UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 10, 2011
ServiceSource International, Inc.
(Exact name of registrant as specified in its charter)
Delaware |
001-35108 |
81-0578975 |
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
634 Second Street San Francisco, California |
94107 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (415) 901-6030
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
||
[ ] | 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.
On November 10, 2011, ServiceSource International, Inc. issued a press release announcing its results for the quarter ended September 30, 2011. A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated by reference herein.
The information in this current report on Form 8-K and the exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1
Press release dated November 10, 2011
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ServiceSource International, Inc.
(Registrant) |
||
November 10, 2011
(Date) |
/s/ PAUL D. WARENSKI
Paul D. Warenski Senior Vice President, General Counsel and Secretary |
EXHIBIT INDEX
Exhibit |
|
Description |
99.1 |
|
Press release dated November 10, 2011 |
EXHIBIT 99.1
SAN FRANCISCO, Nov. 10, 2011 (GLOBE NEWSWIRE) -- ServiceSource (Nasdaq:SREV), a global leader in Service Revenue Management, today announced financial results for the third quarter ended September 30, 2011.
"The strategic investments we've made over the past few years are driving momentum throughout our business, exemplified by our record $50 million quarter," said Mike Smerklo, Chairman and CEO of ServiceSource. "With our recent expansion into new vertical markets, we estimate our target opportunity as greater than $250 billion. Through consistent execution around the globe, we are poised to capture a large share of that opportunity, extending our clear market leadership position."
ServiceSource reported revenue of $50.1 million in the third quarter of 2011, an increase of 31% compared to $38.3 million in the third quarter of 2010. Revenue in Asia Pacific and Japan more than doubled compared to the third quarter of 2010 while EMEA grew 26%, demonstrating the Company's strong international presence and revenue mix.
Adjusted EBITDA for the third quarter of 2011 was $3.0 million, exceeding prior guidance of $500,000 to $1.0 million. GAAP net loss for the third quarter of 2011 was $2.8 million, or $0.04 per share. Non-GAAP net income for the third quarter of 2011 was $1.1 million, or $0.01 per diluted share, which exceeded guidance of breakeven to a net loss of one cent per share.
Adjusted EBITDA and non-GAAP net income are defined and reconciled to our GAAP net loss below.
"We are pleased to report third quarter revenues, which exceed our preliminary forecast announced in early October and demonstrate strong year-over-year growth," said David Oppenheimer, CFO of ServiceSource. "While our efforts to drive continued leverage in our business model resulted in higher profits than our guidance, we remain focused on investing strategically in our business, in both sales and marketing and technology, to take advantage of the large market opportunity in front of us."
Business Highlights:
Business Outlook
The Company provided the following commentary on its expected business outlook:
Quarterly Conference Call
ServiceSource will discuss its quarterly results today via teleconference at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). To access the call, please dial (877) 293-5486 or outside the U.S. (914) 495-8592, at least five minutes prior to the 1:30 p.m. PT start time. A live webcast of the call will also be available at http://ir.servicesource.com/events.cfm under the Events and Presentations menu. An audio replay will be available following the call by calling (855) 859-2056 or (404) 537-3406, with Conference ID 23310236. The replay will also be available on the Company's website at http://ir.servicesource.com.
About ServiceSource
ServiceSource is the global leader in service revenue management, partnering with technology-based companies to optimize maintenance, support and subscription revenue streams, while also improving customer relationships and loyalty. ServiceSource delivers these results via a cloud-based solution, combining its Service Revenue Performance Suite™ of applications with dedicated service sales teams, leveraging a proprietary Service Revenue Intelligence Platform™ of transaction data, benchmarks and best practices. ServiceSource offers its service revenue management solution on a unique pay-for-performance business model that enables a success-driven, shared-risk partnership. The Company is headquartered in San Francisco, and manages service revenue performance for customers across the globe in more than 35 languages.
ServiceSource and any ServiceSource product or service names or logos above are trademarks of ServiceSource International, Inc. All other trademarks used herein belong to their respective owners.
The ServiceSource logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10784
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding ServiceSource's potential future financial results and momentum in our business. These forward-looking statements are based on our current assumptions and beliefs, and involve risks and uncertainties that could cause our results to differ materially from those expressed or implied in our forward-looking statements. Those risks and uncertainties include, without limitation, changes in market conditions that impact our ability to generate service revenue on our customers' behalf; errors in estimates as to the service revenue we can generate for our customers; risks associated with material defects or errors in our software or the effect of data security breaches; our ability to adapt our solution to changes in the market or new competition; our ability to improve our customers' renewal rates, margins and profitability; our ability to increase our revenue and contribution margin over time from new and existing customers; business strategies; technology development; protection of our intellectual property; investment and financing plans; liquidity; competitive position; the effects of competition; industry environment; and potential growth opportunities; and other risks and uncertainties described more fully in our periodic reports filed with the Securities and Exchange Commission, which can be obtained online at the Commission's website at http://www.sec.gov. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements.
The following tables reconcile (i) the business outlook net income (loss) to adjusted EBITDA; (ii) net income (loss) to non-GAAP net income; and (iii) the business outlook net income (loss) per share to non-GAAP diluted earnings per share for the third quarter and full fiscal year:
ServiceSource International, Inc. | |||
Business Outlook | |||
Reconciliation of Net Loss to Adjusted EBITDA | |||
(In thousands) | |||
(Unaudited) | |||
Three Months Ended | Twelve Months Ended | ||
December 31, | December 31, | ||
2011 | 2011 | ||
Net income (loss) range………………………………… | $(2,000) -- $(2,500) | $11,000 -- $11,500 | |
Income tax (benefit) provision…………………………… | 300 | (21,000) | |
Interest & other expense, net……………………………. | 100 | 1,100 | |
Depreciation………………………………………………. | 3,100 | 10,400 | |
EBITDA range……………………………………………. | $1,000 -- $1,500 | $1,500 -- $2,000 | |
Stock-based compensation……………………………… | 3,500 | 11,500 | |
Adjusted EBITDA range………………………………… | $4,500 -- $5,000 | $13,000 -- $13,500 | |
GAAP to Non-GAAP Reconciliation | |||
(Dollars in thousands, except per share data) | |||
(Unaudited) | |||
Three Months Ended | Twelve Months Ended | ||
December 31, | December 31, | ||
2011 | 2011 | ||
Net Income (Loss) | |||
GAAP net income (loss) | $(2,000) -- $(2,500) | $11,000 -- $11,500 | |
Non-GAAP adjustments: | |||
Stock-based compensation | ( A ) | 3,500 | 11,500 |
Amortization of internally-developed software | ( B ) | 1,250 | 4,300 |
One-time tax benefit due to conversion to corporation | ( C ) | -- | (21,500) |
Income tax effect on non-GAAP adjustments and impact of normalizing the effective income tax rate |
( D ) | (850) | (2,300) |
Non-GAAP net income | $1,300 -- $1,800 | $3,000 -- $3,500 | |
Net Income (Loss) Per Share | |||
GAAP diluted net income (loss) per share | $(0.03) | $0.15 | |
Non-GAAP adjustments: | |||
Stock-based compensation | ( A ) | 0.05 | 0.15 |
Amortization of internally-developed software | ( B ) | 0.02 | 0.06 |
One-time tax benefit due to conversion to corporation | ( C ) | -- | (0.29) |
Income tax effect on non-GAAP adjustments and impact of normalizing the effective income tax rate |
( D ) | (0.01) | (0.03) |
Non-GAAP diluted net income per share | ( E ) | $0.02 -- $0.03 | $0.04 -- $0.05 |
Shares used in calculating diluted net income per share on a non-GAAP basis |
77,000 | 75,000 |
Footnotes to GAAP to Non-GAAP Reconciliation
(A) Stock-based compensation. Included in our GAAP presentation of cost of revenue and operating expenses, stock-based compensation consists of expenses for stock options and awards and purchase rights under our stock options plans. We exclude stock-based compensation expense from our non-GAAP measures because some investors may view it as not reflective of our core operating performance as it is a non-cash expense.
(B) Amortization of internally-developed software. Included in our GAAP presentation of cost of revenue and operating expenses, amortization of internally-developed software reflects non cash expense for certain software purchases and software developed or obtained for internal use. We exclude these expenses from our non-GAAP measures because we believe they are not indicative of our core operating performance.
(C) One-time tax benefit due to conversion to corporation. We elected to be treated as a corporation under Subchapter C of Chapter 1 of the United States Internal Revenue Code, effective March 1, 2011, and therefore became subject to federal and state tax expense beginning March 1, 2011. As a result of this tax election, we recorded a net deferred tax asset and a one-time non-cash tax benefit of $21.4 million. We excluded the tax benefit from our non-GAAP measures because it is non-recurring and unique to this one time event and is not indicative of our core operating performance.
(D) Income tax effect on non-GAAP adjustments and impact of normalizing the effective income tax rate. This adjusts the provision for income taxes to reflect the effect of the non-GAAP items A, B and C noted above on our non-GAAP net income and adjusts the income tax rate to a normalized effective tax rate of 40%.
(E) For this per share reconciliation, diluted shares were used for the above calculation.
ServiceSource International, Inc. | ||||
Condensed Consolidated Statements of Operations | ||||
(In thousands, except per share amounts) | ||||
(Unaudited) | ||||
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2011 | 2010 | 2011 | 2010 | |
Net revenue | $ 50,088 | $ 38,316 | $ 144,722 | $ 108,468 |
Cost of revenue (1) | 28,034 | 21,895 | 82,399 | 63,841 |
Gross profit | 22,054 | 16,421 | 62,323 | 44,627 |
Operating expenses | ||||
Sales and marketing (1) | 12,144 | 9,696 | 34,664 | 25,640 |
Research and development (1) | 3,547 | 1,419 | 9,650 | 3,927 |
General and administrative (1) | 8,969 | 5,444 | 24,692 | 13,806 |
Total operating expenses | 24,660 | 16,559 | 69,006 | 43,373 |
Income (loss) from operations | (2,606) | (138) | (6,683) | 1,254 |
Interest expense | (68) | (325) | (452) | (940) |
Other expense, net | 350 | (275) | (559) | (202) |
Income (loss) before provision (benefit) for income taxes | (2,324) | (738) | (7,694) | 112 |
Income tax (benefit) provision | 501 | 265 | (21,152) | 1,368 |
Net income (loss) | $ (2,825) | $ (1,003) | $ 13,458 | $ (1,256) |
Net income (loss) per common share: | ||||
Basic | $ (0.04) | $ (0.02) | $ 0.21 | $ (0.02) |
Diluted | $ (0.04) | $ (0.02) | $ 0.19 | $ (0.02) |
Weighted-average shares used in computing net income (loss) per common share: |
||||
Basic | 69,464 | 57,408 | 64,989 | 57,167 |
Diluted | 69,464 | 57,408 | 72,208 | 57,167 |
(1) Includes stock-based compensation expense as follows: | ||||
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2011 | 2010 | 2011 | 2010 | |
Cost of revenue | $ 470 | $ 270 | $ 1,286 | $ 843 |
Sales and marketing | 1,111 | 769 | 2,981 | 2,214 |
Research and development | 327 | 305 | 864 | 598 |
General and administrative | 1,060 | 784 | 2,973 | 2,362 |
Total stock-based compensation | $ 2,968 | $ 2,128 | $ 8,104 | $ 6,017 |
ServiceSource International, Inc. | ||
Condensed Consolidated Balance Sheets | ||
(In thousands) | ||
(Unaudited) | ||
September 30, | December 31, | |
2011 | 2010 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 58,293 | $ 22,652 |
Short-term investments | 45,498 | -- |
Accounts receivable, net | 42,804 | 49,237 |
Advances to customers | -- | 18 |
Current portion of deferred income taxes | 5,712 | 1,155 |
Prepaid expenses and other | 8,252 | 3,326 |
Total current assets | 160,559 | 76,388 |
Property and equipment, net | 23,919 | 19,418 |
Goodwill | 6,334 | 6,334 |
Deferred debt issuance costs, net | 149 | 273 |
Deferred income taxes, net of current portion | 28,889 | 3,780 |
Other assets, net | 1,926 | 1,910 |
Total assets | $ 221,776 | $ 108,103 |
Liabilities and Stockholders' / Members' Equity | ||
Current liabilities: | ||
Accounts payable | $ 7,362 | $ 3,710 |
Accrued taxes | 3,128 | 2,233 |
Accrued compensation and benefits | 17,475 | 11,816 |
Accrued payables to customers | -- | 30,640 |
Other accrued liabilities | 6,815 | 7,575 |
Current portion of long-term debt | 738 | 2,279 |
Total current liabilities | 35,518 | 58,253 |
Long-term debt, net of current portion | 1,451 | 14,939 |
Other long-term liabilities | 1,441 | 1,027 |
Total liabilities | 38,410 | 74,219 |
Stockholders' / members' equity: | ||
Common shares | -- | 34,161 |
Common stock | 7 | -- |
Treasury stock / shares | (441) | (441) |
Additional paid-in capital | 165,832 | -- |
Retained earnings | 17,763 | -- |
Accumulated other comprehensive income | 205 | 164 |
Total stockholders' / members' equity | 183,366 | 33,884 |
Total liabilities and stockholders' / members' equity | $ 221,776 | $ 108,103 |
ServiceSource International, Inc. | |||
Condensed Consolidated Statements of Cash Flows | |||
(In thousands) | |||
(Unaudited) | |||
Nine Months Ended | |||
September 30, | |||
2011 | 2010 | ||
Cash flows from operating activities | |||
Net income (loss) | $ 13,458 | $ (1,256) | |
Adjustments to reconcile net income (loss) to net | |||
cash provided by (used in) operating activities: | |||
Depreciation and amortization | 7,109 | 4,436 | |
Amortization of deferred financing costs | 325 | 124 | |
Accretion of premium on short-lived investments | 87 | -- | |
Deferred income taxes | (22,229) | (960) | |
Stock-based compensation | 8,104 | 6,017 | |
Tax benefit from stock-based compensation | (2,382) | ||
Loss on disposal of assets | 46 | -- | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 6,433 | (13,207) | |
Advances to customers | 18 | 534 | |
Prepaid expenses and other | (2,187) | (1,338) | |
Accounts payable | 73 | 1,186 | |
Accrued taxes | 895 | 7 | |
Accrued compensation and benefits | 5,659 | 2,734 | |
Accrued payables to customers | (30,640)* | 19,162 | |
Other accrued liabilities | 846 | 3,698 | |
Net cash (used in) provided by operating activities | (14,385) | 21,137 | |
Cash flows from investing activities | |||
Acquisition of property and equipment | (8,784) | (7,427) | |
Purchases of available-for-sale investments, net | (45,893) | -- | |
Cash used in investing activities | (54,677) | (7,427) | |
Cash flows from financing activities | |||
Net proceeds from issuances of common stock in public offerings | 111,105 | -- | |
Proceeds from revolving credit facility | 23,424 | -- | |
Repayment of revolving credit facility | (23,424) | -- | |
Repayments on long-term debt | (15,747) | (1,204) | |
Payments of deferred debt issuance costs | (200) | (150) | |
Cash distributions to members | -- | (2,517) | |
Proceeds from common stock issuances | 7,198 | 415 | |
Repurchases of common stock | -- | (315) | |
Tax benefit from stock-based compensation | 2,382 | 31 | |
Net cash provided by (used in) financing activities | 104,738 | (3,740) | |
Net increase in cash and cash equivalents | 35,676 | 9,970 | |
Effect of exchange rate changes on cash | (35) | 92 | |
Cash and cash equivalents at beginning of period | 22,652 | 13,169 | |
Cash and cash equivalents at end of period | $ 58,293 | $ 23,231 | |
* Activity in 2011 resulted from $18.1 million in payments to Oracle/Sun and the related settlement of | |||
accrued payables owed to Oracle/Sun and amounts owed to the Company by Oracle/Sun. |
Use of Non-GAAP Financial Measures
To supplement its financial statements presented in accordance with generally accepted accounting principles, or GAAP, ServiceSource also provides investors with non-GAAP net income (loss) per share and Adjusted EBITDA. A reconciliation of these non-GAAP financial measures to the closest GAAP financial measure is presented in the financial tables below under the heading, "GAAP to Non-GAAP Reconciliation."
ServiceSource believes that the non-GAAP financial information provided in this release can assist investors in understanding and assessing its on-going core operations and prospects for the future and provides an additional tool for investors to use in comparing ServiceSource's financial results with other companies, many of which present similar non-GAAP financial measures to investors. The non-GAAP financial information is also presented because it is the basis upon which our management assesses our financial performance.
Non-GAAP net income per share consists of net income (loss) plus stock-based compensation, amortization of internally-developed software and applicable adjustments for a one-time tax benefit related to the conversion of ServiceSource from a limited liability corporation to a Delaware corporation. Stock-based compensation expenses are expected to vary depending on the number of new grants issued, changes in the company's stock price, stock market volatility, expected option lives and risk-free rates of return, all of which are difficult to estimate.
EBITDA consists of net income (loss) plus depreciation and amortization, interest expense, other expenses, net, and income tax expense and a deduction for income tax benefit. Adjusted EBITDA consists of EBITDA plus non-cash, stock-based compensation expense. In evaluating Adjusted EBITDA, you should be aware that in the future we will incur expenses similar to the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these expenses or any unusual or non-recurring items.
These non-GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP in the United States.
The following table provides a reconciliation of net income (loss) to Adjusted EBITDA:
ServiceSource International, Inc. | ||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | ||||
(In thousands) | ||||
(Unaudited) | ||||
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, | |||
2011 | 2010 | 2011 | 2010 | |
Net income (loss) | $ (2,825) | $ (1,003) | $ 13,458 | $ (1,256) |
Income tax (benefit) provision | 501 | 265 | (21,152) | 1,368 |
Interest expense | 68 | 325 | 452 | 940 |
Other expense, net | (350) | 275 | 559 | 202 |
Depreciation and amortization | 2,621 | 1,533 | 7,109 | 4,436 |
EBITDA | 15 | 1,395 | 426 | 5,690 |
Stock-based compensation | 2,968 | 2,128 | 8,104 | 6,017 |
Adjusted EBITDA | $ 2,983 | $ 3,523 | $ 8,530 | $ 11,707 |
ServiceSource International, Inc. | |||||
GAAP TO NON-GAAP RECONCILIATION | |||||
(Dollars in thousands, except per share data) | |||||
(Unaudited) | |||||
Three Months Ended | Nine Months Ended | ||||
September 30, | September 30, | ||||
2011 | 2010 | 2011 | 2010 | ||
Gross Margin | |||||
GAAP gross margin | $ 22,054 | $ 16,421 | $ 62,323 | $ 44,627 | |
Non-GAAP adjustments: | |||||
Stock-based compensation | ( A ) | 470 | 270 | 1,286 | 843 |
Amortization of internally-developed software | ( B ) | 389 | 287 | 1,196 | 872 |
Non-GAAP gross margin | $ 22,913 | $ 16,978 | $ 64,805 | $ 46,342 | |
Gross Profit % | |||||
GAAP gross margin | 44% | 43% | 43% | 41% | |
Non-GAAP adjustments: | |||||
Stock-based compensation | ( A ) | 1% | 1% | 1% | 1% |
Amortization of internally-developed software | ( B ) | 1% | 1% | 1% | 1% |
Non-GAAP gross margin % | 46% | 45% | 45% | 43% | |
Operating expenses | |||||
GAAP operating expenses | $ 24,660 | $ 16,559 | $ 69,006 | $ 43,373 | |
Stock-based compensation | (2,498) | (1,858) | (6,818) | (5,174) | |
Amortization of internally-developed software | ( A ) | (789) | (264) | (1,922) | (726) |
Non-GAAP operating expenses | $ 21,373 | $ 14,437 | $ 60,266 | $ 37,473 | |
Net Income (Loss) | |||||
GAAP net income (loss) | $ (2,825) | $ (1,003) | $ 13,458 | $ (1,256) | |
Non-GAAP adjustments: | |||||
Stock-based compensation | ( A ) | 2,968 | 2,128 | 8,104 | 6,017 |
Amortization of internally-developed software | ( B ) | 1,178 | 551 | 3,118 | 1,598 |
One-time tax benefit due to conversion to corporation | ( C ) | -- | -- | (21,417) | -- |
Income tax effect on non-GAAP adjustments and impact of normalizing the effective income tax rate |
( D ) | (228) | (511) | (1,147) | (1,723) |
Non-GAAP net income | $ 1,093 | $ 1,165 | $ 2,116 | $ 4,636 | |
Net Income (Loss) Per Share | |||||
GAAP diluted net income (loss) per share | $ (0.04) | $ (0.02) | $ 0.19 | $ (0.02) | |
Non-GAAP adjustments: | |||||
Stock-based compensation | ( A ) | 0.04 | 0.04 | 0.11 | 0.10 |
Amortization of internally-developed software | ( B ) | 0.01 | 0.01 | 0.04 | 0.03 |
One-time tax benefit due to conversion to corporation | ( C ) | -- | -- | (0.30) | -- |
Income tax effect on non-GAAP adjustments and impact of normalizing the effective income tax rate |
|||||
( D ) | 0.00 | (0.01) | (0.01) | (0.03) | |
Non-GAAP diluted net income per share | $ 0.01 | $ 0.02 | $ 0.03 | $ 0.08 | |
Shares used in calculating diluted net incomer per share on a non-GAAP basis |
77,093 | 58,921 | 72,208 | 58,640 | |
Footnotes to GAAP to Non-GAAP Reconciliation | |||||
(A) Stock-based compensation. Included in our GAAP presentation of cost of revenue and operating expenses, stock-based compensation consists of expenses for stock options and awards and purchase rights under our stock options plan. We exclude stock-based compensation expense from our non-GAAP measures because some investors may view it as not reflective of our core operating performance as it is a non-cash expense. |
|||||
(B) Amortization of internally-developed software. Included in our GAAP presentation of cost of revenue and operating expenses, amortization of internally-developed software reflects non cash expense for certain software purchases and software developed or obtained for internal use. We exclude these expenses from our non-GAAP measures because we believe they are not indicative of our core operating performance. |
|||||
(C) One-time tax benefit due to conversion to corporation. We elected to be treated as a corporation under Subchapter C of Chapter 1 of the United States Internal Revenue Code, effective March 1, 2011, and therefore became subject to federal and state tax expense beginning March 1, 2011. As a result of this tax election, we recorded a net deferred tax asset and a one- time non-cash tax benefit of $21.4 million. We excluded the tax benefit from our non-GAAP measures because it is non- recurring and unique to this one time event and is not indicative of our core operating performance. |
|||||
(D) Income tax effect on non-GAAP adjustments and impact of normalizing the effective income tax rate. This adjusts the provision for income taxes to reflect the effect of the non-GAAP items A, B and C noted above on our non-GAAP net income and adjusts the income tax rate to a normalized effective tax rate of 40%. |
ServiceSource International, Inc. | ||||
Revenue by Segment | ||||
(In thousands) | ||||
(Unaudited) | ||||
Three Months Ended September 30, | ||||
2011 | 2010 | |||
$ |
% of Revenue |
$ |
% of Revenue |
|
NALA | $ 31,952 | 64% | $ 26,249 | 68% |
EMEA | 12,365 | 25% | 9,802 | 26% |
APJ | 5,771 | 11% | 2,265 | 6% |
$ 50,088 | 100% | $ 38,316 | 100% | |
Nine Months Ended September 30, | ||||
2011 | 2010 | |||
$ |
% of Revenue |
$ |
% of Revenue |
|
NALA | $ 88,383 | 61% | $ 72,776 | 67% |
EMEA | 41,612 | 29% | 30,599 | 28% |
APJ | 14,727 | 10% | 5,093 | 5% |
$ 144,722 | 100% | $ 108,468 | 100% |
CONTACT: The Blueshirt Group Investor Relations Todd Friedman todd@blueshirtgroup.com Stacie Bosinoff stacie@blueshirtgroup.com 415-217-7721