EX-99.1 2 b76539exv99w1.htm EX-99.1 PRESS RELEASE DATED JULY 30, 2009 exv99w1
Exhibit 99.1
(ACME PACKET LOGO)
     
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
Acme Packet Reports Record Results for Second Quarter of 2009
— Company Posts Record Revenue of $32.9 Million and Non-GAAP1 EPS of $0.07 —
— Company Raises Revenue and Earnings Outlook for 2009 —
BURLINGTON, MA. — July 30, 2009 — Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, today announced results for the second quarter ended June 30, 2009 and raised its business outlook for the remainder of 2009. Summary financial results for the second quarter of 2009 are as follows:
    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.
Results for the Second Quarter of 2009
Total revenue for the second quarter of 2009 was $32.9 million, compared to $25.7 million in the second quarter of last year and $31.0 million in the first quarter of 2009. Net income for the second quarter of 2009 was $1.7 million, or $0.03 per share on a diluted basis, compared to $0.8 million, or $0.01 per share on a diluted basis, in the same period last year, and $2.8 million, or $0.05 per share on a diluted basis, in the first quarter of 2009. Net income on a non-GAAP1 basis for the second quarter of 2009 was $4.5 million, or $0.07 per share on a diluted basis, compared to $2.0 million, or $0.03 per share on a diluted basis, in the same period last year, and $4.3 million, or $0.07 per share on a diluted basis, in the first quarter of 2009. Non-GAAP net income1 differs from GAAP net income in the second quarter of 2009 as it excludes stock-based compensation expense, amortization of acquired intangible assets, and merger and integration-related costs, all net of tax, of $2.9 million, or approximately $0.04 per share.

 


 

Non-GAAP net income1 differs from GAAP net income in prior periods as it excludes stock-based compensation expense, net of tax, of $1.2 million, or approximately $0.03 per share, in the second quarter of 2008 and $1.6 million, or approximately $0.02 per share, in the first quarter of 2009. A reconciliation of GAAP to non-GAAP1 results is included at the end of this press release.
Results for the First Six Months of 2009
Total revenue for the first six months of 2009 was $63.8 million compared to $57.3 million in the same period last year. Net income for the first six months of 2009 was $4.5 million, or $0.07 per share on a diluted basis, compared to $5.9 million, or $0.09 per share on a diluted basis, in the same period last year. Net income on a non-GAAP1 basis for the first six months of 2009 was $8.8 million, or $0.15 per share on a diluted basis, compared to $8.1 million, or $0.12 per share on a diluted basis, in the same period last year. Non-GAAP net income1 differs from GAAP net income in the first six months of 2009 as it excludes stock-based compensation expense, amortization of acquired intangible assets, and merger and integration-related costs, all net of tax, of $4.4 million, or approximately $0.08 per share. Non-GAAP net income1 differs from GAAP net income in the first six months of 2008 as it excludes stock-based compensation expense, net of tax, of $2.3 million, or approximately $0.03 per share. A reconciliation of GAAP to non-GAAP1 results is included at the end of this press release.
Company Raises Business Outlook for 2009
The Company today raised its full year business outlook for 2009. The Company’s outlook is based on the current indications for its business, which may change at any time.
                 
    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.

 


 

Company to Host Live Conference Call and Webcast
The Company’s management team will host a live conference call and webcast at 5:00 p.m. eastern daylight savings time today to discuss the financial results as well as management’s outlook for the business. The conference call may be accessed in the United States by dialing (800) 230-1059 and using access code “APKT”. The conference call may be accessed outside of the United States by dialing (612) 332-0107 and using access code “APKT”. The conference call will be simultaneously webcast on the Company’s 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 (800) 475-6701 and using access code 106559 or by accessing the webcast replay on the Company’s investor relations website.
About Acme Packet, Inc.
Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, enables the delivery of trusted, first-class interactive communications—voice, video and multimedia sessions—and data services across IP network borders. Our Net-Net family of session border controllers, multiservice security gateways and session routing proxies supports multiple applications in service provider, enterprise and contact center networks—from VoIP trunking to hosted enterprise and residential services to fixed-mobile convergence. They satisfy critical security, service assurance and regulatory requirements in wireline, cable and wireless networks; and support multiple protocols—SIP, H.323, MGCP/NCS, H.248 and RTSP—and multiple border points—service provider access and interconnect, and enterprise access and trunking. Our products have been selected by more than 830 customers in 95 countries. They include 48 of the top 50, and 89 of the top 100 service providers in the world; and 8 of the Fortune 25. For more information, contact us at +1 781.328.4400, or visit www.acmepacket.com.
Acme Packet, Inc. Safe Harbor Statement
Statements contained herein that are not historical fact (including those in the section “Company Raises Business Outlook for 2009”) 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, among other things, to expected financial and operating results and to 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: difficulties expanding its customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; poor product sales; long sales cycles; difficulty developing new products; difficulty in relationships with vendors and partners; difficulties in integrating an acquired business; higher risk in international operations; difficulty managing rapid growth; difficulty managing its financial performance; its ability to hire and retain employees and appropriately staff its operations; the spending of the proceeds of its capital raising activities; its cash needs; and 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 Company’s recent filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.
 
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.

 


 

Acme Packet, Inc.
Condensed Consolidated Statements of Income
(in thousands, except share and per share data)
                                 
    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        

 


 

Acme Packet, Inc.
(in thousands, except per share data)
                                 
    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.

 


 

Acme Packet, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
                 
    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  
 
           
Condensed Consolidated Statements of Cash Flow
(in thousands)
                                 
    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 )