Delaware | 000-25826 | 77-0201147 |
(State or other jurisdiction of incorporation or organization) | Commission File Number | (I.R.S. Employer Identification Number) |
¨ | 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)) |
¨ | Emerging growth company |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Date: April 30, 2018 | HARMONIC INC. | |||||
By: | /s/ Sanjay Kalra | |||||
Sanjay Kalra | ||||||
Chief Financial Officer |
![]() | ![]() |
• | GAAP revenue of $90.1 million, up 9% year over year; non-GAAP revenue of $90.2 million, up 8% year over year. |
• | Cable Access segment revenue: GAAP $18.4 million; non-GAAP $18.5 million, up over 70% year over year. |
• | Video segment operating profit: $2.0 million, up $7.7 million year over year. |
• | Gross margin: GAAP 52.4% compared to 48.7% in the year ago period; non-GAAP 55.3% compared to 52.1% in the year ago period. |
• | Record backlog and deferred revenue of $224.4 million, up 21.8% year over year. |
• | New CableOS multi-year supply agreement worth over $50 million awarded by a Tier 1 international cable operator. |
• | Surpassed 32,500 OTT channels deployed globally, up over 50% in past six months. |
GAAP | Non-GAAP | |||||||||||||||||||||||
Key Financial Results | Q1 2018 | Q4 2017 | Q1 2017 | Q1 2018 | Q4 2017 | Q1 2017 | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||
Net revenue | $ | 90.1 | $ | 101.0 | $ | 82.9 | $ | 90.2 | $ | 101.1 | $ | 83.5 | ||||||||||||
Net loss | $ | (13.7 | ) | $ | (11.8 | ) | $ | (24.0 | ) | $ | (1.1 | ) | $ | (0.4 | ) | $ | (11.2 | ) | ||||||
Diluted EPS | $ | (0.16 | ) | $ | (0.14 | ) | $ | (0.30 | ) | $ | (0.01 | ) | $ 0.00 | $ | (0.14 | ) | ||||||||
Other Financial Information | Q1 2018 | Q4 2017 | Q1 2017 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Bookings for the quarter | $ | 102.6 | $ | 122.9 | $ | 82.1 | ||||||||||||||||||
Backlog and deferred revenue as of quarter end | $ | 224.4 | $ | 224.4 | $ | 184.2 | ||||||||||||||||||
Cash as of quarter end | $ | 52.0 | $ | 57.0 | $ | 55.3 |
GAAP Financial Guidance | Q2 2018 | 2018 | |||||||||||||||
Low | High | Low | High | ||||||||||||||
(in millions, except percentages and per share data) | |||||||||||||||||
Net Revenue | $ | 88.0 | $ | 98.0 | $ | 375.0 | $ | 425.0 | |||||||||
Video | $ | 70.0 | $ | 76.0 | $ | 285.0 | $ | 315.0 | |||||||||
Cable Access | $ | 18.0 | $ | 22.0 | $ | 90.0 | $ | 110.0 | |||||||||
Gross Margin % | 50.5 | % | 52.5 | % | 48.5 | % | 50.5 | % | |||||||||
Operating Expenses | $ | 52.5 | $ | 54.5 | $ | 217.0 | $ | 225.0 | |||||||||
Operating Income (Loss) | $ | (10.2 | ) | $ | (1.2 | ) | $ | (43.2 | ) | $ | (2.2 | ) | |||||
Tax Benefit (Expense) | $ | (0.7 | ) | $ | (0.7 | ) | $ | (2.8 | ) | $ | (2.8 | ) | |||||
EPS | $ | (0.17 | ) | $ | (0.06 | ) | $ | (0.69 | ) | $ | (0.21 | ) | |||||
Shares | 85.4 | 85.4 | 86.0 | 86.0 | |||||||||||||
Cash | $ | 45.0 | $ | 55.0 | $ | 45.0 | $ | 55.0 |
Non-GAAP Financial Outlook | Q2 2018 | 2018 | |||||||||||||||
Low | High | Low | High | ||||||||||||||
(in millions, except percentages and per share data) | |||||||||||||||||
Net Revenue | $ | 88.0 | $ | 98.0 | $ | 375.0 | $ | 425.0 | |||||||||
Video | $ | 70.0 | $ | 76.0 | $ | 285.0 | $ | 315.0 | |||||||||
Cable Access | $ | 18.0 | $ | 22.0 | $ | 90.0 | $ | 110.0 | |||||||||
Gross Margin % | 52.0 | % | 54.0 | % | 51.0 | % | 52.0 | % | |||||||||
Operating Expenses | $ | 49.0 | $ | 51.0 | $ | 197.0 | $ | 205.0 | |||||||||
Operating Income (Loss) | $ | (5.0 | ) | $ | 4.0 | $ | (15.0 | ) | $ | 26.0 | |||||||
Tax Rate | 16 | % | 16 | % | 16 | % | 16 | % | |||||||||
EPS | $ | (0.07 | ) | $ | 0.02 | $ | (0.22 | ) | $ | 0.18 | |||||||
Shares | 85.4 | 86.0 | 86.0 | 87.0 | |||||||||||||
Cash | $ | 45.0 | $ | 55.0 | $ | 45.0 | $ | 55.0 |
Sanjay Kalra | Nicole Noutsios |
Chief Financial Officer | Investor Relations |
Harmonic Inc. | Harmonic Inc. |
+1.408.490.6031 | +1.510.315.1003 |
March 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 52,045 | $ | 57,024 | |||
Accounts receivable, net | 74,760 | 69,844 | |||||
Inventories | 25,074 | 25,976 | |||||
Prepaid expenses and other current assets | 29,967 | 18,931 | |||||
Total current assets | 181,846 | 171,775 | |||||
Property and equipment, net | 27,703 | 29,265 | |||||
Goodwill | 243,805 | 242,827 | |||||
Intangibles, net | 19,233 | 21,279 | |||||
Other long-term assets | 43,647 | 42,913 | |||||
Total assets | $ | 516,234 | $ | 508,059 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and capital lease obligations, current | $ | 7,551 | $ | 7,610 | |||
Accounts payable | 27,573 | 33,112 | |||||
Income taxes payable | 481 | 233 | |||||
Deferred revenue | 57,629 | 52,429 | |||||
Accrued and other current liabilities | 49,202 | 48,705 | |||||
Total current liabilities | 142,436 | 142,089 | |||||
Convertible notes, long-term | 110,201 | 108,748 | |||||
Other debts and capital lease obligations, long-term | 15,424 | 15,336 | |||||
Income taxes payable, long-term | 927 | 917 | |||||
Other non-current liabilities | 21,273 | 22,626 | |||||
Total liabilities | 290,261 | 289,716 | |||||
Stockholders' equity: | |||||||
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding | — | — | |||||
Common stock, $0.001 par value, 150,000 shares authorized; 85,194 and 82,554 shares issued and outstanding at March 30, 2018 and December 31, 2017, respectively | 85 | 83 | |||||
Additional paid-in capital | 2,280,847 | 2,272,690 | |||||
Accumulated deficit | (2,060,075 | ) | (2,057,812 | ) | |||
Accumulated other comprehensive income | 5,116 | 3,382 | |||||
Total stockholders' equity | 225,973 | 218,343 | |||||
Total liabilities and stockholders' equity | $ | 516,234 | $ | 508,059 |
Three months ended | ||||||||
March 30, 2018 | March 31, 2017 | |||||||
Revenue: | ||||||||
Product | $ | 55,374 | $ | 50,404 | ||||
Service | 34,753 | 32,539 | ||||||
Total net revenue | 90,127 | 82,943 | ||||||
Cost of revenue: | ||||||||
Product | 26,609 | 26,102 | ||||||
Service | 16,335 | 16,433 | ||||||
Total cost of revenue | 42,944 | 42,535 | ||||||
Gross profit | 47,183 | 40,408 | ||||||
Operating expenses: | ||||||||
Research and development | 23,457 | 24,882 | ||||||
Selling, general and administrative | 31,163 | 34,631 | ||||||
Amortization of intangibles | 804 | 774 | ||||||
Restructuring and related charges | 1,086 | 1,279 | ||||||
Total operating expenses | 56,510 | 61,566 | ||||||
Loss from operations | (9,327 | ) | (21,158 | ) | ||||
Interest expense, net | (2,757 | ) | (2,590 | ) | ||||
Other expense, net | (532 | ) | (511 | ) | ||||
Loss before income taxes | (12,616 | ) | (24,259 | ) | ||||
Provision for (benefit from) income taxes | 1,078 | (232 | ) | |||||
Net loss | $ | (13,694 | ) | $ | (24,027 | ) | ||
Net loss per share: | ||||||||
Basic and diluted | $ | (0.16 | ) | $ | (0.30 | ) | ||
Shares used in per share calculation: | ||||||||
Basic and diluted | 83,912 | 79,810 |
Three months ended | |||||||
March 30, 2018 | March 31, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (13,694 | ) | $ | (24,027 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Amortization of intangibles | 2,099 | 2,069 | |||||
Depreciation | 3,456 | 3,599 | |||||
Stock-based compensation | 5,757 | 3,251 | |||||
Amortization of discount on convertible debt | 1,453 | 1,316 | |||||
Amortization of non-cash warrant | 111 | 416 | |||||
Restructuring, asset impairment and loss on retirement of fixed assets | 40 | 187 | |||||
Foreign currency adjustments | 835 | 182 | |||||
Provision for excess and obsolete inventories | 458 | 387 | |||||
Allowance for doubtful accounts, returns and discounts | 1,122 | 2,700 | |||||
Other non-cash adjustments, net | 132 | 72 | |||||
Changes in operating assets and liabilities, net of effects of acquisition: | |||||||
Accounts receivable | (5,925 | ) | 14,388 | ||||
Inventories | 424 | 942 | |||||
Prepaid expenses and other assets | (6,511 | ) | (3,151 | ) | |||
Accounts payable | (5,710 | ) | (6,687 | ) | |||
Deferred revenue | 10,009 | 5,435 | |||||
Income taxes payable | 253 | 6 | |||||
Accrued and other liabilities | (933 | ) | (4,181 | ) | |||
Net cash used in operating activities | (6,624 | ) | (3,096 | ) | |||
Cash flows from investing activities: | |||||||
Proceeds from maturities of investments | — | 3,106 | |||||
Proceeds from sale of investments | — | 3,792 | |||||
Purchases of property and equipment | (1,775 | ) | (3,217 | ) | |||
Net cash provided by (used in) investing activities | (1,775 | ) | 3,681 | ||||
Cash flows from financing activities: | |||||||
Repayment of other debts and capital leases | (448 | ) | (953 | ) | |||
Proceeds from common stock issued to employees | 2,347 | 2,114 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | — | (2,383 | ) | ||||
Net cash provided by (used in) financing activities | 1,899 | (1,222 | ) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 73 | 347 | |||||
Net decrease in cash, cash equivalents and restricted cash | (6,427 | ) | (290 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 58,757 | 57,420 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 52,330 | $ | 57,130 |
March 30, 2018 | December 31, 2017 | ||||||
Cash and cash equivalents | $ | 52,045 | $ | 57,024 | |||
Restricted cash included in prepaid expenses and other current assets | 285 | 530 | |||||
Restricted cash included in other long-term assets | — | 1,203 | |||||
Total cash, cash equivalents and restricted cash | $ | 52,330 | $ | 58,757 |
Three months ended | ||||||||||||||||||||||||||||||||
March 30, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||||||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | ||||||||||||||||||||||||
Product | ||||||||||||||||||||||||||||||||
Video Products | $ | 47,412 | $ | — | $ | 47,412 | 53% | $ | 59,882 | $ | — | $ | 59,882 | 59% | $ | 45,518 | $ | — | $ | 45,518 | 55% | |||||||||||
Cable Access | 7,962 | 67 | 8,029 | 9% | 6,106 | 50 | 6,156 | 6% | 4,886 | $ | 191 | 5,077 | 6% | |||||||||||||||||||
Services and Support | 34,753 | 44 | 34,797 | 39% | 34,986 | 65 | 35,051 | 35% | 32,539 | 336 | 32,875 | 39% | ||||||||||||||||||||
Total | $ | 90,127 | $ | 111 | $ | 90,238 | 100% | $ | 100,974 | $ | 115 | $ | 101,089 | 100% | $ | 82,943 | $ | 527 | $ | 83,470 | 100% | |||||||||||
Geography | ||||||||||||||||||||||||||||||||
Americas | $ | 48,856 | $ | 111 | $ | 48,967 | 54% | $ | 44,563 | $ | 115 | $ | 44,678 | 44% | $ | 37,906 | $ | 416 | $ | 38,322 | 46% | |||||||||||
EMEA | 23,202 | — | 23,202 | 26% | 39,209 | — | 39,209 | 39% | 25,439 | 111 | 25,550 | 31% | ||||||||||||||||||||
APAC | 18,069 | — | 18,069 | 20% | 17,202 | — | 17,202 | 17% | 19,598 | 19,598 | 23% | |||||||||||||||||||||
Total | $ | 90,127 | $ | 111 | $ | 90,238 | 100% | $ | 100,974 | $ | 115 | $ | 101,089 | 100% | $ | 82,943 | $ | 527 | $ | 83,470 | 100% | |||||||||||
Market | ||||||||||||||||||||||||||||||||
Service Provider | $ | 52,217 | $ | 111 | $ | 52,328 | 58% | $ | 53,052 | $ | 115 | $ | 53,167 | 53% | $ | 48,028 | $ | 416 | $ | 48,444 | 58% | |||||||||||
Broadcast and Media | 37,910 | — | 37,910 | 42% | 47,922 | — | 47,922 | 47% | 34,915 | 111 | 35,026 | 42% | ||||||||||||||||||||
Total | $ | 90,127 | $ | 111 | $ | 90,238 | 100% | $ | 100,974 | $ | 115 | $ | 101,089 | 100% | $ | 82,943 | $ | 527 | $ | 83,470 | 100% |
Three months ended March 30, 2018 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 71,748 | $ | 18,490 | $ | 90,238 | $ | (111 | ) | $ | 90,127 | ||||||||
Gross profit | 41,226 | 8,640 | 49,866 | (2,683 | ) | 47,183 | |||||||||||||
Gross margin% | 57.5 | % | 46.7 | % | 55.3 | % | 52.4 | % | |||||||||||
Operating income (loss) | 1,995 | (1,513 | ) | 482 | (9,809 | ) | (9,327 | ) | |||||||||||
Operating margin% | 2.8 | % | (8.2 | )% | 0.5 | % | (10.3 | )% | |||||||||||
Three months ended December 31, 2017 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 87,596 | $ | 13,493 | $ | 101,089 | $ | (115 | ) | $ | 100,974 | ||||||||
Gross profit | 46,639 | 4,034 | 50,673 | (2,101 | ) | 48,572 | |||||||||||||
Gross margin% | 53.2 | % | 29.9 | % | 50.1 | % | 48.1 | % | |||||||||||
Operating income (loss) | 5,752 | (4,192 | ) | 1,560 | (9,651 | ) | (8,091 | ) | |||||||||||
Operating margin% | 6.6 | % | (31.1 | )% | 1.5 | % | (8.0 | )% | |||||||||||
Three months ended March 31, 2017 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 74,453 | $ | 9,017 | $ | 83,470 | $ | (527 | ) | $ | 82,943 | ||||||||
Gross profit | 40,884 | 2,626 | 43,510 | (3,102 | ) | 40,408 | |||||||||||||
Gross margin% | 54.9 | % | 29.1 | % | 52.1 | % | 48.7 | % | |||||||||||
Operating loss | (5,725 | ) | (5,664 | ) | (11,389 | ) | (9,769 | ) | (21,158 | ) | |||||||||
Operating margin% | (7.7 | )% | (62.8 | )% | (13.6 | )% | (25.5 | )% |
Three months ended March 30, 2018 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (loss) from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 90,127 | $ | 47,183 | $ | 56,510 | $ | (9,327 | ) | $ | (3,289 | ) | $ | (13,694 | ) | |||
Accounting impact related to warrant amortization | 111 | 111 | — | 111 | — | 111 | ||||||||||||
Stock-based compensation | — | 515 | (5,242 | ) | 5,757 | — | 5,757 | |||||||||||
Amortization of intangibles | — | 1,295 | (804 | ) | 2,099 | — | 2,099 | |||||||||||
Restructuring and related charges | — | 762 | (1,086 | ) | 1,848 | — | 1,848 | |||||||||||
Avid litigation settlement fees and associated legal fees | — | — | 6 | (6 | ) | — | (6 | ) | ||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,454 | 1,454 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1,294 | ||||||||||||
Total adjustments | 111 | 2,683 | (7,126 | ) | 9,809 | 1,454 | 12,557 | |||||||||||
Non-GAAP | $ | 90,238 | $ | 49,866 | $ | 49,384 | $ | 482 | $ | (1,835 | ) | $ | (1,137 | ) | ||||
As a % of revenue (GAAP) | 52.4 | % | 62.7 | % | (10.3 | )% | (3.6 | )% | (15.2 | )% | ||||||||
As a % of revenue (Non-GAAP) | 55.3 | % | 54.7 | % | 0.5 | % | (2.0 | )% | (1.3 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.16 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.01 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 83,912 | |||||||||||||||||
Three months ended December 31, 2017 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income (loss) from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 100,974 | $ | 48,572 | $ | 56,663 | $ | (8,091 | ) | $ | (3,938 | ) | $ | (11,845 | ) | |||
Accounting impact related to warrant amortization | 115 | 115 | — | 115 | — | 115 | ||||||||||||
Stock-based compensation | — | 747 | (4,756 | ) | 5,503 | — | 5,503 | |||||||||||
Amortization of intangibles | — | 1,295 | (795 | ) | 2,090 | — | 2,090 | |||||||||||
Restructuring and related charges | — | (56 | ) | (1,223 | ) | 1,167 | — | 1,167 | ||||||||||
TVN acquisition- and integration-related costs | — | — | (84 | ) | 84 | — | 84 | |||||||||||
Avid litigation settlement fees | — | — | (692 | ) | 692 | — | 692 | |||||||||||
Loss on impairment of long-term investment | — | — | — | — | 530 | 530 | ||||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,429 | 1,429 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (121 | ) | |||||||||||
Total adjustments | 115 | 2,101 | (7,550 | ) | 9,651 | 1,959 | 11,489 | |||||||||||
Non-GAAP | $ | 101,089 | $ | 50,673 | $ | 49,113 | $ | 1,560 | $ | (1,979 | ) | $ | (356 | ) | ||||
As a % of revenue (GAAP) | 48.1 | % | 56.1 | % | (8.0 | )% | (3.9 | )% | (11.7 | )% | ||||||||
As a % of revenue (Non-GAAP) | 50.1 | % | 48.6 | % | 1.5 | % | (2.0 | )% | (0.4 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.14 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | 0.00 | ||||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 82,014 | |||||||||||||||||
Three months ended March 31, 2017 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 82,943 | $ | 40,408 | $ | 61,566 | $ | (21,158 | ) | $ | (3,101 | ) | $ | (24,027 | ) | |||
Cable Access inventory charge | — | (15 | ) | — | (15 | ) | — | (15 | ) | |||||||||
Acquisition accounting impacts related to TVN deferred revenue | 111 | 111 | — | 111 | — | 111 | ||||||||||||
Accounting impact related to warrant amortization | 416 | 416 | — | 416 | — | 416 | ||||||||||||
Stock-based compensation | — | 445 | (2,806 | ) | 3,251 | — | 3,251 | |||||||||||
Amortization of intangibles | — | 1,295 | (774 | ) | 2,069 | — | 2,069 | |||||||||||
Restructuring and related charges | — | 508 | (1,279 | ) | 1,787 | — | 1,787 | |||||||||||
TVN acquisition-and integration-related costs | — | 342 | (1,808 | ) | 2,150 | — | 2,150 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,316 | 1,316 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 1,744 | ||||||||||||
Total adjustments | $ | 527 | $ | 3,102 | $ | (6,667 | ) | $ | 9,769 | $ | 1,316 | $ | 12,829 | |||||
Non-GAAP | $ | 83,470 | $ | 43,510 | $ | 54,899 | $ | (11,389 | ) | $ | (1,785 | ) | $ | (11,198 | ) | |||
As a % of revenue (GAAP) | 48.7 | % | 74.2 | % | (25.5 | )% | (3.7 | )% | (29.0 | )% | ||||||||
As a % of revenue (Non-GAAP) | 52.1 | % | 65.8 | % | (13.6 | )% | (2.1 | )% | (13.4 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.30 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.14 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 79,810 | |||||||||||||||||
Q2 2018 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $88.0 to $98.0 | $44.3 to $51.3 | $52.5 to $54.5 | $(10.2) to $(1.2) | $(3.3) | $(14.0) to $(5.0) |
Stock-based compensation | — | 0.3 | (2.6) | 2.9 | — | 2.9 |
Amortization of intangibles | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
Restructuring and related charges | — | 0.1 | (0.1) | 0.2 | — | 0.2 |
Non-cash interest expense related to convertible notes | — | — | — | — | 1.5 | 1.5 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $0 to $1.5 |
Total adjustments | — | 1.7 | (3.5) | 5.2 | 1.5 | $6.7 to $8.2 |
Non-GAAP | $88.0 to $98.0 | $46.0 to $53.0 | $49.0 to $51.0 | $(5.0) to $4.0 | $(1.8) | $(5.8) to $1.7 |
As a % of revenue (GAAP) | 50.5% to 52.5% | 53.5% to 62% | (11.5)% to (1)% | (3.5)% | (16)% to (5)% | |
As a % of revenue (Non-GAAP) | 52% to 54% | 50% to 58% | (5.5)% to 4% | (2)% | (6.5)% to 1.5% | |
Diluted net income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.17) to $(0.06) | |||||
Diluted net (loss) income per share-Non-GAAP | $(0.07) to $0.02 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 85.4 | |||||
Shares used to compute diluted net income per share: | ||||||
Non-GAAP | 86.0 |
2018 Outlook | ||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $375.0 to $425.0 | $184.8 to $216.8 | $217.0 to $225.0 | $(43.2) to $(2.2) | $(13.3) | $(59.3) to $(18.3) |
Stock-based compensation | — | 2.0 | (15.4) | 17.4 | — | 17.4 |
Amortization of intangibles | — | 5.2 | (3.2) | 8.4 | — | 8.4 |
Restructuring and related charges | — | 1.0 | (1.4) | 2.4 | — | 2.4 |
Non-cash interest expense related to convertible notes | — | — | — | — | 6.1 | 6.1 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $0 to $6 |
Total adjustments | — | 8.2 | (20.0) | 28.2 | 6.1 | $34.3 to $40.3 |
Non-GAAP | $375.0 to $425.0 | $190.0 to $223.0 | $197.0 to $205.0 | $(15.0) to $26.0 | $(7.2) | $(19.0) to $16.0 |
As a % of revenue (GAAP) | 48.5% to 50.5% | 51% to 60% | (11.5)% to (0.5)% | (3)% | (15.5)% to (4)% | |
As a % of revenue (Non-GAAP) | 51% to 52% | 46.5% to 54.5% | (4)% to 6% | (2)% | (5)% to 4% | |
Diluted income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.69) to $(0.21) | |||||
Diluted net (loss) income per share-Non-GAAP | $(0.22) to $0.18 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 86.0 | |||||
Shares used to compute diluted net income per share: | ||||||
Non-GAAP | 87.0 |
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