Delivers Strong Performance Across Several Key Financial
Metrics
Nuance Communications, Inc. (NASDAQ: NUAN) today announced
financial results for its third quarter fiscal year 2018, the three
months ended June 30, 2018.
As part of its efforts to return capital to shareholders and
strengthen its balance sheet, Nuance also announced today that its
Board of Directors has authorized an incremental share repurchase
program of up to $500 million, as well as a $150 million debt
repayment.
“We delivered solid Q3 18 results, including non-GAAP revenue
above the high end of our guidance, non-GAAP diluted EPS slightly
above the midpoint of our guidance, and 7% net new bookings
growth,” said Mark Benjamin, Nuance’s chief executive officer. “In
addition, we made significant changes to our Board of Directors and
governance and acted on our commitment to rebalance our capital
allocation strategy, repurchasing 8.1 million shares, or
approximately 3% of our total shares outstanding.”
“We also made meaningful progress with our portfolio and
business reviews in the quarter,” continued Benjamin. "We are
acting with urgency and driving toward a simplified and more
efficient business, capable of sustainable, long-term revenue and
earnings growth with resources keenly focused on opportunities that
leverage Nuance’s core strengths in key vertical markets. As we
committed last quarter, we will discuss Nuance’s next phase of
growth and the evolution of our business in more detail when we
report our fiscal fourth quarter and full year 2018
results.”
Third Quarter Performance Summary
On a GAAP basis:
- GAAP revenue of $502.9 million, up 3% compared to $486.2
million a year ago
- GAAP recurring revenue of 73% of total GAAP revenue, consistent
with the year-ago period
- GAAP net loss of $(14.0) million, or $(0.05) per share,
compared to a loss of $(27.8) million, or $(0.10) per share, in the
third quarter of fiscal year 2017
- GAAP operating margin of 5.7%, compared to 2.9% in the third
quarter of fiscal year 2017
- Cash flow from operations of $99.7 million in the third quarter
of fiscal year 2018, compared to $132.0 million in the third
quarter of fiscal year 2017
On a non-GAAP basis:
- Non‑GAAP revenue of $506.0 million as reported, up 2% compared
to $495.6 million in the third quarter of fiscal year 2017
- Organic revenue grew 1% in the quarter to $506.0 million from
$502.8 million in the prior year period
- Non-GAAP recurring revenue of 73% of total non-GAAP revenue,
consistent with the year-ago period
- Non-GAAP net income of $79.6 million, or $0.27 per diluted
share, compared to non-GAAP net income of $79.2 million, or $0.27
per diluted share, in the third quarter of fiscal year 2017
- Non‑GAAP operating margin of 24.7%, compared to 27.0% in the
third quarter of fiscal year 2017
- Cash flow from operations of $99.7 million, or 125% of non-GAAP
net income
- Net new bookings growth of 7%, to $471.1 million, up from
$438.5 million a year ago
Returning Capital to Shareholders and Strengthening the
Balance Sheet
During Q3 18, under the Company’s current Board-authorized stock
repurchase program, Nuance repurchased 8.1 million shares of its
common stock, representing approximately 3% of its total shares
outstanding as of March 31, 2018, at an average price of $13.81 per
share and a total purchase price of $112.0 million.
As of August 7, 2018, the Company had repurchased an additional
1.1 million shares, bringing the total number of shares repurchased
since the beginning of Q3 18 to 9.2 million, at an aggregate
purchase price of $127.5 million.
Subsequently, given confidence in the Company’s ability to
generate long-term value and its commitment to return capital to
shareholders, Nuance today announced that its Board of Directors
authorized an incremental share repurchase program of up to $500
million, supplementing the current authorization. Including the new
authorization, Nuance had $565.9 million available for future share
repurchases as of August 7, 2018.
In addition, the Company announced today that its Board of
Directors authorized the repayment of $150 million of the Company’s
2020 5.375% high-yield bonds, which will be callable at par after
August 15, 2018. The Company expects this repayment to take
place in mid-September and to reduce annual cash interest expense
by approximately $8.1 million. Total debt maturity value will be
$2.44 billion after the repayment, down from $2.59 billion as of
June 30, 2018.
Business Outlook
Nuance reiterated its expectations for 5% to 7% net new bookings
growth and guided to approximately 3% organic revenue growth for
fiscal year 2018, consistent with the midpoint of its prior
guidance of 2% to 4% organic revenue growth. In addition, the
Company expects fiscal year 2018 GAAP EPS in a range of $(0.44) to
$(0.39) and non-GAAP diluted EPS in a range of $1.11 to $1.15 per
share, an increase of $0.01 at the mid-point from its prior
guidance range of $1.09 to $1.15 per share, and inclusive of an
estimated $0.01 benefit as a result of share repurchases to
date.
For a complete discussion on Nuance’s third quarter results and
business outlook, please see the Company’s Prepared Remarks
document available at http://www.nuance.com/earnings-results/
Please refer to the “Discussion of Non-GAAP Financial Measures,”
and “GAAP to Non-GAAP Reconciliations,” included elsewhere in this
release, for more information regarding the company’s use of
non-GAAP.
Conference Call and Prepared Remarks
Nuance provides prepared remarks in combination with its press
release. These remarks are offered to provide shareholders and
analysts with additional time and detail for analyzing results in
advance of the company’s quarterly conference call. The remarks
will be available at http://www.nuance.com/earnings-results/ in
conjunction with this press release.
Nuance will host an investor conference call today that will
begin at 5:00 p.m. ET and will include brief comments followed by
questions and answers. To access the live broadcast, please visit
the Investor Relations section of Nuance’s website at
http://investors.nuance.com. The call can also be heard by dialing
866-393-4306 or 734-385-2616 at least five minutes prior to the
call start time and referencing conference code 2776239. A replay
will be available within 24 hours of the announcement via the
webcast link at http://investors.nuance.com or by dialing
855-859-2056 or 404-537-3406 and using the access code 2776239.
About Nuance Communications,
Inc.
Nuance Communications, Inc. (NASDAQ: NUAN) is the pioneer and
leader in conversational AI innovations that bring intelligence to
everyday work and life. The Company delivers solutions that
understand, analyze and respond to human language to increase
productivity and amplify human intelligence. With
decades of domain and artificial intelligence expertise, Nuance
works with thousands of organizations – in global industries that
include healthcare, telecommunications, automotive, financial
services, and retail – to create stronger relationships and better
experiences for their customers and workforce. For more
information, please visit www.nuance.com.
Trademark reference: Nuance and the Nuance logo are registered
trademarks or trademarks of Nuance Communications, Inc. or its
affiliates in the United States and/or other countries. All other
trademarks referenced herein are the property of their respective
owners.
Safe Harbor and Forward-Looking Statements
Statements in this document regarding future performance and our
management’s future expectations, beliefs, goals, plans or
prospects constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Any
statements that are not statements of historical fact (including
statements containing the words “believes,” “plans,” “anticipates,”
“expects,” or “estimates” or similar expressions) should also be
considered to be forward-looking statements. There are a number of
important factors that could cause actual results or events to
differ materially from those indicated by such forward-looking
statements, including but not limited to: fluctuations in demand
for our existing and future products; fluctuations in the mix of
products and services sold in specific periods; further
unanticipated costs resulting from the FY17 malware incident
including potential costs associated with litigation or
governmental investigations that may result from the incident; our
ability to control and successfully manage our expenses and cash
position; our ability to develop and execute in a timely manner our
productivity and cost initiatives; the effects of competition,
including pricing pressure, and changing business models in the
markets and industries we serve; changes to economic conditions in
the United States and internationally; uncertainties associated
with the transition of our chief executive officer, and the
addition of a number of new directors; the imposition of tariffs or
other trade measures particularly between the United States and
China; potential future impairment charges related to our newly
reorganized business reporting units; fluctuating currency rates;
possible quality issues in our products and technologies; our
ability to successfully integrate operations and employees of
acquired businesses; the conversion rate of bookings into revenue;
the ability to realize anticipated synergies from acquired
businesses; and the other factors described in our Form 10-Q for
the period ended March 31, 2018. We disclaim any obligation to
update any forward-looking statements as a result of developments
occurring after the date of this document.
Definitions of Bookings and Net New
Bookings
Bookings. Bookings represent the estimated gross revenue value
of transactions at the time of contract execution, except for
maintenance and support offerings. For fixed price contracts, the
bookings value represents the gross total contract value. For
contracts where revenue is based on transaction volume, the
bookings value represents the contract price multiplied by the
estimated future transaction volume during the contract term,
whether or not such transaction volumes are guaranteed under a
minimum commitment clause. Actual results could be different than
our initial estimates. The maintenance and support bookings value
represents the amounts billed in the period the customer is
invoiced. Because of the inherent estimates required to determine
bookings and the fact that the actual resultant revenue may differ
from our initial bookings estimates, we consider bookings one
indicator of potential future revenue and not as an arithmetic
measure of backlog.
Net new bookings. Net new bookings represents the estimated
revenue value at the time of contract execution from new
contractual arrangements or the estimated revenue value incremental
to the portion of the transaction value attributable to renewals
under pre-existing arrangements. Constant currency for net new
bookings is calculated using current period net new bookings
denominated in currencies other than United States dollars,
converted into United States dollars using the average exchange
rate for those currencies from the prior year period rather than
the actual exchange rate in effect during the current period.
Discussion of non-GAAP Financial Measures
We believe that providing the non-GAAP information to investors,
in addition to the GAAP presentation, allows investors to view the
financial results in the way management views the operating
results. We further believe that providing this information allows
investors to not only better understand our financial performance,
but more importantly, to evaluate the efficacy of the methodology
and information used by management to evaluate and measure such
performance. The non-GAAP information included in this press
release should not be considered superior to, or a substitute for,
financial statements prepared in accordance with GAAP. We utilize a
number of different financial measures, both Generally Accepted
Accounting Principles (“GAAP”) and non-GAAP, in analyzing and
assessing the overall performance of the business, for making
operating decisions and for forecasting and planning for future
periods. Our annual financial plan is prepared both on a GAAP and
non-GAAP basis, and the non-GAAP annual financial plan is approved
by our board of directors. Continuous budgeting and forecasting for
revenue and expenses are conducted on a consistent non-GAAP basis
(in addition to GAAP) and actual results on a non-GAAP basis are
assessed against the non-GAAP annual financial plan. The board of
directors and management utilize these non-GAAP measures and
results (in addition to the GAAP results) to determine our
allocation of resources. In addition, and as a consequence of the
importance of these measures in managing the business, we use
non-GAAP measures and results in the evaluation process to
establish management’s compensation. For example, our annual bonus
program payments are based upon the achievement of consolidated
non-GAAP revenue and consolidated non-GAAP earnings per share
financial targets. We consider the use of non-GAAP revenue helpful
in understanding the performance of our business, as it excludes
the purchase accounting impact on acquired deferred revenue and
other acquisition-related adjustments to revenue. We also consider
the use of non-GAAP earnings per share helpful in assessing the
organic performance of the continuing operations of our business.
By organic performance we mean performance as if we had owned an
acquired business in the same period a year ago. By constant
currency organic performance, we mean performance excluding the
effect of current foreign currency rate fluctuations. By
continuing operations, we mean the ongoing results of the business
excluding certain unplanned costs. While our management uses these
non-GAAP financial measures as a tool to enhance their
understanding of certain aspects of our financial performance, our
management does not consider these measures to be a substitute for,
or superior to, the information provided by GAAP financial
statements. Consistent with this approach, we believe that
disclosing non-GAAP financial measures to the readers of our
financial statements provides such readers with useful supplemental
data that, while not a substitute for GAAP financial statements,
allows for greater transparency in the review of our financial and
operational performance. In assessing the overall health of the
business during the three and nine months ended June 30, 2018
and 2017, our management has either included or excluded items in
seven general categories, each of which is described below.
Acquisition-related revenue and cost of
revenue. We provide supplementary non-GAAP financial
measures of revenue that include revenue that we would have
recognized but for the purchase accounting treatment of acquisition
transactions. Non-GAAP revenue also includes revenue that we would
have recognized had we not acquired intellectual property and other
assets from the same customer. Because GAAP accounting requires the
elimination of this revenue, GAAP results alone do not fully
capture all of our economic activities. These non-GAAP adjustments
are intended to reflect the full amount of such revenue. We include
non-GAAP revenue and cost of revenue to allow for more complete
comparisons to the financial results of historical operations,
forward-looking guidance and the financial results of peer
companies. We believe these adjustments are useful to management
and investors as a measure of the ongoing performance of the
business because, although we cannot be certain that customers will
renew their contracts, we have historically experienced high
renewal rates on maintenance and support agreements and other
customer contracts. Additionally, although acquisition-related
revenue adjustments are non-recurring with respect to past
acquisitions, we generally will incur these adjustments in
connection with any future acquisitions.
Acquisition-related costs, net. In recent
years, we have completed a number of acquisitions, which result in
operating expenses, which would not otherwise have been incurred.
We provide supplementary non-GAAP financial measures, which exclude
certain transition, integration and other acquisition-related
expense items resulting from acquisitions, to allow more accurate
comparisons of the financial results to historical operations,
forward looking guidance and the financial results of less
acquisitive peer companies. We consider these types of costs and
adjustments, to a great extent, to be unpredictable and dependent
on a significant number of factors that are outside of our control.
Furthermore, we do not consider these acquisition-related costs and
adjustments to be related to the organic continuing operations of
the acquired businesses and are generally not relevant to assessing
or estimating the long-term performance of the acquired assets. In
addition, the size, complexity and/or volume of past acquisitions,
which often drives the magnitude of acquisition related costs, may
not be indicative of the size, complexity and/or volume of future
acquisitions. By excluding acquisition-related costs and
adjustments from our non-GAAP measures, management is better able
to evaluate our ability to utilize our existing assets and estimate
the long-term value that acquired assets will generate for us. We
believe that providing a supplemental non-GAAP measure, which
excludes these items allows management and investors to consider
the ongoing operations of the business both with, and without, such
expenses.
These acquisition-related costs fall into the following
categories: (i) transition and integration costs; (ii) professional
service fees and expenses; and (iii) acquisition-related
adjustments. Although these expenses are not recurring with respect
to past acquisitions, we generally will incur these expenses in
connection with any future acquisitions. These categories are
further discussed as follows:
(i) Transition and integration costs. Transition and
integration costs include retention payments, transitional employee
costs, and earn-out payments treated as compensation expense, as
well as the costs of integration-related activities, including
services provided by third-parties.
(ii) Professional service fees and expenses. Professional
service fees and expenses include financial advisory, legal,
accounting and other outside services incurred in connection with
acquisition activities, and disputes and regulatory matters related
to acquired entities.
(iii) Acquisition-related adjustments. Acquisition-related
adjustments include adjustments to acquisition-related items that
are required to be marked to fair value each reporting period, such
as contingent consideration, and other items related to
acquisitions for which the measurement period has ended, such as
gains or losses on settlements of pre-acquisition
contingencies.
Amortization of acquired intangible assets. We
exclude the amortization of acquired intangible assets from
non-GAAP expense and income measures. These amounts are
inconsistent in amount and frequency and are significantly impacted
by the timing and size of acquisitions. Providing a supplemental
measure which excludes these charges allows management and
investors to evaluate results “as-if” the acquired intangible
assets had been developed internally rather than acquired and,
therefore, provides a supplemental measure of performance in which
our acquired intellectual property is treated in a comparable
manner to our internally developed intellectual property. Although
we exclude amortization of acquired intangible assets from our
non-GAAP expenses, we believe that it is important for investors to
understand that such intangible assets contribute to revenue
generation. Amortization of intangible assets that relate to past
acquisitions will recur in future periods until such intangible
assets have been fully amortized. Future acquisitions may result in
the amortization of additional intangible assets.
Non-cash expenses. We provide non-GAAP
information relative to the following non-cash expenses: (i)
stock-based compensation; and (ii) non-cash interest. These
items are further discussed as follows:
(i) Stock-based compensation. Because of varying valuation
methodologies, subjective assumptions and the variety of award
types, we believe that excluding stock-based compensation allows
for more accurate comparisons of operating results to peer
companies, as well as to times in our history when stock-based
compensation was more or less significant as a portion of overall
compensation than in the current period. We evaluate performance
both with and without these measures because compensation expense
related to stock-based compensation is typically non-cash and the
options and restricted awards granted are influenced by the
Company’s stock price and other factors such as volatility that are
beyond our control. The expense related to stock-based awards is
generally not controllable in the short-term and can vary
significantly based on the timing, size and nature of awards
granted. As such, we do not include such charges in operating
plans. Stock-based compensation will continue in future
periods.
(ii) Non-cash interest. We exclude non-cash interest
because we believe that excluding this expense provides senior
management, as well as other users of the financial statements,
with a valuable perspective on the cash-based performance and
health of the business, including the current near-term projected
liquidity. Non-cash interest expense will continue in future
periods.
Other expenses. We exclude certain other
expenses that result from unplanned events outside the ordinary
course of continuing operations, in order to measure operating
performance and current and future liquidity both with and without
these expenses. By providing this information, we believe
management and the users of the financial statements are better
able to understand the financial results of what we consider to be
our organic, continuing operations. Included in these expenses are
items such as restructuring charges, asset impairments and other
charges (credits), net. These items include losses from
extinguishing our convertible debt. Other items such as
consulting and professional services fees related to assessing
strategic alternatives and our transformation program,
implementation of the new revenue recognition standard (ASC 606),
and expenses associated with the malware incident and remediation
thereof are also excluded.
Non-GAAP income tax provision. Effective Q2
2017, we changed our method of calculating our non-GAAP income tax
provision. Under the prior method, we calculated our non-GAAP tax
provision using a cash tax method to reflect the estimated amount
we expected to pay or receive in taxes related to the period, which
is equivalent to our GAAP current tax provision. Under the
new method, our non-GAAP income tax provision is determined based
on our non-GAAP pre-tax income. The tax effect of each non-GAAP
adjustment, if applicable, is computed based on the statutory tax
rate of the jurisdiction to which the adjustment relates.
Additionally, as our non-GAAP profitability is higher based on the
non-GAAP adjustments, we adjust the GAAP tax provision to remove
valuation allowances and related effects based on the higher level
of reported non-GAAP profitability. We also exclude from our
non-GAAP tax provision certain discrete tax items as they occur,
which in fiscal year 2018 also includes certain impacts from the
Tax Cuts and Jobs Act of 2017.
Contact Information
Richard
Mack Nuance Communications, Inc. Tel: 781-565-5000
Email:richard.mack@nuance.com Suzanne DuLong Nuance
Communications, Inc. Tel:
781-565-5077Email:suzanne.dulong@nuance.com |
|
Financial Tables Follow
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|
|
|
|
|
|
Nuance Communications, Inc. |
|
|
Condensed Consolidated Statements of Operations |
|
|
(in thousands, except per share amounts) |
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
Professional services and hosting |
|
$ |
254,478 |
|
|
$ |
251,488 |
|
|
$ |
788,079 |
|
|
$ |
763,595 |
|
|
|
|
Product
and licensing |
|
|
168,682 |
|
|
|
154,228 |
|
|
|
491,776 |
|
|
|
465,238 |
|
|
|
|
Maintenance and support |
|
|
79,727 |
|
|
|
80,505 |
|
|
|
238,901 |
|
|
|
244,619 |
|
|
|
|
Total
revenues |
|
|
502,887 |
|
|
|
486,221 |
|
|
|
1,518,756 |
|
|
|
1,473,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
|
|
|
Professional services and hosting |
|
|
166,280 |
|
|
|
169,439 |
|
|
|
519,859 |
|
|
|
498,501 |
|
|
|
|
Product
and licensing |
|
|
19,052 |
|
|
|
17,637 |
|
|
|
57,087 |
|
|
|
54,805 |
|
|
|
|
Maintenance and support |
|
|
14,346 |
|
|
|
13,410 |
|
|
|
42,778 |
|
|
|
40,248 |
|
|
|
|
Amortization of intangible assets |
|
|
13,760 |
|
|
|
15,727 |
|
|
|
43,896 |
|
|
|
48,487 |
|
|
|
|
Total
cost of revenues |
|
|
213,438 |
|
|
|
216,213 |
|
|
|
663,620 |
|
|
|
642,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
289,449 |
|
|
|
270,008 |
|
|
|
855,136 |
|
|
|
831,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
75,726 |
|
|
|
66,565 |
|
|
|
223,277 |
|
|
|
199,119 |
|
|
|
|
Sales and
marketing |
|
|
96,212 |
|
|
|
97,011 |
|
|
|
292,359 |
|
|
|
292,201 |
|
|
|
|
General
and administrative |
|
|
50,653 |
|
|
|
42,329 |
|
|
|
177,833 |
|
|
|
123,637 |
|
|
|
|
Amortization of intangible assets |
|
|
24,117 |
|
|
|
29,160 |
|
|
|
69,851 |
|
|
|
84,931 |
|
|
|
|
Acquisition-related costs, net |
|
|
4,916 |
|
|
|
7,646 |
|
|
|
12,837 |
|
|
|
22,051 |
|
|
|
|
Restructuring and other charges, net |
|
|
9,237 |
|
|
|
13,035 |
|
|
|
32,986 |
|
|
|
39,649 |
|
|
|
|
Impairment of Goodwill |
|
|
- |
|
|
|
- |
|
|
|
137,907 |
|
|
|
- |
|
|
|
|
Total
operating expenses |
|
|
260,861 |
|
|
|
255,746 |
|
|
|
947,050 |
|
|
|
761,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
|
|
28,588 |
|
|
|
14,262 |
|
|
|
(91,914 |
) |
|
|
69,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses,
net |
|
|
(32,052 |
) |
|
|
(39,489 |
) |
|
|
(98,352 |
) |
|
|
(133,292 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes |
|
|
(3,464 |
) |
|
|
(25,227 |
) |
|
|
(190,266 |
) |
|
|
(63,469 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes |
|
|
10,573 |
|
|
|
2,609 |
|
|
|
(65,404 |
) |
|
|
22,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(14,037 |
) |
|
$ |
(27,836 |
) |
|
$ |
(124,862 |
) |
|
$ |
(85,572 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.05 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.30 |
) |
|
|
|
Diluted |
|
$ |
(0.05 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
292,663 |
|
|
|
287,856 |
|
|
|
292,703 |
|
|
|
289,269 |
|
|
|
|
Diluted |
|
|
292,663 |
|
|
|
287,856 |
|
|
|
292,703 |
|
|
|
289,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuance Communications, Inc. |
|
|
Condensed Consolidated Balance Sheets |
|
|
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
June 30, 2018 |
|
September 30, 2017 |
|
|
|
|
|
Unaudited |
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
$ |
331,259 |
|
$ |
592,299 |
|
|
|
Marketable
securities |
|
|
154,085 |
|
|
251,981 |
|
|
|
Accounts receivable,
net |
|
|
396,766 |
|
|
395,392 |
|
|
|
Prepaid expenses and
other current assets |
|
|
104,157 |
|
|
88,269 |
|
|
|
Total
current assets |
|
|
986,267 |
|
|
1,327,941 |
|
|
|
|
|
|
|
|
|
|
Marketable
securities |
|
|
23,801 |
|
|
29,844 |
|
|
Land,
building and equipment, net |
|
|
172,596 |
|
|
176,548 |
|
|
Goodwill |
|
|
3,510,454 |
|
|
3,590,608 |
|
|
Intangible
assets, net |
|
|
612,913 |
|
|
664,474 |
|
|
Other
assets |
|
|
140,060 |
|
|
142,508 |
|
|
|
Total
assets |
|
$ |
5,446,091 |
|
$ |
5,931,923 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Current portion of
long-term debt |
|
$ |
- |
|
$ |
376,121 |
|
|
|
Contingent and deferred
acquisition payments |
|
|
22,259 |
|
|
28,860 |
|
|
|
Accounts
payable, accrued expenses and other current liabilities |
|
319,541 |
|
|
340,505 |
|
|
|
Deferred revenue |
|
|
389,032 |
|
|
366,042 |
|
|
|
Total
current liabilities |
|
|
730,832 |
|
|
1,111,528 |
|
|
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
2,323,516 |
|
|
2,241,283 |
|
|
Deferred
revenue, net of current portion |
|
|
482,834 |
|
|
423,929 |
|
|
Other
liabilities |
|
|
150,994 |
|
|
223,801 |
|
|
|
Total
liabilities |
|
|
3,688,176 |
|
|
4,000,541 |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
1,757,915 |
|
|
1,931,382 |
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
5,446,091 |
|
$ |
5,931,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuance Communications, Inc. |
|
Consolidated Statements of Cash Flows |
|
(in thousands) |
|
Unaudited |
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(14,037 |
) |
|
$ |
(27,836 |
) |
|
$ |
(124,862 |
) |
|
$ |
(85,572 |
) |
|
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
54,112 |
|
|
|
58,311 |
|
|
|
161,167 |
|
|
|
174,955 |
|
|
|
Stock-based compensation |
|
|
35,202 |
|
|
|
42,331 |
|
|
|
106,937 |
|
|
|
121,809 |
|
|
|
Non-cash
interest expense |
|
|
11,896 |
|
|
|
16,141 |
|
|
|
37,091 |
|
|
|
42,912 |
|
|
|
Deferred
tax (benefit) provision |
|
|
(787 |
) |
|
|
1,119 |
|
|
|
(91,118 |
) |
|
|
6,762 |
|
|
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
18,565 |
|
|
|
Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
137,907 |
|
|
|
- |
|
|
|
Impairment of fixed asset |
|
|
- |
|
|
|
5,407 |
|
|
|
1,780 |
|
|
|
16,351 |
|
|
|
Other |
|
|
315 |
|
|
|
1,917 |
|
|
|
894 |
|
|
|
4,259 |
|
|
|
Changes
in operating assets and liabilities, excluding effects of
acquisitions: |
|
|
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
14,422 |
|
|
|
29,563 |
|
|
|
2,007 |
|
|
|
28,132 |
|
|
|
Prepaid
expenses and other assets |
|
|
3,364 |
|
|
|
(2,236 |
) |
|
|
(18,695 |
) |
|
|
(14,531 |
) |
|
|
Accounts
payable |
|
|
(238 |
) |
|
|
13,209 |
|
|
|
(4,011 |
) |
|
|
12,209 |
|
|
|
Accrued
expenses and other liabilities |
|
|
(3,559 |
) |
|
|
6,539 |
|
|
|
1,671 |
|
|
|
(4,040 |
) |
|
|
Deferred
revenue |
|
|
(1,032 |
) |
|
|
(12,436 |
) |
|
|
84,255 |
|
|
|
60,552 |
|
|
|
Net cash
provided by operating activities |
|
|
99,658 |
|
|
|
132,029 |
|
|
|
295,023 |
|
|
|
382,363 |
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
|
(13,639 |
) |
|
|
(15,246 |
) |
|
|
(38,965 |
) |
|
|
(34,033 |
) |
|
|
Payments
for business and asset acquisitions, net of cash acquired |
|
|
(96,457 |
) |
|
|
(37,230 |
) |
|
|
(109,225 |
) |
|
|
(110,220 |
) |
|
|
Purchases of marketable securities and other investments |
|
|
(65,651 |
) |
|
|
(38,211 |
) |
|
|
(158,645 |
) |
|
|
(192,062 |
) |
|
|
Proceeds from sales and maturities of marketable securities and
other investments |
|
64,404 |
|
|
|
36,786 |
|
|
|
259,677 |
|
|
|
106,444 |
|
|
|
Net cash
used in investing activities |
|
|
(111,343 |
) |
|
|
(53,901 |
) |
|
|
(47,158 |
) |
|
|
(229,871 |
) |
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
Repayment and redemption of debt |
|
|
- |
|
|
|
- |
|
|
|
(331,172 |
) |
|
|
(634,055 |
) |
|
|
Proceeds
from issuance of long-term debt, net of issuance costs |
|
|
- |
|
|
|
(878 |
) |
|
|
- |
|
|
|
838,081 |
|
|
|
Payments
for repurchase of common stock |
|
|
(111,979 |
) |
|
|
- |
|
|
|
(111,979 |
) |
|
|
(99,077 |
) |
|
|
Acquisition payments with extended payment terms |
|
|
(3,842 |
) |
|
|
- |
|
|
|
(20,769 |
) |
|
|
- |
|
|
|
Proceeds
from issuance of common stock from employee stock plans |
|
|
1 |
|
|
|
84 |
|
|
|
9,361 |
|
|
|
8,682 |
|
|
|
Payments
for taxes related to net share settlement of equity awards |
|
|
(7,846 |
) |
|
|
(9,170 |
) |
|
|
(51,852 |
) |
|
|
(52,523 |
) |
|
|
Other
financing activities |
|
|
(428 |
) |
|
|
(218 |
) |
|
|
(1,075 |
) |
|
|
(424 |
) |
|
|
Net cash
(used in) provided by financing activities |
|
|
(124,094 |
) |
|
|
(10,182 |
) |
|
|
(507,486 |
) |
|
|
60,684 |
|
|
|
Effects
of exchange rate changes on cash and cash equivalents |
|
|
(1,604 |
) |
|
|
8 |
|
|
|
(1,419 |
) |
|
|
(1,202 |
) |
|
|
Net
(decrease) increase in cash and cash equivalents |
|
|
(137,383 |
) |
|
|
67,954 |
|
|
|
(261,040 |
) |
|
|
211,974 |
|
|
|
Cash and
cash equivalents at beginning of period |
|
|
468,642 |
|
|
|
625,640 |
|
|
|
592,299 |
|
|
|
481,620 |
|
|
|
Cash and
cash equivalents at end of period |
|
$ |
331,259 |
|
|
$ |
693,594 |
|
|
$ |
331,259 |
|
|
$ |
693,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuance Communications, Inc. |
|
|
Supplemental Financial Information - GAAP to Non-GAAP
Reconciliations |
|
|
(in thousands) |
|
|
Unaudited |
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
revenues |
|
$ |
502,887 |
|
|
$ |
486,221 |
|
|
$ |
1,518,756 |
|
|
$ |
1,473,452 |
|
|
|
Acquisition-related revenue adjustments: professional services
and hosting |
|
1,378 |
|
|
|
3,258 |
|
|
|
3,674 |
|
|
|
8,508 |
|
|
|
Acquisition-related revenue adjustments: product and licensing |
|
|
1,734 |
|
|
|
5,941 |
|
|
|
10,515 |
|
|
|
19,970 |
|
|
|
Acquisition-related revenue adjustments: maintenance and
support |
|
|
31 |
|
|
|
204 |
|
|
|
224 |
|
|
|
810 |
|
|
|
Non-GAAP
revenues |
|
$ |
506,030 |
|
|
$ |
495,624 |
|
|
$ |
1,533,169 |
|
|
$ |
1,502,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenues |
|
$ |
213,438 |
|
|
$ |
216,213 |
|
|
$ |
663,620 |
|
|
$ |
642,041 |
|
|
|
Cost of
revenues from amortization of intangible assets |
|
|
(13,760 |
) |
|
|
(15,727 |
) |
|
|
(43,896 |
) |
|
|
(48,487 |
) |
|
|
Cost of
revenues adjustments: professional services and hosting (1) |
|
|
(6,861 |
) |
|
|
(8,385 |
) |
|
|
(20,590 |
) |
|
|
(24,875 |
) |
|
|
Cost of
revenues adjustments: product and licensing (1) |
|
|
(114 |
) |
|
|
(104 |
) |
|
|
(492 |
) |
|
|
(298 |
) |
|
|
Cost of
revenues adjustments: maintenance and support (1) |
|
|
(952 |
) |
|
|
(1,130 |
) |
|
|
(3,041 |
) |
|
|
(3,117 |
) |
|
|
Non-GAAP cost
of revenues |
|
$ |
191,751 |
|
|
$ |
190,867 |
|
|
$ |
595,601 |
|
|
$ |
565,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross
profit |
|
$ |
289,449 |
|
|
$ |
270,008 |
|
|
$ |
855,136 |
|
|
$ |
831,411 |
|
|
|
Gross
profit adjustments |
|
|
24,830 |
|
|
|
34,749 |
|
|
|
82,432 |
|
|
|
106,065 |
|
|
|
Non-GAAP gross
profit |
|
$ |
314,279 |
|
|
$ |
304,757 |
|
|
$ |
937,568 |
|
|
$ |
937,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income
(loss) from operations |
|
$ |
28,588 |
|
|
$ |
14,262 |
|
|
$ |
(91,914 |
) |
|
$ |
69,823 |
|
|
|
Gross
profit adjustments |
|
|
24,830 |
|
|
|
34,749 |
|
|
|
82,432 |
|
|
|
106,065 |
|
|
|
Research
and development (1) |
|
|
8,224 |
|
|
|
9,610 |
|
|
|
26,316 |
|
|
|
26,498 |
|
|
|
Sales and
marketing (1) |
|
|
9,491 |
|
|
|
11,981 |
|
|
|
28,533 |
|
|
|
34,968 |
|
|
|
General
and administrative (1) |
|
|
9,560 |
|
|
|
11,121 |
|
|
|
27,965 |
|
|
|
32,053 |
|
|
|
Acquisition-related costs, net |
|
|
4,916 |
|
|
|
7,646 |
|
|
|
12,837 |
|
|
|
22,051 |
|
|
|
Amortization of intangible assets |
|
|
24,117 |
|
|
|
29,160 |
|
|
|
69,851 |
|
|
|
84,931 |
|
|
|
Restructuring and other charges, net |
|
|
9,237 |
|
|
|
13,035 |
|
|
|
32,986 |
|
|
|
39,649 |
|
|
|
Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
137,907 |
|
|
|
- |
|
|
|
Other |
|
|
6,249 |
|
|
|
2,269 |
|
|
|
49,426 |
|
|
|
7,980 |
|
|
|
Non-GAAP income
from operations |
|
$ |
125,212 |
|
|
$ |
133,833 |
|
|
$ |
376,339 |
|
|
$ |
424,018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss
before income taxes |
|
$ |
(3,464 |
) |
|
$ |
(25,227 |
) |
|
$ |
(190,266 |
) |
|
$ |
(63,469 |
) |
|
|
Gross
profit adjustments |
|
|
24,830 |
|
|
|
34,749 |
|
|
|
82,432 |
|
|
|
106,065 |
|
|
|
Research
and development (1) |
|
|
8,224 |
|
|
|
9,610 |
|
|
|
26,316 |
|
|
|
26,498 |
|
|
|
Sales and
marketing (1) |
|
|
9,491 |
|
|
|
11,981 |
|
|
|
28,533 |
|
|
|
34,968 |
|
|
|
General
and administrative (1) |
|
|
9,560 |
|
|
|
11,121 |
|
|
|
27,965 |
|
|
|
32,053 |
|
|
|
Acquisition-related costs, net |
|
|
4,916 |
|
|
|
7,646 |
|
|
|
12,837 |
|
|
|
22,051 |
|
|
|
Amortization of intangible assets |
|
|
24,117 |
|
|
|
29,160 |
|
|
|
69,851 |
|
|
|
84,931 |
|
|
|
Restructuring and other charges, net |
|
|
9,237 |
|
|
|
13,035 |
|
|
|
32,986 |
|
|
|
39,649 |
|
|
|
Non-cash
interest expense |
|
|
11,896 |
|
|
|
16,141 |
|
|
|
37,091 |
|
|
|
42,912 |
|
|
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
18,565 |
|
|
|
Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
137,907 |
|
|
|
- |
|
|
|
Other
(4) |
|
|
6,249 |
|
|
|
2,269 |
|
|
|
49,426 |
|
|
|
7,980 |
|
|
|
Non-GAAP income
before income taxes |
|
$ |
105,056 |
|
|
$ |
110,485 |
|
|
$ |
315,078 |
|
|
$ |
352,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)Includes approximately $3.9 million and $43 million in
professional services costs associated with considering strategic
alternatives for certain businesses and establishing our Automotive
business as an independent reporting segment, for the three and
nine months ended June 30, 2018, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuance Communications, Inc. |
|
|
Supplemental Financial Information - GAAP to Non-GAAP
Reconciliations, continued |
|
|
(in thousands, except per share amounts) |
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision
(benefit) for income taxes |
|
$ |
10,573 |
|
|
$ |
2,609 |
|
|
$ |
(65,404 |
) |
|
$ |
22,103 |
|
|
|
|
Income
tax effect of Non-GAAP adjustments |
|
|
28,002 |
|
|
|
45,759 |
|
|
|
97,232 |
|
|
|
139,048 |
|
|
|
|
Removal
of valuation allowance and other items |
|
|
(13,158 |
) |
|
|
(17,455 |
) |
|
|
(47,241 |
) |
|
|
(56,457 |
) |
|
|
|
Removal
of discrete items(3) |
|
|
- |
|
|
|
412 |
|
|
|
91,069 |
|
|
|
(1,320 |
) |
|
|
|
Non-GAAP
provision for income taxes |
|
$ |
25,417 |
|
|
$ |
31,325 |
|
|
$ |
75,656 |
|
|
$ |
103,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss |
|
$ |
(14,037 |
) |
|
$ |
(27,836 |
) |
|
$ |
(124,862 |
) |
|
$ |
(85,572 |
) |
|
|
|
Acquisition-related adjustment - revenues (2) |
|
|
3,143 |
|
|
|
9,403 |
|
|
|
14,413 |
|
|
|
29,288 |
|
|
|
|
Acquisition-related costs, net |
|
|
4,916 |
|
|
|
7,646 |
|
|
|
12,837 |
|
|
|
22,051 |
|
|
|
|
Cost of
revenue from amortization of intangible assets |
|
|
13,760 |
|
|
|
15,727 |
|
|
|
43,896 |
|
|
|
48,487 |
|
|
|
|
Amortization of intangible assets |
|
|
24,117 |
|
|
|
29,160 |
|
|
|
69,851 |
|
|
|
84,931 |
|
|
|
|
Restructuring and other charges, net |
|
|
9,237 |
|
|
|
13,035 |
|
|
|
32,986 |
|
|
|
39,649 |
|
|
|
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
18,565 |
|
|
|
|
Impairment of goodwill |
|
|
- |
|
|
|
- |
|
|
|
137,907 |
|
|
|
- |
|
|
|
|
Stock-based compensation (1) |
|
|
35,202 |
|
|
|
42,331 |
|
|
|
106,937 |
|
|
|
121,809 |
|
|
|
|
Non-cash
interest expense |
|
|
11,896 |
|
|
|
16,141 |
|
|
|
37,091 |
|
|
|
42,912 |
|
|
|
|
Adjustment to income tax expense |
|
|
(14,844 |
) |
|
|
(28,716 |
) |
|
|
(141,060 |
) |
|
|
(81,271 |
) |
|
|
|
Other
(4) |
|
|
6,249 |
|
|
|
2,270 |
|
|
|
49,426 |
|
|
|
7,979 |
|
|
|
|
Non-GAAP net
income |
|
$ |
79,639 |
|
|
$ |
79,161 |
|
|
$ |
239,422 |
|
|
$ |
248,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
diluted net income per share |
|
$ |
0.27 |
|
|
$ |
0.27 |
|
|
$ |
0.80 |
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average common shares
outstanding |
|
294,909 |
|
|
|
290,592 |
|
|
|
298,983 |
|
|
|
292,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) As a result of the Tax Cuts and Jobs Act ("TCJA"), we
remeasured certain deferred tax assets and liabilities at the lower
rates and recorded approximately $87.0 million of tax benefits for
the nine months ended June 30, 2018, which also reflected a benefit
of $0.5 million for the three months ended June 30, 2018 as we
revised our estimates of the timing and amounts of the temporary
differences. Additionally, we recorded a $2.0 million provision for
the deemed repatriation of foreign cash and earnings for the nine
months ended June 30, 2018. Also for the nine months ended June 30,
2018, we recorded a tax benefit of $8.5 million related to the
impairment of deductible goodwill in Brazil. |
|
|
|
|
|
|
|
(4)Includes approximately $3.9 million and $43 million in
professional services costs associated with considering strategic
alternatives for certain businesses and establishing our Automotive
business as an independent reporting segment, for the three and
nine months ended June 30, 2018, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuance Communications, Inc. |
|
|
Supplemental Financial Information - GAAP to Non-GAAP
Reconciliations, continued |
|
|
(in thousands) |
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Stock-based
compensation |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
professional services and hosting |
$ |
6,861 |
|
|
$ |
8,385 |
|
|
$ |
20,590 |
|
|
$ |
24,875 |
|
|
|
Cost of
product and licensing |
|
114 |
|
|
|
104 |
|
|
|
492 |
|
|
|
298 |
|
|
|
Cost of
maintenance and support |
|
952 |
|
|
|
1,130 |
|
|
|
3,041 |
|
|
|
3,117 |
|
|
|
Research
and development |
|
8,224 |
|
|
|
9,610 |
|
|
|
26,316 |
|
|
|
26,498 |
|
|
|
Sales and
marketing |
|
9,491 |
|
|
|
11,981 |
|
|
|
28,533 |
|
|
|
34,968 |
|
|
|
General
and administrative |
|
9,560 |
|
|
|
11,121 |
|
|
|
27,965 |
|
|
|
32,053 |
|
|
|
Total |
$ |
35,202 |
|
|
$ |
42,331 |
|
|
$ |
106,937 |
|
|
$ |
121,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Acquisition-related
revenue and cost of revenue |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
3,143 |
|
|
$ |
9,403 |
|
|
$ |
14,413 |
|
|
$ |
29,288 |
|
|
|
Total |
$ |
3,143 |
|
|
$ |
9,403 |
|
|
$ |
14,413 |
|
|
$ |
29,288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nuance Communications, Inc. |
|
Supplemental Financial Information – GAAP to Non-GAAP
Reconciliations, continued |
|
(in millions) |
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hosting Revenues |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FY |
|
Q1 |
|
Q2 |
|
Q3 |
|
|
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2018 |
|
2018 |
|
2018 |
|
|
GAAP Revenues |
|
$ |
193.3 |
|
$ |
202.2 |
|
$ |
189.4 |
|
$ |
149.0 |
|
$ |
733.8 |
|
$ |
185.1 |
|
$ |
194.4 |
|
$ |
190.2 |
|
|
Adjustment |
|
|
2.3 |
|
|
2.7 |
|
|
3.1 |
|
|
2.0 |
|
|
10.1 |
|
|
1.2 |
|
|
1.0 |
|
|
1.4 |
|
|
Non-GAAP Revenues |
|
$ |
195.6 |
|
$ |
204.8 |
|
$ |
192.5 |
|
$ |
150.9 |
|
$ |
743.9 |
|
$ |
186.3 |
|
$ |
195.4 |
|
$ |
191.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance and Support Revenues |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FY |
|
Q1 |
|
Q2 |
|
Q3 |
|
|
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2018 |
|
2018 |
|
2018 |
|
|
GAAP Revenues |
|
$ |
82.5 |
|
$ |
81.6 |
|
$ |
80.5 |
|
$ |
82.5 |
|
$ |
327.1 |
|
$ |
80.8 |
|
$ |
78.4 |
|
$ |
79.7 |
|
|
Adjustment |
|
|
0.2 |
|
|
0.4 |
|
|
0.2 |
|
|
0.2 |
|
|
1.0 |
|
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
Non-GAAP Revenues |
|
$ |
82.7 |
|
$ |
82.0 |
|
$ |
80.7 |
|
$ |
82.7 |
|
$ |
328.1 |
|
$ |
80.9 |
|
$ |
78.5 |
|
$ |
79.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Perpetual Product and Licensing Revenues |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FY |
|
Q1 |
|
Q2 |
|
Q3 |
|
|
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2018 |
|
2018 |
|
2018 |
|
|
GAAP Revenues |
|
$ |
78.7 |
|
$ |
76.5 |
|
$ |
73.5 |
|
$ |
77.3 |
|
$ |
306.0 |
|
$ |
76.6 |
|
$ |
73.0 |
|
$ |
76.9 |
|
|
Adjustment |
|
|
0.7 |
|
|
0.5 |
|
|
0.9 |
|
|
0.4 |
|
|
2.4 |
|
|
0.4 |
|
|
0.3 |
|
|
0.4 |
|
|
Non-GAAP Revenues |
|
$ |
79.3 |
|
$ |
77.0 |
|
$ |
74.4 |
|
$ |
77.7 |
|
$ |
308.4 |
|
$ |
76.9 |
|
$ |
73.3 |
|
$ |
77.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recurring Product and Licensing Revenues |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FY |
|
Q1 |
|
Q2 |
|
Q3 |
|
|
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2018 |
|
2018 |
|
2018 |
|
|
GAAP Revenues |
|
$ |
73.1 |
|
$ |
82.8 |
|
$ |
80.8 |
|
$ |
92.8 |
|
$ |
329.4 |
|
$ |
85.2 |
|
$ |
88.3 |
|
$ |
91.8 |
|
|
Adjustment |
|
|
5.1 |
|
|
7.8 |
|
|
5.0 |
|
|
6.1 |
|
|
24.1 |
|
|
5.4 |
|
|
2.7 |
|
|
1.4 |
|
|
Non-GAAP Revenues |
|
$ |
78.2 |
|
$ |
90.6 |
|
$ |
85.8 |
|
$ |
98.9 |
|
$ |
353.5 |
|
$ |
90.7 |
|
$ |
90.9 |
|
$ |
93.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Professional Services Revenues |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FY |
|
Q1 |
|
Q2 |
|
Q3 |
|
|
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2018 |
|
2018 |
|
2018 |
|
|
GAAP Revenues |
|
$ |
60.1 |
|
$ |
56.5 |
|
$ |
62.1 |
|
$ |
64.3 |
|
$ |
243.1 |
|
$ |
73.9 |
|
$ |
80.2 |
|
$ |
64.2 |
|
|
Adjustment |
|
|
0.2 |
|
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
0.5 |
|
|
0.1 |
|
|
- |
|
|
- |
|
|
Non-GAAP Revenues |
|
$ |
60.3 |
|
$ |
56.7 |
|
$ |
62.2 |
|
$ |
64.4 |
|
$ |
243.6 |
|
$ |
74.0 |
|
$ |
80.2 |
|
$ |
64.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Recurring Revenues |
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
FY |
|
Q1 |
|
Q2 |
|
Q3 |
|
|
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2018 |
|
2018 |
|
2018 |
|
|
GAAP Revenues |
|
$ |
353.0 |
|
$ |
370.2 |
|
$ |
354.5 |
|
$ |
328.6 |
|
$ |
1,406.4 |
|
$ |
355.3 |
|
$ |
364.7 |
|
$ |
365.9 |
|
|
Adjustment |
|
|
7.5 |
|
|
11.4 |
|
|
8.7 |
|
|
8.2 |
|
|
35.9 |
|
|
6.9 |
|
|
3.9 |
|
|
2.8 |
|
|
Non-GAAP Revenues |
|
$ |
360.5 |
|
$ |
381.7 |
|
$ |
363.2 |
|
$ |
336.8 |
|
$ |
1,442.3 |
|
$ |
362.2 |
|
$ |
368.6 |
|
$ |
368.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedules may not add due to rounding. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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