Delaware | 001-35507 | 20-0062867 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
3111 Coronado Drive Santa Clara, | 95054 | |||
(Address of principal executive offices) | (Zip Code) |
¨ | 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)) |
Exhibit No. | Description of Exhibit | |
99.1 | Earnings Press Release dated August 31, 2016. |
INFOBLOX INC. | ||||
Date | August 31, 2016 | By: | /s/ Janesh Moorjani | |
Janesh Moorjani | ||||
Chief Financial Officer |
Exhibit No. | Description of Exhibit | |
99.1 | Earnings Press Release dated August 31, 2016. |
• | Revenue grew 17% to $358 million |
• | GAAP gross margin increased to 78.7% from 78.1% and Non-GAAP gross margin increased to 80.5% from 80.0% |
• | GAAP operating margin improved to (4.7%) from (8.3%) and Non-GAAP operating margin increased to 11.4% from 8.0% |
• | GAAP net loss decreased to $13.7 million from $27.1 million and Non-GAAP net income increased 13% to $25.7 million |
• | Cash flow from operations grew 42% to $68 million |
• | Cash, cash equivalents and short term investments total $258 million; no debt |
• | Recognized as the market-share leader in enterprise-grade DDI in a report from IDC titled "Worldwide DDI Software and Appliance Market Shares, 2015" (IDC #US40816216, May 2016). Infoblox market share increased to 49.9 percent in 2015 from 46.7 percent in 2014. No other competitor had a market share greater than 15 percent. |
• | Added nearly 500 new customers; more than 20% of these new customers have more than 10,000 employees or users on their network |
• | Hosted Bloxfest, Infoblox's first customer conference, with nearly 250 customers and partners in attendance |
• | Introduced Actionable Network Intelligence, a united platform that automates core network services across data centers and clouds to proactively detect, isolate, and stop data exfiltration that exploits DNS vulnerabilities; and through Infoblox products leverage actionable network intelligence for operational efficiency and visibility |
• | Acquired and integrated IID, a leader in global cyberthreat intelligence, making Infoblox the first enterprise-grade DDI vendor to combine contextual network data with federated threat intelligence and a dedicated threat research team, to provide context-aware security using infrastructure that customers already have in place |
• | Announced Infoblox DNS Firewall as a service, extending the company's industry-leading DNS protection to roaming devices off premise |
• | Introduced Infoblox DDI for Amazon Web Services (AWS), a virtual appliance that extends the Infoblox solution for enterprise-grade network services and security to the AWS Cloud |
• | Announced Infoblox Identity Mapping, and also integration with Cisco ISE, bridging the gap between network security and user identity by intelligently correlating two separate sets of data, making it easier for network administrators to locate the source of security events, track mobile devices and monitor network usage |
• | Launched NIOS 7.3 upgrading the underlying operating system for Infoblox products adding major enhancements |
• | Announced new executives and board members including CFO Janesh Moorjani, EVP of Engineering Atul Garg, CMO Ashish Gupta, and board member Edzard Overbeek |
• | Total net revenue in the range of $360 million to $380 million; |
• | GAAP gross margin to be approximately 78.0% and Non-GAAP gross margin to be approximately 80.0%; and |
• | GAAP operating margin in the range of 2.1% to 2.7% and Non-GAAP operating margin in the range of 16.0% to 18.0%. |
• | Total net revenue in the range of $83 million to $87 million; |
• | GAAP gross margin to be approximately 77.4% and Non-GAAP gross margin to be approximately 79.5%; |
• | GAAP operating margin in the range of (5.0%) to (3.0%) and Non-GAAP operating margin in the range of 10.0% to 12.0%; and |
• | GAAP net loss per share to be in the range of $0.07 to $0.05 and Non-GAAP net income per diluted share ("non-GAAP EPS") to be in the range of $0.09 to $0.11, assuming approximately 56 million to 58 million shares, on a non-GAAP diluted weighted-average share basis. |
Three Months Ended | Year Ended | |||||||||||||||||||
July 31, 2016 | April 30, 2016 | July 31, 2015 | July 31, 2016 | July 31, 2015 | ||||||||||||||||
Net revenue: | ||||||||||||||||||||
Products and licenses | $ | 38,661 | $ | 37,771 | $ | 46,348 | $ | 178,805 | $ | 156,510 | ||||||||||
Services | 47,642 | 44,191 | 40,651 | 179,481 | 149,615 | |||||||||||||||
Total net revenue | 86,303 | 81,962 | 86,999 | 358,286 | 306,125 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Products and licenses | 8,463 | 9,046 | 10,039 | 37,715 | 35,362 | |||||||||||||||
Services | 10,650 | 10,176 | 8,554 | 38,643 | 31,769 | |||||||||||||||
Total cost of revenue | 19,113 | 19,222 | 18,593 | 76,358 | 67,131 | |||||||||||||||
Gross profit | 67,190 | 62,740 | 68,406 | 281,928 | 238,994 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 17,440 | 17,300 | 18,309 | 70,034 | 65,092 | |||||||||||||||
Sales and marketing | 43,195 | 42,506 | 44,438 | 178,983 | 162,217 | |||||||||||||||
General and administrative | 11,457 | 10,956 | 10,055 | 44,019 | 37,110 | |||||||||||||||
Restructuring charges | 5,657 | — | — | 5,657 | — | |||||||||||||||
Total operating expenses | 77,749 | 70,762 | 72,802 | 298,693 | 264,419 | |||||||||||||||
Loss from operations | (10,559 | ) | (8,022 | ) | (4,396 | ) | (16,765 | ) | (25,425 | ) | ||||||||||
Other income (expense), net | (60 | ) | 309 | (77 | ) | 511 | (651 | ) | ||||||||||||
Loss before provision for (benefit from) income taxes | (10,619 | ) | (7,713 | ) | (4,473 | ) | (16,254 | ) | (26,076 | ) | ||||||||||
Provision for (benefit from) income taxes | (317 | ) | (2,037 | ) | 253 | (2,543 | ) | 1,007 | ||||||||||||
Net loss | $ | (10,302 | ) | $ | (5,676 | ) | $ | (4,726 | ) | $ | (13,711 | ) | $ | (27,083 | ) | |||||
Net loss per share - basic and diluted | $ | (0.18 | ) | $ | (0.10 | ) | $ | (0.08 | ) | $ | (0.24 | ) | $ | (0.48 | ) | |||||
Weighted-average shares used in computing basic and diluted net loss per share | 56,688 | 57,420 | 58,128 | 58,080 | 56,626 |
July 31, 2016 | July 31, 2015 | |||||||
(Unaudited) | (a) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 123,830 | $ | 103,124 | ||||
Short-term investments | 134,275 | 227,712 | ||||||
Accounts receivable, net | 59,937 | 45,881 | ||||||
Inventory | 6,045 | 8,588 | ||||||
Prepaid expenses and other current assets | 12,588 | 10,459 | ||||||
Total current assets | 336,675 | 395,764 | ||||||
Property and equipment, net | 22,004 | 23,225 | ||||||
Restricted cash | 10,030 | 3,515 | ||||||
Intangible assets, net | 20,119 | 1,923 | ||||||
Goodwill | 58,965 | 33,293 | ||||||
Other assets | 1,310 | 1,547 | ||||||
TOTAL ASSETS | $ | 449,103 | $ | 459,267 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | $ | 25,871 | $ | 19,136 | ||||
Accrued compensation | 18,420 | 22,931 | ||||||
Deferred revenue, net | 122,223 | 95,130 | ||||||
Total current liabilities | 166,514 | 137,197 | ||||||
Deferred revenue, net | 53,681 | 41,717 | ||||||
Other liabilities | 10,400 | 5,201 | ||||||
TOTAL LIABILITIES | 230,595 | 184,115 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Convertible preferred stock, $0.0001 par value per share—5,000 shares authorized; no shares issued or outstanding | — | — | ||||||
Common stock, $0.0001 par value per share—100,000 shares authorized; 55,973 shares and 58,836 shares issued and outstanding as of July 31, 2016 and July 31, 2015 | 6 | 6 | ||||||
Additional paid-in capital | 459,811 | 438,725 | ||||||
Accumulated other comprehensive income (loss) | 30 | (37 | ) | |||||
Accumulated deficit | (241,339 | ) | (163,542 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY | 218,508 | 275,152 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 449,103 | $ | 459,267 |
Year Ended July 31, | |||||||
2016 | 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (13,711 | ) | $ | (27,083 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Stock-based compensation | 48,246 | 47,623 | |||||
Depreciation and amortization | 11,654 | 8,888 | |||||
Excess tax benefits from employee stock plans | (205 | ) | (207 | ) | |||
Deferred income taxes | (3,658 | ) | — | ||||
Other | 953 | 2,096 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (13,810 | ) | (9,461 | ) | |||
Inventory | 2,449 | (2,615 | ) | ||||
Prepaid expenses, other current assets and other assets | 825 | (3,629 | ) | ||||
Accounts payable and accrued liabilities | 4,817 | 2,833 | |||||
Accrued compensation | (4,511 | ) | 9,734 | ||||
Deferred revenue, net | 36,075 | 20,734 | |||||
Other liabilities | (1,013 | ) | (902 | ) | |||
Net cash provided by operating activities | 68,111 | 48,011 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of short-term investments | (29,905 | ) | (147,137 | ) | |||
Proceeds from maturities of short-term investments | 122,880 | 109,290 | |||||
Business acquisition, net of cash acquired | (31,531 | ) | — | ||||
Change in restricted cash | (8,508 | ) | — | ||||
Purchases of property and equipment | (8,318 | ) | (10,303 | ) | |||
Proceeds from sales of short-term investments | — | 1,001 | |||||
Net cash provided by (used in) investing activities | 44,618 | (47,149 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Common stock repurchases | (108,868 | ) | — | ||||
Proceeds from issuance of common stock under the employee stock plans | 17,248 | 25,039 | |||||
Excess tax benefits from employee stock plans | 205 | 207 | |||||
Settlement of hold back liability for IID acquisition | (566 | ) | — | ||||
Net cash provided by (used in) financing activities | (91,981 | ) | 25,246 | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | (42 | ) | (1,519 | ) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 20,706 | 24,589 | |||||
CASH AND CASH EQUIVALENTS—Beginning of period | 103,124 | 78,535 | |||||
CASH AND CASH EQUIVALENTS—End of period | $ | 123,830 | $ | 103,124 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Purchases of property and equipment not yet paid | $ | 542 | $ | 1,341 | |||
Cash paid for income taxes, net | $ | 727 | $ | 483 |
Three Months Ended | Year Ended | |||||||||||||||||||
July 31, 2016 | April 30, 2016 | July 31, 2015 | July 31, 2016 | July 31, 2015 | ||||||||||||||||
Gross Profit Reconciliation: | ||||||||||||||||||||
GAAP gross profit | $ | 67,190 | $ | 62,740 | $ | 68,406 | $ | 281,928 | $ | 238,994 | ||||||||||
Stock-based compensation expense | 1,033 | 1,014 | 1,045 | 4,396 | 4,450 | |||||||||||||||
Amortization of intangible assets | 625 | 768 | 290 | 1,973 | 1,160 | |||||||||||||||
Non-GAAP gross profit | $ | 68,848 | $ | 64,522 | $ | 69,741 | $ | 288,297 | $ | 244,604 | ||||||||||
Gross Margin Reconciliation: | ||||||||||||||||||||
GAAP gross margin | 77.9 | % | 76.5 | % | 78.6 | % | 78.7 | % | 78.1 | % | ||||||||||
Stock-based compensation expense | 1.2 | 1.3 | 1.2 | 1.2 | 1.5 | |||||||||||||||
Amortization of intangible assets | 0.7 | 0.9 | 0.3 | 0.6 | 0.4 | |||||||||||||||
Non-GAAP gross margin | 79.8 | % | 78.7 | % | 80.1 | % | 80.5 | % | 80.0 | % | ||||||||||
Operating Income (Loss) Reconciliation: | ||||||||||||||||||||
GAAP operating loss | $ | (10,559 | ) | $ | (8,022 | ) | $ | (4,396 | ) | $ | (16,765 | ) | $ | (25,425 | ) | |||||
Stock-based compensation expense | 10,658 | 11,795 | 11,525 | 48,246 | 47,623 | |||||||||||||||
Restructuring charges | 5,657 | — | — | 5,657 | — | |||||||||||||||
Amortization of intangible assets | 969 | 1,091 | 322 | 2,704 | 2,173 | |||||||||||||||
Expenses related to non-routine stockholder matters | 464 | — | — | 464 | — | |||||||||||||||
Acquisition related expenses | — | 236 | — | 618 | — | |||||||||||||||
Non-GAAP operating income | $ | 7,189 | $ | 5,100 | $ | 7,451 | $ | 40,924 | $ | 24,371 | ||||||||||
Operating Margin Reconciliation: | ||||||||||||||||||||
GAAP operating margin | (12.2 | %) | (9.8 | %) | (5.1 | %) | (4.7 | %) | (8.3 | %) | ||||||||||
Stock-based compensation expense | 12.3 | 14.4 | 13.3 | 13.5 | 15.6 | |||||||||||||||
Restructuring charges | 6.6 | — | — | 1.6 | — | |||||||||||||||
Amortization of intangible assets | 1.1 | 1.3 | 0.4 | 0.7 | 0.7 | |||||||||||||||
Expenses related to non-routine stockholder matters | 0.5 | — | — | 0.1 | — | |||||||||||||||
Acquisition related expenses | — | 0.3 | — | 0.2 | — | |||||||||||||||
Non-GAAP operating margin | 8.3 | % | 6.2 | % | 8.6 | % | 11.4 | % | 8.0 | % | ||||||||||
Net Income (Loss) Reconciliation: | ||||||||||||||||||||
GAAP net loss | $ | (10,302 | ) | $ | (5,676 | ) | $ | (4,726 | ) | $ | (13,711 | ) | $ | (27,083 | ) | |||||
Stock-based compensation expense | 10,658 | 11,795 | 11,525 | 48,246 | 47,623 | |||||||||||||||
Restructuring charges | 5,657 | — | — | 5,657 | — | |||||||||||||||
Amortization of intangible assets | 969 | 1,091 | 322 | 2,704 | 2,173 | |||||||||||||||
Expenses related to non-routine stockholder matters | 464 | — | — | 464 | — | |||||||||||||||
Acquisition related expenses | — | 236 | — | 618 | — | |||||||||||||||
Income tax adjustment | (3,027 | ) | (4,091 | ) | 167 | (18,288 | ) | — | ||||||||||||
Non-GAAP net income | $ | 4,419 | $ | 3,355 | $ | 7,288 | $ | 25,690 | $ | 22,713 | ||||||||||
Non-GAAP EPS | $ | 0.08 | $ | 0.06 | $ | 0.12 | $ | 0.43 | $ | 0.38 | ||||||||||
Shares used in Computing non-GAAP EPS Reconciliation: | ||||||||||||||||||||
Diluted shares: | ||||||||||||||||||||
Weighted-average shares used in calculating GAAP diluted net loss per share | 56,688 | 57,420 | 58,128 | 58,080 | 56,626 | |||||||||||||||
Additional dilutive securities for non-GAAP income | 1,405 | 888 | 3,149 | 1,595 | 2,657 | |||||||||||||||
Weighted-average shares used in calculating non-GAAP diluted net income per share | 58,093 | 58,308 | 61,277 | 59,675 | 59,283 |
Three Months Ending | Year Ending | |||||||||||||
October 31, 2016 | July 31, 2017 | |||||||||||||
Low End | High End | Low End | High End | |||||||||||
Gross Margin Reconciliation: | ||||||||||||||
GAAP gross margin | 77.4 | % | 77.4 | % | 78.0 | % | 78.0 | % | ||||||
Stock-based compensation expense | 1.3 | 1.3 | 1.3 | 1.4 | ||||||||||
Amortization of intangible assets | 0.8 | 0.8 | 0.7 | 0.6 | ||||||||||
Non-GAAP gross margin | 79.5 | % | 79.5 | % | 80.0 | % | 80.0 | % | ||||||
Operating Margin Reconciliation: | ||||||||||||||
GAAP operating margin | (5.0 | %) | (3.0 | %) | 2.1 | % | 2.7 | % | ||||||
Stock-based compensation expense | 13.6 | 13.3 | 12.8 | 14.2 | ||||||||||
Restructuring charges | 0.2 | 0.6 | 0.1 | 0.1 | ||||||||||
Amortization of intangible assets | 1.2 | 1.1 | 1.0 | 1.0 | ||||||||||
Non-GAAP operating margin | 10.0 | % | 12.0 | % | 16.0 | % | 18.0 | % | ||||||
Earnings Per Share Reconciliation: | ||||||||||||||
GAAP net loss per share | $ | (0.07 | ) | $ | (0.05 | ) | ||||||||
Stock-based compensation expense | 0.20 | 0.20 | ||||||||||||
Restructuring charges | — | 0.01 | ||||||||||||
Amortization of intangible assets | 0.02 | 0.02 | ||||||||||||
Income tax adjustment | (0.06 | ) | (0.07 | ) | ||||||||||
Non-GAAP net income per share | $ | 0.09 | $ | 0.11 |