SOURCE: Callidus Software Inc.

Callidus Software Inc.

November 01, 2016 16:05 ET

CallidusCloud Announces Third Quarter SaaS Revenue Increases 26% to $38.7 Million

DUBLIN, CA--(Marketwired - Nov 1, 2016) - Callidus Software Inc. (NASDAQ: CALD)

  • Total Q3 Revenue of $52.5 Million
  • Operating Cash Flow of $7.8 Million
  • Completed Follow-on Offering Raising $87.1 Million

Callidus Software Inc. (NASDAQ: CALD), a global leader in cloud-based sales, marketing, learning and customer experience solutions, today announced financial results for the third quarter ended September 30, 2016.

"Q3 was a great quarter with solid sales execution, strong financial performance, and a successful follow-on offering," said Leslie Stretch, president and CEO of CallidusCloud. "We anticipate our sales momentum will continue in 2017."

Financial Highlights for the Third Quarter 2016
SaaS revenue was $38.7 million, an increase of 26% over the same quarter in the prior year, while maintenance revenue was $2.8 million, resulting in total recurring revenue of $41.5 million. SaaS revenue growth continues to benefit from success in our Lead to Money suite. Professional services revenue was $11.0 million. Total reported revenue was $52.5 million for the third quarter, an increase of 17%. SaaS billings growth rate was 31% and normalized billings growth was 26% over last year. Cash and short-term investments were $186.2 million, including $87.1 million in net proceeds from our September 2016 follow-on stock offering. Cash flow from operations for the quarter was $7.8 million, compared to cash flow from operations of $9.9 million in the same quarter of the prior year.

GAAP Performance

  • Recurring revenue gross margin was 74%, consistent with the corresponding period in the prior year.
  • Overall gross margin was 62%, compared to 61% for the same quarter in the prior year.
  • Operating loss was $3.6 million compared to $2.0 million for the same quarter in the prior year.
  • Net loss was $3.9 million, or ($0.07) on a per share basis, compared to net loss of $2.2 million, or ($0.04) on a per share basis for the same quarter in the prior year.

Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

  • Recurring revenue gross margin was 77%, consistent with the corresponding period in the prior year.
  • Overall gross margin was 65%, compared to 64% for the same quarter in the prior year.
  • Operating income was $5.0 million, compared to $3.5 million for the same quarter in the prior year.
  • Net income was $4.8 million, or $0.08 per fully diluted share, compared to $3.2 million, or $0.06 per fully diluted share, for the same quarter in the prior year.

Business Highlights for the Third Quarter 2016

  • CallidusCloud was named in the top 20 of this year's Selling Power 50 Best Companies to Sell For list. The list recognizes companies that have great sales processes including training, coaching and compensation strategies.
  • CallidusCloud released powerful new innovations in its Lead to Money suite including new compensation plan distribution and performance visualizations in Commissions and voice-driven coaching objectives in Sales Performance Manager.
  • CallidusCloud's Litmos Learning Platform was named a leader in Learning Management Systems, and also earned the highest overall score for satisfaction among more than 100 vendors, by G2 Crowd, an industry-leading review platform.
  • CallidusCloud completed a follow-on stock offering of 5.1 million shares, resulting in $87.1 million in net cash proceeds to the Company. The offering, which was over-subscribed, brings new investors into the stock and further strengthens our financial condition.

Financial Outlook for 2016 - Fourth Quarter and Full Year

For the fourth quarter of 2016, the Company expects SaaS revenue to be between $41.0 million and $42.0 million. Maintenance revenue is expected to be between $2.0 million and $2.2 million. The Company expects total revenue to be between $54.0 million and $55.0 million. GAAP operating loss is expected to be between $3.6 million and $4.1 million, with GAAP net loss per share between $0.06 and $0.07. Non-GAAP operating income is expected to be between $4.7 million and $5.7 million, with non-GAAP income per diluted share between $0.06 and $0.08. We expect normalized billings for the fourth quarter to be between 25 and 30%.

For the full year of 2016, the Company is updating SaaS revenue guidance to be between $150.4 million and $151.4 million, or a 30 to 31% growth rate. Maintenance revenue is expected to be between $10.9 million and $11.1 million. The Company expects total revenue to be between $204.6 million and $205.6 million. GAAP operating loss is expected to be between $16.8 million and $17.3 million, with GAAP net loss per share between $0.31 and $0.32. The Company is updating non-GAAP operating income to be between $17.0 million and $18.0 million, with non-GAAP income per diluted share between $0.25 and $0.27.

Preliminary Outlook for 2017

For the full year of 2017, the Company expects SaaS revenue to be between $189.0 million and $196.0 million, representing 25 to 30% growth, and maintenance revenue between $5.0 million and $6.0 million. Total revenue is expected to be between $240.0 million and $246.0 million.

Conference Call

In conjunction with this announcement CallidusCloud will host a conference call at 1:30 p.m. Pacific Daylight Time (PDT) today to discuss the third quarter and outlook for the fourth quarter 2016 and full year 2016. The conference call will be available via live webcast at the Investor Relations section of CallidusCloud's website.

Webcast site: http://www.calliduscloud.com/about-us/investor-relations
Dial-in: 866-324-2828 (International callers: 678-509-7525)
Passcode: 94533428
Replay information: A webcast replay will be available on the Investor Relations section of our website under Calendar of Events.

For more information, please visit: http://www.calliduscloud.com/about-us/investor-relations/

About CallidusCloud
Callidus Software Inc. (NASDAQ: CALD), doing business as CallidusCloud®, is the global leader in cloud-based sales, marketing, learning and customer experience solutions. CallidusCloud enables organizations to accelerate and maximize their Lead to Money process with a complete suite of solutions that identify the right leads, ensure proper territory and quota distribution, enable sales forces, automate configure price quote, and streamline sales compensation -- driving bigger deals, faster. Approximately 5,000 leading organizations, across all industries, rely on CallidusCloud to optimize the Lead to Money process to close more deals for more money in record time.

For more information, please visit www.calliduscloud.com.

Non-GAAP Financial Measures

In this release, CallidusCloud has provided additional financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross margin, non-GAAP recurring revenue gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per diluted share. CallidusCloud uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors as a supplement to GAAP measures in evaluating CallidusCloud's operating performance. CallidusCloud believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in CallidusCloud's industry, many of which present non-GAAP financial measures that may resemble our non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Our non-GAAP measures reflect adjustments based on the following items:

Stock-based compensation expense: We have excluded the effect of stock-based compensation expense from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, net income and net income per diluted share. We believe the exclusion of stock-based compensation expense provides a useful comparison of our operating results to our peers.

Restructuring and other expense: We have excluded the effect of restructuring and other expense from our non-GAAP operating expenses, operating income, net income and net income per diluted share. Restructuring and other expense consists of employee severance, facility exit costs, impairment of intangible assets and incremental depreciation expense as a result of the change in the estimated useful life of assets abandoned. We feel it is useful to investors to understand the effects of these items on our financial results.

Patent litigation and settlement costs and patent litigation estimates: We have excluded the effect of patent infringement and litigation defense costs, settlement costs and patent litigation estimates from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, net income and net income per diluted share. We believe patent litigation and settlement costs and patent litigation estimates are not indicative of our ongoing business operations, and are inconsistent in amount and frequency; as such we exclude these costs during our evaluation of our business performance.

Amortization of acquired intangible assets: We have excluded the effect of amortization and gain on sale of acquired intangibles which include developed technology, customer relationships, trade names, domain names, patents and licenses from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, other income and expense, net income and net income per diluted share. Amortization of acquired intangibles are significantly affected by timing, and as such, can be inconsistent in amount and nature.

Acquisition-Related Costs: We have excluded the costs related to acquisitions from our non-GAAP operating expenses, operating income, net income and net income per diluted share. These costs include legal and transactional costs associated with acquisition activities as well as expense related to earnouts that we would not have otherwise incurred in the periods presented as part of our continuing operations. We believe the exclusion of acquisition-related costs provides a useful comparison of our operating results to our peers.

Taxes: We have excluded the tax expense related to the acquisitions from our non-GAAP operating net income and net income per diluted share. These costs include the tax expense relating to the difference between book and tax goodwill that we would not have otherwise incurred in presenting taxes on our normal operating activities.

Additionally, the Company believes the following supplemental non-GAAP financial information is useful to investors and others in assessing its operating performance. A calculation of the supplemental non-GAAP financial information is provided in the table titled "Non-GAAP Supplemental Financial Information."

  • SaaS billings is calculated as SaaS revenue plus the change in SaaS deferred revenue in a period.
  • Normalized SaaS billings is calculated as SaaS revenue plus the change in SaaS deferred revenue in a period plus or minus the effect of multiple year SaaS billings in that period.

We believe that normalized SaaS billings provide valuable insight into the sales of our solutions and the performance of our business. We do not consider normalized SaaS billings as a substitute for revenue recognition or revenue measurement.

Note on Forward-Looking Statements

The forward-looking statements included in this press release, including for example discussion of our commercial prospects, estimates of future revenues, operating income/loss and expenses, earnings per share, stock-based compensation expenses, amortization of acquired intangible assets, acquisition-related costs, restructuring and other expenses, and patent litigation and settlement costs and estimates reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, relative growth of our recurring revenue, potential decreases in customer spending, uncertainty regarding purchasing trends in the cloud software market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in periodic reports we file with the Securities and Exchange Commission, including our most recent Quarterly Report on Form 10-Q which may be obtained by contacting CallidusCloud's Investor Relations department at 415-445-3238, or from the Investor Relations section of CallidusCloud's website (http://www.calliduscloud.com/about-us/investor-relations/). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.

© 2016 Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, 6FigureJobs, BridgeFront, Clicktools, iCentera, Lead to Money, LeadFormix, LeadRocket, Learnpass, Litmos, the Litmos logo, Love Your LMS, Portals for Mortals, Producer Pro, SalesGenius, Surve, Syncfrog, Thunderbridge, TrueComp, ViewCentral and Badgeville are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

CALLIDUS SOFTWARE INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands, except per share data)  
(unaudited)  
                         
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2016     2015     2016     2015  
Revenue:                                
  Recurring   $ 41,465     $ 34,301     $ 118,361     $ 93,907  
  Services and license     11,042       10,643       32,275       32,396  
    Total revenue     52,507       44,944       150,636       126,303  
Cost of revenue:                                
  Recurring     10,948       9,034       31,047       25,233  
  Services and license     9,229       8,318       25,822       24,041  
    Total cost of revenue     20,177       17,352       56,869       49,274  
Gross profit     32,330       27,592       93,767       77,029  
                                 
Operating expenses:                                
  Sales and marketing     18,357       14,855       56,942       43,377  
  Research and development     8,637       6,846       23,127       18,886  
  General and administrative     8,894       7,883       26,445       24,413  
  Restructuring and other     80       -       482       234  
    Total operating expenses     35,968       29,584       106,996       86,910  
Operating loss     (3,638 )     (1,992 )     (13,229 )     (9,881 )
Interest income and other income (expense), net     (3 )     (38 )     (55 )     (414 )
Interest expense     (48 )     (26 )     (130 )     (149 )
Loss before provision for income taxes     (3,689 )     (2,056 )     (13,414 )     (10,444 )
Provision for income taxes     258       187       755       566  
Net loss   $ (3,947 )   $ (2,243 )   $ (14,169 )   $ (11,010 )
Net loss per share                                
  Basic and Diluted   $ (0.07 )   $ (0.04 )   $ (0.25 )   $ (0.20 )
                                 
Weighted average shares used in computing net loss per share:                                
  Basic and Diluted     58,009       56,104       57,237       54,156  
                                   
                                   
                                   
CALLIDUS SOFTWARE INC.  
CONSOLIDATED BALANCE SHEETS  
(In thousands)  
(unaudited)  
             
    September 30,     December 31,  
    2016     2015  
ASSETS  
Current assets:                
  Cash and cash equivalents   $ 167,116     $ 77,232  
  Short-term investments     19,123       19,977  
  Accounts receivable, net     48,444       43,461  
  Prepaid and other current assets     14,699       11,385  
    Total current assets     249,382       152,055  
                 
Property and equipment, net     31,566       20,540  
Goodwill     56,682       50,146  
Intangible assets, net     17,684       14,885  
Deposits and other non current assets     3,947       4,016  
    Total assets   $ 359,261     $ 241,642  
                 
   
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities:                
  Accounts payable   $ 3,572     $ 3,636  
  Accrued payroll and related expenses     13,983       12,510  
  Accrued expenses     18,627       11,017  
  Deferred revenue     88,690       74,644  
    Total current liabilities     124,872       101,807  
                 
Deferred revenue, noncurrent     4,308       5,186  
Deferred income taxes, noncurrent     1,455       1,477  
Other noncurrent liabilities     6,401       4,371  
    Total liabilities     137,036       112,841  
                 
Stockholders' equity:                
  Common stock     63       56  
  Additional paid-in capital     538,225       428,776  
  Treasury stock     (14,430 )     (14,430 )
  Accumulated other comprehensive loss     (3,597 )     (1,735 )
  Accumulated deficit     (298,036 )     (283,866 )
    Total stockholders' equity     222,225       128,801  
    Total liabilities and stockholders' equity   $ 359,261     $ 241,642  
                 
                 
                 
CALLIDUS SOFTWARE INC.  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
(In thousands)  
(unaudited)  
             
    Nine Months Ended September 30,  
    2016     2015  
Cash flows from operating activities:                
  Net loss   $ (14,169 )   $ (11,010 )
  Adjustments to reconcile net loss to net cash used provided by activities:                
    Depreciation expense     5,656       4,501  
    Amortization of intangible assets     4,616       3,985  
    Provision for doubtful accounts     1,227       1,097  
    Stock-based compensation     20,910       13,924  
    Loss on foreign currency from market-to-market derivative     (1 )     -  
    Excess tax benefits from stock-based compensation     (26 )     (29 )
    Deferred income taxes     13       (381 )
    Loss on disposal of property and equipment     22       10  
    Net amortization on investments     132       78  
    Changes in operating assets and liabilities:                
      Accounts receivable     (6,037 )     3,373  
      Prepaid and other current assets     (3,374 )     487  
      Other noncurrent assets     118       104  
      Accounts payable     19       3  
      Accrued expenses     (225 )     17  
      Accrued payroll and related expenses     1,473       14  
      Accrued restructuring and other expenses     314       (99 )
      Deferred revenue     10,101       4,448  
Net cash provided by operating activities     20,769       20,522  
                 
Cash flows from investing activities:                
  Purchases of investments     (12,113 )     (19,444 )
  Proceeds from maturities and sale of investments     12,876       3,554  
  Purchases of property and equipment     (7,091 )     (9,548 )
  Purchases of intangible assets     (687 )     (524 )
  Acquisitions, net of cash acquired     (11,500 )     (4,365 )
Net cash used in investing activities     (18,515 )     (30,327 )
                 
Cash flows from financing activities:                
  Proceeds from follow-on offering, net of issuance costs     87,144       64,372  
  Proceeds from issuance of common stock     4,082       4,236  
  Restricted stock units acquired to settle employee withholding liability     (2,705 )     (2,656 )
  Excess tax benefits from stock-based compensation     26       29  
  Repayment of line of credit     -       (10,482 )
  Payment of consideration related to acquisitions     (510 )     (1,802 )
  Payment of principal under capital leases     -       (778 )
Net cash provided by financing activities     88,037       52,919  
Effect of exchange rates on cash and cash equivalents     (407 )     (197 )
Net increase in cash and cash equivalents     89,884       42,917  
Cash and cash equivalents at beginning of period     77,232       34,200  
Cash and cash equivalents at end of period   $ 167,116     $ 77,117  
                 
                 
                 
CALLIDUS SOFTWARE INC.  
GAAP TO NON-GAAP ADJUSTMENT SUMMARY  
(In thousands)  
(unaudited)  
                         
GAAP to Non-GAAP adjustments include stock-based compensation, amortization of acquired intangible assets, patent litigation and settlement costs and estimates, acquisition-related costs, tax impact from acquisitions and restructuring and other expenses as follows:  
   
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2016     2015     2016     2015  
Cost of revenues:                                
  Recurring   $ 1,334     $ 984     $ 3,656     $ 2,789  
  Services and license     530       287       1,567       886  
Operating expenses:                                
  Sales and marketing     2,675       1,657       7,616       4,926  
  Research and development     1,251       745       3,592       2,192  
  General and administrative     2,782       1,533       8,614       6,517  
  Restructuring and other     80       244       482       478  
  Taxes     82       -       142       -  
    Total   $ 8,734     $ 5,450     $ 25,669     $ 17,788  
                                     
                                     
                                     
CALLIDUS SOFTWARE INC.  
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  
(unaudited)  
(In thousands, except for percentages)  
                         
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2016     2015     2016     2015  
                                 
Non-GAAP gross profit reconciliation:                                
                                 
Gross profit   $ 32,330     $ 27,592     $ 93,767     $ 77,029  
                                 
  Gross margin     62 %     61 %     62 %     61 %
Add back:                                
  Non-cash stock-based compensation     918       546       2,916       1,661  
  Non-cash amortization of acquired intangible assets     946       725       2,306       2,015  
Non-GAAP gross profit   $ 34,194     $ 28,863     $ 98,989     $ 80,705  
                                 
  Gross margin     65 %     64 %     66 %     64 %
                                 
Non-GAAP recurring revenue gross profit reconciliation:                                
                                 
Recurring revenue gross profit   $ 30,517     $ 25,267     $ 87,314     $ 68,674  
                                 
  Recurring revenue gross margin     74 %     74 %     74 %     73 %
Add back:                                
  Non-cash stock-based compensation     388       269       1,350       806  
  Non-cash amortization of acquired intangible assets     946       715       2,306       1,984  
Non-GAAP recurring revenue gross profit   $ 31,851     $ 26,251     $ 90,970     $ 71,464  
                                 
  Recurring revenue gross margin     77 %     77 %     77 %     76 %
                                 
Non-GAAP operating expense reconciliation:                                
                                 
Operating expenses   $ 35,968     $ 29,584     $ 106,996     $ 86,910  
  Operating expenses, as a % of total revenues     69 %     66 %     71 %     69 %
Subtract:                                
  Non-cash stock-based compensation     (5,928 )     (3,469 )     (17,993 )     (12,262 )
  Non-cash amortization of acquired intangible assets     (501 )     (437 )     (1,308 )     (1,278 )
  Patent litigation and settlement costs     (29 )     (29 )     (86 )     (94 )
  Acquisition-related costs     (250 )     (244 )     (435 )     (244 )
  Restructuring and other     (80 )     -       (482 )     (234 )
Non-GAAP operating expenses   $ 29,180     $ 25,405     $ 86,692     $ 72,798  
  Non-GAAP operating expenses, as a % of total revenues     56 %     57 %     58 %     58 %
                                 
                                 
                                 
CALLIDUS SOFTWARE INC.  
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  
(unaudited)  
(In thousands, except for percentages and per share data)  
                         
                         
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2016     2015     2016     2015  
Non-GAAP operating income (loss) reconciliation:                                
                                 
Operating loss   $ (3,638 )   $ (1,992 )   $ (13,229 )   $ (9,881 )
  Operating loss, as a % of total revenues     (7 )%     (4 )%     (9 )%     (8 )%
Add back:                                
  Non-cash stock-based compensation     6,846       4,015       20,910       13,924  
  Non-cash amortization of acquired intangible assets     1,447       1,162       3,614       3,293  
  Patent litigation and settlement costs     29       29       86       94  
  Acquisition-related costs     250       244       435       244  
  Restructuring and other     80       -       482       234  
Non-GAAP operating income   $ 5,014     $ 3,458     $ 12,298     $ 7,908  
  Non-GAAP operating income, as a % of total revenues     10 %     8 %     8 %     6 %
                                 
Non-GAAP net income (loss) reconciliation:                                
                                 
Net loss   $ (3,947 )   $ (2,243 )   $ (14,169 )   $ (11,010 )
  Net loss, as a % of total revenues     (8 )%     (5 )%     (9 )%     (9 )%
Add back:                                
  Non-cash stock-based compensation     6,846       4,015       20,910       13,924  
  Non-cash amortization of acquired intangible assets     1,447       1,162       3,614       3,293  
  Patent litigation and settlement costs     29       29       86       94  
  Acquisition-related costs     250       244       435       244  
  Restructuring and other     80       -       482       234  
  Taxes     82       -       142       -  
Non-GAAP net income   $ 4,787     $ 3,207     $ 11,500     $ 6,779  
  Non-GAAP net income, as a % of total revenues     9 %     7 %     8 %     5 %
                                 
Non-GAAP net income (loss) per share reconciliation:                                
                                 
Net loss per basic and diluted share   $ (0.07 )   $ (0.04 )   $ (0.25 )   $ (0.20 )
Add back:                                
  Non-cash stock-based compensation     0.11       0.07       0.35       0.25  
  Non-cash amortization of acquired                                
  intangible assets     0.02       0.02       0.06       0.06  
  Patent litigation and settlement costs     -       -       -       -  
  Acquisition-related costs     0.01       0.01       0.01       0.01  
  Restructuring and other     -       -       0.01       -  
  Taxes     -       -       -       -  
  Diluted share impact on GAAP loss     0.01       -       0.01       -  
Non-GAAP net income per diluted share   $ 0.08     $ 0.06     $ 0.19     $ 0.12  
                                 
Basic and fully diluted shares reconciliation:                                
                                 
Basic shares     58,009       56,104       57,237       54,156  
Add back:                                
  Weighted average effect of dilutive securities     2,212       1,386       2,008       1,551  
Diluted shares     60,221       57,490       59,245       55,707  
                                 
                                 
                                 
CALLIDUS SOFTWARE INC.
Non-GAAP Supplemental Financial Information
(unaudited)
(In thousands, except for percentages)
           
           
    Three Months Ended
    September 30,
SaaS Billings   2016     2015
SaaS revenue   $ 38,723     $ 30,795
               
Add back:              
Increase in SaaS deferred revenue     6,503       3,690
SaaS billings   $ 45,226     $ 34,485
               
SaaS billings growth rate     31 %      
               
Normalized Billings              
SaaS billings   $ 45,226     $ 34,485
Multi-year billings impact     (1,181 )     539
Normalized SaaS billings   $ 44,045     $ 35,024
               
Normalized SaaS billings growth rate     26 %      
               
               
               
 CALLIDUS SOFTWARE INC.
FINANCIAL OUTLOOK
 

The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the Company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the Company assumes no obligation to update.

REVENUE GUIDANCE
(In thousands)
(unaudited)
         
    Three Months Ended   Twelve Months Ended
    December 31, 2016   December 31, 2016
         
SaaS revenue   $41,000 - $42,000   $150,400 - $151,400
Maintenance revenue   $2,000 - $2,200   $10,900 - $11,100
Total revenue   $54,000 - $55,000   $204,600 - $205,600
         
RECONCILIATION OF GAAP TO NON-GAAP FORWARD LOOKING GUIDANCE MEASURES  
(In thousands, except for per share data)  
(unaudited)  
                         
                         
    Three Months Ended     Twelve Months Ended  
    December 31, 2016     December 31, 2016  
    From     To     From     To  
Non-GAAP operating income (loss) reconciliation:                                
                                 
GAAP operating loss   $ (3,600 )   $ (4,100 )   $ (16,800 )   $ (17,300 )
                                 
Add back:                                
  Non-cash stock-based compensation     6,600       7,100       27,500       28,000  
  Non-cash amortization of acquired intangible assets     1,400       1,800       5,000       5,400  
  Acquisition, patent litgation, restructuring and other     300       900       1,300       1,900  
Non-GAAP operating income   $ 4,700     $ 5,700     $ 17,000     $ 18,000  
                                 
                                 
    Three Months Ended     Twelve Months Ended  
    December 31, 2016     December 31, 2016  
Non-GAAP net income (loss) per share reconciliation:   From     To     From     To  
                                 
GAAP net loss per basic share   $ (0.06 )   $ (0.07 )   $ (0.31 )   $ (0.32 )
                                 
Add back:                                
  Non-cash stock-based compensation     0.10       0.11       0.45       0.46  
  Non-cash amortization of acquired intangible assets     0.02       0.03       0.08       0.09  
  Acquisition, patent litgation, restructuring and other     -       0.01       0.02       0.03  
  Taxes     -       -       -       -  
  Diluted share impact on GAAP earnings     -       -       0.01       0.01  
Non-GAAP net income per diluted share   $ 0.06     $ 0.08     $ 0.25     $ 0.27  
                                 
Shares used to calculate guidance:                                
  Basic shares     63,500       64,000       58,500       59,000  
  Diluted shares     66,000       66,500       61,000       61,500  
                                   

Contact Information