Telecom Ramblings

PR Archives:  LatestBy Company By Date


Press Release -- July 26th, 2012
Source: Acme Packet
Tags:

Acme Packet Reports Results for Second Quarter of 2012

BEDFORD, MA--(Marketwire -07/26/12)- Acme Packet, Inc. (APKT), the leader in session delivery network solutions, today announced results for the second quarter of 2012 and updated its business outlook for 2012. All earnings per share results are on a fully diluted basis.

Results for the Second Quarter of 2012
Total revenue for the second quarter of 2012 was $67.6 million, compared to $79.7 million in the second quarter of 2011 and $70.8 million in the first quarter of 2012. GAAP net loss for the second quarter of 2012 was $0.1 million, or ($0.00) per share, compared to GAAP net income of $14.0 million, or $0.20 per share, in the second quarter of 2011 and GAAP net income of $2.4 million, or $0.03 per share, in the first quarter of 2012. Net income on a non-GAAP(1) basis for the second quarter of 2012 was $9.5 million, or $0.13 per share, compared to $20.4 million, or $0.29 per share, in the second quarter of 2011, and $12.2 million, or $0.17 per share, in the first quarter of 2012.

Updated Business Outlook for 2012
The Company today updated its business outlook for 2012. 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
Estimate                                    Ending December 31, 2012
                                    ----------------------------------------
Total revenue (in millions)                         $270-$275
GAAP EPS                                         ($0.11)-($0.07)
Non-GAAP(1) EPS                                    $0.43-$0.47

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 1.800.230.1059 and using access code "APKT". The conference call may be accessed outside of the United States by dialing +1.612.234.9960 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 253634 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 (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 250 reseller partners worldwide. More than 1,775 customers in 109 countries have deployed over 19,000 Acme Packet systems, including 89 of the top 100 service providers and 45 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 Operations
              (in thousands, except share and per share data)
                                (unaudited)
                            Three Months Ended         Six Months Ended
                                 June 30,                  June 30,
                         ------------------------  ------------------------
                             2012         2011         2012         2011
                         -----------  -----------  -----------  -----------
Revenue:
  Product                $    49,556  $    64,688  $   103,020  $   124,430
  Maintenance, support
   and service                18,028       15,045       35,394       29,270
                         -----------  -----------  -----------  -----------
    Total revenue             67,584       79,733      138,414      153,700
                         -----------  -----------  -----------  -----------
Cost of revenue:
  Product                      9,785       11,367       19,763       21,312
  Maintenance, support
   and service                 3,675        2,525        7,633        5,531
                         -----------  -----------  -----------  -----------
    Total cost of
     revenue                  13,460       13,892       27,396       26,843
                         -----------  -----------  -----------  -----------
Gross profit                  54,124       65,841      111,018      126,857
                         -----------  -----------  -----------  -----------
Operating expenses:
  Sales and marketing         32,138       24,736       63,140       48,439
  Research and
   development                16,257       12,719       31,354       24,013
  General and
   administrative              5,849        5,788       12,287       10,365
  Merger and related
   costs                         576            -          613          180
                         -----------  -----------  -----------  -----------
  Total operating
   expenses                   54,820       43,243      107,394       82,997
                         -----------  -----------  -----------  -----------
(Loss) income from
 operations                     (696)      22,598        3,624       43,860
Other (expense) income,
 net                             (19)        (196)          75          (94)
                         -----------  -----------  -----------  -----------
(Loss) income before
 (benefit from)
 provision for income
 taxes                          (715)      22,402        3,699       43,766
(Benefit from) provision
 for income taxes               (588)       8,394        1,397       16,049
                         -----------  -----------  -----------  -----------
Net (loss) income        $      (127) $    14,008  $     2,302  $    27,717
                         ===========  ===========  ===========  ===========
Net (loss) income per
 share:
  Basic                  $     (0.00) $      0.21  $      0.03  $      0.42
  Diluted                $     (0.00) $      0.20  $      0.03  $      0.39
Weighted average number
 of common shares used
 in the calculation of
 net (loss) income per
 share:
  Basic                   68,507,111   66,141,163   68,230,330   65,623,359
  Diluted                 68,507,111   71,033,614   70,923,757   70,839,456

                             Acme Packet, Inc.
                   Condensed Consolidated Balance Sheets
                               (in thousands)
                                (unaudited)

                                                    June 30,   December 31,
                                                      2012         2011
                                                  -----------  ------------
                      Assets
Current assets:
  Cash and cash equivalents                       $    61,343  $    160,403
  Short-term investments                              305,366       191,672
  Accounts receivable, net                             49,792        59,739
  Inventory                                            12,004        10,246
  Deferred product costs                                  786         1,515
  Deferred tax asset, net                               4,809         4,809
  Income taxes receivable                               4,599         4,341
  Other current assets                                  5,575         4,385
                                                  -----------  ------------
    Total current assets                              444,274       437,110
Long-term investments                                  34,547        20,096
Property and equipment, net                            31,469        26,252
Intangible assets, net                                 21,575         8,569
Goodwill                                               15,262         3,778
Deferred tax asset, net                                18,371        18,371
Other assets                                              241           230
                                                  -----------  ------------
  Total assets                                    $   565,739  $    514,406
                                                  ===========  ============
       Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable                                $     8,956  $     10,318
  Accrued expenses and other current liabilities       10,548        12,715
  Deferred revenue                                     29,636        22,261
                                                  -----------  ------------
    Total current liabilities                          49,140        45,294
                                                  -----------  ------------
Deferred revenue, net of current portion                2,283         2,049
                                                  -----------  ------------
Deferred rent                                           6,597         4,533
                                                  -----------  ------------
Deferred tax liability                                  4,733             -
                                                  -----------  ------------
Stockholders' equity:
  Common stock                                             75            74
  Additional paid-in capital                          401,931       363,769
  Treasury stock, at cost                             (37,522)      (37,522)
  Accumulated other comprehensive income                   (8)            1
  Retained earnings                                   138,510       136,208
                                                  -----------  ------------
    Total stockholders' equity                        502,986       462,530
                                                  -----------  ------------
  Total liabilities and stockholders' equity      $   565,739  $    514,406
                                                  ===========  ============

            Condensed Consolidated Statements of Cash Flow Data
                               (in thousands)
                                (unaudited)
                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------
Cash provided by operating
 activities                      $  23,624  $   8,664  $  50,319  $  20,205
Cash used in investing
 activities                        (94,869)   (20,729)  (160,341)   (25,002)
Cash provided by financing
 activities                          4,437     13,712     10,962     33,699

                              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 operations 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 (loss) income", "net (loss) income on a non-GAAP basis", "non-GAAP EPS", and "net (loss) 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 (loss) income", "EPS" or "net (loss) 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 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 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 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 (loss) income", "net (loss) income on a non-GAAP basis", "non-GAAP EPS" and "net (loss) 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 (loss) income", "non-GAAP EPS" and "non-GAAP net (loss) 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 June 30, 2012, June 30, 2011 and March 31, 2012 and for the Six Months Ended June 30, 2012 and June 30, 2011:

 
                              Acme Packet, Inc.
            Reconciliation of GAAP to Non-GAAP Financial Measures
                      Three Months Ended June 30, 2012
                    (in thousands, except per share data)
                                 (unaudited)
                          Stock-based
                          compensation
                            expense    Amortization
                              and           of
                            related      acquired     Merger
                            payroll     intangible  and related
                 GAAP        taxes        assets       costs     Non-GAAP(1)
             -----------  -----------  -----------  -----------  -----------
Cost of
 revenue:
  Product    $     9,785  $      (442) $      (583) $         -  $     8,760
  Maintenance,
   support
   and
   service         3,675         (717)           -            -        2,958
Operating
 expenses:
  Sales and
   marketing      32,138       (6,570)        (238)           -       25,330
  Research
   and
   development    16,257       (4,354)         (34)           -       11,869
  General
   and
   administrative  5,849       (1,502)           -            -        4,347
  Merger and
   related
   costs             576            -            -         (576)           -
(Benefit
 from)
 provision
 for income
 taxes              (588)       5,072          319            -        4,803
Net (loss)
 income             (127)       8,513          536          576        9,498
Net (loss)
 income per
 share:
 Basic       $     (0.00) $      0.12  $      0.01  $      0.01  $      0.14
 Diluted     $     (0.00) $      0.12  $      0.01  $      0.01  $      0.13
Weighted
 average
 number of
 shares used
 in the
 calculation
 of net
 (loss)
 income per
 share:
 Basic        68,507,111   68,507,111   68,507,111   68,507,111   68,507,111
 Diluted      68,507,111   70,927,009   70,927,009   70,927,009   70,927,009

                              Acme Packet, Inc.
            Reconciliation of GAAP to Non-GAAP Financial Measures
                      Three Months Ended June 30, 2011
                    (in thousands, except per share data)
                                 (unaudited)
                                          Stock-based
                                         compensation
                                          expense and  Amortization
                                            related     of acquired
                                            payroll     intangible     Non-
                                   GAAP      taxes        assets     GAAP(1)
                                 ------- ------------  ------------  -------
Cost of revenue:
    Product                      $11,367 $       (327) $       (536) $10,504
    Maintenance, support and
     service                       2,525         (499)            -    2,026
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
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

                              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
                                  related     of acquired     and
                                  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 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
                       Six Months Ended June 30, 2012
                    (in thousands, except per share data)
                                 (unaudited)
                                Stock-based
                               compensation
                                expense and  Amortization   Merger
                                  related     of acquired     and
                                  payroll     intangible   related     Non-
                         GAAP      taxes        assets       costs   GAAP(1)
                       ------- ------------  ------------  --------  -------
Cost of revenue:
    Product            $19,763 $       (870) $     (1,017) $      -  $17,876
    Maintenance,
     support and
     service             7,633       (1,419)            -         -    6,214
Operating expenses:
    Sales and
     marketing          63,140      (12,984)         (295)        -   49,861
    Research and
     development        31,354       (8,649)          (34)        -   22,671
    General and
     administrative     12,287       (3,579)            -         -    8,708
    Merger and related
     costs                 613            -             -      (613)       -
Provision for income
 taxes                   1,397        9,545           507         -   11,449
Net income               2,302       17,956           839       613   21,710
Net income per share:
  Basic                $  0.03 $       0.26  $       0.01  $   0.01  $  0.32
  Diluted              $  0.03 $       0.25  $       0.01  $   0.01  $  0.31

                              Acme Packet, Inc.
            Reconciliation of GAAP to Non-GAAP Financial Measures
                       Six Months Ended June 30, 2011
                    (in thousands, except per share data)
                                 (unaudited)
                                Stock-based
                               compensation
                                expense and  Amortization   Merger
                                  related     of acquired     and
                                  payroll     intangible   related     Non-
                         GAAP      taxes        assets       costs   GAAP(1)
                       ------- ------------  ------------  --------  -------
Cost of revenue:
    Product            $21,312 $       (589) $       (907) $      -  $19,816
    Maintenance,
     support and
     service             5,531         (950)            -         -    4,581
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 related
     costs                 180            -             -      (180)       -
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

Reconciliation of Expected Non-GAAP Net Income and Non-GAAP Net Income Per Share for the Year Ending December 31, 2012 (unaudited):

 
                                                   Twelve Months Ending
                                                     December 31, 2012
                                                        (unaudited)
                                                 (in thousands, except per
                                                        share data)
                                               ----------------------------
                                                    Low            High
                                               -------------  -------------
Revenue                                        $     270,000  $     275,000
Reconciliation of non-GAAP net income:
GAAP net loss                                  $      (8,013) $      (4,713)
Adjustments:
  Stock-based compensation expense and related
   payroll taxes, net of taxes                        35,600         35,600
  Amortization of acquired intangible assets,
   net of taxes                                        2,300          2,300
  Merger and related costs                               613            613
                                               -------------  -------------
Non-GAAP net income                            $      30,500  $      33,800
                                               =============  =============
Reconciliation of diluted non-GAAP net income
 per share:
GAAP net loss per share                        $       (0.11) $       (0.07)
Adjustments:
  Stock-based compensation expense and related
   payroll taxes, net of taxes                          0.50           0.50
  Amortization of acquired intangible assets,
   net of taxes                                         0.03           0.03
  Merger and related costs                              0.01           0.01
                                               -------------  -------------
Non-GAAP net income per share                  $        0.43  $        0.47
                                               =============  =============

                              Acme Packet, Inc.
                           Other Operational Data
                                 (unaudited)
                                                  Three Months Ended
                                         -----------------------------------
                                           June 30,   March 31,    June 30,
                                             2012        2012        2011
                                         ----------- ----------- -----------
Other operational data:
Depreciation and amortization (in
 thousands)                              $     3,591 $     2,958 $     1,894
Capital expenditures (in thousands)            6,576       3,745       2,598
Days sales outstanding                            66          77          60
Total headcount                                  831         764         710
Quarterly inventory turnover -
 annualized                                     3.40        3.76        5.42

PR Archives: Latest, By Company, By Date