SOURCE: Avaya Inc.

Avaya Inc.

November 13, 2014 16:01 ET

Avaya Reports Fourth Fiscal Quarter and Fiscal Year 2014 Financial Results

SANTA CLARA, CA--(Marketwired - Nov 13, 2014) -

Fourth Quarter 2014:

  • Revenue of $1,126 million
  • Operating Income of $62 million, Non-GAAP Operating Income(1) of $212 million
  • Adjusted EBITDA(1) of $253 million, 22.5% of revenue

Fiscal 2014:

  • Revenue of $4,371 million
  • Operating Income of $197 million, Non-GAAP Operating Income(1) of $727 million
  • Adjusted EBITDA(1) of $898 million, 20.5% of revenue

Avaya reported financial results for the fourth fiscal quarter and full fiscal year ended September 30, 2014.

Total revenue for the fourth quarter was $1,126 million, up $72 million when compared to the prior quarter. On a year over year basis revenue was down $43 million compared to the fourth quarter of fiscal 2013. For the fourth fiscal quarter, adjusted EBITDA(1) was $253 million which compares to adjusted EBITDA of $223 million for the prior quarter and $291 million for the fourth quarter of fiscal 2013. GAAP operating income was $62 million and non-GAAP operating income was $212 million which compares to non-GAAP operating income of $180 million for the prior quarter and $240 million for the fourth quarter of fiscal 2013. Cash and cash equivalents totaled $322 million as of September 30, 2014. 

For fiscal 2014, Avaya reported revenue of $4,371 million, down 4.5% compared to fiscal 2013 revenue of $4,578 million. Non-GAAP operating income was $727 million in fiscal 2014 compared to $700 million in fiscal 2013. Fiscal 2014 adjusted EBITDA of $898 million was down $24 million compared to fiscal 2013.

"Avaya's fourth quarter results delivered a strong finish to the fiscal year. Revenue increased sequentially evidencing progress in our sales and marketing transformation. Solid bookings and backlog indicate a favorable demand environment for our products and services," said Kevin Kennedy, president and CEO. "As we move into fiscal 2015, Avaya continues to focus on accelerating our sales and marketing transformation, enhancing our product portfolio, and generating growth." 

Fourth Fiscal Quarter Highlights

  • Revenue of $1,126 million increased $72 million compared to the prior quarter and decreased $43 million compared to the fourth quarter of fiscal 2013
  • Product revenue of $579 million increased by 13% compared to the prior quarter and decreased 6% compared to the fourth quarter of fiscal 2013. Product book-to-bill was greater than 1.0
  • Avaya Global Services revenue of $547 million increased 1% compared to the prior quarter and decreased 1% compared to the fourth quarter of fiscal 2013
  • Gross margin was 58.2% compared to 57.6% for the prior quarter and 57.7% for the fourth quarter of fiscal 2013 
  • Non-GAAP gross margin was 59.7% compared to 59.2% for the prior quarter and 59.0% for the fourth quarter of fiscal 2013
  • Fourth fiscal quarter 2014 non-GAAP gross margin was a record level for the company
  • Operating income was $62 million which compares to operating income of $48 million for the prior quarter and operating income of $109 million for the fourth quarter of fiscal 2013
  • Non-GAAP operating income was $212 million compared to non-GAAP operating income of $180 million for the prior quarter and $240 million for the fourth quarter of fiscal 2013
  • Adjusted EBITDA was $253 million or 22.5% of revenue compared to $223 million or 21.2% of revenue for the prior quarter and $291 million or 24.9% of revenue for the fourth quarter of fiscal 2013
  • For the fourth fiscal quarter, percentage of revenue by geography was:
    • U.S. - 52% 
    • Asia-Pacific - 10%
    • EMEA - 29%
    • Americas International - 9%

Full Fiscal Year 2014 Highlights

  • Revenue of $4,371 million decreased 4.5% compared to fiscal 2013
  • Product revenue of $2,196 million decreased 6% compared to fiscal 2013
  • Avaya Global Services revenue of $2,175 million decreased 3% compared to fiscal 2013
  • Gross margin was 57.2% compared to 55.3% for fiscal 2013. Non-GAAP gross margin was 58.9% compared to 56.8% for fiscal 2013 
  • Operating income was $197 million which compares to operating income of $145 million for fiscal 2013. Non-GAAP Operating Income was $727 million or 16.6% of revenue compared to $700 million or 15.3% of revenue for fiscal 2013
  • Adjusted EBITDA was $898 million or 20.5% of revenue compared to $922 million or 20.1% of revenue for fiscal 2013
  • Full fiscal year 2014 Non-GAAP Gross Margin % and Adjusted EBITDA % were records for the company in any fiscal year

Conference Call and Webcast
Avaya will host a conference call to discuss these financial results and related Q&A at 2:00 p.m. PST on November 13, 2014. On the call will be Kevin Kennedy, president and CEO, and Dave Vellequette, CFO. The call will be moderated by John Nunziati, senior director of investor relations.

To join the live webcast and view supplementary materials, listeners should access the investor page of Avaya's website (www.avaya.com/investors). Following the live webcast, a replay will be available at the same web address in the event archives. 

To access the live webcast by phone, dial 800-862-9098 in the U.S. or Canada and 785-424-1051 for international callers, using the conference ID: AVQ414. Listeners should access the webcast or the call 10-15 minutes before the start time to ensure they are connected prior to the start time. 

A replay of the conference call will be available beginning at 5:00 p.m. PST on November 13 through December 12, by dialing 800-753-0348 within the United States or 402-220-2672 outside the United States.

About Avaya
Avaya is a leading provider of solutions that enable customer and team engagement across multiple channels and devices for better customer experience, increased productivity and enhanced financial performance. Its world-class contact center and unified communications technologies and services are available in a wide variety of flexible on-premise and cloud deployment options that seamlessly integrate with non-Avaya applications. The Avaya Engagement Development Platform enables third parties to create and customize business applications for competitive advantage. Avaya's fabric-based networking solutions help simplify and accelerate the deployment of business critical applications and services. For more information please visit www.avaya.com

Certain statements contained in this press release may be forward-looking statements. These statements may be identified by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "should" or "will" or other similar terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these are reasonable, such forward looking statements involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results to differ materially from any future results expressed or implied by these forward-looking statements. For a list and description of such risks and uncertainties, please refer to Avaya's filings with the SEC that are available at www.sec.gov. Avaya disclaims any intention or obligation to update or revise any forward-looking statements.

1 Refer to Supplemental Financial Information accompanying this press release for a reconciliation of GAAP to non-GAAP numbers and for reconciliation of adjusted EBITDA for the third quarter of fiscal 2014 see our Form 8-K filed with the SEC on August 5, 2014 at www.sec.gov.

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Avaya Inc.  
Consolidated Statements of Operations  
(Unaudited; in millions)  
   
    Three months ended     Fiscal year ended  
    September 30,     September 30,  
    2014     2013     2014     2013  
REVENUE                                
  Products   $ 579     $ 617     $ 2,196     $ 2,337  
  Services     547       552       2,175       2,241  
      1,126       1,169       4,371       4,578  
COSTS                                
  Products:                                
    Costs (exclusive of amortization of acquired technology intangible assets)     221       232       854       963  
    Amortization of acquired technology intangible assets     14       14       56       63  
  Services     236       249       962       1,022  
      471       495       1,872       2,048  
GROSS PROFIT     655       674       2,499       2,530  
OPERATING EXPENSES                                
  Selling, general and administrative     376       372       1,531       1,511  
  Research and development     90       102       379       445  
  Amortization of acquired intangible assets     56       56       227       228  
  Restructuring charges, net     71       35       165       200  
  Acquisition-related costs     -       -       -       1  
      593       565       2,302       2,385  
OPERATING INCOME     62       109       197       145  
  Interest expense     (112 )     (121 )     (459 )     (467 )
  Loss on extinguishment of debt     -       -       (5 )     (6 )
  Other income (expense), net     33       (5 )     25       (14 )
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES     (17 )     (17 )     (242 )     (342 )
(Provision for) benefit from income taxes of continuing operations     (32 )     29       (51 )     35  
(LOSS) INCOME FROM CONTINUING OPERATIONS     (49 )     12       (293 )     (307 )
Income (loss) from discontinued operations, net of income taxes     30       11       62       (57 )
NET (LOSS) INCOME   $ (19 )   $ 23     $ (231 )   $ (364 )
                                 
                                 
                                 
Avaya Inc.  
Consolidated Balance Sheets  
(Unaudited; in millions)  
             
    September 30,     September 30,  
2014     2013  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 322     $ 288  
  Accounts receivable, net     745       702  
  Inventory     197       245  
  Deferred income taxes, net     24       52  
  Other current assets     224       241  
  Assets of discontinued operations     -       59  
TOTAL CURRENT ASSETS     1,512       1,587  
  Property, plant and equipment, net     281       334  
  Deferred income taxes, net     52       34  
  Intangible assets, net     1,224       1,497  
  Goodwill     4,047       4,048  
  Other assets     141       172  
TOTAL ASSETS   $ 7,257     $ 7,672  
LIABILITIES                
Current liabilities:                
  Debt maturing within one year   $ 32     $ 35  
  Accounts payable     416       401  
  Payroll and benefit obligations     228       251  
  Deferred revenue     668       671  
  Business restructuring reserve, current portion     86       92  
  Other current liabilities     254       256  
  Liabilities of discontinued operations     -       19  
TOTAL CURRENT LIABILITIES     1,684       1,725  
  Long-term debt     5,991       6,051  
  Pension obligations     1,535       1,510  
  Other postretirement obligations     273       290  
  Deferred income taxes, net     249       237  
  Business restructuring reserve, non-current portion     119       78  
  Other liabilities     475       450  
TOTAL NON-CURRENT LIABILITIES     8,642       8,616  
                 
Commitments and contingencies                
                 
STOCKHOLDER'S DEFICIENCY                
  Common stock     -       -  
  Additional paid-in capital     2,962       2,937  
  Accumulated deficit     (4,831 )     (4,600 )
  Accumulated other comprehensive loss     (1,200 )     (1,006 )
TOTAL STOCKHOLDER'S DEFICIENCY     (3,069 )     (2,669 )
TOTAL LIABILITIES AND STOCKHOLDER'S DEFICIENCY   $ 7,257     $ 7,672  
                 
                 
                 
Avaya Inc.  
Condensed Statements of Cash Flows  
(Unaudited; in millions)  
   
    Fiscal year ended
September 30,
 
    2014     2013  
Net cash (used for) provided by:                
  Net loss Net loss   $ (231 )   $ (364 )
  Income (loss) from discontinued operations, net of income taxes     62       (57 )
  Loss from continuing operations     (293 )     (307 )
    Adjustments to loss from continuing operations for non-cash items     467       381  
    Changes in operating assets and liabilities     (138 )     57  
    Continuing operating activities     36       131  
    Discontinued operating activities     4       20  
   Operating activities     40       151  
    Continuing investing activities     (33 )     (113 )
    Discontinued investing activities     101       -  
  Investing activities     68       (113 )
  Financing activities     (60 )     (79 )
  Effect of exchange rate changes on cash and cash equivalents     (14 )     (8 )
Net increase (decrease) in cash and cash equivalents     34       (49 )
Cash and cash equivalents at beginning of period     288       337  
Cash and cash equivalents at end of period   $ 322     $ 288  
                 
                 
                 
Avaya Inc.  
Supplemental Schedules of Revenue  
(Unaudited; in millions)  
                                       
Three Months Ended   Three Months Ended September 30,  
Dec., 31   Mar. 31,   June 30,     Revenues   Mix     Change  
2013   2014   2014     2014   2013   2014   2013     Amount   Pct.  
                                                   
                  Revenue by Segment                                
$ 507   $ 476   $ 450   GCS $ 520   $ 553   46 % 47 %   $ (33 ) -6 %
  67     56     61   Networking   59     64   5 % 6 %     (5 ) -8 %
  574     532     511   Total ECS product revenue   579     617   51 % 53 %     (38 ) -6 %
  557     528     543   AGS   547     552   49 % 47 %     (5 ) -1 %
$ 1,131   $ 1,060   $ 1,054   Total revenue $ 1,126   $ 1,169   100 % 100 %   $ (43 ) -4 %
                                                   
                                                   
                  Revenue by Geography                                
$ 604   $ 532   $ 543   U.S. $ 588   $ 628   52 % 54 %   $ (40 ) -6 %
                  International:                                
  303     313     297     EMEA   321     313   29 % 27 %     8   3 %
  114     112     108     APAC - Asia Pacific   111     113   10 % 9 %     (2 ) -2 %
  110     103     106     Americas International - Canada and Latin America   106     115   9 % 10 %     (9 ) -8 %
  527     528     511   Total International   538     541   48 % 46 %     (3 ) -1 %
$ 1,131   $ 1,060   $ 1,054   Total revenue $ 1,126   $ 1,169   100 % 100 %   $ (43 ) -4 %
                                                   

Use of non-GAAP (Adjusted) Financial Measures

The information furnished in this release includes non-GAAP financial measures that differ from measures calculated in accordance with generally accepted accounting principles in the United States (GAAP), including adjusted EBITDA, non-GAAP gross margin as a percentage of revenue, and non-GAAP operating income.

EBITDA is defined as net income (loss) before income taxes, interest expense, interest income and depreciation and amortization and excludes the results of discontinued operations for all periods presented. Adjusted EBITDA is EBITDA further adjusted to exclude certain charges and other adjustments permitted in calculating covenant compliance under our debt agreements as further described in our SEC filings.

We believe that including supplementary information concerning Adjusted EBITDA is appropriate to provide additional information to investors to demonstrate compliance with our debt agreements and because it serves as a basis for determining management compensation. In addition, we believe Adjusted EBITDA provides more comparability between our historical results and results that reflect purchase accounting and our current capital structure. Accordingly, Adjusted EBITDA measures our financial performance based on operational factors that management can impact in the short-term, namely the Company's pricing strategies, volume, costs and expenses of the organization.

Adjusted EBITDA has limitations as an analytical tool. Adjusted EBITDA does not represent net income (loss) or cash flow from operations as those terms are defined by GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. While adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements, these terms are not necessarily comparable to other similarly titled captions of other companies due to the potential inconsistencies in the method of calculation. Adjusted EBITDA does not reflect the impact of earnings or charges resulting from matters that we consider not to be indicative of our ongoing operations. In particular, based on our debt agreements the definition of Adjusted EBITDA allows us to add back certain non-cash charges that are deducted in calculating net income (loss). Our debt agreements also allow us to add back restructuring charges, certain fees payable to our private equity sponsors and other specific cash costs and expenses as defined in the agreements and that portion of our pension costs, other post-employment benefits costs, and non-retirement post-employment benefits costs representing the amortization of pension service costs and actuarial gain or loss associated with these employment benefits. However, these are expenses that may recur, may vary and are difficult to predict. Further, our debt agreements require that Adjusted EBITDA be calculated for the most recent four fiscal quarters. As a result, the measure can be disproportionately affected by a particularly strong or weak quarter. Further, it may not be comparable to the measure for any subsequent four-quarter period or any complete fiscal year.

Non-GAAP gross margin excludes the amortization of acquired technology intangible assets, share based compensation, impairment of long lived assets and purchase accounting adjustments. We have included non-GAAP gross margin because we believe it provides additional useful information to investors regarding our operations by excluding those charges that management does not believe are reflective of the Company's ongoing operating results when assessing the performance of the business.

Non-GAAP operating income excludes the amortization of technology intangible assets, restructuring and impairment charges, acquisition and integration related costs, share based compensation, impairment of long lived assets and purchase accounting adjustments. We have included non-GAAP operating income because we believe it provides additional useful information to investors regarding our operations by excluding those charges that management does not believe are reflective of the company's ongoing operating results when assessing the performance of the business.

These non-GAAP measures are not based on any comprehensive set of accounting rules or principles and have limitations as analytical tools in that they do not reflect all of the amounts associated with Avaya's results of operations as determined in accordance with GAAP. As such, these measures should only be used to evaluate Avaya's results of operations in conjunction with the corresponding GAAP measures.

The following tables reconcile GAAP measures to non-GAAP measures:

   
   
Avaya Inc.  
Supplemental Schedule of Non-GAAP Adjusted EBITDA  
(Unaudited; in millions)  
           
  Three months ended     Fiscal year ended  
  September 30,     September 30,  
  2014     2013     2014     2013  
(Loss) income from continuing operations $ (49 )   $ 12     $ (293 )   $ (307 )
  Interest expense   112       121       459       467  
  Interest income   (1 )     -       (2 )     (2 )
  Provision for (benefit from) income taxes   32       (29 )     51       (35 )
  Depreciation and amortization   98       123       434       455  
EBITDA   192       227       649       578  
    Impact of purchase accounting adjustments   -       -       -       1  
    Restructuring charges, net   71       35       165       200  
    Sponsors' fees   1       2       7       7  
    Acquisition-related costs   -       -       -       1  
    Integration-related costs   2       3       7       15  
    Divestiture-related costs   -       -       2       -  
    Loss on extinguishment of debt   -       -       5       6  
    Third-party fees expensed in connection with the debt modification   -       -       2       18  
    Non-cash share-based compensation   5       4       25       11  
    Gain on sale of investments and long-lived assets, net   -       -       -       (1 )
    Gain on sale of TBU business   (14 )     -       (14 )     -  
    Change in certain tax indemnifications   (1 )     -       4       -  
    Impairment of long-lived assets   -       -       -       1  
    Venezuela hyperinflationary and devaluation charges   -       -       2       1  
    Resolution of certain legal matters   -       -       8       10  
    (Gain) loss on foreign currency transactions   (17 )     5       (18 )     (5 )
    Pension/OPEB/nonretirement postemployment benefits and long-term disability costs   13       15       51       79  
    Other   1       -       3       -  
Adjusted EBITDA $ 253     $ 291     $ 898     $ 922  
                               
                               
                               
Avaya Inc.
Supplemental Schedules of Non-GAAP Reconciliations
(Unaudited; in millions)
                   
    Three Months Ended     Fiscal year ended  
    Dec. 31,      Mar. 31,       June 30,     Sept. 30,       Dec. 31,       Mar. 31,       June 30,       Sept. 30,       September 30,  
    2012     2013     2013     2013     2013     2014     2014     2014     2014     2013  
                                                                                 
Reconciliation of Non-GAAP Gross Profitand Non-GAAP Gross Margin                                                                                
  Gross Profit - Adjusted for discontinued operations   $ 659     $ 579     $ 618     $ 674     $ 640     $ 597     $ 607     $ 655     $ 2,499     $ 2,530  
  Gross Margin - Adjusted for discontinued operations     54.6 %     53.3 %     55.4 %     57.7 %     56.6 %     56.3 %     57.6 %     58.2 %     57.2 %     55.3 %
                                                                                 
  Items excluded:                                                                                
    Amortization of acquired technology intangible assets     22       14       13       14       14       14       14       14       56       63  
    Impairment of capitalized software development costs     -       -       1       -       -       -       -       -       -       1  
    Share-based compensation     1       -       2       2       3       4       3       3       13       5  
    Incremental accelerated depreciation associated with vacating a facility     -       -       -       -       -       6       -       -       6       -  
    Purchase accounting adjustments to revenue     -       -       1       -       -       -       -       -       -       1  
  Non-GAAP Gross Profit - Adjusted for discontinued operations   $ 682     $ 593     $ 635     $ 690     $ 657     $ 621     $ 624     $ 672     $ 2,574     $ 2,600  
                                                                                 
  Non-GAAP Gross Margin - Adjusted for discontinued operations     56.5 %     54.6 %     56.8 %     59.0 %     58.1 %     58.6 %     59.2 %     59.7 %     58.9 %     56.8 %
                                                                                 
                                                                                 
Reconciliation of Non-GAAP Operating Income                                                                                
  Operating Income - Adjusted for discontinued operations   $ 18     $ 12     $ 6     $ 109     $ 87     $ -     $ 48     $ 62     $ 197     $ 145  
    Percentage of Revenue     1 %     1 %     0.5 %     9.3 %     7.7 %     0.0 %     4.6 %     5.5 %     4.5 %     3.2 %
                                                                                 
  Items excluded:                                                                                
    Amortization of acquired intangible assets     80       71       70       70       72       71       70       70       283       291  
    Restructuring and impairment charges, net     84       18       63       35       7       42       45       71       165       200  
    Integration-related costs     5       6       5       4       3       2       1       3       9       20  
    Divestiture-related costs                     -       -       -       -       2       -       2       -  
    Share-based compensation     2       1       4       4       6       8       6       5       25       11  
    Impairment of capitalized software development costs     -       -       1       -       -       -       -       -       -       1  
    Incremental accelerated depreciation associated with vacating certain facilities     -       -       3       18       16       19       -       -       35       21  
    Resolution of certain legal matters     -       -       10       -       -       -       8       -       8       10  
    Purchase accounting adjustments to revenue     -       -       1       -       -       -       -       -       -       1  
    Other     -       -       -       -       2       -       -       1       3       -  
                                                                                 
  Non-GAAP Operating Income - Adjusted for discontinued operations   $ 189     $ 108     $ 163     $ 240     $ 193     $ 142     $ 180     $ 212     $ 727     $ 700  
                                                                                 
  Non-GAAP Operating Margin - Adjusted for discontinued operations     15.7 %     9.9 %     14.6 %     20.5 %     17.1 %     13.4 %     17.1 %     18.8 %     16.6 %     15.3 %
                                                                                 
                                                                                 
                                                                                 
Avaya Inc.
Supplemental Schedules of Non-GAAP Reconciliation of Gross Profit and Gross Margin by Portfolio
(Unaudited; in millions)
   
    Three Months Ended     Fiscal year ended  
    Dec. 31,     Mar. 31,     June 30,     Sept. 30,     Dec. 31,     Mar. 31,     June 30,     Sept. 30,     September 30,  
    2012     2013     2013     2013     2013     2014     2014     2014     2014     2013  
                                                                                 
Reconciliation of Non-GAAP Gross Profitand Non-GAAP Gross Margin - Products                                                                                
    Revenue   $ 631     $ 529     $ 560     $ 617     $ 574     $ 532     $ 511     $ 579     $ 2,196     $ 2,337  
    Costs (exclusive of amortization of technology intangible assets) Costs (exclusive of amortization of acquired technology intangible assets)     261       236       234       232       228       206       199       221       854       963  
    Amortization of technology intangible assets Amortization of acquired technology intangible assets     22       14       13       14       14       14       14       14       56       63  
  GAAP Gross Profit     348       279       313       371       332       312       298       344       1,286       1,311  
  GAAP Gross Margin     55.2 %     52.7 %     55.9 %     60.1 %     57.8 %     58.6 %     58.3 %     59.4 %     58.6 %     56.1 %
                                                                                 
  Items excluded:                                                                                
    Amortization of acquired technology intangible assets     22       14       13       14       14       14       14       14       56       63  
    Impairment of capitalized software development costs     -       -       1       -       -       -       -       -       -       1  
    Incremental accelerated depreciation associated with vacating a facility     -       -       -       -       -       3       -       -       3       -  
    Purchase accounting adjustments to revenue     -       -       1       -       -       -       -       -       -       1  
  Non-GAAP Gross Profit   $ 370     $ 293     $ 328     $ 385     $ 346     $ 329     $ 312     $ 358     $ 1,345     $ 1,376  
                                                                                 
  Non-GAAP Gross Margin     58.6 %     55.4 %     58.5 %     62.4 %     60.3 %     61.8 %     61.1 %     61.8 %     61.2 %     58.9 %
                                                                                 
                                                                                 
Reconciliation of Non-GAAP Gross Profitand Non-GAAP Gross Margin - Services                                                                                
    Revenue   $ 576     $ 557     $ 556     $ 552     $ 557     $ 528     $ 543     $ 547     $ 2,175     $ 2,241  
    Costs     265       257       251       249       249       243       234       236       962       1,022  
  GAAP Gross Profit     311       300       305       303       308       285       309       311       1,213       1,219  
  GAAP Gross Margin     54.0 %     53.9 %     54.9 %     54.9 %     55.3 %     54.0 %     56.9 %     56.9 %     55.8 %     54.4 %
                                                                                 
  Items excluded:                                                                                
    Share-based compensation     1       -       2       2       3       4       3       3       13       5  
    Incremental accelerated depreciation associated with vacating a facility     -       -       -       -       -       3       -       -       3       -  
  Non-GAAP Gross Profit   $ 312     $ 300     $ 307     $ 305     $ 311     $ 292     $ 312     $ 314     $ 1,229     $ 1,224  
                                                                                 
  Non-GAAP Gross Margin     54.2 %     53.9 %     55.2 %     55.3 %     55.8 %     55.3 %     57.5 %     57.4 %     56.5 %     54.6 %
   

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