BARRACUDA NETWORKS INC CAMPBELL, Calif., Oct. 9, 2014 /PRNewswire/ -- Barracuda Networks, Inc. (NYSE: CUDA), a leading provider of cloud-connected security and storage solutions, today announced results for its second quarter of fiscal 2015, which ended August 31, 2014.
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Billings & Revenue: For the second quarter of fiscal 2015, gross billings grew 18% to $89.0 million, up from $75.6 million in the second quarter of fiscal 2014. Total revenue increased 19% to $68.7 million, up from $57.8 million in the second quarter of fiscal 2014. Appliance revenue in the second quarter of fiscal 2015 increased to $20.7 million compared to the second quarter of fiscal 2014, and recurring subscription revenue grew to $48.0 million in the second quarter of fiscal 2015 compared to the second quarter of fiscal 2014, representing 70% of total revenue.
Net Income: GAAP net income in the second quarter of fiscal 2015 was $0.7 million, or $0.01 earnings per share, based on a diluted share count of 53.7 million. Non-GAAP net income for the second quarter of fiscal 2015 was $4.6 million, or $0.08 earnings per share. Non-GAAP net income excludes $3.7 million in stock-based compensation expense, $2.2 million in income tax benefit of non-GAAP exclusions, $1.1 million in amortization of intangibles, $0.6 million in acquisition and other non-recurring charges, and $0.6 million in other income and expense. A reconciliation between GAAP and non-GAAP information is contained in the tables below.
"We are pleased to report another quarter of strong performance on both our top and bottom line," said BJ Jenkins, president and CEO. "In the second quarter, we added more than 11,250 new active subscribers, bringing our total active subscribers to more than 225,000. Our results reflect our continued traction in our faster-growing categories of storage and network and application security. We recently introduced a number of new products and feature enhancements to our portfolio, which we believe will strengthen our position as a leading provider of security and storage solutions that simplify the lives of IT professionals."
"We had strong financial performance in the second quarter, with record results in gross billings, balanced with a strong bottom line," said David Faugno, CFO. "In the quarter Adjusted EBITDA was $20 million, or 29% of total revenue. On a trailing 12-month basis, adjusted free cash flow was $46 million, growing 28% year-over-year."
Recent Company Highlights
-- Product Portfolio Expansion - Acquired C2C Systems to expand information
management and archiving solution portfolio to include software-based
archiving, eDiscovery and PST management.
-- Storage Product Innovation - Launched Data Production Plus initiative
which includes new versions and updates across entire storage portfolio,
including: Barracuda Backup version 6.0 featuring faster recovery times
and Local Control to administer and replicate data in a private
environment; Barracuda Message Archiver version 4.0 to extend archive
capacity to the Barracuda Cloud and expand storage and compute resources
with stackable appliances; Barracuda Copy Site Server to enable hybrid
onsite and cloud-based file sync and share; Barracuda SignNow version
4.0 with integrations to Salesforce, Office365 and Google Apps; and a
new SignNow appliance to support deployments in both cloud and
on-premises environments. Announced the Barracuda Backup 290 targeted
for branch offices looking to back up local data, and doubled the
storage capacity of the Barracuda Backup 390.
-- Security Product Innovation - Released a number of new product updates
across the security portfolio, including: Barracuda NG Firewall version
6.0 with Advanced Threat Detection and extended secure mobile device
access; and Barracuda Spam Firewall version 6.1 featuring bulk
categorization and advanced malware protection.
-- Public Cloud Momentum - Announced the Barracuda Web Application Firewall
and Barracuda NG Firewall Azure Certified designation with availability
in the Microsoft Azure Gallery; Barracuda Spam Firewall availability on
Microsoft Azure; and Barracuda Spam Firewall annual pricing availability
on Amazon Web Services.
-- Industry Recognition - Received a number of industry accolades and
achievements, including: Volume leader in Content Security appliances
for Q2 CY2014 by IDC; Number one vendor in unit volume for integrated
PBBA and top five in overall revenue for total PBBA by IDC for Q2
CY2014; Highest Security Effectiveness score for Barracuda Web
Application Firewall in NSS Labs Web Application Firewall group test;
Five Star Review and Best Buy rating from SC Magazine for Barracuda Spam
Firewall; and Best Security Hardware vendor by ChannelPro Network's 2014
Readers' Choice awards.
Conference Call Information
Barracuda will host a conference call and corresponding live webcast at 2:00 p.m. PT today. To access the conference call, dial 1-877-201-0168 for the U.S. and Canada or +1-647-788-4901 for international callers, and enter conference ID 95144768#. The webcast will be available live on the investor relations section of the Company's website at https://investors.barracuda.com, and via replay beginning approximately two hours after the completion of the call for a period of one year. An audio replay of the call will be available to investors beginning at approximately 5:00 p.m. PT today through October 14, 2014 by dialing 1-855-859-2056 in the U.S. and Canada, or +1-404-537-3406 for international callers, and entering conference ID 95144768#. Additional information can be found in an accompanying supplemental investor slide presentation located at https://investors.barracuda.com.
Forward-Looking Statements
This announcement contains forward-looking statements related to future product performance and potential results from new initiatives that involve risks and uncertainties, including statements regarding the Company's expectations regarding financial performance and the potential impact of our new and updated products. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including, but not limited to: fluctuations in demand for the Company's products and services; a highly competitive business environment for network security and storage solutions; the Company's effectiveness in controlling expenses, the possibility that the Company might experience delays in the development of new technology and products; customer response to its new technology and products; risks related to pending or future litigation and regulatory matters; and a dependency on third parties for certain components of the Company's products. The Company undertakes no obligation to update the forward-looking information in this release. More information about potential factors that could affect the Company's business and financial results is included in its filings with the Securities and Exchange Commission, including, without limitation, under the captions: "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk Factors," which are on file with the Securities and Exchange Commission.
Non-GAAP Financial Measures
Barracuda provides all financial information required in accordance with generally accepted accounting principles (GAAP). To supplement our consolidated financial statements presented in accordance with GAAP, we are also providing with this press release non-GAAP net income, non-GAAP operating income, adjusted EBITDA and adjusted free cash flow. In preparing our non-GAAP information, we have excluded certain amounts as set forth in the attached financial tables and footnotes. We believe that excluding these items provides both management and investors with additional insight into our current operations and the trends affecting the Company. In particular, management finds it useful to exclude these items in order to more readily correlate the Company's operating activities with the Company's ability to generate cash from operations. Accordingly, management uses these non-GAAP measures, along with the comparable GAAP information, in evaluating our historical performance and in planning our future business activities. Please note that our non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information we present should be considered in conjunction with, and not as a substitute for, our financial information presented in accordance with GAAP. All forward-looking non-GAAP financial measures discussed on our earnings call excludes certain items such as stock-based compensation, amortization of intangibles and other non-recurring adjustments. While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis, the company has provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for three and six months ended August 31, 2014 non-GAAP results included in this press release. We have provided a non-GAAP reconciliation of the Condensed Consolidated Statement of Operations for the periods presented in this release, which exclude certain amounts as set forth in the attached financial tables and footnotes for these periods. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company's ongoing performance as a business. Barracuda uses both GAAP and non-GAAP measures to evaluate and manage its operations.
About Barracuda Networks Inc. (NYSE: CUDA)
Barracuda provides cloud-connected security and storage solutions that simplify IT. These powerful, easy-to-use and affordable solutions are trusted by more than 150,000 organizations worldwide and are delivered in appliance, virtual appliance, cloud and hybrid deployments. Barracuda's customer-centric business model focuses on delivering high-value, subscription-based IT solutions that provide end-to-end network and data security. For additional information, please visit http://www.barracuda.com.
Barracuda Networks, Barracuda and the Barracuda Networks logo are registered trademarks or trademarks of Barracuda Networks, Inc. in the US and other countries.
Contacts:
Investor Relations: Adam Carson; +1-408-342-5480; ir@barracuda.com
Corporate Communications: Mary Catherine Petermann; +1 404-307-6290; mc@barracuda.com
Barracuda Networks, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
August 31, 2014 February 28, 2014
--------------- -----------------
Assets
Current assets:
Cash and cash equivalents $156,559 $135,879
Accounts receivable, net of allowance
for doubtful accounts 36,739 27,836
Inventories 5,183 5,648
Deferred costs 28,157 25,707
Deferred income taxes 33,840 30,156
Other current assets 5,637 4,900
-----
Total current assets 266,115 230,126
Property and equipment, net 22,230 20,558
Deferred costs, non-current 26,425 24,572
Deferred income taxes, non-current 31,198 28,515
Other non-current assets 2,033 1,851
Intangible assets, net 10,652 8,420
Goodwill 41,025 36,014
Total assets $399,678 $350,056
======== ========
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable $12,708 $13,743
Accrued payroll and related benefits 8,048 8,494
Other accrued liabilities 10,473 9,374
Deferred revenue 187,153 167,562
Deferred income taxes 291 260
Note payable 244 237
---
Total current liabilities 218,917 199,670
Long-term liabilities:
Deferred revenue, non-current 156,525 145,595
Deferred income taxes, non-current 951 84
Note payable, non-current 4,510 4,635
Other long-term liabilities 7,664 5,727
Stockholders' equity (deficit):
Common stock 52 52
Additional paid-in capital 295,003 278,551
Accumulated other comprehensive loss (1,392) (817)
Accumulated deficit (282,552) (283,441)
---------
Total stockholders' equity
(deficit) 11,111 (5,655)
Total liabilities and
stockholders' equity (deficit) $399,678 $350,056
======== ========
Barracuda Networks, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share information)
(Unaudited)
Three months ended August 31, Six months ended August 31,
----------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
Revenue:
Appliance $20,676 $17,906 $41,512 $35,409
Subscription 47,976 39,884 93,349 78,658
------------
Total revenue 68,652 57,790 134,861 114,067
Cost of revenue 14,044 13,407 28,450 26,481
------ ------ ------ ------
Gross profit 54,608 44,383 106,411 87,586
Operating expenses:
Research and
development 13,826 11,638 26,778 22,480
Sales and
marketing 31,031 28,392 60,510 57,228
General and
administrative 8,624 7,827 17,188 14,505
--------------
Total operating expenses 53,481 47,857 104,476 94,213
------ ------ ------- ------
Income (loss) from operations 1,127 (3,474) 1,935 (6,627)
Other income (expense), net (681) 7 (738) (450)
---- --- ---- ----
Income (loss) before income
taxes and non-controlling
interest 446 (3,467) 1,197 (7,077)
Benefit (provision) for income
taxes 292 1,089 (308) 2,136
--- ----- ---- -----
Consolidated net income (loss) 738 (2,378) 889 (4,941)
Net loss attributable to non-
controlling interest - 203 - 362
Net income (loss) attributable
to Barracuda Networks, Inc. $738 $(2,175) $889 $(4,579)
==== ======= ==== =======
Net income (loss) per share attributable to Barracuda Networks,
Inc.:
Basic $0.01 $(0.08) $0.02 $(0.16)
=====
Diluted $0.01 $(0.08) $0.02 $(0.16)
=======
Weighted-average shares used to compute net income (loss) per
share attributable to Barracuda Networks, Inc.:
Basic 51,667 28,182 51,412 28,141
=====
Diluted 53,743 28,182 53,675 28,141
=======
Barracuda Networks, Inc.
Reconciliation of Selected GAAP to Non-GAAP Financial Measures
(in thousands)
(Unaudited)
Three months ended August 31, Six months ended August 31,
----------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP cost of revenue $14,044 $13,407 $28,450 $26,481
Amortization of intangible assets
(1) 673 1,138 1,346 2,128
Depreciation expense (2) 756 551 1,428 1,029
Stock-based compensation expense
(3) 73 43 125 88
Non-GAAP cost of revenue $12,542 $11,675 $25,551 $23,236
======= ======= ======= =======
GAAP sales and marketing
expense $31,031 $28,392 $60,510 $57,228
Amortization of intangible assets
(1) 438 470 741 918
Depreciation expense (2) 38 59 77 116
Stock-based compensation expense
(3) 821 366 1,403 700
Non-GAAP sales and
marketing expense $29,734 $27,497 $58,289 $55,494
======= ======= ======= =======
GAAP research and
development expense $13,826 $11,638 $26,778 $22,480
Depreciation expense (2) 156 137 307 264
Stock-based compensation expense
(3) 902 635 1,650 1,265
Acquisition and other non-
recurring charges (4) 383 375 755 500
Non-GAAP research and
development expense $12,385 $10,491 $24,066 $20,451
======= ======= ======= =======
GAAP general and
administrative expense $8,624 $7,827 $17,188 $14,505
Amortization of intangible assets
(1) - 10 - 17
Depreciation expense (2) 274 124 523 262
Stock-based compensation expense
(3) 1,940 1,587 3,640 3,075
Acquisition and other non-
recurring charges (4) 257 302 274 367
Non-GAAP general and
administrative expense $6,153 $5,804 $12,751 $10,784
====== ====== ======= =======
GAAP total expense $67,525 $61,264 $132,926 $120,694
Amortization of intangible assets
(1) 1,111 1,618 2,087 3,063
Depreciation expense (2) 1,224 871 2,335 1,671
Stock-based compensation expense
(3) 3,736 2,631 6,818 5,128
Acquisition and other non-
recurring charges (4) 640 677 1,029 867
Non-GAAP total expense $60,814 $55,467 $120,657 $109,965
======= ======= ======== ========
Depreciation expense (2) 1,224 871 2,335 1,671
Non-GAAP total expense
including depreciation $62,038 $56,338 $122,992 $111,636
======= ======= ======== ========
Barracuda Networks, Inc.
Reconciliation of Selected GAAP to Non-GAAP Financial Measures
(in thousands, except per share information)
(Unaudited)
Three months ended August 31, Six months ended August 31,
----------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP operating income (loss) $1,127 $(3,474) $1,935 $(6,627)
Amortization of intangible assets
(1) 1,111 1,618 2,087 3,063
Stock-based compensation expense
(3) 3,736 2,631 6,818 5,128
Acquisition and other non-
recurring charges (4) 640 677 1,029 867
Non-GAAP operating income $6,614 $1,452 $11,869 $2,431
====== ====== ======= ======
GAAP net income (loss)
attributable to Barracuda
Networks, Inc. $738 $(2,175) $889 $(4,579)
Amortization of intangible assets
(1) 1,111 1,618 2,087 3,063
Stock-based compensation expense
(3) 3,736 2,631 6,818 5,128
Acquisition and other non-
recurring charges (4) 640 677 1,029 867
Income tax effect of non-GAAP
exclusions (5) (2,243) (1,484) (3,186) (2,708)
Other income adjustments (6) 569 (191) 516 172
Non-controlling interest (7) - (203) - (362)
Non-GAAP net income $4,551 $873 $8,153 $1,581
====== ==== ====== ======
Non-GAAP diluted earnings
per share (8) $0.08 $0.02 $0.15 $0.03
===== ===== ===== =====
Weighted-average shares
used to compute diluted
earnings per share 53,743 46,822 53,675 46,582
====== ====== ====== ======
(1) Amortization of Intangible Assets.
We provide non-GAAP information
which excludes expenses for the
amortization of intangible assets,
as well as certain losses from
disposal of such assets, that
primarily relate to purchased
intangible assets associated with
our acquisitions. We believe that
eliminating this expense from our
non-GAAP measures is useful to
investors, because the amortization
of intangible assets can be
inconsistent in amount and
frequency and is significantly
impacted by the timing and
magnitude of our acquisition
transactions, which also vary in
frequency from period to period.
Accordingly, we analyze the
performance of our operations in
each period without regard to such
expenses.
-----------------------------------
(2) Depreciation Expense. We provide
non-GAAP information which
excludes depreciation expense
related to the amortization of
property and equipment, as well as
certain losses from disposal of
such assets. We believe that
eliminating this expense from our
non-GAAP measures is useful to
investors, because the acquisition
of property and equipment, and the
corresponding depreciation expense,
can be inconsistent in amount and
can vary from period to period.
-----------------------------------
(3) Stock-Based Compensation Expense. We
provide non-GAAP information which
excludes expenses for stock-based
compensation. We believe the
exclusion of this item allows for
financial results that are more
indicative of our continuing
operations. We believe that the
exclusion of stock-based
compensation expense provides for a
better comparison of our operating
results to prior periods and to our
peer companies as the calculations
of stock-based compensation vary
from period to period and company to
company due to different valuation
methodologies, subjective
assumptions and the variety of award
types.
-------------------------------------
(4) Acquisition and Other Non-Recurring
Charges. We exclude certain expense
items resulting from acquisitions
and other non-recurring charges,
which we do not expect to recur in
our continuing operating results.
We believe that adjusting for these
charges allows us to better compare
results from period to period in
order to assess the ongoing
operating results of our business.
The charges include: (i) costs
associated with an internal
investigation of export control
compliance and (ii) legal,
accounting and advisory fees, to
the extent associated with
acquisitions, as well as contingent
consideration payments under the
terms of certain acquisition
agreements.
------------------------------------
(5) Income Tax Effect of Non-GAAP
Exclusions. We believe providing
financial information with and
without the income tax effect of
excluding items related to our non-
GAAP financial measures provide our
management and users of the
financial statements with better
clarity regarding the ongoing
performance and future liquidity of
our business. Excluded items
include, but are not limited to:
(i) amortization expense of
intangible assets, (ii) stock-
based compensation expense, and
(iii) acquisition and other non-
recurring charges.
------------------------------------
(6) Other Income Adjustments. We
provide non-GAAP information that
excludes the effect of certain
other income and losses. These
adjustments most significantly
consist of foreign currency re-
measurement gains and losses. For
all non-functional currency
account balances, the re-
measurement of such balances to the
functional currency will result in
either a foreign exchange gain or a
loss which is recorded in other
income (expense), net. We believe
that eliminating these items from
our non-GAAP measures is useful to
investors, because foreign currency
re-measurement adjustments can be
inconsistent in amount and can vary
from period to period.
------------------------------------
(7) Non-Controlling Interest. We
provide non-GAAP information that
includes the results related to
entities in which we hold a
minority interest. We believe that
adjusting for these amounts allows
us to better compare results from
period to period in order to assess
the ongoing operating results of
our business, including entities
for which we own a minority
interest.
------------------------------------
(8) Non-GAAP Diluted Earnings Per
Share. We provide non-GAAP diluted
earnings per share. The non-GAAP
diluted earnings per share amount
is calculated based on our non-
GAAP net income divided by the
weighted-average diluted shares
outstanding for the period.
-----------------------------------
Barracuda Networks, Inc.
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
(in thousands)
(Unaudited)
Three months ended August 31, Six months ended August 31,
----------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP net income (loss)
attributable to Barracuda
Networks, Inc. $738 $(2,175) $889 $(4,579)
Deferred revenue, end of period 342,663 286,792 342,663 286,792
Less: Deferred revenue, beginning
of period (328,488) (274,444) (313,157) (261,243)
Less: Deferred costs, end of
period (54,582) (46,058) (54,582) (46,058)
Deferred costs, beginning of
period 52,549 42,556 50,279 39,470
Other expense (income), net 681 (7) 738 450
Provision (benefit) for income
taxes (292) (1,089) 308 (2,136)
Acquisition and other non-
recurring charges 640 677 1,029 867
Stock-based compensation expense 3,736 2,631 6,818 5,128
Amortization of intangible assets 1,111 1,618 2,087 3,063
Depreciation expense 1,224 871 2,335 1,671
Adjusted EBITDA (1) $19,980 $11,372 $39,407 $23,425
======= ======= ======= =======
(1) Adjusted EBITDA. We define
adjusted EBITDA as net income
(loss) plus increases in deferred
revenue and increases in the
associated deferred costs, plus
non-cash and non-operating
charges which include: (i) other
expense (income), net, (ii)
provision (benefit) for income
taxes, (iii) acquisition and
other non-recurring charges,
(iv) stock-based compensation
expense, (v) amortization of
intangible assets, including
certain losses on disposal of
intangible assets, and (vi)
depreciation expense, including
certain losses on disposal of
fixed assets. The deferred
revenue balance as of August 31,
2014 excludes the deferred
revenue assumed on acquisition of
C2C Systems Limited. We believe
adjusted EBITDA provides an
indication of profitability from
our operations, and provides a
consistent measure of our
performance from period to
period.
---------------------------------
Barracuda Networks, Inc.
Reconciliation of GAAP Cash Flows from Operating Activities to Adjusted Free Cash Flow
(in thousands)
(Unaudited)
Three months ended Six months ended
August 31, August 31,
------------------- -----------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP cash
flows from
operating
activities $15,475 $11,889 $20,882 $12,083
Purchase of
property and
equipment (2,186) (2,866) (3,775) (4,529)
Acquisition
and other
non-
recurring
charges (1) 390 393 775 3,469
Adjusted free
cash flow (2) $13,679 $9,416 $17,882 $11,023
======= ====== ======= =======
(1) Acquisition and Other Non-
Recurring Charges. We exclude
the cash flow impact resulting
from acquisitions and other non-
recurring charges, which we do
not expect to recur in our
continuing operating results. We
believe that adjusting for these
cash outflows allows us to
better compare results from
period to period in order to
assess the ongoing operating
results of our business. The
cash flows include: (i) payments
associated with our CEO
transition, (ii) payments
associated with an internal
investigation of export control
compliance, and (iii) legal,
accounting and advisory fee
payments, to the extent
associated with acquisitions, as
well as contingent consideration
payments under the terms of
certain acquisition agreements.
---------------------------------
(2) Adjusted Free Cash Flow. We
define adjusted free cash flow
as cash flows from operating
activities less the purchases of
property and equipment plus the
cash flow effect of acquisition
and other non-recurring
charges. We believe that
adjusting free cash flow to
exclude these charges allows us
to better compare results from
period to period in order to
assess the ongoing free cash
flow of our business. We believe
adjusted free cash flow is an
important liquidity measure that
reflects the cash generated by
the business after the purchase
of property and equipment that
can then be used for, among
other things, strategic
acquisitions, investments in the
business and funding ongoing
operations.
---------------------------------
On a trailing 12-month basis, adjusted free cash flow was the following:
Three months ended
Trailing 12-month as of August 31, 2014
November 30, February 28, 2014 May 31, 2014 August 31, 2014
2013
----
GAAP cash
flows from
operating
activities $10,593 $19,534 $5,407 $15,475 $51,009
Purchase of
property and
equipment (1,328) (1,759) (1,589) (2,186) (6,862)
Acquisition
and other
non-
recurring
charges 447 902 385 390 2,124
Adjusted free
cash flow $9,712 $18,677 $4,203 $13,679 $46,271
====== ======= ====== ======= =======
Barracuda Networks, Inc.
Reconciliation of GAAP Revenue to Gross Billings
(in thousands)
(Unaudited)
Three months ended August 31, Six months ended August 31,
----------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP Revenue $68,652 $57,790 $134,861 $114,067
Total deferred revenue, end of
period 342,663 286,792 342,663 286,792
Less: total deferred revenue,
beginning of period (328,488) (274,444) (313,157) (261,243)
Deferred revenue adjustments 6,208 5,485 12,268 10,872
-----
Total change in deferred
revenue and adjustments 20,383 17,833 41,774 36,421
Gross billings (1) $89,035 $75,623 $176,635 $150,488
======= ======= ======== ========
(1) Gross Billings. We define gross
billings as total revenue plus
the change in deferred revenue
and other adjustments, which
primarily consist of returns
and reserves with respect to
the 30-day right of return we
provide to customers, as well
as rebates for certain channel
partner activities. The
deferred revenue balance as of
August 31, 2014 excludes the
deferred revenue assumed on
acquisition of C2C Systems
Limited. We believe that gross
billings provide insight into
the sales of our solutions and
performance of our business.
--------------------------------
Barracuda Networks, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three months ended August 31, Six months ended August 31,
----------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
Operating activities
Consolidated net income
(loss) $738 $(2,378) $889 $(4,941)
Adjustments to reconcile consolidated net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 2,335 2,489 4,422 4,734
Stock-based compensation 3,736 2,631 6,818 5,128
Excess tax benefits from equity
incentive plan (2,566) (215) (4,338) (226)
Loss on disposal of property and
equipment 19 22 31 36
Deferred income taxes (2,944) (5,514) (6,198) (5,467)
Changes in operating assets and liabilities:
Accounts receivable, net (3,433) 184 (8,527) (1,016)
Inventories, net (267) (1,152) 463 (1,515)
Income taxes, net 2,049 4,232 3,073 (514)
Deferred costs (2,130) (3,502) (4,412) (6,588)
Other current assets (218) (389) (247) (902)
Other non-current assets 101 418 100 211
Accounts payable 3,312 3,226 (1,267) (264)
Accrued payroll and related
benefits (52) (764) (29) (1,883)
Other accrued liabilities 528 251 476 (303)
Other long-term liabilities 34 50 55 71
Deferred revenue 14,233 12,300 29,573 25,522
------
Net cash provided by
operating activities 15,475 11,889 20,882 12,083
Investing activities
Purchase of property and equipment (2,186) (2,866) (3,775) (4,529)
Purchase of intangible assets - (28) - (28)
Purchase of investment in non-
marketable equity and debt
securities - (310) (600) (310)
Business combinations, net of cash
acquired (4,791) (2,299) (4,791) (8,475)
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Net cash used in investing
activities (6,977) (5,503) (9,166) (13,342)
Financing activities
Transaction costs related to
initial public offering - (147) - (147)
Proceeds from issuance of common
stock 4,906 434 7,246 441
Taxes paid related to net share
settlement of equity awards (1,215) (726) (2,340) (1,191)
Repurchase of common stock - (585) - (723)
Dividends paid - - - (1,419)
Extended (repayment of) employee
loans 393 2,873 (70) 3,119
Excess tax benefits from equity
incentive plan 2,566 215 4,338 226
Repayment of note payable (58) (55) (118) (111)
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Net cash provided by
financing activities 6,592 2,009 9,056 195
Effect of exchange rate
changes on cash and cash
equivalents (89) 70 (92) (35)
--- --- --- ---
Net increase (decrease) in
cash and cash equivalents 15,001 8,465 20,680 (1,099)
Cash and cash equivalents at
beginning of period 141,558 20,531 135,879 30,095
Cash and cash equivalents at
end of period $156,559 $28,996 $156,559 $28,996
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SOURCE Barracuda Networks, Inc.
