Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Gigamon Inc. | d669572d8k.htm |
Exhibit 99.1
| MEDIA CONTACT: | INVESTOR CONTACT: | |||
| J.T. Eger | Cynthia Hiponia and Alice Kousoum | |||
| (408) 493-1247 | (408) 493-1399 | |||
| jt@gigamon.com | IR@gigamon.com |
Gigamon Reports Fourth Quarter and Fiscal Year 2013 Financial Results
Fiscal Year 2013 Revenue Growth of 45%
Silicon Valley, CALIF., February 4, 2014 – Gigamon® Inc. (NYSE:GIMO), a leader in traffic visibility solutions with the innovative Visibility Fabric™ architecture, today released financial results for the fourth quarter and fiscal year ended December 28, 2013.
Fiscal Fourth Quarter 2013 Financial Highlights:
| • | Revenues for the fourth quarter of fiscal 2013 were $43.1 million, compared to $31.9 million in the fourth quarter of fiscal 2012, representing growth of 35% year-over-year. |
| • | GAAP gross margins of 80% in the fourth quarter of fiscal 2013, compared to 79% in the fourth quarter of fiscal 2012. |
| • | Non-GAAP gross margins of 81% in the fourth quarter of fiscal 2013, compared to 79% in the fourth quarter of fiscal 2012. |
| • | GAAP net loss for the fourth quarter of fiscal 2013 was $0.1 million, or $0.00 per diluted share, compared to GAAP net income of $2.1 million, or $0.12 per diluted share, in the fourth quarter of fiscal 2012. |
| • | Non-GAAP net income for the fourth quarter of fiscal 2013 was $6.0 million, or $0.18 per diluted share, compared to non-GAAP net income of $4.9 million, or $0.28 per diluted share, in the fourth quarter of fiscal 2012. |
| • | We generated $22.5 million of cash from operations. |
Fiscal Year 2013 Financial Highlights:
| • | Revenues for fiscal year 2013 were $140.3 million, compared to $96.7 million in fiscal year 2012, representing growth of 45% year-over-year. |
| • | GAAP gross margins of 78% in fiscal year 2013, compared to 79% in fiscal year 2012. |
| • | Non-GAAP gross margins of 81% in fiscal year 2013, compared to 79% in fiscal year 2012. |
| • | GAAP net loss for fiscal year 2013 was $9.5 million, or $0.39 per diluted share, compared to GAAP net income of $3.6 million, or $0.21 per diluted share, in fiscal year 2012. |
| • | Non-GAAP net income for fiscal year 2013 was $15.9 million, or $0.53 per diluted share, compared to non-GAAP net income of $11.1 million, or $0.62 per diluted share, in fiscal year 2012. |
| • | We generated $23.6 million of cash from operations. |
“We are pleased to have exceeded our guidance for both revenue and earnings in the fourth quarter,” said Paul Hooper, CEO of Gigamon. “In the quarter we added 92 new customers, including 15 Fortune 1000 companies, continued to expand our portfolio of pervasive visibility and traffic intelligence solutions and laid the foundation for continued growth in 2014.”
Recent Business Highlights:
| • | Announced new applications and enhancements designed to provide Traffic Intelligence as the next phase of the Visibility Fabric evolution for enterprises and service providers. |
| • | Introduced a NetFlow Generation application to optimize network management. |
| • | Increased the attach rate of the GigaSMART® platform in the fourth quarter. |
| • | Named one of the fastest growing companies in North America on Deloitte’s 2013 Technology Fast 500™. |
| • | Recognized as Business Analytics Innovator of the Year by Telecom Asia’s Readers’ Choice & Innovation Awards for vision and industry leadership. |
Conference Call Information:
Gigamon will host an investor conference call and live webcast today at 5:00 p.m. ET (2:00 p.m. PT) to discuss its financial results for the fourth quarter and fiscal year ended December 28, 2013. To access the
conference call, dial 877-941-2068, using conference code 4659690. Callers outside the U.S. and Canada should dial 480-629-9712, using conference code 4659690. A replay of the conference call will be available through Tuesday, February 11, 2014. To access the replay, please dial 800-406-7325 and enter pass code 4659690. Callers outside the U.S. and Canada should dial 303-590-3030 and enter pass code 4659690. The live webcast will be accessible on Gigamon’s investor relations website at http://investor.gigamon.com and will be archived and available on this site for twelve months.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Gigamon considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by the company’s management for that purpose. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure attached to this release.
Legal Notice Regarding Forward Looking Statements
This press release contains 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. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, our expectations that in 2014 our business will continue to grow. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to deliver and improve our products and successfully develop new products; customer acceptance and purchase of our existing products and new products; our ability to retain existing customers and generate new customers; the market for network traffic visibility solutions not continuing to develop; competition from other products and services; and general market, political, economic and business conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with
the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarterly period ended September 28, 2013, filed with the Securities and Exchange Commission on November 7, 2013. The forward-looking statements in this press release are based on information available to Gigamon as of the date hereof, and Gigamon disclaims any obligation to update any forward-looking statements, except as required by law.
About the Visibility Fabric architecture
At Gigamon we realized that delivering the visibility essential to manage, analyze and secure the complex system that is the IT infrastructure requires a new approach. With millions of traffic flows across thousands of endpoints, visibility needs to be pervasive, intelligent and dynamic. Using our patented, unique technology, we created an innovative new approach for delivering this visibility called the Visibility Fabric architecture. This new approach is intelligent and versatile in its ability to enable visibility into the network. For more information visit http://www.gigamon.com/traffic-visibility-fabric.
About Gigamon
Gigamon provides an intelligent Visibility Fabric™ architecture for enterprises, data centers and service providers around the globe. Our technology empowers infrastructure architects, managers and operators with pervasive and dynamic intelligent visibility of traffic across both physical and virtual environments without affecting the performance or stability of the production network. Through patented technologies and centralized management, the Gigamon GigaVUE portfolio of high availability and high density products intelligently delivers the appropriate network traffic to management, analysis, compliance and security tools. With over eight years’ experience designing and building traffic visibility products in the US, Gigamon solutions are deployed globally across vertical markets including over half of the Fortune 100 and many government and federal agencies. www.gigamon.com
Gigamon Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| December 28, | December 31, | December 28, | December 31, | |||||||||||||
| 2013 | 2012 | 2013 (4) | 2012 | |||||||||||||
| Revenue: |
||||||||||||||||
| Product |
$ | 31,698 | $ | 23,710 | $ | 101,717 | $ | 69,516 | ||||||||
| Service |
11,389 | 8,142 | 38,578 | 27,199 | ||||||||||||
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| Total revenue |
43,087 | 31,852 | 140,295 | 96,715 | ||||||||||||
| Cost of revenue: |
||||||||||||||||
| Product (4) |
7,646 | 6,064 | 26,103 | 18,039 | ||||||||||||
| Service |
1,170 | 744 | 4,727 | 2,246 | ||||||||||||
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| Cost of revenue (1), (2) |
8,816 | 6,808 | 30,830 | 20,285 | ||||||||||||
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|||||||||
| Gross profit |
34,271 | 25,044 | 109,465 | 76,430 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Research and development (1), (2) |
10,341 | 5,406 | 42,067 | 17,730 | ||||||||||||
| Sales and marketing (1), (2) |
18,004 | 12,061 | 72,024 | 39,359 | ||||||||||||
| General and administrative (1), (2) |
4,682 | 3,904 | 25,575 | 11,665 | ||||||||||||
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| Total operating expenses |
33,027 | 21,371 | 139,666 | 68,754 | ||||||||||||
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| Income (loss) from operations |
1,244 | 3,673 | (30,201 | ) | 7,676 | |||||||||||
| Other income (expense): |
||||||||||||||||
| Interest income |
60 | 3 | 95 | 64 | ||||||||||||
| Other expense, net |
(17 | ) | (20 | ) | (94 | ) | (70 | ) | ||||||||
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| Income (loss) before income taxes |
1,287 | 3,656 | (30,200 | ) | 7,670 | |||||||||||
| Income tax (expense) benefit (3) (4) |
(1,375 | ) | (11 | ) | 20,663 | (139 | ) | |||||||||
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| Net (loss) income |
(88 | ) | 3,645 | (9,537 | ) | 7,531 | ||||||||||
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| Accretion of preferred stock |
— | (575 | ) | (1,088 | ) | (2,236 | ) | |||||||||
| (Earnings) loss attributable to preferred stock holders |
— | (980 | ) | 1,107 | (1,690 | ) | ||||||||||
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| Net (loss) income to common stock holders |
$ | (88 | ) | $ | 2,090 | $ | (9,518 | ) | $ | 3,605 | ||||||
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| Net (loss) income per share attributable to common stock holders: |
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| Basic |
$ | (0.00 | ) | $ | 0.12 | $ | (0.39 | ) | $ | 0.21 | ||||||
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| Diluted |
$ | (0.00 | ) | $ | 0.12 | $ | (0.39 | ) | $ | 0.21 | ||||||
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| Weighted-average number of shares used in per share amounts: |
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| Basic |
31,246 | 17,300 | 24,722 | 17,300 | ||||||||||||
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| Diluted |
31,246 | 17,393 | 24,722 | 17,303 | ||||||||||||
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| (1) Includes stock-based compensation expenses, as follows: |
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| Cost of revenue |
$ | 449 | $ | 19 | $ | 3,496 | $ | 153 | ||||||||
| Research and development |
2,620 | 182 | 11,467 | 542 | ||||||||||||
| Sales and marketing |
2,606 | 334 | 11,034 | 893 | ||||||||||||
| General and administrative |
1,511 | 735 | 6,546 | 2,011 | ||||||||||||
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| Total stock-based compensation expenses |
$ | 7,186 | $ | 1,270 | $ | 32,543 | $ | 3,599 | ||||||||
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| (2) Includes performance unit plan compensation expenses, as follows: |
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| Cost of revenue |
$ | — | $ | — | $ | 353 | $ | — | ||||||||
| Research and development |
— | — | 5,188 | — | ||||||||||||
| Sales and marketing |
— | — | 7,991 | — | ||||||||||||
| General and administrative |
— | — | 6,839 | — | ||||||||||||
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| Total performance unit plan compensation expenses |
$ | — | $ | — | $ | 20,371 | $ | — | ||||||||
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| (3) Includes tax benefit upon conversion of LLC to a C Corporation on May 31, 2013 |
$ | — | $ | — | $ | 14,811 | $ | — | ||||||||
| (4) | The Company has revised its financial statements for the second quarter and third quarter of fiscal 2013 to reflect certain corrections related to its accounting for income taxes and inventory reserve releases, which also impacted the Company’s results for the full fiscal year 2013. In accordance with applicable accounting guidance, the Company concluded that these corrections were not material to any of its previously issued financial statements. |
Please see the tables titled, “Impact of Revisions on Reported GAAP Statements of Operations” following the “GAAP Quarterly Trended Statements of Operations” table and “Impact of Revisions on Reported Non-GAAP Statement of Operations” following the “Non-GAAP Quarterly Trended Statement of Operations” table for further details.
Gigamon Inc.
Consolidated Balance Sheets
(In thousands)
(unaudited)
| December 28, | December 31, | |||||||
| 2013 | 2012 | |||||||
| Assets |
||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 79,908 | $ | 18,675 | ||||
| Short-term investments |
58,242 | — | ||||||
| Accounts receivable, net |
24,528 | 20,677 | ||||||
| Inventories |
1,484 | 3,736 | ||||||
| Deferred income tax asset |
3,574 | — | ||||||
| Prepaid expenses and other current assets |
5,606 | 3,407 | ||||||
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| Total current assets |
173,342 | 46,495 | ||||||
| Property and equipment, net |
4,389 | 2,686 | ||||||
| Deferred income tax asset, non-current |
17,315 | — | ||||||
| Other assets |
471 | 2,316 | ||||||
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| Total assets |
$ | 195,517 | $ | 51,497 | ||||
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| Liabilities, Preferred Stock and Stockholders’ Equity (Deficit) |
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| Current liabilities: |
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| Accounts payable |
$ | 1,405 | $ | 3,221 | ||||
| Accrued liabilities |
22,401 | 13,889 | ||||||
| Members’ distribution payable |
476 | 4,821 | ||||||
| Deferred revenue |
37,592 | 23,917 | ||||||
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| Total current liabilities |
61,874 | 45,848 | ||||||
| Deferred revenue, non-current |
9,884 | 6,903 | ||||||
| Other liabilities |
321 | 447 | ||||||
| Commitments and contingencies |
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| Series A preferred stock |
— | 28,344 | ||||||
| Stockholders’ equity (deficit): |
||||||||
| Common stock |
3 | 1,625 | ||||||
| Preferred stock |
— | — | ||||||
| Treasury stock |
(12,469 | ) | (12,469 | ) | ||||
| Additional paid in capital |
144,810 | 1,522 | ||||||
| Accumulated other comprehensive income |
23 | — | ||||||
| Accumulated deficit |
(8,929 | ) | (20,723 | ) | ||||
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| Total stockholders’ equity (deficit) |
123,438 | (30,045 | ) | |||||
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| Total liabilities, preferred stock and stockholders’ equity (deficit) |
$ | 195,517 | $ | 51,497 | ||||
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Gigamon Inc.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| December 28, 2013 |
December 31, 2012 |
December 28, 2013 |
December 31, 2012 |
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| Operating activities: |
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| Net (loss) income |
$ | (88 | ) | $ | 3,645 | $ | (9,537 | ) | $ | 7,531 | ||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||||||||||||||
| Depreciation and amortization |
886 | 476 | 2,850 | 1,354 | ||||||||||||
| Stock-based compensation expense |
7,186 | 1,270 | 32,543 | 3,599 | ||||||||||||
| Deferred income taxes |
1,293 | — | (20,889 | ) | — | |||||||||||
| Inventory (recovery) write-down |
(326 | ) | (44 | ) | (816 | ) | 1,543 | |||||||||
| Loss on disposal of fixed assets |
— | 1 | 14 | 52 | ||||||||||||
| Changes in operating assets and liabilities: |
||||||||||||||||
| Accounts receivable, net |
2,507 | (9,358 | ) | (3,851 | ) | (4,280 | ) | |||||||||
| Inventories |
896 | 1,028 | 5,103 | 3,004 | ||||||||||||
| Prepaid expenses and other assets |
(1,005 | ) | 239 | (3,274 | ) | 1,621 | ||||||||||
| Accounts payable |
(109 | ) | 1,516 | (1,752 | ) | 398 | ||||||||||
| Accrued and other liabilities |
4,757 | (943 | ) | 6,526 | 4,000 | |||||||||||
| Deferred revenue |
6,531 | 3,965 | 16,656 | 8,858 | ||||||||||||
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| Net cash provided by operating activities |
22,528 | 1,795 | 23,573 | 27,680 | ||||||||||||
| Investing activities: |
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| Purchase of short-term investments |
(19,383 | ) | — | (59,725 | ) | — | ||||||||||
| Sale of short-term investments |
2,000 | — | 2,000 | — | ||||||||||||
| Purchase of property and equipment |
(1,481 | ) | (501 | ) | (4,307 | ) | (2,006 | ) | ||||||||
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| Net cash used in investing activities |
(18,864 | ) | (501 | ) | (62,032 | ) | (2,006 | ) | ||||||||
| Financing activities: |
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| (Offering costs paid for) proceeds from initial public offering, net |
(111 | ) | (1,348 | ) | 95,280 | (1,920 | ) | |||||||||
| Proceeds from follow-on public offering, net |
10,232 | — | 10,232 | — | ||||||||||||
| Proceeds from exercise of stock options |
1,608 | — | 1,719 | — | ||||||||||||
| Shares repurchased for tax withholdings on vesting of restricted stock units |
(518 | ) | — | (518 | ) | — | ||||||||||
| Distribution of income to LLC members |
(24 | ) | (4,981 | ) | (7,021 | ) | (18,181 | ) | ||||||||
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| Net cash provided by (used in) financing activities |
11,187 | (6,329 | ) | 99,692 | (20,101 | ) | ||||||||||
| Net increase (decrease) in cash and cash equivalents |
14,851 | (5,035 | ) | 61,233 | 5,573 | |||||||||||
| Cash and cash equivalents at beginning of period |
65,057 | 23,710 | 18,675 | 13,102 | ||||||||||||
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| Cash and cash equivalents at end of period |
$ | 79,908 | $ | 18,675 | $ | 79,908 | $ | 18,675 | ||||||||
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Gigamon Inc.
Reconciliation of Non-GAAP Financial Measures
Impact of Non-GAAP Adjustments on Reported Net (Loss) Income
(In thousands, except percentages)
(unaudited)
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| December 28, | December 31, | December 28, | December 31, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Reconciliation of Gross Profit and Gross Margin on a GAAP Basis to Gross Profit and Gross Margin on a Non-GAAP Basis: |
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| Gross profit on a GAAP basis |
$ | 34,271 | $ | 25,044 | $ | 109,465 | $ | 76,430 | ||||||||
| Stock-based compensation expense |
449 | 19 | 3,496 | 153 | ||||||||||||
| Performance unit plan compensation expense |
— | — | 353 | — | ||||||||||||
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| Gross profit on a Non-GAAP basis |
$ | 34,720 | $ | 25,063 | $ | 113,314 | $ | 76,583 | ||||||||
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| Revenue |
$ | 43,087 | $ | 31,852 | $ | 140,295 | $ | 96,715 | ||||||||
| Gross margin on a GAAP basis |
80 | % | 79 | % | 78 | % | 79 | % | ||||||||
| Gross margin on a Non-GAAP basis |
81 | % | 79 | % | 81 | % | 79 | % | ||||||||
| Reconciliation of Operating Income (Loss) and Operating Margin on a GAAP Basis to Operating Income and Operating Margin on a Non-GAAP Basis: |
||||||||||||||||
| Operating income (loss) on a GAAP basis |
$ | 1,244 | $ | 3,673 | $ | (30,201 | ) | $ | 7,676 | |||||||
| Stock-based compensation expense |
7,186 | 1,270 | 32,543 | 3,599 | ||||||||||||
| Performance unit plan compensation expense |
— | — | 20,371 | — | ||||||||||||
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| Operating income on a Non-GAAP basis |
$ | 8,430 | $ | 4,943 | $ | 22,713 | $ | 11,275 | ||||||||
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| Operating margin on a GAAP basis |
3 | % | 12 | % | -22 | % | 8 | % | ||||||||
| Operating margin on a Non-GAAP basis |
20 | % | 16 | % | 16 | % | 12 | % | ||||||||
| Reconciliation of Net (Loss) Income Attributable To Common Stockholders on a GAAP Basis to Net Income Attributable To Common Stockholders on a Non-GAAP Basis: |
||||||||||||||||
| Net (loss) income attributable to common stock holders on a GAAP basis |
$ | (88 | ) | $ | 2,090 | $ | (9,518 | ) | $ | 3,605 | ||||||
| Accretion of preferred stock |
— | 575 | 1,088 | 2,236 | ||||||||||||
| Earnings (loss) attributable to preferred stock holders |
— | 980 | (1,107 | ) | 1,690 | |||||||||||
| Stock-based compensation expense |
7,186 | 1,270 | 32,543 | 3,599 | ||||||||||||
| Performance unit plan compensation expense |
— | — | 20,371 | — | ||||||||||||
| Tax benefit upon conversion of LLC to a C Corporation |
— | — | 14,811 | — | ||||||||||||
| Income tax effect of Non-GAAP adjustments |
(1,128 | ) | — | (42,295 | ) | — | ||||||||||
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| Net income on a Non-GAAP basis |
$ | 5,970 | $ | 4,915 | $ | 15,893 | $ | 11,130 | ||||||||
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Gigamon Inc.
Reconciliation of Non-GAAP Financial Measures (continued)
Impact of Non-GAAP Adjustments on Reported Net (Loss) Income
(In thousands, except per share data)
(unaudited)
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| December 28, | December 31, | December 28, | December 31, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Reconciliation of Diluted Net (Loss) Income per Share on a GAAP Basis to Diluted Net Income per Share on a Non-GAAP Basis: |
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| Diluted net (loss) income per share on a GAAP basis |
$ | (0.00 | ) | $ | 0.12 | $ | (0.39 | ) | $ | 0.21 | ||||||
| Accretion of preferred stock |
— | 0.03 | 0.04 | 0.13 | ||||||||||||
| Earnings (loss) attributable to preferred stock holders |
— | 0.06 | (0.04 | ) | 0.10 | |||||||||||
| Stock-based compensation expense |
0.23 | 0.07 | 1.32 | 0.21 | ||||||||||||
| Performance unit plan compensation expense |
— | — | 0.82 | — | ||||||||||||
| Tax benefit upon conversion of LLC to a C corporation |
— | — | 0.60 | — | ||||||||||||
| Income tax effect on non-GAAP adjustments |
(0.04 | ) | — | (1.71 | ) | — | ||||||||||
| Impact of difference in number of GAAP and non-GAAP diluted shares |
(0.01 | ) | — | (0.11 | ) | (0.03 | ) | |||||||||
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|||||||||
| Diluted net income per share on a Non-GAAP basis |
$ | 0.18 | $ | 0.28 | $ | 0.53 | $ | 0.62 | ||||||||
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|||||||||
| Reconciliation of GAAP Diluted Weighted-Average Number of Shares to Non-GAAP Diluted Weighted-Average Number of Shares: |
||||||||||||||||
| GAAP diluted weighted-average number of shares |
31,246 | 17,393 | 24,722 | 17,303 | ||||||||||||
| Dilutive impact due to stock options, restricted stock units and employee stock purchase plan purchase rights |
2,100 | 214 | 5,323 | 570 | ||||||||||||
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| Non-GAAP diluted weighted-average number of shares |
33,346 | 17,607 | 30,045 | 17,873 | ||||||||||||
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Gigamon Inc.
Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations
Impact of Non-GAAP Adjustments on Reported Net (Loss) Income
For the Three Months and Fiscal Years Ended December 28, 2013 and December 31, 2012
(In thousands, except per share amounts and percentages)
(unaudited)
| Three Months Ended December 28, 2013 |
Three Months Ended December 31, 2012 |
Fiscal Year Ended December 28, 2013 |
Fiscal Year Ended December 31, 2012 |
|||||||||||||||||||||||||||||||||||||||||||||
| As Reported |
Adjustments | Non-GAAP | As Reported |
Adjustments | Non-GAAP | As Reported |
Adjustments | Non-GAAP | As Reported |
Adjustments | Non-GAAP | |||||||||||||||||||||||||||||||||||||
| Revenue: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Product |
$ | 31,698 | $ | — | $ | 31,698 | $ | 23,710 | $ | — | $ | 23,710 | $ | 101,717 | $ | — | $ | 101,717 | $ | 69,516 | $ | — | $ | 69,516 | ||||||||||||||||||||||||
| Service |
11,389 | — | 11,389 | 8,142 | — | 8,142 | 38,578 | — | 38,578 | 27,199 | — | 27,199 | ||||||||||||||||||||||||||||||||||||
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| Total revenue |
43,087 | — | 43,087 | 31,852 | — | 31,852 | 140,295 | — | 140,295 | 96,715 | — | 96,715 | ||||||||||||||||||||||||||||||||||||
| Cost of revenue: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Product (1), (2) |
7,646 | (215 | ) | 7,431 | 6,064 | (9 | ) | 6,055 | 26,103 | (2,308 | ) | 23,795 | 18,039 | (44 | ) | 17,995 | ||||||||||||||||||||||||||||||||
| Service (1), (2) |
1,170 | (234 | ) | 936 | 744 | (10 | ) | 734 | 4,727 | (1,541 | ) | 3,186 | 2,246 | (109 | ) | 2,137 | ||||||||||||||||||||||||||||||||
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| Cost of revenue |
8,816 | (449 | ) | 8,367 | 6,808 | (19 | ) | 6,789 | 30,830 | (3,849 | ) | 26,981 | 20,285 | (153 | ) | 20,132 | ||||||||||||||||||||||||||||||||
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| Gross profit |
34,271 | 449 | 34,720 | 25,044 | 19 | 25,063 | 109,465 | 3,849 | 113,314 | 76,430 | 153 | 76,583 | ||||||||||||||||||||||||||||||||||||
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| Product Gross Margin |
76 | % | 77 | % | 74 | % | 74 | % | 74 | % | 77 | % | 74 | % | 74 | % | ||||||||||||||||||||||||||||||||
| Service Gross Margin |
90 | % | 92 | % | 91 | % | 91 | % | 88 | % | 92 | % | 92 | % | 92 | % | ||||||||||||||||||||||||||||||||
| Total Gross Margin |
80 | % | 81 | % | 79 | % | 79 | % | 78 | % | 81 | % | 79 | % | 79 | % | ||||||||||||||||||||||||||||||||
| Operating expenses: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Research and development (1), (2) |
10,341 | (2,620 | ) | 7,721 | 5,406 | (182 | ) | 5,224 | 42,067 | (16,655 | ) | 25,412 | 17,730 | (542 | ) | 17,188 | ||||||||||||||||||||||||||||||||
| Sales and marketing (1), (2) |
18,004 | (2,606 | ) | 15,398 | 12,061 | (334 | ) | 11,727 | 72,024 | (19,025 | ) | 52,999 | 39,359 | (893 | ) | 38,466 | ||||||||||||||||||||||||||||||||
| General and administrative (1), (2) |
4,682 | (1,511 | ) | 3,171 | 3,904 | (735 | ) | 3,169 | 25,575 | (13,385 | ) | 12,190 | 11,665 | (2,011 | ) | 9,654 | ||||||||||||||||||||||||||||||||
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| Total operating expenses |
33,027 | (6,737 | ) | 26,290 | 21,371 | (1,251 | ) | 20,120 | 139,666 | (49,065 | ) | 90,601 | 68,754 | (3,446 | ) | 65,308 | ||||||||||||||||||||||||||||||||
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| Income (loss) from operations |
1,244 | 7,186 | 8,430 | 3,673 | 1,270 | 4,943 | (30,201 | ) | 52,914 | 22,713 | 7,676 | 3,599 | 11,275 | |||||||||||||||||||||||||||||||||||
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| Other income (expense): |
||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income |
60 | — | 60 | 3 | — | 3 | 95 | — | 95 | 64 | — | 64 | ||||||||||||||||||||||||||||||||||||
| Other expense, net |
(17 | ) | — | (17 | ) | (20 | ) | — | (20 | ) | (94 | ) | — | (94 | ) | (70 | ) | — | (70 | ) | ||||||||||||||||||||||||||||
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| Income (loss) before income taxes |
1,287 | 7,186 | 8,473 | 3,656 | 1,270 | 4,926 | (30,200 | ) | 52,914 | 22,714 | 7,670 | 3,599 | 11,269 | |||||||||||||||||||||||||||||||||||
| Income tax (expense) benefit (3), (4) |
(1,375 | ) | (1,128 | ) | (2,503 | ) | (11 | ) | — | (11 | ) | 20,663 | (27,484 | ) | (6,821 | ) | (139 | ) | — | (139 | ) | |||||||||||||||||||||||||||
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| Net (loss) income |
(88 | ) | 6,058 | 5,970 | 3,645 | 1,270 | 4,915 | (9,537 | ) | 25,430 | 15,893 | 7,531 | 3,599 | 11,130 | ||||||||||||||||||||||||||||||||||
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| Accretion of preferred stock |
— | — | — | (575 | ) | 575 | — | (1,088 | ) | 1,088 | — | (2,236 | ) | 2,236 | — | |||||||||||||||||||||||||||||||||
| (Earnings) loss attributable to preferred stock holders |
— | — | — | (980 | ) | 980 | — | 1,107 | (1,107 | ) | — | (1,690 | ) | 1,690 | — | |||||||||||||||||||||||||||||||||
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| Net (loss) income to common stock holders |
$ | (88 | ) | $ | 6,058 | $ | 5,970 | $ | 2,090 | $ | 2,825 | $ | 4,915 | $ | (9,518 | ) | $ | 25,411 | $ | 15,893 | $ | 3,605 | $ | 7,525 | $ | 11,130 | ||||||||||||||||||||||
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| Net (loss) income per share attributable to common stockholders: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Basic |
$ | (0.00 | ) | $ | 0.19 | $ | 0.19 | $ | 0.12 | $ | 0.16 | $ | 0.28 | $ | (0.39 | ) | $ | 1.03 | $ | 0.64 | $ | 0.21 | $ | 0.43 | $ | 0.64 | ||||||||||||||||||||||
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| Diluted |
$ | (0.00 | ) | $ | 0.18 | $ | 0.18 | $ | 0.12 | $ | 0.16 | $ | 0.28 | $ | (0.39 | ) | $ | 0.92 | $ | 0.53 | $ | 0.21 | $ | 0.41 | $ | 0.62 | ||||||||||||||||||||||
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| Weighted-average number of shares used in per share amounts: |
||||||||||||||||||||||||||||||||||||||||||||||||
| Basic |
31,246 | — | 31,246 | 17,300 | — | 17,300 | 24,722 | — | 24,722 | 17,300 | — | 17,300 | ||||||||||||||||||||||||||||||||||||
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| Diluted |
31,246 | 2,100 | 33,346 | 17,393 | 214 | 17,607 | 24,722 | 5,323 | 30,045 | 17,303 | 570 | 17,873 | ||||||||||||||||||||||||||||||||||||
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|||||||||||||||||||||||||
| Notes: |
| (1) | Includes stock-based compensation in the three and twelve months ended December 28, 2013 and December 31, 2012. |
| (2) | Includes performance unit plan compensation related expenses in the twelve months ended December 28, 2013. |
| (3) | Amount for the twelve months ended December 28, 2013 includes tax benefit recorded upon the conversion from an LLC to a C Corporation on May 31, 2013. |
| (4) | Includes income tax effect on non-GAAP adjustments for the three and twelve months ended December 28, 2013. |
Gigamon Inc.
GAAP Quarterly Trended Statements of Operations
(In thousands, except per share data and percentages)
(unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Dec 28, 2013 | Sept 28, 2013 | June 29, 2013 | Mar 30, 2013 | Dec 31, 2012 | Sept 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||||||||||||||||||||
| Revenue |
||||||||||||||||||||||||||||||||
| Product |
$ | 31,698 | $ | 29,146 | $ | 23,354 | $ | 17,519 | $ | 23,710 | $ | 18,700 | $ | 16,213 | $ | 10,893 | ||||||||||||||||
| Service |
11,389 | 9,840 | 9,055 | 8,294 | 8,142 | 6,994 | 6,254 | 5,809 | ||||||||||||||||||||||||
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|||||||||||||||||
| Total Revenue |
43,087 | 38,986 | 32,409 | 25,813 | 31,852 | 25,694 | 22,467 | 16,702 | ||||||||||||||||||||||||
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| Cost of Revenue |
||||||||||||||||||||||||||||||||
| Product |
7,646 | 6,789 | 6,944 | 4,724 | 6,064 | 4,524 | 4,086 | 3,365 | ||||||||||||||||||||||||
| Service |
1,170 | 993 | 1,911 | 653 | 744 | 557 | 453 | 492 | ||||||||||||||||||||||||
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|||||||||||||||||
| Total Cost of Revenue |
8,816 | 7,782 | 8,855 | 5,377 | 6,808 | 5,081 | 4,539 | 3,857 | ||||||||||||||||||||||||
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| Gross Profit |
34,271 | 31,204 | 23,554 | 20,436 | 25,044 | 20,613 | 17,928 | 12,845 | ||||||||||||||||||||||||
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| Product gross margin |
76 | % | 77 | % | 70 | % | 73 | % | 74 | % | 76 | % | 75 | % | 69 | % | ||||||||||||||||
| Service gross margin |
90 | % | 90 | % | 79 | % | 92 | % | 91 | % | 92 | % | 93 | % | 92 | % | ||||||||||||||||
| Gross Margin |
80 | % | 80 | % | 73 | % | 79 | % | 79 | % | 80 | % | 80 | % | 77 | % | ||||||||||||||||
| Operating Expenses |
||||||||||||||||||||||||||||||||
| Research & Development |
10,341 | 8,958 | 17,097 | 5,671 | 5,406 | 4,809 | 3,570 | 3,945 | ||||||||||||||||||||||||
| Sales & Marketing |
18,004 | 15,485 | 26,114 | 12,421 | 12,061 | 9,963 | 9,112 | 8,223 | ||||||||||||||||||||||||
| General and Administrative |
4,682 | 4,696 | 12,688 | 3,509 | 3,904 | 3,720 | 2,735 | 1,306 | ||||||||||||||||||||||||
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| Total Operating Expenses |
33,027 | 29,139 | 55,899 | 21,601 | 21,371 | 18,492 | 15,417 | 13,474 | ||||||||||||||||||||||||
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| Income (Loss) From Operations |
1,244 | 2,065 | (32,345 | ) | (1,165 | ) | 3,673 | 2,121 | 2,511 | (629 | ) | |||||||||||||||||||||
| Operating Margin |
3 | % | 5 | % | -100 | % | -5 | % | 12 | % | 8 | % | 11 | % | -4 | % | ||||||||||||||||
| Interest Income |
60 | 32 | 1 | 2 | 3 | 55 | 3 | 3 | ||||||||||||||||||||||||
| Other Expense, Net |
(17 | ) | (52 | ) | (18 | ) | (7 | ) | (20 | ) | (17 | ) | (7 | ) | (26 | ) | ||||||||||||||||
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| Income before income tax (provision) benefit |
1,287 | 2,045 | (32,362 | ) | (1,170 | ) | 3,656 | 2,159 | 2,507 | (652 | ) | |||||||||||||||||||||
| Income Tax (Provision) Benefit |
(1,375 | ) | (502 | ) | 22,569 | (29 | ) | (11 | ) | (37 | ) | (28 | ) | (63 | ) | |||||||||||||||||
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| Net (Loss) Income |
(88 | ) | 1,543 | (9,793 | ) | (1,199 | ) | 3,645 | 2,122 | 2,479 | (715 | ) | ||||||||||||||||||||
| Accretion of preferred stock |
— | — | (503 | ) | (585 | ) | (575 | ) | (564 | ) | (553 | ) | (544 | ) | ||||||||||||||||||
| Loss (earnings) distributable to preferred unit holders |
— | — | 538 | 569 | (980 | ) | (497 | ) | (615 | ) | 402 | |||||||||||||||||||||
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| Net (loss) income attributable to common stockholders |
$ | (88 | ) | $ | 1,543 | $ | (9,758 | ) | $ | (1,215 | ) | $ | 2,090 | $ | 1,061 | $ | 1,311 | $ | (857 | ) | ||||||||||||
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| Net (loss) income per share attributable to common stockholders: |
||||||||||||||||||||||||||||||||
| Basic |
$ | (0.00 | ) | $ | 0.05 | $ | (0.51 | ) | $ | (0.07 | ) | $ | 0.12 | $ | 0.06 | $ | 0.08 | $ | (0.05 | ) | ||||||||||||
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| Diluted |
$ | (0.00 | ) | $ | 0.05 | $ | (0.51 | ) | $ | (0.07 | ) | $ | 0.12 | $ | 0.06 | $ | 0.08 | $ | (0.05 | ) | ||||||||||||
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| Weighted average shares used in computing net (loss) income per share attributable to common stockholders: |
||||||||||||||||||||||||||||||||
| Basic |
31,246 | 30,933 | 19,247 | 17,300 | 17,300 | 17,300 | 17,300 | 17,300 | ||||||||||||||||||||||||
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| Diluted |
31,246 | 32,554 | 19,247 | 17,300 | 17,393 | 17,307 | 17,300 | 17,300 | ||||||||||||||||||||||||
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Gigamon Inc.
Impact of Revisions on Reported GAAP Statements of Operations
For the Three Months Ended June 29, 2013 and September 28, 2013
(In thousands, except per share amounts and percentages)
(unaudited)
Explanatory Note:
The Company’s financial statements for the second and third quarters of fiscal 2013 have been revised to reflect certain corrections related to its accounting for income taxes and inventory reserve releases. In accordance with applicable accounting guidance, the Company has concluded that these corrections were not material to any of its previously issued financial statements. As a result of these corrections, the Company has revised its results for the second and third quarters of fiscal 2013 as set forth below:
| Three Months Ended June 29, 2013 | Three Months Ended September 28, 2013 | |||||||||||||||||||||||||||||||
| As Reported |
Income Tax Adjustment |
Inventory Adjustment |
As Adjusted | As Reported | Income Tax Adjustment |
Inventory Adjustment |
As Adjusted | |||||||||||||||||||||||||
| Revenue: |
||||||||||||||||||||||||||||||||
| Product |
$ | 23,354 | $ | 23,354 | $ | 29,146 | $ | 29,146 | ||||||||||||||||||||||||
| Service |
9,055 | 9,055 | 9,840 | 9,840 | ||||||||||||||||||||||||||||
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|||||||||||||||||
| Total revenue |
32,409 | — | — | 32,409 | 38,986 | — | — | 38,986 | ||||||||||||||||||||||||
| Cost of revenue: |
||||||||||||||||||||||||||||||||
| Product |
7,098 | (154 | ) | 6,944 | 6,744 | 45 | 6,789 | |||||||||||||||||||||||||
| Service |
1,911 | 1,911 | 993 | 993 | ||||||||||||||||||||||||||||
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| Cost of revenue |
9,009 | — | (154 | ) | 8,855 | 7,737 | — | 45 | 7,782 | |||||||||||||||||||||||
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| Gross profit |
23,400 | — | 154 | 23,554 | 31,249 | — | (45 | ) | 31,204 | |||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Product Gross Margin |
70 | % | 70 | % | 77 | % | 77 | % | ||||||||||||||||||||||||
| Service Gross Margin |
79 | % | 79 | % | 90 | % | 90 | % | ||||||||||||||||||||||||
| Total Gross Margin |
72 | % | 73 | % | 80 | % | 80 | % | ||||||||||||||||||||||||
| Operating expenses: |
||||||||||||||||||||||||||||||||
| Research and development |
17,097 | 17,097 | 8,958 | 8,958 | ||||||||||||||||||||||||||||
| Sales and marketing |
26,114 | 26,114 | 15,485 | 15,485 | ||||||||||||||||||||||||||||
| General and administrative |
12,688 | 12,688 | 4,696 | 4,696 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total operating expenses |
55,899 | — | — | 55,899 | 29,139 | — | — | 29,139 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (Loss) income from operations |
(32,499 | ) | — | 154 | (32,345 | ) | 2,110 | — | (45 | ) | 2,065 | |||||||||||||||||||||
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||
| Other income (expense): |
||||||||||||||||||||||||||||||||
| Interest income |
1 | 1 | 32 | 32 | ||||||||||||||||||||||||||||
| Other expense, net |
(18 | ) | (18 | ) | (52 | ) | (52 | ) | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (Loss) income before income taxes |
(32,516 | ) | — | 154 | (32,362 | ) | 2,090 | — | (45 | ) | 2,045 | |||||||||||||||||||||
| Income tax benefit (expense) |
24,571 | (2,002 | ) | 22,569 | (704 | ) | 202 | (502 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net (loss) income |
(7,945 | ) | (2,002 | ) | 154 | (9,793 | ) | 1,386 | 202 | (45 | ) | 1,543 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Accretion of preferred stock |
(503 | ) | (503 | ) | — | — | ||||||||||||||||||||||||||
| (Earnings) loss attributable to preferred stock holders |
538 | 538 | — | — | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net (loss) income to common stock holders |
$ | (7,910 | ) | $ | (2,002 | ) | $ | 154 | $ | (9,758 | ) | $ | 1,386 | $ | 202 | $ | (45 | ) | $ | 1,543 | ||||||||||||
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|
|
|
|||||||||||||||||
| Net (loss) income per share attributable to common stockholders: |
||||||||||||||||||||||||||||||||
| Basic |
$ | (0.41 | ) | $ | (0.51 | ) | $ | 0.04 | $ | 0.05 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Diluted |
$ | (0.41 | ) | $ | (0.51 | ) | $ | 0.04 | $ | 0.05 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Weighted-average number of shares used in per share amounts: |
||||||||||||||||||||||||||||||||
| Basic |
19,247 | 19,247 | 30,933 | 30,933 | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
| Diluted |
19,247 | 19,247 | 32,554 | 32,554 | ||||||||||||||||||||||||||||
|
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|
|
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|
|
|
|||||||||||||||||||||||||
Gigamon Inc.
Non-GAAP Quarterly Trended Statements of Operations
(In thousands, except per share data and percentages)
(unaudited)
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Dec 28, 2013 | Sept 28, 2013 | June 29, 2013 | Mar 30, 2013 | Dec 31, 2012 | Sept 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||||||||||||||||||||
| Revenue: |
||||||||||||||||||||||||||||||||
| Product |
$ | 31,698 | $ | 29,146 | $ | 23,354 | $ | 17,519 | $ | 23,710 | $ | 18,700 | $ | 16,213 | $ | 10,893 | ||||||||||||||||
| Services |
11,389 | 9,840 | 9,055 | 8,294 | 8,142 | 6,994 | 6,254 | 5,809 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total revenue |
43,087 | 38,986 | 32,409 | 25,813 | 31,852 | 25,694 | 22,467 | 16,702 | ||||||||||||||||||||||||
| Cost of revenue: |
||||||||||||||||||||||||||||||||
| Product |
7,431 | 6,660 | 4,992 | 4,712 | 6,055 | 4,491 | 4,084 | 3,365 | ||||||||||||||||||||||||
| Services |
936 | 782 | 819 | 649 | 734 | 458 | 453 | 492 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total cost of revenue |
8,367 | 7,442 | 5,811 | 5,361 | 6,789 | 4,949 | 4,537 | 3,857 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Gross profit |
34,720 | 31,544 | 26,598 | 20,452 | 25,063 | 20,745 | 17,930 | 12,845 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Product Gross Margin |
77 | % | 77 | % | 79 | % | 73 | % | 74 | % | 76 | % | 75 | % | 69 | % | ||||||||||||||||
| Services Gross Margin |
92 | % | 92 | % | 91 | % | 92 | % | 91 | % | 93 | % | 93 | % | 92 | % | ||||||||||||||||
| Gross margin |
81 | % | 81 | % | 82 | % | 79 | % | 79 | % | 81 | % | 80 | % | 77 | % | ||||||||||||||||
| Research and development |
7,721 | 6,490 | 5,840 | 5,361 | 5,224 | 4,481 | 3,538 | 3,945 | ||||||||||||||||||||||||
| Sales and marketing |
15,398 | 12,750 | 12,860 | 11,991 | 11,727 | 9,490 | 9,026 | 8,223 | ||||||||||||||||||||||||
| General and administrative |
3,171 | 3,172 | 3,175 | 2,672 | 3,169 | 2,960 | 2,219 | 1,306 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total operating expenses |
26,290 | 22,412 | 21,875 | 20,024 | 20,120 | 16,931 | 14,783 | 13,474 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income from operations |
8,430 | 9,132 | 4,723 | 428 | 4,943 | 3,814 | 3,147 | (629 | ) | |||||||||||||||||||||||
| Operating margin |
20 | % | 23 | % | 15 | % | 2 | % | 16 | % | 15 | % | 14 | % | -4 | % | ||||||||||||||||
| Interest income |
60 | 32 | 1 | 2 | 3 | 55 | 3 | 3 | ||||||||||||||||||||||||
| Other expense, net |
(17 | ) | (52 | ) | (18 | ) | (7 | ) | (20 | ) | (17 | ) | (7 | ) | (26 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Income before provision for income taxes |
8,473 | 9,112 | 4,706 | 423 | 4,926 | 3,852 | 3,143 | (652 | ) | |||||||||||||||||||||||
| Income tax provision |
(2,503 | ) | (3,374 | ) | (915 | ) | (29 | ) | (11 | ) | (37 | ) | (28 | ) | (63 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net income |
$ | 5,970 | $ | 5,738 | $ | 3,791 | $ | 394 | $ | 4,915 | $ | 3,815 | $ | 3,115 | $ | (715 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Basic EPS |
$ | 0.19 | $ | 0.19 | $ | 0.20 | $ | 0.02 | $ | 0.28 | $ | 0.22 | $ | 0.18 | $ | (0.04 | ) | |||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Diluted EPS |
$ | 0.18 | $ | 0.18 | $ | 0.14 | $ | 0.02 | $ | 0.28 | $ | 0.22 | $ | 0.18 | $ | (0.04 | ) | |||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Weighted Average Shares for Basic EPS |
31,246 | 30,933 | 19,247 | 17,300 | 17,300 | 17,300 | 17,300 | 17,300 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Weighted Average Shares for Diluted EPS |
33,346 | 32,777 | 27,456 | 17,883 | 17,607 | 17,541 | 17,413 | 17,300 | ||||||||||||||||||||||||
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|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||
Gigamon Inc.
Impact of Revisions on Reported Non-GAAP Statements of Operations
For the Three Months Ended June 29, 2013 and September 28, 2013
(In thousands, except per share amounts and percentages)
(unaudited)
Explanatory Note:
The Company’s financial statements for the second and third quarters of fiscal 2013 have been revised to reflect certain corrections related to its accounting for inventory reserve releases. In accordance with applicable accounting guidance, the Company has concluded that these corrections were not material to any of its previously reported Non-GAAP financial statements. As a result of these corrections, the Company has revised its Non-GAAP results for the second and third quarters of fiscal 2013 as set forth below:
| Three Months Ended June 29, 2013 | Three Months Ended September 28, 2013 | |||||||||||||||||||||||
| As Reported | Inventory Adjustment |
As Adjusted | As Reported | Inventory Adjustment |
As Adjusted | |||||||||||||||||||
| Revenue: |
||||||||||||||||||||||||
| Product |
$ | 23,354 | $ | 23,354 | $ | 29,146 | $ | 29,146 | ||||||||||||||||
| Service |
9,055 | 9,055 | 9,840 | 9,840 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total revenue |
32,409 | — | 32,409 | 38,986 | — | 38,986 | ||||||||||||||||||
| Cost of revenue: |
||||||||||||||||||||||||
| Product |
5,146 | (154 | ) | 4,992 | 6,615 | 45 | 6,660 | |||||||||||||||||
| Service |
819 | 819 | 782 | 782 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Cost of revenue |
5,965 | (154 | ) | 5,811 | 7,397 | 45 | 7,442 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Gross profit |
26,444 | 154 | 26,598 | 31,589 | (45 | ) | 31,544 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Product Gross Margin |
78 | % | 79 | % | 77 | % | 77 | % | ||||||||||||||||
| Service Gross Margin |
91 | % | 91 | % | 92 | % | 92 | % | ||||||||||||||||
| Total Gross Margin |
82 | % | 82 | % | 81 | % | 81 | % | ||||||||||||||||
| Operating expenses: |
||||||||||||||||||||||||
| Research and development |
5,840 | 5,840 | 6,490 | 6,490 | ||||||||||||||||||||
| Sales and marketing |
12,860 | 12,860 | 12,750 | 12,750 | ||||||||||||||||||||
| General and administrative |
3,175 | 3,175 | 3,172 | 3,172 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total operating expenses |
21,875 | — | 21,875 | 22,412 | — | 22,412 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income (loss) from operations |
4,569 | 154 | 4,723 | 9,177 | (45 | ) | 9,132 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Other income (expense): |
||||||||||||||||||||||||
| Interest income |
1 | 1 | 32 | 32 | ||||||||||||||||||||
| Other expense, net |
(18 | ) | (18 | ) | (52 | ) | (52 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income (Loss) before income taxes |
4,552 | 154 | 4,706 | 9,157 | (45 | ) | 9,112 | |||||||||||||||||
| Income tax expense |
(915 | ) | (915 | ) | (3,374 | ) | (3,374 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income (loss) |
3,637 | 154 | 3,791 | 5,783 | (45 | ) | 5,738 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Accretion of preferred stock |
— | — | — | — | ||||||||||||||||||||
| (Earnings) loss attributable to preferred stock holders |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income (loss) to common stock holders |
$ | 3,637 | $ | 154 | $ | 3,791 | $ | 5,783 | $ | (45 | ) | $ | 5,738 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income per share attributable to common stockholders: |
||||||||||||||||||||||||
| Basic |
$ | 0.19 | $ | 0.20 | $ | 0.19 | $ | 0.19 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Diluted |
$ | 0.13 | $ | 0.14 | $ | 0.18 | $ | 0.18 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Weighted-average number of shares used in per share amounts: |
||||||||||||||||||||||||
| Basic |
19,247 | 19,247 | 30,933 | 30,933 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Diluted |
27,456 | 27,456 | 32,777 | 32,777 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||