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| 8-K - MEDIDATA SOLUTIONS, INC. 8-K - Medidata Solutions, Inc. | a50571731.htm |
Exhibit 99.1
Medidata Solutions Reports Full Year and Fourth Quarter 2012 Results
- Record application services backlog of $186 million, a 38% year-over-year increase
- Record Q4 revenue of $58.6 million, a 24% year-over-year increase
- Raises 2013 revenue guidance to between $265 and $270 million
NEW YORK--(BUSINESS WIRE)--February 21, 2013--Medidata Solutions (NASDAQ: MDSO), a leading global provider of cloud-based clinical technology solutions that enhance the efficiency of clinical development, today announced its financial results for the fourth quarter and full year 2012, and provided detailed financial guidance for the first quarter and full year 2013.
“Our stellar fourth quarter, strong execution in 2012 and accelerating growth highlight Medidata as the leading cloud-based platform provider in the life sciences industry,” said Tarek Sherif, Medidata’s chief executive officer. “The Medidata Clinical Cloud is becoming a de facto standard for life science organizations, helping them transform their clinical development activities by improving decision making and productivity. Our market is dynamic and growing with many life sciences companies emerging from a prolonged period of retrenchment, once again focused on aggressively developing new drugs. In this environment, our existing cloud offerings and ability to innovate, coupled with our customer-centric focus and great execution, position us for continued success.”
Full Year and Fourth Quarter Highlights
- Full year revenues increased to $218.3 million, up $33.9 million, or 18%, year-over-year.
- Application services backlog grew to a record $186 million, up 38% year-over-year, compared with a 23% increase for the comparable period last year.
- Non-Rave revenues increased 135% year-over-year to $31.1 million, or 14% of total revenue.
- Medidata’s customer base grew to 350 in the fourth quarter of 2012, up 27% from the end of 2011. Medidata added 28 new customers in the fourth quarter.
- At the end of 2012, 38% of customers had committed to multiple products, an increase of 46% over the previous year.
- Medidata’s revenue retention rate for the year was over 98%, with a 100% renewal rate for all enterprise customers in 2012.
- New and enhanced modules were made available in the Medidata Clinical Cloud in the fourth quarter, including new budgeting capabilities, enhanced clinical trial management system (CTMS) integrations, and new functionality for clinical supply logistics in complex studies.
Sherif added, "Our aggressive investment strategy in 2012 has changed our growth trajectory. We are starting 2013 with strong momentum based on our solid backlog and recognition that we are leading the industry in solving critical problems that help our customers plan and execute the clinical trials of the future.”
Financial Highlights
Fourth Quarter 2012 Results
Net revenues for the fourth quarter of 2012 increased 24% to $58.6 million, compared with $47.2 million in the fourth quarter of 2011. The increase in revenues was primarily due to an $11.7 million, or 32%, increase in application services revenues.
Gross margins in the fourth quarter of 2012 were in line with the company’s expectations at 72%, a decrease of 1 percentage point over gross margins of 73% a year ago.
GAAP operating income for the quarter increased to $9.3 million, compared with $0.8 million a year ago. Non-GAAP operating income* for the fourth quarter of 2012 increased to $14.0 million, compared with $11.6 million a year ago.
For the fourth quarter and full year of 2011, GAAP operating income reflected, among other items, a $6.3 million settlement of litigation. GAAP net income also included a favorable non-cash tax benefit of $19 million resulting from the reversal of the majority of the company’s tax valuation allowance. The company’s non-GAAP results excluded, among other items, the impact of the one-time charge and tax benefit.
GAAP net income for the fourth quarter of 2012 was $6.6 million, or $0.25 per diluted share, compared with $18.7 million, or $0.76 per diluted share, in the fourth quarter of 2011. Non-GAAP net income* for the fourth quarter of 2012 was $9.8 million, or $0.38 per diluted share, compared with $9.0 million, or $0.37 per diluted share, in the fourth quarter of 2011. Adjusted non-GAAP net income* for the fourth quarter of 2012 was $9.1 million, or $0.35 per diluted share, compared with $9.0 million, or $0.37 per diluted share, in the fourth quarter of 2011.
Full Year 2012 Results
Net revenues for the full year of 2012 were $218.3 million, an increase of $33.9 million, or 18%, compared with $184.5 million in 2011. The increase in revenues was the result of a $27.2 million, or 19%, increase in revenues from application services and 17% growth in professional services revenue.
Operating expenses for the full year increased 17% to $127.8 million, compared with $109.1 million in 2011 primarily due to growth related initiatives. These include increased staffing-related costs in R&D, higher sales compensation and sales-related expense, and certain charges in G&A related to higher professional fees and miscellaneous charges.
For the full year 2012, gross margins were consistent at 71% versus a year ago.
GAAP operating income for the full year of 2012 was $27.9 million, compared with $22.6 million in 2011. Non-GAAP operating income for the full year was $47.1 million, compared with $45.7 million in 2011.
GAAP net income for the full year was $18.0 million, or $0.71 per diluted share, compared with $39.4 million, or $1.60 per diluted share, in 2011. Non-GAAP net income for 2012 was $31.0 million, or $1.22 per diluted share, compared with $37.3 million, or $1.51 per diluted share, in 2011. Adjusted non-GAAP net income for 2012 was $26.4 million, or $1.03 per diluted share, compared with $37.3 million, or $1.51 per diluted share, in 2011.
Total cash, cash equivalents and marketable securities were $122.6 million at the end of the fourth quarter, an increase of $14.9 million as compared with $107.7 million at the end of the fourth quarter 2011. For the full year, the company generated cash flow from operations of $13.2 million, which was impacted by the timing of payments from certain accounts at year-end and our full effective tax rate in 2012.
Financial Outlook
For the full year 2013, the company expects:
- Revenues between $265.0 and $270.0 million.
- Professional services revenues in the high $40 million range.
- Non-GAAP operating income between $57.0 and $60.0 million. Based on current estimates, this would equate to GAAP operating income between $20.0 and $23.0 million.
- Adjusted non-GAAP net income, which includes the tax affected impact from stock-based compensation and amortization at a 40% effective tax rate, between $28.0 and $31.0 million. Based on current estimates, this would equate to GAAP net income between $10.5 and $13.5 million.
- While changes in the stock price could change the fully diluted share count, the company is assuming 26.8 million fully diluted shares.
Full year application services backlog as of January 1, 2013 increased 38% to $186 million over the comparable period a year ago. This compares with a 23% increase in full year application services backlog as of January 1, 2012 over the comparable prior period. The difference between the application services backlog and the balance of revenue guidance for the remainder of the year includes professional services revenue guidance and expected additional business from new and existing customers.
For the first quarter of 2013, the company expects:
- Revenues between $60.5 and $61.5 million.
- Non-GAAP operating income between $11.0 and $12.0 million. Based on current estimates this would equate to GAAP operating income between $4.0 and $5.0 million.
- Adjusted non-GAAP net income, which includes the tax effected impact from stock-based compensation and amortization at a 40% effective tax rate, between $5.0 and $6.0 million. Based on current estimates, this would equate to GAAP net income between $2.0 and $3.0 million.
- While changes in the stock price could change the fully diluted share count, the company is assuming 26.3 million fully diluted shares.
"Medidata’s fourth quarter and full year 2012 results clearly reflect our growing momentum in the market as we delivered strong revenue growth and solid margins, in a period of significant investment in the business," said Cory Douglas, chief financial officer. "Overall we are very pleased with our financial performance in 2012 and given our disciplined approach to investing and the large market opportunity we see ahead of us, we feel well positioned to accelerate our top line growth in 2013 in excess of our long-term target."
Conference Call
The company plans to host its investor conference call today at 8:00 a.m. Eastern. The investor conference call will be available via live webcast on the “Investor” section of Medidata’s web site at http://investor.mdsol.com. To participate by telephone, domestic participants may dial 877-303-2528 and international participants may dial 847-829-0023. Those interested in participating in the conference call should dial in at least 10 minutes prior to the call to register. Participants can also join the call via a simultaneous live audio webcast, which will be made available on the “Investor” section of Medidata’s web site at http://investor.mdsol.com. A replay of the conference call can be accessed until Thursday, March 7, 2013 by dialing 800-585-8367 domestically or 404-537-3406 internationally, with the passcode 97429808. An archive of the call will also be hosted on the “Investor” section of Medidata’s web site, http://investor.mdsol.com, for a limited period of time.
About Medidata Solutions Worldwide
Medidata Solutions is a leading global provider of cloud-based clinical development solutions that enhance the efficiency of customers’ clinical trials. Medidata’s advanced solutions lower the total cost of clinical development by optimizing clinical trials from concept to conclusion: from study and protocol design, trial planning and budgeting, site negotiation, clinical portal, trial management, randomization and trial supply management, clinical data capture and management, safety events capture, medical coding to business analytics. Our diverse life science customer base spans biopharmaceutical companies, medical device and diagnostic companies, academic and government institutions, CROs and other research organizations, and includes more than 20 of the top 25 global pharmaceutical companies as well as organizations of all sizes developing life-enhancing medical treatments and diagnostics.
Cautionary Statement
Certain statements made in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties about Medidata Solutions, Inc. (“Medidata”), including but not limited to statements about Medidata’s forecast of financial performance, products and services, business model, strategy and growth opportunities, and competitive position. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in these statements. In particular, the risks and uncertainties include, among other things, risks associated with possible fluctuations in our financial and operating results; errors, interruptions or delays in our service or our Web hosting; the financial impact of any future acquisitions; our ability to continue to release, and gain customer acceptance of, new and improved versions of our products; changes in our sales and implementation cycles; competition; our ability to retain and expand our customer base or increase new business from those customers; our ability to hire, retain and motivate our employees and manage our growth; regulatory developments; litigation; and general developments in the economy. For additional disclosure regarding these and other risks faced by the company, see disclosures contained in Medidata's public filings with the Securities and Exchange Commission including, the “Risk Factors” section of Medidata’s Annual Report on Form 10-K for the year ended December 31, 2011. You should consider these factors in evaluating the forward-looking statements included in this press release and not place undue reliance on such statements. The forward-looking statements are made as of the date hereof, and Medidata undertakes no obligation to update such statements as a result of new information.
*Non-GAAP Financial Information
Medidata provides Non-GAAP operating income, net income and net income per share applicable to common stockholders data as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. Non-GAAP operating income excludes the impact of depreciation, amortization of intangible assets associated with acquisitions, stock-based compensation expense, adjustment to the fair value of contingent consideration and a charge associated with a legal settlement. Non-GAAP net income excludes the impact of amortization of intangible assets associated with acquisitions, stock-based compensation expense, adjustment to the fair value of contingent consideration, a charge associated with a legal settlement and a reduction in its valuation allowance. Adjusted non-GAAP net income excludes the impact of tax affected amortization of intangible assets associated with acquisitions, stock-based compensation expense and adjustment to the fair value of contingent consideration. Management uses these Non-GAAP measures to evaluate its financial results, develop budgets, manage expenditures, and as an important factor in determining variable compensation. In addition, investors frequently have requested information from management regarding depreciation and amortization and non-cash, share-based compensation charges and management believes, based on discussions with investors, that these Non-GAAP measures enhance investors’ ability to assess Medidata’s historical and project future financial performance. While management believes these Non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of Non-GAAP financial measures. One limitation of Non-GAAP operating income is that it excludes depreciation and amortization, which represents the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our business. Medidata compensates for these limitations by using these Non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the Non-GAAP financial measures to their most comparable GAAP financial measures. Investors are encouraged to review the reconciliations of these Non-GAAP financial measures to the comparable GAAP results, which are attached to this press release.
| MEDIDATA SOLUTIONS, INC. | ||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (Amounts in thousands, except per share data) | ||||||||||||||||||
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
|||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| (unaudited) | ||||||||||||||||||
| Revenues | ||||||||||||||||||
| Application services | $ | 47,737 | $ | 36,064 | $ | 171,647 | $ | 144,436 | ||||||||||
| Professional services | 10,893 | 11,131 | 46,700 | 40,023 | ||||||||||||||
| Total revenues | 58,630 | 47,195 | 218,347 | 184,459 | ||||||||||||||
| Cost of revenues (1)(2) | ||||||||||||||||||
| Application services | 8,501 | 6,937 | 32,600 | 28,408 | ||||||||||||||
| Professional services | 7,872 | 5,947 | 30,062 | 24,423 | ||||||||||||||
| Total cost of revenues | 16,373 | 12,884 | 62,662 | 52,831 | ||||||||||||||
| Gross profit | 42,257 | 34,311 | 155,685 | 131,628 | ||||||||||||||
| Operating costs and expenses: | ||||||||||||||||||
| Research and development (1) | 10,454 | 8,057 | 42,276 | 29,568 | ||||||||||||||
| Sales and marketing (1)(2) | 12,946 | 9,628 | 47,739 | 36,147 | ||||||||||||||
| General and administrative (1) | 9,607 | 9,534 | 37,777 | 37,056 | ||||||||||||||
| Litigation settlement | — | 6,300 | — | 6,300 | ||||||||||||||
| Total operating costs and expenses | 33,007 | 33,519 | 127,792 | 109,071 | ||||||||||||||
| Operating income | 9,250 | 792 | 27,893 | 22,557 | ||||||||||||||
| Interest and other income (expense): | ||||||||||||||||||
| Interest expense | (18 | ) | (26 | ) | (138 | ) | (123 | ) | ||||||||||
| Interest income | 84 | 66 | 280 | 293 | ||||||||||||||
| Other income (expense), net | 51 | (4 | ) | 34 | 238 | |||||||||||||
| Total interest and other income, net | 117 | 36 | 176 | 408 | ||||||||||||||
| Income before income taxes | 9,367 | 828 | 28,069 | 22,965 | ||||||||||||||
| Provision for income taxes | 2,774 | (17,905 | ) | 10,049 | (16,433 | ) | ||||||||||||
| Net income | $ | 6,593 | $ | 18,733 | $ | 18,020 | $ | 39,398 | ||||||||||
| Earnings per share: | ||||||||||||||||||
| Basic | $ | 0.26 | $ | 0.79 | $ | 0.73 | $ | 1.67 | ||||||||||
| Diluted | $ | 0.25 | $ | 0.76 | $ | 0.71 | $ | 1.60 | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||
| Basic | 24,980 | 23,843 | 24,546 | 23,646 | ||||||||||||||
| Diluted | 25,948 | 24,616 | 25,469 | 24,657 | ||||||||||||||
| (1) Stock-based compensation expense included in cost of revenues and operating costs and expenses is as follows: | ||||||||||||||||||
| Cost of revenues | 459 | 341 | 1,751 | 1,263 | ||||||||||||||
| Research and development | 262 | 222 | 1,049 | 745 | ||||||||||||||
| Sales and marketing | 743 | 550 | 2,871 | 2,014 | ||||||||||||||
| General and administrative | 1,287 | 1,234 | 5,243 | 4,798 | ||||||||||||||
| Total stock-based compensation | $ | 2,751 | $ | 2,347 | $ | 10,914 | $ | 8,820 | ||||||||||
| (2) Amortization expense of intangible assets included in cost of revenues and operating costs and expenses is as follows: | ||||||||||||||||||
| Cost of revenues | 321 | 318 | 1,276 | 1,088 | ||||||||||||||
| Sales and marketing | 129 | 127 | 516 | 501 | ||||||||||||||
| Total amortization of intangible assets | $ | 450 | $ | 445 | $ | 1,792 | $ | 1,589 | ||||||||||
| MEDIDATA SOLUTIONS, INC. | |||||||||||||||||||
| Reconciliation of GAAP Operating Income and GAAP Net Income to | |||||||||||||||||||
| Non-GAAP Operating Income, Non-GAAP Net Income, and Adjusted Non-GAAP Net Income | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (Amounts in thousands, except per share data) | |||||||||||||||||||
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||||||||
| Operating income: | |||||||||||||||||||
| GAAP operating income | $ | 9,250 | $ | 792 | $ | 27,893 | $ | 22,557 | |||||||||||
| GAAP operating margins | 15.8 | % | 1.7 | % | 12.8 | % | 12.3 | % | |||||||||||
| Stock-based compensation | 2,751 | 2,347 | 10,914 | 8,820 | |||||||||||||||
| Depreciation and amortization | 1,937 | 1,915 | 7,934 | 7,817 | |||||||||||||||
| Contingent consideration adjustment (1) | 42 | 223 | 319 | 223 | |||||||||||||||
| Litigation settlement (2) | — | 6,300 | — | 6,300 | |||||||||||||||
| Non-GAAP operating income | $ | 13,980 | $ | 11,577 | $ | 47,060 | $ | 45,717 | |||||||||||
| Non-GAAP operating margins | 23.8 | % | 24.5 | % | 21.6 | % | 24.8 | % | |||||||||||
| Net income: | |||||||||||||||||||
| GAAP net income | $ | 6,593 | $ | 18,733 | $ | 18,020 | $ | 39,398 | |||||||||||
| Stock-based compensation | 2,751 | 2,347 | 10,914 | 8,820 | |||||||||||||||
| Amortization | 450 | 445 | 1,792 | 1,589 | |||||||||||||||
| Contingent consideration adjustment (1) | 42 | 223 | 319 | 223 | |||||||||||||||
| Litigation settlement (2) | — | 6,300 | — | 6,300 | |||||||||||||||
| Reversal of valuation allowance (3) | — | (19,037 | ) | — | (19,037 | ) | |||||||||||||
| Non-GAAP net income | 9,836 | 9,011 | 31,045 | 37,293 | |||||||||||||||
| Tax impact on add-back items (4) | (776 | ) | — | (4,689 | ) | — | |||||||||||||
| Adjusted non-GAAP net income | $ | 9,060 | $ | 9,011 | $ | 26,356 | $ | 37,293 | |||||||||||
| GAAP basic earnings per share | $ | 0.26 | $ | 0.79 | $ | 0.73 | $ | 1.67 | |||||||||||
| GAAP diluted earnings per share | $ | 0.25 | $ | 0.76 | $ | 0.71 | $ | 1.60 | |||||||||||
| Non-GAAP basic earnings per share | $ | 0.39 | $ | 0.38 | $ | 1.26 | $ | 1.58 | |||||||||||
| Non-GAAP diluted earnings per share | $ | 0.38 | $ | 0.37 | $ | 1.22 | $ | 1.51 | |||||||||||
| Adjusted Non-GAAP basic earnings per share | $ | 0.36 | $ | 0.38 | $ | 1.07 | $ | 1.58 | |||||||||||
| Adjusted Non-GAAP diluted earnings per share | $ | 0.35 | $ | 0.37 | $ | 1.03 | $ | 1.51 | |||||||||||
| (1) Amount represents the effect of changes in fair value of contingent consideration liability. | |||||||||||||||||||
| (2) Amount represents the effect of the settlement of litigation with Datasci. | |||||||||||||||||||
| (3) Amount represents the effect of tax benefit recognized as a result of the reversal of the majority of the valuation allowance. | |||||||||||||||||||
| (4) Tax impact calculated based on an annual effective tax rate of 36% for 2012. | |||||||||||||||||||
| The table above presents a reconciliation of GAAP to non-GAAP operating income, net income, and net income per share applicable to common stockholders for the three and twelve months ended December 31, 2012 and 2011. Non-GAAP operating income excludes the impact of depreciation, amortization of intangible assets associated with acquisitions, stock-based compensation expense, adjustment to the fair value of contingent consideration, and a charge associated with a legal settlement. Non-GAAP net income excludes the impact of amortization of intangible assets associated with acquisitions, stock-based compensation expense, adjustment to the fair value of contingent consideration, a charge associated with a legal settlement, and reversal of valuation allowance. Adjusted non-GAAP net income excludes the impact of tax affected amortization of intangible assets associated with acquisitions, stock-based compensation expense, and adjustment to the fair value of contingent consideration. | |||||||||||||||||||
| MEDIDATA SOLUTIONS, INC. | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (Amounts in thousands, except per share data) | ||||||||||
| December 31, | December 31, | |||||||||
| 2012 | 2011 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 32,683 | $ | 45,214 | ||||||
| Marketable securities | 89,871 | 62,463 | ||||||||
| Accounts receivable, net of allowance for doubtful accounts of $747 and $882, respectively | 42,359 | 22,970 | ||||||||
| Prepaid commission expense | 2,281 | 1,743 | ||||||||
| Prepaid expenses and other current assets | 8,042 | 4,380 | ||||||||
| Deferred income taxes | 7,465 | 10,896 | ||||||||
| Total current assets | 182,701 | 147,666 | ||||||||
| Restricted cash | 388 | 388 | ||||||||
| Furniture, fixtures and equipment, net | 10,474 | 9,825 | ||||||||
| Goodwill | 15,382 | 15,164 | ||||||||
| Intangible assets, net | 1,708 | 3,425 | ||||||||
| Deferred income taxes, long-term | 11,055 | 11,581 | ||||||||
| Other assets | 2,923 | 1,786 | ||||||||
| Total assets | $ | 224,631 | $ | 189,835 | ||||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 2,998 | $ | 3,861 | ||||||
| Accrued payroll and other compensation | 14,140 | 9,854 | ||||||||
| Accrued expenses and other | 6,674 | 5,886 | ||||||||
| Deferred revenue | 50,348 | 51,225 | ||||||||
| Capital lease obligations | 55 | 114 | ||||||||
| Total current liabilities | 74,215 | 70,940 | ||||||||
| Noncurrent liabilities: | ||||||||||
| Deferred revenue, less current portion | 4,323 | 12,037 | ||||||||
| Deferred tax liabilities | 624 | 629 | ||||||||
| Capital lease obligations, less current portion | 100 | 136 | ||||||||
| Other long-term liabilities | 3,278 | 1,976 | ||||||||
| Total noncurrent liabilities | 8,325 | 14,778 | ||||||||
| Total liabilities | 82,540 | 85,718 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' equity: | ||||||||||
| Preferred stock, par value $0.01 per share; 5,000 shares authorized, none issued and outstanding | — | — | ||||||||
| Common stock, par value $0.01 per share; 100,000 shares authorized, 26,405 and 25,053 shares issued; 26,039 and 24,888 shares outstanding, respectively | 264 | 250 | ||||||||
| Additional paid-in capital | 160,637 | 137,556 | ||||||||
| Treasury stock, 366 and 165 shares, respectively | (5,626 | ) | (2,186 | ) | ||||||
| Accumulated other comprehensive loss | (63 | ) | (362 | ) | ||||||
| Accumulated deficit | (13,121 | ) | (31,141 | ) | ||||||
| Total stockholders' equity | 142,091 | 104,117 | ||||||||
| Total liabilities and stockholders' equity | $ | 224,631 | $ | 189,835 | ||||||
| MEDIDATA SOLUTIONS, INC. | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (Amounts in thousands) | |||||||||
| Year Ended December 31, | |||||||||
| 2012 | 2011 | ||||||||
| Cash flows from operating activities: | |||||||||
| Net income | $ | 18,020 | $ | 39,398 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 7,934 | 7,817 | |||||||
| Stock-based compensation | 10,914 | 8,820 | |||||||
| Amortization of discounts or premiums on marketable securities | 1,573 | 1,290 | |||||||
| Deferred income taxes | 3,123 | (21,693 | ) | ||||||
| Amortization of debt issuance costs | 60 | 60 | |||||||
| Excess tax benefit associated with equity awards | (3,655 | ) | (3,255 | ) | |||||
| Contingent consideration adjustment | 319 | 223 | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (15,891 | ) | 12,396 | ||||||
| Prepaid commission expense | (1,426 | ) | 874 | ||||||
| Prepaid expenses and other current assets | (2,553 | ) | 1,725 | ||||||
| Other assets | (1,372 | ) | (505 | ) | |||||
| Accounts payable | (823 | ) | 885 | ||||||
| Accrued payroll and other compensation | 4,286 | (1,678 | ) | ||||||
| Accrued expenses and other | 2,226 | 4,243 | |||||||
| Deferred revenue | (11,471 | ) | (21,908 | ) | |||||
| Other long-term liabilities | 1,981 | (24 | ) | ||||||
| Net cash provided by operating activities | 13,245 | 28,668 | |||||||
| Cash flows from investing activities: | |||||||||
| Purchases of furniture, fixtures and equipment | (5,742 | ) | (4,411 | ) | |||||
| Purchases of available-for-sale marketable securities | (109,320 | ) | (117,098 | ) | |||||
| Proceeds from sale of available-for-sale marketable securities | 80,370 | 122,759 | |||||||
| Acquisition of business, net of cash acquired | — | (5,166 | ) | ||||||
| Decrease in restricted cash | — | 144 | |||||||
| Net cash used in investing activities | (34,692 | ) | (3,772 | ) | |||||
| Cash flows from financing activities: | |||||||||
| Proceeds from exercise of stock options | 9,328 | 3,475 | |||||||
| Excess tax benefit associated with equity awards | 3,655 | 3,255 | |||||||
| Payment of acquisition-related earn-out | (251 | ) | — | ||||||
| Repayment of obligations under capital leases | (268 | ) | (725 | ) | |||||
| Acquisition of treasury stock | (3,439 | ) | (1,712 | ) | |||||
| Repayment of notes payable | (113 | ) | — | ||||||
| Net cash provided by financing activities | 8,912 | 4,293 | |||||||
| Net (decrease) increase in cash and cash equivalents | (12,535 | ) | 29,189 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 4 | — | |||||||
| Cash and cash equivalents - Beginning of period | 45,214 | 16,025 | |||||||
| Cash and cash equivalents - End of period | $ | 32,683 | $ | 45,214 | |||||
CONTACT:
Investor Contact:
Medidata Solutions
Hulus Alpay,
212.419.1025
halpay@mdsol.com
or
Media Contact:
Edelman
Geoff
Curtis, 212.277.3718
geoff.curtis@edelman.com