Interactive Intelligence Reports 2015 Fourth-Quarter and Fiscal Year Financial Results
• | Record Q4 total revenues of $107.7 million; above guidance and first time over $100 million |
• | Q4 recurring revenues up 24% driven by 53% year-over-year increase in cloud subscriptions |
• | Licensed 24 PureCloud℠ customers in 2015 |
• | Generated Q4 operating cash flow of $13.0 million |
INDIANAPOLIS, Feb. 1, 2016 -- Interactive Intelligence Group Inc. (Nasdaq: ININ), a global leader of cloud services for customer engagement, communications and collaboration, has announced financial results for its fourth quarter and fiscal year ended December 31, 2015.
“The fourth quarter marked the start of the next chapter in our company’s history, as two dozen organizations are now paying PureCloud℠ customers,” said Dr. Donald Brown, Interactive Intelligence founder and CEO. “Demand for PureCloud℠ services grew rapidly during the quarter, and this new cloud platform will now be our primary offering in the customer engagement market.”
Brown added, “We moved to the cloud with our single-tenant CaaS solution, which we’ll continue selling to high-end customers with particularly complex requirements through multi-year agreements. With PureCloud℠, we’re taking a different approach. This innovative cloud platform was designed as a set of stateless, independently load-balanced microservices running atop Amazon Web Services. PureCloud℠ has a comprehensive feature-set capable of delivering successful business outcomes for organizations of all types and sizes. Our sales efforts will encourage the use of monthly contracts that enable organizations to quickly and easily license, configure and expand their implementations over time.”
Brown concluded, “Looking forward, we’re focused on becoming a high-velocity cloud company, not only developing new technology at a faster pace, but also accelerating every aspect of our go-to-market and delivery processes to optimize the opportunity in front of us. We’ll continue to work to strengthen our position as the only provider of world-class customer engagement technology for multi-tenant cloud, private cloud, and on-premises implementations.”
Fourth-Quarter 2015 Financial Highlights:
• | Revenues: Total revenues were $107.7 million, an increase of 16% from $92.6 million in the fourth quarter of 2014. Recurring revenues, which include cloud subscriptions and support fees from on-premises licenses, increased 24% to $63.4 million and accounted for 59% of total revenues. Revenues from cloud subscriptions grew 53% to $29.0 million, from $18.9 million in the same quarter of 2014. License and hardware revenues were $27.7 million and services revenues were $16.6 million, compared to $27.0 million and $14.3 million, respectively, in the 2014 fourth quarter. |
• | Operating Income/(Loss): GAAP operating loss was $(0.7) million, compared to operating income of $2.0 million in the fourth quarter of 2014. Non-GAAP* operating income was $4.5 million, compared to $5.6 million in the same quarter of 2014. |
• | Net Income/(Loss): GAAP net loss was $(3.5) million, or $(0.16) per diluted share based on 21.7 million weighted average diluted shares outstanding, compared to GAAP net loss of $(29.9) million, or $(1.42) per diluted share based on 21.0 million weighted average diluted shares outstanding in the same quarter of 2014. The GAAP net loss during the fourth quarter of 2014 included a non-cash income tax expense of $33.4 million related to the establishment of a valuation allowance for deferred tax assets. |
Non-GAAP net income was $2.6 million, or $0.12 per diluted share, compared to $5.5 million, or $0.26 per diluted share in the same quarter of 2014.
• | Balance sheet: Cash, cash equivalents and investments were $189.5 million as of December 31, 2015, compared to $179.7 million at the end of the 2015 third quarter, and $61.7 million as of December 31, 2014. Total deferred revenues were $135.4 million as of December 31, 2015, up 12% from $121.2 million at the end of the 2015 third quarter, and up 22% from $110.7 million at the end of 2014. |
• | Cash Flows: The company generated $13.0 million of cash from operating activities during the fourth quarter of 2015, compared to $1.3 million in the 2014 fourth quarter. Capital expenditures totaled $3.1 million, primarily for IT infrastructure to support the company’s product offerings. |
Fiscal Year 2015 Financial Highlights:
• | Revenues: Total revenues were $390.9 million, an increase of 15% from $341.3 million in 2014. Recurring revenues, which include cloud subscriptions and support fees from on-premises licenses, increased 23% to $230.7 million and accounted for 59% of total revenues. Revenues from cloud subscriptions grew 62% to $97.9 million, from $60.5 million in 2014. License and hardware revenues were $99.0 million and services revenues were $61.2 million, compared to $99.2 million and $54.7 million, respectively, in 2014. |
• | Operating Income/(Loss): GAAP operating loss was $(15.4) million, compared to an operating loss of $(17.8) million in 2014. Non-GAAP operating income was $3.3 million, compared to a non-GAAP operating loss of $(1.5) million in 2014. |
• | Net Income/(Loss): GAAP net loss was $(21.8) million, or $(1.01) per diluted share based on 21.6 million weighted average diluted shares outstanding, compared to GAAP net loss of $(41.4) million, or $(1.98) per diluted share based on 20.9 million weighted average diluted shares outstanding in 2014. The GAAP net loss in 2014 included a non-cash income tax expense of $33.4 million related to the establishment of a valuation allowance for deferred tax assets. |
Non-GAAP net income was $1.1 million, or $0.06 per diluted share, compared to $1.7 million, or $0.09 per diluted share in 2014.
• | Cash Flows: The company generated $25.6 million of cash from operating activities during 2015, compared to using $1.7 million in 2014. Capital expenditures totaled $17.6 million in 2015, primarily for IT infrastructure to support the company’s product offerings. |
* | A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included with this press release. An explanation of these measures is also included below under the heading “Non-GAAP Measures.” |
The company will host a conference call today at 4:30 p.m. Eastern time (EST) featuring Dr. Brown and the company's CFO, Ashley Vukovits. A live Q&A session will follow opening remarks.
To access the teleconference, dial 1 877.324.1969 at least five minutes prior to the start of the call. Ask for the teleconference by the following name: “Interactive Intelligence fourth-quarter earnings call.” The teleconference will also be broadcast live on the company's investor relations' page at http://investors.inin.com. An archive of the teleconference will be posted following the call.
About Interactive Intelligence
Interactive Intelligence Group Inc. (Nasdaq: ININ) is a global leader of cloud services for customer engagement, communications and collaboration designed to help businesses worldwide improve service, increase productivity and reduce costs. Backed by a 20-plus year history of industry firsts, 100-plus patent applications, and more than 6,000 global customer deployments, Interactive offers customers fast return on investment, along with robust reliability, scalability and security. It's also the only company recognized by the top global industry analyst firm as a leader in both the cloud and on-premises customer engagement markets. The company is headquartered in Indianapolis, Indiana and has more than 2,000 employees worldwide. For more information, visit www.inin.com.
Non-GAAP Measures
The non-GAAP measures shown in this release include revenue which was not recognized on a GAAP basis due to purchase accounting adjustments, exclude non-cash stock-based compensation expense, certain acquisition-related expenses, the amortization of certain intangible assets related to acquisitions by the company, non-cash expense related to establishing the valuation allowance for our deferred tax assets, and the amortization of debt discounts and issuance costs, and adjust for non-GAAP income tax expense. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included with the financial information included in this press release. These measures are not in accordance with, or an alternative for, GAAP and may be different from non-GAAP measures used by other companies. Stock-based compensation expense, amortization of intangibles related to acquisitions, expense related to the valuation allowance for our deferred tax assets and amortization of debt discounts and issuance costs are non-cash, and non-GAAP income tax expense is pro forma based on non-GAAP earnings. Management believes that the presentation of non-GAAP results, when shown in conjunction with corresponding GAAP measures, provides useful information to management and investors regarding financial and business trends related to the company's results of operations. Further, our management believes that these non-GAAP measures improve management's and investors' ability to compare the company's financial performance with other companies in the technology industry. Because stock-based compensation expense, certain acquisition-related expenses, amortization of intangibles related to acquisitions and amortization of debt discounts and issuance costs amounts can vary significantly between companies, it is useful to compare results excluding these amounts. Our management also reviews financial statements that exclude stock-based compensation expense, certain acquisition-related expenses, amortization of intangibles amounts related to acquisitions, expense related to the valuation allowance for our deferred tax assets, amortization of debt discounts and issuance costs, and pro forma income tax expense for its internal budgets.
Forward Looking Statements
This release may contain certain forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: rapid technological changes and competitive pressures in the industry; worldwide economic conditions and their impact on customer purchasing decisions; the company's ability: to maintain profitability; to manage successfully its growth; to manage successfully its increasingly complex third-party relationships resulting from the software and hardware components being licensed or sold with its solutions; to maintain successful relationships with certain suppliers which may be impacted by the competition in the technology industry; to maintain successful relationships with its current and any new partners; to maintain and improve its current products; to develop new products; to protect its proprietary rights and sensitive customer information adequately; to improve the company’s brand and name recognition; to successfully integrate acquired businesses; and other factors described in the company's SEC filings, including the company's latest annual report on Form 10-K.
Interactive Intelligence is the owner of the marks INTERACTIVE INTELLIGENCE, its associated LOGO and numerous other marks. All other trademarks mentioned in this document are the property of their respective owners.
ININ-G
Contacts:
Seth Potter
Investor Relations
ICR, Inc.
+1 646.277.1230
seth.potter@icrinc.com
Christine Holley
Senior Director, Market Communications
Interactive Intelligence
+1 317.715.8220
christine.holley@inin.com
###
Interactive Intelligence Group, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Revenues: | ||||||||||||||||
Recurring | $ | 63,411 | $ | 51,252 | $ | 230,697 | $ | 187,373 | ||||||||
License and hardware | 27,702 | 27,042 | 99,001 | 99,200 | ||||||||||||
Services | 16,574 | 14,262 | 61,164 | 54,723 | ||||||||||||
Total revenues | 107,687 | 92,556 | 390,862 | 341,296 | ||||||||||||
Costs of revenues (1)(2): | ||||||||||||||||
Costs of recurring | 22,524 | 17,721 | 82,147 | 63,917 | ||||||||||||
Costs of license and hardware | 8,141 | 7,457 | 26,999 | 28,089 | ||||||||||||
Costs of services | 10,391 | 10,691 | 44,474 | 44,056 | ||||||||||||
Total costs of revenues | 41,056 | 35,869 | 153,620 | 136,062 | ||||||||||||
Gross profit | 66,631 | 56,687 | 237,242 | 205,234 | ||||||||||||
Operating expenses (1)(2): | ||||||||||||||||
Sales and marketing | 32,853 | 29,584 | 130,237 | 119,143 | ||||||||||||
Research and development | 22,131 | 14,249 | 73,198 | 59,482 | ||||||||||||
General and administrative | 12,345 | 10,844 | 49,219 | 44,388 | ||||||||||||
Total operating expenses | 67,329 | 54,677 | 252,654 | 223,013 | ||||||||||||
Operating (loss) income | (698 | ) | 2,010 | (15,412 | ) | (17,779 | ) | |||||||||
Other (expense) income: | ||||||||||||||||
Interest (expense) income, net | (1,704 | ) | 180 | (4,109 | ) | 1,011 | ||||||||||
Other income (expense) | 51 | (62 | ) | (932 | ) | (727 | ) | |||||||||
Total other (expense) income | (1,653 | ) | 118 | (5,041 | ) | 284 | ||||||||||
(Loss) Income before income taxes | (2,351 | ) | 2,128 | (20,453 | ) | (17,495 | ) | |||||||||
Income tax expense | (1,181 | ) | (31,991 | ) | (1,374 | ) | (23,872 | ) | ||||||||
Net loss | $ | (3,532 | ) | $ | (29,863 | ) | $ | (21,827 | ) | $ | (41,367 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.16 | ) | $ | (1.42 | ) | $ | (1.01 | ) | $ | (1.98 | ) | ||||
Diluted | (0.16 | ) | (1.42 | ) | (1.01 | ) | (1.98 | ) | ||||||||
Shares used to compute net loss per share: | ||||||||||||||||
Basic | 21,732 | 21,015 | 21,609 | 20,930 | ||||||||||||
Diluted | 21,732 | 21,015 | 21,609 | 20,930 | ||||||||||||
(1) Amounts include amortization of purchased intangibles from business combinations, as follows: | ||||||||||||||||
Costs of license and hardware | $ | 183 | $ | 177 | $ | 715 | $ | 540 | ||||||||
General and administrative | 423 | 461 | 1,753 | 1,881 | ||||||||||||
Total intangible amortization expense | $ | 606 | $ | 638 | $ | 2,468 | $ | 2,421 | ||||||||
(2) Amounts include stock-based compensation expense, as follows: | ||||||||||||||||
Costs of recurring revenues | $ | 358 | $ | 286 | $ | 1,828 | $ | 1,345 | ||||||||
Costs of services revenues | 241 | 94 | 717 | 432 | ||||||||||||
Sales and marketing | 1,045 | 696 | 3,959 | 4,077 | ||||||||||||
Research and development | 1,828 | 980 | 5,273 | 4,027 | ||||||||||||
General and administrative | 1,075 | 925 | 4,386 | 3,378 | ||||||||||||
Total stock-based compensation expense | $ | 4,547 | $ | 2,981 | $ | 16,163 | $ | 13,259 | ||||||||
Interactive Intelligence Group, Inc. | ||||||||||||||||
Reconciliation of Supplemental Financial Information | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP recurring revenue gross profit, as reported | $ | 40,887 | $ | 33,531 | $ | 148,550 | $ | 123,456 | ||||||||
Purchase accounting adjustments | 2 | 3 | 10 | 17 | ||||||||||||
Non-cash stock-based compensation expense | 358 | 286 | 1,828 | 1,345 | ||||||||||||
Non-GAAP recurring revenue gross profit | $ | 41,247 | $ | 33,820 | $ | 150,388 | $ | 124,818 | ||||||||
Non-GAAP recurring revenue gross margin | 65.0 | % | 66.0 | % | 65.2 | % | 66.6 | % | ||||||||
GAAP license and hardware revenue gross profit, as reported | $ | 19,561 | $ | 19,585 | $ | 72,002 | $ | 71,111 | ||||||||
Acquired technology | 183 | 177 | 715 | 540 | ||||||||||||
Non-GAAP license and hardware revenue gross profit | $ | 19,744 | $ | 19,762 | $ | 72,717 | $ | 71,651 | ||||||||
Non-GAAP license and hardware revenue gross margin | 71.3 | % | 73.1 | % | 73.5 | % | 72.2 | % | ||||||||
GAAP services revenue gross profit, as reported | $ | 6,183 | $ | 3,571 | $ | 16,690 | $ | 10,667 | ||||||||
Non-cash stock-based compensation expense | 241 | 94 | 717 | 432 | ||||||||||||
Non-GAAP services revenue gross profit | $ | 6,424 | $ | 3,665 | $ | 17,407 | $ | 11,099 | ||||||||
Non-GAAP services revenue gross margin | 38.8 | % | 25.7 | % | 28.5 | % | 20.3 | % | ||||||||
GAAP gross profit, as reported | $ | 66,631 | $ | 56,687 | $ | 237,242 | $ | 205,234 | ||||||||
Purchase accounting adjustments | 2 | 3 | 10 | 17 | ||||||||||||
Acquired technology | 183 | 177 | 715 | 540 | ||||||||||||
Non-cash stock-based compensation expense | 599 | 380 | 2,545 | 1,777 | ||||||||||||
Non-GAAP gross profit | $ | 67,415 | $ | 57,247 | $ | 240,512 | $ | 207,568 | ||||||||
Non-GAAP gross margin | 62.6 | % | 61.8 | % | 61.5 | % | 60.8 | % | ||||||||
GAAP operating (loss) income, as reported | $ | (698 | ) | $ | 2,010 | $ | (15,412 | ) | $ | (17,779 | ) | |||||
Purchase accounting adjustments | 631 | 643 | 2,502 | 3,050 | ||||||||||||
Non-cash stock-based compensation expense | 4,547 | 2,981 | 16,163 | 13,259 | ||||||||||||
Non-GAAP operating income (loss) | $ | 4,480 | $ | 5,634 | $ | 3,253 | $ | (1,470 | ) | |||||||
Non-GAAP operating margin | 4.2 | % | 6.1 | % | 0.8 | % | (0.4 | )% | ||||||||
GAAP net loss, as reported | $ | (3,532 | ) | $ | (29,863 | ) | $ | (21,827 | ) | $ | (41,367 | ) | ||||
Purchase accounting adjustments | 631 | 643 | 2,502 | 3,050 | ||||||||||||
Non-cash stock-based compensation expense | 4,547 | 2,981 | 16,163 | 13,259 | ||||||||||||
Amortization of debt discount and issuance costs | 1,556 | — | 3,603 | — | ||||||||||||
Deferred tax asset valuation allowance | — | 33,420 | — | 33,420 | ||||||||||||
Non-GAAP income tax expense adjustment | (606 | ) | (1,649 | ) | 648 | (6,665 | ) | |||||||||
Non-GAAP net income | $ | 2,596 | $ | 5,532 | $ | 1,089 | $ | 1,697 | ||||||||
GAAP diluted loss per share, as reported | $ | (0.16 | ) | $ | (1.42 | ) | $ | (1.01 | ) | $ | (1.98 | ) | ||||
Purchase accounting adjustments | 0.03 | 0.03 | 0.12 | 0.15 | ||||||||||||
Non-cash stock-based compensation expense | 0.21 | 0.14 | 0.75 | 0.63 | ||||||||||||
Amortization of debt discount and issuance costs | 0.07 | — | 0.17 | — | ||||||||||||
Deferred tax asset valuation allowance | — | 1.59 | — | 1.60 | ||||||||||||
Non-GAAP income tax expense adjustment | (0.03 | ) | (0.08 | ) | 0.03 | (0.31 | ) | |||||||||
Non-GAAP diluted income per share | $ | 0.12 | $ | 0.26 | $ | 0.06 | $ | 0.09 | ||||||||
Interactive Intelligence Group, Inc. | ||||||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA | ||||||||||||||||
Net loss | $ | (3,532 | ) | $ | (29,863 | ) | $ | (21,827 | ) | $ | (41,367 | ) | ||||
Depreciation | 4,323 | 4,411 | 16,909 | 15,787 | ||||||||||||
Amortization | 2,989 | 638 | 8,653 | 2,421 | ||||||||||||
Interest expense (income), net | 1,704 | (180 | ) | 4,109 | (1,011 | ) | ||||||||||
Income tax expense | 1,181 | 31,991 | 1,374 | 23,872 | ||||||||||||
Stock-based compensation expense | 4,547 | 2,981 | 16,163 | 13,259 | ||||||||||||
Acquisition-related expenses | 23 | 2 | 24 | 612 | ||||||||||||
Other (income) expense | (51 | ) | 62 | 932 | 727 | |||||||||||
Adjusted EBITDA | $ | 11,184 | $ | 10,042 | $ | 26,337 | $ | 14,300 | ||||||||
Interactive Intelligence Group, Inc. | ||||||||||||||||
Comprehensive Loss | ||||||||||||||||
(in thousands) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Net loss | $ | (3,532 | ) | $ | (29,863 | ) | $ | (21,827 | ) | $ | (41,367 | ) | ||||
Other comprehensive loss: | ||||||||||||||||
Foreign currency translation adjustment | (587 | ) | (1,760 | ) | (5,611 | ) | (3,745 | ) | ||||||||
Net unrealized investment loss - net of tax | (175 | ) | (19 | ) | (72 | ) | (140 | ) | ||||||||
Comprehensive loss | $ | (4,294 | ) | $ | (31,642 | ) | $ | (27,510 | ) | $ | (45,252 | ) | ||||
Interactive Intelligence Group, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
December 31, | December 31, | |||||||
2015 | 2014 | |||||||
Assets | (unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 94,808 | $ | 36,168 | ||||
Short-term investments | 64,182 | 20,041 | ||||||
Accounts receivable, net | 106,950 | 87,413 | ||||||
Prepaid expenses | 32,709 | 29,417 | ||||||
Other current assets | 13,264 | 14,655 | ||||||
Total current assets | 311,913 | 187,694 | ||||||
Long-term investments | 30,503 | 5,495 | ||||||
Property and equipment, net | 44,837 | 44,785 | ||||||
Capitalized software, net | 43,783 | 33,598 | ||||||
Goodwill | 41,848 | 43,732 | ||||||
Intangible assets, net | 14,427 | 16,517 | ||||||
Other assets, net | 6,222 | 6,902 | ||||||
Total assets | $ | 493,533 | $ | 338,723 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 10,571 | $ | 10,236 | ||||
Accrued liabilities | 17,157 | 18,299 | ||||||
Accrued compensation and related expenses | 18,910 | 19,211 | ||||||
Deferred license and hardware revenues | 7,823 | 5,945 | ||||||
Deferred recurring revenues | 92,773 | 76,647 | ||||||
Deferred services revenues | 14,979 | 9,925 | ||||||
Total current liabilities | 162,213 | 140,263 | ||||||
Convertible notes | 118,022 | — | ||||||
Long-term deferred revenues | 19,834 | 18,158 | ||||||
Deferred tax liabilities, net | 2,143 | 2,437 | ||||||
Other long-term liabilities | 7,291 | 7,135 | ||||||
Total liabilities | 309,503 | 167,993 | ||||||
Shareholders' equity: | ||||||||
Common stock | 218 | 213 | ||||||
Additional paid-in-capital | 237,496 | 196,691 | ||||||
Accumulated other comprehensive loss | (11,244 | ) | (5,561 | ) | ||||
Accumulated deficit | (42,440 | ) | (20,613 | ) | ||||
Total shareholders' equity | 184,030 | 170,730 | ||||||
Total liabilities and shareholders' equity | $ | 493,533 | $ | 338,723 | ||||
Interactive Intelligence Group, Inc. | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2015 | 2014 | |||||||
(unaudited) | ||||||||
Operating activities: | ||||||||
Net loss | $ | (21,827 | ) | $ | (41,367 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation | 16,909 | 15,787 | ||||||
Amortization | 8,653 | 2,421 | ||||||
Other non-cash items | (2,221 | ) | (1,033 | ) | ||||
Stock-based compensation expense | 16,163 | 13,259 | ||||||
Deferred income taxes | (294 | ) | 23,550 | |||||
Amortization (accretion) of investment premium (discount) | (750 | ) | 523 | |||||
Loss on disposal of fixed assets | 62 | 76 | ||||||
Amortization of debt issuance costs | 401 | — | ||||||
Amortization of debt discount | 3,203 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (19,537 | ) | (6,999 | ) | ||||
Prepaid expenses | (3,261 | ) | (7,374 | ) | ||||
Other current assets | 1,472 | (1,257 | ) | |||||
Accounts payable | 335 | 1,509 | ||||||
Accrued liabilities | 1,601 | 1,371 | ||||||
Accrued compensation and related expenses | (301 | ) | 1,717 | |||||
Deferred licenses and hardware revenues | 1,999 | (4,355 | ) | |||||
Deferred recurring revenues | 15,878 | 17 | ||||||
Deferred services revenues | 6,857 | (943 | ) | |||||
Other assets and liabilities | 290 | 1,382 | ||||||
Net cash provided by (used in) operating activities | 25,632 | (1,716 | ) | |||||
Investing activities: | ||||||||
Sales of available-for-sale investments | 26,659 | 48,750 | ||||||
Purchases of available-for-sale investments | (95,131 | ) | (32,967 | ) | ||||
Purchases of property and equipment | (17,579 | ) | (21,363 | ) | ||||
Capitalized software | (15,284 | ) | (20,417 | ) | ||||
Acquisitions, net of cash acquired | (733 | ) | (9,173 | ) | ||||
Unrealized loss (gain) on investment | 1 | (33 | ) | |||||
Net cash used in investing activities | (102,067 | ) | (35,203 | ) | ||||
Financing activities: | ||||||||
Proceeds from issuance of convertible debt | 150,000 | — | ||||||
Payment for debt issuance costs | (4,854 | ) | — | |||||
Payment for capped call premiums | (12,750 | ) | — | |||||
Principal payments on capital lease obligations | (89 | ) | — | |||||
Proceeds from stock options exercised | 4,704 | 8,610 | ||||||
Proceeds from issuance of common stock | 1,595 | 1,320 | ||||||
Tax withholding on restricted stock awards | (3,531 | ) | (2,724 | ) | ||||
Net cash provided by financing activities | 135,075 | 7,206 | ||||||
Net increase (decrease) in cash and cash equivalents | 58,640 | (29,713 | ) | |||||
Cash and cash equivalents, beginning of period | 36,168 | 65,881 | ||||||
Cash and cash equivalents, end of period | $ | 94,808 | $ | 36,168 | ||||
Cash paid during the period for: | ||||||||
Interest | $ | 979 | $ | — | ||||
Income taxes | 1,312 | 2,410 | ||||||
Other non-cash item: | ||||||||
Purchases of property and equipment payable at end of period | 116 | 1,761 | ||||||