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8-K - FORM 8-K - ERESEARCHTECHNOLOGY INC /DE/ | c23791e8vk.htm |
Exhibit 99.1
ERT Reports Third Quarter 2011 Operating Results
Record revenues of $48.1 million
Diluted net income per share GAAP of $0.09 / Non-GAAP of $0.11
Record bookings of $78.4 million
Record backlog of $343.8 million
PHILADELPHIA, Oct. 27, 2011 /PRNewswire/ eResearchTechnology, Inc. (ERT), (Nasdaq: ERT)
a global technology-driven provider of services and customizable medical devices to
biopharmaceutical and healthcare organizations and the market leader for centralized cardiac safety
and respiratory efficacy services in drug development, announced today results for the third
quarter ended September 30, 2011. Unless otherwise noted, all comparative numbers refer to changes
from the same period a year ago. The financial results include the results related to CareFusion
Research Services (RS and now included as part of our German operations) commencing from its date
of acquisition on May 28, 2010.
This press release contains financial measures prepared in accordance with accounting principles
generally accepted in the United States (GAAP) and non-GAAP measures adjusted to exclude the
impact of the amortization of the acquired intangibles and other assets and acquisition and other
costs related to the RS acquisition and related income tax effects. A reconciliation of these GAAP
and non-GAAP measures is found in the attached Reconciliation of GAAP to Non-GAAP Information.
Financial Highlights for the Third Quarter of 2011
| New bookings were $78.4 million in the third quarter of 2011 compared to $70.9 million for the second quarter of 2011 and $59.1 million a year ago. |
| The gross book-to-bill ratio was 1.6 in the third quarter of 2011 compared to 1.7 in the second quarter of 2011 and 1.3 a year ago. |
| Backlog was $343.8 million as of September 30, 2011 compared to $333.2 million as of June 30, 2011 and $303.1 million a year ago. The annualized cancellation rate was 14.6% in the third quarter of 2011 compared to 13.4% in the second quarter of 2011 and 14.6% a year ago. |
| Net revenues were $48.1 million for the third quarter of 2011 compared to $42.8 million for the second quarter of 2011 and $45.1 million a year ago. Revenues from our German operations were $24.1 million in the third quarter of 2011, compared to $20.3 million in the second quarter of 2011 and $21.5 million a year ago. |
| GAAP gross margin percentage was 41.5% in the third quarter of 2011 compared to 37.4% for the second quarter of 2011 and 44.5% a year ago. Non-GAAP gross margin percentage was 45.5% in the third quarter of 2011 compared to 42.0% for the second quarter of 2011 and 50.0% a year ago. Our gross profit margin in the second quarter of 2011 was unusually low due to increased costs in our German operations to support the start of new respiratory studies, negative manufacturing variances and a $0.5 million non-cash adjustment to the carrying value of returned rental equipment. Gross margins are down from a year ago due to the increased mix of lower margin respiratory revenue. |
| GAAP operating income margin percentage was 10.9% in the third quarter of 2011 compared to 6.0% for the second quarter of 2011 and 14.6% a year ago. Non-GAAP operating income margin percentage was 14.9% in the third quarter of 2011 compared to 10.6% for the second quarter of 2011 and 21.3% a year ago. |
| GAAP net income was $4.3 million, or $0.09 per diluted share, in the third quarter of 2011 compared to $1.8 million, or $0.04 per diluted share, in the second quarter of 2011 and $3.2 million, or $0.06 per diluted share, a year ago. Non-GAAP net income was $5.6 million, or $0.11 per diluted share, in the third quarter of 2011 compared to $3.0 million, or $0.06 per diluted share, in the second quarter of 2011 and $5.4 million, or $0.11 per diluted share, a year ago. The impact of foreign exchange rate movements on GAAP and non-GAAP diluted net income per share was a positive $0.01 in the third quarter of 2011 and a negative of $0.03 a year ago. |
| Cash flow from operations was $9.2 million in the third quarter of 2011, compared to $8.7 million in the second quarter of 2011 and $6.4 million a year ago. |
| Cash and short-term investments totaled $29.6 million at September 30, 2011 compared to $31.7 million on June 30, 2011. ERT had $21.0 million in long-term debt as of September 30, 2011 and June 30, 2011. |
| Capital expenditures were $10.2 million for the third quarter of 2011, up sequentially from $7.5 million in the second quarter of 2011 and were comprised of $4.4 million of capitalized software and $5.8 million of equipment which primarily included additions to our rental equipment pool of ECG, respiratory and ePRO equipment to support new studies. |
Financial highlights for the first nine months of 2011
| New bookings were $221.0 million in the first nine months of 2011 compared to $153.3 million for the first nine months of 2010. |
| Net revenues were $132.6 million for the first nine months of 2011 compared to $96.1 million in the comparable period a year ago. Revenues from our German operations were $63.3 million for the first nine months of 2011 and $27.2 million from the period of acquisition to September 30, 2010. |
| GAAP gross margin percentage was 41.0% in the first nine months of 2011 compared to 49.6% for the comparable period a year ago. Non-GAAP gross margin percentage was 45.4% in the first nine months of 2011 compared to 53.0% for the comparable period a year ago. |
| GAAP operating income margin percentage was 9.9% in the first nine months of 2011 compared to 10.8% in the comparable period a year ago. Non-GAAP operating income margin percentage was 14.3% in the first nine months of 2011 compared to 19.6% for the comparable period a year ago. |
| GAAP net income was $9.2 million, or $0.19 per diluted share, in the first nine months of 2011 compared to $5.8 million, or $0.12 per diluted share, in the comparable period a year ago. Non-GAAP net income was $13.1 million, or $0.27 per diluted share, in the first nine months of 2011 compared to $12.3 million, or $0.25 per diluted share, in the comparable period a year ago. |
| Cash flow from operations was $22.9 million in the first nine months of 2011 compared to $18.8 million in the comparable period a year ago. |
We are pleased with the third quarter results which included both record revenues and bookings.
commented Dr. Jeffrey Litwin, President and Chief Executive Officer of ERT. This quarter marks
the third consecutive quarter that bookings exceeded $70 million. The bookings this quarter were
driven by continued strength in electronic Patient Reported Outcome (ePRO) and very strong cardiac
safety activity. While the revenues came in at the higher end of our expectations and our gross
profit margins improved sequentially, our profitability was impacted by a mix shift from higher
margin cardiac safety revenue to lower margin respiratory revenue and increased costs for bonus
provisions and expansion of our facility in Germany to accommodate higher growth which resulted in
achieving EPS at the lower end of our expectations.
We continue to see interest in the unique solutions we can provide to our clients, continued Dr.
Litwin, and this is translating to record bookings at a time where overall research and
development spending is relatively flat. We will continue to invest in the products that
differentiate us from the competition. We expect our fourth quarter results to be fairly similar
to the third quarter, resulting in higher second half 2011 revenues and bookings as compared to the
first half of the year. The growth in our respiratory business has required us to incur higher
spending in cost of goods, operating expense and capital expenditures than we had originally
planned. We are, however, seeing the results of our efforts in our revenue growth and we expect
our profit margins to improve over the course of 2012 as the strategic initiatives we put in place
today take hold, our Germany operations reach a steady state of profitability and we launch our
fully-integrated EXPERT 3 platform.
2011 Guidance
ERT expects net revenues of between $179 million and $182 million for 2011. ERT expects GAAP
diluted net income per share to be between $0.25 and $0.28 for 2011 and non-GAAP diluted net income
per share to be between $0.35 and $0.38 for the same period. EPS guidance has been reduced to
reflect a mix shift from higher margin cardiac safety revenue to lower margin respiratory revenue,
a steady state level of operating expenses and limited impact of foreign exchange (which had a
positive impact of $0.01 per diluted share on our third quarter 2011 results).
For the fourth quarter ending December 31, 2011, we expect revenues to be between $46 million and
$49 million, GAAP diluted net income per share to be between $0.06 and $0.09 and non-GAAP diluted
net income per share to be between $0.08 and $0.11.
Use of Non-GAAP Financial Measures
In addition to GAAP financial measures, ERT uses certain non-GAAP financial measures that exclude
charges related to the amortization of the RS acquired intangible and other assets and acquisition
and other costs which are related to the RS acquisition, and also their related income tax effects.
ERT believes that these non-GAAP measures are useful to investors because this supplemental
information facilitates comparisons of its operations from period to period and to the performance
of other companies within its industry and assists in gaining a better understanding of its
operating results and future prospects. ERT views amortization of acquired intangible and other
assets related to the RS acquisition, which includes such items as the amortization of acquired
customer backlog and technology, as items determined at the time of the acquisition. While ERT
reviews the underlying value of these intangibles regularly for impairment, the amortization is an
expense typically not affected by operations during any particular period and does not contribute
to the operational performance in any particular period. ERT regards acquisition and other costs
related to its recent acquisition as a cost that does not recur on a regular basis.
ERTs non-GAAP effective tax rates differ from its GAAP effective tax rates because of 1) the
exclusion of the amortization of acquired intangible and other assets and acquisition and other
costs related to its acquisition of RS and 2) the income tax effect due to the difference between
the GAAP and non-GAAP effective tax rate applied against the GAAP pre-tax income, primarily as a
result of the acquisition costs incurred in 2010 not being deductible for income tax purposes. ERT
excludes the impact of these discrete tax items from its non-GAAP income tax provision because it
believes they are not indicative of the effective income tax rate of its ongoing business
operations.
Management uses these non-GAAP financial measures, in addition to the measures prepared in
accordance with GAAP, as the basis for measuring ERTs operating performance, financial and
operating decision-making, developing budgets and comparing such performance to that of prior
periods for the same reasons stated above. These non-GAAP financial measures are not meant to be
considered superior to or a substitute for comparable financial measures prepared in accordance
with GAAP. There are also limitations on the non-GAAP measures, including: 1) these non-GAAP
measures do not have standardized meanings and may not be comparable to similar non-GAAP measures
used by other companies, 2) acquisition and other costs related to ERTs 2010 acquisition of RS
represent actual cash expenditures that are excluded from ERTs non-GAAP measures and 3) although
amortization of acquired intangible and other assets does not directly impact ERTs current cash
position, such expense is amortized over their expected economic lives and does represent the
declining value of the assets acquired, but this expense is excluded from ERTs non-GAAP measures.
ERT adjusts for these limitations by relying on these non-GAAP measures only as a supplement to its
GAAP results.
Conference Call
Dr. Litwin and Mr. Keith Schneck, the Companys Chief Financial Officer, will hold a conference
call to discuss these results. The conference call will take place at 5:00 PM EDT on October 27,
2011. For the conference call, interested participants should dial 1-800-860-2442 when calling
within the United States or 1-412-858-4600 when calling internationally. There will be a playback
available as well. To listen to the playback, please call 1-877-344-7529 when
calling within the United States or 1-412-317-0088 when calling internationally. Conference code
for playback is 10005603.
This call is being webcast by MultiVu and can be accessed at ERTs website at www.ert.com. The
webcast may also be accessed via the direct link at
http://www.videonewswire.com/event.asp?id=82965. The webcast can be accessed for up to
one year on either site.
About eResearchTechnology, Inc.
ERT (www.ert.com) is a global technology-driven provider of clinical services and customizable
medical devices to biopharmaceutical and healthcare organizations. It is the market leader for
centralized cardiac safety and respiratory efficacy services in drug development and also collects,
analyzes and distributes electronic patient reported outcomes (ePRO) in multiple modalities across
all phases of clinical research.
This release may include forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that reflect our current views as to future events and
financial performance with respect to our operations. These statements can be identified by the
fact that they do not relate strictly to historical or current facts. They use words such as
aim, anticipate, are confident, estimate, expect, will be, will continue, will
likely result, project, intend, plan, believe, look to and other words and terms of
similar meaning in conjunction with a discussion of future operating or financial performance.
These statements are subject to risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the forward-looking statements. Factors that might
cause such a difference include: unfavorable economic conditions; our ability to obtain new
contracts and accurately estimate net revenues, our positive outlook for future bookings,
variability in size, scope and duration of projects and internal issues at the sponsoring client;
our ability to successfully integrate the RS or any future acquisitions; competitive factors in the
market for our centralized services; changes in the bio-pharmaceutical and healthcare industries to
which we sell our solutions; technological development; and market demand. There is no guarantee
that the amounts in our backlog will ever convert to revenue. Should the economic conditions
deteriorate, the cancellation rates that we have historically experienced could increase. Further
information on potential factors that could affect the Companys financial results can be found in
ERTs Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission. Guidance is
based on managements good faith expectations given current market conditions but that continued or
further deterioration of general economic conditions, in addition to other factors cited elsewhere,
could result in ERT not achieving the revenue and net income per diluted share guidance provided.
Forward-looking statements speak only as of the date made. We undertake no obligation to update
any forward-looking statements, including prior forward-looking statements, to reflect the events
or circumstances arising after the date as of which they were made. As a result of these risks and
uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements
included in this release or that may be made in our filings with the Securities and Exchange
Commission or elsewhere from time to time by, or on behalf of, us.
Contact: |
||
Keith Schneck
|
Robert East | |
eResearchTechnology, Inc.
|
Westwicke Partners, LLC | |
215-282-5566
|
443-213-0502 |
eResearchTechnology, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2010 | 2011 | 2010 | 2011 | |||||||||||||
Net revenues: |
||||||||||||||||
Services |
$ | 25,929 | $ | 25,193 | $ | 59,461 | $ | 71,586 | ||||||||
Site support |
19,199 | 22,890 | 36,631 | 61,045 | ||||||||||||
Total net revenues |
45,128 | 48,083 | 96,092 | 132,631 | ||||||||||||
Costs of revenues: |
||||||||||||||||
Cost of services |
13,526 | 14,554 | 29,162 | 41,325 | ||||||||||||
Cost of site support |
11,505 | 13,574 | 19,261 | 36,886 | ||||||||||||
Total costs of revenues |
25,031 | 28,128 | 48,423 | 78,211 | ||||||||||||
Gross margin |
20,097 | 19,955 | 47,669 | 54,420 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling and marketing |
4,478 | 4,683 | 11,827 | 13,284 | ||||||||||||
General and administrative |
7,780 | 8,141 | 22,278 | 22,896 | ||||||||||||
Research and development |
1,250 | 1,898 | 3,177 | 5,083 | ||||||||||||
Total operating expenses |
13,508 | 14,722 | 37,282 | 41,263 | ||||||||||||
Operating income |
6,589 | 5,233 | 10,387 | 13,157 | ||||||||||||
Foreign exchange (losses) gains |
(1,745 | ) | 695 | (1,267 | ) | (580 | ) | |||||||||
Other (expense) income, net |
(199 | ) | (125 | ) | (181 | ) | (394 | ) | ||||||||
Income before income taxes |
4,645 | 5,803 | 8,939 | 12,183 | ||||||||||||
Income tax provision |
1,472 | 1,476 | 3,188 | 2,982 | ||||||||||||
Net income |
$ | 3,173 | $ | 4,327 | $ | 5,751 | $ | 9,201 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.06 | $ | 0.09 | $ | 0.12 | $ | 0.19 | ||||||||
Diluted |
$ | 0.06 | $ | 0.09 | $ | 0.12 | $ | 0.19 | ||||||||
Shares used in computing net income per share: |
||||||||||||||||
Basic |
48,860 | 49,234 | 48,789 | 49,092 | ||||||||||||
Diluted |
49,258 | 49,311 | 49,162 | 49,297 |
eResearchTechnology, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)
December 31, 2010 | September 30, 2011 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 30,343 | $ | 29,535 | ||||
Short-term investments |
50 | 50 | ||||||
Investment in marketable securities |
648 | 810 | ||||||
Accounts receivable less allowance for doubtful accounts
of $515 and $549, respectively |
37,236 | 40,456 | ||||||
Inventory |
4,698 | 10,591 | ||||||
Prepaid income taxes |
1,988 | 2,091 | ||||||
Prepaid expenses and other |
4,393 | 5,294 | ||||||
Deferred income taxes |
3,431 | 3,548 | ||||||
Total current assets |
82,787 | 92,375 | ||||||
Property and equipment, net |
42,615 | 51,761 | ||||||
Goodwill |
71,637 | 75,230 | ||||||
Intangible assets |
17,187 | 13,080 | ||||||
Other assets |
609 | 691 | ||||||
Total assets |
$ | 214,835 | $ | 233,137 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 7,136 | $ | 6,147 | ||||
Accrued expenses |
16,162 | 14,105 | ||||||
Deferred revenues |
11,670 | 13,599 | ||||||
Total current liabilities |
34,968 | 33,851 | ||||||
Deferred rent |
2,368 | 2,450 | ||||||
Deferred income taxes |
3,703 | 4,727 | ||||||
Long-term debt |
21,000 | 21,000 | ||||||
Other liabilities |
2,141 | 1,998 | ||||||
Total liabilities |
64,180 | 64,026 | ||||||
Stockholders equity: |
||||||||
Preferred stock-$10.00 par value, 500,000 shares authorized,
none issued and outstanding |
| | ||||||
Common stock-$.01 par value, 175,000,000 shares authorized,
60,460,782 and 60,837,849 shares issued, respectively |
605 | 608 | ||||||
Additional paid-in capital |
100,441 | 103,487 | ||||||
Accumulated other comprehensive (loss) income |
(1,545 | ) | 4,707 | |||||
Retained earnings |
131,037 | 140,238 | ||||||
Treasury stock, 11,589,603 and 11,596,966 shares at cost |
(79,883 | ) | (79,929 | ) | ||||
Total stockholders equity |
150,655 | 169,111 | ||||||
Total liabilities and stockholders equity |
$ | 214,835 | $ | 233,137 | ||||
eResearchTechnology, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended September 30, | ||||||||
2010 | 2011 | |||||||
Operating activities: |
||||||||
Net income |
$ | 5,751 | $ | 9,201 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||
Depreciation and amortization |
12,753 | 19,202 | ||||||
Cost of sales of equipment |
767 | 14 | ||||||
Share-based compensation |
2,048 | 2,151 | ||||||
Deferred income taxes |
(1,043 | ) | 912 | |||||
Loss on disposal of equipment |
| 862 | ||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
(6,429 | ) | (2,966 | ) | ||||
Inventory |
(984 | ) | (4,331 | ) | ||||
Prepaid expenses and other |
(640 | ) | (1,185 | ) | ||||
Accounts payable |
1,622 | (668 | ) | |||||
Accrued expenses |
5,145 | (2,096 | ) | |||||
Income taxes |
(1,125 | ) | (112 | ) | ||||
Deferred revenues |
1,153 | 1,882 | ||||||
Deferred rent |
(225 | ) | 75 | |||||
Net cash provided by operating activities |
18,793 | 22,941 | ||||||
Investing activities: |
||||||||
Purchases of property and equipment |
(15,987 | ) | (24,964 | ) | ||||
Purchases of investments |
(999 | ) | | |||||
Proceeds from sales of investments |
10,731 | | ||||||
Payments for acquisitions |
(82,789 | ) | (117 | ) | ||||
Net cash used in investing activities |
(89,044 | ) | (25,081 | ) | ||||
Financing activities: |
||||||||
Proceeds from long-term debt |
23,000 | | ||||||
Repayment of long-term debt |
(2,000 | ) | | |||||
Proceeds from exercise of stock options |
215 | 771 | ||||||
Stock option income tax benefit |
29 | 17 | ||||||
Repurchase of common stock for treasury |
| (46 | ) | |||||
Net cash provided by financing activities |
21,244 | 742 | ||||||
Effect of exchange rate changes on cash |
(639 | ) | 590 | |||||
Net decrease in cash and cash equivalents |
(49,646 | ) | (808 | ) | ||||
Cash and cash equivalents, beginning of period |
68,979 | 30,343 | ||||||
Cash and cash equivalents, end of period |
$ | 19,333 | $ | 29,535 | ||||
eResearchTechnology, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Information
(in thousands, except per share amounts)
(unaudited)
Reconciliation of GAAP to Non-GAAP Information
(in thousands, except per share amounts)
(unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2010 |
June 30, 2011 |
September 30, 2011 |
September 30, 2010 |
September 30, 2011 |
||||||||||||||||
Net revenues |
$ | 45,128 | $ | 42,849 | $ | 48,083 | $ | 96,092 | $ | 132,631 | ||||||||||
Reconciliation of GAAP to Non-GAAP gross margin: |
||||||||||||||||||||
GAAP gross margin |
$ | 20,097 | $ | 16,045 | $ | 19,955 | $ | 47,669 | $ | 54,420 | ||||||||||
Amortization of acquired intangibles and other assets |
2,451 | 1,970 | 1,926 | 3,284 | 5,774 | |||||||||||||||
Non-GAAP gross margin |
$ | 22,548 | $ | 18,015 | $ | 21,881 | $ | 50,953 | $ | 60,194 | ||||||||||
Non-GAAP gross margin percentage |
50.0 | % | 42.0 | % | 45.5 | % | 53.0 | % | 45.4 | % | ||||||||||
Non-GAAP gross margin percentage is
calculated by dividing non-GAAP gross
margin by net revenues |
||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP |
||||||||||||||||||||
operating income: |
||||||||||||||||||||
GAAP operating income |
$ | 6,589 | $ | 2,570 | $ | 5,233 | $ | 10,387 | $ | 13,157 | ||||||||||
Amortization of acquired intangibles and other assets |
2,451 | 1,970 | 1,926 | 3,284 | 5,774 | |||||||||||||||
Acquisition and integration related costs |
558 | | | 5,139 | | |||||||||||||||
Non-GAAP operating income |
$ | 9,598 | $ | 4,540 | $ | 7,159 | $ | 18,810 | $ | 18,931 | ||||||||||
Non-GAAP operating income margin percentage |
21.3 | % | 10.6 | % | 14.9 | % | 19.6 | % | 14.3 | % | ||||||||||
Non-GAAP operating income margin percentage
is calculated by dividing non-GAAP operating
income by net revenues |
||||||||||||||||||||
Reconciliation of GAAP to Non-GAAP net income: |
||||||||||||||||||||
GAAP net income |
$ | 3,173 | $ | 1,781 | $ | 4,327 | $ | 5,751 | $ | 9,201 | ||||||||||
Amortization of acquired intangibles and other assets |
2,451 | 1,970 | 1,926 | 3,284 | 5,774 | |||||||||||||||
Acquisition and integration related costs |
558 | | | 5,139 | | |||||||||||||||
Income tax effect due to Non-GAAP reconciling items
and other differences between the GAAP and
Non-GAAP effective tax rate |
(748 | ) | (754 | ) | (611 | ) | (1,846 | ) | (1,866 | ) | ||||||||||
Non-GAAP net income |
$ | 5,434 | $ | 2,997 | $ | 5,642 | $ | 12,328 | $ | 13,109 | ||||||||||
Reconciliation of GAAP to Non-GAAP diluted
net income per share: |
||||||||||||||||||||
GAAP diluted net income per share |
$ | 0.06 | $ | 0.04 | $ | 0.09 | $ | 0.12 | $ | 0.19 | ||||||||||
Amortization of acquired intangibles and other assets |
0.05 | 0.04 | 0.03 | $ | 0.07 | 0.12 | ||||||||||||||
Acquisition and integration related costs |
0.01 | | | $ | 0.10 | | ||||||||||||||
Income tax effect due to Non-GAAP reconciling items
and other differences between the GAAP and
Non-GAAP effective tax rate |
(0.01 | ) | (0.02 | ) | (0.01 | ) | $ | (0.04 | ) | (0.04 | ) | |||||||||
Non-GAAP diluted net income per share |
$ | 0.11 | $ | 0.06 | $ | 0.11 | $ | 0.25 | $ | 0.27 | ||||||||||
Shares used in computing diluted net income per share |
49,258 | 49,330 | 49,311 | 49,162 | 49,297 | |||||||||||||||
Assumed effective tax rate Non-GAAP |
29.0 | % | 27.0 | % | 27.0 | % | 29.0 | % | 27.0 | % |
Three Months | Year | |||||||||||||||
Ending December 31, 2011 | Ending December 31, 2011 | |||||||||||||||
Low Range | High Range | Low Range | High Range | |||||||||||||
Reconciliation of GAAP to Non-GAAP
diluted net income per share guidance: |
||||||||||||||||
GAAP estimate of diluted net income per share |
$ | 0.06 | $ | 0.09 | $ | 0.25 | $ | 0.28 | ||||||||
Estimated effect on diluted net income per share of: |
||||||||||||||||
Amortization of acquired intangibles and other assets |
0.03 | 0.03 | 0.15 | 0.15 | ||||||||||||
Income tax effect due to Non-GAAP reconciling items
and other differences between the GAAP and
Non-GAAP effective tax rate |
(0.01 | ) | (0.01 | ) | (0.05 | ) | (0.05 | ) | ||||||||
Non-GAAP estimate of diluted net income per share |
$ | 0.08 | $ | 0.11 | $ | 0.35 | $ | 0.38 | ||||||||
Shares used in computing estimated diluted net income per
share |
49,500 | 49,500 | 49,303 | 49,303 | ||||||||||||
Effective tax rate |
27.0 | % | 27.0 | % | 27.0 | % | 27.0 | % | ||||||||