UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 1, 2012
BLACKBAUD, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
| 000-50600 | 11-2617163 | |
| (Commission File Number) | (IRS Employer ID Number) |
2000 Daniel Island Drive, Charleston, South Carolina 29492
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (843) 216-6200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| q | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| q | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| q | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| q | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On November 1, 2012, Blackbaud, Inc. issued a press release reporting unaudited financial results for the quarter ended September 30, 2012. A copy of this press release is attached hereto as Exhibit 99.1.
The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits |
| Exhibit No. |
Description | |
| 99.1 | Press release dated November 1, 2012 reporting financial results for the quarter ended September 30, 2012. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BLACKBAUD, INC. | ||||
| Date: November 1, 2012 | /s/ Anthony W. Boor | |||
| Anthony W. Boor, | ||||
| Senior Vice President and Chief Financial Officer | ||||
Exhibit 99.1
Blackbaud, Inc. Announces Third Quarter 2012 Results
Announces Fourth Quarter 2012 Dividend
CHARLESTON, S.C. – November 1, 2012 – Blackbaud, Inc. (Nasdaq: BLKB), the leading provider of software and related services designed specifically for nonprofit organizations, today announced financial results for its third quarter ended September 30, 2012.
“Blackbaud delivered third quarter non-GAAP profitability that exceeded the high-end of our guidance, despite facing continued macroeconomic headwinds and transition-related factors in our enterprise business unit,” stated Marc Chardon, Chief Executive Officer of Blackbaud.
“Our integration of Convio progressed well during the third quarter. We finalized the integrated product roadmap and communicated our “go forward” online fundraising and CRM offerings to our global sales organization and customer base. We are moving forward as a single organization with the best-of-both-worlds online and offline solutions for nonprofit organizations of all sizes and across verticals,” added Marc Chardon.
Tony Boor, Chief Financial Officer of Blackbaud, said “We made excellent progress identifying and executing against synergies while bringing together Blackbaud and Convio during the third quarter. As a result we are tracking ahead of our original target of realizing $9-10 million in annualized cost savings by the end of 2012. As we navigate through the present economic uncertainty, we will continue to focus on protecting our bottom line and cash flow.”
Third Quarter 2012 GAAP Financial Results
Blackbaud reported total revenue of $122.5 million for the third quarter of 2012, an increase of 28% compared to $95.4 million for the third quarter of 2011. Income from operations and net income were $6.2 million and $2.8 million, respectively, compared with $16.0 million and $10.2 million, respectively, for the third quarter of 2011. Diluted earnings per share were $0.06 for the third quarter of 2012, compared with $0.23 in the same period last year.
Third Quarter 2012 Non-GAAP Financial Results
Blackbaud reported total non-GAAP revenue of $123.8 million, which includes $1.3 million of the deferred revenue write down associated with the Convio acquisition. Non-GAAP income from operations, which also excludes stock-based compensation expense, amortization of intangibles arising from business combinations, and acquisition and integration related expenses, was $20.7 million for the third quarter of 2012, compared to $21.5 million in the same period last year. Non-GAAP net income was $11.7 million, or $0.26 per diluted share for the third quarter of 2012, compared to $13.0 million, or $0.30 per diluted share in the same period last year.
A reconciliation between GAAP and non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Balance Sheet and Cash Flow
The Company ended the third quarter with $25.6 million in cash, compared to $21.2 million at the end of the second quarter.
The Company generated $28.7 million in cash flow from operations during the third quarter, returned $5.4 million to stockholders by way of dividend, reduced debt by $14.6 million and invested $3.9 million in capital expenditures. The Company ended the third quarter with $245.0 million of debt.
Dividend and Share Repurchase Program
Blackbaud announced today that its Board of Directors has approved a third quarter 2012 dividend of $0.12 per share payable on December 14, 2012, to stockholders of record on November 28, 2012. Additionally, as of September 30, 2012, $50.0 million remained available under the Company’s share repurchase program.
Conference Call Details
Blackbaud will host a conference call today, November 1, 2012, at 8:00 a.m. (Eastern Time) to discuss the Company’s financial results, operations and related matters. To access this call, dial 877-941-2321 (domestic) or 480-629-9666 (international). A replay of this conference call will be available through November 8, 2012, at 877-870-5176 (domestic) or 858-384-5517 (international). The replay passcode is 4573758. A live webcast of this conference call will be available on the “Investor Relations” page of the Company’s website at www.blackbaud.com/investorrelations, and a replay will be archived on the website as well.
About Blackbaud
Serving the nonprofit and education sectors for 30 years, Blackbaud (NASDAQ: BLKB) combines technology and expertise to help organizations achieve their missions. Blackbaud works with more than 27,000 nonprofit customers in over 60 countries that support higher education, healthcare, human services, arts and culture, faith, the environment, independent K-12 education, animal welfare and other charitable causes. The company offers a full spectrum of cloud-based and on-premise software solutions and related services for organizations of all sizes including: fundraising software, online fundraising software, event fundraising software, eMarketing, social media, advocacy, constituent relationship management (CRM), analytics, financial management and vertical-specific solutions for ticketing, school management, and more. Using Blackbaud software, nonprofits raise more than $100 billion each year. Recognized as a top company by Forbes, InformationWeek and Software Magazine, and honored by Best Places to Work, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada, Mexico, the Netherlands and the United Kingdom. For more information, visit www.blackbaud.com.
Forward-looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding: market acceptance of Blackbaud’s acquisition of Convio and the resulting unparalleled product offering position; and Blackbaud ability to achieve its synergy and non-GAAP operating margin targets and the timing of the benefits. These statements involve a number of risks and uncertainties, including; Blackbaud’s ability to leverage product offerings to improve operational performance; Blackbaud’s cost savings targets and progress towards achieving such targets; and, Blackbaud’s commitment to improve profitability and related profitability targets. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies and other risks associated with acquisitions; general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our leverage, dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from Blackbaud’s investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.
Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP revenue, non-GAAP income from operations, non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin. Blackbaud uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Blackbaud’s ongoing operational performance. Blackbaud believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in Blackbaud’s industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial results discussed above exclude: a write-down of Convio deferred revenue; stock-based compensation expense; costs associated with amortization of intangibles arising from business combinations; acquisition and integration related expense; a write-off of prepaid proprietary software licenses; a charge associated with impairment of cost method investment; and, a gain in connection with the sale of assets. We use these measures and believe them useful to investors because they provide additional insight in comparing results from period to period.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. As previously mentioned, a reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Investor Contact:
Brian Denyeau
ICR
brian.denyeau@icrinc.com
646-277-1251
or
Tim Dolan
ICR
timothy.dolan@icrinc.com
617-956-6727
Media Contact:
Melanie Mathos
Blackbaud, Inc.
melanie.mathos@Blackbaud.com
843-216-6200 x3307
SOURCE: Blackbaud, Inc.
Blackbaud, Inc.
Consolidated balance sheets
(Unaudited)
| (in thousands, except share amounts) |
September 30, 2012 |
December 31, 2011 |
||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 25,582 | $ | 52,520 | ||||
| Donor restricted cash |
25,993 | 40,205 | ||||||
| Accounts receivable, net of allowance of $4,663 and $3,913 at September 30, 2012 and December 31, 2011, respectively |
83,351 | 62,656 | ||||||
| Prepaid expenses and other current assets |
37,549 | 31,016 | ||||||
| Deferred tax asset, current portion |
3,673 | 1,551 | ||||||
|
|
|
|
|
|||||
| Total current assets |
176,148 | 187,948 | ||||||
| Property and equipment, net |
42,858 | 34,397 | ||||||
| Deferred tax asset |
521 | 29,376 | ||||||
| Goodwill |
263,172 | 90,122 | ||||||
| Intangible assets, net |
173,736 | 44,660 | ||||||
| Other assets |
9,213 | 6,087 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 665,648 | $ | 392,590 | ||||
|
|
|
|
|
|||||
| Liabilities and stockholders’ equity |
||||||||
| Current liabilities: |
||||||||
| Trade accounts payable |
$ | 10,115 | $ | 13,464 | ||||
| Accrued expenses and other current liabilities |
39,668 | 32,707 | ||||||
| Donations payable |
25,993 | 40,205 | ||||||
| Debt, current portion |
10,000 | — | ||||||
| Deferred revenue, current portion |
177,218 | 153,665 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
262,994 | 240,041 | ||||||
| Long-term debt, net of current portion |
235,000 | — | ||||||
| Deferred tax liability |
5,052 | — | ||||||
| Deferred revenue, net of current portion |
10,425 | 9,772 | ||||||
| Other liabilities |
4,518 | 2,775 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
517,989 | 252,588 | ||||||
|
|
|
|
|
|||||
| Commitments and contingencies |
||||||||
| Stockholders’ equity: |
||||||||
| Preferred stock; 20,000,000 shares authorized, none outstanding |
— | — | ||||||
| Common stock, $0.001 par value; 180,000,000 shares authorized, 54,243,438 and 53,959,532 shares issued at September 30, 2012 and December 31, 2011, respectively |
54 | 54 | ||||||
| Additional paid-in capital |
198,825 | 175,401 | ||||||
| Treasury stock, at cost; 9,089,110 and 9,019,824 shares at September 30, 2012 and December 31, 2011, respectively |
(168,239 | ) | (166,226 | ) | ||||
| Accumulated other comprehensive loss |
(2,043 | ) | (1,148 | ) | ||||
| Retained earnings |
119,062 | 131,921 | ||||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
147,659 | 140,002 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 665,648 | $ | 392,590 | ||||
|
|
|
|
|
|||||
Blackbaud, Inc.
Consolidated statements of comprehensive income
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| (in thousands, except share and per share amounts) |
2012 | 2011 | 2012 | 2011 | ||||||||||||
| Revenue |
||||||||||||||||
| License fees |
$ | 4,465 | $ | 4,952 | $ | 16,154 | $ | 14,600 | ||||||||
| Subscriptions |
47,414 | 26,091 | 113,399 | 75,893 | ||||||||||||
| Services |
34,463 | 29,605 | 90,211 | 82,916 | ||||||||||||
| Maintenance |
34,499 | 32,898 | 101,945 | 97,341 | ||||||||||||
| Other revenue |
1,631 | 1,867 | 5,659 | 5,073 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenue |
122,472 | 95,413 | 327,368 | 275,823 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Cost of revenue |
||||||||||||||||
| Cost of license fees |
728 | 828 | 2,162 | 2,610 | ||||||||||||
| Cost of subscriptions |
19,616 | 10,625 | 49,151 | 30,260 | ||||||||||||
| Cost of services |
26,438 | 20,009 | 71,779 | 59,190 | ||||||||||||
| Cost of maintenance |
6,789 | 6,521 | 18,944 | 18,807 | ||||||||||||
| Cost of other revenue |
1,557 | 1,708 | 4,672 | 4,253 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total cost of revenue |
55,128 | 39,691 | 146,708 | 115,120 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Gross profit |
67,344 | 55,722 | 180,660 | 160,703 | ||||||||||||
|
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|
|
|
|
|
|
|||||||||
| Operating expenses |
||||||||||||||||
| Sales and marketing |
26,279 | 18,745 | 70,879 | 57,081 | ||||||||||||
| Research and development |
19,205 | 11,719 | 47,365 | 35,212 | ||||||||||||
| General and administrative |
14,985 | 8,975 | 51,239 | 27,353 | ||||||||||||
| Impairment of cost method investment |
— | — | 200 | — | ||||||||||||
| Amortization |
690 | 249 | 1,417 | 728 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
61,159 | 39,688 | 171,100 | 120,374 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from operations |
6,185 | 16,034 | 9,560 | 40,329 | ||||||||||||
| Interest income |
38 | 55 | 118 | 133 | ||||||||||||
| Interest expense |
(1,976 | ) | (59 | ) | (3,629 | ) | (143 | ) | ||||||||
| Other income (expense), net |
382 | (107 | ) | (66 | ) | 178 | ||||||||||
|
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|
|
|
|
|
|||||||||
| Income before provision for income taxes |
4,629 | 15,923 | 5,983 | 40,497 | ||||||||||||
| Income tax provision |
1,804 | 5,709 | 2,670 | 13,628 | ||||||||||||
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|
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|
|
|
|||||||||
| Net income |
$ | 2,825 | $ | 10,214 | $ | 3,313 | $ | 26,869 | ||||||||
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|
|||||||||
| Earnings per share |
||||||||||||||||
| Basic |
$ | 0.06 | $ | 0.23 | $ | 0.08 | $ | 0.62 | ||||||||
| Diluted |
$ | 0.06 | $ | 0.23 | $ | 0.07 | $ | 0.61 | ||||||||
| Common shares and equivalents outstanding |
||||||||||||||||
| Basic weighted average shares |
44,172,836 | 43,548,494 | 44,077,911 | 43,449,958 | ||||||||||||
| Diluted weighted average shares |
44,718,101 | 44,147,911 | 44,650,028 | 44,045,438 | ||||||||||||
| Dividends per share |
$ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.36 | ||||||||
| Other comprehensive loss |
||||||||||||||||
| Foreign currency translation adjustment |
(123 | ) | (273 | ) | (12 | ) | (104 | ) | ||||||||
| Unrealized loss on derivative instruments, net of tax |
(319 | ) | — | (883 | ) | — | ||||||||||
|
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|
|
|
|
|
|
|||||||||
| Comprehensive income |
$ | 2,383 | $ | 9,941 | $ | 2,418 | $ | 26,765 | ||||||||
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|
|||||||||
Blackbaud, Inc.
Consolidated statements of cash flows
(Unaudited)
| Nine months ended September 30, | ||||||||
| (in thousands) |
2012 | 2011 | ||||||
| Cash flows from operating activities |
||||||||
| Net income |
$ | 3,313 | $ | 26,869 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
21,433 | 12,376 | ||||||
| Provision for doubtful accounts and sales returns |
4,212 | 3,708 | ||||||
| Stock-based compensation expense |
14,455 | 10,913 | ||||||
| Excess tax benefits from stock-based compensation |
(81 | ) | (532 | ) | ||||
| Deferred taxes |
2,670 | 6,511 | ||||||
| Impairment of cost method investment |
200 | — | ||||||
| Gain on sale of assets |
— | (549 | ) | |||||
| Other non-cash adjustments |
444 | (156 | ) | |||||
| Changes in operating assets and liabilities, net of acquisition of businesses: |
||||||||
| Accounts receivable |
(11,965 | ) | (5,818 | ) | ||||
| Prepaid expenses and other assets |
(5,609 | ) | (992 | ) | ||||
| Trade accounts payable |
(1,313 | ) | 901 | |||||
| Accrued expenses and other liabilities |
(3,618 | ) | 799 | |||||
| Donor restricted cash |
14,273 | (7,598 | ) | |||||
| Donations payable |
(14,273 | ) | 7,598 | |||||
| Deferred revenue |
15,528 | 14,593 | ||||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
39,669 | 68,623 | ||||||
|
|
|
|
|
|||||
| Cash flows from investing activities |
||||||||
| Purchase of property and equipment |
(15,427 | ) | (12,997 | ) | ||||
| Purchase of net assets of acquired companies, net of cash acquired |
(280,687 | ) | (16,475 | ) | ||||
| Capitalized software development costs |
(572 | ) | (1,012 | ) | ||||
| Proceeds from sale of assets |
— | 874 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(296,686 | ) | (29,610 | ) | ||||
|
|
|
|
|
|||||
| Cash flows from financing activities |
||||||||
| Proceeds from issuance of debt |
315,000 | — | ||||||
| Payments on debt |
(70,000 | ) | — | |||||
| Payments of deferred financing costs |
(2,440 | ) | (767 | ) | ||||
| Proceeds from exercise of stock options |
3,105 | 1,973 | ||||||
| Excess tax benefits from stock-based compensation |
81 | 532 | ||||||
| Dividend payments to stockholders |
(16,248 | ) | (16,035 | ) | ||||
| Payments on capital lease obligations |
— | (35 | ) | |||||
|
|
|
|
|
|||||
| Net cash provided by (used in) financing activities |
229,498 | (14,332 | ) | |||||
|
|
|
|
|
|||||
| Effect of exchange rate on cash and cash equivalents |
581 | (656 | ) | |||||
|
|
|
|
|
|||||
| Net increase (decrease) in cash and cash equivalents |
(26,938 | ) | 24,025 | |||||
| Cash and cash equivalents, beginning of period |
52,520 | 28,004 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents, end of period |
$ | 25,582 | $ | 52,029 | ||||
|
|
|
|
|
|||||
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP financial measures
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| (in thousands, except per share amounts) |
2012 | 2011 | 2012 | 2011 | ||||||||||||
| GAAP revenue |
$ | 122,472 | $ | 95,413 | $ | 327,368 | $ | 275,823 | ||||||||
| Non-GAAP adjustments: |
||||||||||||||||
| Add back: Convio deferred revenue writedown |
1,352 | — | 4,819 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Non-GAAP adjustments |
1,352 | — | 4,819 | — | ||||||||||||
| Non-GAAP revenue |
$ | 123,824 | $ | 95,413 | $ | 332,187 | $ | 275,823 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| GAAP gross profit |
$ | 67,344 | $ | 55,722 | $ | 180,660 | $ | 160,703 | ||||||||
| Non-GAAP adjustments: |
||||||||||||||||
| Add: Convio deferred revenue writedown |
1,352 | — | 4,819 | — | ||||||||||||
| Add: Stock-based compensation expense |
1,263 | 764 | 2,946 | 2,375 | ||||||||||||
| Add: Amortization of intangibles from business combinations |
4,866 | 1,614 | 10,212 | 4,873 | ||||||||||||
| Add: Acquisition integration costs |
595 | — | 595 | — | ||||||||||||
| Add: Write-off of prepaid proprietary software licenses |
— | — | 350 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Non-GAAP adjustments |
8,076 | 2,378 | 18,922 | 7,248 | ||||||||||||
| Non-GAAP gross profit |
$ | 75,420 | $ | 58,100 | $ | 199,582 | $ | 167,951 | ||||||||
|
|
|
|
|
|
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|
|
|||||||||
| Non-GAAP gross margin |
61 | % | 61 | % | 60 | % | 61 | % | ||||||||
|
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|
|
|
|
|
|
|
|||||||||
| GAAP income from operations |
$ | 6,185 | $ | 16,034 | $ | 9,560 | $ | 40,329 | ||||||||
| Non-GAAP adjustments: |
||||||||||||||||
| Add: Convio deferred revenue writedown |
1,352 | — | 4,819 | — | ||||||||||||
| Add: Stock-based compensation expense |
4,831 | 3,587 | 14,455 | 10,913 | ||||||||||||
| Add: Amortization of intangibles from business combinations |
5,556 | 1,863 | 11,629 | 5,601 | ||||||||||||
| Add: Acquisition integration and restructuring costs |
2,766 | — | 5,795 | — | ||||||||||||
| Add: Acquisition-related expenses |
— | — | 6,427 | 1,054 | ||||||||||||
| Add: Write-off of prepaid proprietary software licenses |
— | — | 350 | — | ||||||||||||
| Add: Impairment of cost method investment |
— | — | 200 | — | ||||||||||||
| Less: Gain on sale of assets |
— | — | — | (549 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Non-GAAP adjustments |
14,505 | 5,450 | 43,675 | 17,019 | ||||||||||||
| Non-GAAP income from operations |
$ | 20,690 | $ | 21,484 | $ | 53,235 | $ | 57,348 | ||||||||
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|
|||||||||
| Non-GAAP operating margin |
17 | % | 23 | % | 16 | % | 21 | % | ||||||||
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|
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| GAAP net income |
$ | 2,825 | $ | 10,214 | $ | 3,313 | $ | 26,869 | ||||||||
| Non-GAAP adjustments: |
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| Add: Total Non-GAAP adjustments affecting income from operations |
14,505 | 5,450 | 43,675 | 17,019 | ||||||||||||
| Less: Tax impact related to Non-GAAP adjustments |
(5,659 | ) | (2,625 | ) | (16,697 | ) | (8,803 | ) | ||||||||
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| Non-GAAP net income |
$ | 11,671 | $ | 13,039 | $ | 30,291 | $ | 35,085 | ||||||||
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| Shares used in computing Non-GAAP diluted earnings per share |
44,718 | 44,148 | 44,650 | 44,045 | ||||||||||||
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| Non-GAAP diluted earnings per share |
$ | 0.26 | $ | 0.30 | $ | 0.68 | $ | 0.80 | ||||||||
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| Detail of Non-GAAP adjustments: |
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| Stock-based compensation expense: |
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| Cost of revenue |
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| Cost of subscriptions |
$ | 308 | $ | 80 | $ | 734 | $ | 407 | ||||||||
| Cost of services |
854 | 491 | 1,911 | 1,395 | ||||||||||||
| Cost of maintenance |
101 | 193 | 301 | 573 | ||||||||||||
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| Subtotal |
1,263 | 764 | 2,946 | 2,375 | ||||||||||||
| Operating expenses |
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| Sales and marketing |
714 | 305 | 1,734 | 934 | ||||||||||||
| Research and development |
980 | 759 | 2,478 | 2,273 | ||||||||||||
| General and administrative |
1,874 | 1,759 | 7,297 | 5,331 | ||||||||||||
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| Subtotal |
3,568 | 2,823 | 11,509 | 8,538 | ||||||||||||
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| Total stock-based compensation expense |
$ | 4,831 | $ | 3,587 | $ | 14,455 | $ | 10,913 | ||||||||
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| Amortization of intangibles from business combinations |
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| Cost of revenue |
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| Cost of license fees |
$ | 119 | $ | 158 | $ | 366 | $ | 479 | ||||||||
| Cost of subscriptions |
4,044 | 823 | 7,732 | 2,440 | ||||||||||||
| Cost of services |
571 | 394 | 1,450 | 1,172 | ||||||||||||
| Cost of maintenance |
114 | 221 | 608 | 726 | ||||||||||||
| Cost of other revenue |
18 | 18 | 56 | 56 | ||||||||||||
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| Subtotal |
4,866 | 1,614 | 10,212 | 4,873 | ||||||||||||
| Operating expenses |
690 | 249 | 1,417 | 728 | ||||||||||||
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| Total amortization of intangibles from business combinations |
$ | 5,556 | $ | 1,863 | $ | 11,629 | $ | 5,601 | ||||||||
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