UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: August 01, 2013
(Date of earliest event reported)
Callidus Software, Inc.
(Exact name of registrant as specified in its charter)
CA
(State or other jurisdiction
of incorporation)
000-50463
(Commission File Number)
77-0438629
(IRS Employer
Identification Number)
6200 Stoneridge Mall Road
(Address of principal executive offices)
94588
(Zip Code)
(925) 251-2200
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
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Item 2.02. Results of Operations and Financial Condition Callidus Software, Inc. announces financial results for the quarter ended June 30, 2013.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
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.
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Dated: August 01, 2013 |
CALLIDUS SOFTWARE, INC.
By: /s/ Bob L. Corey |
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| Exhibit No. | Description |
| 99.1 | Press Release of Callidus Software, Inc. dated August 01, 2013 |
Generates $5.2 Million in Cash From Operations During Q2 2013 on $25.9 Million in Total Revenue
PLEASANTON, CA -- (Marketwired - August 01, 2013) - Callidus Software Inc. (NASDAQ: CALD), a leading provider of sales and marketing effectiveness software, today announced financial results for the second quarter ended June 30, 2013.
"I was pleased with our performance in Q2, with revenue and billings results outperforming expectations and the continued expansion of our gross margin," said Leslie Stretch, President and CEO, CallidusCloud. "In the quarter we added 183 net new subscription logos, up 25% year over year, and generated $5.2 million of cash from operations. We expect this momentum in the business to continue through 2013 and beyond."
Financial Highlights for the Second Quarter 2013
Non-GAAP Performance
GAAP Performance
Business Highlights for the Second Quarter 2013
Financial Outlook for 2013 - Third Quarter and Full Year
For the third quarter of 2013, the Company expects total revenue to be in the range of $26 to $27 million. GAAP operating expenses are expected to be in the range of $16.6 to $17.6 million. Non-GAAP operating expenses are expected to be in the range of $13.6 to $14.6 million.
For the full year of 2013 the company expects revenue to be in the range of $106 to $109 million, representing a narrowing of previous guidance of $105 to $110 million. GAAP operating loss is expected to be in the range of $13 to $14 million. Non-GAAP operating income is expected to be in the range of $3.5 to $4.5 million, representing a reduction from the prior guidance range of $4.0 to $5.0 million.
Conference Call
In conjunction with this announcement CallidusCloud will host a conference call at 1:30 p.m. Pacific Daylight Time (PDT) today to discuss the second quarter 2013 results and outlook for the third quarter 2013 and full year 2013. The conference call will be available via live webcast at the Investor Relations section of CallidusCloud's website.
Webcast site: http://www.calliduscloud.com/about-us/investor-relations/
Dial-in: 866-318-8611 (International callers: 617-399-5130)
Passcode: 61743110
Replay information: A webcast replay will be available on the Investor Relations section of our website under Calendar of Events.
For more information, please visit: http://www.calliduscloud.com/about-us/investor-relations/
About CallidusCloud
Callidus Software Inc. (NASDAQ: CALD), doing business as CallidusCloud®, is a leading provider of cloud software. CallidusCloud enables organizations to accelerate and maximize their lead to money process with sales and marketing effectiveness cloud software. CallidusCloud maximizes and accelerates sales and marketing processes for over 2,000 leading organizations. Small, medium and large enterprises across multiple industries and geographies rely on CallidusCloud for better marketing, and smarter selling.
For more information, please visit www.calliduscloud.com.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including discussion of our commercial prospects, estimates of revenues, operating expenses, stock-based compensation expense, amortization of acquired intangibles, restructuring, and patent litigation defense costs reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, relative growth of our recurring revenue, potential decreases in customer spending, uncertainty regarding purchasing trends in the cloud software market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, and other risks detailed in reports we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K which may be obtained by contacting CallidusCloud's Investor Relations department at 925-251-2248, or from the Investor Relations section of CallidusCloud's website (CallidusCloud Investor Relations). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
Non-GAAP Financial Measures
CallidusCloud has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross margin, non-GAAP recurring revenue gross margin, non-GAAP net loss, non-GAAP net loss per share. CallidusCloud uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors, as a supplement to GAAP measures, in evaluating CallidusClouds' operating performance. CallidusCloud believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in CallidusClouds' industry, many of which present non-GAAP financial measures that may resemble our non-GAAP financial measures. As noted, our non-GAAP financial measures exclude stock-based compensation expense, a benefit from a purchase acquisition-related adjustment, restructuring expense, acquisition related expense, patent litigation defense cost, convertible note interest expense, amortization of convertible note issuance cost and amortization of acquired intangibles. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
©2013. Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, TrueComp Manager, ActekSoft, ACom3, ForceLogix, Salesforce Assessments, iCentera, Webcom, Litmos, the Litmos logo, LeadFormix, Rapid Intake, and 6FigureJobs are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(unaudited)
Three Months Ended Six Months Ended June
June 30, 30,
--------------------- ---------------------
2013 2012 2013 2012
--------- --------- --------- ---------
Revenues:
Recurring $ 19,616 $ 18,027 $ 39,240 $ 34,913
Services and other 6,314 5,754 12,232 10,881
--------- --------- --------- ---------
Total revenues 25,930 23,781 51,472 45,794
Cost of revenues:
Recurring (1) (2) 6,931 7,896 14,384 15,445
Services and other (1) (2) 4,739 4,808 9,961 9,188
--------- --------- --------- ---------
Total cost of revenues 11,670 12,704 24,345 24,633
--------- --------- --------- ---------
Gross profit 14,260 11,077 27,127 21,161
Operating expenses:
Sales and marketing (1)
(2) 7,891 8,293 15,535 15,222
Research and development
(1) (2) 4,409 4,072 8,838 8,090
General and administrative
(1) (2) (3) (4) 5,852 4,849 11,038 9,854
Acquisition related
contingent consideration - (1,837) - (1,837)
Restructuring 315 172 1,558 614
--------- --------- --------- ---------
Total operating expenses 18,467 15,549 36,969 31,943
--------- --------- --------- ---------
Operating loss (4,207) (4,472) (9,842) (10,782)
Interest income and other
income (expense) (5) (6) (995) (944) (1,839) (1,739)
--------- --------- --------- ---------
Loss before provision
(benefit) for income taxes (5,202) (5,416) (11,681) (12,521)
Provision (benefit) for
income taxes (7) 980 (109) 1,104 (231)
--------- --------- --------- ---------
Net loss $ (6,182) $ (5,307) $ (12,785) $ (12,290)
========= ========= ========= =========
Net loss per share - basic
and diluted
Net loss per share $ (0.16) $ (0.15) $ (0.34) $ (0.35)
Shares used in basic and
diluted per share
computation 37,813 35,235 37,478 34,674
(1) Stock-based compensation included
in amounts above by category:
Cost of recurring 204 383 378 929
Cost of services 236 573 642 1,050
Sales and marketing 581 1,165 1,154 1,940
Research and development 467 485 933 899
General and administrative 1,628 1,688 2,600 2,677
--------- --------- --------- ---------
Total stock-based
compensation 3,116 4,294 5,707 7,495
(2) Acquisition, acquired and
settlement related asset amortization
Cost of recurring 515 488 1,027 974
Cost of services 13 38 25 44
Sales and marketing 231 202 459 413
General and administrative 59 57 117 120
--------- --------- --------- ---------
Total acquisition
related asset
amortization 818 785 1,628 1,551
(3) Acquisition related
expense - 267 - 637
(4) Patent litigation costs 347 7 661 620
(5) Interest expense on
convertible notes 703 703 1,406 1,406
(6) Amortization of
convertible note issuance
costs 134 134 268 268
(7) Tax benefit from release
of valuation allowance - - - (224)
CALLIDUS SOFTWARE INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except per share data)
June 30, December 31,
2013 2012
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 18,299 $ 16,400
Short-term investments 8,898 12,771
Accounts receivable, net 22,167 22,567
Deferred income taxes 40 40
Prepaid and other current assets 6,990 6,718
-------------- --------------
Total current assets 56,394 58,496
Property and equipment, net 13,018 10,580
Goodwill 31,207 31,207
Intangible assets, net 19,020 21,196
Deferred income taxes, noncurrent 392 392
Deposits and other assets 3,076 2,872
-------------- --------------
Total assets $ 123,107 $ 124,743
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,280 $ 4,705
Accrued payroll and related expenses 4,864 5,854
Accrued expenses 5,896 8,164
Deferred income taxes 944 944
Deferred revenue 38,996 35,483
Capital lease obligations 1,470 921
-------------- --------------
Total current liabilities 53,450 56,071
Deferred revenue, noncurrent 8,392 3,702
Deferred income taxes, noncurrent 278 160
Other liabilities 1,997 2,159
Capital lease obligations, noncurrent 1,884 8
Convertible notes 59,215 59,215
-------------- --------------
Total liabilities 125,216 121,315
-------------- --------------
Stockholders' equity:
Common stock 34 34
Additional paid-in capital 262,716 255,331
Treasury stock (14,430) (14,430)
Accumulated other comprehensive income 102 239
Accumulated deficit (250,531) (237,746)
-------------- --------------
Total stockholders' equity (2,109) 3,428
-------------- --------------
Total liabilities and stockholders'
equity $ 123,107 $ 124,743
============== ==============
CALLIDUS SOFTWARE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended June 30,
2013 2012
------------ ------------
Cash flows from operating activities:
Net loss $ (12,785) $ (12,290)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation expense 2,109 1,490
Amortization of intangible assets 2,414 2,558
Provision for doubtful accounts and
service remediation reserves 314 52
Stock-based compensation 5,707 7,495
Release of valuation allowance - (224)
Gain on disposal of property and equipment 3 (5)
Amortization of convertible notes issuance
cost 268 268
Net amortization on investments 46 231
Acquisition-related contingent
consideration - (1,837)
Changes in operating assets and
liabilities:
Accounts receivable 86 (6,712)
Prepaid and other current assets (272) (637)
Other assets (472) 548
Accounts payable (3,201) 118
Accrued expenses 847 (374)
Accrued payroll and related expenses (431) (379)
Accrued restructuring (578) 230
Deferred revenue 8,203 1,270
Deferred income taxes 118 (54)
------------ ------------
Net cash provided by (used in) operating
activities 2,376 (8,252)
------------ ------------
Cash flows from investing activities:
Purchases of investments (5,634) (16,536)
Proceeds from maturities and sale of
investments 9,450 26,111
Purchases of property and equipment (1,353) (1,714)
Proceeds from disposal of property and
equipment (3) 5
Purchases of intangible assets (364) (4,485)
Acquisitions, net of cash acquired - (7,721)
------------ ------------
Net cash provided by (used in) investing
activities 2,096 (4,340)
------------ ------------
Cash flows from financing activities:
Proceeds from issuance of common stock 2,168 4,295
Repurchase of common stock from employees
for payment
of taxes on vesting of restricted stock
units (490) (1,829)
Payment of consideration related to
acquisitions (3,078) (723)
Proceeds from issuance of convertible notes,
net of issuance costs - (30)
Payment of principal under capital leases (1,047) (587)
------------ ------------
Net cash (used in) provided by financing
activities (2,447) 1,126
------------ ------------
Effect of exchange rates on cash and cash
equivalents (126) 5
------------ ------------
Net increase (decrease) in cash and cash
equivalents 1,899 (11,461)
Cash and cash equivalents at beginning of
period 16,400 17,383
------------ ------------
Cash and cash equivalents at end of period $ 18,299 $ 5,922
============ ============
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except for percentages and per share data)
(unaudited)
Three months ended Six months ended
June 30, June 30,
--------------------- ---------------------
2013 2012 2013 2012
--------- --------- --------- ---------
Non-GAAP gross profit
reconciliation
Gross profit $ 14,260 $ 11,077 $ 27,127 $ 21,161
Profit margin, as a % of
total revenues 55% 47% 53% 46%
Add back:
Non-cash stock-based
compensation 440 956 1,020 1,979
Non-cash amortization of
acquired intangible
assets 528 526 1,052 1,018
--------- --------- --------- ---------
Non-GAAP gross profit $ 15,228 $ 12,559 $ 29,199 $ 24,158
--------- --------- --------- ---------
Profit margin, as a % of
total revenues 59% 53% 57% 53%
Non-GAAP recurring revenue
gross profit reconciliation
Recurring revenue gross
profit $ 12,685 $ 10,131 $ 24,856 19,468
Recurring revenue profit
margin, as a % of
recurring revenues 65% 56% 63% 56%
Add back:
Non-cash stock-based
compensation 204 383 378 929
Non-cash amortization of
acquired intangible
assets 515 488 1,027 974
--------- --------- --------- ---------
Non-GAAP Recurring revenue
gross profit $ 13,404 $ 11,002 $ 26,261 $ 21,371
--------- --------- --------- ---------
Recurring revenue profit
margin, as a % of
recurring revenues 68% 61% 67% 61%
Non-GAAP operating expense
reconciliation:
Operating expenses $ 18,467 15,549 $ 36,969 31,943
Operating expenses, as a
% of total revenues 71% 65% 72% 70%
Add back:
Non-cash stock-based
compensation (2,676) (3,338) (4,687) (5,516)
Non-cash amortization of
acquired intangible
assets (290) (259) (576) (533)
Acquisition-related
expense - (267) - (637)
Patent litigation and
settlement costs (347) (7) (661) (620)
Acquisition-related
adjustment - 1,837 - 1,837
Restructuring (315) (172) (1,558) (614)
--------- --------- --------- ---------
Non-GAAP Operating Expenses $ 14,839 $ 13,343 $ 29,487 $ 25,860
--------- --------- --------- ---------
Non-GAAP Operating
expenses, as a % of
total revenues 57% 56% 57% 56%
Non-GAAP operating income
(loss) reconciliation:
Operating loss $ (4,207) (4,472) $ (9,842) (10,782)
Operating loss, as a %
of total revenues -16% -19% -19% -24%
Add back:
Non-cash stock-based
compensation 3,116 4,294 5,707 7,495
Non-cash amortization of
acquired intangible
assets 818 785 1,628 1,551
Acquisition-related
expense - 267 - 637
Patent litigation and
settlement costs 347 7 661 620
Acquisition-related
adjustment - (1,837) - (1,837)
Restructuring 315 172 1,558 614
--------- --------- --------- ---------
Non-GAAP Operating income
(loss) $ 389 $ (784) $ (288) $ (1,702)
--------- --------- --------- ---------
Non-GAAP Operating
income (loss), as a %
of total revenues 2% -3% -1% -4%
CALLIDUS SOFTWARE INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except for percentages and per share data)
(unaudited)
Three months ended Six months ended
June 30, June 30,
--------------------- ---------------------
2013 2012 2013 2012
--------- --------- --------- ---------
Non-GAAP net loss
reconciliation:
Net loss $ (6,182) $ (5,307) $ (12,785) (12,290)
Net loss, as a % of
total revenues -24% -22% -25% -27%
Add back:
Non-cash stock-based
compensation 3,116 4,294 5,707 7,495
Non-cash amortization of
acquired intangible
assets 818 785 1,628 1,551
Acquisition related
expenses - 267 - 637
Patent litigation and
settlement costs 347 7 661 620
Acquisition-related
adjustment - (1,837) - (1,837)
Restructuring 315 172 1,558 614
Interest expense on
convertible notes 703 703 1,406 1,406
Amortization of
convertible note
issuance cost 134 134 268 268
Tax benefit from release
of valuation allowance - - - (224)
--------- --------- --------- ---------
Non-GAAP Net income (loss) $ (749) $ (782) $ (1,557) $ (1,760)
--------- --------- --------- ---------
Non-GAAP Net income
(loss), as a % of total
revenues -3% -3% -3% -4%
Non-GAAP net income (loss)
per share reconciliation:
Net loss per basic and
diluted share $ (0.16) (0.15) $ (0.34) $ (0.35)
Add back:
Non-cash stock-based
compensation 0.08 0.12 0.16 0.21
Non-cash amortization of
acquired intangible
assets 0.02 0.02 0.04 0.04
Acquisition related
expenses - 0.01 - 0.02
Patent litigation and
settlement costs 0.01 - 0.02 0.02
Acquisition-related
adjustment - (0.05) - (0.05)
Restructuring 0.01 0.01 0.04 0.02
Interest expense on
convertible notes 0.02 0.02 0.04 0.04
Amortization of
convertible note
issuance cost - - - -
Tax benefit from release
of valuation allowance - - - -
--------- --------- --------- ---------
Non-GAAP net income (loss)
per basic share $ (0.02) $ (0.02) $ (0.04) $ (0.05)
--------- --------- --------- ---------
Non-GAAP net income (loss)
per diluted share $ (0.02) $ (0.02) $ (0.04) $ (0.05)
--------- --------- --------- ---------
Basic and fully diluted
shares reconciliation:
Basic shares 37,813 35,235 37,478 34,674
--------- --------- --------- ---------
Add back:
Weighted average effect
of dilutive securities - - - -
--------- --------- --------- ---------
Diluted shares 37,813 35,235 37,478 34,674
--------- --------- --------- ---------
CALLIDUS SOFTWARE INC.
FINANCIAL OUTLOOK
(In thousands)
(unaudited)
The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because of the company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.
Three months ended
September 30, 2013
--------------------------------------------
GAAP Non-GAAP (a)
--------------------- ---------------------
Total Revenue $26,000 - $27,000 $26,000 - $27,000
Operating Expenses $16,600 - $17,600 $13,600 - $14,600
Twelve months ended
December 31, 2013
--------------------------------------------
GAAP Non-GAAP (b)
--------------------- ---------------------
Total Revenue $106,000 - $109,000 $106,000 - $109,000
Operating Income (Loss) ($13,000) - ($14,000) $3,500 - $4,500
(a) Estimated non-GAAP amounts above for the three months ending September
30, 2013, reflect adjustments that exclude the estimated amortization
of acquired intangible assets of approximately $290 - $320 thousand,
estimated stock-based compensation expense of approximately $2.2 - $2.4
million, patent litigation and settlement costs of approximately $350 -
$375 thousand, and restructuring expense of approximately $125 - $150
thousand.
(b) Estimated non-GAAP amounts above for the twelve months ending December
31, 2013, reflect adjustments that exclude the estimated amortization
of acquired intangible assets of approximately $3.3 - 3.4 million,
estimated stock-based compensation expense of approximately $11.0 -
$11.5 million, patent litigation and settlement costs of approximately
$1.35 - $1.45 million, and restructuring expense of approximately $1.7
- $1.9 million.
Investor Relations Contact Cameron Jung and Steve Pasko Market Street Partners (415) 445-3238 or (415) 445-3232 cald@marketstreetpartners.com Press Contact: Giles House CallidusCloud 925-251-2200 pr@calliduscloud.com