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As Of Filer Filing For·On·As Docs:Size 4/20/16 PTC Inc. 8-K:2,7,9 4/20/16 4:1.0M |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 18K 2: EX-99.1 Miscellaneous Exhibit HTML 208K 3: EX-99.2 Miscellaneous Exhibit HTML 147K 4: EX-99.3 Miscellaneous Exhibit HTML 55K
Operating and Non-GAAP Guidance
|
Operating and Non-GAAP Results
|
GAAP Results
|
||||||
In millions
|
Q2'16
Low |
Q2'16
High |
Actual
|
At Guidance Mix (1)
|
Actual
|
|||
Subscription ACV
|
$10
|
$10
|
$23
|
$11
|
N/A
|
|||
License and Subscription Bookings
|
$71
|
$81
|
$86
|
$86
|
N/A
|
|||
Subscription % of Bookings
|
26%
|
26%
|
54%
|
26%
|
N/A
|
|||
Subscription Revenue
|
$24
|
$24
|
$24
|
$24
|
$24
|
|||
Support Revenue
|
$162
|
$162
|
$161
|
$161
|
$161
|
|||
Perpetual License Revenue
|
$55
|
$60
|
$40
|
$64
|
$40
|
|||
Software Revenue
|
$241
|
$246
|
$225
|
$249
|
$224
|
|||
Professional Services Revenue
|
$49
|
$49
|
$49
|
$49
|
$49
|
|||
Total Revenue
|
$290
|
$295
|
$274
|
$298
|
$273
|
|||
Operating Expense
|
$164
|
$166
|
$164
|
$164
|
$191
|
|||
Operating Margin
|
19%
|
19%
|
14%
|
21%
|
1%
|
|||
Tax Rate
|
16%
|
16%
|
21%
|
21%
|
(45%)
|
|||
EPS
|
$0.33
|
$0.38
|
$0.23
|
$0.39
|
($0.05)
|
(1)
|
Adjusted to guidance mix of 26% vs. actual Q2'16 mix of 54% and includes other adjustments as described in "Important Disclosures" set forth below.
|
In millions
|
Q2'16
|
YoY
|
YoY
CC |
Management Comments
|
Subscription ACV
|
$23.5
|
324%
|
330%
|
·Subscription ACV was well above guidance of $10M, primarily due to a higher than expected mix of subscriptions in our Solutions business, and due to bookings above the high end of our guidance.
|
License and Subscription Bookings
|
$86.1
|
6%
|
8%
|
·Bookings were above the high end of guidance and grew 8% YoY in CC.
·Solutions Group bookings grew in the low single-digits YoY in CC, with particular strength in ePLM. Large deal quarterly variability impacted results in SLM, where we have a strong pipeline for the remainder of the year.
·We continued to gain traction in TPG, where we grew bookings, added 66 new logos during the quarter and saw a number of six-figure expansion deals.
|
Subscription % of Bookings
|
54%
|
297%
|
293%
|
·Q2'16 Subscription mix of 54% far outpaced our guidance of 26% and Q2'15 mix of 14%, driven by stronger than expected adoption across all segments of our Solutions business.
·In addition, we are seeing a high subscription mix in the Americas, Europe and Japan, and while the Pac Rim and the channel are trailing in terms of total mix, we are seeing significant growth across all regions and sales channels.
|
In millions
|
Q2'16
|
YoY
|
YoY CC
|
Management Comments
|
Total Revenue
(GAAP) (Non-GAAP)
|
$272.6
$273.7
|
(13%)
(13%)
|
(10%)
(10%)
|
·Total non-GAAP revenue was below our Q2'16 guidance range due to the over-performance of subscription mix in the quarter, which our model indicates reduced Software revenue by approximately $24 million compared to guidance.
·The 10% YoY CC decline in total non-GAAP revenue was driven by 1) software revenue decreasing 9% YoY CC, due primarily to the higher subscription mix, and 2) professional services revenue decreasing 15% YoY CC driven by our strategy to grow our service partner ecosystem.
|
Software Revenue
(GAAP) (Non-GAAP)
|
$224.0
$224.7
|
(12%)
(12%)
|
(9%)
(9%)
|
·Non-GAAP Software revenue was below our Q2'16 guidance range due to strong subscription adoption, which our model indicates reduced perpetual license revenue by approximately $24 million compared to guidance.
·On a CC basis, non-GAAP perpetual license revenue declined 42% YoY, non-GAAP subscription revenue increased 53% YoY and non-GAAP support revenue declined 2% YoY. The support decline is due to a higher mix of subscription bookings and fewer support win-backs in the channel, as we prepared for a Q3 launch of a new support win-back conversion program.
·Based on our model, license mix-adjusted basis, non-GAAP software revenue increased 2% YoY CC.
|
EPS
(GAAP) (Non-GAAP)
|
($0.05)
$0.23
|
(197%)
(57%)
|
(168%)
(55%)
|
·Non-GAAP EPS was below our Q2'16 guidance range driven by the higher than expected mix of subscription in the quarter. Based on our model, it otherwise would have been above the high-end of our guidance.
·GAAP EPS was negatively impacted by a $5M restructuring charge.
|
In millions
|
Q2'16
|
YoY
|
YoY
CC |
Management Comments
|
Solutions Group Software
|
$206.7
|
(16%)
|
(13%)
|
·The decline in Solutions Group Software was driven primarily by the higher than expected subscription mix in the quarter. We saw strong YoY subscription mix growth in each segment of the Solutions Group.
·On a constant currency, license mix-adjusted basis, Solutions software revenue was approximately flat YoY.
|
Technology Platform Group Software
(GAAP)
(Non-GAAP)
|
$17.3
$18.0
|
98%
88%
|
99%
89%
|
·The Technology Platform Group delivered significant software revenue growth YoY, partly driven by the Kepware acquisition.
·On an organic basis, TPG non-GAAP software revenue grew approximately 15% YoY CC.
·66 new IoT logos were added in the quarter, a 6% increase YoY, bringing the cumulative total of new IoT logos this year to 131, a 26% increase over the first-half of last year.
|
In millions
|
Q2'16
|
YoY
|
YoY
CC |
Management Comments
|
Americas Software
(GAAP)
(Non-GAAP)
|
$98.6
$99.2
|
(6%)
(6%)
|
(6%)
(6%)
|
·YoY CC bookings growth of 11% was offset by a YoY increase in subscription mix of greater than 100%.
·On a license mix-adjusted basis, software revenue grew 3% YoY CC.
·Non-GAAP subscription revenue grew nearly 40% YoY CC.
|
Europe Software
(GAAP)
(Non-GAAP)
|
$80.4
$80.5
|
(9%)
(9%)
|
(3%)
(3%)
|
·YoY CC bookings growth of 26% was offset by a YoY increase in subscription mix of over 300%.
·On a constant currency, license mix-adjusted basis, software revenue grew 6% YoY.
·Non-GAAP subscription revenue grew over 70% YoY CC.
|
Japan Software
|
$21.6
|
(35%)
|
(34%)
|
·Q2'15 is a difficult compare for Japan as we had a very strong quarter with a number of large deals, including one mega deal (>$5m).
·Software revenue declined due to the combination of YoY CC bookings decline of 14% and a YoY increase in subscription mix greater than 20x.
·On a constant currency, license mix-adjusted basis, software revenue declined 7% YoY.
·Subscription revenue grew over 60% YoY CC.
|
Pacific Rim Software
|
$23.5
|
(17%)
|
(12%)
|
·YoY CC bookings growth of 4% was offset by a YoY increase in subscription mix of greater than 10x.
·On a constant currency, license mix-adjusted basis, software revenue declined 1% YoY.
·Subscription revenue grew more than 350% YoY CC.
|
In millions
|
Q2'16
GAAP |
Q2'16
Non-GAAP |
Management Comments
|
Professional Services
Gross Margin |
15%
|
17%
|
·Strong performance in the quarter. We expect to achieve our non-GAAP target of 16% for the full year.
|
Operating Expense
|
$190.7
|
$164.2
|
·Non-GAAP operating expense was at the low end of our guidance range, despite high incentive compensation expense due to the over-performance in subscription bookings and ACV, while GAAP operating expense was just below the low end of our range.
·Non-GAAP operating expense increased approximately 1% YoY, despite 3 acquisitions (Kepware, Vuforia and ColdLight), demonstrating our strong focus on managing our costs through rigorous portfolio management.
·GAAP operating expense reflects restructuring charges of $5 million booked in Q2 related to the workforce realignment announced in October 2015.
|
Operating Margin
|
1%
|
14%
|
·Both GAAP and non-GAAP operating margin were below our guidance due to lower perpetual revenue recognized in the quarter resulting from the stronger-than-anticipated subscription mix.
·Our model shows that if adjusted to our guidance subscription mix, non-GAAP operating margin would have exceeded our guidance.
·GAAP operating margin was negatively impacted by the $5 million restructuring charge described above.
|
Tax Rate
|
(45%)
|
21%
|
·We expect a non-GAAP tax rate of 8-10% for the year. The first-half non-GAAP tax rate is approximately 7% with a 21% tax rate in Q2.
|
·
|
In Q2'16, subscription solutions bookings represented 54% of bookings, above our guidance assumption of 26%, driven by better than expected adoption of our subscription offering in each of our segments, in each of the regions in which we operate, in both our direct and indirect channels, and due to our support conversion program. In Q2'16, all large deals (>$1 million) were subscriptions; there were no large (>$1 million) perpetual bookings.
|
·
|
For Q2'16, approximately 82% of non-GAAP software revenue came from recurring revenue streams, up from 73% in the year ago period.
|
·
|
Annualized recurring revenue (ARR), was approximately $742 million, which increased 3% on a constant currency basis compared to Q2'15. Due to our calculation methodology, quarterly variability in this metric should be expected, primarily due to the linearity of support billings during the year and the percentage of on-time renewals, the amount of support win-backs in a quarter, and whether the win-backs are traditional support, with immediate revenue recognition of the past-due amount, or a conversion to subscription, where all revenue is recognized over the future period. Multiple other contractual factors including ramping of committed monthly payments and other elements that may be sold with the subscription or support contract can impact the timing of revenue and the calculation of ARR.
|
·
|
In keeping with our strategy to grow our professional services partner ecosystem, Q2'16 service partner bookings grew approximately 11% QoQ, with strong bookings growth among our large system integrator partners.
|
·
|
Cash flow from operations was $49 million. Excluding $28 million paid in February in connection with the SEC and DOJ FCPA investigation related to our China business and $25 million paid in connection with the restructuring announced in October 2015, cash provided by operations for Q2'16 was $102 million and free cash flow was $97 million. We did not purchase any shares in Q2'16, as our share repurchases are planned for the second half of FY'16.
|
·
|
As of April 2, 2016, borrowings under our credit facility totaled $838 million. Under our current leverage covenant, we are limited to 3.5 times adjusted EBITDA, which is reduced to 3.25 from September 30, 2016 forward. Further, if our leverage covenant ratio exceeds 3.0 times adjusted EBITDA, our stock repurchases are limited to $50 million in a year. Our leverage ratio at the end of Q2'16 reflecting all current terms under the credit facility is 3.12.
|
·
|
While our Q2'16 bookings results were above the high-end of our guidance, we attribute our solid performance, relative to guidance, primarily to improved execution and our support conversion program and remain cautious of the global macroeconomic environment.
|
·
|
Despite the macroeconomic uncertainty, we are increasing our bookings guidance to reflect (1) current foreign exchange rates, (2) our first-half bookings over-performance, and (3) our current view of the second half of the fiscal year.
|
·
|
We expect large deals, which historically represented 30% to 50% of bookings, will remain at the lower end of that range. This is based on the effect of a more challenging global manufacturing economy on large deal volumes in our Solutions Group business and the potential for smaller average deal sizes as the subscription model accelerates.
|
·
|
The solid subscription results in the first half of FY'16 and growing pipeline of subscription deals is resulting in an increase to our outlook for the full-year subscription mix. A higher mix of subscription bookings is expected to benefit us over the long term, but results in lower revenue and lower earnings in the near term.
|
·
|
Because subscription is still new to much of our sales force, it can be challenging to forecast the rate of customer adoption, the pace of our subscription transition and the overall impact to near-term reported financial results.
|
·
|
We are modestly increasing the high end of our OpEx guidance for the year, but only to reflect the impact of currency. Excluding currency, there is no change to the high end of our operating investment plans.
|
·
|
Our previously announced restructuring plan to repurpose or eliminate approximately 8% of worldwide positions and to consolidate select facilities in order to drive long-term margin expansion is expected to result in a restructuring charge of up to $50 million; of which $37 million was recorded in Q1'16 and $5 million in Q2'16, with the remainder expected to be recorded in Q3 and Q4 of FY'16. Substantially all of the charges are attributable to termination benefits, most of which will be paid in FY'16.
|
·
|
As it relates to our longer-term capital strategy, the company is evaluating refinancing opportunities in the credit and debt markets, and guidance excludes the impact of any such refinancing, which would likely increase our interest expense in the near-term, but enable us to fix our interest rate for an extended period of time.
|
FY'16 Financial and Operating Guidance
|
|||||
In millions
|
Q3'16
Low |
Q3'16
High |
FY'16
Low |
FY'16
High |
Management Comments
|
Subscription ACV
|
$22
|
$24
|
$79
|
$84
|
·FY'16 increased due to higher anticipated mix of subscription bookings.
|
License and Subscription Bookings
|
$90
|
$100
|
$357
|
$377
|
·FY'16 increased to reflect better than expected currency, 1H performance, and anticipated 2H results.
|
Subscription % of Bookings
|
48%
|
48%
|
44%
|
44%
|
·Based on the results of Q2 and our current view of the pipeline, we have raised our FY'16 guidance to 44% from 30%.
|
Subscription Revenue
|
$32
|
$32
|
$115
|
$116
|
·FY'16 increased reflecting the higher anticipated mix of subscription bookings and contribution from support conversions in the first half of FY'16.
|
Support Revenue
|
$159
|
$159
|
$649
|
$650
|
·FY'16 decreased primarily by lower anticipated perpetual license bookings due to mix and support conversions. In addition, to further our objective to become a subscription company, at the start of Q3 we introduced in the channel a win-back support conversion program to subscription, where revenue will be deferred and recognized over the future period of the subscription contract rather than up-front at the time of the win-back as it had been recognized in the past.
|
Perpetual License Revenue
|
$47
|
$52
|
$200
|
$212
|
·FY'16 decreased due to higher subscription mix.
|
Software Revenue
|
$238
|
$243
|
$964
|
$978
|
·FY'16 decreased due to a higher mix of subscription and support conversions, including projected channel conversions under our new win-back program where revenue is deferred and recognized over the future period of the subscription contract rather than up front at the time of the win-back as it had been recognized in the past.
|
Professional Services Revenue
|
$49
|
$49
|
$196
|
$197
|
·FY'16 decreased due to continued focus on growing our service partner ecosystem.
|
Total Revenue
|
$287
|
$292
|
$1,160
|
$1,175
|
·FY'16 decreased primarily due to a higher mix of subscription, including support conversions and win-back conversions to subscription, as well as lowered professional service revenue expectations.
·Our hedging program reduces the impact of recent Fx changes on our FY'16 revenue guidance.
|
In millions
|
Q3'16
Low |
Q3'16
High |
FY'16
Low |
FY'16
High |
Management Comments
|
Operating Expense (GAAP)
Operating Expense (Non-GAAP)
|
$196
$167
|
$198
$169
|
$798
$656
|
$802
$660
|
·FY'16 non-GAAP operating expense increased on the high end to reflect Fx. Range narrowed from the low end to reflect higher incentive compensation due to over-performance on subscription and ACV.
|
Operating Margin
(GAAP) |
2%
|
4%
|
3%
|
4%
|
·FY'16 non-GAAP operating margin decline to 19% vs. previous guidance of 22% to reflect the negative impact of a higher subscription mix on revenue.
·We are targeting a 16% non-GAAP professional services gross margin in FY'16.
|
Operating Margin (Non-GAAP)
|
16%
|
17%
|
18%
|
19%
|
|
Tax Rate
(GAAP) |
10%
|
8%
|
10%
|
0%
|
·FY'16 tax rate guidance of 8% to 10% vs. previous guidance of 12% to 15% due to full year forecasted geographic mix of non-GAAP earnings.
|
Tax Rate (Non-GAAP)
|
10%
|
8%
|
10%
|
8%
|
|
Shares Outstanding
|
116
|
116
|
116
|
116
|
·We expect share count to be 116 million, with planned share repurchases in the second half of the year.
|
EPS
(GAAP) |
$0.01
|
$0.06
|
$0.11
|
$0.18
|
·FY'16 non-GAAP EPS decreased due to the negative impact of a higher subscription mix on revenue.
|
EPS
(Non-GAAP)
|
$0.31
|
$0.36
|
$1.52
|
$1.62
|
|
Free Cash Flow
|
$215
|
$225
|
·Our FY'16 free cash flow guidance excludes previously announced restructuring payments of approximately $50 million and the $28 million legal settlement in connection with the SEC and DOJ FCPA investigation related to our China business.
|
In millions
|
Q3
FY'16 |
FY'16
|
Effect of acquisition accounting on fair value of acquired deferred revenue
|
$ 1
|
$3
|
Stock-based compensation expense
|
14
|
66
|
Intangible asset amortization expense
|
15
|
58
|
Acquisition-related charges
|
0
|
2
|
Restructuring Charges
|
8
|
50
|
Non-Operating Credit Facility Refinancing Costs
|
-
|
2
|
Total Estimated GAAP adjustments
|
$38
|
$182
|
·
|
We believe that the initiatives we are driving in our Solutions Group and strong position we have established in our Technology Platform Group together can drive ~10% bookings growth by FY'18. This is predicated on achieving growth in our Solutions Group in line with market growth rates of ~6% by FY18 and growth in our Technology Platform Group in line with market growth rates of ~40%.
|
·
|
Exiting FY'18 we expect to see continued bookings growth, which in turn, we expect to drive ~10% total revenue growth by FY'21, when we expect our financial results will have normalized from the subscription transition.
|
·
|
We expect our subscription bookings mix will average 44% for the full-year, then continue to grow through FY'18, when we expect to achieve a steady-state mix of 70%.
|
·
|
Based on these high-level assumptions, we expect revenue, operating margin and free cash flow to trough in FY'18, begin to recover in FY'19 and normalize in FY'21, at which point we expect to achieve non-GAAP operating margins in the low 30% range.
|
PTC Inc.
|
|||||||||||||||||||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS (UNAUDITED) | |||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||
April 2,
|
April 4,
|
April 2,
|
|||||||||||||||||
2015
|
2016
|
2015
|
|||||||||||||||||
GAAP revenue
|
$
|
272,627
|
$
|
314,119
|
$
|
563,644
|
$
|
639,561
|
|||||||||||
Fair value adjustment of acquired deferred subscription revenue
|
777
|
590
|
965
|
1,272
|
|||||||||||||||
Fair value adjustment of acquired deferred support revenue
|
-
|
265
|
-
|
730
|
|||||||||||||||
Fair value adjustment of acquired deferred services revenue
|
286
|
278
|
595
|
535
|
|||||||||||||||
Non-GAAP revenue
|
$
|
273,690
|
$
|
315,252
|
$
|
565,204
|
$
|
642,098
|
|||||||||||
GAAP gross margin
|
$
|
192,436
|
$
|
228,065
|
$
|
403,305
|
$
|
460,565
|
|||||||||||
Fair value adjustment of acquired deferred revenue
|
1,063
|
1,133
|
1,560
|
2,537
|
|||||||||||||||
Fair value adjustment to deferred services cost
|
(125
|
)
|
(151
|
)
|
(257
|
)
|
(257
|
)
|
|||||||||||
Stock-based compensation
|
2,379
|
2,611
|
5,735
|
5,218
|
|||||||||||||||
Amortization of acquired intangible assets included in cost of software revenue
|
6,725
|
4,714
|
11,852
|
9,481
|
|||||||||||||||
Non-GAAP gross margin
|
$
|
202,478
|
$
|
236,372
|
$
|
422,195
|
$
|
477,544
|
|||||||||||
GAAP operating income (loss)
|
$
|
1,758
|
$
|
3,988
|
$
|
(11,535
|
)
|
$
|
41,619
|
||||||||||
Fair value adjustment of acquired deferred revenue
|
1,063
|
1,133
|
1,560
|
2,537
|
|||||||||||||||
Fair value adjustment to deferred services cost
|
(125
|
)
|
(151
|
)
|
(257
|
)
|
(257
|
)
|
|||||||||||
Stock-based compensation
|
14,836
|
12,822
|
38,025
|
24,064
|
|||||||||||||||
Amortization of acquired intangible assets included in cost of software revenue
|
6,725
|
4,714
|
11,852
|
9,481
|
|||||||||||||||
Amortization of acquired intangible assets
|
8,396
|
9,173
|
16,746
|
18,586
|
|||||||||||||||
Acquisition-related charges included in general and administrative costs
|
1,071
|
1,892
|
2,278
|
5,925
|
|||||||||||||||
US pension plan termination-related costs
|
-
|
1,713
|
-
|
3,397
|
|||||||||||||||
Restructuring charges
|
4,579
|
38,487
|
41,726
|
38,232
|
|||||||||||||||
Non-GAAP operating income (1)
|
$
|
38,303
|
$
|
73,771
|
$
|
100,395
|
$
|
143,584
|
|||||||||||
GAAP net income (loss)
|
$
|
(5,173
|
)
|
$
|
5,392
|
$
|
(29,065
|
)
|
$
|
35,676
|
|||||||||
Fair value adjustment of acquired deferred revenue
|
1,063
|
1,133
|
1,560
|
2,537
|
|||||||||||||||
Fair value adjustment to deferred services cost
|
(125
|
)
|
(151
|
)
|
(257
|
)
|
(257
|
)
|
|||||||||||
Stock-based compensation
|
14,836
|
12,822
|
38,025
|
24,064
|
|||||||||||||||
Amortization of acquired intangible assets included in cost of software revenue
|
6,725
|
4,714
|
11,852
|
9,481
|
|||||||||||||||
Amortization of acquired intangible assets
|
8,396
|
9,173
|
16,746
|
18,586
|
|||||||||||||||
Acquisition-related charges included in general and administrative costs
|
1,071
|
1,892
|
2,278
|
5,925
|
|||||||||||||||
US pension plan termination-related costs
|
-
|
1,713
|
-
|
3,397
|
|||||||||||||||
Restructuring charges
|
4,579
|
38,487
|
41,726
|
38,232
|
|||||||||||||||
Non-operating credit facility refinancing costs
|
-
|
-
|
2,359
|
-
|
|||||||||||||||
Income tax adjustments (2)
|
(5,208
|
)
|
(13,757
|
)
|
(279
|
)
|
(17,243
|
)
|
|||||||||||
Non-GAAP net income
|
$
|
26,164
|
$
|
61,418
|
$
|
84,945
|
$
|
120,398
|
|||||||||||
GAAP diluted earnings (loss) per share
|
$
|
(0.05
|
)
|
$
|
0.05
|
$
|
(0.25
|
)
|
$
|
0.31
|
|||||||||
Fair value of acquired deferred revenue
|
0.01
|
0.01
|
0.01
|
0.02
|
|||||||||||||||
Stock-based compensation
|
0.13
|
0.11
|
0.33
|
0.21
|
|||||||||||||||
Amortization of acquired intangibles
|
0.13
|
0.12
|
0.25
|
0.24
|
|||||||||||||||
Acquisition-related charges
|
0.01
|
0.02
|
0.02
|
0.05
|
|||||||||||||||
US pension plan termination-related costs
|
-
|
0.01
|
-
|
0.03
|
|||||||||||||||
Restructuring charges
|
0.04
|
0.33
|
0.36
|
0.33
|
|||||||||||||||
Non-operating credit facility refinancing costs
|
-
|
-
|
0.02
|
-
|
|||||||||||||||
Income tax adjustments
|
(0.05
|
)
|
(0.12
|
)
|
(0.00
|
)
|
(0.15
|
)
|
|||||||||||
Non-GAAP diluted earnings per share
|
$
|
0.23
|
$
|
0.53
|
$
|
0.74
|
$
|
1.03
|
|||||||||||
GAAP diluted weighted average shares outstanding
|
114,563
|
115,922
|
114,354
|
116,479
|
|||||||||||||||
Dilutive effect of stock based compensation plans
|
428
|
-
|
758
|
-
|
|||||||||||||||
Non-GAAP diluted weighted average shares outstanding
|
114,991
|
115,922
|
115,112
|
116,479
|
|||||||||||||||
(1
|
)
|
Operating margin impact of non-GAAP adjustments:
|
|||||||||||||||||
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||
April 2,
|
April 4,
|
April 2,
|
|||||||||||||||||
2015
|
2016
|
2015
|
|||||||||||||||||
GAAP operating margin
|
0.6
|
%
|
1.3
|
%
|
-2.0
|
%
|
6.5
|
%
|
|||||||||||
Fair value of acquired deferred revenue
|
0.4
|
%
|
0.4
|
%
|
0.3
|
%
|
0.4
|
%
|
|||||||||||
Fair value adjustment to deferred services cost
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
|||||||||||
Stock-based compensation
|
5.4
|
%
|
4.1
|
%
|
6.7
|
%
|
3.8
|
%
|
|||||||||||
Amortization of acquired intangibles
|
5.5
|
%
|
4.4
|
%
|
5.1
|
%
|
4.4
|
%
|
|||||||||||
Acquisition-related charges
|
0.4
|
%
|
0.6
|
%
|
0.4
|
%
|
0.9
|
%
|
|||||||||||
US pension plan termination-related costs
|
0.0
|
%
|
0.5
|
%
|
0.0
|
%
|
0.5
|
%
|
|||||||||||
Restructuring charges
|
1.7
|
%
|
12.3
|
%
|
7.4
|
%
|
6.0
|
%
|
|||||||||||
Non-GAAP operating margin
|
14.0
|
%
|
23.4
|
%
|
17.8
|
%
|
22.4
|
%
|
|||||||||||
(2
|
)
|
We have recorded a full valuation allowance against our U.S. net deferred tax assets and a valuation allowance against net deferred tax assets in certain foreign jurisdictions. As we are profitable on a non-GAAP basis, the 2016 and 2015 non-GAAP tax provisions are being calculated assuming there is no valuation allowance. Income tax adjustments for the three and six months ended April 4, 2015 reflect the tax effects of non-GAAP adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-GAAP adjustments listed above. However, for the six months ended April 2, 2016, because of low expected full year GAAP earnings combined with the relatively large year-to-date GAAP loss, the non-GAAP provision for the second quarter and first six months of 2016 calculated based on our historical methodology is not reflective of our full
year expected non-GAAP tax rate. As a result, in the second quarter we changed our methodology for calculating our non-GAAP tax provision. For the six months ended April 2, 2016, our non-GAAP tax provision is based on our annual expected non-GAAP tax rate applied to our year-to-date non-GAAP earnings.
|
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
9/30/16 | ||||
Filed on / For Period End: | 4/20/16 | |||
4/4/16 | ||||
4/2/16 | ||||
4/4/15 | 10-Q, 8-K | |||
List all Filings |