BEDFORD, MA, May 02, 2012 (MARKETWIRE via COMTEX) –Acme Packet, Inc. (NASDAQ: APKT), the leader in session delivery network solutions, today announced results for the first quarter of 2012. All earnings per share results are on a fully diluted basis.
Results for the First Quarter of 2012 Total revenue for the first quarter of 2012 was $70.8 million, compared to $74.0 million in the first quarter of 2011 and $83.0 million in the fourth quarter of 2011. Net income for the first quarter of 2012 was $2.4 million, or $0.03 per share, compared to $13.7 million, or $0.19 per share, in the first quarter of 2011 and $8.7 million, or $0.12 per share, in the fourth quarter of 2011. Net income on a non-GAAP(1) basis for the first quarter of 2012 was $12.2 million, or $0.17 per share, compared to $18.9 million, or $0.27 per share, in the first quarter of 2011, and $18.3 million, or $0.26 per share, in the fourth quarter of 2011.
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 1.877.777.1972 and using access code “APKT”. The conference call may be accessed outside of the United States by dialing +1.612.332.0932 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 243684 or by accessing the webcast replay on the Company’s investor relations website.
(1) A 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, video, 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 230 reseller partners worldwide. More than 1,675 customers in 108 countries have deployed over 18,000 Acme Packet systems, including 88 of the top 100 service providers and 41 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 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
March 31,
--------------------------
2012 2011
------------ ------------
Revenue:
Product $ 53,464 $ 59,742
Maintenance, support and service 17,366 14,225
------------ ------------
Total revenue 70,830 73,967
------------ ------------
Cost of revenue:
Product 9,978 9,945
Maintenance, support and service 3,958 3,006
------------ ------------
Total cost of revenue 13,936 12,951
------------ ------------
Gross profit 56,894 61,016
------------ ------------
Operating expenses:
Sales and marketing 31,002 23,703
Research and development 15,097 11,294
General and administrative 6,438 4,577
Merger and integration-related costs 37 180
------------ ------------
Total operating expenses 52,574 39,754
------------ ------------
Income from operations 4,320 21,262
Other income, net 94 102
Income before provision for income taxes 4,414 21,364
------------ ------------
Provision for income taxes 1,985 7,655
------------ ------------
Net income $ 2,429 $ 13,709
============ ============
Net income per share:
Basic $ 0.04 $ 0.21
Diluted $ 0.03 $ 0.19
Weighted average number of common shares used in
the calculation of net income per share:
Basic 67,953,550 65,076,303
Diluted 70,858,871 70,476,973
Acme Packet, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31, December 31,
2012 2011
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 128,151 $ 160,403
Short-term investments 247,713 191,672
Accounts receivable, net 60,568 59,739
Inventory 11,003 10,246
Deferred product costs 864 1,515
Deferred tax asset, net 4,809 4,809
Income taxes receivable 4,634 4,341
Other current assets 5,183 4,385
------------ ------------
Total current assets 462,925 437,110
Long-term investments 25,451 20,096
Property and equipment, net 27,530 26,252
Intangible assets, net 8,078 8,569
Goodwill 3,778 3,778
Deferred tax asset, net 18,371 18,371
Other assets 239 230
------------ ------------
Total assets $ 546,372 $ 514,406
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 7,125 $ 10,318
Accrued expenses and other current liabilities 13,238 12,715
Deferred revenue 34,822 22,261
------------ ------------
Total current liabilities 55,185 45,294
------------ ------------
Deferred revenue, net of current portion 2,304 2,049
------------ ------------
Deferred rent 4,495 4,533
------------ ------------
Stockholders' equity:
Common stock 75 74
Additional paid-in capital 383,191 363,769
Treasury stock, at cost (37,522) (37,522)
Accumulated other comprehensive income 7 1
Retained earnings 138,637 136,208
------------ ------------
Total stockholders' equity 484,388 462,530
------------ ------------
Total liabilities and stockholders' equity $ 546,372 $ 514,406
============ ============
Condensed Consolidated Statements of Cash Flow
(in thousands)
(unaudited)
Three Months Ended
March 31,
----------------------
2012 2011
---------- ----------
Cash provided by operating activities $ 26,695 $ 11,541
Cash used in investing activities (65,472) (4,273)
Cash provided by financing activities 6,525 19,987
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 statements of income 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 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, 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”, “net income on a non-GAAP basis”, “non-GAAP EPS” and net income per share on a non-GAAP basis” 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.
Reconciliation of GAAP to Non-GAAP Financial Measures for the Three Months Ended March 31, 2012, March 31, 2011 and December 31, 2011:
Acme Packet, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended March 31, 2012
(in thousands, except per share data)
(unaudited)
Stock-based
compensation
expense and Amortization Merger and
related of acquired integration
payroll intangible -related Non-
GAAP taxes assets costs GAAP(1)
-------- ------------ ------------ ----------- --------
Cost of revenue:
Product $ 9,978 $ (428) $ (434) $ - $ 9,116
Maintenance,
support and
service 3,958 (702) - - 3,256
Operating
expenses:
Sales and
marketing 31,002 (6,414) (57) - 24,531
Research and
development 15,097 (4,295) - - 10,802
General and
administrative 6,438 (2,077) - - 4,361
Merger and
integration-
related costs 37 - - (37) -
Provision for
income taxes 1,985 4,473 188 - 6,646
Net income $ 2,429 $ 9,443 $ 303 $ 37 $ 12,212
Net income per
share:
Basic $ 0.04 $ 0.14 $ 0.00 $ 0.00 $ 0.18
Diluted $ 0.03 $ 0.13 $ 0.00 $ 0.00 $ 0.17
Acme Packet, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended March 31, 2011
(in thousands, except per share data)
(unaudited)
Stock-based
compensation
expense and Amortization Merger and
related of acquired integration
payroll intangible -related Non-
GAAP taxes assets costs GAAP(1)
-------- ------------ ------------ ----------- --------
Cost of revenue:
Product $ 9,945 $ (262) $ (371) $ - $ 9,312
Maintenance,
support and
service 3,006 (451) - - 2,555
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) -
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
Acme Packet, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
Three Months Ended December 31, 2011
(in thousands, except per share data)
(unaudited)
Stock-based
compensation
expense and Amortization
related of acquired
payroll intangible
GAAP taxes assets Non-GAAP(1)
----------- ------------ ------------ -----------
Cost of revenue:
Product $ 12,155 $ (314) $ (385) $ 11,456
Maintenance, support
and service 3,118 (577) - 2,541
Operating expenses:
Sales and marketing 29,940 (4,857) (100) 24,983
Research and
development 14,221 (3,063) (11) 11,147
General and
administrative 6,073 (1,574) - 4,499
Provision for income
taxes 8,681 1,148 174 10,003
Net income $ 8,717 $ 9,237 $ 322 $ 18,276
Net income per share:
Basic $ 0.13 $ 0.14 $ 0.00 $ 0.27
Diluted $ 0.12 $ 0.13 $ 0.00 $ 0.26
Acme Packet, Inc.
Other Operational Data
(unaudited)
Three Months Ended
--------------------------------------
March 31, December 31, March 31,
2012 2011 2011
------------ ------------ ------------
Other operational data:
Depreciation and amortization (in
thousands) $ 2,958 $ 2,944 $ 2,358
Capital expenditures (in thousands) $ 3,745 $ 4,186 $ 4,644
Days sales outstanding 77 65 53
Total headcount 764 752 641
Quarterly inventory turnover -
annualized 3.76 4.41 5.79
Investor Relations Contact: Brian Norris Acme Packet +1.781.328.4790 Email Contact Media and Analyst Contact: Mike O'Malley Acme Packet +1.781.869.2975 Email Contact
SOURCE: Acme Packet
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