[November 05, 2014] |
|
Silver Spring Networks Reports Solid Third Quarter Financial Results
REDWOOD CITY, Calif. --(Business Wire)--
Silver Spring Networks, Inc. (NYSE: SSNI) today announced preliminary
unaudited financial results for its third quarter of 2014.
Q3 2014 Results
-
Non-GAAP revenue was $70.9 million.
-
GAAP revenue was $28.0 million.
-
Non-GAAP gross margin was 30.8%.
-
GAAP gross margin was 4.6%.
-
Non-GAAP net loss was $7.0 million.
-
GAAP net loss was $37.3 million.
-
Cash and investments of $110.5 million and no debt.
"I am pleased with our execution this quarter and the terrific progress
we made to improve our ongoing performance," said Scott Lang, Chairman,
President, and Chief Executive Officer. "We had some important wins this
quarter that expanded our addressable markets, drove record backlog and
extended our position as a market leader."
Business Highlights (through November 5, 2014)
-
19.7 million cumulative network endpoints delivered through
Q3'14, up 13% from a year ago.
-
New solution non-GAAP revenue (distribution automation, demand side
management and street lights) of $9.6 million - up 18%
year-over-year.
-
Recurring managed and SaaS non-GAAP revenue of $10.7 million -
up 9% year-over year.
-
Consumers Energy to deploy the SilverLink platform for their
consumer engagement and energy efficiency program to its 2.7 million
customers.
-
City Utilities of Springfield to leverage multi-application
network for smart electricity, gas and water system.
-
Florida Power and Light expands street light deployment with
Streetlight.Vision software to manage their networked street lights.
-
Launched next-generation two-way water solution - provides
customers near real-time understanding of their water usage.
Conference Call
Silver Spring will host a conference call today at 1:30 pm PT (4:30 pm
ET) to review its results for the third quarter ended September 30, 2014
and its outlook for the future. During the course of this call, Silver
Spring may also disclose material developments affecting its business
and/or financial performance. Listeners may access the conference call
live at 877-407-0832 (U.S.) or 201-689-8433 (International) or via
webcast at http://ir.silverspringnet.com.
A dial-in replay of the conference call will be available until November
19, 2014 and can be accessed at 877-660-6853 (domestic) or 201-612-7415
(international) passcode 13592950. An audio webcast replay of the
conference call will be available for one year at http://ir.silverspringnet.com.
About Silver Spring Networks
Silver Spring Networks is a leading networking platform and solutions
provider for smart energy networks. Silver Spring's pioneering IPv6
networking platform, with over 19.5 million Silver Spring enabled
devices delivered, is connecting utilities to homes and business
throughout the world with the goal of achieving greater energy
efficiency for the planet. Silver Spring's innovative solutions enable
utilities to gain operational efficiencies, improve grid reliability,
and empower consumers to monitor and manage energy consumption. Silver
Spring Networks' customers include major utilities around the globe such
as Baltimore Gas & Electric, CitiPower & Powercor, Commonwealth Edison,
CPS Energy, Florida Power & Light, Jemena Electricity Networks Limited,
Pacific Gas & Electric, Pepco Holdings, Progress Energy, and Singapore
Power. To learn more, please visit www.silverspringnet.com.
Non-GAAP and Other Financial Measures
Silver Spring believes that its results of operations under generally
accepted accounting principles, or GAAP, when considered in isolation,
may only provide limited insight into the performance of its business in
any given period. As a result, Silver Spring manages its business, makes
planning decisions, evaluates its performance and allocates resources by
assessing non-GAAP measures such as non-GAAP revenue, recurring non-GAAP
revenue per endpoint, cost of non-GAAP revenue, non-GAAP gross profit
(loss), non-GAAP operating income (loss), non-GAAP net income (loss),
non-GAAP earnings (loss) per share, and adjusted EBITDA, and total
backlog, in addition to other financial measures presented in accordance
with GAAP. Silver Spring believes that these non-GAAP and other
financial measures offer valuable supplemental information regarding the
performance of its business, and will help investors better understand
the sales volumes, and gross margin and profitability trends, as well as
the cash flow characteristics, of its business. The non-GAAP measures
should not be considered in isolation from, are not a substitute for,
and do not purport to be an alternative to, revenue, cost of revenue,
gross profit (loss), operating loss, net loss, loss per share or any
other performance measure derived in accordance with GAAP. Silver Spring
may consider whether other significant non-recurring items that arise in
the future should also be excluded in calculating the non-GAAP financial
measures it uses.
Non-GAAP revenue represents amounts invoiced for products for which
ownership, typically evidenced by title and risk of loss, has
transferred or services that have been provided to the customer, and for
which payment is expected to be made in accordance with normal payment
terms. Non-GAAP revenue excludes amounts for undelivered products,
services to be performed in the future, and amounts paid or payable to
customers. Non-GAAP revenue is initially recorded as deferred revenue
and is recognized as GAAP revenue when all revenue recognition criteria
have been met under Silver Spring's accounting policies as described in
Silver Spring's filings with the Securities and Exchange Commission.
Silver Spring reconciles revenue to non-GAAP revenue by adding revenue
to the change in deferred revenue in a given period.
Recurring non-GAAP revenue per endpoint represents a trailing twelve
month non-GAAP recurring revenue per cumulative endpoints deployed
inception to date.
Cost of non-GAAP revenue represents the cost associated with products
and services that have been delivered to the customer, excluding
stock-based compensation and amortization of intangibles. Cost of
product shipments for which revenue is not recognized in the period
incurred is recorded as deferred cost of revenue. Deferred cost of
revenue is expensed in the statement of operations as cost of revenue
when the corresponding revenue is recognized. Costs related to services
are expensed in the period incurred. Silver Spring reconciles cost of
revenue to non-GAAP cost of revenue by adding cost of revenue to the
change in deferred cost of revenue, less stock-based compensation and
amortization of intangibles included in cost of revenue, in a given
period.
Non-GAAP gross profit (loss) is the difference between non-GAAP revenue
and cost of non-GAAP revenue.
Non-GAAP operating income (loss) represents operating loss adjusted for
non-GAAP revenue and cost of non-GAAP revenue and excludes expenses
related to the amortization of intangible assets, legal settlements, and
stock-based compensation.
Non-GAAP net income (loss) represents net loss adjusted for non-GAAP
revenue and cost of non-GAAP revenue, and excludes expenses related to
the amortization of intangible assets, legal settlements, stock-based
compensation, changes in fair value of preferred stock warrant
liabilities and embedded derivatives, and loss on extinguishment of
promissory notes.
Non-GAAP earnings (loss) per share represents non-GAAP net loss divided
by weighted average shares outstanding for the period.
Adjusted EBITDA is net income (loss) adjusted for changes in deferred
revenue and deferred cost of revenue, other (income) expense, net,
provision for income taxes, depreciation and amortization, stock-based
compensation and certain other items management believes affect the
comparability of operating results.
Total backlog represents future product and service billings that we
expect to generate pursuant to contracts that we have entered into with
our utility customers and meter manufacturers. Total backlog includes
order backlog, which represents future billings for open purchase orders
and other firm commitments.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties. These forward-looking statements include
statements regarding the momentum in Silver Spring Networks' business,
future growth, and future financial results. Statements including words
such as "anticipate", "believe", "estimate" or "expect" and statements
in the future tense are forward-looking statements. These
forward-looking statements are preliminary estimates and expectations
based on current information and are subject to business and economic
risks and uncertainties that could cause actual events or actual future
results to differ materially from the expectations set forth in the
forward-looking statements. Important factors that could cause results
to differ materially from the statements herein include: timing around
customer decisions and deployment pace; dependence on a limited number
of customers and key suppliers; general economic risks; specific
economic risks in different geographies and among different industries;
failure to maintain or increase renewals and increase business from
existing customers; uncertainties around continued success in sales
growth and market share gains; lengthy sales cycles with no assurances
that a prospective customer will select Silver Spring's products and
services; amounts included in backlog may not result in billings or
revenue; adverse publicity about, or consumer or political opposition
to, the smart grid; security breaches involving smart grid products or
services; the ability to integrate technology into third-party devices
and Silver Spring's relationship with third-party manufacturers;
execution and customer adoption risks related to new product
introductions and innovation; the ability to attract and retain
personnel, including members of Silver Spring's management team; changes
in strategy; technological changes that make Silver Spring's products
and services less competitive; competition, particularly from larger
companies with more resources than Silver Spring; international business
uncertainties; the ability to acquire and integrate other businesses;
and other risk factors set forth from time to time in Silver Spring's
filings with the SEC, copies of which are available free of charge at
the SEC's website at www.sec.gov.
All forward-looking statements in this press release reflect Silver
Spring's expectations as of November 5, 2014. Silver Spring undertakes
no obligation, and expressly disclaims any obligation, to update any
forward-looking statements in this press release in light of new
information or future events. In addition, the preliminary financial
results set forth in this press release are estimates based on
information currently available to Silver Spring.
|
SILVER SPRING NETWORKS
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share data)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product revenue
|
|
$
|
16,321
|
|
|
$
|
56,650
|
|
|
$
|
69,299
|
|
|
$
|
146,366
|
|
Service revenue
|
|
|
11,720
|
|
|
|
15,831
|
|
|
|
44,578
|
|
|
|
83,328
|
|
Net revenue
|
|
|
28,041
|
|
|
|
72,481
|
|
|
|
113,877
|
|
|
|
229,694
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product cost of revenue
|
|
|
10,791
|
|
|
|
34,844
|
|
|
|
42,120
|
|
|
|
100,152
|
|
Service cost of revenue
|
|
|
15,947
|
|
|
|
14,411
|
|
|
|
45,598
|
|
|
|
47,932
|
|
Total cost of revenue
|
|
|
26,738
|
|
|
|
49,255
|
|
|
|
87,718
|
|
|
|
148,084
|
|
Gross profit
|
|
|
1,303
|
|
|
|
23,226
|
|
|
|
26,159
|
|
|
|
81,610
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other
|
|
|
2,005
|
|
|
|
-
|
|
|
|
1,905
|
|
|
|
-
|
|
Research and development
|
|
|
16,986
|
|
|
|
16,980
|
|
|
|
52,053
|
|
|
|
60,851
|
|
Sales and marketing
|
|
|
10,131
|
|
|
|
7,424
|
|
|
|
28,208
|
|
|
|
26,514
|
|
General and administrative
|
|
|
9,601
|
|
|
|
10,937
|
|
|
|
33,256
|
|
|
|
35,952
|
|
Total operating expenses
|
|
|
38,723
|
|
|
|
35,341
|
|
|
|
115,422
|
|
|
|
123,317
|
|
Operating loss
|
|
|
(37,420
|
)
|
|
|
(12,115
|
)
|
|
|
(89,263
|
)
|
|
|
(41,707
|
)
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
7
|
|
|
|
(54
|
)
|
|
|
55
|
|
|
|
(1,290
|
)
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(23,676
|
)
|
Other income (expense), net
|
|
|
7
|
|
|
|
(54
|
)
|
|
|
55
|
|
|
|
(24,966
|
)
|
Loss before provision for income taxes
|
|
|
(37,413
|
)
|
|
|
(12,169
|
)
|
|
|
(89,208
|
)
|
|
|
(66,673
|
)
|
(Benefit) provision for income taxes
|
|
|
(140
|
)
|
|
|
100
|
|
|
|
463
|
|
|
|
492
|
|
Net loss
|
|
|
(37,273
|
)
|
|
|
(12,269
|
)
|
|
|
(89,671
|
)
|
|
|
(67,165
|
)
|
Deemed dividend to convertible preferred stockholders
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(105,000
|
)
|
Net loss attributable to common stockholders
|
|
$
|
(37,273
|
)
|
|
$
|
(12,269
|
)
|
|
$
|
(89,671
|
)
|
|
$
|
(172,165
|
)
|
Net loss per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share attributable to common
stockholders
|
|
$
|
(0.77
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(1.86
|
)
|
|
$
|
(4.96
|
)
|
Diluted net income (loss) per share attributable to common
stockholders
|
|
$
|
(0.77
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(1.86
|
)
|
|
$
|
(4.96
|
)
|
Weighted average number of shares used in computation
|
|
|
|
|
Basic
|
|
|
48,551
|
|
|
|
46,729
|
|
|
|
48,189
|
|
|
|
34,733
|
|
Diluted
|
|
|
48,551
|
|
|
|
46,729
|
|
|
|
48,189
|
|
|
|
34,733
|
|
|
Non-GAAP results (in thousands, except per share data)
|
The following tables reconcile the Company's net income (loss) and
income (loss) per share as presented in its unaudited Condensed
Consolidated Statements of Operations and prepared in accordance
with GAAP to its non-GAAP net income (loss) and non-GAAP income
(loss) per share.
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net loss
|
|
$
|
(37,273
|
)
|
|
$
|
(12,269
|
)
|
|
$
|
(89,671
|
)
|
|
$
|
(67,165
|
)
|
Change in deferred revenue, net of foreign currency translation
|
|
|
42,847
|
|
|
|
21,735
|
|
|
|
92,465
|
|
|
|
24,744
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(25,244
|
)
|
|
|
(6,842
|
)
|
|
|
(62,302
|
)
|
|
|
(30,028
|
)
|
Amortization of intangibles in cost of revenue
|
|
|
299
|
|
|
|
48
|
|
|
|
395
|
|
|
|
144
|
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,676
|
|
Convertible notes accretion / interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
935
|
|
Stock-based compensation
|
|
|
10,476
|
|
|
|
6,990
|
|
|
|
31,470
|
|
|
|
44,503
|
|
Restructuring and other
|
|
|
1,905
|
|
|
|
-
|
|
|
|
1,905
|
|
|
|
-
|
|
Legal settlements
|
|
|
(17
|
)
|
|
|
-
|
|
|
|
(117
|
)
|
|
|
-
|
|
Non-GAAP net income (loss)
|
|
$
|
(7,007
|
)
|
|
$
|
9,662
|
|
|
$
|
(25,855
|
)
|
|
$
|
(3,191
|
)
|
Non-GAAP income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.14
|
)
|
|
$
|
0.21
|
|
|
$
|
(0.54
|
)
|
|
$
|
(0.09
|
)
|
Diluted
|
|
$
|
(0.14
|
)
|
|
$
|
0.19
|
|
|
$
|
(0.54
|
)
|
|
$
|
(0.09
|
)
|
Weighted average number of shares used in computation
|
|
|
|
|
Basic
|
|
|
48,551
|
|
|
|
46,729
|
|
|
|
48,189
|
|
|
|
34,733
|
|
Diluted
|
|
|
48,551
|
|
|
|
49,620
|
|
|
|
48,189
|
|
|
|
34,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, except par values)
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2014
|
|
2013 (a)
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
50,114
|
|
|
$
|
82,596
|
|
Short-term investments
|
|
|
60,352
|
|
|
|
63,256
|
|
Accounts receivable
|
|
|
67,929
|
|
|
|
69,724
|
|
Inventory
|
|
|
4,511
|
|
|
|
4,350
|
|
Deferred cost of revenue
|
|
|
25,700
|
|
|
|
37,460
|
|
Prepaid expenses and other current assets
|
|
|
7,372
|
|
|
|
4,758
|
|
Total current assets
|
|
|
215,978
|
|
|
|
262,144
|
|
Property and equipment, net
|
|
|
12,381
|
|
|
|
12,364
|
|
Deferred cost of revenue, non-current
|
|
|
312,933
|
|
|
|
238,663
|
|
Deferred tax assets, non-current
|
|
|
1,232
|
|
|
|
1,613
|
|
Other long-term assets
|
|
|
10,403
|
|
|
|
1,567
|
|
TOTAL ASSETS
|
|
$
|
552,927
|
|
|
$
|
516,351
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
28,412
|
|
|
$
|
31,317
|
|
Accrued liabilities
|
|
|
27,829
|
|
|
|
21,282
|
|
Deferred revenue
|
|
|
74,380
|
|
|
|
111,293
|
|
Current portion of capital lease obligations
|
|
|
1,399
|
|
|
|
1,615
|
|
Deferred tax liability
|
|
|
1,206
|
|
|
|
1,176
|
|
Total current liabilities
|
|
|
133,226
|
|
|
|
166,683
|
|
Deferred revenue, non-current
|
|
|
543,036
|
|
|
|
413,360
|
|
Other liabilities
|
|
|
15,709
|
|
|
|
14,426
|
|
Stockholders' deficit:
|
|
|
|
|
|
|
Preferred stock, $0.001 par value, 10,000 shares authorized and no
shares issued or outstanding as of September 30, 2014 and December
31, 2013
|
|
|
-
|
|
|
|
-
|
|
Common stock and additional paid-in capital, $0.001 par value;
1,000,000 shares authorized, 48,734 and 47,384 shares issued and
outstanding as of September 30, 2014 and December 31, 2013
|
|
|
567,824
|
|
|
|
539,013
|
|
Accumulated other comprehensive income (loss)
|
|
|
64
|
|
|
|
130
|
|
Accumulated deficit
|
|
|
(706,932
|
)
|
|
|
(617,261
|
)
|
Total stockholders' deficit
|
|
|
(139,044
|
)
|
|
|
(78,118
|
)
|
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
$
|
552,927
|
|
|
$
|
516,351
|
|
(a) Derived from audited consolidated financial statements
|
|
SILVER SPRING NETWORKS
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
(In thousands)
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(37,273
|
)
|
|
$
|
(12,269
|
)
|
|
$
|
(89,671
|
)
|
|
$
|
(67,165
|
)
|
Adjustments to reconcile net loss to net cash provided (used) in
operating activities:
|
|
|
|
|
|
|
|
|
Restructuring and other
|
|
|
1,072
|
|
|
|
-
|
|
|
|
1,072
|
|
|
|
-
|
|
Depreciation and amortization
|
|
|
1,771
|
|
|
|
1,624
|
|
|
|
4,704
|
|
|
|
4,990
|
|
Stock-based compensation
|
|
|
10,476
|
|
|
|
6,990
|
|
|
|
31,470
|
|
|
|
44,503
|
|
Conversion of promissory notes and remeasurement of warrants and
derivatives
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,676
|
|
Other non-cash adjustments
|
|
|
236
|
|
|
|
113
|
|
|
|
1,262
|
|
|
|
1,565
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(9,791
|
)
|
|
|
10,057
|
|
|
|
1,795
|
|
|
|
(3,126
|
)
|
Inventory
|
|
|
(12
|
)
|
|
|
5,541
|
|
|
|
(779
|
)
|
|
|
534
|
|
Prepaid expenses and other current assets
|
|
|
504
|
|
|
|
939
|
|
|
|
(2,775
|
)
|
|
|
(2,248
|
)
|
Deferred cost of revenue
|
|
|
(25,175
|
)
|
|
|
(6,865
|
)
|
|
|
(62,510
|
)
|
|
|
(29,938
|
)
|
Other long-term assets
|
|
|
420
|
|
|
|
1,484
|
|
|
|
185
|
|
|
|
3,846
|
|
Accounts payable
|
|
|
237
|
|
|
|
(9,119
|
)
|
|
|
(3,165
|
)
|
|
|
(1,746
|
)
|
Accrued liabilities
|
|
|
963
|
|
|
|
2,917
|
|
|
|
1,333
|
|
|
|
2,379
|
|
Customer deposits
|
|
|
(71
|
)
|
|
|
(1
|
)
|
|
|
33
|
|
|
|
(247
|
)
|
Deferred revenue
|
|
|
42,310
|
|
|
|
21,824
|
|
|
|
92,413
|
|
|
|
24,490
|
|
Other liabilities
|
|
|
(1,401
|
)
|
|
|
(2,104
|
)
|
|
|
2,244
|
|
|
|
(3,343
|
)
|
Net cash provided (used) in operating activities
|
|
|
(15,734
|
)
|
|
|
21,131
|
|
|
|
(22,389
|
)
|
|
|
(1,830
|
)
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of business, net of cash received, and purchase of
intangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,750
|
)
|
|
|
-
|
|
Proceeds from sales and maturity of short-term investments
|
|
|
7,151
|
|
|
|
-
|
|
|
|
49,209
|
|
|
|
-
|
|
Purchase of short-term investments
|
|
|
(7,120
|
)
|
|
|
(61,451
|
)
|
|
|
(46,621
|
)
|
|
|
(61,451
|
)
|
Purchases of property and equipment
|
|
|
(524
|
)
|
|
|
(881
|
)
|
|
|
(4,222
|
)
|
|
|
(3,343
|
)
|
Net cash used in investing activities
|
|
|
(493
|
)
|
|
|
(62,332
|
)
|
|
|
(10,384
|
)
|
|
|
(64,794
|
)
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment upon termination of preferred stock warrants of a related
party
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(12,000
|
)
|
Proceeds from initial public offering, net of offering costs
|
|
|
-
|
|
|
|
(233
|
)
|
|
|
-
|
|
|
|
84,472
|
|
Proceeds from private placement of common stock with a related party
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,000
|
|
Payments on capital lease obligations
|
|
|
(397
|
)
|
|
|
(541
|
)
|
|
|
(1,145
|
)
|
|
|
(1,485
|
)
|
Proceeds from issuance of common stock, net of repurchases
|
|
|
1,988
|
|
|
|
388
|
|
|
|
6,735
|
|
|
|
578
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
(36
|
)
|
|
|
(1,518
|
)
|
|
|
(5,299
|
)
|
|
|
(7,722
|
)
|
Net cash provided by (used in) financing activities
|
|
|
1,555
|
|
|
|
(1,904
|
)
|
|
|
291
|
|
|
|
75,843
|
|
Net increase in cash and cash equivalents
|
|
|
(14,672
|
)
|
|
|
(43,105
|
)
|
|
|
(32,482
|
)
|
|
|
9,219
|
|
Cash and cash equivalents - beginning of period
|
|
|
64,786
|
|
|
|
124,970
|
|
|
|
82,596
|
|
|
|
72,646
|
|
Cash and cash equivalents - end of period
|
|
$
|
50,114
|
|
|
$
|
81,865
|
|
|
$
|
50,114
|
|
|
$
|
81,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED RECONCILIATION OF NET REVENUE BETWEEN GAAP AND NON-GAAP
|
(in thousands, except percentages)
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YoY%
|
TYPE
|
|
CY13
|
|
CY13
|
|
CY14
|
|
CY14
|
|
CY14
|
|
Change
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net revenue
|
|
$
|
56,650
|
|
|
$
|
77,944
|
|
|
$
|
28,227
|
|
|
$
|
24,751
|
|
|
$
|
16,321
|
|
|
-71
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
9,835
|
|
|
|
8,159
|
|
|
|
7,797
|
|
|
|
8,301
|
|
|
|
7,272
|
|
|
-26
|
%
|
Professional services
|
|
|
5,996
|
|
|
|
11,061
|
|
|
|
8,205
|
|
|
|
8,555
|
|
|
|
4,448
|
|
|
-26
|
%
|
Total service net revenue
|
|
|
15,831
|
|
|
|
19,220
|
|
|
|
16,002
|
|
|
|
16,856
|
|
|
|
11,720
|
|
|
-26
|
%
|
Total GAAP net revenue
|
|
$
|
72,481
|
|
|
$
|
97,164
|
|
|
$
|
44,229
|
|
|
$
|
41,607
|
|
|
$
|
28,041
|
|
|
-61
|
%
|
% Product
|
|
|
78
|
%
|
|
|
80
|
%
|
|
|
64
|
%
|
|
|
59
|
%
|
|
|
58
|
%
|
|
|
% Service
|
|
|
22
|
%
|
|
|
20
|
%
|
|
|
36
|
%
|
|
|
41
|
%
|
|
|
42
|
%
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
Change in deferred product revenue
|
|
$
|
16,017
|
|
|
$
|
(7,054
|
)
|
|
$
|
24,006
|
|
|
$
|
17,438
|
|
|
$
|
33,238
|
|
|
|
Change in deferred service revenue
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
16
|
|
|
|
1,000
|
|
|
|
2,219
|
|
|
|
2,079
|
|
|
|
3,418
|
|
|
|
Professional services
|
|
|
5,702
|
|
|
|
(1,462
|
)
|
|
|
1,396
|
|
|
|
2,480
|
|
|
|
6,191
|
|
|
|
Total change in deferred service revenue
|
|
|
5,718
|
|
|
|
(462
|
)
|
|
|
3,615
|
|
|
|
4,559
|
|
|
|
9,609
|
|
|
|
Total change in deferred revenue
|
|
$
|
21,735
|
|
|
$
|
(7,516
|
)
|
|
$
|
27,621
|
|
|
$
|
21,997
|
|
|
$
|
42,847
|
|
|
|
Non-GAAP revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net revenue
|
|
$
|
72,667
|
|
|
$
|
70,890
|
|
|
$
|
52,233
|
|
|
$
|
42,189
|
|
|
$
|
49,559
|
|
|
-32
|
%
|
Service net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
9,851
|
|
|
|
9,159
|
|
|
|
10,016
|
|
|
|
10,380
|
|
|
|
10,690
|
|
|
9
|
%
|
Professional services
|
|
|
11,698
|
|
|
|
9,599
|
|
|
|
9,601
|
|
|
|
11,035
|
|
|
|
10,639
|
|
|
-9
|
%
|
Total service net revenue
|
|
|
21,549
|
|
|
|
18,758
|
|
|
|
19,617
|
|
|
|
21,415
|
|
|
|
21,329
|
|
|
-1
|
%
|
Total non-GAAP net revenue
|
|
$
|
94,216
|
|
|
$
|
89,648
|
|
|
$
|
71,850
|
|
|
$
|
63,604
|
|
|
$
|
70,888
|
|
|
-25
|
%
|
% Product
|
|
|
77
|
%
|
|
|
79
|
%
|
|
|
73
|
%
|
|
|
66
|
%
|
|
|
70
|
%
|
|
|
% Service
|
|
|
23
|
%
|
|
|
21
|
%
|
|
|
27
|
%
|
|
|
34
|
%
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOLUTION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
66,774
|
|
|
$
|
91,842
|
|
|
$
|
40,023
|
|
|
$
|
33,729
|
|
|
$
|
21,710
|
|
|
-67
|
%
|
New solutions
|
|
|
5,707
|
|
|
|
5,322
|
|
|
|
4,206
|
|
|
|
7,878
|
|
|
|
6,331
|
|
|
11
|
%
|
Total GAAP net revenue
|
|
$
|
72,481
|
|
|
$
|
97,164
|
|
|
$
|
44,229
|
|
|
$
|
41,607
|
|
|
$
|
28,041
|
|
|
-61
|
%
|
% Advanced metering infrastructure
|
|
|
92
|
%
|
|
|
95
|
%
|
|
|
90
|
%
|
|
|
81
|
%
|
|
|
77
|
%
|
|
|
% New solutions
|
|
|
8
|
%
|
|
|
5
|
%
|
|
|
10
|
%
|
|
|
19
|
%
|
|
|
23
|
%
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
19,244
|
|
|
$
|
(9,532
|
)
|
|
$
|
22,422
|
|
|
$
|
17,994
|
|
|
$
|
39,535
|
|
|
|
New solutions
|
|
|
2,491
|
|
|
|
2,016
|
|
|
|
5,199
|
|
|
|
4,003
|
|
|
|
3,312
|
|
|
|
Total change in deferred net revenue
|
|
$
|
21,735
|
|
|
$
|
(7,516
|
)
|
|
$
|
27,621
|
|
|
$
|
21,997
|
|
|
$
|
42,847
|
|
|
|
Non-GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
86,018
|
|
|
$
|
82,310
|
|
|
$
|
62,445
|
|
|
$
|
51,723
|
|
|
$
|
61,245
|
|
|
-29
|
%
|
New solutions
|
|
|
8,198
|
|
|
|
7,338
|
|
|
|
9,405
|
|
|
|
11,881
|
|
|
|
9,643
|
|
|
18
|
%
|
Total Non-GAAP net revenue
|
|
$
|
94,216
|
|
|
$
|
89,648
|
|
|
$
|
71,850
|
|
|
$
|
63,604
|
|
|
$
|
70,888
|
|
|
-25
|
%
|
% Advanced metering infrastructure
|
|
|
91
|
%
|
|
|
92
|
%
|
|
|
87
|
%
|
|
|
81
|
%
|
|
|
86
|
%
|
|
|
% New solutions
|
|
|
9
|
%
|
|
|
8
|
%
|
|
|
13
|
%
|
|
|
19
|
%
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
68,562
|
|
|
$
|
71,602
|
|
|
$
|
21,843
|
|
|
$
|
34,251
|
|
|
$
|
15,700
|
|
|
-77
|
%
|
International
|
|
|
3,919
|
|
|
|
25,562
|
|
|
|
22,386
|
|
|
|
7,356
|
|
|
|
12,341
|
|
|
215
|
%
|
Total GAAP net revenue
|
|
$
|
72,481
|
|
|
$
|
97,164
|
|
|
$
|
44,229
|
|
|
$
|
41,607
|
|
|
$
|
28,041
|
|
|
-61
|
%
|
% United States
|
|
|
95
|
%
|
|
|
74
|
%
|
|
|
49
|
%
|
|
|
82
|
%
|
|
|
56
|
%
|
|
|
% International
|
|
|
5
|
%
|
|
|
26
|
%
|
|
|
51
|
%
|
|
|
18
|
%
|
|
|
44
|
%
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
15,289
|
|
|
$
|
1,369
|
|
|
$
|
41,256
|
|
|
$
|
22,799
|
|
|
$
|
48,248
|
|
|
|
International
|
|
|
6,446
|
|
|
|
(8,885
|
)
|
|
|
(13,635
|
)
|
|
|
(802
|
)
|
|
|
(5,401
|
)
|
|
|
Total change in deferred net revenue
|
|
$
|
21,735
|
|
|
$
|
(7,516
|
)
|
|
$
|
27,621
|
|
|
$
|
21,997
|
|
|
$
|
42,847
|
|
|
|
Non-GAAP net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
83,851
|
|
|
$
|
72,971
|
|
|
$
|
63,099
|
|
|
$
|
57,050
|
|
|
$
|
63,948
|
|
|
-24
|
%
|
International
|
|
|
10,365
|
|
|
|
16,677
|
|
|
|
8,751
|
|
|
|
6,554
|
|
|
|
6,940
|
|
|
-33
|
%
|
Total non-GAAP net revenue
|
|
$
|
94,216
|
|
|
$
|
89,648
|
|
|
$
|
71,850
|
|
|
$
|
63,604
|
|
|
$
|
70,888
|
|
|
-25
|
%
|
% United States
|
|
|
89
|
%
|
|
|
81
|
%
|
|
|
88
|
%
|
|
|
90
|
%
|
|
|
90
|
%
|
|
|
% International
|
|
|
11
|
%
|
|
|
19
|
%
|
|
|
12
|
%
|
|
|
10
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION
|
(in thousands, except percentages and headcount)
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YoY%
|
CASH FLOW DATA
|
|
CY13
|
|
CY13
|
|
CY14
|
|
CY14
|
|
CY14
|
|
Change
|
Operating cash flow
|
|
$
|
21,131
|
|
|
$
|
1,844
|
|
|
$
|
(3,260
|
)
|
|
$
|
(3,395
|
)
|
|
$
|
(15,734
|
)
|
|
-174
|
%
|
Operating cash flow - TTM
|
|
|
12,172
|
|
|
|
14
|
|
|
|
5,667
|
|
|
|
16,320
|
|
|
|
(20,545
|
)
|
|
-269
|
%
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
$
|
143,431
|
|
|
$
|
145,852
|
|
|
$
|
140,495
|
|
|
$
|
125,321
|
|
|
$
|
110,466
|
|
|
-23
|
%
|
Deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of quarter
|
|
|
532,546
|
|
|
|
524,653
|
|
|
|
552,328
|
|
|
|
575,106
|
|
|
|
617,416
|
|
|
|
Less: Beginning of quarter
|
|
|
(510,722
|
)
|
|
|
(532,546
|
)
|
|
|
(524,653
|
)
|
|
|
(552,328
|
)
|
|
|
(575,106
|
)
|
|
|
Foreign currency translation adjustment and other
|
|
|
(89
|
)
|
|
|
377
|
|
|
|
(54
|
)
|
|
|
(781
|
)
|
|
|
537
|
|
|
|
Change in deferred net revenue, net of foreign currency translation
|
|
$
|
21,735
|
|
|
$
|
(7,516
|
)
|
|
$
|
27,621
|
|
|
$
|
21,997
|
|
|
$
|
42,847
|
|
|
|
Deferred cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of quarter
|
|
|
275,101
|
|
|
|
276,123
|
|
|
$
|
296,489
|
|
|
$
|
313,458
|
|
|
$
|
338,633
|
|
|
|
Less: Beginning of quarter
|
|
|
(268,236
|
)
|
|
|
(275,101
|
)
|
|
|
(276,123
|
)
|
|
|
(296,489
|
)
|
|
|
(313,458
|
)
|
|
|
Foreign currency translation adjustment
|
|
|
(23
|
)
|
|
|
(11
|
)
|
|
|
(109
|
)
|
|
|
(168
|
)
|
|
|
69
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
$
|
6,842
|
|
|
$
|
1,011
|
|
|
$
|
20,257
|
|
|
$
|
16,801
|
|
|
$
|
25,244
|
|
|
|
STOCK-BASED COMPENSATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$
|
1,376
|
|
|
$
|
1,644
|
|
|
$
|
2,692
|
|
|
$
|
1,930
|
|
|
$
|
2,770
|
|
|
101
|
%
|
Research and development
|
|
|
1,905
|
|
|
|
2,277
|
|
|
|
3,155
|
|
|
|
2,695
|
|
|
|
3,042
|
|
|
60
|
%
|
Sales and marketing
|
|
|
950
|
|
|
|
1,238
|
|
|
|
2,045
|
|
|
|
1,754
|
|
|
|
1,783
|
|
|
88
|
%
|
General and administrative
|
|
|
2,759
|
|
|
|
2,842
|
|
|
|
3,540
|
|
|
|
3,183
|
|
|
|
2,881
|
|
|
4
|
%
|
|
|
$
|
6,990
|
|
|
$
|
8,001
|
|
|
$
|
11,432
|
|
|
$
|
9,562
|
|
|
$
|
10,476
|
|
|
50
|
%
|
EMPLOYEES
|
|
|
608
|
|
|
|
602
|
|
|
|
617
|
|
|
|
639
|
|
|
|
589
|
|
|
-3
|
%
|
HOMES & BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative network endpoints delivered*
|
|
|
17,509
|
|
|
|
18,184
|
|
|
|
18,710
|
|
|
|
19,081
|
|
|
|
19,714
|
|
|
13
|
%
|
*Endpoints refer to communication modules in electric meters
|
|
SILVER SPRING NETWORKS
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(In thousands, except per share data and percentages)
|
|
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
YOY %
|
QUARTERLY RECONCILIATION OF RESULTS
|
|
CY13
|
|
CY13
|
|
CY14
|
|
CY14
|
|
CY14
|
|
Change
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net revenue
|
|
$
|
72,481
|
|
|
$
|
97,164
|
|
|
$
|
44,229
|
|
|
$
|
41,607
|
|
|
$
|
28,041
|
|
|
-61
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
27,621
|
|
|
|
21,997
|
|
|
|
42,847
|
|
|
|
Non-GAAP net revenue
|
|
$
|
94,216
|
|
|
$
|
89,648
|
|
|
$
|
71,850
|
|
|
$
|
63,604
|
|
|
$
|
70,888
|
|
|
-25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
23,226
|
|
|
$
|
33,744
|
|
|
$
|
11,444
|
|
|
$
|
13,412
|
|
|
$
|
1,303
|
|
|
-94
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
27,621
|
|
|
|
21,997
|
|
|
|
42,847
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(6,842
|
)
|
|
|
(1,011
|
)
|
|
|
(20,257
|
)
|
|
|
(16,801
|
)
|
|
|
(25,244
|
)
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
182
|
|
|
|
Stock-based compensation
|
|
|
1,376
|
|
|
|
1,644
|
|
|
|
2,692
|
|
|
|
1,930
|
|
|
|
2,770
|
|
|
|
Non-GAAP gross profit
|
|
$
|
39,543
|
|
|
$
|
26,909
|
|
|
$
|
21,548
|
|
|
$
|
20,586
|
|
|
$
|
21,858
|
|
|
-45
|
%
|
GAAP gross margin % (as a % of GAAP net revenue)
|
|
|
32
|
%
|
|
|
35
|
%
|
|
|
26
|
%
|
|
|
32
|
%
|
|
|
5
|
%
|
|
|
Non-GAAP gross margin % (as a % of non-GAAP net revenue)
|
|
|
42
|
%
|
|
|
30
|
%
|
|
|
30
|
%
|
|
|
32
|
%
|
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating loss
|
|
$
|
(12,115
|
)
|
|
$
|
(48
|
)
|
|
$
|
(27,171
|
)
|
|
$
|
(24,672
|
)
|
|
$
|
(37,420
|
)
|
|
-209
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
27,621
|
|
|
|
21,997
|
|
|
|
42,847
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(6,842
|
)
|
|
|
(1,011
|
)
|
|
|
(20,257
|
)
|
|
|
(16,801
|
)
|
|
|
(25,244
|
)
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
299
|
|
|
|
Stock-based compensation
|
|
|
6,990
|
|
|
|
8,001
|
|
|
|
11,432
|
|
|
|
9,562
|
|
|
|
10,476
|
|
|
|
Restructuring and other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,905
|
|
|
|
Legal settlements
|
|
|
-
|
|
|
|
250
|
|
|
|
-
|
|
|
|
(100
|
)
|
|
|
(17
|
)
|
|
|
Non-GAAP operating income (loss)
|
|
$
|
9,816
|
|
|
$
|
(276
|
)
|
|
$
|
(8,327
|
)
|
|
$
|
(9,966
|
)
|
#
|
$
|
(7,154
|
)
|
|
-173
|
%
|
GAAP operating margin % (as a % of GAAP revenue)
|
|
|
-17
|
%
|
|
|
0
|
%
|
|
|
-61
|
%
|
|
|
-59
|
%
|
|
|
-133
|
%
|
|
|
Non-GAAP operating margin % (as a % of non-GAAP net revenue)
|
|
|
10
|
%
|
|
|
0
|
%
|
|
|
-12
|
%
|
|
|
-16
|
%
|
|
|
-10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
(12,269
|
)
|
|
$
|
358
|
|
|
$
|
(27,807
|
)
|
|
$
|
(24,591
|
)
|
|
$
|
(37,273
|
)
|
|
-204
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
27,621
|
|
|
|
21,997
|
|
|
|
42,847
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(6,842
|
)
|
|
|
(1,011
|
)
|
|
|
(20,257
|
)
|
|
|
(16,801
|
)
|
|
|
(25,244
|
)
|
|
|
Other (income) expense, net
|
|
|
54
|
|
|
|
(138
|
)
|
|
|
37
|
|
|
|
(85
|
)
|
|
|
(7
|
)
|
|
|
Provision (benefit) for income taxes
|
|
|
100
|
|
|
|
(268
|
)
|
|
|
599
|
|
|
|
4
|
|
|
|
(140
|
)
|
|
|
Depreciation and amortization
|
|
|
1,624
|
|
|
|
1,656
|
|
|
|
1,466
|
|
|
|
1,467
|
|
|
|
1,771
|
|
|
|
Stock-based compensation
|
|
|
6,990
|
|
|
|
8,001
|
|
|
|
11,432
|
|
|
|
9,562
|
|
|
|
10,476
|
|
|
|
Restructuring and other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,905
|
|
|
|
Legal settlements
|
|
|
-
|
|
|
|
250
|
|
|
|
-
|
|
|
|
(100
|
)
|
|
|
(17
|
)
|
|
|
Adjusted EBITDA
|
|
$
|
11,392
|
|
|
$
|
1,332
|
|
|
$
|
(6,909
|
)
|
|
$
|
(8,547
|
)
|
|
$
|
(5,682
|
)
|
|
-150
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
(12,269
|
)
|
|
$
|
358
|
|
|
$
|
(27,807
|
)
|
|
$
|
(24,591
|
)
|
|
$
|
(37,273
|
)
|
|
-204
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
21,735
|
|
|
|
(7,516
|
)
|
|
|
27,621
|
|
|
|
21,997
|
|
|
|
42,847
|
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
(6,842
|
)
|
|
|
(1,011
|
)
|
|
|
(20,257
|
)
|
|
|
(16,801
|
)
|
|
|
(25,244
|
)
|
|
|
Amortization of intangibles in cost of revenue
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
48
|
|
|
|
299
|
|
|
|
Stock-based compensation
|
|
|
6,990
|
|
|
|
8,001
|
|
|
|
11,432
|
|
|
|
9,562
|
|
|
|
10,476
|
|
|
|
Restructuring and other
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,905
|
|
|
|
Legal settlements
|
|
|
-
|
|
|
|
250
|
|
|
|
-
|
|
|
|
(100
|
)
|
|
|
(17
|
)
|
|
|
Non-GAAP net income (loss)
|
|
$
|
9,662
|
|
|
$
|
130
|
|
|
$
|
(8,963
|
)
|
|
$
|
(9,885
|
)
|
|
$
|
(7,007
|
)
|
|
-173
|
%
|
GAAP net margin % (as a % of GAAP revenue)
|
|
|
-17
|
%
|
|
|
0
|
%
|
|
|
-63
|
%
|
|
|
-59
|
%
|
|
|
-133
|
%
|
|
|
Non-GAAP net margin % (as a % of non-GAAP net revenue)
|
|
|
10
|
%
|
|
|
0
|
%
|
|
|
-12
|
%
|
|
|
-16
|
%
|
|
|
-10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.26
|
)
|
|
$
|
0.01
|
|
|
$
|
(0.58
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
(0.77
|
)
|
|
|
Diluted
|
|
$
|
(0.26
|
)
|
|
$
|
0.01
|
|
|
$
|
(0.58
|
)
|
|
$
|
(0.51
|
)
|
|
$
|
(0.77
|
)
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
46,729
|
|
|
|
47,198
|
|
|
|
47,693
|
|
|
|
48,315
|
|
|
|
48,551
|
|
|
|
Diluted
|
|
|
46,729
|
|
|
|
49,603
|
|
|
|
47,693
|
|
|
|
48,315
|
|
|
|
48,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.21
|
|
|
$
|
0.00
|
|
|
$
|
(0.19
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(0.14
|
)
|
|
|
Diluted
|
|
$
|
0.19
|
|
|
$
|
0.00
|
|
|
$
|
(0.19
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(0.14
|
)
|
|
|
Weighted average number of shares used in computation
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
46,729
|
|
|
|
47,198
|
|
|
|
47,693
|
|
|
|
48,315
|
|
|
|
48,551
|
|
|
|
Diluted
|
|
|
49,620
|
|
|
|
49,603
|
|
|
|
47,693
|
|
|
|
48,315
|
|
|
|
48,551
|
|
|
|
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