Total Revenue of $50.9 Million; Service Revenue Grows 30% YoY;
Service
Revenue From Mid-Market/Enterprise Customers Grows 52% YoY;
Non-GAAP
Net Income of $3.0 Million, $0.03 Per Share
8x8, Inc. (NASDAQ:EGHT), a provider of cloud-based unified
communications and contact center solutions, today reported financial
results for the second quarter of fiscal 2016 ended September 30, 2015.
Second Quarter Fiscal 2016 Financial Highlights:
-
Total revenue of $50.9 million increased 29% year over year; service
revenue of $47.0 million increased 30% year over year.
-
GAAP net loss for the second quarter of fiscal 2016 was ($1.9
million), or ($0.02) per diluted share, compared with GAAP net income
of $1.3 million, or $0.01 per diluted share, in the second quarter of
fiscal 2015.
-
Non-GAAP net income was $3.0 million, $0.03 per diluted share,
compared with $4.3 million, $0.05 per diluted share, for the same
period last year.
-
Service revenue from mid-market/enterprise customers grew 52% year
over year and now represents 48% of the Company’s total service
revenue.
-
Average monthly service revenue per business customer increased 20% to
$360, compared with $299 in the same period last year.
“In the second quarter of fiscal 2016, we saw further evidence of the
expanding cloud communications market from one that has been driven
primarily by SMB adoption to a broader opportunity that now includes
much larger global mid-market and enterprise organizations,” said 8x8
CEO Vik Verma. “8x8 has been planning for this market evolution over the
past two years and, with our Global Reach strategy, integrated cloud UC
and Contact Center platform and comprehensive analytics, we believe we
are uniquely positioned to take advantage of this trend. This quarter,
we signed three of the largest deals in the Company’s history and saw a
102% year over year increase in new recurring service revenue booked
from mid-market and enterprise customers and by channel sales teams.”
Mr. Verma continued, “Given our strong revenue growth this quarter, we
are revising our previously stated guidance of annual revenue for fiscal
2016 in the $202 million to $206 million range, representing a 24% - 27%
year over year increase, to annual revenue of $204 million to $206
million, representing a 26% - 27% year over year increase. Our guidance
for non-GAAP net income as a percentage of revenue of approximately 6%
for the full fiscal year remains unchanged.”
Additional Second Quarter and Year-to-Date
Highlights:
-
New monthly recurring revenue (MRR) sold to mid-market/enterprise
customers and by channel sales teams increased 102% year-over-year and
accounted for 58% of total MRR booked in the quarter, compared with
41% of total MRR booked in the same period last year.
-
GAAP service margin was 80%, compared with 79% in the same period a
year ago; overall gross margin was 73%, compared with 72% in the same
year ago period.
-
Monthly business service revenue churn was 0.8%, compared with 0.9% in
the same period last year.
-
Repurchased approximately 1.3 million shares of the Company’s common
stock during the quarter at an average price of $8.01 per share; on
October 20, 2015, 8x8’s Board of Directors approved a new share
repurchase program authorizing up to an additional $15 million in
repurchases of the Company's outstanding shares of common stock.
-
Cash, cash equivalents and investments were $149 million in the second
quarter of fiscal 2016, compared with $157 million in the previous
quarter; cash flow from operating activities was $2.5 million.
-
Announced new deal with Regus, the leading global workplace provider
to deploy 8x8 Enterprise Communications as a Service (ECaaS) solution
at Regus worldwide business centers.
-
Announced 2,400-seat deployment across nine global locations for new
enterprise customer NetSuite, the industry's leading provider of
cloud-based financials/ERP and omnichannel commerce software suites.
-
Announced new reseller agreement with Australian-based CSG, a leading
business technology and communications solutions specialist, to resell
the company's entire portfolio of enterprise cloud communications
solutions to the Australian and New Zealand markets.
-
Awarded four new U.S. patents related to Global Reach, contact center
and communication technologies contributing to a total of 112 awarded
patents.
-
Named a “Leader” in the 2015 Gartner UCaaS Magic Quadrant and
“Challenger” in both the 2015 Gartner CCaaS Magic Quadrant and 2015
Ovum Decision Matrix for Multichannel Cloud Contact Center Solutions.
Conference Call Information:
Management will host a conference call to discuss these results and
other matters related to the Company’s business today, October 22, 2015,
at 4:30 pm ET. The call is accessible via the following numbers and
webcast links:
Dial In:
|
|
|
|
|
(877) 843-0417, domestic
|
|
|
|
|
|
(408) 427-3791, international
|
Replay:
|
|
|
|
|
(855) 859-2056, domestic (Conference ID # 51382384)
|
|
|
|
|
|
(404) 537-3406, international (Conference ID # 51382384)
|
Webcast:
|
|
|
|
|
http://investors.8x8.com
|
|
|
|
|
|
|
Participants should plan to dial in or log on ten minutes prior to the
start time. A telephonic replay of the call will be available three
hours after the conclusion of the call until midnight October 28, 2015.
The webcast will be archived on 8x8’s website for a period of one year.
For additional information, visit http://investors.8x8.com.
8x8 also reported, in accordance with NASDAQ Listing Rule 5635(c)(4),
that employment inducement awards were granted to 31 new employees in
connection with their recent hiring. The employees received restrictive
stock units (“RSUs”) for 177,835 shares of the Company’s Common Stock on
September 17, 2015 and October 19, 2015, subject to their continued
employment and other conditions.
About 8x8, Inc.
8x8, Inc. (NASDAQ:EGHT) is the trusted provider of secure and reliable
cloud-based unified communications and virtual contact center solutions
to more than 40,000 businesses operating in over 100 countries across
six continents. 8x8's out-of-the-box cloud solutions replace traditional
on-premise PBX hardware and software-based systems with a flexible and
scalable Software as a Service (SaaS) alternative, encompassing cloud
business phone service, contact center solutions, and web conferencing.
For additional information, visit www.8x8.com,
or www.8x8.com/UK or connect with
8x8 on Google+, Facebook, LinkedIn and Twitter.
Non-GAAP Measures
The Company has provided in this release financial information that has
not been prepared in accordance with Generally Accepted Accounting
Principles (GAAP). Management uses these non-GAAP financial measures
internally in analyzing our financial results and believes they are
useful to investors, as a supplement to GAAP measures, in evaluating the
Company’s ongoing operational performance. Management believes that the
use of these non-GAAP financial measures provides an additional tool for
investors to use in evaluating 8x8’s ongoing operating results and
trends and in comparing financial results with other companies in the
industry, many of which present similar non-GAAP financial measures to
investors.
Non-GAAP financial measures should not be considered in isolation from,
or as a substitute for, financial information prepared in accordance
with GAAP. Investors are encouraged to review the reconciliation of
these non-GAAP financial measures to their most directly comparable GAAP
financial measures below. A reconciliation of non-GAAP financial
measures to their most directly comparable GAAP measures has been
provided in the financial statement tables included below in this press
release.
Non-GAAP Net Income and Non-GAAP Net Income Per
Share
We have defined non-GAAP net income as net income for GAAP plus gain on
patent sale, non-cash tax adjustments, stock-based compensation,
amortization of acquired intangible assets and acquisition-related
costs. Non-cash tax adjustments represent the differences between the
amount of taxes we expect to pay and our GAAP tax provision each period.
We have excluded stock-based compensation expense because it relies on
valuations based on future events, such as the market price of our
common stock, that are difficult to predict and are affected by market
factors that are largely not within the control of management.
Amortization of acquired intangible assets is excluded because it is a
non-cash expense that we do not consider part of ongoing operations when
assessing our financial performance, as it relates to accounting for
certain purchased assets. We have excluded gain on patent sale because
we consider it to have been an isolated transaction and believe it is
not reflective of our ongoing operations, and it reduces comparability
of periodic operating results when it is included. We have excluded
acquisition-related expenses because these expenses are difficult to
predict and are often one-time. We define non-GAAP net income per share
as non-GAAP net income divided by the weighted-average diluted shares
outstanding. We define non-GAAP net income percentage of revenue as
non-GAAP net income divided by revenue. The GAAP and non-GAAP weighted
average number of diluted shares to calculate GAAP and non-GAAP earnings
per share are the same. We believe that such exclusions facilitate
comparisons to our historical operating results and to the results of
other companies in the same industry, and provides investors with
information that we use in evaluating management’s performance on a
quarterly and annual basis.
Forward Looking Statements
This news release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995 and
Section 21E of the Securities Exchange Act of 1934. These statements
include, without limitation, information about future events based on
current expectations, potential product development efforts, near and
long-term objectives, potential new business, strategies, organization
changes, changing markets, future business performance and outlook. Such
statements are predictions only, and actual events or results could
differ materially from those made in any forward-looking statements due
to a number of risks and uncertainties. Actual results and trends may
differ materially from historical results or those projected in any such
forward-looking statements depending on a variety of factors. These
factors include, but are not limited to, market acceptance of new or
existing services and features, success of our efforts to target
mid-market and larger distributed enterprises, changes in the
competitive dynamics of the markets in which we compete, customer
cancellations and rate of churn, impact of current economic climate and
adverse credit markets on our target customers, our ability to scale our
business, our reliance on infrastructure of third-party network services
providers, risk of failure in our physical infrastructure, risk of
failure of our software, our ability to maintain the compatibility of
our software with third-party applications and mobile platforms,
continued compliance with industry standards and regulatory
requirements, risks relating to our strategies and objectives for future
operations, including the execution of integration plans and realization
of the expected benefits of our acquisitions, the amount and timing of
costs associated with recruiting, training and integrating new
employees, introduction and adoption of our cloud communications and
collaboration services in markets outside of the United States, and
general economic conditions that could adversely affect our business and
operating results. For a discussion of such risks and uncertainties,
which could cause actual results to differ from those contained in the
forward-looking statements, see “Risk Factors” in the Company’s reports
on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files
from time to time with the Securities and Exchange Commission. All
forward-looking statements are qualified in their entirety by this
cautionary statement, and 8x8, Inc. undertakes no obligation to update
publicly any forward-looking statement for any reason, except as
required by law, even as new information becomes available or other
events occur in the future.
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
(In thousands, except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
Service revenue
|
|
$
|
46,951
|
|
|
$
|
36,121
|
|
|
$
|
91,119
|
|
|
$
|
70,397
|
|
Product revenue
|
|
|
3,991
|
|
|
|
3,477
|
|
|
|
7,715
|
|
|
|
7,114
|
|
Total revenue
|
|
|
50,942
|
|
|
|
39,598
|
|
|
|
98,834
|
|
|
|
77,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of service revenue
|
|
|
9,186
|
|
|
|
7,505
|
|
|
|
17,645
|
|
|
|
14,502
|
|
Cost of product revenue
|
|
|
4,596
|
|
|
|
3,762
|
|
|
|
8,978
|
|
|
|
7,731
|
|
Research and development
|
|
|
6,446
|
|
|
|
3,496
|
|
|
|
11,526
|
|
|
|
6,902
|
|
Sales and marketing
|
|
|
26,730
|
|
|
|
19,440
|
|
|
|
50,554
|
|
|
|
38,600
|
|
General and administrative
|
|
|
5,657
|
|
|
|
3,893
|
|
|
|
11,725
|
|
|
|
7,771
|
|
Gain on patent sale
|
|
|
-
|
|
|
|
(1,000
|
)
|
|
|
-
|
|
|
|
(1,000
|
)
|
Total operating expenses
|
|
|
52,615
|
|
|
|
37,096
|
|
|
|
100,428
|
|
|
|
74,506
|
|
Income (loss) from operations
|
|
|
(1,673
|
)
|
|
|
2,502
|
|
|
|
(1,594
|
)
|
|
|
3,005
|
|
Other income, net
|
|
|
204
|
|
|
|
200
|
|
|
|
438
|
|
|
|
377
|
|
Income (loss) from operations before provision for income taxes
|
|
|
(1,469
|
)
|
|
|
2,702
|
|
|
|
(1,156
|
)
|
|
|
3,382
|
|
Provision for income taxes
|
|
|
423
|
|
|
|
1,411
|
|
|
|
1,208
|
|
|
|
2,083
|
|
Net income (loss)
|
|
$
|
(1,892
|
)
|
|
$
|
1,291
|
|
|
$
|
(2,364
|
)
|
|
$
|
1,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.02
|
)
|
|
$
|
0.01
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.01
|
|
Diluted
|
|
$
|
(0.02
|
)
|
|
$
|
0.01
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
88,557
|
|
|
|
89,073
|
|
|
|
88,397
|
|
|
|
88,861
|
|
Diluted
|
|
|
88,557
|
|
|
|
91,615
|
|
|
|
88,397
|
|
|
|
91,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts include stock-based compensation expense, as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
Cost of service revenue
|
|
$
|
263
|
|
|
|
160
|
|
|
$
|
482
|
|
|
|
275
|
|
Cost of product revenue
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Research and development
|
|
|
726
|
|
|
|
315
|
|
|
|
1,257
|
|
|
|
629
|
|
Sales and marketing
|
|
|
1,422
|
|
|
|
910
|
|
|
|
2,619
|
|
|
|
1,654
|
|
General and administrative
|
|
|
1,106
|
|
|
|
623
|
|
|
|
2,181
|
|
|
|
1,297
|
|
|
|
$
|
3,517
|
|
|
|
2,008
|
|
|
$
|
6,539
|
|
|
|
3,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
March 31,
|
|
|
|
2015
|
|
|
2015
|
ASSETS
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
28,795
|
|
$
|
53,110
|
Short-term investments
|
|
|
120,352
|
|
|
123,984
|
Accounts receivable, net
|
|
|
10,135
|
|
|
6,642
|
Inventory
|
|
|
879
|
|
|
704
|
Deferred tax assets
|
|
|
3,678
|
|
|
4,454
|
Other current assets
|
|
|
4,833
|
|
|
2,702
|
Total current assets
|
|
|
168,672
|
|
|
191,596
|
Property and equipment, net
|
|
|
11,310
|
|
|
10,248
|
Intangible assets, net
|
|
|
25,083
|
|
|
12,260
|
Goodwill
|
|
|
48,695
|
|
|
36,887
|
Non-current deferred tax asset
|
|
|
43,169
|
|
|
43,169
|
Other assets
|
|
|
1,687
|
|
|
1,464
|
Total assets
|
|
$
|
298,616
|
|
$
|
295,624
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
9,852
|
|
$
|
7,775
|
Accrued compensation
|
|
|
7,784
|
|
|
6,183
|
Accrued warranty
|
|
|
325
|
|
|
339
|
Deferred revenue
|
|
|
1,589
|
|
|
1,768
|
Other accrued liabilities
|
|
|
7,132
|
|
|
5,765
|
Total current liabilities
|
|
|
26,682
|
|
|
21,830
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
4,223
|
|
|
1,583
|
Total liabilities
|
|
|
30,905
|
|
|
23,413
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
267,711
|
|
|
272,211
|
Total liabilities and stockholders' equity
|
|
$
|
298,616
|
|
$
|
295,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
September 30,
|
|
|
|
2015
|
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(2,364
|
)
|
|
$
|
1,299
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
2,275
|
|
|
|
1,576
|
|
Amortization of intangible assets
|
|
|
1,563
|
|
|
|
1,133
|
|
Amortization of capitalized software
|
|
|
456
|
|
|
|
170
|
|
Net accretion of discount and amortization of premium on
marketable securities
|
|
|
435
|
|
|
|
428
|
|
Stock-based compensation
|
|
|
6,539
|
|
|
|
3,855
|
|
Deferred income tax provision
|
|
|
687
|
|
|
|
2,002
|
|
Other
|
|
|
248
|
|
|
|
115
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
(2,976
|
)
|
|
|
(1,883
|
)
|
Inventory
|
|
|
(200
|
)
|
|
|
29
|
|
Other current and noncurrent assets
|
|
|
(794
|
)
|
|
|
(608
|
)
|
Deferred cost of goods sold
|
|
|
(77
|
)
|
|
|
(340
|
)
|
Accounts payable
|
|
|
1,006
|
|
|
|
980
|
|
Accrued compensation
|
|
|
1,234
|
|
|
|
918
|
|
Accrued warranty
|
|
|
(14
|
)
|
|
|
(122
|
)
|
Accrued taxes and fees
|
|
|
891
|
|
|
|
249
|
|
Deferred revenue
|
|
|
(621
|
)
|
|
|
(564
|
)
|
Other current and noncurrent liabilities
|
|
|
(1,173
|
)
|
|
|
(607
|
)
|
Net cash provided by operating activities
|
|
|
7,115
|
|
|
|
8,630
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(2,118
|
)
|
|
|
(2,553
|
)
|
Purchase of businesses, net of cash acquired
|
|
|
(23,434
|
)
|
|
|
-
|
|
Cost of capitalized software
|
|
|
(708
|
)
|
|
|
(181
|
)
|
Proceeds from maturity of investments
|
|
|
24,106
|
|
|
|
21,600
|
|
Sales of investments - available for sale
|
|
|
31,299
|
|
|
|
25,537
|
|
Purchase of investments - available for sale
|
|
|
(52,286
|
)
|
|
|
(57,854
|
)
|
Net cash used in investing activities
|
|
|
(23,141
|
)
|
|
|
(13,451
|
)
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Capital lease payments
|
|
|
(200
|
)
|
|
|
(81
|
)
|
Payment of contingent consideration
|
|
|
(150
|
)
|
|
|
-
|
|
Repurchase of common stock
|
|
|
(10,133
|
)
|
|
|
(80
|
)
|
Proceeds from issuance of common stock under employee stock plans
|
|
|
2,076
|
|
|
|
1,699
|
|
Net cash (used in) provided by financing activities
|
|
|
(8,407
|
)
|
|
|
1,538
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash
|
|
|
118
|
|
|
|
172
|
|
Net decrease in cash and cash equivalents
|
|
|
(24,315
|
)
|
|
|
(3,111
|
)
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period
|
|
|
53,110
|
|
|
|
59,159
|
|
Cash and cash equivalents at the end of the period
|
|
$
|
28,795
|
|
|
$
|
56,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
Selected Operating Statistics
|
|
|
Three Months Ended
|
|
|
Sept. 30, 2014
|
|
Dec. 31, 2014
|
|
March 31, 2015
|
|
June 30, 2015
|
|
Sept. 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Business customer average monthly service revenue per customer (1)
|
|
$
|
299
|
|
|
$
|
305
|
|
|
$
|
320
|
|
|
$
|
353
|
|
|
$
|
360
|
|
Monthly business service revenue churn (2)(3)
|
|
|
0.9
|
%
|
|
|
1.0
|
%
|
|
|
0.5
|
%
|
|
|
1.0
|
%
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Overall service margin
|
|
|
79
|
%
|
|
|
80
|
%
|
|
|
81
|
%
|
|
|
81
|
%
|
|
|
80
|
%
|
Overall product margin
|
|
|
-8
|
%
|
|
|
-11
|
%
|
|
|
-19
|
%
|
|
|
-18
|
%
|
|
|
-15
|
%
|
Overall gross margin
|
|
|
72
|
%
|
|
|
72
|
%
|
|
|
73
|
%
|
|
|
73
|
%
|
|
|
73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Business customer average monthly service revenue per customer
is service revenue from business customers in the period divided by
the number of months in the period divided by the simple average
number of business customers during the period.
|
(2) Business customer service revenue churn is calculated by
dividing the service revenue lost from business customers (after the
expiration of 30-day trial) during the period by the simple average
of business customer service revenue during the same period and
dividing the result by the number of months in the period.
|
(3) Excludes DXI business customer service revenue churn for the
period ending June 30, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8x8, Inc.
|
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP NET INCOME
|
AND NON-GAAP NET INCOME PER SHARE
|
(In thousands, except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
Net income (loss)
|
|
$
|
(1,892
|
)
|
|
$
|
1,291
|
|
|
$
|
(2,364
|
)
|
|
$
|
1,299
|
|
Gain on patent sale
|
|
|
-
|
|
|
|
(1,000
|
)
|
|
|
-
|
|
|
|
(1,000
|
)
|
Non-cash tax adjustments
|
|
|
211
|
|
|
|
1,392
|
|
|
|
687
|
|
|
|
2,002
|
|
Amortization of acquired intangible assets
|
|
|
1,017
|
|
|
|
566
|
|
|
|
1,563
|
|
|
|
1,133
|
|
Stock-based compensation expense
|
|
|
3,517
|
|
|
|
2,008
|
|
|
|
6,539
|
|
|
|
3,855
|
|
Acquisition related expenses
|
|
|
121
|
|
|
|
-
|
|
|
|
1,043
|
|
|
|
-
|
|
Non-GAAP net income
|
|
$
|
2,974
|
|
|
|
4,257
|
|
|
$
|
7,468
|
|
|
|
7,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation between GAAP and non-GAAP weighted average shares
used in computing basic and diluted net income (loss) per share:
|
|
|
|
Denominator for basic calculation
|
|
|
88,557
|
|
|
|
89,073
|
|
|
|
88,397
|
|
|
|
88,861
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee stock options
|
|
|
1,529
|
|
|
|
2,187
|
|
|
|
1,618
|
|
|
|
2,335
|
|
Employee restricted purchase rights
|
|
|
904
|
|
|
|
355
|
|
|
|
885
|
|
|
|
372
|
|
Denominator for diluted calculation
|
|
|
90,990
|
|
|
|
91,615
|
|
|
|
90,900
|
|
|
|
91,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per share - Diluted
|
|
$
|
(0.02
|
)
|
|
$
|
0.01
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.01
|
|
Gain on patent sale
|
|
|
-
|
|
|
|
(0.01
|
)
|
|
|
-
|
|
|
|
(0.01
|
)
|
Non-cash tax adjustments
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.01
|
|
|
|
0.02
|
|
Amortization of acquired intangible assets
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.02
|
|
|
|
0.01
|
|
Stock-based compensation expense
|
|
|
0.04
|
|
|
|
0.03
|
|
|
|
0.07
|
|
|
|
0.05
|
|
Acquisition related expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
Non-GAAP net income per share - Diluted
|
|
$
|
0.03
|
|
|
$
|
0.05
|
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) percentage of revenue
|
|
|
-4
|
%
|
|
|
3
|
%
|
|
|
-2
|
%
|
|
|
2
|
%
|
Gain on patent sale
|
|
|
0
|
%
|
|
|
-2
|
%
|
|
|
0
|
%
|
|
|
-1
|
%
|
Non-cash tax adjustments
|
|
|
1
|
%
|
|
|
4
|
%
|
|
|
1
|
%
|
|
|
2
|
%
|
Amortization of acquired intangible assets
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
1
|
%
|
|
|
1
|
%
|
Stock-based compensation expense
|
|
|
7
|
%
|
|
|
5
|
%
|
|
|
7
|
%
|
|
|
5
|
%
|
Acquisition related expenses
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
1
|
%
|
|
|
0
|
%
|
Non-GAAP net income percentage of revenue
|
|
|
6
|
%
|
|
|
11
|
%
|
|
|
8
|
%
|
|
|
9
|
%
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151022006441/en/
Copyright Business Wire 2015