
GAAP to Non-GAAP Reconciliation
Three Months Ended September 30, 2011
(in thousands, except share and per share data)
(unaudited)
Stock-based | ||||||||||||||||||||
compensation | Amortization of | Merger and | ||||||||||||||||||
expense and related | acquired intangible | integration-related | ||||||||||||||||||
GAAP | payroll taxes | assets | costs | Non-GAAP1 | ||||||||||||||||
Revenue: |
||||||||||||||||||||
Product |
$ | 53,077 | $ | | $ | | $ | | $ | 53,077 | ||||||||||
Maintenance, support and service |
17,544 | | | | 17,544 | |||||||||||||||
Total revenue |
70,621 | | | | 70,621 | |||||||||||||||
Cost of revenue: |
||||||||||||||||||||
Product |
8,778 | (327 | ) | (385 | ) | | 8,066 | |||||||||||||
Maintenance, support and service |
3,042 | (568 | ) | | | 2,474 | ||||||||||||||
Total cost of revenue |
11,820 | (895 | ) | (385 | ) | | 10,540 | |||||||||||||
Gross profit |
58,801 | 895 | 385 | | 60,081 | |||||||||||||||
Operating expenses: |
||||||||||||||||||||
Sales and marketing |
27,201 | (4,784 | ) | (101 | ) | | 22,316 | |||||||||||||
Research and development |
13,249 | (2,929 | ) | (11 | ) | | 10,309 | |||||||||||||
General and administrative |
5,406 | (1,615 | ) | | | 3,791 | ||||||||||||||
Merger and integration-related costs |
120 | | | (120 | ) | | ||||||||||||||
Total operating expenses |
45,976 | (9,328 | ) | (112 | ) | (120 | ) | 36,416 | ||||||||||||
Income from operations |
12,825 | 10,223 | 497 | 120 | 23,665 | |||||||||||||||
Other income, net |
(53 | ) | | | | (53 | ) | |||||||||||||
Income before provision for income taxes |
12,772 | 10,223 | 497 | 120 | 23,612 | |||||||||||||||
Provision for income taxes |
4,846 | 3,896 | 179 | 43 | 8,964 | |||||||||||||||
Net income |
$ | 7,926 | $ | 6,327 | $ | 318 | $ | 77 | $ | 14,648 | ||||||||||
Net income per share: |
||||||||||||||||||||
Basic |
$ | 0.12 | $ | 0.09 | $ | 0.01 | $ | 0.00 | $ | 0.22 | ||||||||||
Diluted |
$ | 0.11 | $ | 0.09 | $ | 0.01 | $ | 0.00 | $ | 0.21 | ||||||||||
Weighted average number of common
shares used in the calculation of net
income per share: |
||||||||||||||||||||
Basic |
66,752,669 | 66,752,669 | 66,752,669 | 66,752,669 | 66,752,669 | |||||||||||||||
Diluted |
70,908,590 | 70,908,590 | 70,908,590 | 70,908,590 | 70,908,591 | |||||||||||||||
Margin: |
||||||||||||||||||||
Gross margin |
83.3 | % | 85.1 | % | ||||||||||||||||
Operating margin |
18.2 | % | 33.5 | % | ||||||||||||||||
Net margin |
11.2 | % | 20.7 | % |
Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation
Nine Months Ended September 30, 2011
(in thousands, except share and per share data)
(unaudited)
GAAP to Non-GAAP Reconciliation
Nine Months Ended September 30, 2011
(in thousands, except share and per share data)
(unaudited)
Stock-based | ||||||||||||||||||||
compensation | Amortization of | Merger and | ||||||||||||||||||
expense and related | acquired intangible | integration-related | ||||||||||||||||||
GAAP | payroll taxes | assets | costs | Non-GAAP1 | ||||||||||||||||
Revenue: |
||||||||||||||||||||
Product |
$ | 177,507 | $ | | $ | | $ | | $ | 177,507 | ||||||||||
Maintenance, support and service |
46,814 | | | | 46,814 | |||||||||||||||
Total revenue |
224,321 | | | | 224,321 | |||||||||||||||
Cost of revenue: |
||||||||||||||||||||
Product |
30,090 | (916 | ) | (1,292 | ) | | 27,882 | |||||||||||||
Maintenance, support and service |
8,573 | (1,518 | ) | | | 7,055 | ||||||||||||||
Total cost of revenue |
38,663 | (2,434 | ) | (1,292 | ) | | 34,937 | |||||||||||||
Gross profit |
185,658 | 2,434 | 1,292 | | 189,384 | |||||||||||||||
Operating expenses: |
||||||||||||||||||||
Sales and marketing |
75,640 | (12,804 | ) | (287 | ) | | 62,549 | |||||||||||||
Research and development |
37,262 | (7,823 | ) | (34 | ) | | 29,405 | |||||||||||||
General and administrative |
15,771 | (3,898 | ) | | | 11,873 | ||||||||||||||
Merger and integration-related
costs |
300 | | | (300 | ) | | ||||||||||||||
Total operating expenses |
128,973 | (24,525 | ) | (321 | ) | (300 | ) | 103,827 | ||||||||||||
Income from operations |
56,685 | 26,959 | 1,613 | 300 | 85,557 | |||||||||||||||
Other (expense), net |
(147 | ) | | | | (147 | ) | |||||||||||||
Income before provision for income
taxes |
56,538 | 26,959 | 1,613 | 300 | 85,410 | |||||||||||||||
Provision for income taxes |
20,895 | 9,874 | 581 | 43 | 31,393 | |||||||||||||||
Net income |
$ | 35,643 | $ | 17,085 | $ | 1,032 | $ | 257 | $ | 54,017 | ||||||||||
Net income per share: |
||||||||||||||||||||
Basic |
$ | 0.54 | $ | 0.26 | $ | 0.02 | $ | 0.00 | $ | 0.82 | ||||||||||
Diluted |
$ | 0.50 | $ | 0.24 | $ | 0.02 | $ | 0.00 | $ | 0.76 | ||||||||||
Weighted average number of common
shares used in the calculation of
net income per share: |
||||||||||||||||||||
Basic |
66,011,761 | 66,011,761 | 66,011,761 | 66,011,761 | 66,011,761 | |||||||||||||||
Diluted |
70,887,241 | 70,887,241 | 70,887,241 | 70,887,241 | 70,887,241 | |||||||||||||||
Margin: |
||||||||||||||||||||
Gross margin |
82.8 | % | 84.4 | % | ||||||||||||||||
Operating margin |
25.3 | % | 38.1 | % | ||||||||||||||||
Net margin |
15.9 | % | 24.1 | % |
Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation
Three Months Ended September 30, 2010
(in thousands, except share and per share data)
(unaudited)
GAAP to Non-GAAP Reconciliation
Three Months Ended September 30, 2010
(in thousands, except share and per share data)
(unaudited)
Stock-based | ||||||||||||||||
compensation | Amortization of | |||||||||||||||
expense and related | acquired intangible | |||||||||||||||
GAAP | payroll taxes | assets | Non-GAAP1 | |||||||||||||
Revenue: |
||||||||||||||||
Product |
$ | 45,328 | $ | | $ | | $ | 45,328 | ||||||||
Maintenance, support and service |
11,286 | | | 11,286 | ||||||||||||
Total revenue |
56,614 | | | 56,614 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Product |
7,903 | (213 | ) | (379 | ) | 7,311 | ||||||||||
Maintenance, support and service |
2,556 | (288 | ) | | 2,268 | |||||||||||
Total cost of revenue |
10,459 | (501 | ) | (379 | ) | 9,579 | ||||||||||
Gross profit |
46,155 | 501 | 379 | 47,035 | ||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
17,012 | (2,069 | ) | (45 | ) | 14,898 | ||||||||||
Research and development |
8,896 | (1,349 | ) | (11 | ) | 7,536 | ||||||||||
General and administrative |
3,906 | (866 | ) | | 3,040 | |||||||||||
Total operating expenses |
29,814 | (4,284 | ) | (56 | ) | 25,474 | ||||||||||
Income from operations |
16,341 | 4,785 | 435 | 21,561 | ||||||||||||
Other income, net |
189 | | | 189 | ||||||||||||
Income before provision for income taxes |
16,530 | 4,785 | 435 | 21,750 | ||||||||||||
Provision for income taxes |
6,065 | 1,835 | 161 | 8,061 | ||||||||||||
Net income |
$ | 10,465 | $ | 2,950 | $ | 274 | $ | 13,689 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.17 | $ | 0.04 | $ | 0.01 | $ | 0.22 | ||||||||
Diluted |
$ | 0.15 | $ | 0.04 | $ | 0.01 | $ | 0.20 | ||||||||
Weighted average number of common
shares used in the calculation of net
income per share: |
||||||||||||||||
Basic |
62,772,466 | 62,772,466 | 62,772,466 | 62,772,466 | ||||||||||||
Diluted |
68,426,272 | 68,426,272 | 68,426,272 | 68,426,272 | ||||||||||||
Margin: |
||||||||||||||||
Gross margin |
81.5 | % | 83.1 | % | ||||||||||||
Operating margin |
28.9 | % | 38.1 | % | ||||||||||||
Net margin |
18.5 | % | 24.2 | % |
Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation
Nine Months Ended September 30, 2010
(in thousands, except share and per share data)
(unaudited)
GAAP to Non-GAAP Reconciliation
Nine Months Ended September 30, 2010
(in thousands, except share and per share data)
(unaudited)
Stock-based | ||||||||||||||||
compensation | Amortization of | |||||||||||||||
expense and related | acquired intangible | |||||||||||||||
GAAP | payroll taxes | assets | Non-GAAP1 | |||||||||||||
Revenue: |
||||||||||||||||
Product |
$ | 129,452 | $ | | $ | | $ | 129,452 | ||||||||
Maintenance, support and service |
31,548 | | | 31,548 | ||||||||||||
Total revenue |
161,000 | | | 161,000 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Product |
22,886 | (577 | ) | (1,137 | ) | 21,172 | ||||||||||
Maintenance, support and service |
6,964 | (763 | ) | | 6,201 | |||||||||||
Total cost of revenue |
29,850 | (1,340 | ) | (1,137 | ) | 27,373 | ||||||||||
Gross profit |
131,150 | 1,340 | 1,137 | 133,627 | ||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
50,062 | (5,479 | ) | (135 | ) | 44,448 | ||||||||||
Research and development |
26,235 | (3,743 | ) | (33 | ) | 22,459 | ||||||||||
General and administrative |
10,785 | (1,815 | ) | | 8,970 | |||||||||||
Total operating expenses |
87,082 | (11,037 | ) | (168 | ) | 75,877 | ||||||||||
Income from operations |
44,068 | 12,377 | 1,305 | 57,750 | ||||||||||||
Other income, net |
354 | | | 354 | ||||||||||||
Income before provision for income taxes |
44,422 | 12,377 | 1,305 | 58,104 | ||||||||||||
Provision for income taxes |
15,895 | 4,870 | 467 | 21,232 | ||||||||||||
Net income |
$ | 28,527 | $ | 7,507 | $ | 838 | $ | 36,872 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.46 | $ | 0.12 | $ | 0.01 | $ | 0.60 | ||||||||
Diluted |
$ | 0.43 | $ | 0.11 | $ | 0.01 | $ | 0.55 | ||||||||
Weighted average number of common
shares used in the calculation of net
income per share: |
||||||||||||||||
Basic |
61,371,085 | 61,371,085 | 61,371,085 | 61,371,085 | ||||||||||||
Diluted |
67,114,486 | 67,114,486 | 67,114,486 | 67,114,486 | ||||||||||||
Margin: |
||||||||||||||||
Gross margin |
81.5 | % | 83.0 | % | ||||||||||||
Operating margin |
27.4 | % | 35.9 | % | ||||||||||||
Net margin |
17.7 | % | 22.9 | % |
Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation
Three Months Ended June 30, 2011
(in thousands, except share and per share data)
(unaudited)
GAAP to Non-GAAP Reconciliation
Three Months Ended June 30, 2011
(in thousands, except share and per share data)
(unaudited)
Stock-based | ||||||||||||||||
compensation | Amortization of | |||||||||||||||
expense and related | acquired intangible | |||||||||||||||
GAAP | payroll taxes | assets | Non-GAAP1 | |||||||||||||
Revenue: |
||||||||||||||||
Product |
$ | 64,688 | $ | | $ | | $ | 64,688 | ||||||||
Maintenance, support and service |
15,045 | | | 15,045 | ||||||||||||
Total revenue |
79,733 | | | 79,733 | ||||||||||||
Cost of revenue: |
||||||||||||||||
Product |
11,367 | (327 | ) | (536 | ) | 10,504 | ||||||||||
Maintenance, support and service |
2,525 | (499 | ) | | 2,026 | |||||||||||
Total cost of revenue |
13,892 | (826 | ) | (536 | ) | 12,530 | ||||||||||
Gross profit |
65,841 | 826 | 536 | 67,203 | ||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
24,736 | (4,441 | ) | (140 | ) | 20,155 | ||||||||||
Research and development |
12,719 | (2,652 | ) | (11 | ) | 10,056 | ||||||||||
General and administrative |
5,788 | (1,303 | ) | | 4,485 | |||||||||||
Total operating expenses |
43,243 | (8,396 | ) | (151 | ) | 34,696 | ||||||||||
Income from operations |
22,598 | 9,222 | 687 | 32,507 | ||||||||||||
Other (expense), net |
(196 | ) | | | (196 | ) | ||||||||||
Income before provision for income taxes |
22,402 | 9,222 | 687 | 32,311 | ||||||||||||
Provision for income taxes |
8,394 | 3,241 | 246 | 11,881 | ||||||||||||
Net income |
$ | 14,008 | $ | 5,981 | $ | 441 | $ | 20,430 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.21 | $ | 0.09 | $ | 0.01 | $ | 0.31 | ||||||||
Diluted |
$ | 0.20 | $ | 0.08 | $ | 0.01 | $ | 0.29 | ||||||||
Weighted average number of common
shares used in the calculation of net
income per share: |
||||||||||||||||
Basic |
66,141,163 | 66,141,163 | 66,141,163 | 66,141,163 | ||||||||||||
Diluted |
71,033,614 | 71,033,614 | 71,033,614 | 71,033,614 | ||||||||||||
Margin: |
||||||||||||||||
Gross margin |
82.6 | % | 84.3 | % | ||||||||||||
Operating margin |
28.3 | % | 40.8 | % | ||||||||||||
Net margin |
17.6 | % | 25.6 | % |
Reconciliation of Expected Non-GAAP Net Income and Non-GAAP Net Income Per Share for
the Year Ending December 31, 2011 (unaudited):
Twelve Months Ending | ||||||||
December 31, 2011 | ||||||||
(unaudited) | ||||||||
(in thousands, except per share data) | ||||||||
Low | High | |||||||
Revenue |
$ | 315,000 | $ | 320,000 | ||||
Reconciliation of non-GAAP net income: |
||||||||
Net income |
$ | 55,800 | $ | 58,700 | ||||
Adjustments: |
||||||||
Stock-based compensation expense and related payroll taxes, net of taxes |
24,100 | 24,100 | ||||||
Amortization of acquired intangible assets, net of taxes |
1,200 | 1,200 | ||||||
Merger and integration-related costs |
200 | 200 | ||||||
Non-GAAP net income |
$ | 81,300 | $ | 84,200 | ||||
Reconciliation of diluted non-GAAP net income per share: |
||||||||
Net income per share |
$ | 0.78 | $ | 0.82 | ||||
Adjustments: |
||||||||
Stock-based compensation expense and related payroll taxes, net of taxes |
0.34 | 0.34 | ||||||
Amortization of acquired intangible assets, net of taxes |
0.02 | 0.02 | ||||||
Merger and integration-related costs |
| | ||||||
Non-GAAP net income per share |
$ | 1.14 | $ | 1.18 | ||||
Acme Packet, Inc.
Other Operational Data
(unaudited)
Other Operational Data
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Other operational data: |
||||||||||||||||||||
Depreciation and amortization (in thousands) |
$ | 2,835 | $ | 1,894 | $ | 2,065 | $ | 7,087 | $ | 5,826 | ||||||||||
Capital expenditures (in thousands) |
5,570 | 2,598 | 4,479 | 12,812 | 10,546 | |||||||||||||||
Days sales outstanding |
65 | 60 | 48 | | | |||||||||||||||
Total headcount |
741 | 710 | 529 | | | |||||||||||||||
Quarterly inventory turnover annualized |
3.27 | 5.42 | 5.21 | | |