BARRACUDA NETWORKS INC CAMPBELL, Calif., Jan. 8, 2015 /PRNewswire/ -- Barracuda Networks, Inc. (NYSE: CUDA), a leading provider of cloud-connected security and storage solutions, today announced results for its third quarter of fiscal 2015, which ended November 30, 2014.
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Billings & Revenue: For the third quarter of fiscal 2015, gross billings grew 18% to $91.5 million, up from $77.5 million in the third quarter of fiscal 2014. Total revenue increased 19% to $70.4 million, up from $59.4 million in the third quarter of fiscal 2014. Appliance revenue in the third quarter of fiscal 2015 increased to $20.7 million up from $18.2 million in the third quarter of fiscal 2014, and subscription revenue grew to $49.7 million in the third quarter of fiscal 2015 up from $41.2 million in the third quarter of fiscal 2014, representing 71% of total revenue.
Net Income: GAAP net loss in the third quarter of fiscal 2015 was $36,000, or $0.00 loss per share, based on a basic share count of 52.1 million. Non-GAAP net income for the third quarter of fiscal 2015 was $3.2 million, or $0.06 earnings per share, based on a diluted share count of 54.0 million. Non-GAAP net income excludes $4.9 million in stock-based compensation expense, $4.7 million in income tax benefit of non-GAAP exclusions, $1.7 million net in other income and expense, $0.8 million in amortization of intangible assets, and $0.6 million in acquisition and other non-recurring charges. The reconciliation between GAAP and non-GAAP information is contained in the tables below.
"We delivered another quarter of strong financial performance across all of our major markets and product categories," said BJ Jenkins, president and CEO. "In the third quarter, we added more than 9,300 new active subscribers, bringing our total active subscribers to more than 234,900. Our results reflect the continued demand for our storage and network and application security products which continue to drive our top line growth. We also continued to make progress in the public cloud market with more integrations of our products into Microsoft Azure and Amazon Web Services. Given the expanding opportunities for our products, we will continue to invest to grow our sales and R&D efforts while driving toward our long-term model."
"We achieved record results in gross billings in Q3, which grew 20% year-over-year on a constant currency basis," said David Faugno, CFO. "In the quarter, adjusted EBITDA grew 54% year-over-year to $19 million, or 28% of total revenue. On a trailing 12-month basis, adjusted free cash flow was $46.0 million, growing 49% year-over-year."
Recent Company Highlights
-- Storage Product Innovation - Released a number of new product updates
across the storage portfolio, including: ArchiveOne version 7.0 that
expands information management functionality; and Barracuda Backup 995
with 72 TB of usable storage capacity and 32 TB of suggested backup.
-- Security Product Innovation - Launched Total Threat Protection
initiative, which is aimed at providing customers advanced security
protection, a single point of service, and affordability across multiple
threat vectors. Also launched a number of new products and enhancements
including: Barracuda Security Suite to provide protection for the three
most commonly deployed threat vectors - email, web browsing and network
perimeters; and Barracuda Web Application Firewall updates including URL
encryption, SSL enhancements, improved user access control, and improved
administrative interface.
-- Public Cloud Momentum - Announced several new integrations with
Microsoft Azure, including commerce-enablement in the Azure Marketplace
for the Barracuda Web Application Firewall, Barracuda Spam Firewall, and
Barracuda Message Archiver to allow customers to purchase these
solutions directly from Microsoft; Barracuda Web Application Firewall
integration with Azure Active Directory to streamline authentication and
access; and Barracuda Web Application Firewall availability in the new
Microsoft Azure Government cloud; and announced the availability of the
Barracuda Load Balancer ADC on Amazon Web Services.
-- Industry Recognition - Received a number of industry accolades and
achievements, including: Volume Leader in Content Security appliances
for Q3 CY2014 by IDC; Number one vendor in unit volume for integrated
PBBA by IDC; Five Star review by PC Pro for Barracuda Backup 290;
Readers' Choice awards by TechTarget and Information Security magazine
for Barracuda Spam Firewall and Barracuda Web Application Firewall;
Excellence Awards for Best Upgraded Products by Tech & Learning magazine
for Barracuda Message Archiver, Barracuda Backup, Barracuda Spam
Firewall and Barracuda Web Filter; Excellence Awards for Best New
Products by Tech & Learning magazine for Barracuda Copy and Barracuda
SignNow; Best Buy ratings and Five Star reviews by SC Magazine for both
Barracuda Web Application Firewall and Barracuda Spam Firewall; and 2014
Cloud Computing and Disaster Recovery award by TMC Net for Barracuda
Backup.
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 39759612#. 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 January 15, 2015 by dialing 1-855-859-2056 in the U.S. and Canada, or +1-404-537-3406 for international callers, and entering conference ID 39759612#. 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. Additionally, all forward-looking non-GAAP financial measures discussed on our earnings call exclude certain items such as stock-based compensation, amortization of intangible assets and acquisition 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, in preparing our historical 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. 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
Logo - http://photos.prnewswire.com/prnh/20131113/SF16521LOGO
Barracuda Networks, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
November 30, 2014 February 28, 2014
----------------- -----------------
Assets
Current assets:
Cash and cash equivalents $159,895 $135,879
Marketable securities 11,460 -
Accounts receivable, net of allowance
for doubtful accounts 40,998 27,836
Inventories, net 5,137 5,648
Deferred costs 29,162 25,707
Deferred income taxes 35,975 30,156
Other current assets 6,044 4,900
-----
Total current assets 288,671 230,126
Property and equipment, net 24,328 20,558
Deferred costs, non-current 26,952 24,572
Deferred income taxes, non-current 33,055 28,515
Other non-current assets 2,390 1,851
Intangible assets, net 9,873 8,420
Goodwill 40,571 36,014
Total assets $425,840 $350,056
======== ========
Liabilities and stockholders' equity (deficit)
Current liabilities:
Accounts payable $13,839 $13,743
Accrued payroll and related benefits 9,212 8,494
Other accrued liabilities 9,883 9,374
Deferred revenue 199,054 167,562
Deferred income taxes 291 260
Note payable 248 237
---
Total current liabilities 232,527 199,670
Long-term liabilities:
Deferred revenue, non-current 159,218 145,595
Deferred income taxes, non-current 939 84
Note payable, non-current 4,447 4,635
Other long-term liabilities 7,606 5,727
Stockholders' equity (deficit):
Common stock 52 52
Additional paid-in capital 305,987 278,551
Accumulated other comprehensive loss (2,348) (817)
Accumulated deficit (282,588) (283,441)
---------
Total stockholders' equity
(deficit) 21,103 (5,655)
Total liabilities and
stockholders' equity (deficit) $425,840 $350,056
======== ========
Barracuda Networks, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share information)
(Unaudited)
Three months ended Nine months ended November
30,
November 30,
------------
2014 2013 2014 2013
---- ---- ---- ----
Revenue:
Appliance $20,692 $18,174 $62,204 $53,583
Subscription 49,715 41,212 143,064 119,870
-----------
Total revenue 70,407 59,386 205,268 173,453
Cost of revenue 14,438 14,017 42,888 40,498
------ ------ ------ ------
Gross profit 55,969 45,369 162,380 132,955
Operating expenses:
Research and
development 15,389 12,083 42,167 34,563
Sales and
marketing 33,395 28,785 93,905 86,013
General and
administrative 8,759 7,513 25,947 22,018
-----------
Total operating expenses 57,543 48,381 162,019 142,594
------ ------ ------- -------
Income (loss) from operations (1,574) (3,012) 361 (9,639)
Other income (expense), net (1,789) 121 (2,527) (329)
------ --- ------ ----
Income (loss) before income
taxes and non-controlling
interest (3,363) (2,891) (2,166) (9,968)
Benefit from income taxes 3,327 599 3,019 2,735
----- --- ----- -----
Consolidated net income (loss) (36) (2,292) 853 (7,233)
Net loss attributable to non-
controlling interest - 199 - 561
Net income (loss) attributable
to Barracuda Networks, Inc. $(36) $(2,093) $853 $(6,672)
==== ======= ==== =======
Net income (loss) per share attributable to Barracuda
Networks, Inc.:
Basic $ - $(0.06) $0.02 $(0.22)
=====
Diluted $ - $(0.06) $0.02 $(0.22)
=======
Weighted-average shares used to compute net income (loss)
per share attributable to Barracuda Networks, Inc.:
Basic 52,142 34,256 51,655 30,179
=====
Diluted 52,142 34,256 53,785 30,179
=======
Barracuda Networks, Inc.
Reconciliation of Selected GAAP to Non-GAAP Financial Measures
(in thousands)
(Unaudited)
Three months ended November Nine months ended November
30, 30,
--------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP cost of revenue $14,438 $14,017 $42,888 $40,498
Amortization of intangible assets
(1) 533 889 1,879 3,018
Depreciation expense (2) 817 907 2,245 1,935
Stock-based compensation expense
(3) 121 58 246 146
Non-GAAP cost of revenue $12,967 $12,163 $38,518 $35,399
======= ======= ======= =======
GAAP sales and marketing
expense $33,395 $28,785 $93,905 $86,013
Amortization of intangible assets
(1) 238 424 979 1,341
Depreciation expense (2) 42 55 119 172
Stock-based compensation expense
(3) 1,143 578 2,546 1,278
Non-GAAP sales and
marketing expense $31,972 $27,728 $90,261 $83,222
======= ======= ======= =======
GAAP research and
development expense $15,389 $12,083 $42,167 $34,563
Depreciation expense (2) 176 146 483 410
Stock-based compensation expense
(3) 1,250 209 2,900 1,474
Acquisition and other non-
recurring charges (4) 372 375 1,127 875
Non-GAAP research and
development expense $13,591 $11,353 $37,657 $31,804
======= ======= ======= =======
GAAP general and
administrative expense $8,759 $7,513 $25,947 $22,018
Amortization of intangible assets
(1) - 6 - 23
Depreciation expense (2) 312 206 835 468
Stock-based compensation expense
(3) 2,350 1,578 5,990 4,653
Acquisition and other non-
recurring charges (4) 213 212 487 579
Non-GAAP general and
administrative expense $5,884 $5,511 $18,635 $16,295
====== ====== ======= =======
GAAP total expense $71,981 $62,398 $204,907 $183,092
Amortization of intangible assets
(1) 771 1,319 2,858 4,382
Depreciation expense (2) 1,347 1,314 3,682 2,985
Stock-based compensation expense
(3) 4,864 2,423 11,682 7,551
Acquisition and other non-
recurring charges (4) 585 587 1,614 1,454
Non-GAAP total expense $64,414 $56,755 $185,071 $166,720
======= ======= ======== ========
Depreciation expense (2) 1,347 1,314 3,682 2,985
Non-GAAP total expense
including depreciation $65,761 $58,069 $188,753 $169,705
======= ======= ======== ========
Barracuda Networks, Inc.
Reconciliation of Selected GAAP to Non-GAAP Financial Measures
(in thousands, except per share information)
(Unaudited)
Three months ended November Nine months ended November
30, 30,
--------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP operating income (loss) $(1,574) $(3,012) $361 $(9,639)
Amortization of intangible assets
(1) 771 1,319 2,858 4,382
Stock-based compensation expense
(3) 4,864 2,423 11,682 7,551
Acquisition and other non-
recurring charges (4) 585 587 1,614 1,454
Non-GAAP operating income $4,646 $1,317 $16,515 $3,748
====== ====== ======= ======
GAAP net income (loss)
attributable to Barracuda
Networks, Inc. $(36) $(2,093) $853 $(6,672)
Amortization of intangible assets
(1) 771 1,319 2,858 4,382
Stock-based compensation expense
(3) 4,864 2,423 11,682 7,551
Acquisition and other non-
recurring charges (4) 585 587 1,614 1,454
Income tax effect of non-GAAP
exclusions (5) (4,695) (1,277) (7,881) (3,986)
Other income adjustments (6) 1,703 (267) 2,219 (94)
Non-controlling interest (7) - (199) - (561)
Non-GAAP net income $3,192 $493 $11,345 $2,074
====== ==== ======= ======
Non-GAAP diluted earnings
per share (8) $0.06 $0.01 $0.21 $0.04
===== ===== ===== =====
Weighted-average shares
used to compute diluted
earnings per share 54,007 48,721 53,785 47,602
====== ====== ====== ======
(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 November Nine months ended November
30, 30,
---------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP net income (loss)
attributable to Barracuda
Networks, Inc. $(36) $(2,093) $853 $(6,672)
Deferred revenue, end of period 357,694 298,823 357,694 298,823
Less: Deferred revenue, beginning
of period (342,663) (286,792) (313,157) (261,243)
Less: Deferred costs, end of
period (56,114) (48,270) (56,114) (48,270)
Deferred costs, beginning of
period 54,582 46,058 50,279 39,470
Other expense (income), net 1,789 (121) 2,527 329
Benefit from income taxes (3,327) (599) (3,019) (2,735)
Acquisition and other non-
recurring charges 585 587 1,614 1,454
Stock-based compensation expense 4,864 2,423 11,682 7,551
Amortization of intangible assets 771 1,319 2,858 4,382
Depreciation expense 1,347 1,314 3,682 2,985
Adjusted EBITDA (1) $19,492 $12,649 $58,899 $36,074
======= ======= ======= =======
(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 for (benefit from)
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 balances as of November
30, 2014 and August 31, 2014
exclude the amounts related to
acquisition date deferred revenue
assumed from 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 Nine months ended November
November 30, 30,
------------------- --------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP cash
flows from
operating
activities $12,192 $10,593 $33,074 $22,676
Purchase of
property and
equipment (3,284) (1,328) (7,059) (5,857)
Acquisition
and other
non-
recurring
charges (1) 575 447 1,350 3,916
Adjusted free
cash flow (2) $9,483 $9,712 $27,365 $20,735
====== ====== ======= =======
(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 previous 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 November 30,
2014
------------------ ------------------------------------
February 28, May 31, August 31, November 30,
2014 2014 2014 2014
---- ---- ---- ----
GAAP cash
flows from
operating
activities $19,534 $5,407 $15,475 $12,192 $52,608
Purchase of
property and
equipment (1,759) (1,589) (2,186) (3,284) (8,818)
Acquisition
and other
non-
recurring
charges 902 385 390 575 2,252
Adjusted free
cash flow $18,677 $4,203 $13,679 $9,483 $46,042
======= ====== ======= ====== =======
Barracuda Networks, Inc.
Reconciliation of GAAP Revenue to Gross Billings
(in thousands)
(Unaudited)
Three months ended November Nine months ended November
30, 30,
---------------------------- ---------------------------
2014 2013 2014 2013
---- ---- ---- ----
GAAP Revenue $70,407 $59,386 $205,268 $173,453
Total deferred revenue, end of
period 357,694 298,823 357,694 298,823
Less: total deferred revenue,
beginning of period (342,663) (286,792) (313,157) (261,243)
Deferred revenue adjustments 6,094 6,054 18,362 16,926
-----
Total change in deferred
revenue and adjustments 21,125 18,085 62,899 54,506
Gross billings (1)(2) $91,532 $77,471 $268,167 $227,959
======= ======= ======== ========
(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 balances as of
November 30, 2014 and August
31, 2014 exclude the amounts
related to acquisition date
deferred revenue assumed from
C2C Systems Limited. We believe
that gross billings provide
insight into the sales of our
solutions and performance of
our business.
-------------------------------
(2) In order to determine how our
business performed exclusive of
the effect of foreign currency
fluctuations, we compare the
percentage change in our gross
billings from one period to
another using a constant
currency. To present this gross
billings information, the
current and comparative prior
period results for entities
that operate in other than U.S.
dollars are converted into U.S.
dollars at constant exchange
rates. For example, the rates
in effect at November 30, 2013,
which was the last day of our
prior fiscal year's comparable
quarter, were used to convert
current and comparable prior
period gross billings rather
than the actual exchange rates
in effect during the respective
period.
Barracuda Networks, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three months ended November 30, Nine months ended November 30,
------------------------------- ------------------------------
2014 2013 2014 2013
---- ---- ---- ----
Operating activities
Consolidated net income
(loss) $(36) $(2,292) $853 $(7,233)
Adjustments to reconcile consolidated net income (loss) to net cash provided
by operating activities:
Depreciation and amortization 2,118 2,381 6,540 7,115
Stock-based compensation 4,864 2,423 11,682 7,551
Excess tax benefits from equity
incentive plan (2,414) (148) (6,752) (374)
Loss on disposal of property and
equipment 66 260 97 296
Deferred income taxes (3,999) (2,873) (10,197) (8,340)
Other 107 - 107 -
Changes in operating assets and liabilities:
Accounts receivable, net (4,258) (3,525) (12,785) (4,541)
Inventories, net 44 288 507 (1,227)
Income taxes, net 67 3,061 3,140 2,547
Deferred costs (1,676) (2,213) (6,088) (8,801)
Other current assets 86 919 (161) 17
Other non-current assets 41 172 141 383
Accounts payable 863 (2,043) (404) (2,307)
Accrued payroll and related
benefits 332 454 303 (1,429)
Other accrued liabilities 1,311 1,514 1,787 1,211
Other long-term liabilities 2 260 57 331
Deferred revenue 14,674 11,955 44,247 37,477
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Net cash provided by
operating activities 12,192 10,593 33,074 22,676
Investing activities
Purchase of marketable securities (11,488) - (11,488) -
Purchase of property and equipment (3,284) (1,328) (7,059) (5,857)
Purchase of intangible assets (38) - (38) (28)
Purchase of investment in non-
marketable equity and debt
securities (500) - (1,100) (310)
Business combinations, net of cash
acquired - - (4,791) (8,475)
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Net cash used in investing
activities (15,310) (1,328) (24,476) (14,670)
Financing activities
Net proceeds from initial public
offering - 78,404 - 78,257
Proceeds from issuance of common
stock 5,314 1,488 12,560 1,929
Taxes paid related to net share
settlement of equity awards (1,514) 393 (3,854) (798)
Repurchase of common stock - - - (723)
Dividends paid - - - (1,419)
Repayment of employee loans, net
of loans extended 841 (1,376) 771 1,743
Excess tax benefits from equity
incentive plan 2,414 148 6,752 374
Repayment of note payable (59) (55) (177) (166)
----
Net cash provided by
financing activities 6,996 79,002 16,052 79,197
Effect of exchange rate
changes on cash and cash
equivalents (542) (14) (634) (49)
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Net increase in cash and
cash equivalents 3,336 88,253 24,016 87,154
Cash and cash equivalents at
beginning of period 156,559 28,996 135,879 30,095
Cash and cash equivalents at
end of period $159,895 $117,249 $159,895 $117,249
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/barracuda-reports-record-third-quarter-fiscal-2015-results-300018079.html
SOURCE Barracuda Networks, Inc.
