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 29, 2019 | HARMONIC INC. | |||||
By: | /s/ Sanjay Kalra | |||||
Sanjay Kalra | ||||||
Chief Financial Officer |
• | Revenue: GAAP $80.1 million, down 11.1% year over year; non-GAAP $80.1 million, down 11.2% year over year. |
• | SaaS and service revenue: 34.6% of total revenue, compared to 29% in the year ago period. |
• | SaaS and service gross margin: GAAP 59.6% and non-GAAP 61.3%, an increase of 690 and 500 basis points, respectively, year over year. |
• | Gross margin: GAAP 52.2%, compared to 52.4% in the year ago period; non-GAAP 54.5%, compared to 55.3% in the year ago period. |
• | Operating expenses: GAAP $50.3 million, compared to $56.5 million in the year ago period; non-GAAP $47.5 million, compared to $49.4 million in the year ago period. |
• | Video segment operating income: $2.0 million, seventh consecutive quarter of positive segment operating income. |
• | Ended Q1 with cash of $69.9 million, up $3.9 million quarter over quarter. |
• | CableOS deployments continued to scale, over 670,000 served cable modems, up 24% quarter over quarter. |
• | CableOS global design win momentum continued with 32 deployments and trials underway, up 10% quarter over quarter. |
• | Video SaaS customer base increased from 19 to 25 customers, up 32% quarter over quarter. |
• | Over 6.5 million consumers served by Video SaaS, up 70% year over year. |
GAAP | Non-GAAP | |||||||||||||||||||||||
Key Financial Results | Q1 2019 | Q4 2018 | Q1 2018 | Q1 2019 | Q4 2018 | Q1 2018 | ||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||
Net revenue | $ | 80.1 | $ | 113.7 | $ | 90.1 | $ | 80.1 | $ | 113.6 | $ | 90.2 | ||||||||||||
Net income (loss) | $ | (11.3 | ) | $ | 3.3 | $ | (13.7 | ) | $ | (4.8 | ) | $ | 9.7 | $ | (1.1 | ) | ||||||||
Diluted EPS | $ | (0.13 | ) | $ | 0.04 | $ | (0.16 | ) | $ | (0.05 | ) | $ | 0.11 | $ | (0.01 | ) | ||||||||
Other Financial Information | Q1 2019 | Q4 2018 | Q1 2018 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Recurring revenue* | $ | 27.7 | $ | 30.5 | $ | 26.1 | ||||||||||||||||||
Recurring revenue as % of total revenue | 34.6 | % | 26.8 | % | 29.0 | % | ||||||||||||||||||
Bookings for the quarter | $ | 81.0 | $ | 92.8 | $ | 102.6 | ||||||||||||||||||
Backlog and deferred revenue as of quarter end | $ | 187.2 | $ | 186.4 | $ | 224.4 | ||||||||||||||||||
Cash as of quarter end | $ | 69.9 | $ | 66.0 | $ | 52.0 |
GAAP Financial Guidance | Q2 2019 | 2019 | ||||||||||||||
Low | High | Low | High | |||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||
Net Revenue | $ | 80.0 | $ | 90.0 | $ | 385.0 | $ | 430.0 | ||||||||
Video | $ | 70.0 | $ | 75.0 | $ | 285.0 | $ | 300.0 | ||||||||
Cable Access | $ | 10.0 | $ | 15.0 | $ | 100.0 | $ | 130.0 | ||||||||
Gross Margin % | 50.5 | % | 51.5 | % | 48.2 | % | 51.8 | % | ||||||||
Operating Expenses | $ | 54.5 | $ | 55.5 | $ | 210.5 | $ | 220.5 | ||||||||
Operating Income (Loss) | $ | (15.1 | ) | $ | (8.1 | ) | $ | (34.9 | ) | $ | 12.2 | |||||
Tax Expense | $ | (0.7 | ) | $ | (0.7 | ) | $ | (2.3 | ) | $ | (2.3 | ) | ||||
EPS | $ | (0.21 | ) | $ | (0.14 | ) | $ | (0.56 | ) | $ | (0.04 | ) | ||||
Shares | 88.9 | 88.9 | 89.3 | 89.3 | ||||||||||||
Cash | $ | 60.0 | $ | 70.0 | $ | 65.0 | $ | 85.0 |
Non-GAAP Financial Guidance | Q2 2019 | 2019 | ||||||||||||||
Low | High | Low | High | |||||||||||||
(in millions, except percentages and per share data) | ||||||||||||||||
Net Revenue | $ | 80.0 | $ | 90.0 | $ | 385.0 | $ | 430.0 | ||||||||
Video | $ | 70.0 | $ | 75.0 | $ | 285.0 | $ | 300.0 | ||||||||
Cable Access | $ | 10.0 | $ | 15.0 | $ | 100.0 | $ | 130.0 | ||||||||
Gross Margin % | 52.5 | % | 53.5 | % | 50.0 | % | 53.5 | % | ||||||||
Operating Expenses | $ | 51.0 | $ | 52.0 | $ | 195.0 | $ | 205.0 | ||||||||
Operating Income (Loss) | $ | (10.0 | ) | $ | (3.0 | ) | $ | (12.5 | ) | $ | 34.6 | |||||
Tax Rate | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||
EPS | $ | (0.11 | ) | $ | (0.05 | ) | $ | (0.19 | ) | $ | 0.27 | |||||
Shares | 88.9 | 88.9 | 89.3 | 91.0 | ||||||||||||
Cash | $ | 60.0 | $ | 70.0 | $ | 65.0 | $ | 85.0 |
Sanjay Kalra | Nicole Noutsios |
Chief Financial Officer | Investor Relations |
Harmonic Inc. | Harmonic Inc. |
+1.408.490.6031 | +1.510.315.1003 |
March 29, 2019 | December 31, 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 69,916 | $ | 65,989 | |||
Accounts receivable, net | 58,930 | 81,795 | |||||
Inventories | 29,325 | 25,638 | |||||
Prepaid expenses and other current assets | 22,900 | 23,280 | |||||
Total current assets | 181,071 | 196,702 | |||||
Property and equipment, net | 20,976 | 22,321 | |||||
Operating lease right-of-use assets | 21,616 | — | |||||
Goodwill | 239,848 | 240,618 | |||||
Intangibles, net | 10,704 | 12,817 | |||||
Other long-term assets | 39,962 | 38,377 | |||||
Total assets | $ | 514,177 | $ | 510,835 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Other debts and capital lease obligations, current | $ | 7,124 | $ | 7,175 | |||
Accounts payable | 25,436 | 33,778 | |||||
Income taxes payable | 884 | 1,099 | |||||
Deferred revenue | 47,422 | 41,592 | |||||
Accrued and other current liabilities | 53,238 | 52,761 | |||||
Total current liabilities | 134,104 | 136,405 | |||||
Convertible notes, long-term | 116,413 | 114,808 | |||||
Other debts and capital lease obligations, long-term | 12,402 | 12,684 | |||||
Income taxes payable, long-term | 466 | 460 | |||||
Other non-current liabilities | 30,231 | 18,228 | |||||
Total liabilities | 293,616 | 282,585 | |||||
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; 88,784 and 87,057 shares issued and outstanding at March 29, 2019 and December 31, 2018, respectively | 89 | 87 | |||||
Additional paid-in capital | 2,300,259 | 2,296,795 | |||||
Accumulated deficit | (2,077,322 | ) | (2,067,416 | ) | |||
Accumulated other comprehensive loss | (2,465 | ) | (1,216 | ) | |||
Total stockholders' equity | 220,561 | 228,250 | |||||
Total liabilities and stockholders' equity | $ | 514,177 | $ | 510,835 |
Three months ended | |||||||
March 29, 2019 | March 30, 2018 | ||||||
Revenue: | |||||||
Appliance and integration | $ | 52,365 | $ | 63,986 | |||
SaaS and service | 27,741 | 26,141 | |||||
Total net revenue | 80,106 | 90,127 | |||||
Cost of revenue: | |||||||
Appliance and integration | 27,054 | 30,576 | |||||
SaaS and service | 11,203 | 12,368 | |||||
Total cost of revenue | 38,257 | 42,944 | |||||
Gross profit | 41,849 | 47,183 | |||||
Operating expenses: | |||||||
Research and development | 21,401 | 23,457 | |||||
Selling, general and administrative | 28,011 | 31,163 | |||||
Amortization of intangibles | 788 | 804 | |||||
Restructuring and related charges | 57 | 1,086 | |||||
Total operating expenses | 50,257 | 56,510 | |||||
Loss from operations | (8,408 | ) | (9,327 | ) | |||
Interest expense, net | (2,906 | ) | (2,757 | ) | |||
Other expense, net | (311 | ) | (532 | ) | |||
Loss before income taxes | (11,625 | ) | (12,616 | ) | |||
Provision for (benefit from) income taxes | (319 | ) | 1,078 | ||||
Net loss | $ | (11,306 | ) | $ | (13,694 | ) | |
Net loss per share: | |||||||
Basic and diluted | $ | (0.13 | ) | $ | (0.16 | ) | |
Shares used in per share calculation: | |||||||
Basic and diluted | 88,165 | 83,912 |
Three months ended | |||||||
March 29, 2019 | March 30, 2018 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (11,306 | ) | $ | (13,694 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Amortization of intangibles | 2,083 | 2,099 | |||||
Depreciation | 2,846 | 3,456 | |||||
Stock-based compensation | 2,113 | 5,757 | |||||
Amortization of discount on convertible debt | 1,605 | 1,453 | |||||
Amortization of non-cash warrant | 25 | 111 | |||||
Restructuring, asset impairment and loss on retirement of fixed assets | 103 | 40 | |||||
Deferred income taxes | (538 | ) | — | ||||
Foreign currency adjustments | (638 | ) | 835 | ||||
Provision for excess and obsolete inventories | 254 | 458 | |||||
Allowance for doubtful accounts, returns and discounts | 417 | 1,122 | |||||
Other non-cash adjustments, net | 287 | 132 | |||||
Changes in operating assets and liabilities, net of effects of acquisition: | |||||||
Accounts receivable | 22,351 | (5,925 | ) | ||||
Inventories | (4,157 | ) | 424 | ||||
Prepaid expenses and other assets | 1,417 | (6,511 | ) | ||||
Accounts payable | (8,177 | ) | (5,710 | ) | |||
Deferred revenue | 4,750 | 10,009 | |||||
Income taxes payable | (192 | ) | 253 | ||||
Accrued and other liabilities | (9,027 | ) | (933 | ) | |||
Net cash provided by (used in) operating activities | 4,216 | (6,624 | ) | ||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (1,674 | ) | (1,775 | ) | |||
Net cash used in investing activities | (1,674 | ) | (1,775 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from other debts and capital leases | 160 | — | |||||
Repayment of other debts and capital leases | (97 | ) | (448 | ) | |||
Proceeds from common stock issued to employees | 2,012 | 2,347 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock units | (657 | ) | — | ||||
Net cash provided by financing activities | 1,418 | 1,899 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (33 | ) | 73 | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,927 | (6,427 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 65,989 | 58,757 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 69,916 | $ | 52,330 | |||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 69,916 | $ | 52,045 | |||
Restricted cash included in prepaid expenses and other current assets | — | 285 | |||||
Total cash, cash equivalents and restricted cash | $ | 69,916 | $ | 52,330 |
Three months ended | ||||||||||||||||||||||||||||||||
March 29, 2019 | December 31, 2018 | March 30, 2018 | ||||||||||||||||||||||||||||||
GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | GAAP | Adjustments(1) | Non-GAAP | ||||||||||||||||||||||||
Geography | ||||||||||||||||||||||||||||||||
Americas | $ | 34,188 | $ | 25 | $ | 34,213 | 43% | $ | 63,007 | $ | (7 | ) | $ | 63,000 | 55% | $ | 48,856 | $ | 111 | $ | 48,967 | 54% | ||||||||||
EMEA | 28,078 | — | 28,078 | 35% | 25,880 | — | 25,880 | 23% | 23,202 | — | 23,202 | 26% | ||||||||||||||||||||
APAC | 17,840 | — | 17,840 | 22% | 24,768 | — | 24,768 | 22% | 18,069 | — | 18,069 | 20% | ||||||||||||||||||||
Total | $ | 80,106 | $ | 25 | $ | 80,131 | 100% | $ | 113,655 | $ | (7 | ) | $ | 113,648 | 100% | $ | 90,127 | $ | 111 | $ | 90,238 | 100% | ||||||||||
Market | ||||||||||||||||||||||||||||||||
Service Provider | $ | 44,212 | $ | 25 | $ | 44,237 | 55% | $ | 80,325 | $ | (7 | ) | $ | 80,318 | 71% | $ | 52,217 | $ | 111 | $ | 52,328 | 58% | ||||||||||
Broadcast and Media | 35,894 | — | 35,894 | 45% | 33,330 | — | 33,330 | 29% | 37,910 | — | 37,910 | 42% | ||||||||||||||||||||
Total | $ | 80,106 | $ | 25 | $ | 80,131 | 100% | $ | 113,655 | $ | (7 | ) | $ | 113,648 | 100% | $ | 90,127 | $ | 111 | $ | 90,238 | 100% |
Three months ended March 29, 2019 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 67,176 | $ | 12,955 | $ | 80,131 | $ | (25 | ) | * | $ | 80,106 | |||||||
Gross profit | 38,602 | 5,093 | 43,695 | (1,846 | ) | 41,849 | |||||||||||||
Gross margin% | 57.5 | % | 39.3 | % | 54.5 | % | 52.2 | % | |||||||||||
Operating income (loss) | 1,968 | (5,797 | ) | (3,829 | ) | (4,579 | ) | (8,408 | ) | ||||||||||
Operating margin% | 2.9 | % | (44.7 | )% | (4.8 | )% | (10.5 | )% | |||||||||||
Three months ended December 31, 2018 | |||||||||||||||||||
Video | Cable Access | Total Segment Measures (non-GAAP) | Adjustments (1) | Consolidated GAAP Measures | |||||||||||||||
Net revenue | $ | 89,528 | $ | 24,120 | $ | 113,648 | $ | 7 | * | $ | 113,655 | ||||||||
Gross profit | 51,449 | 10,509 | 61,958 | (1,637 | ) | 60,321 | |||||||||||||
Gross margin% | 57.5 | % | 43.6 | % | 54.5 | % | 53.1 | % | |||||||||||
Operating income | 12,678 | — | 12,678 | (5,353 | ) | 7,325 | |||||||||||||
Operating margin% | 14.2 | % | — | % | 11.2 | % | 6.4 | % | |||||||||||
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 March 29, 2019 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |||||||||||||
GAAP | $ | 80,106 | $ | 41,849 | $ | 50,257 | $ | (8,408 | ) | $ | (3,217 | ) | $ | (11,306 | ) | |||
Accounting impact related to warrant amortization | 25 | 25 | — | 25 | — | 25 | ||||||||||||
Stock-based compensation | — | 225 | (1,888 | ) | 2,113 | — | 2,113 | |||||||||||
Amortization of intangibles | — | 1,295 | (788 | ) | 2,083 | — | 2,083 | |||||||||||
Restructuring and related charges | — | 301 | (57 | ) | 358 | — | 358 | |||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,606 | 1,606 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | 334 | ||||||||||||
Total adjustments | 25 | 1,846 | (2,733 | ) | 4,579 | 1,606 | 6,519 | |||||||||||
Non-GAAP | $ | 80,131 | $ | 43,695 | $ | 47,524 | $ | (3,829 | ) | $ | (1,611 | ) | $ | (4,787 | ) | |||
As a % of revenue (GAAP) | 52.2 | % | 62.7 | % | (10.5 | )% | (4.0 | )% | (14.1 | )% | ||||||||
As a % of revenue (Non-GAAP) | 54.5 | % | 59.3 | % | (4.8 | )% | (2.0 | )% | (6.0 | )% | ||||||||
Diluted net loss per share: | ||||||||||||||||||
Diluted net loss per share-GAAP | $ | (0.13 | ) | |||||||||||||||
Diluted net loss per share-Non-GAAP | $ | (0.05 | ) | |||||||||||||||
Shares used to compute diluted net loss per share: | ||||||||||||||||||
GAAP and Non-GAAP | 88,165 | |||||||||||||||||
Three months ended December 31, 2018 | ||||||||||||||||||
Revenue | Gross Profit | Total Operating Expense | Income from Operations | Total Non-operating Expense, net | Net Income | |||||||||||||
GAAP | $ | 113,655 | $ | 60,321 | $ | 52,996 | $ | 7,325 | $ | (2,747 | ) | $ | 3,330 | |||||
Accounting impact related to warrant amortization | (7 | ) | (7 | ) | — | (7 | ) | — | (7 | ) | ||||||||
Stock-based compensation | — | 376 | (2,711 | ) | 3,087 | — | 3,087 | |||||||||||
Amortization of intangibles | — | 1,295 | (791 | ) | 2,086 | — | 2,086 | |||||||||||
Restructuring and related charges | — | (27 | ) | (214 | ) | 187 | — | 187 | ||||||||||
Non-cash interest expenses related to convertible notes | — | — | — | — | 1,577 | 1,577 | ||||||||||||
Discrete tax items and tax effect of non-GAAP adjustments | — | — | — | — | — | (593 | ) | |||||||||||
Total adjustments | (7 | ) | 1,637 | (3,716 | ) | 5,353 | 1,577 | 6,337 | ||||||||||
Non-GAAP | $ | 113,648 | $ | 61,958 | $ | 49,280 | $ | 12,678 | $ | (1,170 | ) | $ | 9,667 | |||||
As a % of revenue (GAAP) | 53.1 | % | 46.6 | % | 6.4 | % | (2.4 | )% | 2.9 | % | ||||||||
As a % of revenue (Non-GAAP) | 54.5 | % | 43.4 | % | 11.2 | % | (1.0 | )% | 8.5 | % | ||||||||
Diluted net income per share: | ||||||||||||||||||
Diluted net income per share-GAAP | $ | 0.04 | ||||||||||||||||
Diluted net income per share-Non-GAAP | $ | 0.11 | ||||||||||||||||
Shares used to compute diluted net income per share: | ||||||||||||||||||
GAAP and Non-GAAP | 89,028 |
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 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 |
Q2 2019 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Loss from Operations | Total Non-operating Expense, net | Net Loss | |
GAAP | $80.0 to $90.0 | $40.4 to $46.4 | $54.5 to $55.5 | $(15.1) to $(8.1) | $(3.3) | $(19.1) to $(12.1) |
Stock-based compensation | — | 0.3 | (2.7) | 3.0 | — | 3.0 |
Amortization of intangibles | — | 1.3 | (0.8) | 2.1 | — | 2.1 |
Non-cash interest expense related to convertible notes | — | — | — | — | 1.7 | 1.7 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $1.3 to $2.1 |
Total adjustments | — | 1.6 | (3.5) | 5.1 | 1.7 | $8.1 to $8.9 |
Non-GAAP | $80.0 to $90.0 | $42.0 to $48.0 | $51.0 to $52.0 | $(10.0) to $(3.0) | $(1.6) | $(10.2) to $(4.0) |
As a % of revenue (GAAP) | 50.5% to 51.5% | 60.6% to 69.4% | (18.9)% to (9.0)% | (4.0)% | (23.9)% to (13.5)% | |
As a % of revenue (Non-GAAP) | 52.5% to 53.5% | 56.7% to 65.0% | (12.5)% to (3.4)% | (2.0)% | (12.8)% to (4.5)% | |
Diluted net loss per share: | ||||||
Diluted net loss per share-GAAP | $(0.21) to $(0.14) | |||||
Diluted net loss per share-Non-GAAP | $(0.11) to $(0.05) | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 88.9 |
2019 Financial Guidance | ||||||
Revenue | Gross Profit | Total Operating Expense | Income (Loss) from Operations | Total Non-operating Expense, net | Net Income (Loss) | |
GAAP | $385.0 to $430.0 | $185.6 to $222.7 | $210.5 to $220.5 | $(34.9) to $12.2 | $(13.1) | $(50.3) to $(3.2) |
Stock-based compensation | — | 1.4 | (12.3) | 13.7 | — | 13.7 |
Amortization of intangibles | — | 5.2 | (3.1) | 8.3 | — | 8.3 |
Restructuring and related charges | — | 0.3 | (0.1) | 0.4 | — | 0.4 |
Non-cash interest expense related to convertible notes | — | — | — | — | 6.7 | 6.7 |
Tax effect of non-GAAP adjustments | — | — | — | — | — | $(1.1) to $4.6 |
Total adjustments | — | 6.9 | (15.5) | 22.4 | 6.7 | $28.0 to $33.7 |
Non-GAAP | $385.0 to $430.0 | $192.5 to $229.6 | $195.0 to $205.0 | $(12.5) to $34.6 | $(6.4) | $(16.6) to $24.8 |
As a % of revenue (GAAP) | 48.2% to 51.8% | 48.9% to 57.3% | (9.1)% to 2.8% | (3.0)% | (13.1)% to (0.7)% | |
As a % of revenue (Non-GAAP) | 50.0% to 53.5% | 45.3% to 53.2% | (3.2)% to 8.0% | (1.5)% | (4.3)% to 5.8% | |
Diluted net income (loss) per share: | ||||||
Diluted net loss per share-GAAP | $(0.56) to $(0.04) | |||||
Diluted net income (loss) per share-Non-GAAP | $(0.19) to $0.27 | |||||
Shares used to compute diluted net loss per share: | ||||||
GAAP and Non-GAAP | 89.3 | |||||
Shares used to compute diluted net income per share: | ||||||
Non-GAAP | 91.0 |
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