Date of Report (Date of earliest event reported)
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November 8, 2011
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INTRALINKS HOLDINGS, INC.
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Delaware
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001-34832
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20-8915510
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(State or other jurisdiction of incorporation)
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(Commission File No.)
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(IRS Identification No.)
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150 East 42nd Street, 8th Floor, New York, NY
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10017
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code
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(212) 543-7700
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(Former name or former address, if changed since last report)
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o
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Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
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o
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Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d)
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Exhibits:
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99.1
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Press Release issued by IntraLinks Holdings, Inc. on November 8, 2011.
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INTRALINKS HOLDINGS, INC.
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By:
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/s/ Anthony Plesner
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Anthony Plesner
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Chief Financial Officer
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Exhibit
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Number
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Description
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99.1
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Press Release issued by IntraLinks Holdings, Inc. on November 8, 2011.
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§
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Total revenue of $54.8 million, up 15% year-over-year
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§
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Enterprise revenue of $24.5 million, up 11% year-over-year
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§
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M&A revenue of $21.5 million, up 19% year-over-year
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§
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GAAP net income of $0.8 million or $0.01 per share, compared to a net loss of ($4.0) million or ($0.22) per share for the same quarter last year
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§
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Non-GAAP adjusted net income of $6.0 million or $0.11 per share, compared to non-GAAP adjusted net income of $3.8 million or $0.07 per share for the same quarter last year
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§
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Non-GAAP adjusted EBITDA of $18.0 million, an increase of 8%, compared to $16.7 million for the same quarter last year
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§
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Cash flow from operations of $13.3 million, compared to $11.9 million for the same quarter last year
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·
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Enterprise revenue was $24.5 million, up 11% year-over-year compared to $22.1 million last year
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·
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M&A revenue was $21.5 million, up 19% year-over-year compared to $18.2 million last year
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·
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DCM revenue was $8.3 million, up 8% year-over-year compared to $7.6 million last year
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·
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Other revenue of $0.5 million consisted of an insurance recovery for actual lost revenue under a business interruption policy.
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§
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Non-GAAP gross margin represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, and (2) amortization of intangible assets.
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§
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Non-GAAP adjusted operating income represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets, and (3) costs related to public stock offerings.
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§
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Non-GAAP adjusted net income represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets, (3) costs related to public stock offerings, and (4) costs related to debt repayments. Non-GAAP adjusted net income is calculated using an estimated long-term effective tax rate.
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§
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Non-GAAP adjusted EBITDA represents net income (loss) adjusted to exclude (1) interest expense, net of interest income, (2) income tax provision (benefit), (3) depreciation and amortization, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) amortization of debt issuance costs, (7) loss on extinguishment of debt, (8) other expense (income), net and (9) costs related to public stock offerings.
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§
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Free cash flow represents cash flow from operations less capital expenditures.
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§
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Metrics presented as non-GAAP margins represent the respective non-GAAP measures as a percentage of revenue.
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September 30,
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December 31,
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||||||
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2011
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2010
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||||||
ASSETS
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||||||
Current assets:
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||||||
Cash and cash equivalents
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$ | 47,647 | $ | 50,467 | ||||
Accounts receivable, net of allowances of $2,178 and $2,418, respectively
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41,824 | 37,137 | ||||||
Investments
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20,459 | - | ||||||
Deferred taxes
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19,781 | 18,264 | ||||||
Prepaid expenses
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5,643 | 5,916 | ||||||
Other current assets
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4,429 | 2,457 | ||||||
Total current assets
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139,783 | 114,241 | ||||||
Fixed assets, net
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7,898 | 8,075 | ||||||
Capitalized software, net
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29,153 | 25,676 | ||||||
Goodwill
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215,478 | 215,478 | ||||||
Other intangibles, net
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139,391 | 160,863 | ||||||
Other assets
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1,212 | 2,022 | ||||||
Total assets
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$ | 532,915 | $ | 526,355 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 2,925 | $ | 4,191 | ||||
Accrued expenses and other current liabilities
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18,547 | 22,444 | ||||||
Deferred revenue
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41,533 | 38,043 | ||||||
Total current liabilities
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63,005 | 64,678 | ||||||
Long term debt
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90,843 | 125,886 | ||||||
Deferred taxes
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46,103 | 46,103 | ||||||
Other long term liabilities
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699 | 2,244 | ||||||
Total liabilities
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200,650 | 238,911 | ||||||
Stockholders' equity:
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||||||||
Undesignated Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares
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||||||||
issued and outstanding as of September 30, 2011 and December 31, 2010
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- | - | ||||||
Common stock, $0.001 par value; 300,000,000 shares authorized; 54,204,694 and 52,387,374
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||||||||
shares issued and outstanding as of September 30, 2011 and December 31, 2010, respectively
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54 | 52 | ||||||
Additional paid-in capital
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409,651 | 365,962 | ||||||
Accumulated deficit
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(77,559 | ) | (78,813 | ) | ||||
Accumulated other comprehensive income
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119 | 243 | ||||||
Total stockholders' equity
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332,265 | 287,444 | ||||||
Total liabilities and stockholders' equity
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$ | 532,915 | $ | 526,355 |
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Three Months Ended
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Nine Months Ended
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||||||||||||||
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September 30,
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September 30,
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||||||||||||||
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2011
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2010
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2011
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2010
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||||||||||||
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||||||||||||
Revenue
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$ | 54,319 | $ | 47,874 | $ | 159,955 | $ | 132,214 | ||||||||
Other revenue
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507 | - | 614 | - | ||||||||||||
Total revenue
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54,826 | 47,874 | 160,569 | 132,214 | ||||||||||||
Cost of revenue
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14,439 | 11,916 | 42,192 | 34,947 | ||||||||||||
Gross profit
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40,387 | 35,958 | 118,377 | 97,267 | ||||||||||||
Operating expenses:
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||||||||||||||||
Product development
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3,587 | 5,030 | 14,692 | 13,774 | ||||||||||||
Sales and marketing
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23,734 | 20,130 | 67,461 | 58,256 | ||||||||||||
General and administrative
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10,292 | 7,234 | 29,735 | 20,339 | ||||||||||||
Total operating expenses
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37,613 | 32,394 | 111,888 | 92,369 | ||||||||||||
Income from operations
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2,774 | 3,564 | 6,489 | 4,898 | ||||||||||||
Interest expense, net
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2,552 | 5,862 | 8,146 | 19,998 | ||||||||||||
Amortization of debt issuance costs
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214 | 1,111 | 1,155 | 2,026 | ||||||||||||
Loss on extinguishment of debt
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- | 4,974 | - | 4,974 | ||||||||||||
Other expense (income), net
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515 | (919 | ) | (2,547 | ) | (1,207 | ) | |||||||||
Net loss before income tax
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(507 | ) | (7,464 | ) | (265 | ) | (20,893 | ) | ||||||||
Income tax benefit
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(1,271 | ) | (3,433 | ) | (1,519 | ) | (7,439 | ) | ||||||||
Net income (loss)
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$ | 764 | $ | (4,031 | ) | $ | 1,254 | $ | (13,454 | ) | ||||||
Net income (loss) per common share
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||||||||||||||||
Basic
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$ | 0.01 | $ | (0.22 | ) | $ | 0.02 | $ | (2.19 | ) | ||||||
Diluted
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$ | 0.01 | $ | (0.22 | ) | $ | 0.02 | $ | (2.19 | ) | ||||||
Weighted average number of shares used in
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||||||||||||||||
calculating net income (loss) per share
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||||||||||||||||
Basic
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53,912,637 | 18,056,423 | 53,140,869 | 6,153,359 | ||||||||||||
Diluted
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54,645,578 | 18,056,423 | 54,396,333 | 6,153,359 |
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Nine Months Ended
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|||||||
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September 30,
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|||||||
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2011
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2010
|
||||||
Net income (loss)
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$ | 1,254 | $ | (13,454 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
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||||||||
Depreciation and amortization
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15,401 | 12,137 | ||||||
Stock-based compensation expense
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6,765 | 2,846 | ||||||
Amortization of intangible assets
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21,472 | 21,583 | ||||||
Amortization of debt discount
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- | 116 | ||||||
Amortization of debt issuance cost
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1,155 | 2,026 | ||||||
Provision for bad debts and customer credits
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642 | 332 | ||||||
Loss (gain) on disposal of fixed assets
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227 | (221 | ) | |||||
Change in deferred taxes
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(1,518 | ) | (8,117 | ) | ||||
Gain on interest rate swap
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(3,098 | ) | (1,393 | ) | ||||
Currency remeasurement loss
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357 | - | ||||||
Loss on extinguishment of debt
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- | 4,974 | ||||||
Non-cash interest expense
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- | 4,880 | ||||||
Changes in operating assets and liabilities:
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||||||||
Accounts receivable
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(5,826 | ) | (11,219 | ) | ||||
Prepaid expenses and other current assets
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(2,894 | ) | 242 | |||||
Other assets
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813 | (2,391 | ) | |||||
Accounts payable
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(1,274 | ) | (3,231 | ) | ||||
Accrued expenses and other liabilities
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(2,330 | ) | (1,800 | ) | ||||
Deferred revenue
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3,601 | 8,662 | ||||||
Net cash provided by operating activities
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34,747 | 15,972 | ||||||
Cash flows from investing activities:
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||||||||
Capital expenditures
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(4,519 | ) | (6,550 | ) | ||||
Capitalized software development costs
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(14,414 | ) | (12,470 | ) | ||||
Purchase of short-term investments
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(20,459 | ) | (4,320 | ) | ||||
Sale of short-term investments
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- | 6,810 | ||||||
Net cash used in investing activities
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(39,392 | ) | (16,530 | ) | ||||
Cash flows from financing activities:
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||||||||
Proceeds from exercise of stock options
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1,347 | 240 | ||||||
Proceeds from issuance of common stock
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1,091 | - | ||||||
Offering costs paid in connection with initial public offering and follow-on offerings
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(516 | ) | (1,767 | ) | ||||
Capital lease payments
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- | (27 | ) | |||||
Proceeds from follow-on offering, net of underwriting discounts and commissions
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35,002 | 144,838 | ||||||
Repayments of outstanding principal on long-term debt
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(35,043 | ) | (137,778 | ) | ||||
Prepayment penalty on PIK loan
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- | (4,092 | ) | |||||
Net cash provided by financing activities
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1,881 | 1,414 | ||||||
Effect of foreign exchange rate changes on cash and cash equivalents
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(56 | ) | (41 | ) | ||||
Net (decrease) increase in cash and cash equivalents
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(2,820 | ) | 815 | |||||
Cash and cash equivalents at beginning of period
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50,467 | 30,481 | ||||||
Cash and cash equivalents at end of period
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$ | 47,647 | $ | 31,296 |
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Three Months Ended
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Nine Months Ended
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||||||||||||||
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September 30,
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September 30,
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||||||||||||||
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2011
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2010
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2011
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2010
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||||||||||||
Gross profit
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$ | 40,387 | $ | 35,958 | $ | 118,377 | $ | 97,267 | ||||||||
Gross margin
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73.7%
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75.1%
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73.7%
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73.6%
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||||||||||||
Cost of revenue - stock-based compensation expense
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110 | 36 | 218 | 64 | ||||||||||||
Cost of revenue - amortization of intangible assets
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3,309 | 3,309 | 9,927 | 9,928 | ||||||||||||
Non-GAAP gross profit
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$ | 43,806 | $ | 39,303 | $ | 128,522 | $ | 107,259 | ||||||||
Non-GAAP gross margin
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79.9%
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82.1%
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80.0%
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81.1%
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||||||||||||
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||||||||||||||||
Income from operations
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$ | 2,774 | $ | 3,564 | $ | 6,489 | $ | 4,898 | ||||||||
Stock-based compensation expense
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2,894 | 1,102 | 6,765 | 2,846 | ||||||||||||
Amortization of intangible assets
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7,157 | 7,157 | 21,472 | 21,583 | ||||||||||||
Costs related to public stock offerings
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― | 314 | 57 | 1,221 | ||||||||||||
Non-GAAP adjusted operating income
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$ | 12,825 | $ | 12,137 | $ | 34,783 | $ | 30,548 | ||||||||
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||||||||||||||||
Net loss before income tax
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$ | (507 | ) | $ | (7,464 | ) | $ | (265 | ) | $ | (20,893 | ) | ||||
Stock - based compensation expense
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2,894 | 1,102 | 6,765 | 2,846 | ||||||||||||
Amortization of intangible assets
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7,157 | 7,157 | 21,472 | 21,583 | ||||||||||||
Costs related to public stock offerings
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― | 314 | 57 | 1,221 | ||||||||||||
Costs related to debt repayments
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― | 5,609 | ― | 5,609 | ||||||||||||
Non-GAAP adjusted net income before tax
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9,544 | 6,718 | 28,029 | 10,366 | ||||||||||||
Non-GAAP income tax provision
|
3,560 | 2,922 | 10,231 | 4,043 | ||||||||||||
Non-GAAP adjusted net income
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$ | 5,984 | $ | 3,796 | $ | 17,798 | $ | 6,323 | ||||||||
|
||||||||||||||||
Net income (loss)
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$ | 764 | $ | (4,031 | ) | $ | 1,254 | $ | (13,454 | ) | ||||||
Interest expense, net
|
2,552 | 5,862 | 8,146 | 19,998 | ||||||||||||
Income tax benefit
|
(1,271 | ) | (3,433 | ) | (1,519 | ) | (7,439 | ) | ||||||||
Depreciation and amortization
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5,197 | 4,531 | 15,401 | 12,138 | ||||||||||||
Amortization of intangible assets
|
7,157 | 7,157 | 21,472 | 21,583 | ||||||||||||
Stock-based compensation expense
|
2,894 | 1,102 | 6,765 | 2,846 | ||||||||||||
Amortization of debt issuance costs
|
214 | 1,111 | 1,155 | 2,026 | ||||||||||||
Loss on extinguishment of debt
|
― | 4,974 | ― | 4,974 | ||||||||||||
Other expense (income), net
|
515 | (919 | ) | (2,547 | ) | (1,207 | ) | |||||||||
Costs related to public stock offerings
|
― | 314 | 57 | 1,221 | ||||||||||||
Non-GAAP adjusted EBITDA
|
$ | 18,022 | $ | 16,668 | $ | 50,184 | $ | 42,686 | ||||||||
Non-GAAP adjusted EBITDA margin
|
32.9%
|
34.8%
|
31.3%
|
32.3%
|
||||||||||||
|
||||||||||||||||
Cash flow provided by operations
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$ | 13,275 | $ | 11,887 | $ | 34,747 | $ | 15,972 | ||||||||
Capital expenditures
|
(6,927 | ) | (4,765 | ) | (18,933 | ) | (19,020 | ) | ||||||||
Free cash flow
|
$ | 6,348 | $ | 7,122 | $ | 15,814 | $ | (3,048 | ) |
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Three Months Ending
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|||
|
December 31,
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|||
|
2011
|
|||
Gross profit
|
$ | 38,331 | ||
Gross margin
|
73.7%
|
|||
|
||||
Cost of revenue- stock-based compensation expense
|
110 | |||
Cost of revenue- amortization of intangible assets
|
3,309 | |||
Non-GAAP gross profit
|
$ | 41,750 | ||
|
||||
Non-GAAP gross margin
|
80.3%
|
|||
|
||||
|
||||
Income from operations
|
$ | 2,464 | ||
Stock-based compensation expense
|
2,579 | |||
Amortization of intangible assets
|
7,157 | |||
Non-GAAP operating income
|
$ | 12,200 | ||
|
||||
Non-GAAP operating margin
|
23.5%
|
|||
|
||||
Net income before income tax
|
$ | 1,515 | ||
Stock-based compensation expense
|
2,579 | |||
Amortization of intangible assets
|
7,157 | |||
Non-GAAP net income before income tax
|
11,251 | |||
Non-GAAP income tax provision
|
4,163 | |||
Non-GAAP net income
|
$ | 7,088 | ||
|
||||
Net loss
|
$ | (3,425 | ) | |
Interest expense, net
|
2,467 | |||
Income tax provision
|
4,940 | |||
Depreciation and amortization
|
4,566 | |||
Amortization of intangible assets
|
7,157 | |||
Stock-based compensation expense
|
2,579 | |||
Amortization of debt issuance costs
|
216 | |||
Other income
|
(1,000 | ) | ||
Non-GAAP adjusted EBITDA
|
$ | 17,500 | ||
|
||||
Non-GAAP adjusted EBITDA margin
|
33.7%
|