– Second Quarter Revenues of $79.7 million, up 49% Year-Over-Year and 8% Sequentially –
– Second Quarter GAAP EPS of $0.20, up 43% Year-Over-Year –
– Second Quarter Non-GAAP1 EPS of $0.29, up 53% Year-Over-Year –
– Company Raises 2011 Revenue and Non-GAAP EPS1 Estimates –
BEDFORD, Mass., Jul 21, 2011 (BUSINESS WIRE) —
Acme Packet, Inc. (NASDAQ: APKT), the leader in session delivery network solutions, today announced record results for the quarter ended June 30, 2011 and raised its business outlook for 2011. All earnings per share results are on a fully diluted basis unless otherwise noted.
Results for the Second Quarter of 2011
Total revenue in the second quarter of 2011 was $79.7 million, compared to $53.3 million in the second quarter of 2010 and $74.0 million in the first quarter of 2011. Net income in the second quarter of 2011 was $14.0 million, or $0.20 per share, compared to $9.7 million, or $0.14 per share, in the second quarter of 2010 and $13.7 million, or $0.19 per share, in the first quarter of 2011. Net income on a non-GAAP1 basis in the second quarter of 2011 was $20.4 million, or $0.29 per share, compared to $12.5 million, or $0.19 per share, in the second quarter of 2010, and $18.9 million, or $0.27 per share, in the first quarter of 2011.
Company Raises Business Outlook for 2011
The Company today raised its business outlook for 2011. The Company’s outlook is based on the current indications for its business, which may change at any time. A reconciliation of the Company’s expected GAAP to non-GAAP business outlook, and a statement as to the use of non-GAAP financial measures, is included at the end of this press release.
| Business Outlook for Year Ending December 31, 2011 | |||
| Estimate | Issued April 26, 2011 | Issued July 21, 2011 | |
| Total revenue (in millions) | $310-$315 | $315-$320 | |
| Total revenue growth rate | Approximately 35% | Approximately 36%-38% | |
| Non-GAAP1 EPS | $1.10-$1.15 | $1.14-$1.18 | |
| Total non-GAAP1 EPS growth rate | Approximately 40% | Approximately 43%-48% | |
| Diluted share count (in millions) | 71.5 | 71.5 | |
Company to Host Live Conference Call and Webcast
The Company’s management team plans to host a live conference call and webcast at 4:30 p.m. eastern time today to discuss the financial results as well as management’s outlook for the business. The conference call may be accessed in the United States by dialing 1.800.230.1093 and using access code “APKT”. The conference call may be accessed outside of the United States by dialing +1.612.288.0337 and using access code “APKT”. The conference call will be simultaneously webcast on the Company’s investor relations website, which can be accessed at www.ir.acmepacket.com. A replay of the conference call will be available approximately two hours after the call by dialing 1.800.475.6701 or +1.320.365.3844 and using access code 209417 or by accessing the webcast replay on the Company’s investor relations website.
__________________
1A reconciliation of GAAP to non-GAAP results, and a statement on the use of non-GAAP financial measures, is included at the end of this press release.
About Acme Packet
Acme Packet (NASDAQ: APKT), the leader in session delivery network solutions, enables the trusted, first-class delivery of next-generation voice, data and unified communications services and applications across IP networks. Our Net-Net product family fulfills demanding security, service assurance and regulatory requirements in service provider, enterprise and contact center networks. Based in Bedford, Massachusetts, Acme Packet designs and manufactures its products in the USA, selling them through over 150 reseller partners worldwide. More than 1,440 customers in 105 countries have deployed over 13,000 Acme Packet systems, including 90 of the top 100 service providers and 34 of the Fortune 100. For more information visit www.acmepacket.com.
Acme Packet, Inc. Safe Harbor Statement
Statements contained herein that are not historical fact (including those in the section “Company Raises Business Outlook for 2011”) may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may relate to, among other things, expected financial and operating results, expected growth rates, future stock-based compensation and amortization expenses, future business prospects and market conditions. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated. These include, but are not limited to: the amount of stock-based compensation awarded; the applicable Company stock price used to determine stock-based compensation; the exercise pattern of employee stock options; difficulties expanding the Company’s customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; poor product sales; long sales cycles; difficulties developing new products; difficulties in relationships with vendors and partners; higher risks in international operations; difficulties managing rapid growth; difficulties managing the Company’s financial performance; the ability to hire and retain employees and appropriately staff operations; the Company’s cash needs; the impact of new accounting pronouncements and increased competition. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in the Company’s recent filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.
| Acme Packet, Inc.
Condensed Consolidated Statements of Income (in thousands, except share and per share data) (unaudited) |
||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product | $ | 64,688 | $ | 42,031 | $ | 124,430 | $ | 84,124 | ||||||||
| Maintenance, support and service | 15,045 | 11,305 | 29,270 | 20,262 | ||||||||||||
| Total revenue | 79,733 | 53,336 | 153,700 | 104,386 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Product | 11,367 | 7,434 | 21,312 | 14,983 | ||||||||||||
| Maintenance, support and service | 2,525 | 2,140 | 5,531 | 4,408 | ||||||||||||
| Total cost of revenue | 13,892 | 9,574 | 26,843 | 19,391 | ||||||||||||
| Gross profit | 65,841 | 43,762 | 126,857 | 84,995 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 24,736 | 16,623 | 48,439 | 33,050 | ||||||||||||
| Research and development | 12,719 | 8,646 | 24,013 | 17,339 | ||||||||||||
| General and administrative | 5,788 | 3,595 | 10,365 | 6,879 | ||||||||||||
| Merger and integration-related costs | – | – | 180 | – | ||||||||||||
| Total operating expenses | 43,243 | 28,864 | 82,997 | 57,268 | ||||||||||||
| Income from operations | 22,598 | 14,898 | 43,860 | 27,727 | ||||||||||||
| Other (expense) income, net | (196 | ) | 176 | (94 | ) | 165 | ||||||||||
| Income before provision for income taxes | 22,402 | 15,074 | 43,766 | 27,892 | ||||||||||||
| Provision for income taxes | 8,394 | 5,345 | 16,049 | 9,830 | ||||||||||||
| Net income | $ | 14,008 | $ | 9,729 | $ | 27,717 | $ | 18,062 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.21 | $ | 0.16 | $ | 0.42 | $ | 0.30 | ||||||||
| Diluted | $ | 0.20 | $ | 0.14 | $ | 0.39 | $ | 0.27 | ||||||||
| Weighted average number of common shares used in the calculation of net income per share: |
||||||||||||||||
| Basic | 66,141,163 | 61,488,059 | 65,623,359 | 60,659,321 | ||||||||||||
| Diluted | 71,033,614 | 67,184,884 | 70,839,456 | 66,118,943 | ||||||||||||
| Margin: | ||||||||||||||||
| Gross margin | 82.6 | % | 82.0 | % | 82.5 | % | 81.4 | % | ||||||||
| Operating margin | 28.3 | % | 27.9 | % | 28.5 | % | 26.6 | % | ||||||||
| Net margin | 17.6 | % | 18.2 | % | 18.0 | % | 17.3 | % | ||||||||
| Acme Packet, Inc.
Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
||||||||
| June 30, 2011 |
December 31, 2010 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 120,571 | $ | 91,669 | ||||
| Short-term investments | 192,855 | 179,024 | ||||||
| Accounts receivable, net | 53,520 | 34,797 | ||||||
| Inventory | 9,721 | 6,662 | ||||||
| Deferred product costs | 1,048 | 3,572 | ||||||
| Deferred tax asset | 3,814 | 3,814 | ||||||
| Income taxes receivable | 14,131 | 9,979 | ||||||
| Other current assets | 4,760 | 3,231 | ||||||
| Total current assets | 400,420 | 332,748 | ||||||
| Long-term investments | 5,000 | 5,030 | ||||||
| Property and equipment, net | 21,282 | 17,156 | ||||||
| Acquired intangible assets, net | 9,592 | 9,468 | ||||||
| Goodwill | 3,269 | – | ||||||
| Deferred tax asset, net | 14,802 | 14,802 | ||||||
| Other assets | 320 | 940 | ||||||
| Total assets | $ | 454,685 | $ | 380,144 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 8,372 | $ | 7,161 | ||||
| Accrued expenses and other current liabilities | 9,591 | 14,629 | ||||||
| Deferred revenue | 32,897 | 31,998 | ||||||
| Total current liabilities | 50,860 | 53,788 | ||||||
| Deferred revenue | 1,999 | 1,546 | ||||||
| Deferred rent | 4,584 | 4,265 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 73 | 71 | ||||||
| Additional paid-in capital | 315,094 | 266,114 | ||||||
| Treasury stock, at cost | (37,522 | ) | (37,522 | ) | ||||
| Other comprehensive income | 32 | 34 | ||||||
| Retained earnings | 119,565 | 91,848 | ||||||
| Total stockholders’ equity | 397,242 | 320,545 | ||||||
| Total liabilities and stockholders’ equity | $ | 454,685 | $ | 380,144 | ||||
| Condensed Consolidated Statements of Cash Flow
(in thousands) (unaudited) |
||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||
| Cash provided by operating activities | $ | 8,664 | $ | 15,061 | $ | 20,205 | $ | 23,034 | ||||
| Cash used in investing activities | 20,729 | 22,541 | 25,002 | 49,182 | ||||||||
| Cash provided by financing activities | 13,712 | 17,443 | 33,699 | 26,210 | ||||||||
Acme Packet, Inc.
Statement on Use of Non-GAAP Financial Measures and
Reconciliation of Non-GAAP Net Income and Non-GAAP Net Income Per Share
(in thousands, except share and per share data)
(unaudited)
Statement on Use of Non-GAAP Financial Measures:
To supplement its condensed consolidated financial statements presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company discloses certain non-GAAP financial measures, including “non-GAAP net income”, “net income on a non-GAAP basis”, “non-GAAP net income per share”, “non-GAAP EPS” and “net income per share on a non-GAAP basis”. These non-GAAP financial measures are not presented in accordance with GAAP and are not meant to be a substitute for the most directly comparable GAAP measures of “net income”, “EPS” or “net income per share”. Rather, these non-GAAP financial measures should be evaluated in conjunction with its most directly comparable GAAP financial measure and the Company’s financial statements as a whole.
Management uses these supplemental non-GAAP financial measures to evaluate performance period over period, to analyze the underlying trends in the Company’s business, to assess its performance relative to its competitors, and to establish operational goals and forecasts that are used in allocating resources. Management uses these non-GAAP financial measures because they exclude stock-based compensation expense which is a non-cash charge and related payroll taxes, as well as amortization of acquired intangible assets and merger and integration-related costs associated with the Company’s acquisition activities, all of which are non-operational costs and expenses. By excluding stock-based compensation expense and related payroll taxes, amortization of acquired intangible assets, and merger and integration-related costs, management can compare the Company’s operations to prior periods and to the operations of other companies in its industry who may have materially different unusual, non-operational charges. Management does not consider any of stock-based compensation expense and related payroll taxes, amortization of acquired intangible assets, and merger and integration-related costs to be part of the Company’s operating activities or meaningful in evaluating the Company’s past financial performance or future prospects. Management believes that excluding these items is useful to investors because it is more representative of ongoing costs and therefore more comparable to historical operations.
Because management uses them, management believes that the disclosure of these non-GAAP financial measures to investors provides greater transparency and useful information to help the investor better understand the Company’s operating performance and to evaluate the methodology used by management to evaluate and measure such performance. Notwithstanding their utility to investors in understanding operational trends, these non-GAAP measures should not be considered measures of the Company’s liquidity. In addition, the Company cautions that its definition of “non-GAAP net income”, “non-GAAP EPS” and “non-GAAP net income per share” may differ from similar measures used by other companies and may differ from period to period. Also, in future periods, management may make other adjustments for expenses and gains that it does not consider reflective of core operating performance in a particular period thereby modifying its definition of “non-GAAP net income”, “non-GAAP EPS” and “non-GAAP net income per share” by excluding these other or additional expenses and gains.
| Acme Packet, Inc.
Non-GAAP Condensed Consolidated Statements of Income (in thousands, except share and per share data) (unaudited) |
||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Revenue: | ||||||||||||||||
| Product | $ | 64,688 | $ | 42,031 | $ | 124,430 | $ | 84,124 | ||||||||
| Maintenance, support and service | 15,045 | 11,305 | 29,270 | 20,262 | ||||||||||||
| Total revenue | 79,733 | 53,336 | 153,700 | 104,386 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Product | 10,504 | 6,864 | 19,816 | 13,861 | ||||||||||||
| Maintenance, support and service | 2,026 | 1,897 | 4,581 | 3,933 | ||||||||||||
| Total cost of revenue | 12,530 | 8,761 | 24,397 | 17,794 | ||||||||||||
| Gross profit | 67,203 | 44,575 | 129,303 | 86,592 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 20,155 | 14,750 | 40,233 | 29,550 | ||||||||||||
| Research and development | 10,056 | 7,416 | 19,096 | 14,923 | ||||||||||||
| General and administrative | 4,485 | 3,072 | 8,082 | 5,930 | ||||||||||||
| Total operating expenses | 34,696 | 25,238 | 67,411 | 50,403 | ||||||||||||
| Income from operations | 32,507 | 19,337 | 61,892 | 36,189 | ||||||||||||
| Other (expense) income, net | (196 | ) | 176 | (94 | ) | 165 | ||||||||||
| Income before provision for income taxes | 32,311 | 19,513 | 61,798 | 36,354 | ||||||||||||
| Provision for income taxes | 11,881 | 7,043 | 22,429 | 13,171 | ||||||||||||
| Net income | $ | 20,430 | $ | 12,470 | $ | 39,369 | $ | 23,183 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.31 | $ | 0.20 | $ | 0.60 | $ | 0.38 | ||||||||
| Diluted | $ | 0.29 | $ | 0.19 | $ | 0.56 | $ | 0.35 | ||||||||
| Weighted average number of common shares used in the calculation of net income per share: |
||||||||||||||||
| Basic | 66,141,163 | 61,488,059 | 65,623,359 | 60,659,321 | ||||||||||||
| Diluted | 71,033,614 | 67,184,884 | 70,839,456 | 66,118,943 | ||||||||||||
| Margin: | ||||||||||||||||
| Gross margin | 84.3 | % | 83.6 | % | 84.1 | % | 83.0 | % | ||||||||
| Operating margin | 40.8 | % | 36.3 | % | 40.3 | % | 34.7 | % | ||||||||
| Net margin | 25.6 | % | 23.4 | % | 25.6 | % | 22.2 | % | ||||||||
Reconciliation of Non-GAAP Net Income and Non-GAAP Net Income Per Share for the Three Months Ended June 30, 2011, March 31, 2011, and June 30, 2010 and the Six Months Ended June 30, 2011 and June 30, 2010 (unaudited):
| Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation Three Months Ended June 30, 2011 (in thousands, except share and per share data) (unaudited) |
||||||||||||||||||
| GAAP | Stock-based compensation expense and related payroll taxes |
Amortization of acquired intangible assets |
Non-GAAP1 | |||||||||||||||
| Revenue: | ||||||||||||||||||
| Product | $ | 64,688 | $ | – | $ | – | $ | 64,688 | ||||||||||
| Maintenance, support and service | 15,045 | – | – | 15,045 | ||||||||||||||
| Total revenue | 79,733 | – | – | 79,733 | ||||||||||||||
| Cost of revenue: | ||||||||||||||||||
| Product | 11,367 | (327 | ) | (536 | ) | 10,504 | ||||||||||||
| Maintenance, support and service | 2,525 | (499 | ) | – | 2,026 | |||||||||||||
| Total cost of revenue | 13,892 | (826 | ) | (536 | ) | 12,530 | ||||||||||||
| Gross profit | 65,841 | 826 | 536 | 67,203 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Sales and marketing | 24,736 | (4,441 | ) | (140 | ) | 20,155 | ||||||||||||
| Research and development | 12,719 | (2,652 | ) | (11 | ) | 10,056 | ||||||||||||
| General and administrative | 5,788 | (1,303 | ) | – | 4,485 | |||||||||||||
| Total operating expenses | 43,243 | (8,396 | ) | (151 | ) | 34,696 | ||||||||||||
| Income from operations | 22,598 | 9,222 | 687 | 32,507 | ||||||||||||||
| Other (expense), net | (196 | ) | – | – | (196 | ) | ||||||||||||
| Income before provision for income taxes | 22,402 | 9,222 | 687 | 32,311 | ||||||||||||||
| Provision for income taxes | 8,394 | 3,241 | 246 | 11,881 | ||||||||||||||
| Net income | $ | 14,008 | $ | 5,981 | $ | 441 | $ | 20,430 | ||||||||||
| Net income per share: | ||||||||||||||||||
| Basic | $ | 0.21 | $ | 0.09 | $ | 0.01 | $ | 0.31 | ||||||||||
| Diluted | $ | 0.20 | $ | 0.08 | $ | 0.01 | $ | 0.29 | ||||||||||
| Weighted average number of common shares used in the calculation of net income per share: |
||||||||||||||||||
| Basic | 66,141,163 | 66,141,163 | 66,141,163 | 66,141,163 | ||||||||||||||
| Diluted | 71,033,614 | 71,033,614 | 71,033,614 | 71,033,614 | ||||||||||||||
| Margin: | ||||||||||||||||||
| Gross margin | 82.6 | % | 84.3 | % | ||||||||||||||
| Operating margin | 28.3 | % | 40.8 | % | ||||||||||||||
| Net margin | 17.6 | % | 25.6 | % | ||||||||||||||
| Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation Three Months Ended June 30, 2010 (in thousands, except share and per share data) (unaudited) |
|||||||||||||||||
| GAAP | Stock-based compensation expense and related payroll taxes |
Amortization of acquired intangible assets |
Non-GAAP1 | ||||||||||||||
| Revenue: | |||||||||||||||||
| Product | $ | 42,031 | $ | – | $ | – | $ | 42,031 | |||||||||
| Maintenance, support and service | 11,305 | – | – | 11,305 | |||||||||||||
| Total revenue | 53,336 | – | – | 53,336 | |||||||||||||
| Cost of revenue: | |||||||||||||||||
| Product | 7,434 | (191 | ) | (379 | ) | 6,864 | |||||||||||
| Maintenance, support and service | 2,140 | (243 | ) | – | 1,897 | ||||||||||||
| Total cost of revenue | 9,574 | (434 | ) | (379 | ) | 8,761 | |||||||||||
| Gross profit | 43,762 | 434 | 379 | 44,575 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Sales and marketing | 16,623 | (1,828 | ) | (45 | ) | 14,750 | |||||||||||
| Research and development | 8,646 | (1,219 | ) | (11 | ) | 7,416 | |||||||||||
| General and administrative | 3,595 | (523 | ) | – | 3,072 | ||||||||||||
| Total operating expenses | 28,864 | (3,570 | ) | (56 | ) | 25,238 | |||||||||||
| Income from operations | 14,898 | 4,004 | 435 | 19,337 | |||||||||||||
| Other income, net | 176 | – | – | 176 | |||||||||||||
| Income before provision for income taxes | 15,074 | 4,004 | 435 | 19,513 | |||||||||||||
| Provision for income taxes | 5,345 | 1,544 | 154 | 7,043 | |||||||||||||
| Net income | $ | 9,729 | $ | 2,460 | $ | 281 | $ | 12,470 | |||||||||
| Net income per share: | |||||||||||||||||
| Basic | $ | 0.16 | $ | 0.04 | $ | 0.00 | $ | 0.20 | |||||||||
| Diluted | $ | 0.14 | $ | 0.04 | $ | 0.00 | $ | 0.19 | |||||||||
| Weighted average number of common shares used in the calculation of net income per share: |
|||||||||||||||||
| Basic | 61,488,059 | 61,488,059 | 61,488,059 | 61,488,059 | |||||||||||||
| Diluted | 67,184,884 | 67,184,884 | 67,184,884 | 67,184,884 | |||||||||||||
| Margin: | |||||||||||||||||
| Gross margin | 82.0 | % | 83.6 | % | |||||||||||||
| Operating margin | 27.9 | % | 36.3 | % | |||||||||||||
| Net margin | 18.2 | % | 23.4 | % | |||||||||||||
| Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation Six Months Ended June 30, 2011 (in thousands, except share and per share data) (unaudited) |
|||||||||||||||||||||
| GAAP | Stock-based compensation expense and related payroll taxes |
Amortization of acquired intangible assets |
Merger and integration- related costs |
Non-GAAP1 | |||||||||||||||||
| Revenue: | |||||||||||||||||||||
| Product | $ | 124,430 | $ | – | $ | – | $ | – | $ | 124,430 | |||||||||||
| Maintenance, support and service | 29,270 | – | – | – | 29,270 | ||||||||||||||||
| Total revenue | 153,700 | – | – | – | 153,700 | ||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||
| Product | 21,312 | (589 | ) | (907 | ) | – | 19,816 | ||||||||||||||
| Maintenance, support and service | 5,531 | (950 | ) | – | – | 4,581 | |||||||||||||||
| Total cost of revenue | 26,843 | (1,539 | ) | (907 | ) | – | 24,397 | ||||||||||||||
| Gross profit | 126,857 | 1,539 | 907 | – | 129,303 | ||||||||||||||||
| Operating expenses: | |||||||||||||||||||||
| Sales and marketing | 48,439 | (8,020 | ) | (186 | ) | – | 40,233 | ||||||||||||||
| Research and development | 24,013 | (4,894 | ) | (23 | ) | – | 19,096 | ||||||||||||||
| General and administrative | 10,365 | (2,283 | ) | – | – | 8,082 | |||||||||||||||
| Merger and integration-related costs | 180 | – | – | (180 | ) | – | |||||||||||||||
| Total operating expenses | 82,997 | (15,197 | ) | (209 | ) | (180 | ) | 67,411 | |||||||||||||
| Income from operations | 43,860 | 16,736 | 1,116 | 180 | 61,892 | ||||||||||||||||
| Other (expense), net | (94 | ) | – | – | – | (94 | ) | ||||||||||||||
| Income before provision for income taxes | 43,766 | 16,736 | 1,116 | 180 | 61,798 | ||||||||||||||||
| Provision for income taxes | 16,049 | 5,978 | 402 | – | 22,429 | ||||||||||||||||
| Net income | $ | 27,717 | $ | 10,758 | $ | 714 | $ | 180 | $ | 39,369 | |||||||||||
| Net income per share: | |||||||||||||||||||||
| Basic | $ | 0.42 | $ | 0.16 | $ | 0.01 | $ | 0.00 | $ | 0.60 | |||||||||||
| Diluted | $ | 0.39 | $ | 0.15 | $ | 0.01 | $ | 0.00 | $ | 0.56 | |||||||||||
| Weighted average number of common shares used in the calculation of net income per share: |
|||||||||||||||||||||
| Basic | 65,623,359 | 65,623,359 | 65,623,359 | 65,623,359 | 65,623,359 | ||||||||||||||||
| Diluted | 70,839,456 | 70,839,456 | 70,839,456 | 70,839,456 | 70,839,456 | ||||||||||||||||
| Margin: | |||||||||||||||||||||
| Gross margin | 82.5 | % | 84.1 | % | |||||||||||||||||
| Operating margin | 28.5 | % | 40.3 | % | |||||||||||||||||
| Net margin | 18.0 | % | 25.6 | % | |||||||||||||||||
| Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation Six Months Ended June 30, 2010 (in thousands, except share and per share data) (unaudited) |
||||||||||||||||||
| GAAP | Stock-based compensation expense and related payroll taxes |
Amortization of acquired intangible assets |
Non-GAAP1 | |||||||||||||||
| Revenue: | ||||||||||||||||||
| Product | $ | 84,124 | $ | – | $ | – | $ | 84,124 | ||||||||||
| Maintenance, support and service | 20,262 | – | – | 20,262 | ||||||||||||||
| Total revenue | 104,386 | – | – | 104,386 | ||||||||||||||
| Cost of revenue: | ||||||||||||||||||
| Product | 14,983 | (364 | ) | (758 | ) | 13,861 | ||||||||||||
| Maintenance, support and service | 4,408 | (475 | ) | – | 3,933 | |||||||||||||
| Total cost of revenue | 19,391 | (839 | ) | (758 | ) | 17,794 | ||||||||||||
| Gross profit | 84,995 | 839 | 758 | 86,592 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Sales and marketing | 33,050 | (3,410 | ) | (90 | ) | 29,550 | ||||||||||||
| Research and development | 17,339 | (2,394 | ) | (22 | ) | 14,923 | ||||||||||||
| General and administrative | 6,879 | (949 | ) | – | 5,930 | |||||||||||||
| Total operating expenses | 57,268 | (6,753 | ) | (112 | ) | 50,403 | ||||||||||||
| Income from operations | 27,727 | 7,592 | 870 | 36,189 | ||||||||||||||
| Other income, net | 165 | – | – | 165 | ||||||||||||||
| Income before provision for income taxes | 27,892 | 7,592 | 870 | 36,354 | ||||||||||||||
| Provision for income taxes | 9,830 | 3,035 | 306 | 13,171 | ||||||||||||||
| Net income | $ | 18,062 | $ | 4,557 | $ | 564 | $ | 23,183 | ||||||||||
| Net income per share: | ||||||||||||||||||
| Basic | $ | 0.30 | $ | 0.08 | $ | 0.01 | $ | 0.38 | ||||||||||
| Diluted | $ | 0.27 | $ | 0.07 | $ | 0.01 | $ | 0.35 | ||||||||||
| Weighted average number of common shares used in the calculation of net income per share: |
||||||||||||||||||
| Basic | 60,659,321 | 60,659,321 | 60,659,321 | 60,659,321 | ||||||||||||||
| Diluted | 66,118,943 | 66,118,943 | 66,118,943 | 66,118,943 | ||||||||||||||
| Margin: | ||||||||||||||||||
| Gross margin | 81.4 | % | 83.0 | % | ||||||||||||||
| Operating margin | 26.6 | % | 34.7 | % | ||||||||||||||
| Net margin | 17.3 | % | 22.2 | % | ||||||||||||||
| Acme Packet, Inc.
GAAP to Non-GAAP Reconciliation Three Months Ended March 31, 2011 (in thousands, except share and per share data) (unaudited) |
||||||||||||||||||||||
| GAAP | Stock-based compensation expense and related payroll taxes |
Amortization of acquired intangible assets |
Merger and integration- related costs |
Non-GAAP1 | ||||||||||||||||||
| Revenue: | ||||||||||||||||||||||
| Product | $ | 59,742 | $ | – | $ | – | $ | – | $ | 59,742 | ||||||||||||
| Maintenance, support and service | 14,225 | – | – | – | 14,225 | |||||||||||||||||
| Total revenue | 73,967 | – | – | – | 73,967 | |||||||||||||||||
| Cost of revenue: | ||||||||||||||||||||||
| Product | 9,945 | (262 | ) | (371 | ) | – | 9,312 | |||||||||||||||
| Maintenance, support and service | 3,006 | (451 | ) | – | – | 2,555 | ||||||||||||||||
| Total cost of revenue | 12,951 | (713 | ) | (371 | ) | – | 11,867 | |||||||||||||||
| Gross profit | 61,016 | 713 | 371 | – | 62,100 | |||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||
| Sales and marketing | 23,703 | (3,579 | ) | (46 | ) | – | 20,078 | |||||||||||||||
| Research and development | 11,294 | (2,242 | ) | (12 | ) | – | 9,040 | |||||||||||||||
| General and administrative | 4,577 | (980 | ) | – | – | 3,597 | ||||||||||||||||
| Merger and integration-related costs | 180 | – | – | (180 | ) | – | ||||||||||||||||
| Total operating expenses | 39,754 | (6,801 | ) | (58 | ) | (180 | ) | 32,715 | ||||||||||||||
| Income from operations | 21,262 | 7,514 | 429 | 180 | 29,385 | |||||||||||||||||
| Other income, net | 102 | – | – | – | 102 | |||||||||||||||||
| Income before provision for income taxes | 21,364 | 7,514 | 429 | 180 | 29,487 | |||||||||||||||||
| Provision for income taxes | 7,655 | 2,737 | 156 | – | 10,548 | |||||||||||||||||
| Net income | $ | 13,709 | $ | 4,777 | $ | 273 | $ | 180 | $ | 18,939 | ||||||||||||
| Net income per share: | ||||||||||||||||||||||
| Basic | $ | 0.21 | $ | 0.07 | $ | 0.00 | $ | 0.00 | $ | 0.29 | ||||||||||||
| Diluted | $ | 0.19 | $ | 0.07 | $ | 0.00 | $ | 0.00 | $ | 0.27 | ||||||||||||
| Weighted average number of common shares used in the calculation of net income per share: |
||||||||||||||||||||||
| Basic | 65,076,303 | 65,076,303 | 65,076,303 | 65,076,303 | 65,076,303 | |||||||||||||||||
| Diluted | 70,476,973 | 70,476,973 | 70,476,973 | 70,476,973 | 70,476,973 | |||||||||||||||||
| Margin: | ||||||||||||||||||||||
| Gross margin | 82.5 | % | 84.0 | % | ||||||||||||||||||
| Operating margin | 28.7 | % | 39.7 | % | ||||||||||||||||||
| Net margin | 18.5 | % | 25.6 | % | ||||||||||||||||||
Reconciliation of Expected Non-GAAP Net Income and Non-GAAP Net Income Per Share for the Year Ending December 31, 2011(unaudited):
| Twelve Months Ending December 31, 2011 (unaudited) (in thousands, except per share data) |
||||||||
| Low | High | |||||||
| Revenue | $ | 315,000 | $ | 320,000 | ||||
| Reconciliation of non-GAAP net income: | ||||||||
| Net income | $ | 55,800 | $ | 58,700 | ||||
| Adjustments: | ||||||||
| Stock-based compensation expense and related payroll taxes, net of taxes | 24,100 | 24,100 | ||||||
| Amortization of acquired intangible assets, net of taxes | 1,200 | 1,200 | ||||||
| Merger and integration-related costs | 180 | 180 | ||||||
| Non-GAAP net income | $ | 81,200 | $ | 84,100 | ||||
| Reconciliation of diluted non-GAAP net income per share: | ||||||||
| Net income per share | $ | 0.78 | $ | 0.82 | ||||
| Adjustments: | ||||||||
| Stock-based compensation expense and related payroll taxes, net of taxes | 0.34 | 0.34 | ||||||
| Amortization of acquired intangible assets, net of taxes | 0.02 | 0.02 | ||||||
| Merger and integration-related costs | 0.00 | 0.00 | ||||||
| Non-GAAP net income per share | $ | 1.14 | $ | 1.18 | ||||
| Acme Packet, Inc.
Other Operational Data (unaudited) |
|||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, 2011 |
March 31, 2011 |
June 30, 2010 |
June 30, 2011 |
June 30, 2010 |
|||||||||||||||
| Other operational data: | |||||||||||||||||||
| Depreciation and amortization (in thousands) | $ | 1,894 | $ | 2,358 | $ | 1,908 | $ | 4,252 | $ | 3,761 | |||||||||
| Capital expenditures (in thousands) | 2,598 | 4,644 | 3,300 | 7,242 | 6,067 | ||||||||||||||
| Days sales outstanding | 60 | 53 | 46 | – | – | ||||||||||||||
| Total headcount | 710 | 641 | 503 | – | – | ||||||||||||||
| Quarterly inventory turnover – annualized | 5.42 | 5.79 | 5.39 | – | – | ||||||||||||||
SOURCE: Acme Packet
Investor Relations: Acme Packet Brian Norris, 781-328-4790 bnorris@acmepacket.com or Media and Analyst Contact: CHEN PR Chris Carleton, 781-672-3115 ccarleton@chenpr.com
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