SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 4, 2013
EXA CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware | 001-35584 | 04-3139906 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification Number) |
55 Network Drive, Burlington, Massachusetts 01803
(Address of principal executive offices) (Zip Code)
(781) 564-0200
(Registrants telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below).
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On September 4, 2013, Exa Corporation issued a press release announcing its financial results for the second quarter of fiscal 2014. The full text of the press release is attached hereto as Exhibit 99.1 to this Report and is incorporated by reference herein.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits.
99.1 | Press Release, dated September 4, 2013, entitled Exa Reports Second Quarter Fiscal 2014 Financial Results. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
EXA CORPORATION | ||
By: | /s/ Edmond L. Furlong | |
Edmond L. Furlong | ||
Chief Financial Officer |
Date: September 4, 2013
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EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press Release, dated September 4, 2013, entitled Exa Reports Second Quarter Fiscal 2014 Financial Results. |
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Exhibit 99.1
Exa Reports Second Quarter Fiscal 2014 Financial Results
Revenue increases 7%, or 10% on a constant currency basis, from a year ago
Burlington, Mass., September 4, 2013 Exa® Corporation (NASDAQ: EXA), a global innovator of fluids simulation solutions for product engineering, today announced financial results for the second quarter of fiscal 2014, which ended July 31, 2013.
The return to customer spending that we started to see at the beginning of the year continued in the second quarter, said Stephen Remondi, President and Chief Executive Officer of Exa. This was most apparent in second quarter project revenue, which increased 23% from a year ago. We continue to see strong momentum from customers in the passenger car market, though this is being more than offset by continued delays at customers in the truck and off-highway markets who are impacted by softer macro trends. We believe the investments that we are making in our long-term growth are having a positive impact on our business, but with a mixed customer environment we are tempering our growth expectations over the near-term. As such we are moderating our full year revenue expectations, though we continue to anticipate double-digit revenue growth for the full year fiscal 2014, as compared to fiscal 2013.
Over the longer-term, Remondi added, We expect our recent release of PowerFLOW 5.0 to open new opportunities enabling complex simulations for the aerospace industry and offer significant accuracy improvements for thermal analysis and new acoustic simulation capabilities. We believe investments we have made in both operations and product development better position us to further penetrate the market as customers continue replacing costly and time-consuming physical prototyping with our differentiated simulation technology in the years ahead.
Second Quarter Fiscal 2014 Financial Highlights
Revenue
| Total revenue for the second quarter of fiscal 2014, which ended July 31, 2013, was $12.7 million, an increase of 7% compared to $11.8 million in the comparable period in fiscal 2013. Revenue in the second quarter grew by 10% on a constant currency basis, compared with the corresponding period in fiscal 2013. |
| License revenue was $10.7 million for the second quarter of fiscal 2014, compared to $10.2 million in the comparable period in fiscal 2013. |
| Project revenue was $2.0 million for the second quarter of fiscal 2014, compared to $1.6 million in the comparable period in fiscal 2013. |
Profitability
| GAAP loss from operations was ($0.2) million in the second quarter of fiscal 2014, compared to GAAP income from operations of $0.9 million in the comparable period in fiscal 2013. |
| Non-GAAP income from operations was $0.2 million in the second quarter of fiscal 2014, compared to non-GAAP income from operations of $1.2 million in the comparable period in fiscal 2013. |
| Adjusted EBITDA was $0.6 million in the second quarter of fiscal 2014, compared to $1.5 million in the comparable period in fiscal 2013. |
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| GAAP net loss was ($0.8) million in the second quarter of fiscal 2014, compared to GAAP net income of $0.9 million for the comparable period in fiscal 2013. GAAP net loss per share was ($0.06), based on 13.3 million weighted average shares outstanding, compared to GAAP net income per share of $0.07 for the comparable period in fiscal 2013, based on 11.8 million diluted weighted average shares outstanding. |
| Non-GAAP net loss was ($0.6) million, or ($0.04) per diluted share in the second quarter of fiscal 2014, compared to non-GAAP net income of $1.1 million, or $0.09 per diluted share, in the second quarter of fiscal 2013. |
| Decreases in year-over-year profitability comparisons were as expected, and primarily due to anticipated investments in long-term growth and public company costs. |
Balance Sheet
| The company had $33.0 million in cash and cash equivalents at July 31, 2013, compared to $47.9 million at April 30, 2013. |
| During the second quarter, the company repaid all outstanding obligations under its term loan facility. This included a total of $7.4 million to cover all outstanding obligations including principal, interest, deferred origination fees and prepayment penalties. The company also incurred a GAAP expense of approximately $0.8 million in the second quarter to cover the prepayment penalty and the write-off of our unamortized debt discount. |
Business Outlook
Based on information available as of September 4, 2013, Exa is issuing guidance for the third quarter and full year fiscal 2014 as indicated below.
Third Quarter Fiscal 2014:
| Total revenue is expected to be in the range of $13.6 million to $14.3 million. |
| GAAP net income is expected to be in the range of $0.1 million to $0.5 million. |
| Non-GAAP net income is expected to be in the range of $0.4 million to $0.8 million. |
| Adjusted EBITDA is expected to be in the range of $1.1 million to $1.8 million. |
| Basic share count for the third quarter is estimated to be 13.3 million shares. |
| Diluted share count for the third quarter is estimated to be 14.6 million shares. |
Full Year Fiscal 2014:
| Total revenue is expected to be in the range of $53.0 million to $55.5 million. |
| GAAP net (loss)/income is expected to be in the range of a loss of ($0.9) million to income of $0.3 million. |
| Non-GAAP net income is expected to be in the range of breakeven to $1.2 million. |
| Adjusted EBITDA is expected to be in the range of $3.4 million to $5.6 million. |
| Basic share count for the full year is estimated to be 13.5 million shares. |
| Diluted share count for the full year is estimated to be 14.8 million shares. |
2
The above guidance assumes an exchange rate of 1.32 US dollars per Euro and 100.0 Japanese yen per US dollar for the balance of fiscal year 2014.
An explanation and reconciliation of historical and forward-looking non-GAAP measures presented above, including revenue on a constant currency basis, adjusted EBITDA, non-GAAP income (loss) from operations and non-GAAP net income (loss), to the comparable GAAP measures is provided below and in the attachments to this press release.
Conference Call Information
What: | Exas second quarter fiscal 2014 financial results conference call | |
When: | Wednesday, September 4, 2013 | |
Time: | 5:00 p.m. ET | |
Webcast: | http://investor.exa.com (live and replay) | |
Live Call: | (877) 878-2664, Domestic | |
(970) 315-0423, International | ||
Replay: | (855) 859-2056, Passcode 31432170, Domestic | |
(404) 537-3406, Passcode 31432170, International |
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are presented on a GAAP basis, we disclose revenue on a constant currency basis, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share and Adjusted EBITDA. These non-GAAP measures are not in accordance with, or an alternative for, amounts determined in accordance with generally accepted accounting principles in the United States. The GAAP measure most comparable to revenue on a constant currency basis is GAAP revenue. The GAAP measure most comparable to non-GAAP income from operations is GAAP income from operations. The GAAP measure most comparable to Non-GAAP net income and Adjusted EBITDA is GAAP net income. The GAAP measure most comparable to Non-GAAP net income per diluted share is GAAP net income per diluted share. A reconciliation of these non-GAAP financial measures to the corresponding GAAP measure is included below.
We define revenue on a constant currency basis as GAAP revenue, adjusted to reverse the impact of changes in the average exchange rates of currencies in which our international operations generated revenue and incurred expenses.
We define Non-GAAP net income as net income, excluding the after tax impact of non-cash, stock-based compensation expense and the amortization of acquired intangibles. We define EBITDA as net income, excluding depreciation and amortization, interest expense, loss on extinguishment of debt, other income (expense), foreign exchange gain (loss) and provision for income taxes, and we define Adjusted EBITDA as EBITDA, excluding non-cash, stock-based compensation expense.
Our management uses these non-GAAP measures when evaluating our operating performance and for internal planning and forecasting purposes. We believe that these measures help indicate underlying
3
trends in our business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing our operating performance. For example, our international operations generate revenue and incur expenses that are denominated in foreign currencies. These amounts could be materially affected by currency fluctuations. Our principal exposures are to fluctuations in exchange rates for the United States dollar versus the Euro, British pound, Japanese yen, Chinese yuan and Korean won. Changes in currency exchange rates that are beyond our control can significantly affect our consolidated results of operations. We believe that disclosure of our revenue on a constant currency basis is useful as an indicator of demand for our solutions independent of the influence of currency exchange fluctuations. Management considers Adjusted EBITDA to be an important indicator of our operational strength and the performance of our business and a good measure of our historical operating trends. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for, or superior to, the financial information presented in accordance with GAAP and, in particular, should not be considered a measure of our liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies. Investors should carefully consider the attached reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures.
About Exa Corporation
Exa Corporation develops, sells and supports simulation software and services to enhance product performance, reduce product development costs and improve the efficiency of design and engineering processes. Exas simulation solutions enable their customers to gain crucial insight into design performance early in the design cycle, thus reducing the likelihood of expensive redesigns and late-stage engineering changes. As a result, Exas customers realize significant cost savings and fundamental improvements in their engineering development process. Our products include, PowerFLOW®, PowerDELTA®, PowerCLAY®, PowerVIZ®, PowerSPECTRUM®, PowerACOUSTICS®, PowerINSIGHT®, PowerCASE, PowerCOOL® and PowerTHERM® along with professional engineering consulting services. A partial customer list includes: AGCO, BMW, Ford, Hyundai, Kenworth, MAN, Nissan, Peterbilt, Renault, Scania, Toyota, Volkswagen, and Volvo Trucks.
Safe Harbor Statement
This press release, including the section entitled Business Outlook, contains forward-looking statements describing our expectations concerning future events and our future financial performance. These statements are only predictions and may be inaccurate. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors, including the risks outlined under Risk Factors in our Annual Report on Form 10-K for the year ended January 31, 2013, and Form 10-Q for the quarter-ended April 30, 2013, and in our other SEC filings. These factors may cause our actual results to differ materially from those described in our forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, our future results, levels of activity, performance or achievements may differ from our
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expectations. Other than as required by law, we do not undertake a responsibility to update any of the forward-looking statements after the date of this press release, even though our situation may change in the future.
Media Contact:
Michelle Murray-Ross, Exa Corporation
+1 (781) 564-0251
michelle@exa.com
Investor Relations Contact:
Garo Toomajanian, ICR
+1 (781) 564-0337
investor@exa.com
5
EXA CORPORATION
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and per share data)
July 31, 2013 |
January 31, 2013 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 32,958 | $ | 30,716 | ||||
Accounts receivable |
4,994 | 27,840 | ||||||
Deferred tax assets |
1,461 | 970 | ||||||
Prepaid expenses and other current assets |
1,627 | 1,938 | ||||||
|
|
|
|
|||||
Total current assets |
41,040 | 61,464 | ||||||
Property and equipment, net |
5,721 | 6,176 | ||||||
Intangible assets, net |
2,921 | 3,096 | ||||||
Deferred tax assets |
13,041 | 12,274 | ||||||
Other assets |
1,113 | 1,060 | ||||||
|
|
|
|
|||||
Total assets |
$ | 63,836 | $ | 84,070 | ||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 970 | $ | 1,743 | ||||
Accrued expenses |
5,003 | 7,284 | ||||||
Current portion of long-term debt, net of discount (1) |
| 1,747 | ||||||
Current portion of deferred revenue |
17,881 | 26,013 | ||||||
Current maturities of capital lease obligations |
1,967 | 2,051 | ||||||
|
|
|
|
|||||
Total current liabilities |
25,821 | 38,838 | ||||||
Long-term debt, net of current portion and discount (1) |
| 5,024 | ||||||
Deferred revenue |
44 | 128 | ||||||
Capital lease obligations |
1,920 | 2,818 | ||||||
Other long-term liabilities |
846 | 1,009 | ||||||
Deferred rent |
1,130 | 1,482 | ||||||
|
|
|
|
|||||
Total liabilities |
29,761 | 49,299 | ||||||
|
|
|
|
|||||
Commitments and contingencies |
||||||||
Stockholders equity : |
||||||||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding |
| | ||||||
Common stock, $0.001 par value; 195,000,000 authorized; 13,370,743 and 13,319,715 shares issued, respectively; 13,338,241 and 13,287,213 shares outstanding, respectively |
13 | 13 | ||||||
Additional paid-in capital |
84,417 | 83,786 | ||||||
Accumulated deficit |
(50,351 | ) | (49,012 | ) | ||||
Treasury stock (32,502 common shares, at cost) |
0 | 0 | ||||||
Accumulated other comprehensive loss |
(4 | ) | (16 | ) | ||||
|
|
|
|
|||||
Total stockholders equity |
34,075 | 34,771 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders equity |
$ | 63,836 | $ | 84,070 | ||||
|
|
|
|
(1) | Includes amounts due to a related party, as follows: |
July 31, 2013 |
January 31, 2013 |
|||||||
Current portion of long-term debt |
$ | | $ | 274 | ||||
Long-term debt, net of current portion |
$ | | $ | 499 |
6
EXA CORPORATION
Consolidated Statements of Operations and Statements of Comprehensive (Loss) Income
(Unaudited)
(in thousands, except share and per share data)
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenue: |
||||||||||||||||
License revenue |
$ | 10,719 | $ | 10,215 | $ | 21,411 | $ | 20,228 | ||||||||
Project revenue |
1,985 | 1,618 | 3,781 | 2,899 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
12,704 | 11,833 | 25,192 | 23,127 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating expenses: |
||||||||||||||||
Cost of revenues |
3,833 | 3,112 | 7,504 | 6,335 | ||||||||||||
Sales and marketing |
2,179 | 1,709 | 4,296 | 3,309 | ||||||||||||
Research and development |
4,450 | 4,157 | 8,836 | 8,297 | ||||||||||||
General and administrative |
2,426 | 1,968 | 5,197 | 3,926 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
12,888 | 10,946 | 25,833 | 21,867 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income from operations |
(184 | ) | 887 | (641 | ) | 1,260 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other (expense) income, net: |
||||||||||||||||
Foreign exchange (loss) gain |
(93 | ) | 326 | (56 | ) | 326 | ||||||||||
Interest expense |
(176 | ) | (409 | ) | (557 | ) | (823 | ) | ||||||||
Interest income |
5 | | 9 | 2 | ||||||||||||
Loss on extinguishment of debt |
(755 | ) | | (755 | ) | | ||||||||||
Other income, net |
3 | 445 | 5 | 511 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other (expense) income, net |
(1,016 | ) | 362 | (1,354 | ) | 16 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) income before income taxes |
(1,200 | ) | 1,249 | (1,995 | ) | 1,276 | ||||||||||
Benefit (provision) for income taxes |
402 | (367 | ) | 656 | (332 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income |
$ | (798 | ) | $ | 882 | $ | (1,339 | ) | $ | 944 | ||||||
|
|
|
|
|
|
|
|
|||||||||
Net (loss) income per share: |
||||||||||||||||
Basic |
$ | (0.06 | ) | $ | 0.20 | $ | (0.10 | ) | $ | 0.37 | ||||||
Diluted |
$ | (0.06 | ) | $ | 0.07 | $ | (0.10 | ) | $ | 0.08 | ||||||
Weighted average shares outstanding used in computing net (loss) income per share: |
||||||||||||||||
Basic |
13,318,443 | 4,518,279 | 13,307,456 | 2,529,796 | ||||||||||||
Diluted |
13,318,443 | 11,776,321 | 13,307,456 | 11,123,120 | ||||||||||||
Comprehensive (loss) income: |
||||||||||||||||
Net (loss) income |
$ | (798 | ) | $ | 882 | $ | (1,339 | ) | $ | 944 | ||||||
Foreign currency translation adjustments |
14 | (25 | ) | 12 | 3 | |||||||||||
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|
|
|
|
|
|
|||||||||
Comprehensive (loss) income |
$ | (784 | ) | $ | 857 | $ | (1,327 | ) | $ | 947 | ||||||
|
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|
|
|
|
|
|
(1) | Includes stock-based compensation expense as follows: |
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Cost of revenues |
$ | 33 | $ | 27 | $ | 64 | $ | 54 | ||||||||
Sales and marketing |
52 | 48 | 102 | 94 | ||||||||||||
Research and development |
77 | 76 | 154 | 157 | ||||||||||||
General and administrative |
89 | 83 | 176 | 170 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 251 | $ | 234 | $ | 496 | $ | 475 | ||||||||
|
|
|
|
|
|
|
|
(2) | Includes amortization expense related to intangible assets as follows: |
Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
General and administrative |
$ | 87 | $ | 97 | $ | 175 | $ | 194 |
7
EXA CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Six Months Ended July 31, | ||||||||
2013 | 2012 | |||||||
Cash flows provided by operating activities: |
||||||||
Net (loss) income |
$ | (1,339 | ) | $ | 944 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
1,039 | 832 | ||||||
Stock-based compensation expense |
496 | 475 | ||||||
Deferred rent expense |
(283 | ) | (94 | ) | ||||
Non-cash interest |
162 | 249 | ||||||
Loss on extinguishment of debt, non-cash portion |
465 | | ||||||
Mark-to-market adjustment of preferred stock warrant liability |
| (228 | ) | |||||
Mark-to-market adjustment of equity participation right |
| (276 | ) | |||||
Deferred income taxes |
(1,258 | ) | 39 | |||||
Net change in operating assets and liabilities: |
||||||||
Accounts receivable |
22,978 | 15,195 | ||||||
Prepaid expenses and other current assets |
280 | (167 | ) | |||||
Other assets |
(53 | ) | 2,263 | |||||
Accounts payable |
(769 | ) | (1,166 | ) | ||||
Accrued expenses |
(2,151 | ) | (4,334 | ) | ||||
Other liabilities |
51 | 4 | ||||||
Deferred revenue |
(8,169 | ) | (12,091 | ) | ||||
|
|
|
|
|||||
Net cash provided by operating activities |
11,449 | 1,645 | ||||||
|
|
|
|
|||||
Cash flows used in investing activities: |
||||||||
Purchases of property and equipment |
(598 | ) | (226 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(598 | ) | (226 | ) | ||||
|
|
|
|
|||||
Cash flows (used in) provided by financing activities: |
||||||||
Net decrease in line of credit |
| (7,000 | ) | |||||
Proceeds from borrowings under long-term debt |
| 3,500 | ||||||
Proceeds from stock option and warrant exercises |
135 | 11 | ||||||
Payments of long-term debt |
(7,365 | ) | (504 | ) | ||||
Payments of capital lease obligations |
(1,025 | ) | (410 | ) | ||||
Proceeds from initial public offering, net of $4,174 issuance costs |
| 34,641 | ||||||
Payment of previously accrued debt issuance costs |
(213 | ) | | |||||
|
|
|
|
|||||
Net cash (used in) provided by financing activities |
(8,468 | ) | 30,238 | |||||
|
|
|
|
|||||
Effect of exchange rate changes on cash |
(141 | ) | 126 | |||||
|
|
|
|
|||||
Net increase in cash and cash equivalents |
2,242 | 31,783 | ||||||
Cash and cash equivalents, beginning of period |
30,716 | 11,468 | ||||||
|
|
|
|
|||||
Cash and cash equivalents, end of period |
$ | 32,958 | $ | 43,251 | ||||
|
|
|
|
|||||
Supplemental cash flow disclosures: |
||||||||
Cash paid for interest |
$ | 462 | $ | 494 | ||||
Cash paid for income taxes |
$ | 266 | $ | 566 | ||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||
Acquisition of equipment through capital leases |
$ | 43 | $ | 146 | ||||
Conversion of preferred stock into common stock |
| 32,685 | ||||||
Conversion of preferred stock warrants into common stock warrants |
$ | | $ | 1,324 |
8
EXA CORPORATION
Reconciliation of historical Non-GAAP to GAAP measures
(Unaudited)
(in thousands, except per share data)
Adjusted EBITDA:
Three Months Ended July 31, |
Six Months Ended July 31, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net (loss) income |
$ | (798 | ) | $ | 882 | $ | (1,339 | ) | $ | 944 | ||||||
Add back: |
||||||||||||||||
Depreciation and amortization |
543 | 423 | 1,039 | 832 | ||||||||||||
Interest expense, net |
171 | 409 | 548 | 821 | ||||||||||||
Loss on extinguishment of debt |
755 | | 755 | | ||||||||||||
Other income, net |
(3 | ) | (445 | ) | (5 | ) | (511 | ) | ||||||||
Foreign exchange gain (loss) |
93 | (326 | ) | 56 | (326 | ) | ||||||||||
(Benefit) provision for income taxes |
(402 | ) | 367 | (656 | ) | 332 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
EBITDA |
359 | 1,310 | 398 | 2,092 | ||||||||||||
Stock-based compensation expense |
251 | 234 | 496 | 475 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA |
$ | 610 | $ | 1,544 | $ | 894 | $ | 2,567 | ||||||||
|
|
|
|
|
|
|
|
Non-GAAP operating income:
Three Months Ended July 31, |
Six Months Ended July 31, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating (loss) income |
$ | (184 | ) | $ | 887 | $ | (641 | ) | $ | 1,260 | ||||||
Add back: |
||||||||||||||||
Stock-based compensation expense |
251 | 234 | 496 | 475 | ||||||||||||
Amortization of acquired intangible assets |
87 | 97 | 175 | 194 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Non-GAAP operating income |
$ | 154 | $ | 1,218 | $ | 30 | $ | 1,929 | ||||||||
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|
|
|
|
|
|
Non-GAAP net (loss) income:
Three Months Ended July 31, |
Six Months Ended July 31, |
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2013 | 2012 | 2013 | 2012 | |||||||||||||
Net (loss) income |
$ | (798 | ) | $ | 882 | $ | (1,339 | ) | $ | 944 | ||||||
Add back: |
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Stock-based compensation expense |
251 | 234 | 496 | 475 | ||||||||||||
Amortization of acquired intangible assets |
87 | 97 | 175 | 194 | ||||||||||||
Income tax effect (1) |
(117 | ) | (115 | ) | (233 | ) | (232 | ) | ||||||||
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Non-GAAP net (loss) income |
$ | (577 | ) | $ | 1,098 | $ | (901 | ) | $ | 1,381 | ||||||
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Non-GAAP net (loss) income, per diluted share:
Three Months Ended July 31, |
Six Months Ended July 31, |
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2013 | 2012 | 2013 | 2012 | |||||||||||||
Net (loss) income, per diluted share (2) |
$ | (0.06 | ) | $ | 0.07 | $ | (0.10 | ) | $ | 0.08 | ||||||
Add back: |
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Stock-based compensation expense |
0.02 | 0.02 | 0.04 | 0.04 | ||||||||||||
Amortization of acquired intangible assets |
0.01 | 0.01 | 0.01 | 0.02 | ||||||||||||
Income tax effect (1) |
(0.01 | ) | (0.01 | ) | (0.02 | ) | (0.02 | ) | ||||||||
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Non-GAAP net (loss) income, per diluted share (2)(3): |
$ | (0.04 | ) | $ | 0.09 | $ | (0.07 | ) | $ | 0.12 | ||||||
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(1) | The tax effect of non-cash stock based compensation expense and non-cash amortization of acquired intangibles is estimated using a blended rate equivalent to our annual estimated United States federal tax rate and our state tax rate, exclusive of our net federal benefit. This rate is based on our estimated annual GAAP income tax rate forecast. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, revenues and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities. |
(2) | Share amounts utilized on a fully diluted basis were approximately 13.3 million for both the three and six months ended July 31, 2013, respectively. Share amounts utilized on a fully diluted bases were approximately 11.8 million and 11.1 million for the three and six months ended July 31, 2012, respectively. |
(3) | Due to rounding, totals may not equal the sum of line items in the table above. |
9
EXA CORPORATION
Reconciliation of forward looking Non-GAAP to GAAP measures
EBITDA and Adjusted EBITDA:
(in millions) | Three Months Ended October 31, 2013 |
Year Ended January 31, 2014 |
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Net income (loss) |
$ | 0.1 - 0.5 | $ | (0.9) - 0.3 | ||||
Add back: |
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Depreciation and amortization |
0.5 | 2.2 | ||||||
Interest expense, net |
0.1 | 0.7 | ||||||
Other expense, net |
| 0.8 | ||||||
Provision (benefit) for income taxes |
0.1 - 0.4 | (0.4) - 0.6 | ||||||
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EBITDA |
0.8 - 1.5 | 2.4 - 4.6 | ||||||
Stock-based compensation expense |
0.3 | 1.0 | ||||||
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Adjusted EBITDA |
$ | 1.1 -1.8 | $ | 3.4 - 5.6 | ||||
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Non-GAAP net (loss) income:
(in millions) | Three Months Ended October 31, 2013 |
Year Ended January 31, 2014 |
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Non-GAAP net (loss) income: |
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Net income (loss) |
$ | 0.1 - 0.5 | $ | (0.9) - 0.3 | ||||
Add back: |
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Stock-based compensation expense |
0.3 | 1.0 | ||||||
Amortization of acquired intangibles |
0.1 | 0.4 | ||||||
Income tax effect (1) |
(0.1 | ) | (0.5 | ) | ||||
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Non-GAAP net (loss) income |
$ | 0.4 - 0.8 | $ | 0.0 - 1.2 | ||||
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(1) | Non-GAAP financial information for the quarter is adjusted using a blended tax rate equivalent to our annual estimated United States federal tax rate and our state tax rate, exclusive of our net federal benefit. This rate is based on our estimated annual GAAP income tax rate forecast. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenues and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities. |
10