These companies may be a good representation of how the Info Security landscape looks. Focus on the top line numbers.
1. Radware
Record Annual Revenues of $189.2 Million; Record Quarterly Revenues of $49.8 Million; Record Quarterly Non-GAAP EPS $0.48
TEL AVIV, Israel, January 29, 2013 /PRNewswire/ --
Radware®, a global leader of application delivery and application security solutions for virtual and cloud data centers, today reported quarterly revenues of $49.8 million for the fourth quarter of 2012. This represents an increase of 5% compared with revenues of $47.5 million for the third quarter of 2012, and an increase of 11% compared with revenues of $45.1 million in the fourth quarter of 2011.
Net income on a GAAP basis for the fourth quarter of 2012 was $9.1 million or $0.39 per diluted share, compared with net income of $8.2 million or $0.35 per diluted share for the third quarter of 2012 and to $6.6 million or $0.29 per diluted share in the fourth quarter of 2011.
Net income on a Non-GAAP basis for the fourth quarter of 2012 was $11.2 million or $0.48 per diluted share, compared with net income of $10.4 million or $0.45 per diluted share for the third quarter of 2012 and to $9.5 million or $0.42 per diluted share in the fourth quarter of 2011.
Revenues for 2012 amounted to $189.2 million, an increase of 13% compared with revenues of $167.0 million in 2011.
Net income on a GAAP basis for 2012 amounted to $31.8 million or $1.36 per diluted share, representing an increase of 49% compared with net income of $21.3 million or $0.93 per diluted share in 2011.
Net income on a Non-GAAP basis for 2012 amounted to $40.5 million or $1.74 per diluted share, representing an increase of 32% compared with net income of $30.7 million or $1.34 per diluted share in 2011.
"2012 represented another record year for us," states Roy Zisapel president and chief executive officer, Radware. "The transition to virtual data center architectures, private and public cloud build-outs, the explosion of mobile data, as well as surge in cyber security attacks led the demand for our application delivery and attack mitigation solutions."
"Despite a year of ongoing macro-economic uncertainty, we are pleased by our solid execution in meeting critical industry demands and look for these IT growth trends to continue in 2013," added Zisapel.
2. Symantec Corp
MOUNTAIN VIEW, CA--(Marketwire - Jan 23, 2013) - Symantec Corp. today reported the results of its third quarter of fiscal year 2013, ended Dec. 28, 2012. GAAP revenue for the fiscal third quarter was $1.79 billion, up 4 percent year-over-year and up 5 percent after adjusting for currency.
Click to Tweet: #SYMC posts record third quarter results: http://bit.ly/YlGfo4
"We continue to deliver better than expected results," said Steve Bennett, president and chief executive officer, Symantec. "I'm so proud of our employees. These types of results don't happen by accident. The fact that we can deliver these results in a period of significant transition and uncertainty is a testament to our employees, the strength of our brand, the quality of our products and the scope of our customer base."
"Strength in EMEA, information management and license revenue drove our FX adjusted organic revenue growth of 4%," said James Beer, executive vice president and chief financial officer, Symantec. "Our better than expected top line growth coupled with disciplined expense management drove non-GAAP operating margins of 25.6% even as we are investing in certain areas to better serve our customer needs."
GAAP Results for third quarter of fiscal year 2013
GAAP operating margin was 16.6 percent compared with 17.5 percent for the same quarter last year, down 90 basis points year-over-year.
GAAP net income was $212 million compared with net income of $240 million for the year-ago period, down 12 percent year-over-year.
GAAP diluted earnings per share were $0.30 compared with $0.32 for the year ago quarter, down 6 percent year-over-year.
GAAP deferred revenue was $3.806 billion compared with $3.665 billion for the year ago quarter, up 4 percent year-over-year on an actual and currency-adjusted basis.
Cash flow from operating activities was $463 million compared with $403 million for the year ago period, up 15 percent year-over-year.
Symantec ended the quarter with cash, cash equivalents and short-term investments of $4.25 billion. During the quarter, Symantec repurchased 11 million shares for $200 million at an average price of $17.94. Symantec has $283 million remaining in the current board authorized stock repurchase plan.
Non-GAAP Results for third quarter of fiscal year 2013
Non-GAAP operating margin was 25.6 percent compared with 26.2 percent for the same quarter last year, down 60 basis points year-over-year and down 80 basis points after adjusting for currency, due to increased investment in certain areas to better serve our customer needs.
Non-GAAP net income was $313 million compared to $314 million for the same quarter last year.
Non-GAAP diluted earnings per share were $0.45 compared with earnings per share of $0.42 for the year-ago quarter, up 7 percent year-over-year.
Business Segment Highlights for the Quarter
The Consumer segment represented 30 percent of total revenue and increased 1 percent year-over-year (increased 2 percent after adjusting for currency).
The Security and Compliance segment represented 29 percent of total revenue and increased 3 percent year-over-year (increased 4 percent after adjusting for currency).
The Storage and Server Management segment represented 37 percent of total revenue and increased 8 percent year-over-year (increased 9 percent after adjusting for currency).
Services represented 4 percent of total revenue and increased 10 percent year-over-year (increased 9 percent after adjusting for currency).
Geographic Highlights for the Quarter
International revenue represented 52 percent of total revenue and increased 6 percent year-over-year (increased 8 percent after adjusting for currency).
The Europe, Middle East and Africa region represented 28 percent of total revenue and increased 6 percent year-over-year (increased 10 percent after adjusting for currency).
Asia Pacific/Japan revenue represented 19 percent of total revenue and increased 7 percent year-over-year (increased 6 percent after adjusting for currency).
The Americas, including the United States, Latin America and Canada, represented 53 percent of total revenue and increased 3 percent year-over-year on an actual and currency-adjusted basis.
3. The KEYW Holding Corporation
HANOVER, Md., Feb. 6, 2013 (GLOBE NEWSWIRE) -- The KEYW Holding Corporation announces revenue for full year 2012 of $243.5 million, as compared to $190.6 million in 2011, an increase of 28%. Net income for 2012 was $1.0 million and included Research and Development expenses of $5.4 million. KEYW increased Research and Development spending by 130% in 2012 versus 2011. Fully-diluted GAAP earnings per share (EPS) was $0.03. Acquisition-related amortization and other one-time expenses reduced 2012 fully-diluted GAAP EPS by $0.42. Adjusted EBITDA (as described below) for 2012 was $33.0 million, or 13.5% of 2012 revenue.
For the fourth quarter of 2012, revenue was $74.2 million and net income was $0.2 million. Fourth quarter 2012 adjusted EBITDA was $10.4 million, or 14% of revenue. During the fourth quarter, KEYW received $125 million in funded contract actions and ended the year with 1,104 employees.
"I am very pleased with KEYW's performance in 2012. Not only did we continue to significantly grow the work we do for our Intelligence Community customers, but we made substantial progress in moving down one of our 'horizontal path' efforts, Project G," commented Leonard Moodispaw, CEO and President of KEYW Corporation. "In addition to engaging our three early adopters, we have also begun the transition to the commercial phase of Project G. And the pipeline of potential customers is still building. I continue to expect 2013 to be a transformational year for KEYW and I am enthusiastic about the opportunities we see in all three of our core focus areas: counter-terrorism, cyber, and geospatial."
As noted, revenue for the fourth quarter of 2012 was $74.2 million, an increase of 48% versus revenue of $50.1 million in the fourth quarter of 2011. The increase was driven by organic growth and the acquisitions of Poole & Associates and Sensage. Net income was $0.2 million in the fourth quarter of 2012 versus $0.3 million in the fourth quarter of 2011. Fourth quarter 2012 fully-diluted GAAP EPS was less than one cent per share. Amortization of acquisition-related intangibles and other one-time expenses reduced fourth quarter fully-diluted GAAP EPS by approximately $0.11.
Adjusted EBITDA, as defined by KEYW, is a non-GAAP measure that is calculated as GAAP net income plus other non-recurring expense, interest expense, income taxes, stock compensation, depreciation, and amortization. We have provided Adjusted EBITDA because we use the measurement internally to evaluate performance and we believe it is a commonly used measure of financial performance in comparable companies. It is provided to help investors evaluate companies on a consistent basis, as well as to enhance an understanding of our operating results. In addition, our board of directors and management use Adjusted EBITDA:
As a measure of operating performance;
To determine a significant portion of management's incentive compensation;
For planning purposes, including the preparation of our annual operating budget; and
To evaluate the effectiveness of our business strategies.
Adjusted EBITDA is not a recognized term under U.S. GAAP and does not purport to be an alternative to net income as a measure of operating performance or the cash flows from operating activities as a measure of liquidity. Please refer to the table below that reconciles GAAP net income to Adjusted EBITDA.
4. Checkpoint Software
SAN CARLOS, CA--(Marketwire - Jan 23, 2013) - Check Point® Software Technologies Ltd.
Full Year 2012:
Total Revenues: $1,342.7 million, representing an 8 percent increase year over year
Non-GAAP Operating Income: $798.9 million, representing 59 percent of revenues versus 58 percent year over year
Non-GAAP EPS: $3.19, representing an 11 percent increase year over year
Cash Flow From Operations: $815.8 million, representing a 14 percent increase year over year
Share Repurchase Program: $466.2 million, representing a 55 percent increase year over year
Fourth Quarter 2012:
Total Revenues: $368.6 million, representing a 3 percent increase year over year
Non-GAAP Operating Income: $222.9 million, representing 60 percent of revenues, same as last year
Non-GAAP EPS: $0.91, representing an 8 percent increase year over year
Cash Flow From Operations: $202.4 million, representing a 17 percent increase year over year
Check Point® Software Technologies Ltd. ( NASDAQ : CHKP ), the worldwide leader in securing the Internet, today announced financial results for the fourth quarter and full-year ending December 31, 2012.
"Throughout 2012, customers continued to adopt the Software Blades Architecture and further consolidated their security infrastructure with our new appliance portfolio. Revenues from software blades had a significant contribution to our growth with over a 50% increase this year. Overall financial results were good with non-GAAP EPS growth of 11 percent for the year. Cash flow from operations reached $816 million dollars representing 14 percent growth for the year. In the fourth quarter, cash flow from operations was $202 million dollars representing 17 percent growth," said Gil Shwed, founder, chairman and chief executive officer at Check Point Software Technologies.
Financial Highlights for the Fourth Quarter of 2012
Total Revenues: $368.6 million, an increase of 3 percent, compared to $356.8 million in the fourth quarter of 2011.
GAAP Operating Income: $210.5 million, an increase of 9 percent, compared to $192.6 million in the fourth quarter of 2011. GAAP operating margin was 57 percent, compared to 54 percent in the fourth quarter of 2011.
Non-GAAP Operating Income: $222.9 million, an increase of 4 percent, compared to $213.7 million in the fourth quarter of 2011. Non-GAAP operating margin was 60 percent, same as in the fourth quarter of 2011.
GAAP Net Income and Earnings per Diluted Share: GAAP net income was $174.0 million, an increase of 9 percent, compared to $159.8 million in the fourth quarter of 2011. GAAP earnings per diluted share were $0.85, an increase of 13 percent, compared to $0.75 in the fourth quarter of 2011.
Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $185.1 million, an increase of 4 percent, compared to $178.1 million in the fourth quarter of 2011. Non-GAAP earnings per diluted share were $0.91, an increase of 8 percent, compared to $0.84 in the fourth quarter of 2011.
Deferred Revenues: As of December 31, 2012, Check Point had deferred revenues of $589.7 million, an increase of 7 percent, compared to $552.2 million as of December 31, 2011.
Cash Flow: Cash flow from operations was $202.4 million, an increase of 17 percent, compared to $173.2 million in the fourth quarter of 2011.
Share Repurchase Program: During the fourth quarter of 2012, the company repurchased 3.6 million shares at a total cost of $160.1 million.
Cash Balances and Marketable Securities: $3,295.4 million as of December 31, 2012, an increase of $416.0 million, compared to $2,879.4 million as of December 31, 2011.
Financial Highlights for the Year Ended December 31, 2012
Total Revenues: $1,342.7 million, an increase of 8 percent, compared to $1,247.0 million in 2011.
GAAP Operating Income: $746.5 million, an increase of 16 percent, compared to $642.2 in 2011. GAAP operating margin was 56 percent, compared to 51 percent in 2011.
Non-GAAP Operating Income: $798.9 million, an increase of 10 percent, compared to $725.9 million in 2011. Non-GAAP operating margin was 59 percent, compared to 58 percent in 2011.
GAAP Net Income and Earnings per Diluted Share: GAAP net income was $620.0 million, an increase of 14 percent, compared to $544.0 million in 2011. GAAP earnings per diluted share were $2.96, an increase of 17 percent, compared to $2.54 in 2011.
Non-GAAP Net Income and Earnings per Diluted Share: Non-GAAP net income was $667.9 million, an increase of 9 percent, compared to $613.6 million in 2011. Non-GAAP earnings per diluted share were $3.19, an increase of 11 percent, compared to $2.87 in 2011.
Cash Flow: Cash flow from operations was $815.8 million, an increase of 14 percent, compared to $714.9 million in 2011.
Share Repurchase Program: The Company repurchased 9.5 million shares at a total cost of $466.2 million during 2012.
For information regarding the non-GAAP financial measures discussed in this release, please see "Use of Non-GAAP Financial Information" and "Reconciliation of GAAP to Non-GAAP Financial Information."
5. Websense Inc.
SAN DIEGO, Jan. 29, 2013 /PRNewswire/ -- Websense, Inc. today announced financial results for the fourth quarter and fiscal year 2012 consistent with preliminary results for billings, non-GAAP revenue, non-GAAP earnings per diluted share, and cash flow from operations released on January 13, 2013.
"Our record fourth quarter billings demonstrate the success of our strategic initiatives and the Websense® TRITON™ platform," said John McCormack, Websense CEO. "The strength in the quarter was driven by a 23 percent year-over-year increase in TRITON solution billings and double-digit year-over-year growth in new customer sales. These results confirm the traction we have established in the content security market as we evolve our web, email, mobile and data security solutions. Looking to the future, we are focused on continued growth, consistent execution, and extension of the TRITON platform ecosystem through strategic partnerships."
Fourth Quarter 2012 GAAP Financial Highlights
Revenues of $91.7 million, compared with $92.7 million in the fourth quarter of 2011.
Software and services revenues of $82.3 million, consistent with the fourth quarter of 2011.
Appliance revenues of $9.4 million, which consisted of approximately $8.2 million in current-period appliance sales and approximately $1.2 million of deferred appliance revenue primarily from pre-2011 appliance sales, compared with $10.4 million of appliance revenues in the fourth quarter of 2011, which consisted of approximately $8.3 million in current-period appliance sales and $2.1 million of deferred appliance revenue primarily from pre-2011 appliance sales.
Operating income of $5.6 million, compared with $13.4 million in the fourth quarter of 2011, as we incurred increased operating expenses primarily due to increased sales commissions and selling expenses resulting from our billings growth and our investments to expand our sales force, as well as litigation expenses associated with the company's successful defense of a patent lawsuit.
Provision for income taxes of $1.4 million, compared with $2.2 million in the fourth quarter of 2011.
Net income of $3.8 million, or 10 cents per diluted share, compared with net income of $10.4 million, or 27 cents per diluted share, in the fourth quarter of 2011.
Weighted average diluted shares outstanding of 36.8 million, compared with 38.9 million in the fourth quarter of 2011.
Cash flow from operations of $11.1 million, compared with $5.6 million in the third quarter of 2012 and $21.9 million in the fourth quarter 2011.
Quarter-end accounts receivable of $89.1 million, compared with $54.4 million at the end of the third quarter of 2012 and $80.1 million at the end of the fourth quarter of 2011.
Days billings outstanding of 66 days, compared with 60 days at the end of the third quarter of 2012 and 62 days at the end of the fourth quarter of 2011.
Deferred revenue of $401.1 million, an increase of $8.1 million compared with deferred revenue of $393.0 million at the end of the fourth quarter of 2011. Deferred revenue at the end of the fourth quarter of 2012 included $5.0 million from extended warranties and pre-2011 appliance sales, a decrease of $4.7 million from the year ago period. Deferred revenue from pre-2011 appliance sales will continue to decrease quarterly as it is depleted by ratable recognition over the original subscription periods.
Fourth Quarter 2012 Non-GAAP1 Financial Highlights
Billings of $122.0 million, an increase of five percent compared with the fourth quarter of 2011. Changes in currency exchange rates, compared with exchange rates prevailing in the fourth quarter of 2011, did not materially impact fourth quarter 2012 billings performance.
TRITON solution billings of $83.7 million, an increase of 23 percent compared with the fourth quarter of 2011.
Non-GAAP operating income of $13.0 million, compared with non-GAAP operating income of $21.7 million in the fourth quarter of 2011. Non-GAAP operating margin in the fourth quarter of 2012, calculated as a percentage of revenues, was 14.2 percent, compared with 23.4 percent in the fourth quarter of 2011. We incurred increased operating expenses primarily due to increased sales commissions and selling expenses resulting from our billings growth and investments to expand our sales force, as well as litigation expenses associated with the company's successful defense of a patent lawsuit.
Billings-based operating margin of 36.0 percent, compared with billings-based operating margin of 39.6 percent in the fourth quarter of 2011. Billings-based operating margin is calculated like revenue-based non-GAAP operating margin, but is computed using billings as the top-line measure and excludes deferred appliance costs to match current period sales activities with current period costs.
A non-GAAP tax provision of $2.4 million, based on an effective tax rate of 19 percent, compared with a non-GAAP tax provision of $3.9 million based on an effective tax rate of 18.5 percent, in the fourth quarter of 2011.
Non-GAAP net income of $10.3 million, or 28 cents per diluted share, compared with $17.1 million, or 44 cents per diluted share, in the fourth quarter of 2011.
Fiscal Year 2012 GAAP Financial Highlights
Revenues of $361.5 million, compared with $364.2 million in 2011.
Software and services revenues of $328.3 million, compared with $325.4 million in 2011.
Appliance revenues of $33.2 million, which consisted of approximately $27.3 million in current-period appliance sales and approximately $5.9 million of deferred appliance revenue primarily from pre-2011 appliance sales, compared with $38.8 million of appliance revenues in 2011, which consisted of approximately $27.4 million in current-period appliance sales and $11.4 million of deferred appliance revenue primarily from pre-2011 appliance sales.
Operating income of $41.5 million, compared with $44.4 million in 2011.
Provision for income taxes of $20.7 million, representing an effective tax rate of 53 percent, compared with a tax provision of $13.0 million and an effective tax rate of 29.6 percent in 2011. The 2012 effective tax rate was impacted by a one-time tax provision recorded in the first quarter of 2012 relating to the company's settlement with the U.S. Internal Revenue Service of certain audit adjustments for tax years 2005 through 2007.
Net income of $18.3 million, or 49 cents per diluted share, compared with $31.0 million, or 76 cents per diluted share, in 2011.
Weighted average diluted shares outstanding of 37.5 million, compared with 40.7 million in 2011.
Cash flow from operations of $48.9 million, compared with $79.2 million in 2011. Cash flow from operations includes one-time tax payments of $14.7 million in the third quarter of 2012 relating to the company's settlement with the U.S. Internal Revenue Service described above.
Fiscal Year 2012 Non-GAAP1 Financial Highlights
Billings of $369.5 million, an increase of 2 percent compared with $362.9 million in 2011. Changes in currency exchange rates, compared with exchange rates prevailing in 2011, negatively impacted 2012 billings by approximately $4.7 million.
TRITON solution billings of $232.9 million, an increase of 21 percent compared with the 2011.
Non-GAAP operating income of $69.9 million, compared with non-GAAP operating income of $78.6 million in 2011. Non-GAAP operating margin in 2012, calculated as a percentage of revenues, was 19.3 percent, compared with 21.6 percent in 2011.
Billings-based operating margin of 21.8 percent, compared with billings-based operating margin of 22.7 percent in 2011.
A non-GAAP tax provision of $12.8 million, based on a long-term effective tax rate of 19 percent, compared with a non-GAAP tax provision of $14.5 million, based on an effective tax rate of 18.5 percent, in 2011.
Non-GAAP net income of $54.8 million, or $1.46 per diluted share, compared with $63.9 million, or $1.57 per diluted share, in 2011.
6. SolarWinds
AUSTIN, TX--(Marketwire - Feb 4, 2013) - SolarWinds®, a leading provider of powerful and affordable IT management software, today reported results for its fourth quarter and full year ended December 31, 2012.
Record total revenue for the fourth quarter of $73.5 million, representing 32% year-over-year growth.
Record total revenue for the full year of 2012 of $269.0 million, representing 36% year-over-year growth.
Fourth quarter GAAP operating income of $31.6 million and non-GAAP operating income of $39.4 million, or a non-GAAP operating margin for the fourth quarter of 54%.
Fourth quarter GAAP diluted earnings per share of $0.29 and non-GAAP diluted earnings per share of $0.36.
Record fourth quarter free cash flow of $48.0 million, representing 32% year-over-year growth.
Financial Results
SolarWinds reported record total revenue for the fourth quarter of 2012 of $73.5 million, a 32% increase over total revenue for the fourth quarter of 2011. License revenue was $33.1 million for the fourth quarter of 2012, representing a 31% increase over license revenue for the fourth quarter of 2011. Maintenance revenue was a record $40.5 million for the fourth quarter of 2012, representing a 33% increase over maintenance revenue for the fourth quarter of 2011.
On a GAAP basis, diluted earnings per share were $0.29 for the fourth quarter of 2012 compared to $0.22 for the fourth quarter of 2011. Non-GAAP diluted earnings per share were $0.36 for the fourth quarter of 2012 compared to $0.29 for the fourth quarter of 2011.
Net cash provided by operating activities was $47.2 million for the fourth quarter of 2012 compared to $36.3 million for the fourth quarter of 2011, representing a year-over-year increase of 30%. Free cash flow was $48.0 million for the fourth quarter of 2012 compared to $36.4 million for the fourth quarter of 2011, representing a year-over-year increase of 32%. Cash, cash equivalents, and investments at the end of the fourth quarter of 2012 were $241.8 million, an increase of $33.3 million from the end of the third quarter of 2012.
The financial results included in this press release are preliminary and pending final review by the company and its external auditors. Financial results will not be final until SolarWinds files its annual report on Form 10-K for the period. Information about SolarWinds' use of these non-GAAP financial measures is provided below under "Non-GAAP Financial Measures."
7. VeriSign Inc.
RESTON, VA--(Marketwire - Jan 24, 2013) - VeriSign, Inc., the trusted provider of Internet infrastructure services for the networked world, announced financial results for the fourth quarter of 2012 and year ended Dec. 31, 2012.
Fourth Quarter GAAP Financial Results
VeriSign, Inc. and subsidiaries ("Verisign") reported revenue of $230 million for the fourth quarter of 2012, up 13 percent from the same quarter in 2011. Verisign reported net income of $106 million and diluted earnings per share (EPS) of $0.65 for the fourth quarter of 2012, compared to net income of $54 million and diluted EPS of $0.34 for the same quarter in 2011. The operating margin was 58.8 percent for the fourth quarter of 2012 compared to 45.6 percent for the same quarter in 2011. Results for the fourth quarter of 2012 included non-recurring pre-tax benefits of $13.6 million, split $5.8 million and $7.8 million between continuing operations and discontinued operations, respectively, primarily related to reimbursements of previously incurred litigation and defense costs, received upon settlement with the selling shareholders of a previously acquired business. Additionally, results for the fourth quarter of 2012 include pre-tax benefits of $5.5 million related to a change in the estimated bonus payout. Together these items increased the operating margin by 4.9 percent and diluted EPS by $0.07. Results for the fourth quarter of 2011 included a pre-tax, $4 million non-operating accrued expense, which was non-recurring in nature and which reduced diluted EPS by $0.02.
Fourth Quarter Non-GAAP Financial Results
Verisign reported, on a non-GAAP basis, net income of $96 million and diluted EPS of $0.59 for the fourth quarter of 2012, compared to net income of $64 million and diluted EPS of $0.40 for the same quarter in 2011. The non-GAAP operating margin was 62.0 percent for the fourth quarter of 2012 compared to 50.9 percent for the same quarter in 2011. Non-GAAP results for the fourth quarter of 2012 included non-recurring pre-tax benefits of $5.8 million recorded in continuing operations, primarily related to reimbursements of previously incurred litigation and defense costs, received upon settlement with the selling shareholders of a previously acquired business. Additionally, the non-GAAP results for the fourth quarter of 2012 include pre-tax benefits of $5.5 million related to a change in the estimated bonus payout. Together these items increased the operating margin by 4.9 percent and diluted EPS by $0.05. Results for the fourth quarter of 2011 included a pre-tax, $4 million non-operating accrued expense, which was non-recurring in nature and which reduced diluted EPS by $0.02. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.
"In 2012, Verisign marked 15 years of uninterrupted availability for .com and .net and we renewed the .com Registry Agreement for an additional six years. Our performance continues to demonstrate discipline and operational focus. In 2013, we will continue to seek quality growth, while protecting and managing our business," said Jim Bidzos, chairman and chief executive officer of Verisign.
2012 GAAP Financial Results
For the year ended Dec. 31, 2012, Verisign reported revenue of $874 million, up 13 percent from $772 million in 2011. Verisign reported net income of $320 million and diluted EPS of $1.95 in 2012, compared to net income of $143 million and diluted EPS of $0.86 in 2011. The operating margin for 2012 was 52.4 percent compared to 42.7 percent in 2011.
2012 Non-GAAP Financial Results
Verisign reported, on a non-GAAP basis, net income of $322 million and diluted EPS of $1.97 for 2012, compared to net income of $249 million and diluted EPS of $1.49 in 2011. The non-GAAP operating margin for 2012 was 56.2 percent compared to 49.7 percent in 2011. A table reconciling the GAAP to the non-GAAP results (which excludes items described below) is appended to this release.
Financial Highlights
Verisign ended the fourth quarter of 2012 with Cash, Cash Equivalents, Marketable Securities and Restricted Cash of $1.56 billion, an increase of $211 million from year-end 2011.
Cash flow from operations was $171 million for the fourth quarter of 2012 and $538 million for the full year 2012, compared with $124 million for the same quarter in 2011 and $336 million for the full year 2011.
Deferred revenues ended the fourth quarter of 2012 totaling $813 million, an increase of $84 million from year-end 2011.
Capital expenditures were $13 million in the fourth quarter and $53 million for the full year.
During the fourth quarter, Verisign repurchased approximately 2.3 million shares of its common stock for a cost of $94 million. During the full year 2012, Verisign repurchased approximately 7.7 million shares of its common stock for a cost of $315 million. On Dec. 5, 2012, the Board of Directors authorized the repurchase of up to approximately $458.8 million of our common stock, in addition to the approximately $541.2 million of our common stock remaining available for repurchase under the previous 2010 Share Buyback Program, for a total repurchase of up to $1.0 billion of Verisign common stock. At Dec. 31, 2012, approximately $976 million remained available and authorized for share repurchases.
For purposes of calculating diluted EPS, the fourth quarter diluted share count included 6.4 million shares related to the convertible debentures. These represent dilutive shares and not shares that have been issued. There was no dilution from the convertible debentures in the same quarter of 2011.
Due to the stock price not exceeding the convertible debentures trigger during the fourth quarter of 2012, the debentures are no longer convertible starting Jan. 1, 2013. Consequently, the debt component of the convertible debentures, the related embedded derivative, and deferred tax liability were reclassified from current liabilities to long-term liabilities, while the associated unamortized debt issuance costs were reclassified from current assets to long-term assets, as of Dec. 31, 2012.
8. Fortinet
SUNNYVALE, CA--(Marketwire - Jan 30, 2013) - Fortinet®
Fourth Quarter 2012 Highlights
Revenues of $151.2 million, up 25% year over year2
Billings of $174.3 million, up 24% year over year1,2
GAAP diluted net income per share of $0.13
Non-GAAP diluted net income per share of $0.171
Cash flow from operations of $50.3 million
Free cash flow of $48.5 million1,2
Cash, cash equivalents and investments of $739.6 million4, with no debt
Full Year 2012 Highlights
Revenues of $533.6 million, up 23% year over year3
Billings of $602.0 million, up 27% year over year1,3
GAAP diluted net income per share of $0.40
Non-GAAP diluted net income per share of $0.531
Cash flow from operations of $183.9 million
Free cash flow of $161.8 million1,3,4
Fortinet® ( NASDAQ : FTNT ) -- a leader in high-performance network security -- today announced financial results for the fourth quarter and full year ended December 31, 2012.
Financial Highlights for the Fourth Quarter of 2012
Revenue2: Total revenue was $151.2 million for the fourth quarter of 2012, an increase of 25% compared to $120.9 million in the same quarter of 2011. Within total revenue, product revenue was $71.0 million, an increase of 24% compared to the same quarter of 2011. Services revenue was $76.7 million, an increase of 26% compared to the same quarter of 2011.
Billings1,2: Total billings were $174.3 million for the fourth quarter of 2012, an increase of 24% compared to $140.6 million in the same quarter of 2011.
Deferred Revenue: Deferred revenue was $363.2 million as of December 31, 2012, up $23.1 million from $340.1 million as of September 30, 2012.
Cash and Cash Flow1,2: As of December 31, 2012, cash, cash equivalents and investments were $739.6 million, compared to $690.3 million as of September 30, 2012. In the fourth quarter of 2012, cash flow from operations was $50.3 million and free cash flow was $48.5 million.
GAAP Operating Income2,5: GAAP operating income was $35.0 million for the fourth quarter of 2012, representing a GAAP operating margin of 23%. GAAP operating income was $26.5 million for the same quarter of 2011, representing a GAAP operating margin of 22%.
GAAP Net Income and Diluted Net Income Per Share2,5: GAAP net income was $21.5 million for the fourth quarter of 2012, based on a 41% tax rate for the quarter. This compares to GAAP net income of $16.5 million for the same quarter of 2011, based on a 40% tax rate for the quarter. GAAP diluted net income per share was $0.13 for the fourth quarter of 2012, based on 167.0 million weighted-average diluted shares outstanding, compared to $0.10 for the same quarter of 2011, based on 164.5 million weighted-average diluted shares outstanding.
Non-GAAP Operating Income1,2: Non-GAAP operating income was $41.3 million for the fourth quarter of 2012, representing a non-GAAP operating margin of 27%. Non-GAAP operating income was $32.4 million for the same quarter of 2011, representing a non-GAAP operating margin of 27%.
Non-GAAP Net Income and Diluted Net Income Per Share1,2: Non-GAAP net income was $28.1 million for the fourth quarter of 2012, based on a 34% effective tax rate for the quarter. Non-GAAP net income for the same quarter of 2011 was $22.3 million, based on a 33% effective tax rate. Non-GAAP diluted net income per share was $0.17 for the fourth quarter of 2012 based on 167.0 million weighted-average diluted shares outstanding, compared to $0.14 for the same quarter of 2011, based on 164.5 million weighted-average diluted shares outstanding.
Financial Highlights for the Full Year 2012
Revenue3: Total revenue was $533.6 million for fiscal 2012, an increase of 23% compared to $433.6 million for fiscal 2011. Within total revenue, product revenue was $248.9 million for fiscal 2012, an increase of 26% compared to $197.4 million for fiscal 2011. Services revenue was $274.0 million for fiscal 2012, an increase of 24% compared to $220.3 million for fiscal 2011.
Billings1,3: Total billings were $602.0 million for fiscal 2012, an increase of 27% compared to $475.8 million in fiscal 2011.
Deferred Revenue: Deferred revenue was $363.2 million as of December 31, 2012, an increase of 23% compared to deferred revenue of $294.8 million as of December 31, 2011.
Cash and Cash Flow1,3,4: As of December 31, 2012, cash, cash equivalents and investments were $739.6 million, compared to $538.7 million as of December 31, 2011. In fiscal 2012, cash flow from operations was $183.9 million and free cash flow was $161.8 million.
GAAP Operating Income3,5: GAAP operating income was $100.5 million for fiscal 2012, representing a GAAP operating margin of 19%. GAAP operating income was $88.9 million for fiscal 2011, representing a GAAP operating margin of 21%.
GAAP Net Income and Diluted Net Income Per Share3,5: GAAP net income was $66.8 million for fiscal 2012, based on a 36% tax rate for the year. This compares to GAAP net income of $62.5 million for fiscal 2011, based on a 32% tax rate for the year. GAAP diluted net income per share was $0.40 for fiscal 2012, based on 166.3 million weighted-average diluted shares outstanding, compared to $0.38 for fiscal 2011, based on 163.8 million weighted-average diluted shares outstanding.
Non-GAAP Operating Income1,3: Non-GAAP operating income was $129.3 million for fiscal 2012, representing a non-GAAP operating margin of 24%. Non-GAAP operating income was $106.0 million for fiscal 2011, representing a non-GAAP operating margin of 24%.
Non-GAAP Net Income and Diluted Net Income Per Share1,3: Non-GAAP net income was $88.3 million for fiscal 2012, based on a 34% effective tax rate for the year. Non-GAAP net income for fiscal 2011 was $73.1 million, based on a 33% effective tax rate. Non-GAAP diluted net income per share was $0.53 for fiscal 2012 based on 166.3 million weighted-average diluted shares outstanding, compared to $0.45 for fiscal 2011, based on 163.8 million weighted-average diluted shares outstanding.
1 A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
2 Includes the impact of a $1.9 million sale of previously-acquired patents during the fourth quarter of 2012.
3 Includes the impact of a $3.7 million sale of previously-acquired patents during fiscal 2012. In addition, fiscal 2011 includes the impact of a $2.6 million sale of previously-acquired patents.
4 Includes the impact of $14.5 million paid for the purchase of land and buildings near our Silicon Valley headquarters during the third quarter of 2012.
5 Includes the impact of a $1.5 million non-recurring cumulative out-of-period adjustment recorded during the fourth quarter of 2012 to reflect a true-up related to forfeitures of stock awards granted to employees. The adjustment resulted in lower stock-based compensation expense and higher operating income and net income during the fourth quarter of 2012. We believe the impact of the adjustment is not material to the current or prior fiscal periods.
Management Commentary:
Ken Xie, founder, president and chief executive officer of Fortinet, stated: "We had a great fourth quarter, which resulted in a strong finish to the year as we demonstrated our ability to successfully execute our global go to market strategy and increase market share. We continued to attract and retain a number of large profile enterprise and service provider customers, and we introduced several new and competitive products that differentiate us from our competitors. With a healthy pipeline of business and a plan to continue investments in sales, marketing and product development, we are well-positioned to continue to gain market share and grow our business."
Nancy Bush, interim chief financial officer of Fortinet, stated: "We reported strong fourth quarter results, which exceeded our expectations across all of our key operating metrics. We had particularly strong growth in revenue, profitability, and cash flow generation, and ended the quarter with a cash, cash equivalents and investments balance of approximately $740 million with no debt. We are confident, yet cautious, as we enter 2013 and remain focused on further gaining market share worldwide by delivering innovative new products, and expanding our sales, marketing and R&D infrastructure."
9. Cavium Inc.
SAN JOSE, Calif., Jan. 31, 2013 /PRNewswire/ -- Cavium, Inc., a leading provider of highly integrated semiconductor products that enable intelligent processing for networking, communications, and the digital home, today announced financial results for the fourth quarter of 2012 ended December 31, 2012.
Revenue in the fourth quarter of 2012 was $66.4 million, an 8.7% sequential increase from the $61.1 million reported in the third quarter of 2012.
Generally Accepted Accounting Principles (GAAP) Results
Net loss for the fourth quarter of 2012, on GAAP basis was $78.8 million, or $(1.56) per diluted share compared to $8.1 million, or $(0.16) per diluted share in the third quarter of 2012. Net loss for the fourth quarter of 2012 included a non-cash charge of $43.5 million to provide for a valuation allowance for US net deferred tax assets, and a $33.3 million non-cash charge related to goodwill and other intangible asset impairment. Gross margins were 62.3% in the fourth quarter of 2012 compared to 59.4% in the third quarter of 2012. Total cash and cash equivalents were $76.8 million at December 31, 2012.
Cavium established a full valuation allowance against its US net deferred tax assets, which resulted in a one-time, non-cash charge of $43.5 million in the fourth quarter of 2012. Had Cavium not established the valuation allowance, it would have recognized a tax benefit of $2.1 million. This tax benefit along with the $43.5 million valuation allowance, produced a net tax expense of $41.4 million in the fourth quarter of 2012. The decision to establish the valuation allowance was based on an assessment made at year-end that considered factors such as 2012 actual results as well as projected US income, and does not preclude Cavium from using its loss carry-forwards or other deferred tax assets in the future.
Cavium recently restructured its Software and Services group. As a result of performing an annual goodwill impairment test in the fourth quarter of 2012, and the impact of the Software and Services group restructuring, Cavium determined that Software and Services goodwill and certain intangible assets were impaired and recorded a $33.3 million, non-cash, goodwill and intangible asset charge in the fourth quarter of 2012.
Non-GAAP Results
Cavium believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Cavium's financial condition and results of operations. These measures should only be used to evaluate Cavium's results of operations in conjunction with the corresponding GAAP measures. Non-GAAP financial measures in the fourth quarter of 2012 exclude expenses totaling $89.5 million related to: valuation allowance on deferred tax assets of $43.5 million; goodwill and intangible impairment of $33.3 million; $8.6 million related to stock-based compensation and related payroll taxes; and $4.1 million related to amortization of acquired intangible assets, acquisition and other expenses as detailed in the reconciliation between GAAP and non-GAAP financial results provided in the financial statements portion of this release.
Non-GAAP net income for the fourth quarter of 2012 was $10.6 million or $0.20 per diluted share, compared with non-GAAP net income of $7.8 million or $0.15 per diluted share in the third quarter of 2012. Gross margins, on a non-GAAP basis, were 64.5% and operating margins (non-GAAP income from operations as a percentage of revenue), on a non-GAAP basis, were 13.8% in the fourth quarter of 2012.
10. CommVault
OCEANPORT, N.J., Jan. 30, 2013 /PRNewswire/ --
CommVault announced today its financial results for the third quarter ended December 31, 2012.
N. Robert Hammer, CommVault's chairman, president and CEO stated, "We achieved excellent third quarter financial performance which was highlighted by record results in quarterly revenues of $128.1 million, non-GAAP operating income of $29.8 million and non-GAAP EPS of $0.39. Our year-over-year software revenue growth of 28% was driven by an all-time high volume of enterprise deals (transactions greater than $100,000) and outstanding execution from all of our major geographic operations. During the third quarter, we continued to make significant investments to position the company for long term growth while still delivering record non-GAAP operating profits. We are in an excellent position to continue to accelerate our pace of innovation in our addressable markets to provide unique value to our customers, while continuing to deliver above market financial results on a consistent basis."
Total revenues for the third quarter of fiscal 2013 were $128.1 million, an increase of 24% over the third quarter of fiscal 2012 and an increase of 8% over the prior quarter. Software revenue in the third quarter of fiscal 2013 was $65.9 million, an increase of 28% year-over-year and an increase of 11% sequentially. Services revenue in the third quarter of fiscal 2013 was $62.2 million, an increase of 19% year-over-year and 6% sequentially.
Income from operations (EBIT) was $20.2 million for the third quarter, a 64% increase from $12.3 million in the same period of the prior year. On a sequential basis, income from operations (EBIT) decreased 10% in the third quarter of fiscal 2013. Non-GAAP income from operations (EBIT) increased 52% to $29.8 million in the third quarter of fiscal 2013 compared to $19.6 million in the third quarter of the prior year. On a sequential basis, Non-GAAP income from operations (EBIT) increased 3% in the third quarter of fiscal 2013.
For the third quarter of fiscal 2013, CommVault reported net income of $12.2 million, an increase of $5.0 million compared to the same period of the prior year. Non-GAAP net income for the quarter increased 50% to $19.0 million, or $0.39 per diluted share, from $12.7 million, or $0.27 per diluted share, in the same period of the prior year.
Operating cash flow totaled $27.5 million for the third quarter of fiscal 2013 compared to $27.7 million in the third quarter of fiscal 2012. Total cash and short-term investments were $397.2 million as of December 31, 2012 compared to $300.2 million as of March 31, 2012. There were no share repurchases during the third quarter of fiscal 2013, which still leaves $102.8 million remaining in the existing repurchase plan available through March 31, 2014.
A reconciliation of GAAP to non-GAAP results has been provided in Financial Statement Table IV included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."
Recent Business Highlights:
On January 16, 2013, CommVault announced that its Simpana® 9 data and information management software has received the Certificate of Networthiness (CoN) from the U.S. Army Network Enterprise Technology Command.
On November 15, 2012, CommVault announced its CommVault® Simpana® 9 software will ship with the new Dell PowerVault DL2300 appliance to deliver new levels of integrated, scalable and simplified data protection to safeguard information for medium-to-large, distributed organizations.
On October 29, 2012, CommVault introduced Simpana® IntelliSnap™ Recovery Manager, the industry's first standalone software product for automating snapshot management and application-aware recovery across multiple storage arrays and physical or virtual servers.
Use of Non-GAAP Financial Measures
CommVault has provided in this press release the following non-GAAP financial measures: non-GAAP income from operations, non-GAAP income from operations margin, non-GAAP net income and non-GAAP diluted earnings per share. This selected financial information has not been prepared in accordance with GAAP. CommVault uses these non-GAAP financial measures internally to understand, manage and evaluate its business and make operating decisions. In addition, CommVault believes these non-GAAP operating measures are useful to investors, when used as a supplement to GAAP financial measures, in evaluating CommVault's ongoing operational performance. CommVault believes that the use of these non-GAAP financial measures provide an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in CommVault's industry, many of which present similar non-GAAP financial measures to the investment community.
These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which are provided in Table IV included in this press release.
Non-GAAP income from operations and non-GAAP income from operations margin. These non-GAAP financial measures exclude noncash stock-based compensation charges and additional FICA and related payroll tax expense incurred by CommVault when employees exercise in the money stock options or vest in restricted stock awards. CommVault believes that these non-GAAP financial measures are useful metrics for management and investors because they compare CommVault's core operating results over multiple periods. When evaluating the performance of CommVault's operating results and developing short and long term plans, CommVault does not consider such expenses. Although noncash stock-based compensation and the additional FICA and related payroll tax expenses are necessary to attract and retain employees, CommVault places its primary emphasis on stockholder dilution as compared to the accounting charges related to such equity compensation plans. In addition, because of the varying available valuation methodologies, subjective assumptions such as volatility outside CommVault's control and the variety of awards that companies can issue, CommVault believes that providing non-GAAP financial measures that exclude noncash stock-based compensation expense and the additional FICA and related payroll tax expenses incurred on stock option exercises and vesting of restricted stock awards allow investors to make meaningful comparisons between CommVault's operating results and those of other companies.
There are a number of limitations related to the use of non-GAAP income from operations and non-GAAP income from operations margin. The most significant limitation is that these non-GAAP financial measures exclude certain operating costs, primarily related to noncash stock-based compensation, which is of a recurring nature. Noncash stock-based compensation has been, and will continue to be for the foreseeable future, a significant recurring expense in CommVault's operating results. In addition, noncash stock-based compensation is an important part of CommVault's employees' compensation and can have a significant impact on their performance. Lastly, the components CommVault excludes in its non-GAAP financial measures may differ from the components that its peer companies exclude when they report their non-GAAP financial measures.
CommVault's management generally compensates for limitations described above related to the use of non-GAAP financial measures by providing investors with a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. Further, CommVault management uses non-GAAP financial measures only in addition to, and in conjunction with, results presented in accordance with GAAP.
Non-GAAP net income and non-GAAP diluted EPS. Non-GAAP net income excludes noncash stock-based compensation and the additional FICA and related payroll tax expenses incurred by CommVault when employees exercise in the money stock options or vest in restricted stock awards, which are discussed above, as well as applies a non-GAAP effective tax rate of 37% in fiscal 2013 and 36% in fiscal 2012.
CommVault anticipates that in any given quarter its non-GAAP tax rate may be either higher or lower than the GAAP tax rate as evidenced by historical fluctuations. The GAAP tax rate for the nine months ended December 31, 2012 was 39% and the GAAP tax rate for the nine months ended December 31, 2011 was 38%. On an annual basis, the GAAP tax rate over the past six fiscal years was 36% for fiscal 2012, 42% for fiscal 2011, 43% for fiscal 2010, 44% for fiscal 2009, 23% for fiscal 2008 and (241%) for fiscal 2007. In addition, CommVault's cash tax rate has been significantly lower than its GAAP tax rate for the past three fiscal years. The cash tax rate over the past three fiscal years is estimated to be approximately 14% for fiscal 2012, approximately 11% for fiscal 2011, and approximately 10% for fiscal 2010. Also, the cash tax rate for fiscal 2013 is estimated to be in the range of 14% - 18%. CommVault expects that its cash tax rate will remain lower than its GAAP tax rate for the remainder of fiscal 2013 and into fiscal 2014. CommVault defines its cash tax rate as the total amount of cash income taxes payable for the fiscal year divided by consolidated GAAP pre-tax income.
CommVault believes that the use of a non-GAAP tax rate is a useful measure as it allows management and investors to compare its operating results on a more consistent basis over the multiple periods presented in its earnings release without the impact of significant variations in the tax rate as more fully described above. It is also more reflective of the increase in the cash tax rate as it approaches the GAAP tax rate over the next one to two fiscal years. Non-GAAP EPS is derived from non-GAAP net income divided by the weighted average shares outstanding on a fully diluted basis.
CommVault considers non-GAAP net income and non-GAAP diluted EPS useful metrics for CommVault management and its investors for the same basic reasons that CommVault uses non-GAAP income from operations and non-GAAP income from operations margin. In addition, the same limitations as well as management actions to compensate for such limitations described above also apply to CommVault's use of non-GAAP net income and non-GAAP EPS.