EX-99.1 2 b63186ucexv99w1.htm EX-99.1 PRESS RELEASE DATED NOVEMBER 30, 2006 exv99w1
 

EXHIBIT 99.1
(UNICA LETTERHEAD)
 
    Unica Announces Results for Fourth Quarter and Full Year Fiscal 2006
 
    WALTHAM, Mass — November 30, 2006 — Unica® Corporation (Nasdaq: UNCA), a leading global provider of Enterprise Marketing Management (EMM) solutions, today announced financial results for its fiscal fourth quarter and full year ended September 30, 2006.
 
    For the fourth quarter of fiscal 2006, Unica reported record total revenue of $24.3 million, an increase of 41% compared with the fourth quarter of fiscal 2005. License revenue increased 52% to $12.1 million and maintenance and services revenue increased 31% to $12.1 million, compared to the prior year quarter. For the fourth quarter of fiscal 2006, maintenance revenue was $9.0 million, an increase of 33% from the prior year quarter, and services revenue was $3.1 million, an increase of 27% from the prior year quarter.
 
    Yuchun Lee, chief executive officer of Unica Corporation, stated, “During the fourth quarter, our better than expected license and total revenue growth was driven by the growing adoption of our end-to-end EMM suite. Unica is able to deliver a compelling value proposition to our customers, and this was reflected in numerous large commitments made to our technology in the fourth quarter, particularly in the financial services sector.”
 
    Lee added, “As we enter fiscal 2007, we are very excited by the growing demand for and awareness of the EMM market. We believe EMM is in the early stage of market penetration, and we plan to continue to invest in the business throughout fiscal 2007 to grow our top line and extend our leadership position in order to take advantage of the large opportunity in front of us.”
 
    For the fourth quarter of fiscal 2006, Unica reported income from operations, in accordance with generally accepted accounting principles (GAAP), of $472,000. GAAP income from operations includes $987,000 of non-cash share compensation expense and $669,000 of amortization of acquired intangibles. GAAP net income for the fiscal fourth quarter of 2006 was $770,000 compared to GAAP net income of $1.7 million in the same period last year. GAAP diluted net income per share for the fourth quarter of fiscal 2006 was $0.04, compared to a loss of $0.15 per share in the same period last year.
 
    For the fourth quarter of fiscal 2006, non-GAAP income from operations, which excludes non-cash share compensation expense and amortization of acquired intangibles, was $2.1 million. Of note, non-GAAP income from operations included $255,000 in restructuring charges associated with the company’s operations in France. Based on an estimated 37% non-GAAP effective tax rate, non-GAAP net income was $1.7 million in the fourth quarter of fiscal 2006, compared to non-GAAP net income of $1.8 million for the same period last year. Non-GAAP diluted earnings per share were $0.08 in the fourth quarter of fiscal 2006. This was in-line with the company’s previously issued guidance and compares to non-GAAP earnings per share of $0.10 in the same period last year when the effective non-GAAP tax rate was 34% and shares outstanding were 18.5 million.

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    A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
 
    As of September 30, 2006, Unica had cash, cash equivalents, and short-term investments of $40.3 million, a decrease from $42.1 million at June 30, 2006. The decrease in cash was due to approximately $2.5 million in legal expenses and costs paid during the fourth quarter related to the previously disclosed legal settlement with NetRatings, Inc. At September 30, 2006, deferred revenue was $33.9 million, representing an increase of 38% on a year-over-year basis.
 
    Ralph Goldwasser, chief financial officer of Unica, stated, “Given the growing EMM market opportunity, we plan to invest aggressively in sales and marketing during the first half of fiscal 2007. We believe the company is well positioned to expand our non-GAAP operating margin over the course of Fiscal 2007, finishing the year with a non-GAAP operating margin in the mid-teens range.”
 
    Additional Fourth-Quarter Business Highlights:
    Continued to achieve success and growth with industry leaders across a broad range of vertical markets, including financial services, insurance, marketing services and telecom. New customers added during the fourth quarter included Vodafone New Zealand, Vodafone Netherlands, Generali France, The Huntington National Bank, Bank of Oklahoma, Catalina Marketing, Boyd Gaming Corporation and ASCP (American Society for Clinical Pathology). In addition, the company significantly expanded the scope of its relationship with several of the largest financial institutions in the world.
 
    Launched Affinium 7, the most comprehensive update of the company’s marketing software suite to date. Affinium 7 delivers a rich set of new EMM capabilities including: dynamic offer management; automated response tracking; extensive user-definable reporting; integrated web analytics; easier to use, role-based interfaces; enhanced marketing calendars; streamlined workflow for frequently repeated tasks like resource assignment; and faster optimization through improved algorithmic performance.
 
    Named a “Winner” in CRM magazine’s 2006 CRM Market Leader awards in the marketing automation category for the third consecutive year. According to the October 2006 issue of CRM magazine, Unica is “the only vendor in marketing automation to break a rating of 3.5 in any category, scoring above this mark across the board in functionality, direction, and customer satisfaction.”
 
    Launched the Internet Marketing Alliance Program to provide customers with integrated solutions for managing and measuring the effectiveness of multi-channel Internet marketing campaigns. Founding partners included 24/7 Real Media, Did-It, Efficient Frontier, and Performics.
 
    Honored by KMWorld for having a “Trend Setting Product of 2006.” Specifically, Unica’s web analytics’ solution was honored for having unique market value and favorable ratings in usability, flexibility, adoption rate and total cost of ownership.

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Full Year Fiscal 2006 Results:
For the full year fiscal 2006, Unica reported record total revenue of $82.4 million, an increase of 30% compared with fiscal 2005. In fiscal 2006, license revenue increased 35% to $39.6 million and maintenance and services revenue increased 25% to $42.8 million compared to fiscal 2005. For fiscal 2006, maintenance revenue was $32.5 million, an increase of 30% from the prior year, and services revenue was $10.3 million, an increase of 12% from the prior year.
Unica reported a loss from operations, in accordance with generally accepted accounting principles (GAAP), of $1.3 million during fiscal 2006, including $3.0 million in non-cash share compensation expense, $4.0 million of in-process R&D and amortization of acquired intangibles of $1.8 million. GAAP net income for fiscal 2006 was $676,000, resulting in GAAP net income per diluted share of $0.03, compared to a loss per share of $0.03 in fiscal 2005.
On a non-GAAP basis, excluding non-cash share compensation expense, in process R & D and amortization of acquired intangibles, income from operations was $7.6 million in fiscal 2006. Non-GAAP income from operations included $255,000 in restructuring charges associated with the company’s operations in France. Based on an estimated 33% non-GAAP effective tax rate, non-GAAP net income was $6.4 million in fiscal 2006 compared to non-GAAP net income of $5.1 million in fiscal 2005, and resulting in non-GAAP diluted earnings per share of $0.31 in fiscal 2006. This compares to non-GAAP EPS of $0.32 in the same period last year when the effective non-GAAP tax rate was 34% and shares outstanding were 16.2 million.
Financial Outlook
Outlook for the quarter ending December 31, 2006 and fiscal year ending September 30, 2007 are as follows:
Fiscal Year 2007
    Revenue: Targeting between $103 million and $105 million.
 
    Non-GAAP Operating Income: Expected to be between $9.5 million to $10.5 million, with a certain amount of variability. Included in non-GAAP operating income is an estimated $1.0 million in remaining restructuring charges associated with the company’s operations in France, which restructuring was initiated in the fourth quarter fiscal 2006.
 
    Non-GAAP Diluted Earnings Per Share: Expected to be $0.35 to $0.38 based on an estimated weighted average of 21.2 million shares outstanding and an estimated non-
First Quarter of Fiscal 2007
    Revenue: Targeting between $23.5 million and $24.0 million with a certain amount of variability.
 
    Non-GAAP Operating Income: Expected to be between $500,000 and $800,000, with a certain amount of variability. Included in non-GAAP operating income is an estimated $1.0 million in remaining restructuring charges associated with the company’s operations in France, which was initiated in the fourth quarter fiscal 2006.
 
    Non-GAAP Diluted Earnings Per Share: Expected to be $0.03 to $0.04 based on an estimated weighted average of 20.9 million shares outstanding and an estimated non-GAAP effective tax rate of 35%. Included in non-GAAP EPS is an estimated $0.03 net per share impact associated with the restructuring of the company’s operations in France.

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      GAAP effective tax rate of 35%. Included in non-GAAP EPS is an estimated $0.03 net per share impact associated with the restructuring of the company’s France operations.
The preceding forward-looking information with respect to non-GAAP operating income and earnings per share excludes stock-based compensation expense in an estimated amount of approximately $1.1 million and $6.0 million for the first quarter and full year fiscal 2007, respectively, and amortization of acquired intangibles in an estimated amount of approximately $0.7 million and $2.7 million for the first quarter and full year fiscal 2007, respectively.
Conference Call Details
Unica will discuss its quarterly results and related matters via a teleconference today, November 30, 2006, at 5:00 pm (EST). To access this call, dial 800-289-0572 (domestic) or 913-981-5543 (international). Additionally, a live web cast of the conference call will be available on the “Investor Relations” page of the Company’s Web site, www.unica.com.
A replay of this conference call will be available from 8:00 p.m. EST on Thursday, November 30, 2006 through 11:59 p.m. EST on Thursday, December 14, 2006 at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 9923457. An archived webcast of this conference call will also be available on the “Investor Relations” page of the Company’s Web site, www.unica.com.
Non-GAAP Financial Measures
Unica has provided in this press release selected financial information that has not been prepared in accordance with GAAP. This information includes historical and estimated future non-GAAP operating income, net income, effective tax rate, and earnings per share.
Unica uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Unica’s ongoing operational performance. Unica believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Unica’s industry, many of which present similar non-GAAP financial measures to investors. Specifically, on both a historic and a forward-looking basis, these non-GAAP measures exclude:
  Expense associated with the write-off of in-process research and development and amortization of intangible assets related to acquisitions, as exclusion of these expenses allows comparisons of operating results that are consistent over time for both the Company’s newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies.
  Expense associated with share-based compensation related to stock options, the Company’s employee stock purchase plan and restricted stock units because, while share-based compensation is a significant ongoing expense affecting the Company’s results of operations, the Company’s management excludes share-based compensation from the

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Company’s forecasting and planning process used to allocate resources. In addition, because of varying available valuation methodologies, subjective assumptions and the variety of award types, the Company believes that excluding share-based compensation may enable useful comparisons of the Company’s operating results to its competitors.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure as detailed above. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release.
About Unica
Unica® Corporation (NASDAQ: UNCA) is a leading global provider of Enterprise Marketing Management (EMM) software. Focused exclusively on the needs of marketers, Unica’s Affinium® software delivers key EMM capabilities, including: web and customer analytics, demand generation, and marketing resource management. Affinium streamlines the entire marketing process for brand, relationship and internet marketing — from planning and budgeting to project management, execution and measurement. As the most comprehensive EMM suite on the market, Affinium uniquely delivers a marketing system of record — a purpose-built solution through which marketers easily manage marketing information and assets, rapidly assemble campaign components, and report on performance. Unica’s EMM solution is to marketing what sales force automation is to sales organizations. Today, more than 400 companies worldwide benefit from Unica’s EMM vision.
Founded in 1992, Unica is headquartered in Waltham, Massachusetts, with additional offices in the United States, France, the United Kingdom, India, Singapore, Germany, Australia and Spain. For more information, visit www.unica.com.
Unica is exclusive sponsor of The Marketers’ Consortium, an online community that offers a unique opportunity for dialog between marketing executives from across industries. Covering some of the most critical challenges and opportunities senior marketers face today, The Marketers’ Consortium has hosted notable moderators including: Don Peppers from Peppers and Rogers Group, Elana Anderson from Forrester Research, Pat LaPointe from MarketingNPV, and Elizabeth Roche from Customers Incorporated. Visit The Marketers’ Consortium at http://unicashare.typepad.com
Copyright 2006 Unica Corporation. Unica, the Unica logo, Affinium and NetTracker are registered trademarks of Unica Corporation. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.
Forward-looking Statements
Information provided in this press release contains forward-looking statements that relate to future events and the future financial performance of Unica. These forward-looking statements are based upon Unica’s historical performance and its current plans, estimates and expectations, and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Unica’s expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Unica disclaims any obligation to update or revise the forward-looking statements in the future. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including but not limited to the possibility that the market for enterprise software does not develop as anticipated; lower than expected sales due to competitive factors; the timing of Unica’s customers’ purchasing decisions or other factors; the long sales cycle for Unica’s software; a failure by Unica to develop new software products and enhance existing products; failure to retain key staff; a failure by Unica to maintain historical maintenance

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renewal rates; difficulties that the Company may encounter in its integration of acquired companies; customer and industry analyst response to Unica’s strategic direction may change; perceived market opportunities may change or not exist; the internet marketing sector may not grow as quickly as Unica expects; the Company’s strategy of differentiating itself through expanding its presence in the internet marketing sector may not result in extending its leadership position in the EMM market; the Company may not continue to deliver year-over-year growth in revenue and profitability; the Company may not continue to generate cash from operations; the Company’s financial projections may be incorrect; costs and expenses, particularly those related to Sarbanes-Oxley compliance may continue to increase; and failure to properly protect Unica’s proprietary rights and intellectual property may damage the Company. These and other important risk factors listed in the Company’s most recent Annual Report on Form 10K and most recent Quarterly Report on Form 10-Q could cause Unica’s performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These filings are available on a web site maintained by the SEC at http://www.sec.gov.

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Contacts:
     
MEDIA:
  INVESTORS:
Laura Hindermann
  Kori Doherty
Greenough Communications
  Integrated Corporate Relations
617-275-6519
  617-217-2084
lhindermann@greenoughcom.com
  kdoherty@icrinc.com

Source: Unica Corporation
   

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UNICA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
                 
    September 30,  
    2006     2005  
ASSETS
(unaudited)        
Current assets:
               
Cash and cash equivalents
  $ 30,501     $ 43,754  
Restricted cash
    247       144  
Short-term investments
    9,537       16,172  
Accounts receivable, net of allowance for doubtful accounts of $568 and $569, respectively
    25,825       15,220  
Purchased customer receivables
    1,030        
Deferred tax asset, net of valuation allowance
    820       926  
Prepaid expenses and other current assets
    1,685       1,002  
 
           
Total current assets
    69,645       77,218  
Property and equipment, net
    2,226       1,630  
Purchased customer receivables, long-term
    1,731        
Acquired intangible assets, net
    7,282       253  
Goodwill
    20,106       2,337  
Deferred tax asset, long-term, net of valuation allowance
    2,999        
Other assets
    399       166  
 
           
Total assets
  $ 104,388     $ 81,604  
 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
               
Accounts payable
  $ 2,620     $ 1,356  
Accrued expenses
    13,584       9,241  
Short-term deferred revenue
    29,580       21,323  
 
           
Total current liabilities
    45,784       31,920  
Long-term deferred revenue
    4,306       3,311  
 
           
Total liabilities
    50,090       35,231  
Stockholders’ equity:
               
Common stock
    196       189  
Additional paid-in capital
    52,094       44,927  
Retained earnings
    1,773       1,097  
Accumulated other comprehensive income
    235       160  
 
           
Total stockholders’ equity
    54,298       46,373  
 
           
Total liabilities and stockholders’ equity
  $ 104,388     $ 81,604  
 
           

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UNICA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
                                 
    Three Months Ended     Twelve Months Ended  
    September 30,     September 30,  
    2006     2005     2006     2005  
    (unaudited)     (unaudited)      
Revenue:
                               
License
  $ 12,114     $ 7,985     $ 39,621     $ 29,343  
Maintenance and services
    12,154       9,252       42,790       34,205  
 
                       
Total revenue
    24,268       17,237       82,411       63,548  
Costs of revenue(1):
                               
License
    780       277       2,175       957  
Maintenance and services
    4,091       2,836       14,032       10,679  
 
                       
Total cost of revenue
    4,871       3,113       16,207       11,636  
 
                       
Gross profit
    19,397       14,124       66,204       51,912  
Operating expenses(1):
                               
Sales and marketing
    9,949       6,752       33,446       26,802  
Research and development
    4,926       2,982       17,085       11,466  
General and administrative
    3,401       2,014       11,549       6,927  
Restructuring charge
    255             255        
In-process research and development
                4,037        
Amortization of acquired intangible assets
    394       111       1,109       460  
 
                       
Total operating costs and expenses
    18,925       11,859       67,481       45,655  
 
                       
Income (loss) from operations
    472       2,265       (1,277 )     6,257  
Other income:
                               
Interest income, net
    581       377       2,047       660  
Other income (expense), net
    15       (42 )     (57 )     (67 )
 
                       
Total other income
    596       335       1,990       593  
 
                       
Income before income taxes
    1,068       2,600       713       6,850  
Provision for income taxes
    298       884       37       2,329  
 
                       
Net income
  $ 770     $ 1,716     $ 676     $ 4,521  
 
                       
Net income (loss) per common share:(2)
                               
Basic
  $ 0.04     $ (0.15 )   $ 0.04     $ (0.03 )
 
                       
Diluted
  $ 0.04     $ (0.15 )   $ 0.03     $ (0.03 )
 
                       
Shares used in computing net income (loss) per common share:
                               
Basic
    19,568       15,761       19,267       11,342  
 
                       
Diluted
    20,331       15,761       20,235       11,342  
 
                       
(1) Amounts include share-based compensation expense as follows:
                               
Cost of maintenance and services revenue
  $ 101     $ 19     $ 273     $ 94  
Sales and marketing expense
    287       38       776       171  
Research and development expense
    224       (2 )     678       68  
General and administrative expense
    375       30       1,291       120  
 
                       
Total share-based compensation expense
  $ 987     $ 85     $ 3,018     $ 453  
 
                       
(2) Under the two-class method, in accordance with SFAS No. 128, Earnings Per Share, basic net income (loss) per share was computed by dividing the net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding for the fiscal period. Diluted net income (loss) per share was computed using the more dilutive of (a) the two-class method and (b) the if-converted method. The Company allocates net income first to preferred stockholders based on dividend rights under the Company’s charter and dividends paid, and then to preferred and common stockholders, pro rata, based on ownership interests. Net losses were not allocated to preferred stockholders. In addition, for the quarter and year ended September 30, 2005, net loss applicable to common stockholders and net loss per share reflect the payment of a special one-time preferred stock dividend of $4.1 million in August 2005 in connection with Unica’s initial public offering. The following is a reconciliation of net income (loss) applicable to common stockholders for the calculation of diluted earnings per share.
                                 
    Three Months Ended     Twelve Months Ended  
    September 30,     September 30,  
    2006     2005     2006     2005  
Net income
  $ 770     $ 1,716     $ 676     $ 4,521  
Accretion of preferred stock dividend and allocation of net income to preferred stockholders
          (84 )           (841)  
Payment of special one-time preferred stock dividend
          (4,062 )           (4,062)  
 
                       
Net income (loss) applicable to common stockholders, diluted
    $770     $ (2,430 )   $ 676     $ (382)  
 
                       

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UNICA CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
                 
    Twelve Months Ended September 30,  
    2006     2005  
     (unaudited)  
Cash flows from operating activities:
               
Net income
  $ 676     $ 4,521  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation of property and equipment
    1,102       787  
Amortization of acquired intangible assets
    1,785       460  
In-process research and development
    4,037        
Non-cash share-based compensation charge
    3,018       453  
Deferred tax benefits
    (2,893 )     (468 )
Changes in operating assets and liabilities, net of assets acquired and liabilities assumed:
               
Accounts receivable, net
    (9,460 )     (3,865 )
Prepaid expenses and other current assets
    (526 )     1,103  
Other assets
    269       (79 )
Accounts payable
    845       (195 )
Accrued expenses
    (298 )     2,557  
Deferred revenue
    8,815       4,466  
 
           
Net cash provided by operating activities
    7,370       9,740  
Cash flows from investing activities:
               
Purchase of property and equipment, net of acquisitions
    (1,371 )     (1,236 )
Net cash paid for acquisitions
    (28,286 )      
Sales and maturities of short-term investments
    25,044       3,400  
Purchases of short-term investments
    (18,403 )     (19,573 )
(Increase) decrease in restricted cash
    (103 )     144  
 
           
Net cash used in investing activities
    (23,119 )     (17,265 )
Cash flows from financing activities:
               
Repayment of line of credit and notes payable
           
Proceeds from issuance of common stock, net of issuance costs
          38,524  
Proceeds from exercise of stock options and issuance of ESPP shares
    1,470       936  
Tax benefit related to exercised stock options
    880        
Payment of dividend
          (11,823 )
 
           
Net cash provided by financing activities
    2,350       27,637  
Effect of exchange rate changes on cash and cash equivalents
    146       (131 )
 
           
Net (decrease) increase in cash and cash equivalents
    (13,253 )     19,981  
Cash and cash equivalents at beginning of period
    43,754       23,773  
 
           
Cash and cash equivalents at end of period
  $ 30,501     $ 43,754  
 
           
Supplemental disclosure of cash flow information:
               
Income taxes paid
  $ 1,706     $ 1,677  
 
           
Supplemental disclosure of non-cash investing and financing activities:
               
Accretion of preferred stock dividends
  $     $ 841  
 
           
Conversion of redeemable convertible preferred stock into common stock
  $     $ 16,205  
 
           
Issuance of common stock for acquisition
  $ 1,804      
 
           

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UNICA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)
                                 
    Three Months Ended     Twelve Months Ended  
    September 30,     September 30,  
    2006     2005     2006     2005  
    (unaudited)     (unaudited)  
Non-GAAP financial measures and reconciliation:
                               
 
GAAP income (loss) from operations
  $ 472     $ 2,265     $ (1,277 )   $ 6,257  
Add: Share-based compensation
    987       85       3,018       453  
In-process research and development and amortization of intangible assets
    669       111       5,822       460  
 
                       
Non-GAAP income from operations
  $ 2,128     $ 2,461     $ 7,563     $ 7,170  
 
                       
 
 
GAAP net income
  $ 770       1,716     $ 676     $ 4,521  
Less: Adjustment for prior quarter ETR estimates (3)
    (228 )                  
Add: Share-based compensation, net of tax (3)
    731       56       2,094       298  
In-process research and development and amortization of intangible assets, net of tax (3)
    444       73       3,592       302  
 
                       
Non-GAAP net income
  $ 1,717     $ 1,845     $ 6,362     $ 5,121  
 
                       
 
Diluted non-GAAP net income per share (4)
  $ 0.08     $ 0.10     $ 0.31     $ 0.32  
 
                       
Shares used in diluted per share calculation:
    20,557       18,456       20,401       16,210  
 
                       
     (3) The Non-GAAP tax provision excludes the impact of the write off of in-process research and development, amortization of intangibles arising from business combinations and stock-based compensation expense; net of permanent differences and income taxes. Reflected in taxes is an adjustment for the difference between the effective tax rate used for the quarters compared to the actual annual rate.
     (4) Non-GAAP weighted average shares outstanding for the three and twelve months ended September 30, 2005 includes the conversion of Unica’s preferred stock into 4,083 shares of common stock. As a result, earnings applicable to common shareholders are not affected by the accretion of preferred stock dividends, or allocation of earnings to preferred stockholders, as in the computation of GAAP EPS.