BroadSoft Reports Fourth Quarter and Full Year 2012 Financial Results

Marketwired

GAITHERSBURG, MD--(Marketwire - Feb 27, 2013) - BroadSoft, Inc. (NASDAQ: BSFT), the leading global provider of Internet protocol-based, or IP-based, communications services to the telecommunications industry, today announced financial results for the fourth quarter and twelve-month period ended December 31, 2012.

Financial Highlights for the Fourth Quarter of 2012

  • Total revenue increased 13% year-over-year to $45.8 million
  • GAAP gross profit equaled 82% of total revenue; non-GAAP gross profit equaled 85% of total revenue
  • GAAP income from operations totaled $8.4 million or 18% of revenue; non-GAAP income from operations totaled $14.0 million or 31% of revenue
  • GAAP diluted EPS equaled $0.17 per common share; non-GAAP diluted EPS equaled $0.47 per common share

Results for the three months ended December 31, 2012

Total revenue rose to $45.8 million in the fourth quarter of 2012, an increase of 13% compared to $40.6 million in the fourth quarter of 2011. 

Net income for the fourth quarter of 2012 was $4.9 million, or $0.17 per diluted common share, compared to net income of $5.5 million, or $0.19 per diluted common share in the fourth quarter of 2011. 

On a non-GAAP basis, net income in the fourth quarter of 2012 was $13.4 million, or $0.47 per diluted common share, compared to non-GAAP net income of $10.8 million, or $0.38 per diluted common share, in the fourth quarter of 2011. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.

Results for the twelve months ended December 31, 2012

For the full year, total revenue was $164.8 million, an increase of 19% compared to $138.1 million in 2011. 

Net income for the full year of 2012 was $12.1 million, or $0.43 per diluted common share, compared to net income of $32.3 million, or $1.15 per diluted common share, in 2011. GAAP results for 2011 included an income tax benefit of $8.9 million, or $0.32 per diluted common share, resulting from the release of a tax valuation allowance relating to net deferred tax assets.

On a non-GAAP basis, net income for the full year of 2012 was $40.9 million or $1.44 per diluted common share, compared to non-GAAP net income of $34.5 million, or $1.23 per diluted common share, in 2011. 

Management Commentary

"We executed well against our 2012 strategic plan, including our introduction of UC-One, the only Unified Communications platform designed for telecommunications service providers," said Michael Tessler, president and chief executive officer, BroadSoft. "In 2013, we will continue to focus on developing innovative mobile services to address the growing multi-device communication trend and provide users the freedom to communicate from anywhere. We will also closely collaborate with our customers to design successful go-to-market strategies to drive the rapid adoption of their hosted Unified Communications solutions beyond voice services."

"For 2012, we grew revenues by 19% and billings by an even stronger 24%," said Jim Tholen, chief financial officer, BroadSoft. "We were pleased that we delivered non-GAAP operating margins of 26% for the year and cash flow from operations of over $30 million. As we head into 2013, we remain excited by the opportunities to further drive adoption of BroadSoft-enabled solutions."

Guidance

For the first quarter of 2013, BroadSoft anticipates revenue of $37 to $40 million. The Company also expects to achieve earnings on a non-GAAP basis of $0.02 to $0.12 per diluted common share.

For the full year 2013, BroadSoft expects revenue of $181 to $189 million. This range assumes that we do not recognize any material contribution from amounts currently held in our long-term deferred revenue balance. The Company anticipates full year 2013 earnings on a non-GAAP basis of $1.10 to $1.35 per diluted common share. 

"Regarding our revenue guidance for 2013, we expect to see continued strong growth in our enterprise Unified Communications software and cloud offerings. We anticipate that this strong growth will be partially offset by lower consumer applications revenue prior to service providers ramping up their voice over LTE investment as well as a decline in our professional services revenue given timing issues related to professional services revenue recognized in 2011 and 2012 from prior periods," commented Tholen.

Conference Call

BroadSoft will discuss its fourth quarter and full year 2012 results and its business outlook today via teleconference at 5:00 p.m. Eastern Time. To participate in the teleconference, callers can dial the toll free number 1-877-312-5517 (U.S. callers only) or 1-760-666-3772 (from outside the U.S.). The conference call can also be heard live via audio webcast at http://investors.broadsoft.com/events.cfm. To help ensure the conference begins on time, please dial in or connect via the web five minutes prior to the scheduled start time. 

For those unable to participate in the live call, a recording will be available shortly after the conclusion of the call at http://investors.broadsoft.com/events.cfm and will remain available until immediately prior to our next earnings call.

BroadSoft has provided in this release, and will provide on this afternoon's teleconference, financial information that has not been prepared in accordance with generally accepted accounting principles, or GAAP. BroadSoft uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating BroadSoft's ongoing operational performance. BroadSoft's management regularly uses these non-GAAP financial measures to understand and manage its business and believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance by excluding certain non-cash expenses, and may include additional adjustments for items that are infrequent in nature. BroadSoft believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in BroadSoft's industry, many of which present similar non-GAAP financial measures to investors. A reconciliation of the non-GAAP financial measures included in this release and to be discussed on this afternoon's teleconference to the most directly comparable GAAP financial measures is set forth below.

Non-GAAP financial measures:

Non-GAAP net income and net income per share. BroadSoft defines non-GAAP net income as net income plus stock-based compensation expense, amortization expense for acquired intangible assets, non-cash interest expense on the Company's convertible notes, and non-cash tax expense included in the GAAP tax provision. BroadSoft defines non-GAAP income per share as non-GAAP net income divided by the weighted average shares outstanding. BroadSoft considers these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of certain non-cash expenses so management and investors can compare BroadSoft's core business operating results over multiple periods.

Non-GAAP gross profit, license gross profit, subscription and maintenance support gross profit, and professional services and other gross profit. BroadSoft defines non-GAAP gross profit as gross profit plus stock-based compensation expense and amortization expense for acquired intangible assets. BroadSoft considers non-GAAP gross profit to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and its investors can compare BroadSoft's sales margins over multiple periods. Where BroadSoft provides further breakdown of non-GAAP gross profit between license, subscription and maintenance support and professional services and other, the Company adds back the stock-based compensation expense and amortization expense, as applicable, to the related gross profit.

Non-GAAP license cost of revenue, subscription and maintenance support cost of revenue, and professional services and other cost of revenue. BroadSoft defines non-GAAP cost of revenue less stock-based compensation expense and amortization expense for acquired intangible assets. BroadSoft considers non-GAAP cost of revenue to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and its investors can compare BroadSoft's cost of revenue over multiple periods. Where BroadSoft provides further breakdown of non-GAAP cost of revenue between license, subscription and maintenance support and professional services and other, the Company subtracts the stock-based compensation expense and amortization expense, as applicable, to the related cost of revenue.

Non-GAAP income from operations. BroadSoft defines non-GAAP income from operations as income from operations plus stock-based compensation expense and amortization expense for acquired intangible assets. BroadSoft considers non-GAAP income from operations to be a useful metric for management and investors because it excludes the effect of certain non-cash expenses so management and investors can compare BroadSoft's core business operating results over multiple periods. Where BroadSoft provides further breakdown of non-GAAP operating expenses for sales and marketing, research and development and general and administrative, the Company deducts stock-based compensation expense included in the applicable expense item.

Billings. BroadSoft defines billings as revenue plus the net change in our deferred revenue balance for a particular period. BroadSoft believes that billings is a key measure of our business activity.

With respect to our expectations under "Guidance" above, reconciliation of non-GAAP earnings per share guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of non-cash income taxes, which are extremely difficult to project as a result of our tax status in a number of foreign jurisdictions, and stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

The presentation of non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP income from operations, billings and other non-GAAP financial measures in this release and on this afternoon's teleconference is not meant to be a substitute for "net income," "net income per share," "gross margin," "income from operations" or other financial measures presented in accordance with GAAP, but rather should be evaluated in conjunction with such data. BroadSoft's definition of "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations," "billings" and other non-GAAP financial measures may differ from similarly titled non-GAAP measures used by other companies and may differ from period to period. In reporting non-GAAP measures in the future, management may make other adjustments for expenses and gains it does not consider reflective of core operating performance in a particular period and may modify "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations," "billings" and such other non-GAAP measures by excluding these expenses and gains.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "anticipate," "enable," "expect," "will," "believe," "continue" and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company's future financial performance set forth under the heading "Guidance." The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: the Company's dependence on the success of BroadWorks® and on its service provider customers to sell services using its applications; the Company's dependence in large part on service providers' continued deployment of, and investment in, their IP-based networks; claims that the Company infringes the intellectual property rights of others; the Company's ability to integrate and achieve the expected benefits from its recent acquisitions, including Adaption Technologies; and the Company's ability to expand its product offerings, as well as those factors contained in the "Risk Factors" sections of the Company's Form 10-K for the year ended December 31, 2012 filed with the SEC on February 27, 2013, and in the Company's other filings with the SEC. All information in this release is as of February 27, 2013. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in the Company's expectations.

About BroadSoft

BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services.

Financial Statements

The financial statements set forth below are not the complete set of the Company's financial statements for the quarter and the year and are presented below without footnotes. Readers are encouraged to obtain and carefully review BroadSoft's Annual Report on Form 10-K for the year ended December 31, 2012, including all financial statements contained therein and the footnotes thereto, as filed with the SEC on February 27, 2013. Once filed with the SEC, the Form 10-K may be retrieved from the SEC's website at www.sec.gov or from BroadSoft's website at www.broadsoft.com.

BSFT-F

 
BroadSoft, Inc.
 
Condensed Consolidated Balance Sheets
(unaudited)
             
       
    December 31, 2012     December 31,
 2011
 
    (In thousands, except share and per share data)  
Assets:                
Current assets:                
  Cash and cash equivalents   $ 90,545     $ 94,072  
  Short-term investments     73,075       92,749  
  Accounts receivable, net of allowance for doubtful accounts of $139 and $54 at December 31, 2012 and December 31, 2011, respectively     48,980       47,048  
  Deferred tax assets     3,732       12,968  
  Other current assets     10,796       4,435  
    Total current assets     227,128       251,272  
Long-term assets:                
  Property and equipment, net     7,361       4,221  
  Long-term investments     30,102       5,000  
  Restricted cash     584       959  
  Intangible assets, net     11,247       8,842  
  Goodwill     37,529       17,276  
  Other long-term assets     12,955       3,386  
    Total long-term assets     99,778       39,684  
      Total assets   $ 326,906     $ 290,956  
Liabilities and stockholders' equity:                
Current liabilities:                
  Accounts payable and accrued expenses   $ 15,686     $ 14,999  
  Notes payable and bank loans, current portion     555       891  
  Deferred revenue, current portion     49,368       55,372  
      Total current liabilities     65,609       71,262  
                 
Convertible senior notes     86,451       81,737  
Notes payable and bank loans     414       461  
Deferred revenue     11,781       1,764  
Deferred tax liabilities     -       1,433  
Other long-term liabilities     1,416       1,056  
      Total liabilities     165,671       157,713  
                 
Stockholders' equity:                
                 
Common stock, par value $0.01 per share; 100,000,000 shares authorized at December 31, 2012 and December 31, 2011; 27,913,471 and 27,106,393 shares issued and outstanding at December 31, 2012 and December 31, 2011, respectively     279       271  
  Additional paid-in capital     208,073       191,714  
  Accumulated other comprehensive loss     (3,008 )     (2,557 )
  Accumulated deficit     (44,109 )     (56,185 )
Total stockholders' equity     161,235       133,243  
Total liabilities and stockholders' equity   $ 326,906     $ 290,956  
                 
                 
   
BroadSoft, Inc.  
   
Condensed Consolidated Statements of Operations  
(Unaudited)  
   
                   
    Three Months Ended December 31,   Year Ended
December 31,
 
    2012   2011   2012   2011  
    (In thousands, except per share data)  
Revenue:                          
  License software   $ 24,430   $ 25,482   $ 89,750   $ 77,289  
  Subscription and maintenance support     16,707     12,517     58,249     42,462  
  Professional services and other     4,672     2,552     16,843     18,313  
    Total revenue     45,809     40,551     164,842     138,064  
                           
Cost of revenue:                          
  License software     1,739     1,800     8,643     6,077  
  Subscription and maintenance support     4,319     2,829     14,831     10,419  
  Professional services and other     2,310     2,205     9,012     8,478  
    Total cost of revenue     8,368     6,834     32,486     24,974  
                           
Gross profit     37,441     33,717     132,356     113,090  
                           
Operating expenses:                          
  Sales and marketing     13,835     12,234     47,911     38,376  
  Research and development     9,695     7,611     36,178     27,744  
  General and administrative     5,468     5,383     22,863     19,534  
    Total operating expenses     28,998     25,228     106,952     85,654  
                           
Income from operations     8,443     8,489     25,404     27,436  
                           
Other expense, net:     1,661     1,600     6,470     3,314  
Income before income taxes     6,782     6,889     18,934     24,122  
  Provision for (benefit from) income taxes     1,903     1,422     6,858     (8,175 )
Net income   $ 4,879   $ 5,467   $ 12,076   $ 32,297  
                           
                           
Net income per common share available to BroadSoft, Inc. common stockholders:                          
  Basic   $ 0.18   $ 0.20   $ 0.44   $ 1.21  
  Diluted   $ 0.17   $ 0.19   $ 0.43   $ 1.15  
                           
Weighted average common shares outstanding:                          
  Basic     27,861     27,065     27,581     26,603  
  Diluted     28,515     28,142     28,353     27,987  
                           
Stock-based compensation expense included above:                          
  Cost of revenue   $ 555   $ 352   $ 1,831   $ 916  
  Sales and marketing     1,764     769     5,609     1,984  
  Research and development     1,558     638     4,498     1,901  
  General and administrative     847     549     3,084     2,400  
                           
                           
   
BroadSoft, Inc.  
   
Summary of Consolidated Cash Flow Activity  
(Unaudited)  
   
                   
    Year ended December 31,  
    2012     2011     2010  
    (in thousands)  
Net cash provided by operating activities   30,598     28,575     19,386  
Net cash used in investing activities   (34,153 )   (99,136 )   (24,274 )
Net cash (used in) provided by financing activities   (121 )   117,431     29,203  
                   
 
 
Billings
(Unaudited)
 
               
    Year ended December 31,
    2012   2011     2010
               
Beginning of period deferred revenue balance   $ 57,136   $ 59,264     $ 40,047
End of period deferred revenue balance     61,149     57,136       59,264
Increase (decrease) in deferred revenue     4,013     (2,128 )     19,217
                     
Revenue     164,842     138,064       95,623
Revenue plus net change in deferred revenue     168,855     135,936       114,840
                     
                     
   
BroadSoft, Inc.  
   
Reconciliation of Non-GAAP Financial Measures  
(Unaudited)  
                               
    Three Months Ended
December 31,
    Three Months Ended     Years Ended
December 31,
 
    2012     2011     September
30, 2012
    2012     2011  
    (In thousands)  
                                         
Non-GAAP cost of revenue:                                        
GAAP license cost of revenue   $ 1,739     $ 1,800     $ 2,030     $ 8,643     $ 6,077  
                                         
Less:                                        
Stock-based compensation expense     124       128       113       553       331  
Amortization of acquired intangibles     244       233       214       938       704  
                                         
Non-GAAP license cost of revenue   $ 1,371     $ 1,439     $ 1,703     $ 7,152     $ 5,042  
                                         
GAAP subscription and maintenance support cost of revenue   $ 4,319     $ 2,829     $ 3,667     $ 14,831     $ 10,419  
                                         
Less:                                        
Stock-based compensation expense     316       133       170       839       334  
Amortization of acquired intangibles     570       336       516       1,722       591  
                                         
Non-GAAP subscription and maintenance support cost of revenue   $ 3,433     $ 2,360     $ 2,981     $ 12,270     $ 9,494  
                                         
GAAP professional services and other cost of revenue   $ 2,310     $ 2,205     $ 2,028     $ 9,012     $ 8,478  
                                         
Less:                                        
Stock-based compensation expense     115       91       102       439       251  
                                         
Non-GAAP professional services and other cost of revenue   $ 2,195     $ 2,114     $ 1,926     $ 8,573     $ 8,227  
                                         
Non-GAAP gross profit:                                        
GAAP gross profit   $ 37,441     $ 33,717     $ 32,449     $ 132,356     $ 113,090  
  (percent of total revenue)     82 %     83 %     81 %     80 %     82 %
Plus:                                        
  Stock-based compensation expense     555       352       385       1,831       916  
  Amortization of acquired intangible assets     814       569       730       2,660       1,295  
                                         
Non-GAAP gross profit   $ 38,810     $ 34,638     $ 33,564     $ 136,847     $ 115,301  
  (percent of total revenue)     85 %     85 %     84 %     83 %     84 %
                                         
GAAP license gross profit   $ 22,691     $ 23,682     $ 19,524     $ 81,107     $ 71,212  
  (percent of related revenue)     93 %     93 %     91 %     90 %     92 %
Plus:                                        
  Stock-based compensation expense     124       128       113       553       331  
  Amortization of acquired intangible assets     244       233       214       938       704  
                                         
Non-GAAP license gross profit   $ 23,059     $ 24,043     $ 19,851     $ 82,598     $ 72,247  
  (percent of related revenue)     94 %     94 %     92 %     92 %     93 %
                                         
GAAP subscription and maintenance support gross profit   $ 12,388     $ 9,688     $ 11,708     $ 43,418     $ 32,043  
  (percent of related revenue)     74 %     77 %     76 %     75 %     75 %
Plus:                                        
  Stock-based compensation expense     316       133       170       839       334  
  Amortization of acquired intangible assets     570       336       516       1,722       591  
                                         
Non-GAAP subscription and maintenance support gross profit   $ 13,274     $ 10,157     $ 12,394     $ 45,979     $ 32,968  
  (percent of related revenue)     79 %     81 %     81 %     79 %     78 %
                                         
GAAP professional services and other gross profit   $ 2,362     $ 347     $ 1,217     $ 7,831     $ 9,835  
  (percent of related revenue)     51 %     14 %     38 %     46 %     54 %
Plus:                                        
  Stock-based compensation expense     115       91       102       439       251  
                                         
Non-GAAP professional services and other gross profit   $ 2,477     $ 438     $ 1,319     $ 8,270     $ 10,086  
  (percent of related revenue)     53 %     17 %     41 %     49 %     55 %
                                         
                                         
   
BroadSoft, Inc.  
   
Reconciliation of Non-GAAP Financial Measures (continued)  
(Unaudited)  
                               
    Three Months Ended
December 31,
    Three Months Ended     Years Ended
December 31,
 
    2012     2011     September
30, 2012
    2012     2011  
    (In thousands)  
Non-GAAP income from operations:                                        
GAAP income from operations   $ 8,443     $ 8,489     $ 6,476     $ 25,404     $ 27,436  
  (percent of total revenue)     18 %     21 %     16 %     15 %     20 %
Plus:                                        
  Stock-based compensation expense     4,724       2,308       3,326       15,022       7,201  
  Amortization of acquired intangible assets     814       569       730       2,660       1,295  
                                         
Non-GAAP income from operations   $ 13,981     $ 11,366     $ 10,532     $ 43,086     $ 35,932  
  (percent of total revenue)     31 %     28 %     26 %     26 %     26 %
                                         
GAAP operating expense   $ 28,998     $ 25,228     $ 25,973     $ 106,952     $ 85,654  
                                         
Less:                                        
  Stock-based compensation expense     4,169       1,956       2,941       13,191       6,285  
                                         
Non-GAAP operating expense   $ 24,829     $ 23,272     $ 23,032     $ 93,761     $ 79,369  
  (as percent of total revenue)     54 %     57 %     57 %     57 %     57 %
                                         
GAAP sales and marketing expense   $ 13,835     $ 12,234     $ 11,396     $ 47,911     $ 38,376  
                                         
Less:                                        
  Stock-based compensation expense     1,764       769       1,317       5,609       1,984  
                                         
Non-GAAP sales and marketing expense   $ 12,071     $ 11,465     $ 10,079     $ 42,302     $ 36,392  
  (as percent of total revenue)     26 %     28 %     25 %     26 %     26 %
                                         
GAAP research and development expense   $ 9,695     $ 7,611     $ 8,876     $ 36,178     $ 27,744  
                                         
Less:                                        
  Stock-based compensation expense     1,558       638       1,040       4,498       1,901  
                                         
Non-GAAP research and development expense   $ 8,137     $ 6,973     $ 7,836     $ 31,680     $ 25,843  
  (as percent of total revenue)     18 %     17 %     20 %     19 %     19 %
                                         
GAAP general and administrative expense   $ 5,468     $ 5,383     $ 5,701     $ 22,863     $ 19,534  
                                         
Less:                                        
  Stock-based compensation expense     847       549       584       3,084       2,400  
                                         
Non-GAAP general and administrative expense   $ 4,621     $ 4,834     $ 5,117     $ 19,779     $ 17,134  
  (as percent of total revenue)     10 %     12 %     13 %     12 %     12 %
                                           
                                           
   
BroadSoft, Inc.  
   
Reconciliation of Non-GAAP Financial Measures (continued)  
(Unaudited)  
                       
    Three Months Ended
December 31,
  Three Months Ended   Years Ended
December 31,
 
    2012   2011   September
30, 2012
  2012   2011  
    (In thousands, except per share data)  
Non-GAAP net income and income per share:                                
GAAP net income   $ 4,879   $ 5,467   $ 3,140   $ 12,076   $ 32,297  
                                 
Adjusted for:                                
  Stock-based compensation expense     4,724     2,308     3,326     15,022     7,201  
  Amortization of acquired intangible assets     814     569     730     2,660     1,295  
  Non-cash interest expense on our convertible notes     1,319     1,230     1,286     5,120     2,561  
  Non-cash tax provision (benefit)     1,630     1,202     1,505     6,023     (8,879 )
                                 
Non-GAAP net income   $ 13,366   $ 10,776   $ 9,987   $ 40,901   $ 34,475  
                                 
                                 
GAAP net income per basic common share   $ 0.18   $ 0.20   $ 0.11   $ 0.44   $ 1.21  
                                 
Adjusted for:                                
  Stock-based compensation expense     0.17     0.09     0.12     0.54     0.27  
  Amortization of acquired intangible assets     0.03     0.02     0.03     0.10     0.05  
  Non-cash interest expense on our convertible notes     0.04     0.05     0.05     0.18     0.10  
  Non-cash tax provision (benefit)     0.06     0.04     0.05     0.22     (0.33 )
                                 
Non-GAAP net income per basic common share   $ 0.48   $ 0.40   $ 0.36   $ 1.48   $ 1.30  
                                 
                                 
GAAP net income per diluted common share   $ 0.17   $ 0.19   $ 0.11   $ 0.43   $ 1.15  
                                 
Adjusted for:                                
  Stock-based compensation expense     0.16     0.08     0.12     0.53     0.26  
  Amortization of acquired intangible assets     0.03     0.02     0.03     0.09     0.05  
  Non-cash interest expense on our convertible notes     0.05     0.05     0.04     0.18     0.09  
  Non-cash tax provision (benefit)     0.06     0.04     0.05     0.21     (0.32 )
                                 
Non-GAAP net income per diluted common share   $ 0.47   $ 0.38   $ 0.35   $ 1.44   $ 1.23  
                                 
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