Welcome!

Microsoft Cloud Authors: Janakiram MSV, Pat Romanski, Steven Mandel, John Basso, Liz McMillan

News Feed Item

Itron Announces Fourth Quarter and Fiscal 2012 Financial Results

Itron, Inc. (NASDAQ:ITRI) announced today financial results for its fourth quarter and full year ended December 31, 2012. Highlights include:

  • Quarterly and full year revenues of $523 million and $2.2 billion;
  • Quarterly and full year GAAP diluted net earnings per share of 40 cents and $2.71;
  • Quarterly and full year non-GAAP diluted net earnings per share of 58 cents and $3.62;
  • Full year cash flow from operations and free cash flow of $205 million and $155 million;
  • Quarterly and full year adjusted EBITDA of $44 million and $260 million;
  • Twelve-month backlog of $568 million and total backlog of $1.0 billion; and
  • Quarterly bookings of $467 million.

“Our fourth quarter results reflect transition in Itron’s business as we successfully complete more than $1.5 billion of OpenWay projects in North America and begin new electricity, gas and water smart system pilots and deployments around the world,” said Philip Mezey, Itron’s president and chief executive officer. “While total revenues declined in the quarter compared to last year, our base business revenues excluding these large OpenWay contracts grew six percent. Non-GAAP earnings for the quarter were impacted by higher product development, sales and marketing expenses as we prepare for new projects developing in nearly every major geographic region.”

“Itron has a solid, profitable financial foundation,” continued Mr. Mezey. “With our financial strength, large customer base and next-generation technologies for electricity, gas and water applications, Itron is well-positioned to lead a transformation in the utility sector. In 2013, we will accelerate our commitment to innovation and we will continue to invest in new solutions to help our customers build the smart cities of the next decade. I am excited to lead our company at a time when we can truly make a difference in our industry.”

Financial Results

Revenues were $523 million for the quarter and $2.2 billion for the full year, compared with $642 million and $2.4 billion in the same periods in 2011. Changes in foreign currency exchange rates unfavorably impacted revenue by $9 million for the quarter and $92 million for the year. Excluding the impact from foreign currency, revenues for the quarter and year decreased $110 million and $164 million compared with the same periods in 2011. Higher revenue in the Water segment was offset by lower revenue in the Energy segment due to the completion of several OpenWay projects in North America. Itron Cellular Solutions, which was acquired in May 2012, added $10 million and $22 million in revenue in the fourth quarter and full year 2012, respectively.

Gross margin for the quarter was 31.2 percent compared with the prior year period margin of 30.0 percent. Gross margin for the Energy segment improved due to lower warranty costs and manufacturing efficiencies, partially offset by the impact of lower volumes and product mix. The gross margin for the Water segment decreased primarily due to higher service costs. For the year, gross margin was 32.8 percent compared with 30.7 percent in 2011. Gross margin improvement over the prior year was driven by lower warranty costs in both the Energy and Water segments, which positively impacted gross margin by 1.7 percentage points. Additionally, benefits from our restructuring actions and manufacturing efficiencies offset the impact of decreased volumes.

GAAP operating expenses were $144 million in the quarter compared with $253 million in the same period last year. The decrease in expenses was primarily due to lower restructuring and goodwill impairment charges. For the year, operating expenses were $565 million compared with $1.2 billion in 2011. The decrease was due to a favorable impact of $25 million from changes in foreign currency rates, lower restructuring expenses, goodwill impairment and intangible asset amortization costs partially offset by increased sales and marketing activity and product development efforts to position us for upcoming global smart grid opportunities. GAAP operating income for the quarter and year was $19 million and $151 million, compared with an operating loss of $60 million and $459 million in the respective 2011 periods. Itron Cellular Solutions negatively impacted GAAP operating income by $2.3 million and $12.4 million in the fourth quarter and full year 2012, respectively.

Net interest expense was $2.2 million for the quarter and $9.2 million for the year compared with $2.2 million and $35.9 million in the same periods last year. The decrease in net interest expense in the year was due to a reduced principal balance and lower effective interest rates due to a refinancing of bank debt in August 2011.

GAAP net income and diluted EPS for the fourth quarter and year were $16 million, or 40 cents per share, and $108 million, or $2.71 per share, respectively. This compares to a net loss of $55 million, or $1.35 per share, and $510 million, or $12.56 per share in the same periods in 2011, respectively. The 2012 net income for the quarter was positively impacted by a tax benefit. The net income for the year was positively impacted by decreased interest expense which was partially offset by an increase in tax expense driven by discrete tax benefits recognized in the prior year.

Non-GAAP operating expenses exclude amortization of intangibles, restructuring charges, acquisition related expenses and the impairment of goodwill. Non-GAAP operating expenses for the quarter and year increased $6 million and $20 million over the 2011 respective periods. Foreign currency favorably impacted non-GAAP operating expenses by $2 million in the quarter and $19 million in the year. Excluding the impact of foreign currency, non-GAAP operating expenses increased for both periods due to increased global sales and marketing activity and product development. Non-GAAP operating income was $30 million and $206 million for the quarter and year, compared with $65 million and $257 million in the same periods in 2011. Itron Cellular Solutions negatively impacted non-GAAP operating income by $1.4 million and $8.3 million in the fourth quarter and full year 2012, respectively.

Non-GAAP net income and diluted EPS for the quarter and year were $23 million, or 58 cents per share, and $145 million, or $3.62 per share, respectively. This compares with $49 million, or $1.19 cents per share, and $176 million, or $4.29 per share, respectively, in the same periods in 2011. The decrease in non-GAAP net income for the quarter was due to lower gross profit and increased operating expenses, partially offset by decreased tax expense. The decrease in non-GAAP net income for the year was due to lower gross profit, higher operating expenses and increased tax expense, partially offset by decreased interest expense.

The company repurchased 157,772 shares of Itron common stock during the quarter at an average price of $42.73 per share pursuant to Board authorization to repurchase up to $100 million of Itron common stock beginning October 2011 through the expiration date of February 15, 2013. As of December 31, 2012 the company had repurchased approximately 2 million shares of Itron common stock at an average price of $37.96 per share since inception of the program, representing approximately 5.0 percent of total shares outstanding as of October 2011.

Financial Guidance

Itron’s guidance for the full-year 2013 is as follows:

• Revenue between $2.0 billion and $2.1 billion

• Non-GAAP diluted EPS between $3.00 and $3.25

The company’s guidance assumes a gross margin of approximately 33.5 percent, a Euro to U.S. dollar average exchange rate of $1.34, average shares outstanding of approximately 40 million for the year and a non-GAAP effective tax rate for the year of 25 percent.

Earnings Conference Call:

Itron will host a conference call to discuss the financial results and guidance contained in this release at 5:00 p.m. Eastern Time (ET) on February 13, 2013. The call will be webcast in a listen-only mode. Webcast information and conference call materials will be made available 15 minutes before the start of the call and are accessible on Itron’s website at www.itron.com under the Investors page. The webcast replay will begin after the conclusion of the live call and will be available for two weeks. A telephone replay of the call will also be available after the conclusion of the live call, for 48 hours, and is accessible by dialing (888) 203-1112 (Domestic) or (719) 457-0820 (International), entering passcode 4441088.

About Itron

Itron is a global technology company. We build solutions that help utilities measure, monitor and manage energy and water. Our broad product portfolio includes electricity, gas, water and thermal energy measurement and control technology; communications systems; software; and professional services. With thousands of employees supporting nearly 8,000 utilities in more than one hundred countries, Itron empowers utilities to responsibly and efficiently manage energy and water resources. Join us in creating a more resourceful world, start here: www.itron.com.

Forward Looking Statements:

This release contains forward-looking statements concerning our expectations about operations, financial performance, sales, earnings and cash flows. These statements reflect our current plans and expectations and are based on information currently available. The statements rely on a number of assumptions and estimates, which could be inaccurate, and which are subject to risks and uncertainties that could cause our actual results to vary materially from those anticipated. Risks and uncertainties include the rate and timing of customer demand for our products, rescheduling of current customer orders, changes in estimated liabilities for product warranties, changes in laws and regulations, our dependence on new product development and intellectual property, future acquisitions, changes in estimates for stock-based and bonus compensation, increasing volatility in foreign exchange rates, international business risks and other factors that are more fully described in our Annual Report on Form 10-K for the year ended December 31, 2011 and other reports on file with the Securities and Exchange Commission. Itron undertakes no obligation to update publicly or revise any forward-looking statements, including our business outlook.

Non-GAAP Financial Information:

To supplement our consolidated financial statements presented in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, and free cash flow. We provide these non-GAAP financial measures because we believe they provide greater transparency and represent supplemental information used by management in its financial and operational decision making. Specifically, these non-GAAP financial measures are provided to enhance investors’ overall understanding of our current financial performance and our future anticipated performance by excluding infrequent or non-cash costs, particularly those associated with acquisitions. We exclude certain costs in our non-GAAP financial measures as we believe the net result is a measure of our core business. Non-GAAP performance measures should be considered in addition to, and not as a substitute for, results prepared in accordance with GAAP. Our non-GAAP financial measures may be different from those reported by other companies. A more detailed discussion of why we use non-GAAP financial measures, the limitations of using such measures, and reconciliations between non-GAAP and the nearest GAAP financial measures are included in this press release.

Statements of operations, segment information, balance sheets, cash flow statements and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures follow.

ITRON, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
           
(Unaudited, in thousands, except per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
  2012     2011     2012     2011  
Revenues $ 523,335 $ 642,477 $ 2,178,178 $ 2,434,124
Cost of revenues   359,835     449,944     1,463,031     1,687,666  
Gross profit 163,500 192,533 715,147 746,458
 
Operating expenses
Sales and marketing 51,987 47,086 197,603 185,105
Product development 44,358 42,158 178,653 161,305
General and administrative 37,527 38,281 138,290 142,908
Amortization of intangible assets 11,943 15,587 47,810 63,394
Restructuring expense (1,790 ) 65,079 1,665 68,082
Goodwill impairment   -     44,447     -     584,847  
Total operating expenses   144,025     252,638     564,021     1,205,641  
 
Operating income (loss) 19,475 (60,105 ) 151,126 (459,183 )
Other income (expense)
Interest income 285 231 952 862
Interest expense (2,521 ) (2,464 ) (10,115 ) (36,794 )
Other income (expense), net   (1,520 )   (2,309 )   (5,744 )   (6,651 )
Total other income (expense)   (3,756 )   (4,542 )   (14,907 )   (42,583 )
 
Income (loss) before income taxes 15,719 (64,647 ) 136,219 (501,766 )
Income tax benefit (provision)   745     11,099     (25,995 )   (4,430 )
Net income (loss) 16,464 (53,548 ) 110,224 (506,196 )
Net income attributable to non-controlling interests   504     1,083     1,949     3,961  
Net income (loss) attributable to Itron, Inc. $ 15,960   $ (54,631 ) $ 108,275   $ (510,157 )
 
 
Earnings per common share - Basic $ 0.41   $ (1.35 ) $ 2.73   $ (12.56 )
Earnings per common share - Diluted $ 0.40   $ (1.35 ) $ 2.71   $ (12.56 )
 
 
Weighted average common shares outstanding - Basic 39,233 40,506 39,625 40,612
Weighted average common shares outstanding - Diluted 39,619 40,506 39,934 40,612
 

ITRON, INC.
SEGMENT INFORMATION
             
(Unaudited, in thousands)
Three Months Ended December 31, Twelve Months Ended December 31,
  2012     2011     2012     2011  
Revenues
Energy
Electricity $ 229,844 $ 358,899 $ 1,024,340 $ 1,239,428
Gas   161,855     163,549     627,193     672,999  
Total Energy $ 391,699 $ 522,448 $ 1,651,533 $ 1,912,427
Water   131,636     120,029     526,645     521,697  
Total Company $ 523,335   $ 642,477   $ 2,178,178   $ 2,434,124  
 
Gross profit
Energy $ 121,339 $ 152,118 $ 530,396 $ 578,575
Water   42,161     40,415     184,751     167,883  
Total Company $ 163,500   $ 192,533   $ 715,147   $ 746,458  
 
Operating income (loss)
Energy $ 19,158 $ (35,265 ) $ 135,369 $ (112,831 )
Water 9,314 (13,190 ) 59,210 (303,772 )
Corporate unallocated   (8,997 )   (11,650 )   (43,453 )   (42,580 )
Total Company $ 19,475   $ (60,105 ) $ 151,126   $ (459,183 )
 
 
METER AND MODULE SUMMARY
 
(Units in thousands)
Three Months Ended December 31, Twelve Months Ended December 31,
  2012     2011     2012     2011  
Meters
Standard 4,310 4,720 17,920 19,570
Advanced and Smart   1,920     3,010     8,030     9,320  
Total meters   6,230     7,730     25,950     28,890  
 
Stand-alone communication modules
Advanced and Smart   1,410     1,490     6,460     6,330  
 

ITRON, INC.
CONSOLIDATED BALANCE SHEETS
     
(Unaudited, in thousands)
December 31, 2012 December 31, 2011

 

ASSETS

Current assets
Cash and cash equivalents $ 136,411 $ 133,086
Accounts receivable, net 375,326 371,641
Inventories 170,719 195,837
Deferred tax assets current, net 33,536 58,172
Other current assets   104,958     81,618  
Total current assets 820,950 840,354
 
Property, plant, and equipment, net 255,212 262,670
Deferred tax assets noncurrent, net 44,584 22,144
Other long-term assets 28,908 62,704
Intangible assets, net 238,771 239,500
Goodwill   701,016     636,910  
Total assets $ 2,089,441   $ 2,064,282  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 227,739 $ 246,775
Other current liabilities 49,950 53,734
Wages and benefits payable 91,802 93,730
Taxes payable 9,305 11,526
Current portion of debt 18,750 15,000
Current portion of warranty 27,115 52,588
Unearned revenue   42,712     37,369  
Total current liabilities 467,373 510,722
 
Long-term debt 398,750 437,502
Long-term warranty 26,490 26,948
Pension plan benefit liability 90,533 62,449
Deferred tax liabilities noncurrent, net 16,682 31,699
Other long-term obligations   80,100     73,417  
Total liabilities 1,079,928 1,142,737
 
Commitments and contingencies
 
Equity
Preferred stock - -
Common stock 1,294,213 1,319,222
Accumulated other comprehensive loss, net (34,384 ) (37,160 )
Accumulated deficit   (266,862 )   (375,137 )
Total Itron, Inc. shareholders' equity 992,967 906,925
Non-controlling interests   16,546     14,620  
Total equity   1,009,513     921,545  
Total liabilities and equity $ 2,089,441   $ 2,064,282  
 

ITRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
       
(Unaudited, in thousands)
Twelve Months Ended December 31,
  2012     2011  
Operating activities
Net income (loss) $ 110,224 $ (506,196 )
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 109,471 129,466
Stock-based compensation 19,512 16,411
Amortization of prepaid debt fees 1,597 5,715
Amortization of convertible debt discount - 5,336
Deferred taxes, net (6,775 ) (12,985 )
Goodwill impairment - 584,847
Restructuring expense, non-cash (4,839 ) 25,144
Other adjustments, net (189 ) (44 )
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable 36,300 (22,770 )
Inventories 28,253 6,389
Other current assets (20,052 ) (3,859 )
Other long-term assets 10,578 (17,401 )
Accounts payables, other current liabilities, and taxes payable (47,367 ) 22,715
Wages and benefits payable (8,967 ) (19,813 )
Unearned revenue 12,009 19,070
Warranty (25,919 ) 29,616
Other operating, net   (8,746 )   (9,283 )
Net cash provided by operating activities 205,090 252,358
 
Investing activities
Acquisitions of property, plant, and equipment (50,543 ) (60,076 )
Business acquisitions, net of cash equivalents acquired (79,017 ) (20,092 )
Other investing, net   4,115     1,427  
Net cash used in investing activities (125,445 ) (78,741 )
 
Financing activities
Proceeds from borrowings 80,000 670,000
Payments on debt (115,002 ) (848,054 )
Issuance of common stock 4,781 4,625
Repurchase of common stock (47,441 ) (29,428 )
Other financing, net   134     (6,596 )
Net cash used in financing activities (77,528 ) (209,453 )
 
Effect of foreign exchange rate changes on cash and cash equivalents   1,208     (555 )
Increase (decrease) in cash and cash equivalents 3,325 (36,391 )
Cash and cash equivalents at beginning of period   133,086     169,477  
Cash and cash equivalents at end of period $ 136,411   $ 133,086  
 

Itron, Inc.

About Non-GAAP Financial Measures

The accompanying press release contains non-GAAP financial measures. To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, including non-GAAP operating expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, adjusted EBITDA, and free cash flow. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures please see the table captioned “Reconciliations of Non-GAAP Financial Measures to Most Directly Comparable GAAP Financial Measures.”

We use these non-GAAP financial measures for financial and operational decision making and as a means for determining executive compensation. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and ability to service debt by excluding certain expenses that may not be indicative of our recurring core operating results. These non-GAAP financial measures facilitate management’s internal comparisons to our historical performance as well as comparisons to our competitors’ operating results. Our executive compensation plans exclude non-cash charges related to amortization of intangibles and non-recurring discrete cash and non-cash charges that are infrequent in nature such as purchase accounting adjustments, restructuring charges or goodwill impairment charges. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting and analyzing future periods. We believe these non-GAAP financial measures are useful to investors because they provide greater transparency with respect to key metrics used by management in its financial and operational decision making and because they are used by our institutional investors and the analyst community to help them analyze the health of our business.

Non-GAAP operating expense and non-GAAP operating income – We define non-GAAP operating expense as operating expense excluding certain expenses related to the amortization of intangible assets, restructuring, acquisitions and goodwill impairment. We define non-GAAP operating income as operating income excluding the expenses related to the amortization of intangible assets, restructuring, acquisitions and goodwill impairment. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of expenses that are related to previous acquisitions and restructurings. By excluding these expenses we believe that it is easier for management and investors to compare our financial results over multiple periods and analyze trends in our operations. For example, expenses related to amortization of intangible assets are decreasing, which is improving GAAP operating margins, yet the improvement in GAAP operating margins due to this lower expense is not necessarily reflective of an improvement in our core business. There are some limitations related to the use of non-GAAP operating expense and non-GAAP operating income versus operating expense and operating income calculated in accordance with GAAP. Non-GAAP operating expense and non-GAAP operating income exclude some costs that are recurring. Additionally, the expenses that we exclude in our calculation of non-GAAP operating expense and non-GAAP operating income may differ from the expenses that our peer companies exclude when they report the results of their operations. We compensate for these limitations by providing specific information about the GAAP amounts we have excluded from our non-GAAP operating expense and non-GAAP operating income and evaluating non-GAAP operating expense and non-GAAP operating income together with GAAP operating expense and GAAP operating income.

Non-GAAP net income and non-GAAP diluted EPS – We define non-GAAP net income as net income excluding the expenses associated with amortization of intangible assets, restructuring, acquisitions, goodwill impairment, amortization of debt placement fees and amortization of convertible debt discount. We define non-GAAP diluted EPS as non-GAAP net income divided by the weighted average shares, on a diluted basis, outstanding during each period. We consider these financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income. The same limitations described above regarding our use of non-GAAP operating income apply to our use of non-GAAP net income and non-GAAP diluted EPS. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP measures and evaluating non-GAAP net income and non-GAAP diluted EPS together with GAAP net income and GAAP diluted EPS.

Adjusted EBITDA – We define adjusted EBITDA as net income (a) minus interest income, (b) plus interest expense, depreciation and amortization of intangible asset expenses, restructuring expense, acquisition related expenses and goodwill impairment and (c) exclude the tax expense or benefit. We believe that providing this financial measure is important for management and investors to understand our ability to service our debt as it is a measure of the cash generated by our core business. Management uses adjusted EBITDA as a performance measure for executive compensation. A limitation to using adjusted EBITDA is that it does not represent the total increase or decrease in the cash balance for the period and the measure includes some non-cash items and excludes other non-cash items. Additionally, the items that we exclude in our calculation of adjusted EBITDA may differ from the items that our peer companies exclude when they report their results. Management compensates for this limitation by providing a reconciliation of this measure to GAAP net income.

Free cash flow – We define free cash flow as net cash provided by operating activities less cash used for acquisitions of property, plant, and equipment. We believe free cash flow provides investors with a relevant measure of liquidity and a useful basis for assessing our ability to fund our operations and repay our debt. The same limitations described above regarding our use of non-GAAP operating income apply to our use of free cash flow. We compensate for these limitations by providing specific information regarding the GAAP amounts and reconciling to free cash flow.

The accompanying tables have more detail on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures and the related reconciliations between these financial measures.

ITRON, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO THE MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
           
(Unaudited, in thousands, except per share data)
Three Months Ended December 31, Twelve Months Ended December 31,
  2012     2011     2012     2011  
NON-GAAP OPERATING INCOME - ENERGY
Energy - GAAP operating income (loss) $ 19,158 $ (35,265 ) $ 135,369 $ (112,831 )
Amortization of intangible assets 8,688 11,304 34,765 45,951
Restructuring expense (2,219 ) 49,939 1,317 51,873
Acquisition related expenses 667 - 2,495 -
Goodwill impairment   -     38,650     -     254,735  
Energy - Non-GAAP operating income $ 26,294   $ 64,628   $ 173,946   $ 239,728  
 
NON-GAAP OPERATING INCOME - WATER
Water - GAAP operating income (loss) $ 9,314 $ (13,190 ) $ 59,210 $ (303,772 )
Amortization of intangible assets 3,255 4,283 13,045 17,443
Restructuring expense 106 14,765 (765 ) 15,321
Goodwill impairment   -     5,797     -     330,112  
Water - Non-GAAP operating income $ 12,675   $ 11,655   $ 71,490   $ 59,104  
 
NON-GAAP OPERATING LOSS - CORPORATE UNALLOCATED
Corporate unallocated - GAAP operating loss $ (8,997 ) $ (11,650 ) $ (43,453 ) $ (42,580 )
Restructuring expense 323 375 1,113 888
Acquisition related expenses   -     -     2,962     -  
Corporate unallocated - Non-GAAP operating loss $ (8,674 ) $ (11,275 ) $ (39,378 ) $ (41,692 )
 
NON-GAAP OPERATING INCOME
GAAP operating income (loss) $ 19,475 $ (60,105 ) $ 151,126 $ (459,183 )
Amortization of intangible assets 11,943 15,587 47,810 63,394
Restructuring expense (1,790 ) 65,079 1,665 68,082
Acquisition related expenses 667 - 5,457 -
Goodwill impairment   -     44,447     -     584,847  
Non-GAAP operating income $ 30,295   $ 65,008   $ 206,058   $ 257,140  
 
NON-GAAP OPERATING EXPENSE
Total Company - GAAP operating expense $ 144,025 $ 252,638 $ 564,021 $ 1,205,641
Amortization of intangible assets (11,943 ) (15,587 ) (47,810 ) (63,394 )
Restructuring expense 1,790 (65,079 ) (1,665 ) (68,082 )
Acquisition related expenses (667 ) - (5,457 ) -
Goodwill impairment   -     (44,447 )   -     (584,847 )
Total Company - Non-GAAP operating expense $ 133,205   $ 127,525   $ 509,089   $ 489,318  
 
NON-GAAP NET INCOME & DILUTED EPS
GAAP net income (loss) $ 15,960 $ (54,631 ) $ 108,275 $ (510,157 )
Amortization of intangible assets 11,943 15,587 47,810 63,394
Amortization of debt placement fees 397 349 1,558 5,435
Amortization of convertible debt discount - - - 5,336
Restructuring expense (1,790 ) 65,079 1,665 68,082
Acquisition related expenses 667 - 5,457 -
Goodwill impairment - 44,447 - 584,847
Income tax effect of non-GAAP adjustments   (4,238 )   (22,319 )   (20,185 )   (40,986 )
Non-GAAP net income $ 22,939   $ 48,512   $ 144,580   $ 175,951  
       
Non-GAAP diluted EPS $ 0.58   $ 1.19   $ 3.62   $ 4.29  
 
Weighted average common shares outstanding - Diluted   39,619     40,805     39,934     40,985  
 
ADJUSTED EBITDA
GAAP net income (loss) $ 15,960 $ (54,631 ) $ 108,275 $ (510,157 )
Interest income (285 ) (231 ) (952 ) (862 )
Interest expense 2,521 2,464 10,115 36,794
Income tax provision (745 ) (11,099 ) 25,995 4,430
Depreciation and amortization 27,615 32,547 109,471 129,466
Restructuring expense (1,790 ) 65,079 1,665 68,082
Acquisition related expenses 667 - 5,457 -
Goodwill impairment   -     44,447     -     584,847  
Adjusted EBITDA $ 43,943   $ 78,576   $ 260,026   $ 312,600  
 
FREE CASH FLOW
Net cash provided by operating activities $ 68,087 $ 98,557 $ 205,090 $ 252,358
Acquisitions of property, plant, and equipment   (16,265 )   (14,277 )   (50,543 )   (60,076 )
Free Cash Flow $ 51,822   $ 84,280   $ 154,547   $ 192,282  

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.