Investor Relations: Brian Norris Acme Packet +1 781-328-4790 bnorris@acmepacket.com |
Industry Analysts / Trade and Business Press: Carmen Harris Connect2 Communications +1 919-554-3532 carmen@connect2comm.com |
• | Record quarterly revenue of $32.9 million, up 6% sequentially; | ||
• | Record cash provided by operating activities of $14.0 million and record cash and equivalents of $155.6 million; and | ||
• | GAAP EPS of $0.03 and non-GAAP1 EPS of $0.07. |
Year Ended December 31, 2009 | ||||||||
Previous | New | |||||||
in Millions except Per Share | Business | Business | ||||||
Amounts and Tax Rates | Outlook* | Outlook | ||||||
Total revenue |
$ | 128.0-$132.0 | $ | 130.0-$134.0 | ||||
Non-GAAP1 diluted EPS |
$ | 0.24-$0.28 | $ | 0.28-$0.30 | ||||
Non-GAAP1 tax rate |
35% | No Change | ||||||
Diluted share count |
62.0 | No Change |
* | As previously issued by the Company on April 30, 2009, which included the forecasted impact of the acquisition of Covergence Inc. |
1 | The Company uses the financial measures “non-GAAP net income” and “non-GAAP net income per share” to supplement its consolidated financial statements, which are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). The presentation of non-GAAP net income and non-GAAP net income per share is not meant to be a substitute for “net income” or “net income per share”, presented in accordance with GAAP, but rather should be evaluated in conjunction with net income and net income per share. The Company’s management believes that the presentation of non-GAAP net income and non-GAAP net income per share provides useful information to investors because this financial measure excludes stock-based compensation expense which is a non-cash charge. Non-GAAP net income and non-GAAP net income per share for the three and six months ended June 30, 2009 also excludes amortization of acquired intangible assets and merger and integration-related costs associated with the Company’s acquisition of Covergence Inc. on April 30, 2009. By excluding stock-based compensation expense, amortization of acquired intangible assets and merger and integration-related expenses, management can compare the Company’s ongoing operations to prior periods and to the ongoing operations of other companies in its industry who may have materially different unusual charges. Management does not consider any of stock-based compensation expense, amortization of acquired intangible assets and merger and integration-related expenses to be part of the Company’s ongoing operating activities or meaningful in evaluating the Company’s 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. Non-GAAP net income and non-GAAP net income per share are primary financial indicators that the Company’s management uses to evaluate the Company’s financial results and forecast anticipated financial results for future periods. Management also uses these non-GAAP figures to make financial and operational decisions as these numbers exclude non-operational activities. These non-GAAP measures should not be considered measures of the Company’s liquidity. The Company’s definition of “non-GAAP net income” and/or “non-GAAP net income per share” may differ from similar measures used by other companies and may differ from period to period. Subject to the review and approval of the audit committee of the Board of Directors, management may make other adjustments for expenses and gains that it does not consider reflective of core operating performance in a particular period and may modify “non-GAAP net income” and/or “non-GAAP net income per share” by excluding these expenses and gains. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue: |
||||||||||||||||
Product |
$ | 24,243 | $ | 19,944 | $ | 47,294 | $ | 46,468 | ||||||||
Maintenance, support and service |
8,618 | 5,717 | 16,554 | 10,873 | ||||||||||||
Total revenue |
32,861 | 25,661 | 63,848 | 57,341 | ||||||||||||
Cost of revenue (2) (3): |
||||||||||||||||
Product |
4,870 | 4,285 | 10,102 | 9,233 | ||||||||||||
Maintenance, support and service |
1,207 | 1,471 | 2,130 | 2,607 | ||||||||||||
Total cost of revenue |
6,077 | 5,756 | 12,232 | 11,840 | ||||||||||||
Gross profit |
26,784 | 19,905 | 51,616 | 45,501 | ||||||||||||
Operating expenses (2) (3): |
||||||||||||||||
Sales and marketing |
12,608 | 11,232 | 23,944 | 21,776 | ||||||||||||
Research and development |
7,078 | 5,975 | 13,242 | 11,376 | ||||||||||||
General and administrative |
3,288 | 2,069 | 6,421 | 4,753 | ||||||||||||
Merger and integration-related costs |
1,102 | — | 1,102 | — | ||||||||||||
Total operating expenses |
24,076 | 19,276 | 44,709 | 37,905 | ||||||||||||
Income from operations |
2,708 | 629 | 6,907 | 7,596 | ||||||||||||
Other income, net |
56 | 762 | 122 | 2,054 | ||||||||||||
Income before provision for income taxes |
2,764 | 1,391 | 7,029 | 9,650 | ||||||||||||
Provision for income taxes |
1,071 | 575 | 2,578 | 3,796 | ||||||||||||
Net income |
$ | 1,693 | $ | 816 | $ | 4,451 | $ | 5,854 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.03 | $ | 0.01 | $ | 0.08 | $ | 0.10 | ||||||||
Diluted |
$ | 0.03 | $ | 0.01 | $ | 0.07 | $ | 0.09 | ||||||||
Weighted average number of common shares used in
net income per share calculation: |
||||||||||||||||
Basic |
56,941,547 | 60,169,035 | 55,849,118 | 60,299,199 | ||||||||||||
Diluted |
61,418,408 | 65,018,064 | 59,817,024 | 65,246,611 | ||||||||||||
(2) Amounts include stock-based compensation
expense, as follows: |
||||||||||||||||
Cost of product revenue |
$ | 130 | $ | 106 | $ | 256 | $ | 213 | ||||||||
Cost of maintenance, support and service revenue |
140 | 68 | 261 | 179 | ||||||||||||
Sales and marketing |
1,190 | 872 | 2,276 | 1,765 | ||||||||||||
Research and development |
885 | 657 | 1,603 | 770 | ||||||||||||
General and administrative |
268 | 148 | 526 | 386 | ||||||||||||
(3) Amounts include amortization of acquired
intangible assets, as follows: |
||||||||||||||||
Cost of product revenue |
$ | 139 | $ | — | $ | 139 | $ | — | ||||||||
Sales and marketing |
9 | — | 9 | — | ||||||||||||
Research and development |
10 | — | 10 | — |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Reconciliation of non-GAAP net income (1): |
||||||||||||||||
Net income |
$ | 1,693 | $ | 816 | $ | 4,451 | $ | 5,854 | ||||||||
Adjustments: |
||||||||||||||||
Stock-based compensation expense, net of taxes |
1,826 | 1,224 | 3,390 | 2,257 | ||||||||||||
Amortization of acquired intangible assets |
103 | — | 103 | — | ||||||||||||
Merger and integration-related costs, net of taxes |
903 | — | 903 | — | ||||||||||||
Non-GAAP net income (1) |
$ | 4,525 | $ | 2,040 | $ | 8,847 | $ | 8,111 | ||||||||
Non-GAAP net income per share (1): |
||||||||||||||||
Basic |
$ | 0.08 | $ | 0.03 | $ | 0.16 | $ | 0.13 | ||||||||
Diluted |
$ | 0.07 | $ | 0.03 | $ | 0.15 | $ | 0.12 | ||||||||
Other operational data: |
||||||||||||||||
Depreciation and amortization |
$ | 1,186 | $ | 1,291 | $ | 2,113 | $ | 2,623 | ||||||||
Capital expenditures |
$ | 1,082 | $ | 1,268 | $ | 2,191 | $ | 2,165 |
(1) | The Company uses the financial measures “non-GAAP net income” and “non-GAAP net income per share” to supplement its consolidated financial statements, which are presented in accordance with accounting principles generally accepted in the United States (“GAAP”). The presentation of non-GAAP net income and non-GAAP net income per share is not meant to be a substitute for “net income” or “net income per share”, presented in accordance with GAAP, but rather should be evaluated in conjunction with net income and net income per share. The Company’s management believes that the presentation of non-GAAP net income and non-GAAP net income per share provides useful information to investors because this financial measure excludes stock-based compensation expense which is a non-cash charge. Non-GAAP net income and non-GAAP net income per share for the three and six months ended June 30, 2009 also excludes amortization of acquired intangible assets and merger and integration-related costs associated with the Company’s acquisition of Covergence Inc. on April 30, 2009. By excluding stock-based compensation expense, amortization of acquired intangible assets and merger and integration-related expenses, management can compare the Company’s ongoing operations to prior periods and to the ongoing operations of other companies in its industry who may have materially different unusual charges. Management does not consider any of stock-based compensation expense, amortization of acquired intangible assets and merger and integration-related expenses to be part of the Company’s ongoing operating activities or meaningful in evaluating the Company’s 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. Non-GAAP net income and non-GAAP net income per share are primary financial indicators that the Company’s management uses to evaluate the Company’s financial results and forecast anticipated financial results for future periods. Management also uses these non-GAAP figures to make financial and operational decisions as these numbers exclude non-operational activities. These non-GAAP measures should not be considered measures of the Company’s liquidity. The Company’s definition of “non-GAAP net income” and/or “non-GAAP net income per share” may differ from similar measures used by other companies and may differ from period to period. Subject to the review and approval of the audit committee of the Board of Directors, management may make other adjustments for expenses and gains that it does not consider reflective of core operating performance in a particular period and may modify “non-GAAP net income” and/or “non-GAAP net income per share” by excluding these expenses and gains. |
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 155,623 | $ | 125,723 | ||||
Accounts receivable, net |
19,954 | 26,163 | ||||||
Inventory |
7,888 | 7,008 | ||||||
Deferred tax asset |
1,684 | 1,262 | ||||||
Other current assets |
4,321 | 1,362 | ||||||
Total current assets |
189,470 | 161,518 | ||||||
Property and equipment, net |
6,475 | 5,485 | ||||||
Intangible assets, net |
10,809 | — | ||||||
Other assets |
237 | 467 | ||||||
Deferred tax asset, net |
10,576 | 6,540 | ||||||
Total assets |
$ | 217,567 | $ | 174,010 | ||||
Liabilities and Stockholders’ Equity |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 2,652 | $ | 3,364 | ||||
Accrued expenses and other current liabilities |
9,484 | 6,865 | ||||||
Deferred revenue |
23,344 | 15,283 | ||||||
Total current liabilities |
35,480 | 25,512 | ||||||
Deferred rent |
— | 96 | ||||||
Deferred revenue |
2,453 | 1,591 | ||||||
Stockholders’ equity: |
||||||||
Common stock |
65 | 61 | ||||||
Treasury stock, at cost |
(37,522 | ) | (37,522 | ) | ||||
Additional paid-in capital |
180,935 | 152,567 | ||||||
Retained earnings |
36,156 | 31,705 | ||||||
Total stockholders’ equity |
179,634 | 146,811 | ||||||
Total liabilities and stockholders’ equity |
$ | 217,567 | $ | 174,010 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Cash provided by operating activities |
$ | 14,031 | $ | 6,039 | $ | 25,050 | $ | 19,078 | ||||||||
Cash provided by (used in) investing activities |
4,757 | (1,268 | ) | 3,648 | (2,165 | ) | ||||||||||
Cash provided by (used in) financing activities |
928 | (1,617 | ) | 1,202 | (5,422 | ) |