Polycom,
Inc. (Nasdaq: PLCM), the global leader in open,
standards-based unified communication and collaboration (UC&C), today
reported financial results for the fourth quarter ended December 31,
2013. Polycom reported fourth quarter 2013 net revenues of $348 million,
non-GAAP net income of $25 million and non-GAAP earnings per diluted
share of 16 cents. GAAP net loss for the fourth quarter was $2 million,
or 1 cent per share. A reconciliation of GAAP to non-GAAP results is
provided in the tables at the end of this press release.
“Polycom posted stronger sequential performance in Q4 2013, driven by
on-going strength in UC Personal Devices and improvements in EMEA and
Asia Pacific,” said Peter Leav, Polycom President and Chief Executive
Officer. “In 2014, our goal is to prioritize growth areas within the
business and deliver an improved cost structure that will result in
better overall profitability for Polycom.”
“Polycom generated $168 million in operating cash flow in 2013,” said
Eric Brown, Polycom Chief Operating Officer and Chief Financial Officer.
“We continue to emphasize capital return for shareholders, including our
recently executed $400 million share repurchase program. Polycom
repurchased a total of 45 million shares in 2013.”
On a comparative basis, consolidated financial results were:
($ in millions, except per share data)
|
|
|
|
Q4 2013
|
|
|
Q3 2013
|
|
|
Q4 2012
|
Revenues
|
|
|
|
|
$
|
347.9
|
|
|
|
$
|
336.5
|
|
|
|
$
|
353.0
|
Non-GAAP Net Income
|
|
|
|
|
$
|
25.4
|
|
|
|
$
|
19.3
|
|
|
|
$
|
30.7
|
Non-GAAP EPS
|
|
|
|
|
$
|
0.16
|
|
|
|
$
|
0.11
|
|
|
|
$
|
0.17
|
GAAP Net Income (Loss)
|
|
|
|
|
$
|
(2.0
|
)
|
|
|
$
|
(24.0
|
)
|
|
|
$
|
1.9
|
GAAP EPS
|
|
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On a geographic basis, consolidated net revenues were comprised of:
($ in millions)
|
Q4 2013
|
|
|
Q3 2013
|
|
|
Q4 2012
|
|
|
Sequential
Change
|
|
|
Year-Over-
Year Change
|
Americas
|
$
|
170.6
|
|
|
|
$
|
177.3
|
|
|
|
$
|
175.2
|
|
|
|
-4
|
%
|
|
|
-3
|
%
|
% of revenues
|
|
49
|
%
|
|
|
|
53
|
%
|
|
|
|
50
|
%
|
|
|
|
|
|
|
Europe, Middle East & Africa (EMEA)
|
|
89.2
|
|
|
|
|
80.0
|
|
|
|
|
93.4
|
|
|
|
11
|
%
|
|
|
-5
|
%
|
% of revenues
|
|
26
|
%
|
|
|
|
24
|
%
|
|
|
|
26
|
%
|
|
|
|
|
|
|
Asia Pacific
|
|
88.1
|
|
|
|
|
79.2
|
|
|
|
|
84.4
|
|
|
|
11
|
%
|
|
|
4
|
%
|
% of revenues
|
|
25
|
%
|
|
|
|
23
|
%
|
|
|
|
24
|
%
|
|
|
|
|
|
|
Totals *
|
$
|
347.9
|
|
|
|
$
|
336.5
|
|
|
|
$
|
353.0
|
|
|
|
3
|
%
|
|
|
-1
|
%
|
* may not foot due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By product line, inclusive of its service component, consolidated net
revenues were comprised of:
($ in millions)
|
|
|
Q4 2013
|
|
|
Q3 2013
|
|
|
Q4 2012
|
|
|
Sequential
Change
|
|
|
Year-Over-
Year Change
|
UC Group Systems
|
|
|
$
|
218.1
|
|
|
|
$
|
221.4
|
|
|
|
$
|
238.2
|
|
|
|
-1
|
%
|
|
|
-8
|
%
|
% of revenues
|
|
|
|
63
|
%
|
|
|
|
66
|
%
|
|
|
|
67
|
%
|
|
|
|
|
|
|
UC Personal Devices
|
|
|
|
62.1
|
|
|
|
|
56.9
|
|
|
|
|
46.8
|
|
|
|
9
|
%
|
|
|
33
|
%
|
% of revenues
|
|
|
|
18
|
%
|
|
|
|
17
|
%
|
|
|
|
13
|
%
|
|
|
|
|
|
|
UC Platform
|
|
|
|
67.7
|
|
|
|
|
58.2
|
|
|
|
|
68.0
|
|
|
|
16
|
%
|
|
|
0
|
%
|
% of revenues
|
|
|
|
19
|
%
|
|
|
|
17
|
%
|
|
|
|
19
|
%
|
|
|
|
|
|
|
Totals *
|
|
|
$
|
347.9
|
|
|
|
$
|
336.5
|
|
|
|
$
|
353.0
|
|
|
|
3
|
%
|
|
|
-1
|
%
|
* may not foot due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In Q4 2013, Polycom generated a total of $50 million in operating cash
flow. Operating cash flow on a trailing 12 month basis was $168 million.
Cash and investments at the end of Q4 2013 totaled $584 million.
Earnings Call Details
Polycom will hold a conference call today, January 22, 2014, at 5:00
p.m. EST/2:00 p.m. PST to discuss its fourth quarter 2013 financial
results. Peter Leav, President and CEO, and Eric Brown, Chief Operating
Officer and Chief Financial Officer, will host the call. You may
participate by listening to the webcast at www.polycom.com/investors
or, for callers in the U.S. and Canada, you may participate by calling
1.888.223.4990 and for callers outside of the U.S. and Canada, by
calling 1.303.223.2680. The pass code for the call is “Polycom.” A
replay of the call will also be available at www.polycom.com
or, for callers in the U.S. and Canada, at 1.800.633.8284 and, for
callers outside of the U.S. and Canada, at 1.402.977.9140. The access
number for the replay is 21703637. A replay of the call will be
available on www.polycom.com
for at least three months.
Forward Looking Statements and Risk Factors
This release contains forward-looking statements within the meaning of
the “safe harbor” provisions of the Private Securities Litigation Reform
Act of 1995 regarding future growth, cost reductions, profitability and
capital return for shareholders. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially, including the impact of competition on our product
sales and for our customers and partners and any resulting loss of
business; the impact of increased competition due to consolidation in
our industry or competition from companies that are larger or that have
greater resources than we do; potential fluctuations in results and
future growth rates; risks associated with global economic conditions
and external market factors; the market acceptance of our products and
changing market demands, including demands for differing technologies or
product and services offerings; our ability to successfully integrate
our acquisitions into our business; possible delays in the development,
availability and shipment of new products due to engineering,
manufacturing or other delays; increasing costs and differing uses of
capital; changes in key personnel that may cause disruption to the
business; the impact of restructuring actions; and the impact of global
conflicts that may adversely impact our business. Many of these risks
and uncertainties are discussed in the Company’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2013, and in other reports
filed by Polycom with the SEC. Polycom disclaims any intent or
obligations to update these forward-looking statements.
Polycom reserves the right to modify future product plans at any time.
Products and/or related specifications referenced in this press release
are not guaranteed and will be delivered on a when and if available
basis.
GAAP to non-GAAP Reconciliation
To supplement our consolidated financial statements presented on a GAAP
basis, Polycom uses non-GAAP measures of operating results, net income
and income per share, which are adjusted to exclude certain costs,
expenses, gains, and losses we believe appropriate to enhance an overall
understanding of our past financial performance and also our prospects
for the future. These adjustments to our current period GAAP results are
made with the intent of providing both management and investors a more
complete understanding of Polycom's underlying operational results and
trends and our marketplace performance. For example, the non-GAAP
results are an indication of our baseline performance before gains,
losses, or other charges that are considered by management to be outside
of our core operating results. In addition, these adjusted non-GAAP
results are among the primary indicators management uses as a basis for
our planning and forecasting of future periods. The presentation of this
additional information is not meant to be considered in isolation or as
a substitute for net income or diluted net income per share prepared in
accordance with generally accepted accounting principles in the United
States.
About Polycom
Polycom is the global leader in open, standards-based unified
communications and collaboration (UC&C) solutions for voice and video
collaboration, trusted by more than 415,000 customers around the world.
Polycom solutions are powered by the Polycom® RealPresence® Platform,
comprehensive software infrastructure and rich APIs that interoperate
with the broadest set of communication, business, mobile and cloud
applications and devices to deliver secure face-to-face video
collaboration in any environment. Polycom and its ecosystem of over
7,000 partners provide truly unified communications solutions that
deliver the best user experience, highest multi-vendor interoperability,
and lowest TCO. Visit www.polycom.com
or connect with us on Twitter,
Facebook,
and LinkedIn
to learn how we're pushing the greatness of human collaboration forward.
© 2014 Polycom, Inc. All rights reserved. POLYCOM®, the Polycom logo,
and the names and marks associated with Polycom’s products are
trademarks and/or service marks of Polycom, Inc. and are registered
and/or common law marks in the United States and various other
countries. All other trademarks are property of their respective owners
POLYCOM, INC.
|
Condensed Consolidated Statements of Operations
|
(In thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenues
|
|
$
|
251,044
|
|
|
|
$
|
261,874
|
|
|
|
|
$
|
991,110
|
|
|
|
$
|
1,042,484
|
|
|
Service revenues
|
|
|
96,898
|
|
|
|
|
91,152
|
|
|
|
|
|
377,279
|
|
|
|
|
350,144
|
|
|
|
Total revenues
|
|
|
347,942
|
|
|
|
|
353,026
|
|
|
|
|
|
1,368,389
|
|
|
|
|
1,392,628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenues
|
|
|
112,435
|
|
|
|
|
109,506
|
|
|
|
|
|
422,429
|
|
|
|
|
426,369
|
|
|
Cost of service revenues
|
|
|
38,475
|
|
|
|
|
36,704
|
|
|
|
|
|
153,189
|
|
|
|
|
142,827
|
|
|
|
Total cost of revenues
|
|
|
150,910
|
|
|
|
|
146,210
|
|
|
|
|
|
575,618
|
|
|
|
|
569,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
197,032
|
|
|
|
|
206,816
|
|
|
|
|
|
792,771
|
|
|
|
|
823,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
109,384
|
|
|
|
|
116,312
|
|
|
|
|
|
435,047
|
|
|
|
|
464,353
|
|
|
Research and development
|
|
|
51,250
|
|
|
|
|
55,085
|
|
|
|
|
|
216,032
|
|
|
|
|
208,510
|
|
|
General and administrative
|
|
|
20,141
|
|
|
|
|
25,910
|
|
|
|
|
|
96,602
|
|
|
|
|
98,285
|
|
|
Amortization of purchased intangibles
|
|
|
2,854
|
|
|
|
|
2,512
|
|
|
|
|
|
10,389
|
|
|
|
|
9,830
|
|
|
Restructuring costs
|
|
|
13,831
|
|
|
|
|
195
|
|
|
|
|
|
48,470
|
|
|
|
|
22,024
|
|
|
Acquisition-related expenses
|
|
|
13
|
|
|
|
|
2,271
|
|
|
|
|
|
3,424
|
|
|
|
|
14,064
|
|
|
|
Total operating expenses
|
|
|
197,473
|
|
|
|
|
202,285
|
|
|
|
|
|
809,964
|
|
|
|
|
817,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
(441
|
)
|
|
|
|
4,531
|
|
|
|
|
|
(17,193
|
)
|
|
|
|
6,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(1,481
|
)
|
|
|
|
(281
|
)
|
|
|
|
|
(3,217
|
)
|
|
|
|
(751
|
)
|
|
Interest income and other income /(expense)
|
|
(753
|
)
|
|
|
|
(577
|
)
|
|
|
|
|
(1,794
|
)
|
|
|
|
(3,117
|
)
|
Other expense, net
|
|
|
(2,234
|
)
|
|
|
|
(858
|
)
|
|
|
|
|
(5,011
|
)
|
|
|
|
(3,868
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations before provision for income taxes
|
|
(2,675
|
)
|
|
|
|
3,673
|
|
|
|
|
|
(22,204
|
)
|
|
|
|
2,498
|
|
Provision for (benefit from) income taxes
|
|
(706
|
)
|
|
|
|
39,362
|
|
|
|
|
|
(3,669
|
)
|
|
|
|
39,467
|
|
Loss from continuing operations
|
|
|
(1,969
|
)
|
|
|
|
(35,689
|
)
|
|
|
|
|
(18,535
|
)
|
|
|
|
(36,969
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations of discontinued operations, net of taxes
|
|
-
|
|
|
|
|
2,178
|
|
|
|
|
|
-
|
|
|
|
|
9,888
|
|
|
Gain from sale of discontinued operations, net of taxes
|
|
-
|
|
|
|
|
35,425
|
|
|
|
|
|
459
|
|
|
|
|
35,425
|
|
Net income / (loss)
|
|
$
|
(1,969
|
)
|
|
|
$
|
1,914
|
|
|
|
|
$
|
(18,076
|
)
|
|
|
$
|
8,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from continuing operations
|
$
|
(0.01
|
)
|
|
|
$
|
(0.20
|
)
|
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
(0.21
|
)
|
|
Income per share from discontinued operations, net of taxes
|
$
|
-
|
|
|
|
$
|
0.01
|
|
|
|
|
$
|
-
|
|
|
|
$
|
0.06
|
|
|
Gain per share from sale of discontinued operations, net of taxes
|
$
|
-
|
|
|
|
$
|
0.20
|
|
|
|
|
$
|
-
|
|
|
|
$
|
0.20
|
|
Basic and diluted net income per share
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.01
|
|
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in computation of net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
151,158
|
|
|
|
|
175,519
|
|
|
|
|
|
167,272
|
|
|
|
|
176,878
|
|
|
Diluted
|
|
|
151,158
|
|
|
|
|
175,519
|
|
|
|
|
|
167,272
|
|
|
|
|
176,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share amounts for continuing operations,
discontinued operations and net income, as presented above, are
calculated individually and may not sum due to rounding differences.
*
|
|
|
The tax provision and net income for the three and twelve months
ended December 31, 2012 has been revised from previously issued
financial statements to correct an error. These adjustments were not
considered material to previously issued financial statements.
However, because of the significance of these adjustments to the
current period, the Company has revised the prior periods contained
herein. The adjustments had no impact on income before provision for
income taxes or net cash flows.
|
|
|
|
|
*
|
As a result of the net loss from continuing operations for all
periods presented, all potentially issuable common shares have been
excluded from the diluted shares used in the computation of earnings
per share as their effect is anti-dilutive
|
|
|
|
POLYCOM, INC.
|
Reconciliation of GAAP to Non-GAAP Net Income
|
(In thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
|
$
|
(1,969
|
)
|
|
|
$
|
1,914
|
|
|
|
|
$
|
(18,076
|
)
|
|
|
$
|
8,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from discontinued operations, net of taxes
|
|
|
-
|
|
|
|
|
(2,178
|
)
|
|
|
|
|
-
|
|
|
|
|
(9,888
|
)
|
|
|
Gain from sale of discontinued operations, net of taxes
|
|
|
-
|
|
|
|
|
(35,425
|
)
|
|
|
|
|
(459
|
)
|
|
|
|
(35,425
|
)
|
|
|
Amortization of purchased intangibles
|
|
|
8,471
|
|
|
|
|
4,421
|
|
|
|
|
|
19,750
|
|
|
|
|
17,465
|
|
|
|
Restructuring costs
|
|
|
|
13,831
|
|
|
|
|
195
|
|
|
|
|
|
48,470
|
|
|
|
|
22,024
|
|
|
|
Acquisition-related expenses
|
|
|
|
13
|
|
|
|
|
2,271
|
|
|
|
|
|
3,424
|
|
|
|
|
14,064
|
|
|
|
Stock-based compensation expense
|
|
|
11,165
|
|
|
|
|
23,690
|
|
|
|
|
|
64,465
|
|
|
|
|
88,761
|
|
|
|
Effect of stock-based compensation on warranty rates
|
|
|
126
|
|
|
|
|
128
|
|
|
|
|
|
547
|
|
|
|
|
669
|
|
|
|
Severance costs associated with CFO retirement
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
929
|
|
|
|
Legal costs associated with the indemnification of a former officer
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
236
|
|
|
|
Costs associated with CEO separation and related SEC investigation
|
|
|
802
|
|
|
|
|
-
|
|
|
|
|
|
2,909
|
|
|
|
|
-
|
|
|
|
Tax expense on company reorganization
|
|
|
-
|
|
|
|
|
38,835
|
|
|
|
|
|
-
|
|
|
|
|
38,835
|
|
|
|
Income tax effect of non-GAAP exclusions
|
|
|
(7,053
|
)
|
|
|
|
(3,162
|
)
|
|
|
|
|
(27,141
|
)
|
|
|
|
(24,200
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
$
|
25,386
|
|
|
|
$
|
30,689
|
|
|
|
|
$
|
93,889
|
|
|
|
$
|
121,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
$
|
(0.01
|
)
|
|
|
$
|
0.01
|
|
|
|
|
$
|
(0.11
|
)
|
|
|
$
|
0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.17
|
|
|
|
$
|
0.17
|
|
|
|
|
$
|
0.56
|
|
|
|
$
|
0.69
|
|
|
|
Diluted
|
|
|
$
|
0.16
|
|
|
|
$
|
0.17
|
|
|
|
|
$
|
0.55
|
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in computation of GAAP earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
|
151,158
|
|
|
|
|
175,519
|
|
|
|
|
|
167,272
|
|
|
|
|
176,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in computation of non-GAAP earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
151,158
|
|
|
|
|
175,519
|
|
|
|
|
|
167,272
|
|
|
|
|
176,878
|
|
|
|
Diluted
|
|
|
|
155,310
|
|
|
|
|
177,953
|
|
|
|
|
|
171,008
|
|
|
|
|
178,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: As a result of the GAAP net loss from continuing operations
for all periods presented, all potentially issuable common shares
have been excluded from the diluted shares used in the computation
of GAAP earnings per share as their effect is anti-dilutive
|
|
|
|
POLYCOM, INC.
|
Condensed Consolidated Balance Sheets
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
392,629
|
|
|
$
|
477,073
|
|
|
Short-term investments
|
|
|
134,684
|
|
|
|
197,196
|
|
|
Trade receivables, net
|
|
|
183,369
|
|
|
|
194,654
|
|
|
Inventories
|
|
|
103,309
|
|
|
|
99,960
|
|
|
Deferred taxes
|
|
|
37,085
|
|
|
|
48,916
|
|
|
Prepaid expenses and other current assets
|
|
|
50,352
|
|
|
|
52,539
|
|
|
Total current assets
|
|
|
901,428
|
|
|
|
1,070,338
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
115,157
|
|
|
|
133,319
|
|
Long-term investments
|
|
|
56,372
|
|
|
|
50,333
|
|
Goodwill and purchased intangibles
|
|
|
596,918
|
|
|
|
608,802
|
|
Deferred taxes
|
|
|
51,398
|
|
|
|
28,406
|
|
Other assets
|
|
|
27,757
|
|
|
|
21,238
|
|
|
Total assets
|
|
$
|
1,749,030
|
|
|
$
|
1,912,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
84,640
|
|
|
$
|
89,983
|
|
|
Accrued payroll and related liabilities
|
|
|
40,162
|
|
|
|
39,469
|
|
|
Taxes payable
|
|
|
5,389
|
|
|
|
4,736
|
|
|
Deferred revenue
|
|
|
172,408
|
|
|
|
158,482
|
|
|
Term loan - current
|
|
|
6,250
|
|
|
|
-
|
|
|
Other accrued liabilities
|
|
|
77,744
|
|
|
|
63,018
|
|
|
Total current liabilities
|
|
|
386,593
|
|
|
|
355,688
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Deferred revenue
|
|
|
87,467
|
|
|
|
91,061
|
|
Term loan - non current
|
|
|
242,188
|
|
|
|
-
|
|
Taxes payable
|
|
|
12,419
|
|
|
|
15,598
|
|
Deferred taxes
|
|
|
149
|
|
|
|
236
|
|
Other non-current liabilities
|
|
|
43,849
|
|
|
|
22,079
|
|
|
Total liabilities
|
|
|
772,665
|
|
|
|
484,662
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
976,365
|
|
|
|
1,427,774
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,749,030
|
|
|
$
|
1,912,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The tax provision and net income for the year ended December 31,
2012 have been revised from previously issued financial statements
to correct an error. These adjustments were not considered material
to previously issued financial statements. However, because of the
significance of these adjustments to the current period, the Company
has revised the prior periods contained herein. The adjustments had
no impact on income before provision for income taxes or net cash
flows.
|
|
|
|
POLYCOM, INC.
|
Condensed Consolidated Statements of Cash Flows
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
|
2013
|
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(18,076
|
)
|
|
|
|
$
|
8,344
|
|
Adjustments to reconcile net income
|
|
|
|
|
|
|
to net cash provided by operating activities:
|
|
|
|
|
|
|
Gain from sale of discontinued operations, net of tax
|
|
|
(459
|
)
|
|
|
|
|
(35,425
|
)
|
Tax expense on company reorganization
|
|
|
-
|
|
|
|
|
|
38,836
|
|
Depreciation and amortization
|
|
|
64,975
|
|
|
|
|
|
61,586
|
|
Amortization of purchased intangibles
|
|
|
19,825
|
|
|
|
|
|
20,318
|
|
Amortization of debt issue costs
|
|
|
178
|
|
|
|
|
|
-
|
|
Amortization of discounts and premiums on investments, net
|
|
|
1,816
|
|
|
|
|
|
2,381
|
|
Provision for excess and obsolete inventories
|
|
|
7,390
|
|
|
|
|
|
6,420
|
|
Provision for doubtful accounts
|
|
|
-
|
|
|
|
|
|
1,100
|
|
Stock-based compensation expense
|
|
|
64,465
|
|
|
|
|
|
89,245
|
|
Excess tax benefits from stock-based compensation
|
|
|
(920
|
)
|
|
|
|
|
(9,297
|
)
|
Loss on disposals of property and equipment
|
|
|
5,859
|
|
|
|
|
|
4,080
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities, net of the effect
|
|
|
|
|
|
of acquisitions:
|
|
|
|
|
|
|
Trade receivables
|
|
|
13,809
|
|
|
|
|
|
16,582
|
|
Inventories
|
|
|
(10,739
|
)
|
|
|
|
|
(11,428
|
)
|
Deferred taxes
|
|
|
(14,332
|
)
|
|
|
|
|
(15,933
|
)
|
Prepaid expenses and other assets
|
|
|
(637
|
)
|
|
|
|
|
(7,424
|
)
|
Accounts payable
|
|
|
(5,184
|
)
|
|
|
|
|
(22,901
|
)
|
Taxes payable
|
|
|
(5,848
|
)
|
|
|
|
|
5,123
|
|
Other accrued liabilities
|
|
|
46,320
|
|
|
|
|
|
37,754
|
|
Net cash provided by operating activities
|
|
|
168,442
|
|
|
|
|
|
189,361
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(55,207
|
)
|
|
|
|
|
(67,270
|
)
|
Purchases of investments
|
|
|
(228,238
|
)
|
|
|
|
|
(315,012
|
)
|
Proceeds from sale of investments
|
|
|
45,467
|
|
|
|
|
|
52,286
|
|
Proceeds from maturities of investments
|
|
|
237,499
|
|
|
|
|
|
229,211
|
|
Net cash received from sale of discontinued operations
|
|
|
556
|
|
|
|
|
|
50,411
|
|
Net cash paid in purchase acquisitions
|
|
|
(7,974
|
)
|
|
|
|
|
(4,583
|
)
|
Net cash used in investing activities
|
|
|
(7,897
|
)
|
|
|
|
|
(54,957
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
|
|
|
|
under employee option and stock purchase plans
|
|
|
23,326
|
|
|
|
|
|
25,832
|
|
Proceeds from term loan, net
|
|
|
247,349
|
|
|
|
|
|
-
|
|
Payment on debt
|
|
|
(1,562
|
)
|
|
|
|
|
-
|
|
Repurchase of common stock
|
|
|
(515,022
|
)
|
|
|
|
|
(67,901
|
)
|
Excess tax benefits from stock-based compensation
|
|
|
920
|
|
|
|
|
|
9,297
|
|
Net cash used in financing activities
|
|
|
(244,989
|
)
|
|
|
|
|
(32,772
|
)
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
(84,444
|
)
|
|
|
|
|
101,632
|
|
Cash and cash equivalents, beginning of period
|
|
|
477,073
|
|
|
|
|
|
375,441
|
|
Cash and cash equivalents, end of period
|
|
$
|
392,629
|
|
|
|
|
$
|
477,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The tax provision and net income for the three and twelve months
ended December 31, 2012 has been revised from previously issued
financial statements to correct an error. These adjustments were
not considered material to previously issued financial
statements. However, because of the significance of these
adjustments to the current period, the Company has revised the
prior periods contained herein. The adjustments had no impact on
income before provision for income taxes or net cash flows.
Certain other prior period amounts have also been reclassified to
conform to the current period presentation.
|
|
|
|
POLYCOM, INC.
|
Selected Summary Data
|
(In millions except per share amounts and headcount)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
Balance Sheet Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and investments
|
|
$
|
584
|
|
|
|
$
|
954
|
|
|
|
$
|
725
|
|
|
|
|
Number of shares outstanding
|
|
|
135
|
|
|
|
|
170
|
|
|
|
|
175
|
|
|
|
|
Cash and investments per share
|
|
$
|
4.32
|
|
|
|
$
|
5.60
|
|
|
|
$
|
4.13
|
|
|
|
|
Debt
|
|
$
|
248
|
|
|
|
$
|
250
|
|
|
|
$
|
0
|
|
|
|
|
Operating cash flow - quarterly
|
|
$
|
50
|
|
|
|
$
|
37
|
|
|
|
$
|
66
|
|
|
|
|
Operating cash flow - trailing 12 months
|
|
$
|
168
|
|
|
|
$
|
185
|
|
|
|
$
|
189
|
|
|
|
|
DSO (Days Sales Outstanding)
|
|
|
48
|
|
|
|
|
47
|
|
|
|
|
50
|
|
|
|
|
Inventory turns - GAAP
|
|
|
5.8
|
|
|
|
|
5.3
|
|
|
|
|
5.7
|
|
|
|
|
Inventory turns - non-GAAP
|
|
|
5.5
|
|
|
|
|
5.1
|
|
|
|
|
5.7
|
|
|
|
|
Deferred revenues
|
|
$
|
260
|
|
|
|
$
|
260
|
|
|
|
$
|
250
|
|
|
|
|
Share repurchases:
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date share purchases - shares
|
|
|
35.4
|
|
|
|
|
1.7
|
|
|
|
|
0.5
|
|
|
|
|
Quarter-to-date share repurchases - dollars
|
|
$
|
400
|
|
|
|
$
|
18
|
|
|
|
$
|
5
|
|
|
|
|
Year-to-date share purchases - shares
|
|
|
45
|
|
|
|
|
10
|
|
|
|
|
5
|
|
|
|
|
Year-to-date share repurchases - dollars
|
|
$
|
502
|
|
|
|
$
|
102
|
|
|
|
$
|
55
|
|
|
|
|
Remaining authorization for share repurchases (1)
|
|
$
|
-
|
|
|
|
$
|
400
|
|
|
|
$
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending headcount
|
|
|
3,774
|
|
|
|
|
3,789
|
|
|
|
|
3,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
Income Statement Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
348
|
|
|
|
$
|
336
|
|
|
|
$
|
353
|
|
|
|
|
Gross margin
|
|
|
56.6
|
%
|
|
|
|
58.0
|
%
|
|
|
|
58.6
|
%
|
|
|
|
Operating expenses
|
|
$
|
197
|
|
|
|
$
|
217
|
|
|
|
$
|
202
|
|
|
|
|
Operating margin
|
|
|
-0.1
|
%
|
|
|
|
-6.6
|
%
|
|
|
|
1.3
|
%
|
|
|
|
Diluted EPS
|
|
$
|
(0.01
|
)
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
348
|
|
|
|
$
|
336
|
|
|
|
$
|
353
|
|
|
|
|
Gross margin
|
|
|
58.8
|
%
|
|
|
|
59.0
|
%
|
|
|
|
59.9
|
%
|
|
|
|
Operating expenses
|
|
$
|
171
|
|
|
|
$
|
173
|
|
|
|
$
|
176
|
|
|
|
|
Operating margin
|
|
|
9.8
|
%
|
|
|
|
7.7
|
%
|
|
|
|
10.0
|
%
|
|
|
|
Diluted EPS
|
|
$
|
0.16
|
|
|
|
$
|
0.11
|
|
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
|
|
Polycom is not obligated to purchase any specific number of
shares under its Share Repurchase Program and the program may be
modified, suspended or discontinued at any time.
|
|
|
POLYCOM, INC.
|
Reconciliations of GAAP Measures to Non-GAAP Measures
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of revenues used in inventory turns
|
|
|
|
|
$
|
150,910
|
|
|
|
$
|
146,210
|
|
|
|
|
$
|
575,618
|
|
|
|
$
|
569,196
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
|
(1,892
|
)
|
|
|
|
(2,532
|
)
|
|
|
|
|
(8,744
|
)
|
|
|
|
(10,204
|
)
|
|
|
Effect of stock-based compensation on warranty rates
|
|
|
|
|
|
(126
|
)
|
|
|
|
(128
|
)
|
|
|
|
|
(547
|
)
|
|
|
|
(669
|
)
|
|
|
Amortization of purchased intangibles
|
|
|
|
|
|
(5,617
|
)
|
|
|
|
(1,909
|
)
|
|
|
|
|
(9,361
|
)
|
|
|
|
(7,635
|
)
|
|
Non-GAAP cost of revenues used in inventory turns
|
|
|
|
|
$
|
143,275
|
|
|
|
$
|
141,641
|
|
|
|
|
$
|
556,966
|
|
|
|
$
|
550,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
|
|
$
|
197,032
|
|
|
|
$
|
206,816
|
|
|
|
|
$
|
792,771
|
|
|
|
$
|
823,432
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
|
1,892
|
|
|
|
|
2,532
|
|
|
|
|
|
8,744
|
|
|
|
|
10,204
|
|
|
|
Effect of stock-based compensation on warranty rates
|
|
|
|
|
|
126
|
|
|
|
|
128
|
|
|
|
|
|
547
|
|
|
|
|
669
|
|
|
|
Amortization of purchased intangibles
|
|
|
|
|
|
5,617
|
|
|
|
|
1,909
|
|
|
|
|
|
9,361
|
|
|
|
|
7,635
|
|
|
Non-GAAP gross profit
|
|
|
|
|
$
|
204,667
|
|
|
|
$
|
211,385
|
|
|
|
|
$
|
811,423
|
|
|
|
$
|
841,940
|
|
|
Non-GAAP gross margin
|
|
|
|
|
|
58.8
|
%
|
|
|
|
59.9
|
%
|
|
|
|
|
59.3
|
%
|
|
|
|
60.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP sales and marketing expense
|
|
|
|
|
$
|
109,384
|
|
|
|
$
|
116,312
|
|
|
|
|
$
|
435,047
|
|
|
|
$
|
464,353
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
|
(6,828
|
)
|
|
|
|
(9,722
|
)
|
|
|
|
|
(26,570
|
)
|
|
|
|
(36,791
|
)
|
|
Non-GAAP sales and marketing expense
|
|
|
|
|
$
|
102,556
|
|
|
|
$
|
106,590
|
|
|
|
|
$
|
408,477
|
|
|
|
$
|
427,562
|
|
|
Non-GAAP sales and marketing expense as percent of revenues
|
|
|
|
|
|
29.5
|
%
|
|
|
|
30.2
|
%
|
|
|
|
|
29.9
|
%
|
|
|
|
30.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development expense
|
|
|
|
|
$
|
51,250
|
|
|
|
$
|
55,085
|
|
|
|
|
$
|
216,032
|
|
|
|
$
|
208,510
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
|
(3,056
|
)
|
|
|
|
(5,387
|
)
|
|
|
|
|
(15,634
|
)
|
|
|
|
(20,195
|
)
|
|
Non-GAAP research and development expense
|
|
|
|
|
$
|
48,194
|
|
|
|
$
|
49,698
|
|
|
|
|
$
|
200,398
|
|
|
|
$
|
188,315
|
|
|
Non-GAAP research and development expense as percent of revenues
|
|
|
|
|
|
13.9
|
%
|
|
|
|
14.1
|
%
|
|
|
|
|
14.6
|
%
|
|
|
|
13.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP general and administrative expense
|
|
|
|
|
$
|
20,141
|
|
|
|
$
|
25,910
|
|
|
|
|
$
|
96,602
|
|
|
|
$
|
98,285
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
|
611
|
|
|
|
|
(6,049
|
)
|
|
|
|
|
(13,517
|
)
|
|
|
|
(21,571
|
)
|
|
|
Severance costs associated with CFO retirement
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(929
|
)
|
|
|
Legal costs associated with the indemnification of a former officer
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(236
|
)
|
|
|
Costs associated with CEO separation and related SEC investigation
|
|
|
|
|
|
(802
|
)
|
|
|
|
-
|
|
|
|
|
|
(2,909
|
)
|
|
|
|
-
|
|
|
Non-GAAP general and administrative expense
|
|
|
|
|
$
|
19,950
|
|
|
|
$
|
19,861
|
|
|
|
|
$
|
80,176
|
|
|
|
$
|
75,549
|
|
|
Non-GAAP general and administrative expense as percent of revenues
|
|
|
|
|
|
5.7
|
%
|
|
|
|
5.6
|
%
|
|
|
|
|
5.9
|
%
|
|
|
|
5.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP total operating expenses
|
|
|
|
|
$
|
197,473
|
|
|
|
$
|
202,285
|
|
|
|
|
$
|
809,964
|
|
|
|
$
|
817,066
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
|
(9,273
|
)
|
|
|
|
(21,158
|
)
|
|
|
|
|
(55,721
|
)
|
|
|
|
(78,557
|
)
|
|
|
Amortization of purchased intangibles
|
|
|
|
|
|
(2,854
|
)
|
|
|
|
(2,512
|
)
|
|
|
|
|
(10,389
|
)
|
|
|
|
(9,830
|
)
|
|
|
Restructuring costs
|
|
|
|
|
|
(13,831
|
)
|
|
|
|
(195
|
)
|
|
|
|
|
(48,470
|
)
|
|
|
|
(22,024
|
)
|
|
|
Acquisition-related expenses
|
|
|
|
|
|
(13
|
)
|
|
|
|
(2,271
|
)
|
|
|
|
|
(3,424
|
)
|
|
|
|
(14,064
|
)
|
|
|
Severance costs associated with CFO retirement
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(929
|
)
|
|
|
Legal costs associated with the indemnification of a former officer
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
(236
|
)
|
|
|
Costs associated with CEO separation and related SEC investigation
|
|
|
|
|
|
(802
|
)
|
|
|
|
-
|
|
|
|
|
|
(2,909
|
)
|
|
|
|
-
|
|
|
Non-GAAP total operating expenses
|
|
|
|
|
$
|
170,700
|
|
|
|
$
|
176,149
|
|
|
|
|
$
|
689,051
|
|
|
|
$
|
691,426
|
|
|
Non-GAAP total operating expenses as percent of revenues
|
|
|
|
|
|
49.1
|
%
|
|
|
|
49.9
|
%
|
|
|
|
|
50.4
|
%
|
|
|
|
49.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss)
|
|
|
|
|
$
|
(441
|
)
|
|
|
$
|
4,531
|
|
|
|
|
$
|
(17,193
|
)
|
|
|
$
|
6,366
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
|
11,165
|
|
|
|
|
23,690
|
|
|
|
|
|
64,465
|
|
|
|
|
88,761
|
|
|
|
Effect of stock-based compensation on warranty rates
|
|
|
|
|
|
126
|
|
|
|
|
128
|
|
|
|
|
|
547
|
|
|
|
|
669
|
|
|
|
Amortization of purchased intangibles
|
|
|
|
|
|
8,471
|
|
|
|
|
4,421
|
|
|
|
|
|
19,750
|
|
|
|
|
17,465
|
|
|
|
Restructuring costs
|
|
|
|
|
|
13,831
|
|
|
|
|
195
|
|
|
|
|
|
48,470
|
|
|
|
|
22,024
|
|
|
|
Acquisition-related expenses
|
|
|
|
|
|
13
|
|
|
|
|
2,271
|
|
|
|
|
|
3,424
|
|
|
|
|
14,064
|
|
|
|
Severance costs associated with CFO retirement
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
929
|
|
|
|
Legal costs associated with the indemnification of a former officer
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
236
|
|
|
|
Costs associated with CEO separation and related SEC investigation
|
|
|
|
|
|
802
|
|
|
|
|
-
|
|
|
|
|
|
2,909
|
|
|
|
|
-
|
|
|
Non-GAAP operating income
|
|
|
|
|
$
|
33,967
|
|
|
|
$
|
35,236
|
|
|
|
|
$
|
122,372
|
|
|
|
$
|
150,514
|
|
|
Non-GAAP operating margin
|
|
|
|
|
|
9.8
|
%
|
|
|
|
10.0
|
%
|
|
|
|
|
8.9
|
%
|
|
|
|
10.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POLYCOM, INC.
|
Summary of Stock-Based Compensation Expense
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
2012
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales - product
|
|
|
|
$
|
640
|
|
|
|
$
|
873
|
|
|
|
$
|
2,892
|
|
|
$
|
3,593
|
|
|
Cost of sales - service
|
|
|
|
|
1,252
|
|
|
|
|
1,659
|
|
|
|
|
5,852
|
|
|
|
6,611
|
|
|
Stock-based compensation expense in cost of sales
|
|
|
|
|
1,892
|
|
|
|
|
2,532
|
|
|
|
|
8,744
|
|
|
|
10,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
|
|
6,828
|
|
|
|
|
9,722
|
|
|
|
|
26,570
|
|
|
|
36,791
|
|
|
Research and development
|
|
|
|
|
3,056
|
|
|
|
|
5,387
|
|
|
|
|
15,634
|
|
|
|
20,195
|
|
|
General and administrative
|
|
|
|
|
(611
|
)
|
|
|
|
6,049
|
|
|
|
|
13,517
|
|
|
|
21,571
|
|
|
Stock-based compensation expense in operating expenses
|
|
|
|
|
9,273
|
|
|
|
|
21,158
|
|
|
|
|
55,721
|
|
|
|
78,557
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stock-based compensation expense
|
|
|
|
$
|
11,165
|
|
|
|
$
|
23,690
|
|
|
|
$
|
64,465
|
|
|
$
|
88,761
|
Copyright Business Wire 2014