EX-99.01 2 d811358dex9901.htm EX-99.01 EX-99.01

Exhibit 99.01

 

LOGO

Vocera Reports $23.1M in Q3 Revenue; Raises Low-End of Full-Year Guidance

 

    Revenue of $23.1M; FY 2014 revenue expectations of $92-$95M

 

    Non-GAAP EPS of ($0.16); GAAP EPS of ($0.31)

 

    Cash and short-term investments of $116.8M

 

    Adjusted EBITDA of ($3.5M)

SAN JOSE, Calif. — October 30, 2014 — Vocera Communications, Inc. (NYSE: VCRA), today reported revenue of $23.1 million, a GAAP net loss per share of ($0.31) and a non-GAAP net loss per share of ($0.16) for the third quarter of 2014. The company also raised the low end of its full-year 2014 revenue guidance to a range of $92 to $95 million.

“Third quarter results reflect good sequential progress in bookings and backlog from Q2 and growing momentum as we finish the year,” noted Brent Lang, Vocera’s president and CEO. “We achieved revenue above our guidance, and maintained a software maintenance renewal rate above 98%. Despite challenging spending conditions in U.S. hospitals, we continue to expand and strengthen our market position.”

Third Quarter 2014 Results

Revenue for the third quarter of 2014 was $23.1 million, compared to $26.1 million in the third quarter of last year. Total revenue was comprised of $12.0 million of product revenue and $11.1 million of services revenue.

Product revenue decreased 23% year-over-year, and was comprised of $8.8 million of device revenue and $3.3 million of software revenue.

On a sequential basis, third quarter device revenue declined 2% and software revenue increased 12% from the second quarter of 2014.

Third quarter services revenue increased 7% from the third quarter of 2013, and was comprised of $8.9 million of software maintenance and support and $2.2 million of professional services. The company continued to experience high software maintenance renewal rates, renewing more than 98% of the eligible U.S. healthcare contracts in the third quarter.

GAAP gross margin was 58.5%, compared to 62.4% in the third quarter of last year. Non-GAAP gross margin was 60.4%, versus 63.8% in the third quarter of 2013.

Non-GAAP product gross margin for the third quarter 2014 was 62.3%, versus 65.0% in the third quarter of last year. Non-GAAP services gross margin was 58.3%, versus 62.0% in the third quarter of 2013.

Total non-GAAP gross margin declined due principally to lower product revenue where some of our costs are fixed, as well as some one-time charges for obsolete materials. Gross margin is expected to improve in the fourth quarter.


Third quarter 2014 GAAP operating expense was $21.3 million, compared to $19.7 million in the third quarter of last year. Non-GAAP operating expense was $17.9 million, compared to $17.5 million in the third quarter of last year, and $18.5 million in the second quarter of 2014. Non-GAAP operating expense decreased sequentially due to tighter expense management.

GAAP net loss for the quarter was ($7.9) million, or ($0.31) per share, compared to ($3.1) million, or ($0.13) per share in in the year-ago quarter. Non-GAAP net loss for the third quarter 2014 was ($4.1) million, or ($0.16) per share. Non-GAAP net loss for the third quarter of 2013 was ($0.5) million, or ($0.02) per share.

Adjusted EBITDA for the third quarter was ($3.5) million, versus ($0.2) million in the third quarter 2013.

A reconciliation of non-GAAP to GAAP financial measures is included in the financial schedules, linked below.

As of September 30, 2014, the company had cash, cash equivalents and short-term investments of $116.8 million, compared to $120.6 million at June 30, 2014, and no debt. Deferred revenue was $32.2 million at September 30 2014, compared to $30.0 million at September 30, 2013 and $31.5 million at June 30, 2014.

2014 Guidance

For the full year 2014, the company expects revenue between $92 and $95 million and a GAAP loss per share between ($1.23) and ($1.12).

Non-GAAP loss per share is expected to be to be between ($0.68) and ($0.57), and non-GAAP Adjusted EBITDA to be between ($14.9) million and ($12.0) million. A reconciliation of GAAP to non-GAAP measures, and fourth quarter guidance, are included in the attached statements.

Link to third quarter 2014 financial statements, guidance and reconciliation to GAAP

Conference Call Information

The Company will host a conference call at 5:00 p.m. Eastern Time, 2:00 p.m. Pacific, today, October 30, 2014, to discuss the company’s results.

Investors may access a free, live webcast of the call through the Investors section of the company’s website at investors.vocera.com

The call also can be accessed by dialing 800-510-0146, or 617-614-3449 for international callers, and using the access code 7730 2940.

A webcast replay of the call will be archived on the company’s website.

Forward Looking Statements

Statements in this press release that are not strictly historical in nature are forward-looking statements within the meaning of the U.S. federal securities laws, including statements regarding future events, such as our expected operating results for the full year and fourth quarter of 2014, the future financial performance of our company, the introduction of new


products and the effect macroeconomic conditions affecting the health care industry will have on our business and results of operations. These forward-looking statements are based on limited information currently available to us and our management`s expectations, which are inherently subject to change and involve a number of risks and uncertainties. Actual events or results may differ materially from those in any forward-looking statement due to various factors, including but not limited to, the effects of the Patient Protection and Affordable Care Act of 2010; changes in regulations in the U.S. and other countries; the effects on government and commercial hospital customers of the federal budget, the federal budget sequester, and budgetary uncertainty; changes in healthcare insurance coverage and consumers’ utilization of healthcare and hospital services; our ability to maintain profitability; the demand for our various solutions in the healthcare and other markets; our lengthy and unpredictable sales cycle; our ability to offer high-quality services and support for our solutions; to acquire the sole and limited source hardware and software components of our solutions; to obtain the required capacity and product quality from our contract manufacturer; to develop and introduce new solutions and features to existing solutions and to manage our growth; and the other factors described in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as our other filings with the SEC. Our filings with the Securities and Exchange Commission (“SEC”) are available on the Investors section of our company`s web site at www.vocera.com. The financial and other information contained in this press release should be read in conjunction with the financial statements and notes thereto included in our filings with the SEC. Our operating results for the third quarter of 2014 are not necessarily indicative of our operating results for any future periods. This press release speaks only as of its date. We assume no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual events or results could differ materially from those anticipated in forward-looking statements.

Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). Our management evaluates the company’s results and makes operating decisions using various GAAP and non-GAAP measures. In addition to our GAAP results, we also consider non-GAAP gross margin for products and for services, non-GAAP net income/(loss), non-GAAP earnings/(loss) per diluted share and non-GAAP operating expense. We also present Adjusted EBITDA, a non-GAAP measure that we reconcile to net income/(loss). These non-GAAP measures should not be considered as a substitute for the corresponding financial measure derived in accordance with GAAP. We present the non-GAAP measures because we consider them to be important supplemental information for our investors for analyzing our performance, core operating results and trends. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures included with this press release.

Our non-GAAP gross margin, non-GAAP net income/(loss), non-GAAP earnings/(loss) per diluted share, non-GAAP operating expense, and Adjusted EBITDA are exclusive of certain items to facilitate management’s review of the comparability of our core operating results on a period to period basis because such items are not related to our ongoing core operating results as viewed by management. We define our “core operating results” as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items:


a) Stock-based compensation expense impact. We recognize equity plan-related compensation expenses, which represent the fair value of all share-based payments to employees, including grants of employee stock options as non-GAAP adjustments in each period.

b) Amortization of acquired intangibles. We acquired certain companies in 2010 and 2014, and booked intangible assets related to these acquisitions. The amortization of these acquired intangible assets is excluded from non-GAAP net income because it is not related to ongoing controllable management decisions and because it is non-cash in nature.

c) Securities litigation. In August 2013, Vocera and other related parties were named as defendants in two purported securities class actions, alleging claims for allegedly misleading statements regarding our business and financial results. As the cases progress, we may encounter more significant legal costs for our defense. Our projections of net income/(loss), and non-GAAP earnings/(loss) per diluted share for the full year and fourth quarter 2014 do not give effect to any such future legal expenses because we do not regard them as reflective of the costs we incur to operate our business. For the same reason, third quarter 2014 non-GAAP results exclude these securities litigation expenses.

d) Acquisition related expenses. In addition to the amortization of acquired intangibles mentioned above, effective with the guidance included in this release, we will also adjust for certain acquisition-related expenses that we may incur including (i) professional service fees and (ii) transition costs. Professional service fees include third party costs related to the acquisition, such as due diligence costs, accounting fees, legal fees, valuation services and commissions, if any. Transition costs include retention payments, transitional employee costs and earn-out payments treated as compensation expense. We consider such costs and adjustments as highly variable in amount and frequency, being significantly impacted by the timing and size of any acquisitions. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management can better focus on the organic continuing operations of our baseline and acquired businesses.

(e) Restructuring costs. We exclude restructuring costs from non-GAAP measures because we do not regard these limited-term or one-time costs as reflective of normal costs we incur to operate our business. These are defined in U.S. GAAP to include one-time employee termination benefits, contract termination costs, and other associated costs, with respect to exit or disposal activities.

Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Vocera’s control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock option grants.


We believe that the presentation of these non-GAAP financial measures is warranted for several reasons:

1) Such non-GAAP financial measures provide an additional analytical tool for understanding our financial performance by excluding the impact of items which may obscure trends in the core operating results of the business;

2) These non-GAAP financial measures facilitate comparisons to the operating results of other companies commonly compared to us, which use similar financial measures to supplement their GAAP results, thus enhancing the perspective of investors who wish to utilize such comparisons in their analysis of our performance; and

3) These non-GAAP financial measures are employed by our management in their own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting.

Set forth below are additional reasons why share-based compensation expense is excluded from our non-GAAP financial measures:

i) While share-based compensation constitutes one of our ongoing and recurring expenses, it is not an expense that requires cash settlement by us. We therefore exclude these charges for purposes of evaluating core operating results. Thus, our non-GAAP measurements are presented exclusive of stock-based compensation expense to assist management and investors in evaluating our core operating results.

ii) We present share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation are dependent upon the trading price of our common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results.

As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for our GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:

 

    Our stock option and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in our GAAP results for the foreseeable future; and

 

    Other companies may calculate non-GAAP financial measures differently than us, limiting their usefulness as a comparative measure.

Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between our non-GAAP and GAAP financial results is set forth in the financial tables referred to above, and linked to, this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results for the respective periods.


About Vocera

Vocera empowers integrated, intelligent communication in healthcare, hospitality, energy and other mission-critical mobile environments. Widely recognized for developing smarter ways to instantly communicate and collaborate, Vocera offers a comprehensive portfolio of solutions that improve efficiency throughout organizations. The Vocera Communication System is installed in more than 1,200 organizations worldwide. The Vocera portfolio improves workflow, quality, safety and outcomes while elevating the customer and patient experience. In addition to providing innovative technology, Vocera drives thought leadership and new standards to improve patient experience via its research collaborative, the Experience Innovation Network. Vocera is headquartered in San Jose, Calif., with offices in San Francisco, Tennessee, Canada, India, United Arab Emirates, and the United Kingdom. For more information, please visit www.vocera.com and @VoceraComm on Twitter.

The Vocera logo is a trademark of Vocera Communications, Inc. Vocera® is a trademark of Vocera Communications, Inc. registered in the United States and other jurisdictions.

Contacts:

 

Investors:    Media:   
Brad Samson    Elaine Wu    Claire Baki
Vocera    Vocera    MSLGROUP
408.882.5737    408.882.5784    415.512.0770
bsamson@vocera.com    ewu@vocera.com    Vocera@mslgroup.com

 


Vocera Communications, Inc.

Condensed consolidated statements of operations

(Unaudited)

 

     Three months ended September 30     Nine months ended September 30  

(in thousands, except per share amounts)

   2014     2013     2014     2013  

Revenue

        

Product

   $ 12,020      $ 15,666      $ 38,059      $ 43,966   

Service

     11,104        10,401        32,760        29,810   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     23,124        26,067        70,819        73,776   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue

        

Product

     4,706        5,635        14,117        15,581   

Service

     4,883        4,155        14,225        12,409   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     9,589        9,790        28,342        27,990   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     13,535        16,277        42,477        45,786   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

        

Research and development

     5,113        3,798        13,541        10,830   

Sales and marketing

     11,942        11,791        37,299        32,702   

General and administrative

     4,237        4,073        12,790        11,000   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     21,292        19,662        63,630        54,532   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (7,757     (3,385     (21,153     (8,746

Interest income

     83        87        268        170   

Other (expense) income, net

     (132     76        (178     (55
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (7,806     (3,222     (21,063     (8,631

(Provision for) benefit from income taxes

     (85     120        (225     8   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (7,891   $ (3,102   $ (21,288   $ (8,623
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share:

        

Basic and diluted

     ($0.31     ($0.13     ($0.84     ($0.35
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares used to compute net loss per share

        

Basic and diluted

     25,432        24,747        25,243        24,530   
  

 

 

   

 

 

   

 

 

   

 

 

 


Vocera Communications, Inc.

Condensed consolidated balance sheets

(Unaudited)

 

     As of  
     September 30,      December 31,  

(in thousands)

   2014      2013  

Assets

     

Current assets

     

Cash and cash equivalents

   $ 16,184       $ 39,652   

Short term investments

     100,647         88,024   

Accounts receivable, net

     15,962         23,543   

Other receivables

     867         882   

Inventories

     4,230         5,665   

Prepaid expenses and other current assets

     2,675         1,892   
  

 

 

    

 

 

 

Total current assets

     140,565         159,658   

Property and equipment, net

     5,191         5,365   

Intangible assets, net

     3,396         1,544   

Goodwill

     9,988         5,575   

Other long-term assets

     889         965   
  

 

 

    

 

 

 

Total assets

   $ 160,029       $ 173,107   
  

 

 

    

 

 

 

Liabilities and stockholders’ equity

     

Current liabilities

     

Accounts payable

     2,504         3,531   

Accrued payroll and other current liabilities

     10,381         9,841   

Deferred revenue, current

     25,712         26,133   
  

 

 

    

 

 

 

Total current liabilities

     38,597         39,505   

Deferred revenue, long-term

     6,479         6,398   

Other long-term liabilities

     1,782         1,641   
  

 

 

    

 

 

 

Total liabilities

     46,858         47,544   

Stockholders’ equity

     113,171         125,563   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 160,029       $ 173,107   
  

 

 

    

 

 

 


Vocera Communications, Inc.

Reconciliation of GAAP to Non-GAAP

(In thousands, except per share data, unaudited)

 

     Three months ended September 30,  
     2014     2013  
     Net
income
(loss)
    Diluted
shares
     Earnings
(loss) per
share-
diluted
    Net income
(loss)
    Diluted
shares
     Earnings
(loss) per
share-
diluted
 

GAAP

   $ (7,891   $ 25,432         ($0.31   $ (3,102     24,747         ($0.13

Non-GAAP Adjustments:

              

Stock compensation (a)

              

Gross Margin

     320             272        

Operating Expenses

     2,465             2,121        

Intangible amortization (b)

              

Gross Margin

     110             92        

Operating Expenses

     98             89        

Acquisition expense—(c)

              

Gross Margin

              

Operating Expenses

     632             —          

Litigation expense (d)

              

Gross Margin

              

Operating Expenses

     204             —          
  

 

 

   

 

 

      

 

 

   

 

 

    

Total adjustments

     3,829        —           0.15        2,574        —           0.11   

Non-GAAP

   $ (4,062     25,432       $ (0.16   $ (528     24,747       $ (0.02
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) This adjustment reflects the accounting impact of non-cash stock-based compensation expense
(b) This adjustment reflects the accounting impact of acquisitions in 2010 and 2014 in non-cash expense.
(c) This operating expense adjustment reflects the accounting impact of acquisitions, including for Q3 2014 $533K of consideration deemed to be compensation.
(d) This operating expense adjustment reflects class action litigation expenses from the August 2013 lawsuit.

Vocera Communications, Inc.

Reconciliation of GAAP to Non-GAAP

(In thousands, except per share data, unaudited)

 

 

     Nine months ended September 30,  
     2014     2013  
     Net
income
(loss)
    Diluted
shares
     Earnings
(loss) per
share-
diluted
    Net income
(loss)
    Diluted
shares
     Earnings
(loss) per
share-
diluted
 

GAAP

   $ (21,288     25,243         ($0.84   $ (8,623     24,530         ($0.35

Non-GAAP Adjustments:

              

Stock compensation (a)

              

Gross Margin

     857             707        

Operating Expenses

     7,303             5,406        

Intangible amortization (b)

              

Gross Margin

     319             276        

Operating Expenses

     270             268        

Acquisition expense—(c)

              

Gross Margin

              

Operating Expenses

     632             —          

Litigation expense (d)

              

Gross Margin

              

Operating Expenses

     204             —          
  

 

 

   

 

 

      

 

 

   

 

 

    

Total adjustments

     9,585        —           0.38        6,657        —           0.27   

Non-GAAP

   $ (11,703     25,243       $ (0.46   $ (1,966     24,530       $ (0.08
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) This adjustment reflects the accounting impact of non-cash stock-based compensation expense
(b) This adjustment reflects the accounting impact of acquisitions in 2010 and 2014 in non-cash expense.
(c) This operating expense adjustment reflects the accounting impact of acquisitions, including for Q3 2014 $533K of consideration deemed to be compensation.
(d) This operating expense adjustment reflects class action litigation expenses from the August 2013 lawsuit.


Vocera Communications, Inc.

Non-GAAP income adjusting items

(In thousands, unaudited)

 

    Three months ended September 30,  
    2014     2013  
    Stock     Intangible     Acquisiton     Litigation     Total     Stock     Intangible     Acquisiton     Litigation     Total  
  compensation     amortization     expense     expense     Adjustments     compensation     amortization     expense     expense     Adjustments  

Gross margin:

                   

Product

  $ 68      $ 110      $        $       $ 178      $ 67      $ 92      $        $        $ 159   

Services

    251              251        205        —              205   

Operating expenses:

                   

Research and development

    266          11          277        194        2            196   

Sales and marketing

    1,123        74            1,196        816        86            902   

General and administrative

    1,076        25        621        204        1,926        1,111        1            1,112   

Other (income) expense

            —                  —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income adjustments

  $ 2,785      $ 208      $ 632      $ 204      $ 3,829      $ 2,393      $ 181      $ 0      $ 0      $ 2,574   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Vocera Communications, Inc.

Non-GAAP income adjusting items

(In thousands, unaudited)

 

    Nine months ended September 30,  
    2014     2013  
    Stock     Intangible     Acquisiton     Litigation     Total     Stock     Intangible     Acquisiton     Litigation     Total  
  compensation     amortization     expense     expense     Adjustments     compensation     amortization     expense     expense     Adjustments  

Gross margin:

                   

Product

  $ 192      $ 319      $        $        $ 511      $ 186      $ 276      $        $        $ 462   

Services

    665        —              665        521        —              521   

Operating expenses:

                      —     

Research and development

    725        —          11          736        632        2            634   

Sales and marketing

    3,158        218            3,376        2,121        260            2,381   

General and administrative

    3,420        52        621        204        4,297        2,653        6            2,659   

Other (income) expense

            —                  —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income adjustments

  $ 8,160      $ 588      $ 632      $ 204      $ 9,585      $ 6,113      $ 544      $ 0      $ 0      $ 6,657   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Vocera Communications, Inc.

Adjusted EBITDA

(In thousands, unaudited)

 

     Three months ended September 30     Nine months ended September 30  
     2014     2013     2014     2013  

GAAP net income (loss)

   $ (7,891   $ (3,102   $ (21,288   $ (8,623

Add back:

        

Stock compensation

     2,785        2,393        8,160        6,113   

Acquisition expense

     632        —          632        —     

Litigation expense

     204        —          204        —     

Interest income

     (60     (60     (200     (110

Depreciation and amortization

     737        687        2,233        1,801   

Income tax (benefit) expense

     85        (120     225        (8
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP adjusted EBITDA

   $ (3,509   $ (202   $ (10,033   $ (827
  

 

 

   

 

 

   

 

 

   

 

 

 


Vocera Communications, Inc.

Reconciliation of GAAP to non-GAAP Operating Expense

(In thousands, unaudited)

 

     Three months ended
September 30, 2014
     Three months ended
June 30, 2014
     Three months ended
September 30, 2013
 

GAAP operating expense

   $ 21,292       $ 21,132       $ 19,662   

Stock compensation

     2,465         2,526         2,121   

Intangible amortization

     98         90         89   

Acquisition expense

     632         —           —     

Litigation expense

     204         —           —     
  

 

 

    

 

 

    

 

 

 

Total Adjustments

     3,399         2,616         2,210   

Non-GAAP operating expense

   $ 17,893       $ 18,516       $ 17,452   
  

 

 

    

 

 

    

 

 

 


Vocera Communications, Inc.

Future guidance for operating results

 

Reconciliation of GAAP to Non-GAAP for net loss and net loss per share   
     Q4-14     Fiscal Year 2014  
($ in millions)    Low     High     Low     High  

Revenue

   $ 21.2      $ 24.2      $ 92.0      $ 95.0   

GAAP net loss

     ($9.7     ($7.0     ($31.2     ($28.3

Stock compensation

     2.7        2.7        10.9        10.9   

Intangible amortization

     0.2        0.2        0.8        0.8   

Acquisition expense

     0.3        0.3        1.0        1.0   

Litigation expense

     0.4        0.4        0.6        0.6   

Restructuring expense

     0.7        0.7        0.7        0.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjustments

     4.4        4.4        13.9        13.9   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net loss

     ($5.3     ($2.6     ($17.2     ($14.4
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares, basic and diluted (in thousands)

     25,632        25,632        25,339        25,339   

GAAP net loss per share

     ($0.38     ($0.27     ($1.23     ($1.12

Non-GAAP net loss per share

     ($0.21     ($0.10     ($0.68     ($0.57
Reconciliation of Non-GAAP net loss to adjusted EBIDTA   
     Q4-14     Fiscal Year 2014  
($ in millions)    Low     High     Low     High  

Non-GAAP net loss

     ($5.3     ($2.6     ($17.2     ($14.4

Interest (income) expense, net

     0.0        0.0        (0.2     (0.2

Depreciation

     0.6        0.6        2.3        2.3   

Provision for income taxes

     0.1        0.1        0.3        0.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjustments

     0.7        0.7        2.3        2.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     ($4.6     ($2.0     ($14.9     ($12.0