[August 04, 2016] |
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Silver Spring Networks Reports Second Quarter 2016 Financial Results
Silver Spring Networks, Inc. (NYSE: SSNI) today announced financial
results for its second quarter ended June 30, 2016.
Second Quarter Results (all comparisons made are against the
prior year period, unless otherwise stated)
GAAP Results:
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Revenue was $122.0 million, up 58%.
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Gross margin was 52.9%, versus 25.9%.
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Net income was $26.1 million versus a net loss of ($16.2) million.
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Net income per diluted share was $0.50 versus a ($0.32) net loss per
share.
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$113.1 million in cash, cash equivalents and short-term investments at
the end of the quarter, versus $118.6 million.
Non-GAAP Metrics:
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Billings1 of $71.8 million, up 4%.
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Gross margin on billings2 of 46.0%, versus 41.9%.
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Non-GAAP net income of $0.9 million versus a net income of $1.1
million.
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Non-GAAP income per fully-diluted share of $0.02, versus $0.02.
1Billings previously reported as non-GAAP revenue. 2Gross
margin on billings previously reported as non-GAAP gross margin.
"We had another strong quarter, expanding our footprint by approximately
747,000 endpoints," said Mike Bell, President and CEO, Silver Spring
Networks. "Our second quarter results, and our high-profile awards in
2016, demonstrate the strong position we have built in our smart grid
and smart city markets. We see significant potential for continued
innovation and growth in our core markets, and a great opportunity to
leverage Silver Spring's technology and platform into the broader
Internet of Things opportunity."
Business Highlights (through August 4, 2016, unless otherwise
stated):
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Selected by major U.S. integrated utility company to deploy our
fifth-generation network canopy and advanced metering infrastructure
for approximately 2.8 million electric customers.
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Selected by Federal Electricity Commission of Mexico, or CFE,
for additional deployments in Mexico City to deploy cabinet-based
theft detection solutions for an initial deployment of 70,000 homes
and businesses in the southeastern region.
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Continued expansion of the StarfishTM
public IoT cloud and data platform, with plans to offer IoT
service to Providence, Rhode Island. Silver Spring will own and
operate the network in Providence to connect nearly 17,000 LED
streetlights.
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Selected for a pilot by London Hydro, the local distribution
company serving approximately 150,000 homes and businesses in the city
of London, Ontario, Canada. London Hydro is re-evaluating the
technical requirements of its existing AMI network and the ability to
support additional IoT applications such as demand response.
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Selected by American Municipal Power for an initial AMI
deployment to help its member municipalities provide better customer
experience and service for 60,000 electric and 30,000 water customers.
-
Selected to deploy a Starfish services network in Mayo County,
Ireland, for a broad range of IoT applications beginning
with street lights and a residential energy efficiency project.
-
Opened New Silicon Valley Headquarters and deployed Starfish
IoT network in San Jose.
-
Over 24.3 million cumulative network endpoints delivered from
inception through June 30, 2016, up 13% from a year ago.
Conference Call
Silver Spring will host a conference call today at 2:00 pm PT (5:00 pm
ET) to review its results for the second quarter ended June 30, 2016 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.ssni.com.
A dial-in replay of the conference call will be available until
September 15, 2016 and can be accessed at 877-660-6853 (domestic) or
201-612-7415 (international) passcode 13642103. An audio webcast replay
of the conference call will be available for one year at http://ir.ssni.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 24.3 million Silver Spring enabled
devices delivered, is connecting utilities to homes and businesses
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,
Consolidated Edison, CPS Energy, Florida Power & Light, Jemena
Electricity Networks Limited, Pacific Gas & Electric, Pepco Holdings,
Progress Energy, and Singapore Power, among others. To learn more,
please visit www.ssni.com.
Revised Presentation of Non-GAAP Metrics:
Beginning this quarter, we have revised the way we refer to several of
our non-GAAP financial measures. Definitions of our revised non-GAAP
measures, which are unchanged other than the names, will be provided in
our Q2 2016 10-Q filing.
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Revised Metric - Q2 2016
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Previous Metric - Q1 2016 and before
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Billings
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Non-GAAP revenue
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Recurring billings
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Recurring non-GAAP revenue
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Recurring billings per endpoint
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Recurring non-GAAP revenue per endpoint
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Cost of billings
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Cost of non-GAAP revenue
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Gross profit (loss) on billings
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Non-GAAP gross profit (loss)
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Gross margin on billings
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Non-GAAP gross margin
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AMI billings
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Non-GAAP revenue from AMI
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New solution billings
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Non-GAAP new solution revenue
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Product billings
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Non-GAAP product revenue
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Service billings
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Non-GAAP service revenue
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Managed services & SaaS billings
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Non-GAAP Managed service & SaaS revenue
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Professional services billings
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Non-GAAP Professional services revenue
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International billings
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Non-GAAP international revenue
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Domestic billings
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Non-GAAP domestic revenue
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Unchanged Presentation of Selected Non-GAAP Metrics:
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Non-GAAP operating expense
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Non-GAAP operating income (loss)
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Non-GAAP operating margin
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Non-GAAP income tax provision (benefit)
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Non-GAAP net income (loss)
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Non-GAAP income (loss) per share
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Adjusted EBITDA
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Non-GAAP and Other Financial Metrics
Silver Spring supplements the results of operations presented in
accordance with generally accepted accounting principles, or GAAP, with
certain non-GAAP metrics. Silver Spring manages its business, makes
planning decisions, evaluates its performance and allocates resources by
assessing non-GAAP metrics such as billings, recurring billings,
recurring billings per endpoint, cost of billings, gross profit (loss)
on billings, gross margin on billings, non-GAAP operating expense,
non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP
income tax provision (benefit), non-GAAP net income (loss), non-GAAP
income (loss) per share, adjusted EBITDA, and total backlog. Silver
Spring believes that these non-GAAP financial metrics, when taken
together with the corresponding GAAP 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 metrics 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), gross margin, operating expense, operating loss, net income
(loss), net income (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.
Billings 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. Billings excludes amounts for undelivered products, services to
be performed in the future, and amounts paid or payable to customers.
Billings are initially recorded as deferred revenue and are then
recognized as revenue when all revenue recognition criteria has 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 billings by adding revenue to the change in
deferred revenue in a given period.
Recurring billings are billings from Managed services and SaaS,
as well as customer support and other service offerings. Recurring
billings are primarily recurring in nature and include managed services,
hosting and software maintenance, and support fees, as well as one-time
Managed services and SaaS set up fees. Customer support and other
services are provided to customers outside of Managed services and SaaS
offerings, and are also recurring in nature. Silver Spring reconciles
recurring revenue to recurring billings by adding revenue to the change
in deferred revenue in a given period.
Recurring billings per endpoint represents a trailing
twelve-month recurring billings revenue per cumulative endpoint shipped
from inception to date.
Cost of billings represents the cost associated with products and
services that have been delivered to the customer, excluding stock-based
compensation, amortization of intangibles and acquisition-related
charges. 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 cost of billings by adding cost of revenue and the
change in deferred cost of revenue, less stock-based compensation,
amortization of intangibles and acquisition-related charges, included in
cost of revenue in a given period.
Gross profit (loss) on billings is the difference between
billings and cost of billings.
Gross margin on billings is gross profit (loss) on billings as a
percentage of billings.
Non-GAAP operating expense consists of research and development,
sales and marketing, and general and administrative expenses, excluding
amortization of intangible assets, stock-based compensation,
acquisition-related charges, restructuring and legal settlements.
Non-GAAP operating income (loss) represents operating income
(loss) adjusted for billings and cost of billings and excludes expenses
related to the amortization of intangible assets, stock-based
compensation, acquisition-related charges, restructuring and legal
settlements.
Non-GAAP operating margin is non-GAAP operating income (loss) as
a percentage of billings.
Non-GAAP income tax provision (benefit) represents income tax
provision (benefit) excluding income tax benefit related to acquisitions.
Non-GAAP net income (loss) represents net income (loss) adjusted
for changes in deferred revenue and deferred cost of revenue, and
excludes expenses related to the amortization of intangible assets,
stock-based compensation, acquisition-related charges, income tax
benefit related to acquisitions, restructuring and legal settlements.
Non-GAAP income (loss) per share represents non-GAAP net income
(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, (benefit) provision for income taxes, depreciation and
amortization, stock-based compensation, acquisition-related charges,
restructuring, legal settlements and certain other items management
believes affect the comparability of operating results.
Total backlog represents future product and service billings that
Silver Spring expects to generate pursuant to contracts entered into
with its 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;
customer and industry activity; future deployments; future innovation;
future product availability; future growth and market opportunity; 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; receipt by our customers of required
regulatory approvals; 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; the expansion of our target markets, including the
IoT market; 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,
including our new fifth generation networking platform and products; 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 August 4th, 2016. 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.
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SILVER SPRING NETWORKS, INC.
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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(in thousands, except per share data)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2016
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2015
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2016
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2015
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Revenue:
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Product revenue
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$
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69,917
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$
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54,711
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$
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102,769
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$
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159,746
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Services revenue
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52,035
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22,456
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67,803
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61,061
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Net revenue
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121,952
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77,167
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170,572
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220,807
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Cost of revenue:
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Product cost of revenue
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41,439
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40,533
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57,419
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97,150
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Services cost of revenue
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15,970
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16,678
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31,613
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32,246
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Total cost of revenue
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57,409
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57,211
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89,032
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129,396
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Gross profit
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64,543
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19,956
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81,540
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91,411
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Operating expenses:
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Research and development
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17,933
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16,050
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33,418
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31,744
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Sales and marketing
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8,622
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8,912
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18,172
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18,209
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General and administrative
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11,239
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10,455
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22,085
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22,584
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Restructuring
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-
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1,078
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39
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1,272
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Total operating expenses
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37,794
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36,495
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73,714
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73,809
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Operating income (loss)
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26,749
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(16,539
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)
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7,826
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17,602
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Other income, net
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333
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74
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774
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362
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Income (loss) before income taxes
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27,082
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(16,465
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)
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8,600
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17,964
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(Provision) benefit for income taxes
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(961
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290
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(993
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)
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766
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Net income (loss)
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$
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26,121
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$
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(16,175
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)
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$
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7,607
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$
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18,730
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Net income (loss) per share:
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Basic
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$
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0.51
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$
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(0.32
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)
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$
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0.15
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$
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0.38
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Diluted
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$
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0.50
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$
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(0.32
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)
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$
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0.14
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$
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0.37
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Weighted average shares used to compute net income (loss) per share:
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Basic
|
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51,224
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49,862
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50,992
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49,586
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Diluted
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52,766
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49,862
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52,492
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51,095
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Reconciliation of GAAP to non-GAAP results (in thousands,
except per share data)
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The following tables reconcile the Company's net income (loss) and
net 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 net income
(loss) per share.
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2016
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2015
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2016
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2015
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Net income (loss)
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$
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26,121
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$
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(16,175
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)
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$
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7,607
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$
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18,730
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Change in deferred revenue, net of foreign currency translation
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(50,106
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)
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(8,027
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)
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(29,812
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)
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(88,568
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)
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Change in deferred cost of revenue, net of foreign currency
translation
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16,992
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14,488
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8,324
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47,004
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Amortization of intangibles
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375
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422
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796
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|
831
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Stock-based compensation
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7,041
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8,661
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13,941
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15,684
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Acquisition-related charges
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510
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751
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1,026
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|
|
1,486
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Income tax benefit related to Detectent acquisition
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-
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(124
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)
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-
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(1,014
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)
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Restructuring
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|
|
|
|
-
|
|
|
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1,078
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|
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39
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|
|
|
1,272
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Non-GAAP net income (loss)
|
|
|
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$
|
933
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|
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$
|
1,074
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|
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$
|
1,921
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$
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(4,575
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)
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Non-GAAP net income (loss) per share:
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|
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|
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Basic
|
|
|
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$
|
0.02
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|
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$
|
0.02
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|
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$
|
0.04
|
|
|
$
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(0.09
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)
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Diluted
|
|
|
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$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.04
|
|
|
$
|
(0.09
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)
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Weighted average shares used to compute non-GAAP net income (loss)
per share:
|
|
|
|
|
|
|
|
|
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Basic
|
|
|
|
|
51,224
|
|
|
|
49,862
|
|
|
|
50,992
|
|
|
|
49,586
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Diluted
|
|
|
|
|
52,766
|
|
|
|
51,390
|
|
|
|
52,492
|
|
|
|
49,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
|
|
2016
|
|
2015 (a)
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
67,979
|
|
|
$
|
65,264
|
|
Short-term investments
|
|
|
|
|
45,085
|
|
|
|
59,181
|
|
Accounts receivable
|
|
|
|
|
46,998
|
|
|
|
47,813
|
|
Inventory
|
|
|
|
|
2,486
|
|
|
|
4,545
|
|
Deferred cost of revenue
|
|
|
|
|
201,654
|
|
|
|
196,868
|
|
Prepaid expenses and other current assets
|
|
|
|
|
14,195
|
|
|
|
10,835
|
|
Total current assets
|
|
|
|
|
378,397
|
|
|
|
384,506
|
|
Property and equipment, net
|
|
|
|
|
28,072
|
|
|
|
14,106
|
|
Goodwill and intangible assets
|
|
|
|
|
13,590
|
|
|
|
14,390
|
|
Deferred cost of revenue, non-current
|
|
|
|
|
25,905
|
|
|
|
38,882
|
|
Deferred tax assets, non-current
|
|
|
|
|
976
|
|
|
|
1,069
|
|
Other long-term assets
|
|
|
|
|
2,466
|
|
|
|
4,772
|
|
Total assets
|
|
|
|
$
|
449,406
|
|
|
$
|
457,725
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
31,983
|
|
|
$
|
30,623
|
|
Deferred revenue
|
|
|
|
|
294,883
|
|
|
|
305,471
|
|
Accrued and other liabilities
|
|
|
|
|
36,319
|
|
|
|
42,751
|
|
Total current liabilities
|
|
|
|
|
363,185
|
|
|
|
378,845
|
|
Deferred revenue, non-current
|
|
|
|
|
77,051
|
|
|
|
96,342
|
|
Other liabilities
|
|
|
|
|
21,444
|
|
|
|
16,403
|
|
Total liabilities
|
|
|
|
|
461,680
|
|
|
|
491,590
|
|
Total stockholders' deficit
|
|
|
|
|
(12,274
|
)
|
|
|
(33,865
|
)
|
Total liabilities and stockholders' deficit
|
|
|
|
$
|
449,406
|
|
|
$
|
457,725
|
|
|
|
|
|
|
|
|
|
|
(a) Derived from audited consolidated financial statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2016 (a)
|
|
2015
|
|
2016 (a)
|
|
2015
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
26,121
|
|
|
$
|
(16,175
|
)
|
|
$
|
7,607
|
|
|
$
|
18,730
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxes
|
|
|
|
|
111
|
|
|
|
(217
|
)
|
|
|
111
|
|
|
|
(1,107
|
)
|
Depreciation and amortization
|
|
|
|
|
2,104
|
|
|
|
1,953
|
|
|
|
4,236
|
|
|
|
3,902
|
|
Stock-based compensation
|
|
|
|
|
7,041
|
|
|
|
8,661
|
|
|
|
13,941
|
|
|
|
15,684
|
|
Other non-cash adjustments
|
|
|
|
|
52
|
|
|
|
71
|
|
|
|
113
|
|
|
|
124
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(3,117
|
)
|
|
|
6,340
|
|
|
|
859
|
|
|
|
13,641
|
|
Inventory
|
|
|
|
|
1,591
|
|
|
|
2,837
|
|
|
|
2,061
|
|
|
|
2,233
|
|
Prepaid expenses and other assets
|
|
|
|
|
(264
|
)
|
|
|
(1,892
|
)
|
|
|
1,944
|
|
|
|
(2,796
|
)
|
Landlord leasehold improvements incentives
|
|
|
|
|
2,275
|
|
|
|
-
|
|
|
|
2,275
|
|
|
|
-
|
|
Contingent consideration related to Detectent acquisition held in
escrow
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,000
|
)
|
Deferred cost of revenue
|
|
|
|
|
17,040
|
|
|
|
14,478
|
|
|
|
8,236
|
|
|
|
46,994
|
|
Accounts payable
|
|
|
|
|
899
|
|
|
|
(5,248
|
)
|
|
|
1,512
|
|
|
|
(2,370
|
)
|
Customer deposits
|
|
|
|
|
-
|
|
|
|
1,658
|
|
|
|
(6
|
)
|
|
|
1,458
|
|
Deferred revenue
|
|
|
|
|
(50,042
|
)
|
|
|
(8,470
|
)
|
|
|
(29,988
|
)
|
|
|
(89,031
|
)
|
Accrued and other liabilities
|
|
|
|
|
329
|
|
|
|
5,617
|
|
|
|
(5,031
|
)
|
|
|
5,696
|
|
Net cash provided by operating activities
|
|
|
|
|
4,140
|
|
|
|
9,613
|
|
|
|
7,870
|
|
|
|
9,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for business acquisition, net of cash and cash
equivalents acquired
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,098
|
)
|
Proceeds from sales of available-for-sale investments
|
|
|
|
|
18,111
|
|
|
|
7,400
|
|
|
|
22,944
|
|
|
|
7,400
|
|
Proceeds from maturities of available-for-sale investments
|
|
|
|
|
1,250
|
|
|
|
3,750
|
|
|
|
2,250
|
|
|
|
7,750
|
|
Purchases of available-for-sale investments
|
|
|
|
|
(7,515
|
)
|
|
|
(7,567
|
)
|
|
|
(10,954
|
)
|
|
|
(11,623
|
)
|
Purchases of property and equipment
|
|
|
|
|
(13,097
|
)
|
|
|
(538
|
)
|
|
|
(17,582
|
)
|
|
|
(1,912
|
)
|
Net cash (used in) provided by investing activities
|
|
|
|
|
(1,251
|
)
|
|
|
3,045
|
|
|
|
(3,342
|
)
|
|
|
(5,483
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments on capital lease obligations
|
|
|
|
|
(141
|
)
|
|
|
(346
|
)
|
|
|
(285
|
)
|
|
|
(756
|
)
|
Proceeds from issuance of common stock
|
|
|
|
|
340
|
|
|
|
131
|
|
|
|
2,228
|
|
|
|
2,036
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
|
(3,286
|
)
|
|
|
(1,455
|
)
|
|
|
(3,620
|
)
|
|
|
(3,512
|
)
|
Net cash (used in) financing activities
|
|
|
|
|
(3,087
|
)
|
|
|
(1,670
|
)
|
|
|
(1,677
|
)
|
|
|
(2,232
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
(234
|
)
|
|
|
76
|
|
|
|
(136
|
)
|
|
|
(140
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
|
(432
|
)
|
|
|
11,065
|
|
|
|
2,715
|
|
|
|
1,303
|
|
Cash and cash equivalents - beginning of period
|
|
|
|
|
68,411
|
|
|
|
50,695
|
|
|
|
65,264
|
|
|
|
60,457
|
|
Cash and cash equivalents - end of period
|
|
|
|
$
|
67,979
|
|
|
$
|
61,760
|
|
|
$
|
67,979
|
|
|
$
|
61,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the course of preparing the condensed consolidated
financial statements for the quarter ended June 30, 2016, we
determined that the cash provided from operating activities was
understated and cash provided by investing activities was
overstated by $2.3 million in the condensed consolidated
statements of cash flows for the three months ended March 31,
2016, as included in the Company's First Quarter Form 10-Q. We
evaluated the materiality of the error, quantitatively and
qualitatively, and concluded it was not material to our condensed
consolidated financial statements for the three months ended March
31, 2016. Although we have concluded the error was not material,
the cash flows presented above for the three and six months ended
June 30, 2016, reflect that the cash flows from operating
activities and investing activities for the three months ended
March 31, 2016 were corrected for this error.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED RECONCILIATION OF NET REVENUE BETWEEN GAAP AND NON-GAAP
|
(in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
YoY%
|
TYPE
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2016
|
|
2016
|
|
Change
|
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product net revenue
|
|
|
|
$
|
54,711
|
|
|
$
|
50,093
|
|
|
$
|
143,202
|
|
|
$
|
32,852
|
|
|
$
|
69,917
|
|
|
28
|
%
|
Services net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
|
10,608
|
|
|
|
11,223
|
|
|
|
37,142
|
|
|
|
11,068
|
|
|
|
24,570
|
|
|
132
|
%
|
Professional services
|
|
|
|
|
11,848
|
|
|
|
8,189
|
|
|
|
18,903
|
|
|
|
4,700
|
|
|
|
27,465
|
|
|
132
|
%
|
Total services net revenue
|
|
|
|
|
22,456
|
|
|
|
19,412
|
|
|
|
56,045
|
|
|
|
15,768
|
|
|
|
52,035
|
|
|
132
|
%
|
Total net revenue
|
|
|
|
$
|
77,167
|
|
|
$
|
69,505
|
|
|
$
|
199,247
|
|
|
$
|
48,620
|
|
|
$
|
121,952
|
|
|
58
|
%
|
% Product
|
|
|
|
|
71
|
%
|
|
|
72
|
%
|
|
|
72
|
%
|
|
|
68
|
%
|
|
|
57
|
%
|
|
|
% Services
|
|
|
|
|
29
|
%
|
|
|
28
|
%
|
|
|
28
|
%
|
|
|
32
|
%
|
|
|
43
|
%
|
|
|
Change in deferred net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred product revenue
|
|
|
|
$
|
(10,015
|
)
|
|
$
|
1,785
|
|
|
$
|
(95,194
|
)
|
|
$
|
12,883
|
|
|
$
|
(23,804
|
)
|
|
|
Change in deferred services revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
|
2,387
|
|
|
|
1,397
|
|
|
|
(22,896
|
)
|
|
|
1,820
|
|
|
|
(9,650
|
)
|
|
|
Professional services
|
|
|
|
|
(399
|
)
|
|
|
2,010
|
|
|
|
(6,169
|
)
|
|
|
5,591
|
|
|
|
(16,652
|
)
|
|
|
Total change in deferred services revenue
|
|
|
|
|
1,988
|
|
|
|
3,407
|
|
|
|
(29,065
|
)
|
|
|
7,411
|
|
|
|
(26,302
|
)
|
|
|
Total change in deferred revenue
|
|
|
|
$
|
(8,027
|
)
|
|
$
|
5,192
|
|
|
$
|
(124,259
|
)
|
|
$
|
20,294
|
|
|
$
|
(50,106
|
)
|
|
|
Billings(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
|
$
|
44,696
|
|
|
$
|
51,878
|
|
|
$
|
48,008
|
|
|
$
|
45,735
|
|
|
$
|
46,113
|
|
|
3
|
%
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
|
12,995
|
|
|
|
12,620
|
|
|
|
14,246
|
|
|
|
12,888
|
|
|
|
14,920
|
|
|
15
|
%
|
Professional services
|
|
|
|
|
11,449
|
|
|
|
10,199
|
|
|
|
12,734
|
|
|
|
10,291
|
|
|
|
10,813
|
|
|
-6
|
%
|
Total services
|
|
|
|
|
24,444
|
|
|
|
22,819
|
|
|
|
26,980
|
|
|
|
23,179
|
|
|
|
25,733
|
|
|
5
|
%
|
Total Billings(1)
|
|
|
|
$
|
69,140
|
|
|
$
|
74,697
|
|
|
$
|
74,988
|
|
|
$
|
68,914
|
|
|
$
|
71,846
|
|
|
4
|
%
|
% Product
|
|
|
|
|
65
|
%
|
|
|
69
|
%
|
|
|
64
|
%
|
|
|
66
|
%
|
|
|
64
|
%
|
|
|
% Service
|
|
|
|
|
35
|
%
|
|
|
31
|
%
|
|
|
36
|
%
|
|
|
34
|
%
|
|
|
36
|
%
|
|
|
RECURRING REVENUE PER ENDPOINT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring revenue(TTM)
|
|
|
|
$
|
41,697
|
|
|
$
|
45,374
|
|
|
$
|
71,947
|
|
|
$
|
70,041
|
|
|
$
|
84,003
|
|
|
|
Changes in deferred revenue, net of foreign currency translations
|
|
|
|
|
6,912
|
|
|
|
4,349
|
|
|
|
(19,531
|
)
|
|
|
(17,292
|
)
|
|
|
(29,329
|
)
|
|
|
Recurring Billings(TTM)(1)
|
|
|
|
$
|
48,609
|
|
|
$
|
49,723
|
|
|
$
|
52,416
|
|
|
$
|
52,749
|
|
|
$
|
54,674
|
|
|
|
Cumulative network endpoints delivered
|
|
|
|
|
21,506
|
|
|
|
22,321
|
|
|
|
22,954
|
|
|
|
23,652
|
|
|
|
24,399
|
|
|
|
Recurring revenue per endpoint delivered
|
|
|
|
$
|
1.94
|
|
|
$
|
2.03
|
|
|
$
|
3.13
|
|
|
$
|
2.96
|
|
|
$
|
3.44
|
|
|
77
|
%
|
Recurring billings per endpoint delivered(1)
|
|
|
|
$
|
2.26
|
|
|
$
|
2.23
|
|
|
$
|
2.28
|
|
|
$
|
2.23
|
|
|
$
|
2.24
|
|
|
-1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOLUTION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
|
|
$
|
66,907
|
|
|
$
|
60,149
|
|
|
$
|
181,892
|
|
|
$
|
40,514
|
|
|
$
|
105,181
|
|
|
57
|
%
|
New solutions
|
|
|
|
|
10,260
|
|
|
|
9,356
|
|
|
|
17,355
|
|
|
|
8,106
|
|
|
|
16,771
|
|
|
63
|
%
|
Total net revenue
|
|
|
|
$
|
77,167
|
|
|
$
|
69,505
|
|
|
$
|
199,247
|
|
|
$
|
48,620
|
|
|
$
|
121,952
|
|
|
58
|
%
|
% Advanced metering infrastructure
|
|
|
|
|
87
|
%
|
|
|
87
|
%
|
|
|
91
|
%
|
|
|
83
|
%
|
|
|
86
|
%
|
|
|
% New solutions
|
|
|
|
|
13
|
%
|
|
|
13
|
%
|
|
|
9
|
%
|
|
|
17
|
%
|
|
|
14
|
%
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
|
|
$
|
(10,976
|
)
|
|
$
|
3,586
|
|
|
$
|
(123,525
|
)
|
|
$
|
16,957
|
|
|
$
|
(45,184
|
)
|
|
|
New solutions
|
|
|
|
|
2,949
|
|
|
|
1,606
|
|
|
|
(734
|
)
|
|
|
3,337
|
|
|
|
(4,922
|
)
|
|
|
Total change in deferred net revenue
|
|
|
|
$
|
(8,027
|
)
|
|
$
|
5,192
|
|
|
$
|
(124,259
|
)
|
|
$
|
20,294
|
|
|
$
|
(50,106
|
)
|
|
|
Billings(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
|
|
$
|
55,931
|
|
|
$
|
63,735
|
|
|
$
|
58,367
|
|
|
$
|
57,471
|
|
|
$
|
59,997
|
|
|
7
|
%
|
New solutions
|
|
|
|
|
13,209
|
|
|
|
10,962
|
|
|
|
16,621
|
|
|
|
11,443
|
|
|
|
11,849
|
|
|
-10
|
%
|
Total Billings(1)
|
|
|
|
$
|
69,140
|
|
|
$
|
74,697
|
|
|
$
|
74,988
|
|
|
$
|
68,914
|
|
|
$
|
71,846
|
|
|
4
|
%
|
% Advanced metering infrastructure
|
|
|
|
|
81
|
%
|
|
|
85
|
%
|
|
|
78
|
%
|
|
|
83
|
%
|
|
|
84
|
%
|
|
|
% New solutions
|
|
|
|
|
19
|
%
|
|
|
15
|
%
|
|
|
22
|
%
|
|
|
17
|
%
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GEOGRAPHY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
72,360
|
|
|
$
|
53,113
|
|
|
$
|
177,896
|
|
|
$
|
45,222
|
|
|
$
|
118,539
|
|
|
64
|
%
|
International
|
|
|
|
|
4,807
|
|
|
|
16,392
|
|
|
|
21,351
|
|
|
|
3,398
|
|
|
|
3,413
|
|
|
-29
|
%
|
Total net revenue
|
|
|
|
$
|
77,167
|
|
|
$
|
69,505
|
|
|
$
|
199,247
|
|
|
$
|
48,620
|
|
|
$
|
121,952
|
|
|
58
|
%
|
% United States
|
|
|
|
|
94
|
%
|
|
|
76
|
%
|
|
|
89
|
%
|
|
|
93
|
%
|
|
|
97
|
%
|
|
|
% International
|
|
|
|
|
6
|
%
|
|
|
24
|
%
|
|
|
11
|
%
|
|
|
7
|
%
|
|
|
3
|
%
|
|
|
Change in deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
(17,955
|
)
|
|
$
|
12,467
|
|
|
$
|
(116,859
|
)
|
|
$
|
8,468
|
|
|
$
|
(57,666
|
)
|
|
|
International
|
|
|
|
|
9,928
|
|
|
|
(7,275
|
)
|
|
|
(7,400
|
)
|
|
|
11,826
|
|
|
|
7,560
|
|
|
|
Total change in deferred net revenue
|
|
|
|
$
|
(8,027
|
)
|
|
$
|
5,192
|
|
|
$
|
(124,259
|
)
|
|
$
|
20,294
|
|
|
$
|
(50,106
|
)
|
|
|
Billings(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
54,405
|
|
|
$
|
65,580
|
|
|
$
|
61,037
|
|
|
$
|
53,690
|
|
|
$
|
60,873
|
|
|
12
|
%
|
International
|
|
|
|
|
14,735
|
|
|
|
9,117
|
|
|
|
13,951
|
|
|
|
15,224
|
|
|
|
10,973
|
|
|
-26
|
%
|
Total Billings(1)
|
|
|
|
$
|
69,140
|
|
|
$
|
74,697
|
|
|
$
|
74,988
|
|
|
$
|
68,914
|
|
|
$
|
71,846
|
|
|
4
|
%
|
% United States
|
|
|
|
|
79
|
%
|
|
|
88
|
%
|
|
|
81
|
%
|
|
|
78
|
%
|
|
|
85
|
%
|
|
|
% International
|
|
|
|
|
21
|
%
|
|
|
12
|
%
|
|
|
19
|
%
|
|
|
22
|
%
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We have revised the presentation of several of our non-GAAP
financial measures previously reported. See "Revised Presentation
of non-GAAP measures" section above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION
|
(in thousands, except percentages and headcount)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
YoY%
|
CASH FLOW DATA
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2016
|
|
2016
|
Change
|
Operating cash flow (a)
|
|
|
|
$
|
9,613
|
|
|
$
|
4,272
|
|
|
$
|
6,257
|
|
|
$
|
3,730
|
|
|
$
|
4,140
|
|
-57
|
%
|
Operating cash flow - TTM (a)
|
|
|
|
|
7,048
|
|
|
|
27,054
|
|
|
|
19,687
|
|
|
|
23,872
|
|
|
|
18,399
|
|
161
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
|
|
$
|
118,555
|
|
|
$
|
121,915
|
|
|
$
|
124,445
|
|
|
$
|
125,369
|
|
|
$
|
113,064
|
|
-5
|
%
|
Deferred net revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
|
|
$
|
529,984
|
|
|
$
|
521,176
|
|
|
$
|
526,000
|
|
|
$
|
401,813
|
|
|
$
|
421,987
|
|
|
Add: billings during the quarter
|
|
|
|
|
69,140
|
|
|
|
74,697
|
|
|
|
74,988
|
|
|
|
68,914
|
|
|
|
71,846
|
|
|
Less: revenue recognized during the quarter
|
|
|
|
|
(77,167
|
)
|
|
|
(69,505
|
)
|
|
|
(199,247
|
)
|
|
|
(48,620
|
)
|
|
|
(121,952
|
)
|
|
Foreign currency translation adjustment and other
|
|
|
|
|
(781
|
)
|
|
|
(368
|
)
|
|
|
72
|
|
|
|
(120
|
)
|
|
|
53
|
|
|
End of quarter
|
|
|
|
$
|
521,176
|
|
|
$
|
526,000
|
|
|
$
|
401,813
|
|
|
$
|
421,987
|
|
|
$
|
371,934
|
|
|
Deferred cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter
|
|
|
|
$
|
300,524
|
|
|
|
286,044
|
|
|
$
|
292,730
|
|
|
$
|
235,750
|
|
|
$
|
244,486
|
|
|
Add: cost of billings during the quarter
|
|
|
|
|
40,194
|
|
|
|
41,759
|
|
|
|
39,640
|
|
|
|
38,779
|
|
|
|
38,817
|
|
|
Add: stock-based compensation, amortization of intangible assets,
and acquisition related charges deferred during the quarter
|
|
|
|
|
2,529
|
|
|
|
1,471
|
|
|
|
1,280
|
|
|
|
1,512
|
|
|
|
1,600
|
|
|
Less: cost of revenue during the quarter
|
|
|
|
|
(57,211
|
)
|
|
|
(36,518
|
)
|
|
|
(97,902
|
)
|
|
|
(31,623
|
)
|
|
|
(57,409
|
)
|
|
Foreign currency translation adjustment and other
|
|
|
|
|
8
|
|
|
|
(26
|
)
|
|
|
2
|
|
|
|
68
|
|
|
|
65
|
|
|
End of quarter
|
|
|
|
$
|
286,044
|
|
|
$
|
292,730
|
|
|
$
|
235,750
|
|
|
$
|
244,486
|
|
|
$
|
227,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCK-BASED COMPENSATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
|
$
|
2,209
|
|
|
$
|
1,197
|
|
|
$
|
1,006
|
|
|
$
|
1,328
|
|
|
$
|
1,389
|
|
-37
|
%
|
Research and development
|
|
|
|
|
2,832
|
|
|
|
1,771
|
|
|
|
1,277
|
|
|
|
2,025
|
|
|
|
2,241
|
|
-21
|
%
|
Sales and marketing
|
|
|
|
|
1,287
|
|
|
|
914
|
|
|
|
665
|
|
|
|
831
|
|
|
|
726
|
|
-44
|
%
|
General and administrative
|
|
|
|
|
2,333
|
|
|
|
1,971
|
|
|
|
1,994
|
|
|
|
2,716
|
|
|
|
2,685
|
|
15
|
%
|
|
|
|
|
$
|
8,661
|
|
|
$
|
5,853
|
|
|
$
|
4,942
|
|
|
$
|
6,900
|
|
|
$
|
7,041
|
|
-19
|
%
|
EMPLOYEES
|
|
|
|
|
640
|
|
|
|
645
|
|
|
|
652
|
|
|
|
673
|
|
|
|
708
|
|
11
|
%
|
HOMES & BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative network endpoints delivered*
|
|
|
|
|
21,506
|
|
|
|
22,321
|
|
|
|
22,954
|
|
|
|
23,652
|
|
|
|
24,399
|
|
13
|
%
|
*Endpoints refer to communication modules in electric meters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In the course of preparing the condensed consolidated
financial statements for the quarter ended June 30, 2016, we
determined that the cash provided from operating activities was
understated and cash provided by investing activities was
overstated by $2.3 million in the condensed consolidated
statements of cash flows for the three months ended March 31,
2016, as included in the Company's First Quarter Form 10-Q. We
evaluated the materiality of the error, quantitatively and
qualitatively, and concluded it was not material to our condensed
consolidated financial statements for the three months ended March
31, 2016. Although we have concluded the error was not material,
the cash flows presented above for the three and six months ended
June 30, 2016, reflect that the cash flows from operating
activities and investing activities for the three months ended
March 31, 2016 were corrected for this error.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
(in thousands, except per share data and percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
YOY %
|
QUARTERLY RECONCILIATION OF RESULTS
|
|
|
|
2015
|
|
2015
|
|
2015
|
|
2016
|
|
2016
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
|
$
|
19,956
|
|
|
$
|
32,987
|
|
|
$
|
101,345
|
|
|
$
|
16,997
|
|
|
$
|
64,543
|
|
|
223
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
|
(8,027
|
)
|
|
|
5,192
|
|
|
|
(124,259
|
)
|
|
|
20,294
|
|
|
|
(50,106
|
)
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
|
|
14,488
|
|
|
|
(6,712
|
)
|
|
|
56,982
|
|
|
|
(8,668
|
)
|
|
|
16,992
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
260
|
|
|
|
260
|
|
|
|
259
|
|
|
|
169
|
|
|
|
195
|
|
|
|
Stock-based compensation
|
|
|
|
|
2,209
|
|
|
|
1,197
|
|
|
|
1,006
|
|
|
|
1,328
|
|
|
|
1,389
|
|
|
|
Acquisition-related charges
|
|
|
|
|
60
|
|
|
|
14
|
|
|
|
15
|
|
|
|
15
|
|
|
|
16
|
|
|
|
Gross profit on billings(1)
|
|
|
|
$
|
28,946
|
|
|
$
|
32,938
|
|
|
$
|
35,348
|
|
|
$
|
30,135
|
|
|
$
|
33,029
|
|
|
14
|
%
|
Gross margin % (as a % of net revenue)
|
|
|
|
|
26
|
%
|
|
|
47
|
%
|
|
|
51
|
%
|
|
|
35
|
%
|
|
|
53
|
%
|
|
|
Gross margin on billings(1)
|
|
|
|
|
42
|
%
|
|
|
44
|
%
|
|
|
47
|
%
|
|
|
44
|
%
|
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
$
|
36,495
|
|
|
$
|
33,381
|
|
|
$
|
35,600
|
|
|
$
|
35,920
|
|
|
$
|
37,794
|
|
|
4
|
%
|
Amortization of intangible assets
|
|
|
|
|
(162
|
)
|
|
|
(161
|
)
|
|
|
(163
|
)
|
|
|
(252
|
)
|
|
|
(180
|
)
|
|
|
Stock-based compensation
|
|
|
|
|
(6,452
|
)
|
|
|
(4,656
|
)
|
|
|
(3,936
|
)
|
|
|
(5,572
|
)
|
|
|
(5,652
|
)
|
|
|
Acquisition-related charges
|
|
|
|
|
(691
|
)
|
|
|
(545
|
)
|
|
|
(491
|
)
|
|
|
(501
|
)
|
|
|
(494
|
)
|
|
|
Restructuring
|
|
|
|
|
(1,078
|
)
|
|
|
(339
|
)
|
|
|
(60
|
)
|
|
|
(39
|
)
|
|
|
-
|
|
|
|
Legal settlements
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,595
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
Non-GAAP operating expenses
|
|
|
|
$
|
28,112
|
|
|
$
|
27,680
|
|
|
$
|
27,355
|
|
|
$
|
29,556
|
|
|
$
|
31,468
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
|
$
|
(16,539
|
)
|
|
$
|
(394
|
)
|
|
$
|
65,745
|
|
|
$
|
(18,923
|
)
|
|
$
|
26,749
|
|
|
262
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
|
(8,027
|
)
|
|
|
5,192
|
|
|
|
(124,259
|
)
|
|
|
20,294
|
|
|
|
(50,106
|
)
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
|
|
14,488
|
|
|
|
(6,712
|
)
|
|
|
56,982
|
|
|
|
(8,668
|
)
|
|
|
16,992
|
|
|
|
Amortization of intangible assets
|
|
|
|
|
422
|
|
|
|
421
|
|
|
|
422
|
|
|
|
421
|
|
|
|
375
|
|
|
|
Stock-based compensation
|
|
|
|
|
8,661
|
|
|
|
5,853
|
|
|
|
4,942
|
|
|
|
6,900
|
|
|
|
7,041
|
|
|
|
Acquisition-related charges
|
|
|
|
|
751
|
|
|
|
559
|
|
|
|
506
|
|
|
|
516
|
|
|
|
510
|
|
|
|
Restructuring
|
|
|
|
|
1,078
|
|
|
|
339
|
|
|
|
60
|
|
|
|
39
|
|
|
|
-
|
|
|
|
Legal settlements
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,595
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Non-GAAP operating income
|
|
|
|
$
|
834
|
|
|
$
|
5,258
|
|
|
$
|
7,993
|
|
|
$
|
579
|
|
|
$
|
1,561
|
|
|
87
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) provision
|
|
|
|
$
|
(290
|
)
|
|
$
|
129
|
|
|
$
|
3,708
|
|
|
$
|
32
|
|
|
$
|
961
|
|
|
431
|
%
|
Income tax benefit related to Detectent acquisition
|
|
|
|
|
124
|
|
|
|
114
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Non-GAAP income tax (benefit) provision
|
|
|
|
$
|
(166
|
)
|
|
$
|
243
|
|
|
$
|
3,708
|
|
|
$
|
32
|
|
|
$
|
961
|
|
|
679
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
|
$
|
(16,175
|
)
|
|
$
|
(622
|
)
|
|
$
|
61,878
|
|
|
$
|
(18,514
|
)
|
|
$
|
26,121
|
|
|
261
|
%
|
Change in deferred revenue, net of foreign currency translation
|
|
|
|
|
(8,027
|
)
|
|
|
5,192
|
|
|
|
(124,259
|
)
|
|
|
20,294
|
|
|
|
(50,106
|
)
|
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
|
|
14,488
|
|
|
|
(6,712
|
)
|
|
|
56,982
|
|
|
|
(8,668
|
)
|
|
|
16,992
|
|
|
|
Other (income) expense, net
|
|
|
|
|
(74
|
)
|
|
|
99
|
|
|
|
159
|
|
|
|
(441
|
)
|
|
|
(333
|
)
|
|
|
(Benefit) provision for income taxes
|
|
|
|
|
(290
|
)
|
|
|
129
|
|
|
|
3,708
|
|
|
|
32
|
|
|
|
961
|
|
|
|
Depreciation and amortization
|
|
|
|
|
1,953
|
|
|
|
1,990
|
|
|
|
1,930
|
|
|
|
2,132
|
|
|
|
2,104
|
|
|
|
Stock-based compensation
|
|
|
|
|
8,661
|
|
|
|
5,853
|
|
|
|
4,942
|
|
|
|
6,900
|
|
|
|
7,041
|
|
|
|
Acquisition-related charges
|
|
|
|
|
751
|
|
|
|
559
|
|
|
|
506
|
|
|
|
516
|
|
|
|
510
|
|
|
|
Restructuring
|
|
|
|
|
1,078
|
|
|
|
339
|
|
|
|
60
|
|
|
|
39
|
|
|
|
-
|
|
|
|
Legal settlements
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,595
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Adjusted EBITDA
|
|
|
|
$
|
2,365
|
|
|
$
|
6,827
|
|
|
$
|
9,501
|
|
|
$
|
2,290
|
|
|
$
|
3,290
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) We have revised the presentation of several of our non-GAAP
financial measures previously reported. See "Revised Presentation of
non-GAAP measures" section above.
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
|
(in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Deferred Cost
|
|
Stock-based
|
|
Amortization of
|
|
Acquisition-
|
|
Gross Profit on
|
|
Gross Margin
|
|
|
|
|
Gross Profit
|
|
Gross Margin
|
|
of Revenue (a)
|
|
Compensation
|
|
Intangible Assets
|
|
Related Costs
|
|
Billings (b)
|
|
on Billings (b)
|
Product
|
|
|
|
$
|
28,478
|
|
40.7
|
%
|
|
$
|
(6,812
|
)
|
|
$
|
415
|
|
$
|
195
|
|
$
|
-
|
|
$
|
22,276
|
|
48.3
|
%
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
|
15,670
|
|
63.8
|
%
|
|
|
(9,650
|
)
|
|
|
590
|
|
|
-
|
|
|
16
|
|
|
6,626
|
|
44.4
|
%
|
Professional services
|
|
|
|
|
20,395
|
|
74.3
|
%
|
|
|
(16,652
|
)
|
|
|
384
|
|
|
-
|
|
|
-
|
|
|
4,127
|
|
38.2
|
%
|
Total services
|
|
|
|
$
|
36,065
|
|
69.3
|
%
|
|
$
|
(26,302
|
)
|
|
$
|
974
|
|
$
|
-
|
|
$
|
16
|
|
$
|
10,753
|
|
41.8
|
%
|
Total gross profit
|
|
|
|
$
|
64,543
|
|
52.9
|
%
|
|
$
|
(33,114
|
)
|
|
$
|
1,389
|
|
$
|
195
|
|
$
|
16
|
|
$
|
33,029
|
|
46.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Deferred Cost
|
|
Stock-based
|
|
Amortization of
|
|
Acquisition-
|
|
Gross Profit on
|
|
Gross Margin on
|
|
|
|
|
Gross Profit
|
|
Gross Margin
|
|
of Revenue (a)
|
|
Compensation
|
|
Intangible Assets
|
|
Related Costs
|
|
Billings (b)
|
|
Billings (b)
|
Product
|
|
|
|
$
|
14,178
|
|
25.9
|
%
|
|
$
|
4,473
|
|
|
$
|
560
|
|
$
|
260
|
|
$
|
-
|
|
$
|
19,471
|
|
43.6
|
%
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
|
2,515
|
|
23.7
|
%
|
|
|
2,387
|
|
|
|
712
|
|
|
-
|
|
|
-
|
|
|
5,614
|
|
43.2
|
%
|
Professional services
|
|
|
|
|
3,263
|
|
27.5
|
%
|
|
|
(399
|
)
|
|
|
937
|
|
|
-
|
|
|
60
|
|
|
3,861
|
|
33.7
|
%
|
Total services
|
|
|
|
$
|
5,778
|
|
25.7
|
%
|
|
$
|
1,988
|
|
|
$
|
1,649
|
|
$
|
-
|
|
$
|
60
|
|
$
|
9,475
|
|
38.8
|
%
|
Total gross profit
|
|
|
|
$
|
19,956
|
|
25.9
|
%
|
|
$
|
6,461
|
|
|
$
|
2,209
|
|
$
|
260
|
|
$
|
60
|
|
$
|
28,946
|
|
41.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Deferred Cost
|
|
Stock-based
|
|
Amortization of
|
|
Acquisition-
|
|
Gross Profit on
|
|
Gross Margin on
|
|
|
|
|
Gross Profit
|
|
Gross Margin
|
|
of Revenue (a)
|
|
Compensation
|
|
Intangible Assets
|
|
Related Costs
|
|
Billings (b)
|
|
Billings (b)
|
Product
|
|
|
|
$
|
45,350
|
|
44.1
|
%
|
|
$
|
(2,597
|
)
|
|
$
|
767
|
|
$
|
364
|
|
$
|
-
|
|
$
|
43,884
|
|
47.8
|
%
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
|
18,106
|
|
50.8
|
%
|
|
|
(7,830
|
)
|
|
|
970
|
|
|
-
|
|
|
31
|
|
|
11,277
|
|
40.6
|
%
|
Professional services
|
|
|
|
|
18,084
|
|
56.2
|
%
|
|
|
(11,061
|
)
|
|
|
980
|
|
|
-
|
|
|
-
|
|
|
8,003
|
|
37.9
|
%
|
Total services
|
|
|
|
$
|
36,190
|
|
53.4
|
%
|
|
$
|
(18,891
|
)
|
|
$
|
1,950
|
|
$
|
-
|
|
$
|
31
|
|
$
|
19,280
|
|
39.4
|
%
|
Total gross profit
|
|
|
|
$
|
81,540
|
|
47.8
|
%
|
|
$
|
(21,488
|
)
|
|
$
|
2,717
|
|
$
|
364
|
|
$
|
31
|
|
$
|
63,164
|
|
44.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2015
|
|
|
|
|
|
|
|
|
Change in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and Deferred Cost
|
|
Stock-based
|
|
Amortization of
|
|
Acquisition-
|
|
Gross Profit on
|
|
Gross Margin on
|
|
|
|
|
Gross Profit
|
|
Gross Margin
|
|
of Revenue (a)
|
|
Compensation
|
|
Intangible Assets
|
|
Related Costs
|
|
Billings (b)
|
|
Billings (b)
|
Product
|
|
|
|
$
|
62,596
|
|
39.2
|
%
|
|
$
|
(27,045
|
)
|
|
$
|
788
|
|
$
|
522
|
|
$
|
-
|
|
$
|
36,861
|
|
43.0
|
%
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
|
|
7,596
|
|
32.2
|
%
|
|
|
1,968
|
|
|
|
1,313
|
|
|
-
|
|
|
-
|
|
|
10,877
|
|
42.6
|
%
|
Professional services
|
|
|
|
|
21,219
|
|
56.6
|
%
|
|
|
(16,487
|
)
|
|
|
1,831
|
|
|
-
|
|
|
71
|
|
|
6,634
|
|
31.6
|
%
|
Total services
|
|
|
|
$
|
28,815
|
|
47.2
|
%
|
|
$
|
(14,519
|
)
|
|
$
|
3,144
|
|
$
|
-
|
|
$
|
71
|
|
$
|
17,511
|
|
37.7
|
%
|
Total gross profit
|
|
|
|
$
|
91,411
|
|
41.4
|
%
|
|
$
|
(41,564
|
)
|
|
$
|
3,932
|
|
$
|
522
|
|
$
|
71
|
|
$
|
54,372
|
|
41.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
|
Amounts presented net of foreign currency translation.
|
(b)
|
|
|
We have revised the presentation of several of our non-GAAP
financial measures previously reported. See "Revised Presentation of
non-GAAP measures" section above.
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160804006400/en/
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