Delaware
|
000-50463
|
77-0438629
|
||
(State or other jurisdiction
of incorporation)
|
(Commission
file number)
|
(I.R.S. Employer
Identification No.)
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
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
|
Item 9.01.
|
Financial Statements and Exhibits.
|
(d)
|
Exhibits
|
Exhibit
Number
|
|
Description
|
|
Press Release of Callidus Software Inc. dated August 2, 2016
|
|
|
|
|
|
|
|
CALLIDUS SOFTWARE INC.
|
|
|
|
|
Date: August 2, 2016
|
|
By:
|
/s/ Bob L. Corey
|
|
|
|
Bob L. Corey
|
|
|
|
Executive Vice President, Chief Financial Officer
|
Exhibit
Number
|
|
Description
|
|
Press Release of Callidus Software Inc. dated August 2, 2016
|
- | Total Q2 Revenue of $49.8 Million |
- | Operating Cash Flow of $6.9 Million, up from $2.6 Million in Q2 2015 |
- | Closed Two Multi-Year Eight-Figure Deals Based on Total Contract Value |
· | Recurring revenue gross margin was 74%, consistent with the corresponding period in the prior year. |
· | Overall gross margin was 63%, compared to 62% for the same quarter in the prior year. |
· | Operating loss was $5.0 million compared to $4.3 million for the same quarter in the prior year. |
· | Net loss was $5.7 million, or ($0.10) on a per share basis, compared to net loss of $4.7 million, or ($0.08) on a per share basis for the same quarter in the prior year. |
· | Recurring revenue gross margin was 77%, consistent with the corresponding period in the prior year. |
· | Overall gross margin was 66%, compared to 65% for the same quarter in the prior year. |
· | Operating income was $4.0 million, compared to $2.0 million for the same quarter in the prior year. |
· | Net income was $3.4 million, or $0.06 per fully diluted share, compared to $1.6 million, or $0.03 per fully diluted share, for the same quarter in the prior year. |
|
●
|
CallidusCloud had record attendance at its C3 user conference in Las Vegas where customers and partners experienced a roadmap full of new innovations.
|
|
●
|
CallidusCloud received the Grand Stevie Award for 'Organization of the Year' in the world's premier business awards, the American Business Awards. CallidusCloud also received an additional 36 awards for its products and teams.
|
|
●
|
CallidusCloud acquired certain assets of ViewCentral LLC, a leading provider in the extended enterprise learning market to augment the Litmos mobile learning platform with a full revenue management and e-commerce platform designed for selling and optimizing profitable training for customers and channels.
|
|
●
|
CallidusCloud acquired certain assets of Badgeville, Inc., a leading technology provider in enterprise gamification and digital motivation. The Badgeville platform enhances audience engagement and personal reputation for industry leaders.
|
CALLIDUS SOFTWARE INC.
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Revenue:
|
||||||||||||||||
Recurring
|
$
|
39,290
|
$
|
30,713
|
$
|
76,896
|
$
|
59,606
|
||||||||
Services and license
|
10,461
|
10,901
|
21,233
|
21,753
|
||||||||||||
Total revenue
|
49,751
|
41,614
|
98,129
|
81,359
|
||||||||||||
Cost of revenue:
|
||||||||||||||||
Recurring
|
10,137
|
7,841
|
20,099
|
16,199
|
||||||||||||
Services and license
|
8,332
|
8,062
|
16,593
|
15,723
|
||||||||||||
Total cost of revenue
|
18,469
|
15,903
|
36,692
|
31,922
|
||||||||||||
Gross profit
|
31,282
|
25,711
|
61,437
|
49,437
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
19,682
|
14,796
|
38,585
|
28,522
|
||||||||||||
Research and development
|
7,248
|
6,002
|
14,490
|
12,040
|
||||||||||||
General and administrative
|
9,296
|
9,112
|
17,551
|
16,530
|
||||||||||||
Restructuring and other
|
86
|
118
|
402
|
234
|
||||||||||||
Total operating expenses
|
36,312
|
30,028
|
71,028
|
57,326
|
||||||||||||
Operating loss
|
(5,030
|
)
|
(4,317
|
)
|
(9,591
|
)
|
(7,889
|
)
|
||||||||
Interest income and other income (expense), net
|
(277
|
)
|
(186
|
)
|
(52
|
)
|
(376
|
)
|
||||||||
Interest expense
|
(39
|
)
|
(56
|
)
|
(82
|
)
|
(123
|
)
|
||||||||
Loss before provision for income taxes
|
(5,346
|
)
|
(4,559
|
)
|
(9,725
|
)
|
(8,388
|
)
|
||||||||
Provision for income taxes
|
341
|
165
|
497
|
379
|
||||||||||||
Net loss
|
$
|
(5,687
|
)
|
$
|
(4,724
|
)
|
$
|
(10,222
|
)
|
$
|
(8,767
|
)
|
||||
Net loss per share
|
||||||||||||||||
Basic and Diluted
|
$
|
(0.10
|
)
|
$
|
(0.08
|
)
|
$
|
(0.18
|
)
|
$
|
(0.16
|
)
|
||||
Weighted average shares used in computing net loss per share:
|
||||||||||||||||
Basic and Diluted
|
57,098
|
55,595
|
56,894
|
53,166
|
CALLIDUS SOFTWARE INC.
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(In thousands)
|
||||||||
(unaudited)
|
||||||||
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
74,331
|
$
|
77,232
|
||||
Short-term investments
|
19,678
|
19,977
|
||||||
Accounts receivable, net
|
45,983
|
43,461
|
||||||
Prepaid and other current assets
|
12,169
|
11,385
|
||||||
Total current assets
|
152,161
|
152,055
|
||||||
Property and equipment, net
|
25,880
|
20,540
|
||||||
Goodwill
|
57,226
|
50,146
|
||||||
Intangible assets, net
|
19,368
|
14,885
|
||||||
Deposits and other assets
|
3,731
|
4,016
|
||||||
Total assets
|
$
|
258,366
|
$
|
241,642
|
CALLIDUS SOFTWARE INC.
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(In thousands)
|
||||||||
(unaudited)
|
||||||||
Six Months Ended June 30,
|
||||||||
2016
|
2015
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(10,222
|
)
|
$
|
(8,767
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation expense
|
3,582
|
2,939
|
||||||
Amortization of intangible assets
|
2,835
|
2,547
|
||||||
Provision for doubtful accounts
|
891
|
676
|
||||||
Stock-based compensation
|
14,065
|
9,909
|
||||||
Deferred income taxes
|
51
|
(235
|
)
|
|||||
Excess tax benefits from stock-based compensation
|
(11
|
)
|
-
|
|||||
Loss on disposal of property and equipment
|
4
|
6
|
||||||
Net amortization on investments
|
91
|
20
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(3,268
|
)
|
(1,437
|
)
|
||||
Prepaid and other current assets
|
(846
|
)
|
941
|
|||||
Other noncurrent assets
|
251
|
549
|
||||||
Accounts payable
|
462
|
915
|
||||||
Accrued expenses and other liabilities
|
1,412
|
729
|
||||||
Accrued payroll and related expenses
|
(1,996
|
)
|
(946
|
)
|
||||
Accrued restructuring and other expenses
|
(285
|
)
|
(32
|
)
|
||||
Deferred revenue
|
5,959
|
2,837
|
||||||
Net cash provided by operating activities
|
12,975
|
10,651
|
||||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchases of investments
|
(8,483
|
)
|
(17,591
|
)
|
||||
Proceeds from maturities and sale of investments
|
8,751
|
351
|
||||||
Purchases of property and equipment (net)
|
(3,924
|
)
|
(8,285
|
)
|
||||
Purchases of intangible assets
|
(444
|
)
|
(270
|
)
|
||||
Acquisitions, net of cash acquired
|
(11,500
|
)
|
-
|
|||||
Net cash (used in) investing activities
|
(15,600
|
)
|
(25,795
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from follow-on offering, net of issuance costs
|
-
|
64,372
|
||||||
Proceeds from issuance of common stock
|
1,951
|
2,229
|
||||||
Restricted stock units acquired to settle employee withholding liability
|
(1,821
|
)
|
(2,356
|
)
|
||||
Excess tax benefits from stock-based compensation
|
11
|
33
|
||||||
Repayment of line of credit
|
-
|
(10,481
|
)
|
|||||
Payment of consideration related to acquisitions
|
(104
|
)
|
(226
|
)
|
||||
Payment of principal under capital leases
|
-
|
(333
|
)
|
|||||
Net cash provided by financing activities
|
37
|
53,238
|
||||||
Effect of exchange rates on cash and cash equivalents
|
(313
|
)
|
(22
|
)
|
||||
Net (decrease) increase in cash and cash equivalents
|
(2,901
|
)
|
38,072
|
|||||
Cash and cash equivalents at beginning of period
|
77,232
|
34,200
|
||||||
Cash and cash equivalents at end of period
|
$
|
74,331
|
$
|
72,272
|
CALLIDUS SOFTWARE INC.
|
||||||||||||||||
GAAP TO NON-GAAP ADJUSTMENT SUMMARY
|
||||||||||||||||
(In thousands)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
GAAP to Non-GAAP adjustments include stock-based compensation, amortization of acquired intangible assets, patent litigation and settlement costs and estimates, acquisition-related costs, tax impact from acquisitions, restructuring and other expenses as follows:
|
||||||||||||||||
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Cost of revenues:
|
||||||||||||||||
Recurring
|
$
|
1,159
|
$
|
887
|
$
|
2,322
|
$
|
1,805
|
||||||||
Services and license
|
524
|
247
|
1,036
|
599
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Sales and marketing
|
2,491
|
1,486
|
4,941
|
3,269
|
||||||||||||
Research and development
|
1,171
|
650
|
2,341
|
1,447
|
||||||||||||
General and administrative
|
3,602
|
2,922
|
5,833
|
4,984
|
||||||||||||
Restructuring and other
|
86
|
118
|
402
|
234
|
||||||||||||
Taxes
|
60
|
-
|
60
|
-
|
||||||||||||
Total
|
$
|
9,093
|
$
|
6,310
|
$
|
16,935
|
$
|
12,338
|
CALLIDUS SOFTWARE INC.
|
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
(In thousands, except for percentages)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Non-GAAP gross profit reconciliation:
|
||||||||||||||||
Gross profit
|
$
|
31,282
|
$
|
25,711
|
$
|
61,437
|
$
|
49,437
|
||||||||
Gross margin
|
63
|
%
|
62
|
%
|
63
|
%
|
61
|
%
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
977
|
486
|
1,998
|
1,115
|
||||||||||||
Non-cash amortization of acquired
|
||||||||||||||||
intangible assets
|
706
|
649
|
1,360
|
1,290
|
||||||||||||
Non-GAAP gross profit
|
$
|
32,965
|
$
|
26,846
|
$
|
64,795
|
$
|
51,842
|
||||||||
Non-GAAP gross margin
|
66
|
%
|
65
|
%
|
66
|
%
|
64
|
%
|
||||||||
Non-GAAP recurring revenue gross profit reconciliation:
|
||||||||||||||||
Recurring revenue gross profit
|
$
|
29,153
|
$
|
22,872
|
$
|
56,797
|
$
|
43,407
|
||||||||
Recurring revenue gross margin
|
74
|
%
|
74
|
%
|
74
|
%
|
73
|
%
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
453
|
249
|
962
|
536
|
||||||||||||
Non-cash amortization of acquired
|
||||||||||||||||
intangible assets
|
706
|
638
|
1,360
|
1,269
|
||||||||||||
Non-GAAP recurring revenue gross profit
|
$
|
30,312
|
$
|
23,759
|
$
|
59,119
|
$
|
45,212
|
||||||||
Non-GAAP recurring revenue gross margin
|
77
|
%
|
77
|
%
|
77
|
%
|
76
|
%
|
||||||||
Non-GAAP operating expense reconciliation:
|
||||||||||||||||
Operating expenses
|
$
|
36,312
|
$
|
30,028
|
$
|
71,028
|
$
|
57,326
|
||||||||
Operating expenses, as a % of total
|
||||||||||||||||
revenues
|
73
|
%
|
72
|
%
|
72
|
%
|
70
|
%
|
||||||||
Subtract:
|
||||||||||||||||
Non-cash stock-based compensation
|
(6,635
|
)
|
(4,606
|
)
|
(12,067
|
)
|
(8,793
|
)
|
||||||||
Non-cash amortization of acquired
|
||||||||||||||||
intangible assets
|
(429
|
)
|
(423
|
)
|
(807
|
)
|
(841
|
)
|
||||||||
Patent litigation and settlement costs
|
(29
|
)
|
(28
|
)
|
(57
|
)
|
(65
|
)
|
||||||||
Acquisition costs
|
(171
|
)
|
-
|
(184
|
)
|
-
|
||||||||||
Restructuring and other
|
(86
|
)
|
(118
|
)
|
(402
|
)
|
(234
|
)
|
||||||||
Non-GAAP operating expenses
|
$
|
28,962
|
$
|
24,853
|
$
|
57,511
|
$
|
47,393
|
||||||||
Non-GAAP operating expenses, as a %
|
||||||||||||||||
of total revenues
|
58
|
%
|
60
|
%
|
59
|
%
|
58
|
%
|
CALLIDUS SOFTWARE INC.
|
||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
(In thousands, except for percentages and per share data)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Non-GAAP operating income (loss) reconciliation:
|
||||||||||||||||
Operating loss
|
$
|
(5,030
|
)
|
$
|
(4,317
|
)
|
$
|
(9,591
|
)
|
$
|
(7,889
|
)
|
||||
Operating loss, as a % of total
|
||||||||||||||||
revenues
|
(10
|
)%
|
(10
|
)%
|
(10
|
)%
|
(10
|
)%
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
7,612
|
5,092
|
14,065
|
9,908
|
||||||||||||
Non-cash amortization of acquired
|
||||||||||||||||
intangible assets
|
1,135
|
1,072
|
2,167
|
2,131
|
||||||||||||
Patent litigation and settlement costs
|
29
|
28
|
57
|
65
|
||||||||||||
Acquisition costs
|
171
|
-
|
184
|
-
|
||||||||||||
Restructuring and other
|
86
|
118
|
402
|
234
|
||||||||||||
Non-GAAP operating income
|
$
|
4,003
|
$
|
1,992
|
$
|
7,284
|
$
|
4,449
|
||||||||
Non-GAAP operating income as a %
|
||||||||||||||||
of total revenues
|
8
|
%
|
5
|
%
|
7
|
%
|
5
|
%
|
||||||||
Non-GAAP net income (loss) reconciliation:
|
||||||||||||||||
Net loss
|
$
|
(5,687
|
)
|
$
|
(4,724
|
)
|
$
|
(10,222
|
)
|
$
|
(8,767
|
)
|
||||
Net loss, as a % of total
|
||||||||||||||||
revenues
|
(11
|
)%
|
(11
|
)%
|
(10
|
)%
|
(11
|
)%
|
||||||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
7,612
|
5,092
|
14,065
|
9,908
|
||||||||||||
Non-cash amortization of acquired
|
||||||||||||||||
intangible assets
|
1,135
|
1,072
|
2,167
|
2,131
|
||||||||||||
Patent litigation and settlement costs
|
29
|
28
|
57
|
65
|
||||||||||||
Acquisition costs
|
171
|
-
|
184
|
-
|
||||||||||||
Restructuring and other
|
86
|
118
|
402
|
234
|
||||||||||||
Taxes
|
60
|
-
|
60
|
-
|
||||||||||||
Non-GAAP net income
|
$
|
3,406
|
$
|
1,585
|
$
|
6,713
|
$
|
3,571
|
||||||||
Non-GAAP net income as a %
|
||||||||||||||||
of total revenues
|
7
|
%
|
4
|
%
|
7
|
%
|
4
|
%
|
||||||||
Non-GAAP net income (loss) per share reconciliation:
|
||||||||||||||||
Net loss per basic and diluted share
|
$
|
(0.10
|
)
|
$
|
(0.08
|
)
|
$
|
(0.18
|
)
|
$
|
(0.16
|
)
|
||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
0.13
|
0.09
|
0.24
|
0.19
|
||||||||||||
Non-cash amortization of acquired
|
||||||||||||||||
intangible assets
|
0.02
|
0.02
|
0.04
|
0.04
|
||||||||||||
Patent litigation and settlement costs
|
-
|
-
|
-
|
-
|
||||||||||||
Acquisition costs
|
0.01
|
-
|
-
|
-
|
||||||||||||
Restructuring and other
|
-
|
-
|
0.01
|
0.01
|
||||||||||||
Taxes
|
-
|
-
|
-
|
-
|
||||||||||||
Non-GAAP net income per diluted share
|
$
|
0.06
|
$
|
0.03
|
$
|
0.11
|
$
|
0.07
|
||||||||
Basic and fully diluted shares reconciliation:
|
||||||||||||||||
Basic shares
|
57,098
|
55,595
|
56,894
|
53,166
|
||||||||||||
Add back:
|
||||||||||||||||
Weighted average effect of dilutive securities
|
2,002
|
1,225
|
1,800
|
1,620
|
||||||||||||
Diluted shares
|
59,100
|
56,820
|
58,694
|
54,786
|
RECONCILIATION OF GAAP TO NON-GAAP FORWARD LOOKING GUIDANCE MEASURES
|
||||||||||||||||
(In thousands, except for per share data)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
September 30, 2016
|
December 31, 2016
|
|||||||||||||||
From
|
To
|
From
|
To
|
|||||||||||||
Non-GAAP operating income (loss) reconciliation:
|
||||||||||||||||
GAAP operating loss
|
$
|
(3,800
|
)
|
$
|
(4,300
|
)
|
$
|
(16,300
|
)
|
$
|
(17,300
|
)
|
||||
Add back:
|
||||||||||||||||
Non-cash stock-based compensation
|
6,600
|
7,100
|
27,000
|
28,000
|
||||||||||||
Non-cash amortization of acquired
|
||||||||||||||||
intangible assets
|
1,400
|
1,800
|
5,100
|
5,900
|
||||||||||||
Acquisition, patent litgation, restructuring and other costs
|
300
|
900
|
1,200
|
2,400
|
||||||||||||
Non-GAAP operating income
|
$
|
4,500
|
$
|
5,500
|
$
|
17,000
|
$
|
19,000
|
||||||||
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
September 30, 2016
|
December 31, 2016
|
|||||||||||||||
Non-GAAP net income (loss) per share reconciliation:
|
From
|
To
|
From
|
To
|
||||||||||||
GAAP net loss per basic and diluted share
|
$
|
(0.07
|
)
|
$
|
(0.08
|
)
|
$
|
(0.31
|
)
|
$
|
(0.33
|
)
|
||||
Non-cash stock-based compensation
|
0.11
|
0.12
|
0.45
|
0.46
|
||||||||||||
Non-cash amortization of acquired
|
||||||||||||||||
intangible assets
|
0.02
|
0.03
|
0.08
|
0.10
|
||||||||||||
Acquisition, patent litgation, restructuring and other
|
0.01
|
0.02
|
0.02
|
0.04
|
||||||||||||
Diluted share impact on GAAP earnings
|
-
|
-
|
0.01
|
0.02
|
||||||||||||
Non-GAAP net income per diluted share
|
$
|
0.07
|
$
|
0.09
|
$
|
0.25
|
$
|
0.29
|
||||||||
Shares used to calculate guidance:
|
||||||||||||||||
Basic shares
|
57,000
|
57,500
|
57,000
|
58,000
|
||||||||||||
Diluted shares
|
59,000
|
59,500
|
59,500
|
60,500
|