Dell Technologies Reports Fiscal Year 2018 Third Quarter Financial Results
ROUND ROCK, Texas, Dec. 7, 2017 /PRNewswire/ --
News summary
-- Third quarter revenue of $19.6 billion, non-GAAP revenue of $19.9
billion
-- Cash flow from operations of $1.6 billion
-- Company unveils new capabilities and offerings, including new midrange
storage solutions and Future-Proof Storage Loyalty Program
Full story
Dell Technologies (NYSE: DVMT) announces its fiscal 2018 third quarter results. For the third quarter, consolidated revenue was $19.6 billion and non-GAAP revenue was $19.9 billion. During the quarter, the company generated an operating loss of $533 million(1), with non-GAAP operating income of $2.0 billion. The company generated cash flow from operations of $1.6 billion.
"In the third fiscal quarter, we delivered solid performance across the business," said Tom Sweet, chief financial officer, Dell Technologies. "Moving forward, we'll maintain our focus on profitable growth, generating strong cash flow and delivering a comprehensive and seamless solutions portfolio, incorporating the capabilities of all of the companies under Dell Technologies."
Fiscal year 2018 third quarter results:
Three Months Ended Nine Months Ended
------------------ -----------------
November 3, 2017 October 28, 2016 Change November 3, 2017 October 28, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
(in millions, except percentages; unaudited)
Net revenue $19,610 $16,247 21 % $56,725 $41,568 36 %
Operating
loss $(533) $(1,512) 65 % $(3,012) $(1,584) (90)%
Net loss
from
continuing
operations $(941) $(1,637) 43 % $(3,302) $(2,323) (42)%
Non-GAAP
net revenue $19,905 $16,777 19 % $57,710 $42,241 37 %
Non-GAAP
operating
income $1,986 $1,975 1 % $4,735 $3,270 45 %
Non-GAAP
net income
from
continuing
operations $1,109 $970 14 % $2,563 $1,596 61 %
Adjusted
EBITDA $2,318 $2,230 4 % $5,751 $3,757 53 %
Information about Dell Technologies' use of non-GAAP financial information is provided under "Non-GAAP Financial Measures" below. All comparisons in this press release are year over year unless otherwise noted.
"Our strategy to be the essential infrastructure provider is resonating with our customers, who turn to Dell Technologies to transform and digitize their environments," said Jeff Clarke, vice-chairman, Products & Operations, Dell Technologies. "We deliver a more holistic view and set of solutions, offering a higher level of innovation and integration across the edge, core and cloud that is unmatched in the industry."
Operating segments summary
Client Solutions Group (Dell) continued to outperform the market worldwide as the overall PC market moved back to positive year-over-year growth during the calendar quarter. Revenue for the third fiscal quarter was $10.0 billion, up 8 percent from the same quarter of fiscal 2017. Operating income was $672 million, a 6 percent increase.
Key highlights:
-- Double-digit revenue growth in notebooks for both commercial and
consumer
-- Delivered 19(th) consecutive quarter of year-over-year PC unit share
growth(2)
-- No. 1 workstation vendor worldwide, outperforming the industry and
positive growth in every major region(3)
-- No. 1 displays provider worldwide for the 17(th) consecutive quarter(4)
Infrastructure Solutions Group (Dell EMC) experienced growth of 2 percent quarter over quarter, with third quarter revenue of $7.5 billion and operating income of $678 million. Servers and networking revenue was $3.9 billion, which was an increase of 32 percent year over year and 3 percent quarter over quarter. Storage revenue remained flat at $3.7 billion quarter over quarter.
Key highlights:
-- Record revenue and double-digit growth for servers for 2(nd) consecutive
quarter
-- Worldwide leader in servers, outgrowing the market in units and revenue
for both mainstream and hyperscale(5)
-- Triple-digit growth in hyperconverged portfolio, led by VxRail
-- Double-digit demand growth for Isilon scale-out NAS and all-flash arrays
VMware segment revenue for the third quarter was $2.0 billion, with operating income of $639 million, or 32.7 percent of revenue.
Additional highlights
During the third quarter, Dell Technologies paid down $1.7 billion in debt, and since the close of the EMC transaction, it has paid down $9.7 billion of gross debt, excluding DFS-related debt. Also since closing the EMC transaction, the company has repurchased a total of 23.4 million shares of Class V common stock under the previously announced repurchase programs. The company ended the quarter with a cash and investments balance of $18.0 billion.
During the quarter, Dell Technologies launched a dedicated Internet of Things (IoT) division aimed at coordinating development of IoT products and services across all of our businesses. This comprehensive approach includes IoT-specific products, labs, partner program and consumption models to help customers speed the implementation of their IoT solutions.
Subsequent to the end of the quarter, Dell EMC announced the expansion of its industry-leading midrange storage portfolio with two new SC All-Flash data storage arrays, along with key software updates to Dell EMC Unity designed to boost efficiency and cost savings for mixed block and file workloads. Additionally, Dell EMC launched its new Future-Proof Storage Loyalty Program to help customers protect their investment.
Conference call information
As previously announced, the company will hold a conference call to discuss its third quarter performance this morning at 7 a.m. CST. The conference call will be broadcast live over the internet and can be accessed at investors.delltechnologies.com. For those unable to listen to the live broadcast, an archived version will be available at the same location for one year.
A slide presentation containing additional financial and operating information may be downloaded from Dell Technologies' website at investors.delltechnologies.com.
Additional resources
-- Find out more about how Dell Technologies is collaboratively solving
customers' biggest challenges by visiting our Annual Report to Customers
-- Follow the latest news on Twitter from @DellTech
About Dell Technologies
Dell Technologies is a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect their most important asset, information. The company services customers of all sizes across 180 countries - ranging from 98 percent of the Fortune 500 to individual consumers - with the industry's most comprehensive and innovative portfolio from the edge to the core to the cloud.
Copyright © 2017 Dell Inc. or its subsidiaries. All Rights Reserved. Dell, Dell Inc. and the Dell logo are trademarks of Dell Technologies in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies.
1 Due to the EMC transaction and to a lesser extent the Dell going-private transaction, significant non-cash bridging items will remain between GAAP and non-GAAP results for the next few years. As a result of the EMC merger transaction completed on September 7, 2016 and its impact on the third quarter and first nine months of Fiscal 2018, our results for the fiscal periods discussed herein are not directly comparable.
2 IDC WW Quarterly Personal Computing Device (PCD) Tracker CY17Q3
3 IDC WW Quarterly Workstation Tracker CY17Q3
4 DisplaySearch Desktop Monitor Market Tracker CY17Q2
5 IDC WW Quarterly Server Tracker CY17Q3
Non-GAAP Financial Measures:
This press release presents information about the Company's non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income from continuing operations, EBITDA and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of each of the foregoing historical non-GAAP financial measures to the most directly comparable historical GAAP financial measures is provided in the attached tables for each of the fiscal periods indicated.
Special Note on Forward-Looking Statements:
Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes.
Dell Technologies' results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: competitive pressures; Dell Technologies' reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies' ability to achieve favorable pricing from its vendors; adverse global economic conditions and instability in financial markets; Dell Technologies' execution of its growth, business and acquisition strategies; the success of Dell Technologies' cost efficiency measures; Dell Technologies' ability to manage solutions and products and services transitions in an effective manner; Dell Technologies' ability to deliver high-quality products and services; Dell Technologies' foreign operations and ability to generate substantial non-U.S.net revenue; Dell Technologies' product, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies' sales channel partners; access to the capital markets by Dell Technologies or its customers; weak economic conditions and additional regulation; counterparty default risks; the loss by Dell Technologies of any services contracts with its customers, including government contracts, and its ability to perform such contracts at its estimated costs; Dell Technologies' ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; infrastructure disruptions, cyberattacks, or other data security breaches; Dell Technologies' ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; increased costs and additional regulations and requirements as a result of Dell Technologies operation as a public company; Dell Technologies' ability to develop and maintain effective internal control over financial reporting; compliance requirements of changing environmental and safety laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; the costs, time, and effort required to be dedicated to the integration of the Dell and EMC businesses; the ability to realize the anticipated synergies from the merger with EMC; the ability to integrate EMC's technology, solutions, products, and services with those of Dell in an effective manner; the impact of the financial performance of VMware; and the market volatility of Dell Technologies' pension plan assets.
This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect the Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the Securities and Exchange Commission, including Dell Technologies' Annual Report on Form 10-K for the fiscal year ended February 3, 2017, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the Securities and Exchange Commission's website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income (Loss) and Related Financial Highlights
(in millions, except per share amounts and percentages; unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
November 3, 2017 October 28, 2016 Change November 3, 2017 October 28, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
Net revenue:
Products $14,680 $12,366 19 % $42,003 $33,510 25 %
Services 4,930 3,881 27 % 14,722 8,058 83 %
Total net revenue 19,610 16,247 21 % 56,725 41,568 36 %
------ ------ ------ ------
Cost of net revenue:
Products 12,369 10,562 17 % 36,206 28,856 25 %
Services 2,078 1,786 16 % 6,245 4,284 46 %
Total cost of net revenue 14,447 12,348 17 % 42,451 33,140 28 %
------ ------ ------ ------
Gross margin 5,163 3,899 32 % 14,274 8,428 69 %
Operating expenses:
Selling, general, and
administrative 4,625 4,556 2 % 13,989 8,647 62 %
Research and development 1,071 855 25 % 3,297 1,365 142 %
Total operating expenses 5,696 5,411 5 % 17,286 10,012 73 %
----- ----- ------ ------
Operating loss (533) (1,512) 65 % (3,012) (1,584) (90)%
Interest and other, net (682) (794) 14 % (1,800) (1,362) (32)%
---- ---- ------ ------
Loss from continuing operations
before income taxes (1,215) (2,306) 47 % (4,812) (2,946) (63)%
Income tax benefit (274) (669) 59 % (1,510) (623) (142)%
---- ---- ------ ----
Net loss from continuing
operations (941) (1,637) 43 % (3,302) (2,323) (42)%
Income (loss) from discontinued
operations, net of income taxes - (438) 100 % - 875 (100)%
Net loss (941) (2,075) 55 % (3,302) (1,448) (128)%
Less: Net loss attributable to
non-controlling interests (4) (11) 64 % (85) (12) (608)%
Net loss attributable to Dell
Technologies Inc. $(937) $(2,064) 55 % $(3,217) $(1,436) (124)%
===== ======= ======= =======
Earnings (loss) per share attributable to Dell Technologies Inc. - basic:
Continuing operations -Class V
Common Stock -basic $1.10 $0.79 $2.50 $0.79
Continuing operations -DHI
Group -basic $(2.05) $(3.62) $(6.57) $(5.70)
Discontinued operations -DHI
Group -basic $ - $(0.88) $ - $2.01
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted:
Continuing operations -Class V
Common Stock -diluted $1.09 $0.78 $2.46 $0.78
Continuing operations -DHI
Group -diluted $(2.05) $(3.63) $(6.58) $(5.70)
Discontinued operations -DHI
Group -diluted $ - $(0.88) $ - $2.01
Weighted-average shares outstanding:
Basic - Class V Common Stock 202 222 204 222
Diluted - Class V Common Stock 202 222 204 222
Basic - DHI Group 567 497 567 436
Diluted - DHI Group 567 497 567 436
Percentage of Total Net Revenue:
--------------------------------
Gross margin 26 % 24 % 25 % 20 %
Selling, general, and
administrative 24 % 28 % 25 % 21 %
Research and development 5 % 5 % 6 % 3 %
Operating expenses 29 % 33 % 30 % 24 %
Operating loss (3)% (9)% (5)% (4)%
Loss from continuing operations
before income taxes (6)% (14)% (8)% (7)%
Net loss from continuing
operations (5)% (10)% (6)% (6)%
Income tax rate 23 % 29 % 31 % 21 %
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Financial Position
(in millions; unaudited)
November 3, 2017 February 3, 2017
---------------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $11,706 $9,474
Short-term investments 2,008 1,975
Accounts receivable, net 9,189 9,420
Short-term financing receivables, net 3,643 3,222
Inventories, net 2,582 2,538
Other current assets 5,397 4,144
Total current assets 34,525 30,773
Property, plant, and equipment, net 5,378 5,653
Long-term investments 4,273 3,802
Long-term financing receivables, net 3,317 2,651
Goodwill 39,330 38,910
Intangible assets, net 29,846 35,053
Other non-current assets 1,725 1,364
Total assets $118,394 $118,206
======== ========
LIABILITIES, REDEEMABLE SHARES, AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $6,235 $6,329
Accounts payable 16,711 14,422
Accrued and other 6,901 7,119
Short-term deferred revenue 10,895 10,265
Total current liabilities 40,742 38,135
Long-term debt 45,416 43,061
Long-term deferred revenue 9,161 8,431
Other non-current liabilities 7,487 9,339
----- -----
Total liabilities 102,806 98,966
------- ------
Redeemable shares 362 231
Stockholders' equity:
Total Dell Technologies Inc.
stockholders' equity 9,519 13,243
Non-controlling interests 5,707 5,766
-----
Total stockholders' equity 15,226 19,009
Total liabilities, redeemable shares,
and stockholders' equity $118,394 $118,206
======== ========
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Cash Flows
(in millions; unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
November 3, 2017 October 28, 2016 November 3, 2017 October 28, 2016
---------------- ---------------- ---------------- ----------------
Cash flows from operating activities:
Net loss $(941) $(2,075) $(3,302) $(1,448)
Adjustments to reconcile net
loss to net cash provided by
operating activities 2,564 1,829 6,981 3,017
Change in cash from operating
activities 1,623 (246) 3,679 1,569
----- ---- ----- -----
Cash flows from investing activities:
Investments:
Purchases (1,194) (503) (3,454) (511)
Maturities and sales 935 543 2,993 561
Capital expenditures (341) (182) (902) (417)
Proceeds from sale of
facilities, land, and other
assets - 5 - 24
Capitalized software development
costs (94) (85) (281) (85)
Collections on purchased
financing receivables 15 6 25 31
Acquisition of businesses, net - (37,614) (223) (37,614)
Divestitures of businesses, net - - - -
Asset acquisitions, net (9) - (95) -
Asset dispositions, net (12) - (53) -
Other - (8) - (48)
--- --- --- ---
Change in cash from investing
activities (700) (37,838) (1,990) (38,059)
---- ------- ------ -------
Cash flows from financing activities:
Payment of dissenting shares
obligation - - - (446)
Proceeds from the issuance of
DHI Group Common Stock - 4,404 - 4,404
Proceeds from the issuance of
common stock of subsidiaries 30 1 110 101
Repurchases of DHI Group Common
Stock (4) (8) (6) (10)
Repurchases of Class V Common
Stock (300) (132) (722) (132)
Repurchases of common stock of
subsidiaries (555) (611) (555) (611)
Issuance of common stock under
employee plans - - 1 -
Payments for debt issuance costs (39) (834) (44) (849)
Proceeds from debt 8,416 43,838 13,192 45,986
Repayments of debt (5,872) (7,000) (11,181) (9,638)
Share repurchases for tax
withholdings on vesting of
equity awards (105) (26) (299) (28)
Other - 4 - 10
Change in cash from financing
activities 1,571 39,636 496 38,787
----- ------ --- ------
Effect of exchange rate changes
on cash and cash equivalents (1) (21) 47 31
Change in cash and cash
equivalents 2,493 1,531 2,232 2,328
Cash and cash equivalents at
beginning of period, including
amounts held for sale 9,213 7,373 9,474 6,576
Cash and cash equivalents at end
of the period $11,706 $8,904 $11,706 $8,904
Less: Cash included in current
assets held for sale - 82 - 82
Cash and cash equivalents from
continuing operations $11,706 $8,822 $11,706 $8,822
======= ====== ======= ======
DELL TECHNOLOGIES INC.
Segment Information
(in millions, except percentages; unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
November 3, 2017 October 28, 2016 Change November 3, 2017 October 28, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
Client Solutions Group (CSG):
-----------------------------
Net Revenue:
Commercial $6,907 $6,400 8 % $20,453 $19,343 6 %
Consumer 3,052 2,787 10 % 8,413 7,635 10 %
Total CSG net revenue $9,959 $9,187 8 % $28,866 $26,978 7 %
------ ------ ------- -------
Operating Income:
CSG operating income $672 $634 6 % $1,612 $1,503 7 %
---- ---- ------ ------
% of CSG net revenue 7 % 7 % 6 % 6 %
% of total segment operating
income 34 % 30 % 34 % 44 %
Infrastructure Solutions Group (ISG):
-------------------------------------
Net Revenue:
Servers and networking $3,851 $2,910 32 % $10,822 $9,222 17 %
Storage 3,667 3,079 19 % 11,018 4,159 165 %
Total ISG net revenue $7,518 $5,989 26 % $21,840 $13,381 63 %
------ ------ ------- -------
Operating Income:
ISG operating income $678 $897 (24)% $1,431 $1,389 3 %
---- ---- ------ ------
% of ISG net revenue 9 % 15 % 7 % 10 %
% of total segment operating
income 34 % 43 % 30 % 40 %
VMware:
-------
Net Revenue:
Total VMware net revenue $1,953 $1,289 52 % $5,596 $1,289 334 %
------ ------ ------ ------
Operating Income:
VMware operating income $639 $548 17 % $1,686 $548 208 %
---- ---- ------ ----
% of VMware net revenue 33 % 43 % 30 % 43 %
% of total segment operating
income 32 % 26 % 36 % 16 %
Reconciliation to consolidated net revenue:
-------------------------------------------
Reportable segment net revenue $19,430 $16,465 $56,302 $41,648
Other businesses (a) 475 312 1,409 530
Unallocated transactions (b) - - (1) 63
Impact of purchase accounting (c) (295) (530) (985) (673)
Total net revenue $19,610 $16,247 $56,725 $41,568
======= ======= ======= =======
Reconciliation to consolidated operating income (loss):
-------------------------------------------------
Reportable segment operating
income $1,989 $2,079 $4,729 $3,440
Other businesses (a) 6 (13) 10 (48)
Unallocated transactions (b) (9) (91) (4) (122)
Impact of purchase accounting (c) (366) (850) (1,195) (1,054)
Amortization of intangibles (1,734) (1,164) (5,250) (2,146)
Transaction-related expenses (d) (86) (1,200) (415) (1,329)
Other corporate expenses (e) (333) (273) (887) (325)
Total operating loss $(533) $(1,512) $(3,012) $(1,584)
===== ======= ======= =======
_________________
(a) Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi, and do not constitute a reportable segment, either individually or collectively, as the results of the businesses are not material to the Company's overall results and the businesses do not meet the criteria for reportable segments.
(b) Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell Technologies' reportable segments.
(c) Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.
(d) Transaction-related expenses includes acquisition, integration, and divestiture related costs.
(e) Other corporate expenses includes severance and facility action costs as well as stock-based compensation expense.
SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES
These tables present information about the Company's non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income from continuing operations, EBITDA, and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A detailed discussion of Dell Technologies' reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Financial Measures" in our periodic reports filed with the SEC. Dell Technologies encourages investors to review the non-GAAP discussion in conjunction with the presentation of non-GAAP financial measures.
DELL TECHNOLOGIES INC.
Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
November 3, 2017 October 28, 2016 Change November 3, 2017 October 28, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
Non-GAAP net
revenue $19,905 $16,777 19 % $57,710 $42,241 37 %
Non-GAAP gross
margin $6,417 $5,324 21 % $18,163 $10,224 78 %
% of non-GAAP net
revenue 32 % 32 % 31 % 24 %
Non-GAAP operating
expenses $4,431 $3,349 32 % $13,428 $6,954 93 %
% of non-GAAP net
revenue 22 % 20 % 23 % 16 %
Non-GAAP operating
income $1,986 $1,975 1 % $4,735 $3,270 45 %
% of non-GAAP net
revenue 10 % 12 % 8 % 8 %
Non-GAAP net
income from
continuing
operations $1,109 $970 14 % $2,563 $1,596 61 %
% of non-GAAP net
revenue 6 % 6 % 4 % 4 %
Adjusted EBITDA $2,318 $2,230 4 % $5,751 $3,757 53 %
% of non-GAAP net
revenue 12 % 13 % 10 % 9 %
DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
November 3, 2017 October 28, 2016 Change November 3, 2017 October 28, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
Net revenue $19,610 $16,247 21 % $56,725 $41,568 36 %
Non-GAAP adjustments:
Impact of purchase accounting 295 530 985 673
---
Non-GAAP net revenue $19,905 $16,777 19 % $57,710 $42,241 37 %
======= ======= ======= =======
Gross margin $5,163 $3,899 32 % $14,274 $8,428 69 %
Non-GAAP adjustments:
Impact of purchase accounting 307 729 1,020 897
Amortization of intangibles 914 604 2,784 806
Transaction-related expenses 5 30 22 25
Other corporate expenses 28 62 63 68
---
Non-GAAP gross margin $6,417 $5,324 21 % $18,163 $10,224 78 %
====== ====== ======= =======
Operating expenses $5,696 $5,411 5 % $17,286 $10,012 73 %
Non-GAAP adjustments:
Impact of purchase accounting (59) (121) (175) (157)
Amortization of intangibles (820) (560) (2,466) (1,340)
Transaction-related expenses (81) (1,170) (393) (1,304)
Other corporate expenses (305) (211) (824) (257)
Non-GAAP operating expenses $4,431 $3,349 32 % $13,428 $6,954 93 %
====== ====== ======= ======
Operating loss $(533) $(1,512) 65 % $(3,012) $(1,584) (90)%
Non-GAAP adjustments:
Impact of purchase accounting 366 850 1,195 1,054
Amortization of intangibles 1,734 1,164 5,250 2,146
Transaction-related expenses 86 1,200 415 1,329
Other corporate expenses 333 273 887 325
Non-GAAP operating income $1,986 $1,975 1 % $4,735 $3,270 45 %
====== ====== ====== ======
Net loss from continuing
operations $(941) $(1,637) 43 % $(3,302) $(2,323) (42)%
Non-GAAP adjustments:
Impact of purchase accounting 366 850 1,195 1,054
Amortization of intangibles 1,734 1,164 5,250 2,146
Transaction-related expenses 86 1,200 415 1,326
Other corporate expenses 333 273 887 325
Aggregate adjustment for
income taxes (469) (880) (1,882) (932)
Non-GAAP net income from
continuing operations $1,109 $970 14 % $2,563 $1,596 61 %
====== ==== ====== ======
Net loss from continuing
operations $(941) $(1,637) 43 % $(3,302) $(2,323) (42)%
Adjustments:
Interest and other, net 682 794 1,800 1,362
Income tax benefit (274) (669) (1,510) (623)
Depreciation and amortization 2,137 1,576 6,491 2,799
EBITDA $1,604 $64 NM $3,479 $1,215 186 %
====== === ====== ======
EBITDA $1,604 $64 NM $3,479 $1,215 186 %
Adjustments:
Stock-based compensation
expense 221 144 630 177
Impact of purchase accounting 298 693 990 851
Transaction-related expenses 86 1,200 415 1,366
Other corporate expenses 109 129 237 148
Adjusted EBITDA $2,318 $2,230 4 % $5,751 $3,757 53 %
====== ====== ====== ======
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