AndhraNews.net
Home » Business News » 2014 » February » February 28, 2014

BroadSoft Reports Fourth Quarter and Full Year 2013 Financial Results


February 28, 2014 - Gaithersburg, MD

BroadSoft, Inc. (NASDAQ: BSFT), the leading global provider of Internet protocol-based, or IP-based, communications services to the telecommunications industry, today announced financial results for the fourth quarter and twelve-month period ended December 31, 2013.

Financial Highlights for the Fourth Quarter of 2013

  • Total revenue increased 13% year-over-year to $52.0 million
  • GAAP gross profit equaled 78% of total revenue; non-GAAP gross profit equaled 83% of total revenue
  • GAAP income from operations totaled $1.7 million or 3% of revenue; non-GAAP income from operations totaled $13.9 million or 27% of revenue
  • GAAP diluted EPS equaled $0.02 per common share; non-GAAP diluted EPS equaled $0.45 per common share

Results for the three months ended December 31, 2013
Total revenue rose to $52.0 million in the fourth quarter of 2013, an increase of 13% compared to $45.8 million in the fourth quarter of 2012.

Net income for the fourth quarter of 2013 was $0.5 million, or $0.02 per diluted common share, compared to net income of $4.9 million, or $0.17 per diluted common share in the fourth quarter of 2012.

On a non-GAAP basis, net income in the fourth quarter of 2013 was $13.3 million, or $0.45 per diluted common share, compared to non-GAAP net income of $13.4 million, or $0.47 per diluted common share, in the fourth quarter of 2012. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.

Results for the twelve months ended December 31, 2013
For the full year, total revenue was $178.5 million, an increase of 8% compared to $164.8 million in 2012.

Net loss for the full year of 2013 was $8.9 million, or $0.32 per basic and diluted common share, compared to net income of $12.1 million, or $0.43 per diluted common share, in 2012.

On a non-GAAP basis, net income for the full year of 2013 was $36.0 million or $1.22 per diluted common share, compared to non-GAAP net income of $40.9 million, or $1.44 per diluted common share, in 2012.

Management Commentary
"Our product strategy with mobile and converged operators was reinforced earlier this week during our very productive time at Mobile World Congress in Barcelona, Spain," said Michael Tessler, president and chief executive officer, BroadSoft. "Mobile operators clearly recognize their route to increased revenue per user is through offering innovative unified communications services to their highly-valued business customers. As the only provider with a comprehensive business telephony application server solution, we believe we are strongly positioned to enable them to meet this objective. This is validated by our growing list of VoLTE and fixed-mobile contract wins with service providers. In 2014, we will continue to innovate in the areas of mobility and cloud-delivery, which we believe are key foundations for our long-term growth."

"We finished 2013 on a strong note driven by growth in our hosted business," said Jim Tholen, chief financial officer, BroadSoft. "We're particularly pleased with our billings performance in the quarter. We achieved a record $72 million in fourth quarter billings, up 36% from the year-ago period. We believe this is a reflection of the strong business trends in the hosted communications market and that we remain well-positioned for growth in 2014."

Guidance
For the first quarter of 2014, BroadSoft anticipates revenue of $42 to $46 million. The Company also expects to achieve earnings on a non-GAAP basis of $0.01 to $0.12 per diluted common share. For the full year 2014, BroadSoft expects revenue of $206 to $212 million. The Company anticipates full year 2014 earnings on a non-GAAP basis of $1.26 to $1.46 per diluted common share.

Conference Call
BroadSoft will discuss its fourth quarter and full year 2013 results and its business outlook today via teleconference at 8:30 a.m. Eastern Time. To participate in the teleconference, callers can dial the toll free number 1-877-312-5517 (U.S. callers only) or 1-760-666-3772 (from outside the U.S.). The conference call can also be heard live via audio webcast at http://investors.broadsoft.com/events.cfm. To help ensure the conference begins on time, please dial in or connect via the web five minutes prior to the scheduled start time.

For those unable to participate in the live call, a recording will be available shortly after the conclusion of the call at http://investors.broadsoft.com/events.cfm and will remain available until immediately prior to our next earnings call.

BroadSoft has provided in this release, and will provide on this morning's teleconference, financial information that has not been prepared in accordance with generally accepted accounting principles, or GAAP. BroadSoft uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating BroadSoft's ongoing operational performance. BroadSoft's management regularly uses these non-GAAP financial measures to understand and manage its business and believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance by excluding certain non-cash expenses, and may include additional adjustments for items that are infrequent in nature. BroadSoft believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in BroadSoft's industry, many of which present similar non-GAAP financial measures to investors. A reconciliation of the non-GAAP financial measures included in this release and to be discussed on this morning's teleconference to the most directly comparable GAAP financial measures is set forth below.

Non-GAAP financial measures:
Non-GAAP net income and net income per share. BroadSoft defines non-GAAP net income as net income plus stock-based compensation expense, amortization expense for acquired intangible assets, non-cash interest expense on the Company's convertible notes, and non-cash tax expense included in the GAAP tax provision. BroadSoft defines non-GAAP income per share as non-GAAP net income divided by the weighted average shares outstanding. BroadSoft considers these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of certain non-cash expenses so management and investors can compare BroadSoft's core business operating results over multiple periods.

Non-GAAP gross profit, license gross profit, subscription and maintenance support gross profit, and professional services and other gross profit. BroadSoft defines non-GAAP gross profit as gross profit plus stock-based compensation expense and amortization expense for acquired intangible assets. BroadSoft considers non-GAAP gross profit to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and its investors can compare BroadSoft's sales margins over multiple periods. Where BroadSoft provides further breakdown of non-GAAP gross profit between license, subscription and maintenance support and professional services and other, the Company adds back the stock-based compensation expense and amortization expense, as applicable, to the related gross profit.

Non-GAAP license cost of revenue, subscription and maintenance support cost of revenue, and professional services and other cost of revenue. BroadSoft defines non-GAAP cost of revenue as cost of revenue less stock-based compensation expense and amortization expense for acquired intangible assets. BroadSoft considers non-GAAP cost of revenue to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and its investors can compare BroadSoft's cost of revenue over multiple periods. Where BroadSoft provides further breakdown of non-GAAP cost of revenue between license, subscription and maintenance support and professional services and other, the Company subtracts the stock-based compensation expense and amortization expense, as applicable, to the related cost of revenue.

Non-GAAP income from operations. BroadSoft defines non-GAAP income from operations as income from operations plus stock-based compensation expense and amortization expense for acquired intangible assets. BroadSoft considers non-GAAP income from operations to be a useful metric for management and investors because it excludes the effect of certain non-cash expenses so management and investors can compare BroadSoft's core business operating results over multiple periods. Where BroadSoft provides further breakdown of non-GAAP operating expenses for sales and marketing, research and development and general and administrative, the Company deducts stock-based compensation expense included in the applicable expense item.

Billings. BroadSoft defines billings as revenue plus the net change in our deferred revenue balance for a particular period. BroadSoft believes that billings is a key measure of our business activity.

With respect to our expectations under "Guidance" above, and regarding certain of the projections discussed on this morning's teleconference, reconciliation of both non-GAAP earnings per share guidance, and of projections regarding non-GAAP cost of sales and non-GAAP operating expenses in the first quarter of 2014, to the closest corresponding GAAP measures is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of non-cash income taxes, which are extremely difficult to project as a result of our tax status in a number of foreign jurisdictions, and stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

The presentation of non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP income from operations, billings and other non-GAAP financial measures in this release and on this morning's teleconference is not meant to be a substitute for "net income," "net income per share," "gross margin," "income from operations" or other financial measures presented in accordance with GAAP, but rather should be evaluated in conjunction with such data. BroadSoft's definition of "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations," "billings" and other non-GAAP financial measures may differ from similarly titled non-GAAP measures used by other companies and may differ from period to period. In reporting non-GAAP measures in the future, management may make other adjustments for expenses and gains it does not consider reflective of core operating performance in a particular period and may modify "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations," "billings" and such other non-GAAP measures by excluding these expenses and gains.

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "anticipate," "enable," "expect," "will," "believe," "continue" and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company's future financial performance set forth under the heading "Guidance." The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: the Company's dependence on the success of BroadWorks ® and on its service provider customers to sell services using its applications; the Company's dependence in large part on service providers' continued deployment of, and investment in, their IP-based networks; claims that the Company infringes the intellectual property rights of others; the Company's ability to integrate and achieve the expected benefits from its recent acquisitions, including finocom AG, Hosted IP Communications (Europe) Limited and Adaption Technologies; and the Company's ability to expand its product offerings, as well as those factors contained in the "Risk Factors" sections of the Company's Form 10-K for the year ended December 31, 2013 filed with the SEC on February 28, 2014, and in the Company's other filings with the SEC. All information in this release is as of February 28, 2014. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in the Company's expectations.

About BroadSoft
BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services.

Financial Statements
The financial statements set forth below are not the complete set of the Company's financial statements for the quarter and the year and are presented below without footnotes. Readers are encouraged to obtain and carefully review BroadSoft's Annual Report on Form 10-K for the year ended December 31, 2013, including all financial statements contained therein and the footnotes thereto, as filed with the SEC on February 28, 2014. Once filed with the SEC, the Form 10-K may be retrieved from the SEC's website at www.sec.gov or from BroadSoft's website at www.broadsoft.com.



BroadSoft, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

December 31, December 31,
2013 2012
-------------- --------------
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 69,866 $ 90,545
Short-term investments 93,664 73,075
Accounts receivable, net of allowance for
doubtful accounts of $128 and $139 at
December 31, 2013 and December 31, 2012,
respectively 66,595 48,980
Deferred tax assets, current 4,559 3,732
Other current assets 12,597 10,796
-------------- --------------
Total current assets 247,281 227,128
-------------- --------------
Long-term assets:
Property and equipment, net 10,110 7,361
Long-term investments 23,340 30,102
Restricted cash 581 584
Intangible assets, net 20,390 11,247
Goodwill 65,192 37,529
Deferred tax assets 16,482 629
Other long-term assets 8,121 12,326
-------------- --------------
Total long-term assets 144,216 99,778
-------------- --------------
Total assets $ 391,497 $ 326,906
============== ==============
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable and accrued expenses $ 14,957 $ 15,686
Notes payable and bank loans, current
portion -- 555
Deferred revenue, current portion 71,258 49,368
-------------- --------------
Total current liabilities 86,215 65,609
-------------- --------------
Convertible senior notes 91,549 86,451
Notes payable and bank loans -- 414
Deferred revenue 6,404 11,781
Deferred tax liabilities 3,506 --
Other long-term liabilities 3,312 1,416
-------------- --------------
Total liabilities 190,986 165,671
-------------- --------------
Commitments and contingencies (Note 12)
Stockholders' equity:
Preferred stock, $0.01 par value per
share; 5,000,000 shares authorized at
December 31, 2013 and December 31, 2012;
no shares issued and outstanding at
December 31, 2013 and December 31, 2012 -- --
Common stock, par value $0.01 per share;
100,000,000 shares authorized at December
31, 2013 and December 31, 2012;
28,305,143 and 27,913,471 shares issued
and outstanding at December 31, 2013 and
December 31, 2012, respectively 283 279
Additional paid-in capital 254,736 208,073
Accumulated other comprehensive loss (1,525) (3,008)
Accumulated deficit (52,983) (44,109)
-------------- --------------
Total stockholders' equity 200,511 161,235
-------------- --------------
Total liabilities and stockholders' equity $ 391,497 $ 326,906
============== ==============



BroadSoft, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)

Three Months Ended Year Ended December
December 31, 31,
-------------------- --------------------
2013 2012 2013 2012
(Unaudited) (Unaudited)
Revenue:
License software $ 27,349 $ 24,430 $ 94,408 $ 89,750
Subscription and maintenance
support 20,172 16,707 69,357 58,249
Professional services and
other 4,438 4,672 14,728 16,843
--------- --------- --------- ---------
Total revenue 51,959 45,809 178,493 164,842
Cost of revenue:
License software 2,405 1,739 9,241 8,643
Subscription and maintenance
support 6,353 4,319 21,368 14,831
Professional services and
other 2,550 2,310 10,771 9,012
--------- --------- --------- ---------
Total cost of revenue 11,308 8,368 41,380 32,486
--------- --------- --------- ---------
Gross profit 40,651 37,441 137,113 132,356
Operating expenses:
Sales and marketing 17,792 13,835 62,174 47,911
Research and development 12,535 9,695 49,696 36,178
General and administrative 8,604 5,468 32,580 22,863
--------- --------- --------- ---------
Total operating expenses 38,931 28,998 144,450 106,952
--------- --------- --------- ---------
(Loss) income from operations 1,720 8,443 (7,337) 25,404
Other expense (income):
Interest income (111) (108) (454) (455)
Interest expense 1,868 1,769 7,400 6,925
--------- --------- --------- ---------
Total other expense, net 1,757 1,661 6,946 6,470
--------- --------- --------- ---------
(Loss) income before income
taxes (37) 6,782 (14,283) 18,934
(Benefit from) provision for
income taxes (549) 1,903 (5,409) 6,858
--------- --------- --------- ---------
Net (loss) income $ 512 $ 4,879 $ (8,874) $ 12,076
========= ========= ========= =========
Net (loss) income per common
share:
Basic $ 0.02 $ 0.18 $ (0.32) $ 0.44
Diluted $ 0.02 $ 0.17 $ (0.32) $ 0.43
Weighted average common shares
outstanding:
Basic 28,272 27,861 28,116 27,581
Diluted 29,500 28,515 28,116 28,353
Stock-based compensation expense
included above:
Cost of revenue $ 1,305 $ 555 $ 4,861 $ 1,831
Sales and marketing 3,932 1,764 14,336 5,609
Research and development 3,367 1,558 13,225 4,498
General and administrative 2,358 847 9,262 3,084



BroadSoft, Inc.
SUMMARY OF CONSOLIDATED CASH FLOW ACTIVITY
(in thousands)

Year ended December 31,
-----------------------------------
2013 2012 2011
----------- ----------- -----------
(Unaudited)
Cash provided by (used in):
Operating activities $ 31,934 $ 30,019 $ 28,514
Investing activities (57,406) (34,153) (99,136)
Financing activities 4,831 458 117,492



BroadSoft, Inc.
BILLINGS
(Unaudited)

Three Months
Ended
December 31, Year ended December 31,
----------------- ---------------------------
2013 2012 2013 2012 2011
-------- -------- -------- -------- --------
(in thousands) (in thousands)
Beginning of period deferred
revenue balance $ 57,686 $ 54,041 $ 61,149 $ 57,136 $ 59,264
End of period deferred
revenue balance 77,662 61,149 77,662 61,149 57,136
-------- -------- -------- -------- --------
Increase (decrease) in
deferred revenue 19,976 7,108 16,513 4,013 (2,128)
Revenue 51,959 45,809 178,493 164,842 138,064
-------- -------- -------- -------- --------
Revenue plus net change in
deferred revenue 71,935 52,917 195,006 168,855 135,936
======== ======== ======== ======== ========



BroadSoft, Inc.
SOFTWARE BILLINGS
(Unaudited)

Three Months
Ended
December 31, Year ended December 31,
----------------- ---------------------------
2013 2012 2013 2012 2011
-------- -------- -------- -------- --------
(in thousands) (in thousands)
Beginning of period deferred
license software revenue
balance $ 14,515 $ 18,447 $ 18,375 $ 20,608 $ 25,628
End of period deferred
license software revenue
balance 20,149 18,375 20,149 18,375 20,608
-------- -------- -------- -------- --------
Increase/(decrease) in
deferred license software
revenue 5,634 (72) 1,774 (2,233) (5,020)
License software revenue 27,349 24,430 94,408 89,750 77,289
-------- -------- -------- -------- --------
License software revenue
plus net change in
deferred license software
revenue $ 32,983 $ 24,358 $ 96,182 $ 87,517 $ 72,269
======== ======== ======== ======== ========



BroadSoft, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)

Three
Months
Ended
Three Months Ended September Years Ended
December 31, 30, December 31,
2013 2012 2013 2013 2012
--------- --------- --------- --------- ---------
(in thousands)
Non-GAAP cost of
revenue:
GAAP license cost of
revenue $ 2,405 $ 1,739 $ 2,257 $ 9,241 $ 8,643
(percent of related
revenue) 9% 7% 10% 10% 10%
Less:
Stock-based
compensation
expense 266 124 279 1,098 553
Amortization of
acquired
intangible assets 228 244 207 856 938
--------- --------- --------- --------- ---------
Non-GAAP license cost
of revenue $ 1,911 $ 1,371 $ 1,771 $ 7,287 $ 7,152
========= ========= ========= ========= =========
(percent of related
revenue) 7% 6% 8% 8% 8%


GAAP subscription and
maintenance support
cost of revenue $ 6,353 $ 4,319 $ 5,622 $ 21,368 $ 14,831
(percent of related
revenue) 31% 26% 32% 31% 25%
Less:
Stock-based
compensation
expense 748 316 316 2,663 839
Amortization of
acquired
intangible assets 1,006 570 570 3,023 1,722
--------- --------- --------- --------- ---------
Non-GAAP subscription
and maintenance
support cost of
revenue $ 4,599 $ 3,433 $ 4,736 $ 15,682 $ 12,270
========= ========= ========= ========= =========
(percent of related
revenue) 23% 21% 27% 23% 21%


GAAP professional
services and other
cost of revenue $ 2,550 $ 2,310 $ 2,656 $ 10,771 $ 9,012
(percent of related
revenue) 57% 49% 72% 73% 54%
Less:
Stock-based
compensation
expense 291 115 294 1,100 439
--------- --------- --------- --------- ---------
Non-GAAP professional
services and other
cost of revenue $ 2,259 $ 2,195 $ 2,362 $ 9,671 $ 8,573
========= ========= ========= ========= =========
(percent of related
revenue) 51% 47% 64% 66% 51%



Three
Months
Ended
Three Months Ended September Years Ended
December 31, 30, December 31,
2013 2012 2013 2013 2012
--------- --------- --------- --------- ---------
(in thousands)
Non-GAAP gross
profit:
GAAP gross profit $ 40,651 $ 37,441 $ 32,365 $ 137,113 $ 132,356
(percent of total
revenue) 78% 82% 75% 77% 80%
Plus:
Stock-based
compensation
expense 1,305 555 1,290 4,861 1,831
Amortization of
acquired
intangible assets 1,234 814 1,049 3,879 2,660
--------- --------- --------- --------- ---------
Non-GAAP gross profit $ 43,190 $ 38,810 $ 34,704 $ 145,853 $ 136,847
========= ========= ========= ========= =========
(percent of total
revenue) 83% 85% 81% 82% 83%


GAAP license gross
profit $ 24,944 $ 22,691 $ 19,261 $ 85,167 $ 81,107
(percent of related
revenue) 91% 93% 90% 90% 90%
Plus:
Stock-based
compensation
expense 266 124 279 1,098 553
Amortization of
acquired
intangible assets 228 244 207 856 938
--------- --------- --------- --------- ---------
Non-GAAP license
gross profit $ 25,438 $ 23,059 $ 19,747 $ 87,121 $ 82,598
========= ========= ========= ========= =========
(percent of related
revenue) 93% 94% 92% 92% 92%


GAAP subscription and
maintenance support
gross profit $ 13,819 $ 12,388 $ 12,072 $ 47,989 $ 43,418
(percent of related
revenue) 69% 74% 68% 69% 75%
Plus:
Stock-based
compensation
expense 748 316 717 2,663 839
Amortization of
acquired
intangible assets 1,006 570 842 3,023 1,722
--------- --------- --------- --------- ---------
Non-GAAP subscription
and maintenance
support gross profit $ 15,573 $ 13,274 $ 13,631 $ 53,675 $ 45,979
========= ========= ========= ========= =========
(percent of related
revenue) 77% 79% 77% 77% 79%


GAAP professional
services and other
gross profit $ 1,888 $ 2,362 $ 1,032 $ 3,957 $ 7,831
(percent of related
revenue) 43% 51% 28% 27% 46%
Plus:
Stock-based
compensation
expense 291 115 294 1,100 439
--------- --------- --------- --------- ---------
Non-GAAP professional
services and other
gross profit $ 2,179 $ 2,477 $ 1,326 $ 5,057 $ 8,270
========= ========= ========= ========= =========
(percent of related
revenue) 49% 53% 36% 34% 49%



Three
Months
Ended
Three Months Ended September Years Ended
December 31, 30, December 31,
2013 2012 2013 2013 2012
--------- --------- --------- --------- ---------
(in thousands)
Non-GAAP income from
operations:
GAAP income from
operations $ 1,720 $ 8,443 $ (2,989) $ (7,337) $ 25,404
(percent of total
revenue) 3% 18% (7)% (4)% 15%
Plus:
Stock-based
compensation
expense 10,962 4,724 10,965 41,684 15,022
Amortization of
acquired
intangible assets 1,234 814 1,049 3,879 2,660
--------- --------- --------- --------- ---------
Non-GAAP income from
operations $ 13,916 $ 13,981 $ 9,025 $ 38,226 $ 43,086
========= ========= ========= ========= =========
(percent of total
revenue) 27% 31% 21% 21% 26%


GAAP operating
expense $ 38,931 $ 28,998 $ 35,354 $ 144,450 $ 106,952
(percent of total
revenue) 75% 63% 82% 81% 65%
Less:
Stock-based
compensation
expense 9,657 4,169 9,675 36,823 13,191
--------- --------- --------- --------- ---------
Non-GAAP operating
expense $ 29,274 $ 24,829 $ 25,679 $ 107,627 $ 93,761
========= ========= ========= ========= =========
(percent of total
revenue) 56% 54% 60% 60% 57%


GAAP sales and
marketing expense $ 17,792 $ 13,835 $ 15,117 $ 62,174 $ 47,911
(percent of total
revenue) 34% 30% 35% 35% 29%
Less:
Stock-based
compensation
expense 3,932 1,764 3,847 14,336 5,609
--------- --------- --------- --------- ---------
Non-GAAP sales and
marketing expense $ 13,860 $ 12,071 $ 11,270 $ 47,838 $ 42,302
========= ========= ========= ========= =========
(percent of total
revenue) 27% 26% 26% 27% 26%


GAAP research and
development expense $ 12,535 $ 9,695 $ 11,858 $ 49,696 $ 36,178
(percent of total
revenue) 24% 21% 28% 28% 22%
Less:
Stock-based
compensation
expense 3,367 1,558 3,371 13,225 4,498
--------- --------- --------- --------- ---------
Non-GAAP research and
development expense $ 9,168 $ 8,137 $ 8,487 $ 36,471 $ 31,680
========= ========= ========= ========= =========
(percent of total
revenue) 18% 18% 20% 20% 19%


GAAP general and
administrative
expense $ 8,604 $ 5,468 $ 8,379 $ 32,580 $ 22,863
(percent of total
revenue) 17% 12% 20% 18% 14%
Less:
Stock-based
compensation
expense 2,358 847 2,457 9,262 3,084
--------- --------- --------- --------- ---------
Non-GAAP general and
administrative
expense $ 6,246 $ 4,621 $ 5,922 $ 23,318 $ 19,779
========= ========= ========= ========= =========
(percent of total
revenue) 12% 10% 14% 13% 12%



Three
Months
Ended
Three Months Ended September Years Ended
December 31, 30, December 31,
2013 2012 2013 2013 2012
--------- --------- --------- --------- ---------
(in thousands, except per share data)
Non-GAAP net income
and income per
share:
GAAP net income $ 512 $ 4,879 $ (4,054) $ (8,874) $ 12,076
(percent of total
revenue) 1% 11% 23% (5)% 7%
Adjusted for:
Stock-based
compensation
expense 10,962 4,724 10,965 41,684 15,022
Amortization of
acquired
intangible assets 1,234 814 1,049 3,879 2,660
Non-cash interest
expense on our
notes 1,416 1,319 1,382 5,504 5,120
Non-cash tax
provision
(benefit) (821) 1,630 (921) (6,145) 6,023
--------- --------- --------- --------- ---------
Non-GAAP net income $ 13,303 $ 13,366 $ 8,421 $ 36,048 $ 40,901
========= ========= ========= ========= =========
(percent of total
revenue) 26% 29% 18% 20% 25%


GAAP net income per
basic common share $ 0.02 $ 0.18 $ (0.14) $ (0.32) $ 0.44
Adjusted for:
Stock-based
compensation
expense 0.39 0.17 0.39 1.48 0.54
Amortization of
acquired
intangible assets 0.04 0.03 0.04 0.14 0.10
Non-cash interest
expense on our
notes 0.05 0.04 0.05 0.19 0.18
Non-cash tax
provision
(benefit) (0.03) 0.06 (0.03) (0.22) 0.22
--------- --------- --------- --------- ---------
Non-GAAP net income
per basic common
share $ 0.47 $ 0.48 $ 0.31 $ 1.27 $ 1.48
========= ========= ========= ========= =========


GAAP net income per
diluted common share $ 0.02 $ 0.17 $ (0.14) $ (0.32) $ 0.43
Adjusted for:
Stock-based
compensation
expense 0.37 0.16 0.37 1.43 0.53
Amortization of
acquired
intangible assets 0.04 0.03 0.04 0.13 0.09
Non-cash interest
expense on our
notes 0.05 0.05 0.05 0.19 0.18
Non-cash tax
provision
(benefit) (0.03) 0.06 (0.03) (0.21) 0.21
--------- --------- --------- --------- ---------
Non-GAAP net income
per diluted common
share * $ 0.45 $ 0.47 $ 0.29 $ 1.22 $ 1.44
========= ========= ========= ========= =========

* For the full year ended December 31, 2013 and the three months ended September 30, 2013, the non-GAAP net income per diluted common share calculation included the dilutive effect of stock-based awards on the weighted average diluted common shares outstanding (such stock-based awards were not reflected in the corresponding GAAP diluted share calculations, as their effect would have been anti-dilutive as a result of the net losses for this periods). Total diluted weighted average common shares outstanding used for calculating non-GAAP net income per diluted common share were 29,060 thousand for the year ended December 31, 2013 and were 29,242 thousand for the three months ended September 30, 2013.

BSFT-F

MarketWire

Comment on this story

Share