Published: July 29, 2010
Acme Packet Reports Record Results for Second Quarter of 2010
BEDFORD, Mass. - (BUSINESS WIRE) - Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control
solutions, today announced record results for the second quarter ended
June 30, 2010 and raised its business outlook for 2010.
Results for the Second Quarter of 2010
Total revenue for the second quarter of 2010 was $53.3 million, compared
to $32.9 million in the second quarter of 2009 and $51.1 million in the
first quarter of 2010. Net income for the second quarter of 2010 was
$9.7 million, or $0.14 per share on a diluted basis, compared to $1.7
million, or $0.03 per share on a diluted basis in the second quarter of
2009 and $8.3 million, or $0.13 per share on a diluted basis, in the
first quarter of 2010. Net income on a non-GAAP1 basis for
the second quarter of 2010 was $12.4 million, or $0.18 per share on a
diluted basis, compared to $4.5 million, or $0.07 per share on a diluted
basis, in the second quarter of last year, and $10.7 million, or $0.16
per share on a diluted basis, in the first quarter of 2010. A
reconciliation of GAAP to non-GAAP1 results, and a statement
as to the use of non-GAAP1 financial measures, is included at
the end of this press release.
Results for the First Six Months of 2010
Total revenue for the first six months of 2010 was $104.4 million
compared to $63.8 million in the same period last year. Net income for
the first six months of 2010 was $18.1 million, or $0.27 per share on a
diluted basis, compared to $4.5 million, or $0.07 per share on a diluted
basis, in the same period last year. Net income on a non-GAAP1
basis for the first six months of 2010 was $23.0 million, or $0.35 per
share on a diluted basis, compared to $8.8 million, or $0.15 per share
on a diluted basis, in the same period last year. A reconciliation of
GAAP to non-GAAP1 results, and a statement as to the use of
non-GAAP1 financial measures, is included at the end of this
press release.
Company Raises Business Outlook for 2010
The Company today raised its full year business outlook for 2010. The
Company's outlook is based on the current indications for its business,
which may change at any time. The Company will not comment on its
business outlook during the quarter unless it is done through an
explicit public disclosure.
|
|
|
Business Outlook for Year Ending December 31, 2010
|
|
Revenue and Share Count in Millions
|
|
Issued April 29, 2010
|
Issued July 29, 2010
|
|
Total revenue
|
|
$204-$208
|
$214-$218
|
|
Total revenue growth rate
|
|
Approximately 45%
|
Approximately 53%
|
|
GAAP diluted EPS
|
|
-
|
$0.55-$0.57
|
|
GAAP diluted EPS growth rate
|
|
-
|
Approximately 100%
|
|
Non-GAAP1 diluted EPS
|
|
$0.65-$0.70
|
$0.72-$0.74
|
|
Non-GAAP1 diluted EPS growth rate
|
|
Approximately 90%
|
Approximately 109%
|
|
Diluted share count
|
|
67.0
|
68.0
|
|
|
|
|
|
|
|
|
|
|
The Company expects net income on a non-GAAP1 basis to differ
from net income on a GAAP basis in 2010 as it is expected to exclude
estimated stock-based compensation expense of approximately $10.2
million, or $0.15 per share on a diluted basis, and amortization of
acquired intangible assets of approximately $1.2 million, or $0.02 per
share on a diluted basis. A reconciliation of the Company's expected
GAAP to non-GAAP1 business outlook, and a statement as to the
use of non-GAAP1 financial measures, is included at the end
of this press release.
Company to Host Live Conference Call and Webcast
The Company's management team plans to host a live conference call and
webcast at 5:00 p.m. eastern daylight savings time today to discuss the
financial results as well as management's outlook for the business. The
conference call may be accessed in the United States by dialing (800)
230-1074 and using access code "APKT" . The conference call may be
accessed outside of the United States by dialing +1 612.234.9960 and
using access code "APKT" . The conference call will be simultaneously
webcast on the Company's investor relations website, which can be
accessed at www.ir.acmepacket.com.
A replay of the conference call will be available approximately two
hours after the call by dialing (800) 475-6701 and using access code
163908 or by accessing the webcast replay on the Company's investor
relations website.
__________________
1A reconciliation of GAAP to non-GAAP results,
and a statement on the use of non-GAAP financial measures, is included
at the end of this press release.
About Acme Packet
Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control
solutions, enables the delivery of trusted, first-class interactive
communications-voice, video and multimedia sessions—and data services
across IP network borders. Our Net-Net family of session border
controllers, multiservice security gateways and session routing proxies
supports multiple applications in service provider, enterprise and
contact center networks-from VoIP trunking to hosted enterprise and
residential services to fixed-mobile convergence. They satisfy critical
security, service assurance and regulatory requirements in wireline,
cable and wireless networks; and support multiple protocols-SIP, H.323,
MGCP/NCS, H.248 and RTSP-and multiple border points—service provider
access and interconnect, and enterprise access and trunking. Over 10,000
Acme Packet systems have been deployed by more than 1,105 customers in
105 countries. They include 91 of the top 100 service providers
in the world and 11 of the Fortune 25. For more information, contact us
at +1 781.328.4400, or visit www.acmepacket.com.
Acme Packet, Inc. Safe Harbor Statement
Statements contained herein that are not historical fact (including
those in the section "Company Raises Business Outlook for 2010" ) may be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Such forward-looking statements may relate to, among other things,
expected financial and operating results, expected growth rates, future
stock-based compensation and amortization expenses, and to future
business prospects and market conditions. Such forward-looking
statements do not constitute guarantees of future performance and are
subject to a variety of risks and uncertainties that could cause actual
results to differ materially from those anticipated. These include, but
are not limited to: the amount of stock-based compensation awarded; the
applicable Company stock price used to determine stock-based
compensation; difficulties expanding the Company's customer base;
difficulties leveraging market opportunities; difficulties providing
solutions that meet the needs of customers; poor product sales; long
sales cycles; difficulty developing new products; difficulty in
relationships with vendors and partners; higher risk in international
operations; difficulty managing rapid growth; difficulty managing the
Company's financial performance; the ability to hire and retain
employees and appropriately staff operations; the Company's cash needs;
and the impact of new accounting pronouncements and increased
competition. Additional factors that could cause actual results to
differ materially from those projected or suggested in any
forward-looking statements are contained in the Company's recent filings
with the Securities and Exchange Commission, including those factors
discussed under the caption "Risk Factors" in such filings.
A/73442304.2
|
Acme Packet, Inc.
|
|
Condensed Consolidated Statements of Income
|
|
(in thousands, except share and per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
42,031
|
|
$
|
24,243
|
|
$
|
84,124
|
|
$
|
47,294
|
|
Maintenance, support and service
|
|
|
11,305
|
|
|
8,618
|
|
|
20,262
|
|
|
16,554
|
|
Total revenue
|
|
|
53,336
|
|
|
32,861
|
|
|
104,386
|
|
|
63,848
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue (a) (b):
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
7,434
|
|
|
4,870
|
|
|
14,983
|
|
|
10,102
|
|
Maintenance, support and service
|
|
|
2,140
|
|
|
1,207
|
|
|
4,408
|
|
|
2,130
|
|
Total cost of revenue
|
|
|
9,574
|
|
|
6,077
|
|
|
19,391
|
|
|
12,232
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
43,762
|
|
|
26,784
|
|
|
84,995
|
|
|
51,616
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses (a) (b):
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
16,623
|
|
|
12,608
|
|
|
33,050
|
|
|
23,944
|
|
Research and development
|
|
|
8,646
|
|
|
7,078
|
|
|
17,339
|
|
|
13,242
|
|
General and administrative
|
|
|
3,595
|
|
|
3,288
|
|
|
6,879
|
|
|
6,421
|
|
Merger and integration-related costs
|
|
|
-
|
|
|
1,102
|
|
|
-
|
|
|
1,102
|
|
Total operating expenses
|
|
|
28,864
|
|
|
24,076
|
|
|
57,268
|
|
|
44,709
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
14,898
|
|
|
2,708
|
|
|
27,727
|
|
|
6,907
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
176
|
|
|
56
|
|
|
165
|
|
|
122
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes
|
|
|
15,074
|
|
|
2,764
|
|
|
27,892
|
|
|
7,029
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
5,345
|
|
|
1,071
|
|
|
9,830
|
|
|
2,578
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,729
|
|
$
|
1,693
|
|
$
|
18,062
|
|
$
|
4,451
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.16
|
|
$
|
0.03
|
|
$
|
0.30
|
|
$
|
0.08
|
|
Diluted
|
|
$
|
0.14
|
|
$
|
0.03
|
|
$
|
0.27
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares used
in net income
per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
61,488,059
|
|
|
56,941,547
|
|
|
60,659,321
|
|
|
55,849,118
|
|
Diluted
|
|
|
67,184,884
|
|
|
61,418,408
|
|
|
66,118,943
|
|
|
59,817,024
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts include stock-based compensation
expense, as
follows:
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
$
|
187
|
|
$
|
130
|
|
$
|
355
|
|
$
|
256
|
|
Cost of maintenance, support and service revenue
|
|
|
230
|
|
|
140
|
|
|
458
|
|
|
261
|
|
Sales and marketing
|
|
|
1,777
|
|
|
1,190
|
|
|
3,333
|
|
|
2,276
|
|
Research and development
|
|
|
1,149
|
|
|
885
|
|
|
2,297
|
|
|
1,603
|
|
General and administrative
|
|
|
493
|
|
|
268
|
|
|
914
|
|
|
526
|
|
|
|
|
|
|
|
|
|
|
|
(b) Amounts include amortization of acquired
intangible
assets, as follows:
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
|
379
|
|
|
139
|
|
|
758
|
|
|
139
|
|
Sales and marketing
|
|
|
45
|
|
|
9
|
|
|
75
|
|
|
9
|
|
Research and development
|
|
|
11
|
|
|
10
|
|
|
37
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acme Packet, Inc.
Statement on Use of Non-GAAP Financial
Measures and
Reconciliation of Non-GAAP Net Income and
Non-GAAP Net Income Per Share
(in thousands, except per
share data)
(unaudited)
Statement on Use of Non-GAAP Financial
Measures:
The Company uses the financial measures "non-GAAP net income" and
"non-GAAP net income per share" to supplement its consolidated financial
statements, which are presented in accordance with accounting principles
generally accepted in the United States ("GAAP" ). The presentation of
non-GAAP net income and non-GAAP net income per share is not meant to be
a substitute for "net income" or "net income per share" , presented in
accordance with GAAP, but rather should be evaluated in conjunction with
net income and net income per share. The Company's management believes
that the presentation of non-GAAP net income and non-GAAP net income per
share provides useful information to investors because these financial
measures exclude stock-based compensation expense which is a non-cash
charge, as well as amortization of acquired intangible assets and merger
and integration-related costs associated with the Company's acquisition
of Covergence Inc. in April 2009. By excluding stock-based compensation
expense, amortization of acquired intangible assets, and merger and
integration-related costs, management can compare the Company's
operations to prior periods and to the operations of other companies in
its industry who may have materially different unusual charges.
Management does not consider any of stock-based compensation expense,
amortization of acquired intangible assets, and merger and
integration-related costs to be part of the Company's operating
activities or meaningful in evaluating the Company's past financial
performance or future prospects. Management believes that excluding
these items is useful to investors because it is more representative of
ongoing costs and therefore more comparable to historical operations.
Non-GAAP net income and non-GAAP net income per share are primary
financial indicators that the Company's management uses to evaluate the
Company's financial results and forecast anticipated financial results
for future periods. Management also uses these non-GAAP measures to make
financial and operational decisions as these numbers exclude
non-operational activities. These non-GAAP measures should not be
considered measures of the Company's liquidity. The Company's definition
of "non-GAAP net income" and/or "non-GAAP net income per share" may
differ from similar measures used by other companies and may differ from
period to period. Management may make other adjustments for expenses and
gains that it does not consider reflective of core operating performance
in a particular period and may modify "non-GAAP net income" and/or
"non-GAAP net income per share" by excluding these expenses and gains.
|
Reconciliation of Non-GAAP Net
Income and Non-GAAP Net Income Per Share for the Three Months
Ended June 30, 2010, March 31, 2010, and June 30, 2009, and for
the Six Months Ended June 30, 2010, and June 30, 2009:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
2010
|
|
March 31,
2010
|
|
June 30,
2009
|
|
June 30,
2010
|
|
June 30,
2009
|
|
Reconciliation of non-GAAP net income:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
9,729
|
|
$
|
8,333
|
|
$
|
1,693
|
|
$
|
18,062
|
|
$
|
4,451
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense, net
of taxes
|
|
|
2,352
|
|
|
2,053
|
|
|
1,826
|
|
|
4,405
|
|
|
3,390
|
|
Amortization of acquired intangible
assets, net of taxes
|
|
|
281
|
|
|
283
|
|
|
103
|
|
|
564
|
|
|
103
|
|
Merger and integration-related costs,
net of taxes
|
|
|
-
|
|
|
-
|
|
|
903
|
|
|
-
|
|
|
903
|
|
Non-GAAP net income
|
|
$
|
12,362
|
|
$
|
10,669
|
|
$
|
4,525
|
|
$
|
23,031
|
|
$
|
8,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP net income
per share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic
|
|
$
|
0.16
|
|
$
|
0.14
|
|
$
|
0.03
|
|
$
|
0.30
|
|
$
|
0.08
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense, net
of taxes
|
|
|
0.04
|
|
|
0.04
|
|
|
0.03
|
|
|
0.07
|
|
|
0.06
|
|
Amortization of acquired intangible
assets, net of taxes
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
|
Merger and integration-related costs,
net of taxes
|
|
|
-
|
|
|
-
|
|
|
0.02
|
|
|
-
|
|
|
0.02
|
|
Non-GAAP net income per share, basic
|
|
$
|
0.20
|
|
$
|
0.18
|
|
$
|
0.08
|
|
$
|
0.38
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, diluted
|
|
$
|
0.14
|
|
$
|
0.13
|
|
$
|
0.03
|
|
$
|
0.27
|
|
$
|
0.07
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense, net
of taxes
|
|
|
0.04
|
|
|
0.03
|
|
|
0.03
|
|
|
0.07
|
|
|
0.06
|
|
Amortization of acquired intangible
assets net of taxes
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
|
Merger and integration-related costs,
net of taxes
|
|
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
|
|
0.02
|
|
Non-GAAP net income per share, diluted
|
|
$
|
0.18
|
|
$
|
0.16
|
|
$
|
0.07
|
|
$
|
0.35
|
|
$
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Expected Non-GAAP
Net Income and Non-GAAP Net Income Per Share for Year Ending
December 31, 2010:
|
|
|
|
|
|
|
|
Year Ending December 31, 2010
|
|
|
|
Low End
|
|
High End
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
214,000
|
|
$
|
218,000
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP net income:
|
|
|
|
|
|
Net income
|
|
$
|
37,500
|
|
$
|
38,500
|
|
Adjustments:
|
|
|
|
|
|
Stock-based compensation expense, net of taxes
|
|
|
10,200
|
|
|
10,200
|
|
Amortization of acquired intangible assets, net of taxes
|
|
|
1,200
|
|
|
1,200
|
|
Non-GAAP net income
|
|
$
|
48,900
|
|
$
|
49,900
|
|
|
|
|
|
|
|
Reconciliation of non-GAAP net income per share:
|
|
|
|
|
|
Net income per share, basic
|
|
$
|
0.61
|
|
$
|
0.62
|
|
Adjustments:
|
|
|
|
|
|
Stock-based compensation expense, net of taxes
|
|
|
0.16
|
|
|
0.16
|
|
Amortization of acquired intangible assets, net of taxes
|
|
|
0.02
|
|
|
0.02
|
|
Non-GAAP net income per share, basic
|
|
$
|
0.79
|
|
$
|
0.80
|
|
|
|
|
|
|
|
Net income per share, diluted
|
|
$
|
0.55
|
|
$
|
0.57
|
|
Adjustments:
|
|
|
|
|
|
Stock-based compensation expense, net of taxes
|
|
|
0.15
|
|
|
0.15
|
|
Amortization of acquired intangible assets, net of taxes
|
|
|
0.02
|
|
|
0.02
|
|
Non-GAAP net income per share, diluted
|
|
$
|
0.72
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acme Packet, Inc.
|
|
Other Operational Data
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
2010
|
|
March 31,
2010
|
|
June 30,
2009
|
|
June 30,
2010
|
|
June 30,
2009
|
|
Other operational data:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
$
|
1,908
|
|
$
|
1,853
|
|
$
|
1,333
|
|
$
|
3,761
|
|
$
|
2,260
|
|
Capital expenditures
|
|
$
|
3,300
|
|
$
|
2,767
|
|
$
|
1,228
|
|
$
|
6,067
|
|
$
|
2,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acme Packet, Inc.
|
|
Condensed Consolidated Balance Sheets
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
June 30,
2010
|
|
December 31,
2009
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
90,533
|
|
|
$
|
90,471
|
|
|
Short-term investments
|
|
|
126,796
|
|
|
|
39,990
|
|
|
Accounts receivable, net
|
|
|
27,488
|
|
|
|
25,604
|
|
|
Inventory
|
|
|
5,855
|
|
|
|
4,372
|
|
|
Deferred product costs
|
|
|
3,172
|
|
|
|
3,400
|
|
|
Deferred tax asset
|
|
|
1,567
|
|
|
|
1,567
|
|
|
Other current assets
|
|
|
7,232
|
|
|
|
2,710
|
|
|
Total current assets
|
|
|
262,643
|
|
|
|
168,114
|
|
|
Long-term investments
|
|
|
-
|
|
|
|
44,526
|
|
|
Property and equipment, net
|
|
|
12,812
|
|
|
|
6,437
|
|
|
Acquired intangible assets, net
|
|
|
10,358
|
|
|
|
11,228
|
|
|
Deferred tax asset, net
|
|
|
15,622
|
|
|
|
15,622
|
|
|
Other assets
|
|
|
783
|
|
|
|
799
|
|
|
Total assets
|
|
$
|
302,218
|
|
|
$
|
246,726
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
3,749
|
|
|
$
|
3,895
|
|
|
Accrued expenses and other current liabilities
|
|
|
10,793
|
|
|
|
9,261
|
|
|
Deferred revenue
|
|
|
31,762
|
|
|
|
31,506
|
|
|
Total current liabilities
|
|
|
46,304
|
|
|
|
44,662
|
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
1,614
|
|
|
|
1,841
|
|
|
Deferred rent
|
|
|
2,409
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock
|
|
|
69
|
|
|
|
65
|
|
|
Treasury stock, at cost
|
|
|
(37,522
|
)
|
|
|
(37,522
|
)
|
|
Additional paid-in capital
|
|
|
222,434
|
|
|
|
188,871
|
|
|
Other comprehensive income (loss)
|
|
|
37
|
|
|
|
(2
|
)
|
|
Retained earnings
|
|
|
66,873
|
|
|
|
48,811
|
|
|
Total stockholders' equity
|
|
|
251,891
|
|
|
|
200,223
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
302,218
|
|
|
$
|
246,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flow
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Cash provided by operating activities
|
|
$15,061
|
|
$14,178
|
|
$23,034
|
|
$25,197
|
|
Cash (used in) provided by investing activities
|
|
($22,541)
|
|
$4,610
|
|
($49,182)
|
|
$3,501
|
|
Cash provided by financing activities
|
|
$17,443
|
|
$928
|
|
$26,210
|
|
$1,202
|
Investor Relations:
Acme Packet
Brian Norris,
781-328-4790
bnorris@acmepacket.com
or
Media
and Analyst Contact:
CHEN PR
Chris Carleton, 781-672-3115
ccarleton@chenpr.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
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