Acme Packet Reports Results for Fourth Quarter of 2012

Tools

 

February 04, 2013 08:05 ET

Acme Packet Reports Results for Fourth Quarter of 2012

BEDFORD, MA--(Marketwire - Feb 4, 2013) - Acme Packet, Inc. (NASDAQ: APKT), the leader in session delivery network solutions, today announced results for the fourth quarter of 2012.

Results for the Fourth Quarter of 2012
Total revenue for the fourth quarter of 2012 was $70.7 million, compared to $83.0 million in the fourth quarter of 2011 and $65.3 million in the third quarter of 2012. GAAP net loss for the fourth quarter of 2012 was $2.0 million, or $(0.03) per share, compared to GAAP net income of $8.7 million, or $0.12 per share, in the fourth quarter of 2011 and GAAP net loss of $5.5 million, or $(0.08) per share, in the third quarter of 2012. Net income on a non-GAAPbasis for the fourth quarter of 2012 was $6.5 million, or $0.09 per share, compared to $18.3 million, or $0.26 per share, in the fourth quarter of 2011, and $4.7 million, or $0.07 per share, in the third quarter of 2012. All earnings per share results, referenced above, are on a fully diluted basis.

Quarterly Conference Call Cancelled

As a result of the earlier announcement, Oracle to Buy Acme Packet, Acme Packet is cancelling its financial results conference call previously scheduled for today.

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, 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 primarily in the USA, selling them through over 330 reseller partners worldwide. More than 1,925 customers in 109 countries have deployed over 21,000 Acme Packet systems, including 89 of the top 100 service providers and 51 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

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2012

 

 

2011

 

 

2012

 

 

2011

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

51,307

 

 

$

64,276

 

 

$

201,098

 

 

$

241,783

 

 

Maintenance, support and service

 

 

19,395

 

 

 

18,720

 

 

 

73,339

 

 

 

65,534

 

 

 

Total revenue

 

 

70,702

 

 

 

82,996

 

 

 

274,437

 

 

 

307,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

10,145

 

 

 

12,155

 

 

 

39,492

 

 

 

42,245

 

 

Maintenance, support and service

 

 

3,464

 

 

 

3,118

 

 

 

15,358

 

 

 

11,691

 

 

 

Total cost of revenue

 

 

13,609

 

 

 

15,273

 

 

 

54,850

 

 

 

53,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

57,093

 

 

 

67,723

 

 

 

219,587

 

 

 

253,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

38,406

 

 

 

29,940

 

 

 

136,636

 

 

 

105,580

 

 

Research and development

 

 

16,528

 

 

 

14,221

 

 

 

64,780

 

 

 

51,483

 

 

General and administrative

 

 

5,211

 

 

 

6,073

 

 

 

23,652

 

 

 

21,844

 

 

Merger related costs

 

 

-

 

 

 

-

 

 

 

643

 

 

 

300

 

 

 

Total operating expenses

 

 

60,145

 

 

 

50,234

 

 

 

225,711

 

 

 

179,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

 

(3,052

)

 

 

17,489

 

 

 

(6,124

)

 

 

74,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense, net

 

 

(159

)

 

 

(91

)

 

 

(32

)

 

 

(238

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(3,211

)

 

 

17,398

 

 

 

(6,156

)

 

 

73,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

 

(1,182

)

 

 

8,681

 

 

 

(914

)

 

 

29,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(2,029

)

 

$

8,717

 

 

$

(5,242

)

 

$

44,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

$

0.13

 

 

$

(0.08

)

 

$

0.67

 

 

Diluted

 

$

(0.03

)

 

$

0.12

 

 

$

(0.08

)

 

$

0.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares used in the calculation of net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

67,627,896

 

 

 

67,314,606

 

 

 

68,084,305

 

 

 

66,346,008

 

 

Diluted

 

 

67,627,896

 

 

 

70,679,690

 

 

 

68,084,305

 

 

 

70,902,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acme Packet, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

December 31,
2012

 

 

December 31,
2011

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,381

 

 

$

160,403

 

 

Short-term investments

 

 

302,865

 

 

 

191,672

 

 

Accounts receivable, net

 

 

58,610

 

 

 

59,739

 

 

Inventory, net

 

 

10,539

 

 

 

10,246

 

 

Deferred product costs

 

 

1,006

 

 

 

1,515

 

 

Deferred tax asset, net

 

 

9,423

 

 

 

4,809

 

 

Income taxes receivable

 

 

-

 

 

 

4,341

 

 

Other current assets

 

 

7,190

 

 

 

4,385

 

 

 

Total current assets

 

 

445,014

 

 

 

437,110

 

Long-term investments

 

 

27,220

 

 

 

20,096

 

Property and equipment, net

 

 

44,264

 

 

 

26,252

 

Intangible assets, net

 

 

19,331

 

 

 

8,569

 

Goodwill

 

 

15,263

 

 

 

3,778

 

Deferred tax asset, net

 

 

27,758

 

 

 

18,371

 

Other assets

 

 

362

 

 

 

230

 

 

Total assets

 

$

579,212

 

 

$

514,406

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

12,845

 

 

$

10,318

 

 

Accrued expenses and other current liabilities

 

 

18,964

 

 

 

12,715

 

 

Deferred revenue

 

 

23,482

 

 

 

22,261

 

 

 

Total current liabilities

 

 

55,291

 

 

 

45,294

 

 

 

 

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

3,663

 

 

 

2,049

 

Deferred rent, net of current portion

 

 

9,620

 

 

 

4,533

 

Deferred tax liability

 

 

2,914

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

Common stock

 

 

76

 

 

 

74

 

 

Additional paid-in capital

 

 

442,990

 

 

 

363,769

 

 

Treasury stock, at cost

 

 

(66,311

)

 

 

(37,522

)

 

Accumulated other comprehensive income

 

 

3

 

 

 

1

 

 

Retained earnings

 

 

130,966

 

 

 

136,208

 

 

 

Total stockholders' equity

 

 

507,724

 

 

 

462,530

 

 

Total liabilities and stockholders' equity

 

$

579,212

 

 

$

514,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                       
 

 

Condensed Consolidated Statements of Cash Flow Data

 

(in thousands)

 

(unaudited)

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2012

 

 

2011

 

 

2012

 

 

2011

 

Cash provided by operating activities

 

$

3,856

 

 

$

18,695

 

 

$

63,357

 

 

$

55,341

 

Cash used in investing activities

 

 

(19,738

)

 

 

(34,550

)

 

 

(166,039

)

 

 

(49,036

)

Cash provided by (used in) financing activities

 

 

15,096

 

 

 

19,296

 

 

 

(2,340

)

 

 

62,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acme Packet, Inc.
Statement on Use of Non-GAAP Financial Measures and
Reconciliation of Non-GAAP Net (Loss) Income and Non-GAAP Net (Loss) 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 December 31, 2012, September 30, 2012, and December 31, 2011 and for the Twelve Months Ended December 31, 2012 and December 31, 2011:

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended December 31, 2012

(in thousands, except per share data)

(unaudited)

 

 

 






GAAP

 

 


Stock-based compensation expense and related payroll taxes

 

 



Amortization of acquired intangible assets

 

 






Non-GAAP1

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

10,145

 

 

$

(379

)

 

$

(657

)

 

$

9,109

 

Maintenance, support and service

 

 

3,464

 

 

 

(522

)

 

 

-

 

 

 

2,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

38,406

 

 

 

(6,991

)

 

 

(288

)

 

 

31,127

 

Research and development

 

 

16,528

 

 

 

(3,201

)

 

 

(51

)

 

 

13,276

 

General and administrative

 

 

5,211

 

 

 

(1,088

)

 

 

-

 

 

 

4,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

 

(1,182

)

 

 

4,305

 

 

 

369

 

 

 

3,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

(2,029

)

 

 

7,876

 

 

 

627

 

 

 

6,474

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

$

0.12

 

 

$

0.01

 

 

$

0.10

 

Diluted

 

$

(0.03

)

 

$

0.11

 

 

$

0.01

 

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in the calculation of net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

67,627,896

 

 

 

67,627,896

 

 

 

67,627,896

 

 

 

67,627,896

 

Diluted

 

 

67,627,896

 

 

 

69,611,815

 

 

 

69,611,815

 

 

 

69,611,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended September 30, 2012

(in thousands, except per share data)

(unaudited)

 

 

 

 






GAAP

 


Stock-based compensation expense and related payroll taxes

 



Amortization of acquired intangible assets

 




Merger 
related 
costs

 






Non-GAAP1

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

$

9,584

 

$

(438

)

$

(658

)

$

-

 

$

8,488

 

Maintenance, support and service

 

4,261

 

 

(702

)

 

-

 

 

-

 

 

3,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

35,090

 

 

(6,794

)

 

(261

)

 

-

 

 

28,035

 

Research and development

 

16,898

 

 

(4,181

)

 

(51

)

 

-

 

 

12,666

 

General and administrative

 

6,154

 

 

(1,336

)

 

-

 

 

-

 

 

4,818

 

Merger related costs

 

30

 

 

-

 

 

-

 

 

(30

)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

(1,129

)

 

3,844

 

 

359

 

 

-

 

 

3,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

(5,515

)

 

9,607

 

 

611

 

 

30

 

 

4,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.08

)

$

0.14

 

$

0.01

 

$

0.00

 

$

0.07

 

Diluted

$

(0.08

)

$

0.14

 

$

0.01

 

$

0.00

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in the calculation of net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

68,246,091

 

 

68,246,091

 

 

68,246,091

 

 

68,246,091

 

 

68,246,091

 

Diluted

 

68,246,091

 

 

70,102,125

 

 

70,102,125

 

 

70,102,125

 

 

70,102,125

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended December 31, 2011

(in thousands, except per share data)

(unaudited)

 

 






GAAP

 


Stock-based compensation expense and related payroll taxes

 

 



Amortization of acquired intangible assets

 

 






Non-GAAP1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in the calculation of net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

67,314,606

 

 

67,314,606

 

 

 

67,314,606

 

 

 

67,314,606

 

Diluted

 

 

70,679,690

 

 

70,679,690

 

 

 

70,679,690

 

 

 

70,679,690

                                                           
 

 

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Twelve Months Ended December 31, 2012

(in thousands, except per share data)

(unaudited)

 

 

 






GAAP

 

 


Stock-based compensation expense and related payroll taxes

 

 



Amortization of acquired intangible assets

 

 




Merger 
related 
costs

 

 






Non-GAAP1

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

39,492

 

 

$

(1,687

)

 

$

(2,332

)

 

$

-

 

 

$

35,473

 

Maintenance, support and service

 

 

15,358

 

 

 

(2,642

)

 

 

-

 

 

 

-

 

 

 

12,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

136,636

 

 

 

(26,769

)

 

 

(844

)

 

 

-

 

 

 

109,023

 

Research and development

 

 

64,780

 

 

 

(16,031

)

 

 

(136

)

 

 

-

 

 

 

48,613

 

General and administrative

 

 

23,652

 

 

 

(6,003

)

 

 

-

 

 

 

-

 

 

 

17,649

 

Merger related costs

 

 

643

 

 

 

-

 

 

 

-

 

 

 

(643

)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

 

(914

)

 

 

17,694

 

 

 

1,235

 

 

 

-

 

 

 

18,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

(5,242

)

 

 

35,439

 

 

 

2,077

 

 

 

643

 

 

 

32,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.08

)

 

$

0.52

 

 

$

0.03

 

 

$

0.01

 

 

$

0.48

 

Diluted

 

$

(0.08

)

 

$

0.50

 

 

$

0.03

 

 

$

0.01

 

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares used in the calculation of net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

68,084,305

 

 

 

68,084,305

 

 

 

68,084,305

 

 

 

68,084,305

 

 

 

68,084,305

 

Diluted

 

 

68,084,305

 

 

 

70,445,310

 

 

 

70,445,310

 

 

 

70,445,310

 

 

 

70,445,310

 

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Twelve Months Ended December 31, 2011

(in thousands, except per share data)

(unaudited)

 

 

 






GAAP

 


Stock-based compensation expense and related payroll taxes

 

 



Amortization of acquired intangible assets

 

 




Merger 
related 
costs

 

 






Non-GAAP1

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

42,245

 

$

(1,230

)

 

$

(1,677

)

 

$

-

 

 

$

39,338

 

Maintenance, support and service

 

 

11,691

 

 

(2,095

)

 

 

-

 

 

 

-

 

 

 

9,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

105,580

 

 

(17,661

)

 

 

(387

)

 

 

-

 

 

 

87,532

 

Research and development

 

 

51,483

 

 

(10,886

)

 

 

(45

)

 

 

-

 

 

 

40,552

 

General and administrative

 

 

21,844

 

 

(5,472

)

 

 

-

 

 

 

-

 

 

 

16,372

 

Merger related costs

 

 

300

 

 

-

 

 

 

-

 

 

 

(300

)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

29,576

 

 

11,022

 

 

 

755

 

 

 

43

 

 

 

41,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

44,360

 

$

26,322

 

 

$

1,354

 

 

$

257

 

 

$

72,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.67

 

$

0.40

 

 

$

0.02

 

 

$

0.00

 

 

$

1.09

 

Diluted

 

$

0.63

 

$

0.37

 

 

$

0.02

 

 

$

0.00

 

 

$

1.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares used in the calculation of net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

66,346,008

 

 

66,346,008

 

 

 

66,346,008

 

 

 

66,346,008

 

 

 

66,346,008

 

Diluted

 

 

70,902,293

 

 

70,902,293

 

 

 

70,902,293

 

 

 

70,902,293

 

 

 

70,902,293

 

 

 

 

Acme Packet, Inc.

Other Operational Data

(unaudited)

 

 

 

Three Months Ended

 

 

December 31,
2012

 

September 30,
2012

 

December 31, 
2011

Other operational data:

 

 

 

 

 

 

 

 

 

Depreciation and amortization (in thousands)

 

$

4,013

 

$

3,991

 

$

2,944

Capital expenditures (in thousands)

 

 

8,902

 

 

5,151

 

 

4,186

Days sales outstanding

 

 

75

 

 

79

 

 

65

Total headcount

 

 

880

 

 

863

 

 

752

Quarterly inventory turnover - annualized

 

 

3.71

 

 

3.28

 

 

4.41

 

·          

 February 04, 2013 08:05 ET

 

Acme Packet Reports Results for Fourth Quarter of 2012

BEDFORD, MA--(Marketwire - Feb 4, 2013) - Acme Packet, Inc. (NASDAQ: APKT), the leader in session delivery network solutions, today announced results for the fourth quarter of 2012.

Results for the Fourth Quarter of 2012
Total revenue for the fourth quarter of 2012 was $70.7 million, compared to $83.0 million in the fourth quarter of 2011 and $65.3 million in the third quarter of 2012. GAAP net loss for the fourth quarter of 2012 was $2.0 million, or $(0.03) per share, compared to GAAP net income of $8.7 million, or $0.12 per share, in the fourth quarter of 2011 and GAAP net loss of $5.5 million, or $(0.08) per share, in the third quarter of 2012. Net income on a non-GAAPbasis for the fourth quarter of 2012 was $6.5 million, or $0.09 per share, compared to $18.3 million, or $0.26 per share, in the fourth quarter of 2011, and $4.7 million, or $0.07 per share, in the third quarter of 2012. All earnings per share results, referenced above, are on a fully diluted basis.

Quarterly Conference Call Cancelled

As a result of the earlier announcement, Oracle to Buy Acme Packet, Acme Packet is cancelling its financial results conference call previously scheduled for today.

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, 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 primarily in the USA, selling them through over 330 reseller partners worldwide. More than 1,925 customers in 109 countries have deployed over 21,000 Acme Packet systems, including 89 of the top 100 service providers and 51 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

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2012

 

 

2011

 

 

2012

 

 

2011

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

51,307

 

 

$

64,276

 

 

$

201,098

 

 

$

241,783

 

 

Maintenance, support and service

 

 

19,395

 

 

 

18,720

 

 

 

73,339

 

 

 

65,534

 

 

 

Total revenue

 

 

70,702

 

 

 

82,996

 

 

 

274,437

 

 

 

307,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

 

10,145

 

 

 

12,155

 

 

 

39,492

 

 

 

42,245

 

 

Maintenance, support and service

 

 

3,464

 

 

 

3,118

 

 

 

15,358

 

 

 

11,691

 

 

 

Total cost of revenue

 

 

13,609

 

 

 

15,273

 

 

 

54,850

 

 

 

53,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

57,093

 

 

 

67,723

 

 

 

219,587

 

 

 

253,381

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

38,406

 

 

 

29,940

 

 

 

136,636

 

 

 

105,580

 

 

Research and development

 

 

16,528

 

 

 

14,221

 

 

 

64,780

 

 

 

51,483

 

 

General and administrative

 

 

5,211

 

 

 

6,073

 

 

 

23,652

 

 

 

21,844

 

 

Merger related costs

 

 

-

 

 

 

-

 

 

 

643

 

 

 

300

 

 

 

Total operating expenses

 

 

60,145

 

 

 

50,234

 

 

 

225,711

 

 

 

179,207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from operations

 

 

(3,052

)

 

 

17,489

 

 

 

(6,124

)

 

 

74,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense, net

 

 

(159

)

 

 

(91

)

 

 

(32

)

 

 

(238

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

 

(3,211

)

 

 

17,398

 

 

 

(6,156

)

 

 

73,936

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

 

(1,182

)

 

 

8,681

 

 

 

(914

)

 

 

29,576

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(2,029

)

 

$

8,717

 

 

$

(5,242

)

 

$

44,360

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

$

0.13

 

 

$

(0.08

)

 

$

0.67

 

 

Diluted

 

$

(0.03

)

 

$

0.12

 

 

$

(0.08

)

 

$

0.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares used in the calculation of net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

67,627,896

 

 

 

67,314,606

 

 

 

68,084,305

 

 

 

66,346,008

 

 

Diluted

 

 

67,627,896

 

 

 

70,679,690

 

 

 

68,084,305

 

 

 

70,902,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acme Packet, Inc.

 

Condensed Consolidated Balance Sheets

 

(in thousands)

 

(unaudited)

 

 

 

 

 

 

 

 

 

December 31,
2012

 

 

December 31,
2011

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

55,381

 

 

$

160,403

 

 

Short-term investments

 

 

302,865

 

 

 

191,672

 

 

Accounts receivable, net

 

 

58,610

 

 

 

59,739

 

 

Inventory, net

 

 

10,539

 

 

 

10,246

 

 

Deferred product costs

 

 

1,006

 

 

 

1,515

 

 

Deferred tax asset, net

 

 

9,423

 

 

 

4,809

 

 

Income taxes receivable

 

 

-

 

 

 

4,341

 

 

Other current assets

 

 

7,190

 

 

 

4,385

 

 

 

Total current assets

 

 

445,014

 

 

 

437,110

 

Long-term investments

 

 

27,220

 

 

 

20,096

 

Property and equipment, net

 

 

44,264

 

 

 

26,252

 

Intangible assets, net

 

 

19,331

 

 

 

8,569

 

Goodwill

 

 

15,263

 

 

 

3,778

 

Deferred tax asset, net

 

 

27,758

 

 

 

18,371

 

Other assets

 

 

362

 

 

 

230

 

 

Total assets

 

$

579,212

 

 

$

514,406

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

12,845

 

 

$

10,318

 

 

Accrued expenses and other current liabilities

 

 

18,964

 

 

 

12,715

 

 

Deferred revenue

 

 

23,482

 

 

 

22,261

 

 

 

Total current liabilities

 

 

55,291

 

 

 

45,294

 

 

 

 

 

 

 

 

 

 

Deferred revenue, net of current portion

 

 

3,663

 

 

 

2,049

 

Deferred rent, net of current portion

 

 

9,620

 

 

 

4,533

 

Deferred tax liability

 

 

2,914

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

Common stock

 

 

76

 

 

 

74

 

 

Additional paid-in capital

 

 

442,990

 

 

 

363,769

 

 

Treasury stock, at cost

 

 

(66,311

)

 

 

(37,522

)

 

Accumulated other comprehensive income

 

 

3

 

 

 

1

 

 

Retained earnings

 

 

130,966

 

 

 

136,208

 

 

 

Total stockholders' equity

 

 

507,724

 

 

 

462,530

 

 

Total liabilities and stockholders' equity

 

$

579,212

 

 

$

514,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                       
 

 

Condensed Consolidated Statements of Cash Flow Data

 

(in thousands)

 

(unaudited)

 

 

 

 

 

Three Months Ended

 

 

Twelve Months Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2012

 

 

2011

 

 

2012

 

 

2011

 

Cash provided by operating activities

 

$

3,856

 

 

$

18,695

 

 

$

63,357

 

 

$

55,341

 

Cash used in investing activities

 

 

(19,738

)

 

 

(34,550

)

 

 

(166,039

)

 

 

(49,036

)

Cash provided by (used in) financing activities

 

 

15,096

 

 

 

19,296

 

 

 

(2,340

)

 

 

62,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acme Packet, Inc.
Statement on Use of Non-GAAP Financial Measures and
Reconciliation of Non-GAAP Net (Loss) Income and Non-GAAP Net (Loss) 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 December 31, 2012, September 30, 2012, and December 31, 2011 and for the Twelve Months Ended December 31, 2012 and December 31, 2011:

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended December 31, 2012

(in thousands, except per share data)

(unaudited)

 

 

 






GAAP

 

 


Stock-based compensation expense and related payroll taxes

 

 



Amortization of acquired intangible assets

 

 






Non-GAAP1

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

10,145

 

 

$

(379

)

 

$

(657

)

 

$

9,109

 

Maintenance, support and service

 

 

3,464

 

 

 

(522

)

 

 

-

 

 

 

2,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

38,406

 

 

 

(6,991

)

 

 

(288

)

 

 

31,127

 

Research and development

 

 

16,528

 

 

 

(3,201

)

 

 

(51

)

 

 

13,276

 

General and administrative

 

 

5,211

 

 

 

(1,088

)

 

 

-

 

 

 

4,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

 

(1,182

)

 

 

4,305

 

 

 

369

 

 

 

3,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

(2,029

)

 

 

7,876

 

 

 

627

 

 

 

6,474

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

$

0.12

 

 

$

0.01

 

 

$

0.10

 

Diluted

 

$

(0.03

)

 

$

0.11

 

 

$

0.01

 

 

$

0.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in the calculation of net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

67,627,896

 

 

 

67,627,896

 

 

 

67,627,896

 

 

 

67,627,896

 

Diluted

 

 

67,627,896

 

 

 

69,611,815

 

 

 

69,611,815

 

 

 

69,611,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended September 30, 2012

(in thousands, except per share data)

(unaudited)

 

 

 

 






GAAP

 


Stock-based compensation expense and related payroll taxes

 



Amortization of acquired intangible assets

 




Merger 
related 
costs

 






Non-GAAP1

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

$

9,584

 

$

(438

)

$

(658

)

$

-

 

$

8,488

 

Maintenance, support and service

 

4,261

 

 

(702

)

 

-

 

 

-

 

 

3,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

35,090

 

 

(6,794

)

 

(261

)

 

-

 

 

28,035

 

Research and development

 

16,898

 

 

(4,181

)

 

(51

)

 

-

 

 

12,666

 

General and administrative

 

6,154

 

 

(1,336

)

 

-

 

 

-

 

 

4,818

 

Merger related costs

 

30

 

 

-

 

 

-

 

 

(30

)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

(1,129

)

 

3,844

 

 

359

 

 

-

 

 

3,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

(5,515

)

 

9,607

 

 

611

 

 

30

 

 

4,733

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.08

)

$

0.14

 

$

0.01

 

$

0.00

 

$

0.07

 

Diluted

$

(0.08

)

$

0.14

 

$

0.01

 

$

0.00

 

$

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in the calculation of net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

68,246,091

 

 

68,246,091

 

 

68,246,091

 

 

68,246,091

 

 

68,246,091

 

Diluted

 

68,246,091

 

 

70,102,125

 

 

70,102,125

 

 

70,102,125

 

 

70,102,125

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended December 31, 2011

(in thousands, except per share data)

(unaudited)

 

 






GAAP

 


Stock-based compensation expense and related payroll taxes

 

 



Amortization of acquired intangible assets

 

 






Non-GAAP1

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares used in the calculation of net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

67,314,606

 

 

67,314,606

 

 

 

67,314,606

 

 

 

67,314,606

 

Diluted

 

 

70,679,690

 

 

70,679,690

 

 

 

70,679,690

 

 

 

70,679,690

                                                           
 

 

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Twelve Months Ended December 31, 2012

(in thousands, except per share data)

(unaudited)

 

 

 






GAAP

 

 


Stock-based compensation expense and related payroll taxes

 

 



Amortization of acquired intangible assets

 

 




Merger 
related 
costs

 

 






Non-GAAP1

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

39,492

 

 

$

(1,687

)

 

$

(2,332

)

 

$

-

 

 

$

35,473

 

Maintenance, support and service

 

 

15,358

 

 

 

(2,642

)

 

 

-

 

 

 

-

 

 

 

12,716

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

136,636

 

 

 

(26,769

)

 

 

(844

)

 

 

-

 

 

 

109,023

 

Research and development

 

 

64,780

 

 

 

(16,031

)

 

 

(136

)

 

 

-

 

 

 

48,613

 

General and administrative

 

 

23,652

 

 

 

(6,003

)

 

 

-

 

 

 

-

 

 

 

17,649

 

Merger related costs

 

 

643

 

 

 

-

 

 

 

-

 

 

 

(643

)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Benefit from) provision for income taxes

 

 

(914

)

 

 

17,694

 

 

 

1,235

 

 

 

-

 

 

 

18,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

(5,242

)

 

 

35,439

 

 

 

2,077

 

 

 

643

 

 

 

32,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.08

)

 

$

0.52

 

 

$

0.03

 

 

$

0.01

 

 

$

0.48

 

Diluted

 

$

(0.08

)

 

$

0.50

 

 

$

0.03

 

 

$

0.01

 

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares used in the calculation of net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

68,084,305

 

 

 

68,084,305

 

 

 

68,084,305

 

 

 

68,084,305

 

 

 

68,084,305

 

Diluted

 

 

68,084,305

 

 

 

70,445,310

 

 

 

70,445,310

 

 

 

70,445,310

 

 

 

70,445,310

 

 

 

 

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Twelve Months Ended December 31, 2011

(in thousands, except per share data)

(unaudited)

 

 

 






GAAP

 


Stock-based compensation expense and related payroll taxes

 

 



Amortization of acquired intangible assets

 

 




Merger 
related 
costs

 

 






Non-GAAP1

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

42,245

 

$

(1,230

)

 

$

(1,677

)

 

$

-

 

 

$

39,338

 

Maintenance, support and service

 

 

11,691

 

 

(2,095

)

 

 

-

 

 

 

-

 

 

 

9,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

105,580

 

 

(17,661

)

 

 

(387

)

 

 

-

 

 

 

87,532

 

Research and development

 

 

51,483

 

 

(10,886

)

 

 

(45

)

 

 

-

 

 

 

40,552

 

General and administrative

 

 

21,844

 

 

(5,472

)

 

 

-

 

 

 

-

 

 

 

16,372

 

Merger related costs

 

 

300

 

 

-

 

 

 

-

 

 

 

(300

)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

29,576

 

 

11,022

 

 

 

755

 

 

 

43

 

 

 

41,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

44,360

 

$

26,322

 

 

$

1,354

 

 

$

257

 

 

$

72,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.67

 

$

0.40

 

 

$

0.02

 

 

$

0.00

 

 

$

1.09

 

Diluted

 

$

0.63

 

$

0.37

 

 

$

0.02

 

 

$

0.00

 

 

$

1.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares used in the calculation of net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

66,346,008

 

 

66,346,008

 

 

 

66,346,008

 

 

 

66,346,008

 

 

 

66,346,008

 

Diluted

 

 

70,902,293

 

 

70,902,293

 

 

 

70,902,293

 

 

 

70,902,293

 

 

 

70,902,293

 

 

 

 

Acme Packet, Inc.

Other Operational Data

(unaudited)

 

 

 

Three Months Ended

 

 

December 31,
2012

 

September 30,
2012

 

December 31, 
2011

Other operational data:

 

 

 

 

 

 

 

 

 

Depreciation and amortization (in thousands)

 

$

4,013

 

$

3,991

 

$

2,944

Capital expenditures (in thousands)

 

 

8,902

 

 

5,151

 

 

4,186

Days sales outstanding

 

 

75

 

 

79

 

 

65

Total headcount

 

 

880

 

 

863

 

 

752

Quarterly inventory turnover - annualized

 

 

3.71

 

 

3.28

 

 

4.41

 

·