EX-99.1 4 d478150dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

Investor Relations Contact:

Brian Norris

Acme Packet

+1.781.328.4790

bnorris@acmepacket.com

  

Media and Analyst Contact:

Mike O’Malley

Acme Packet

+1.781.869.2975

momalley@acmepacket.com

Acme Packet Reports Results for Fourth Quarter of 2012

Bedford, Massachusetts – February 4, 2013 — Acme Packet, Inc. (NASDAQ: APKT), the leader in session delivery network solutions, today announced results for the fourth quarter of 2012.

Results for the Fourth Quarter of 2012

Total revenue for the fourth quarter of 2012 was $70.7 million, compared to $83.0 million in the fourth quarter of 2011 and $65.3 million in the third quarter of 2012. GAAP net loss for the fourth quarter of 2012 was $2.0 million, or $(0.03) per share, compared to GAAP net income of $8.7 million, or $0.12 per share, in the fourth quarter of 2011 and GAAP net loss of $5.5 million, or $(0.08) per share, in the third quarter of 2012. Net income on a non-GAAP1 basis for the fourth quarter of 2012 was $6.5 million, or $0.09 per share, compared to $18.3 million, or $0.26 per share, in the fourth quarter of 2011, and $4.7 million, or $0.07 per share, in the third quarter of 2012. All earnings per share results, referenced above, are on a fully diluted basis.

Quarterly Conference Call Cancelled

As a result of the earlier announcement, Oracle to Buy Acme Packet, Acme Packet is cancelling its financial results conference call previously scheduled for today.

 

1 

A reconciliation of GAAP to non-GAAP results, and a statement on the use of non-GAAP financial measures, is included at the end of this press release.

About Acme Packet

Acme Packet (NASDAQ: APKT), the leader in session delivery network solutions, enables the trusted, first-class delivery of next-generation voice, video, data and unified communications services and applications across IP networks. Our Net-Net product family fulfills demanding security, service assurance and regulatory requirements in service provider, enterprise and contact center networks. Based in Bedford, Massachusetts, Acme Packet designs and manufactures its products primarily in the USA, selling them through over 330 reseller partners worldwide. More than 1,925 customers in 109 countries have deployed over 21,000 Acme Packet systems, including 89 of the top 100 service providers and 51 of the Fortune 100. For more information visit www.acmepacket.com.


Acme Packet, Inc. Safe Harbor Statement

Statements contained herein that are not historical fact may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may relate to, among other things, expected financial and operating results, expected growth rates, future stock-based compensation and amortization expenses, future business prospects and market conditions. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated. These include, but are not limited to: the amount of stock-based compensation awarded; the applicable Company stock price used to determine stock-based compensation; the exercise pattern of employee stock options; difficulties expanding the Company’s customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; poor product sales; long sales cycles; difficulties developing new products; difficulties in relationships with vendors and partners; higher risks in international operations; difficulties managing rapid growth; difficulties managing the Company’s financial performance; the ability to hire and retain employees and appropriately staff operations; the Company’s cash needs; the impact of new accounting pronouncements and increased competition. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in the Company’s recent filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings.


Acme Packet, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,  
     2012     2011     2012     2011  

Revenue:

        

Product

   $ 51,307      $ 64,276      $ 201,098      $ 241,783   

Maintenance, support and service

     19,395        18,720        73,339        65,534   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     70,702        82,996        274,437        307,317   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue:

        

Product

     10,145        12,155        39,492        42,245   

Maintenance, support and service

     3,464        3,118        15,358        11,691   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     13,609        15,273        54,850        53,936   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     57,093        67,723        219,587        253,381   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Sales and marketing

     38,406        29,940        136,636        105,580   

Research and development

     16,528        14,221        64,780        51,483   

General and administrative

     5,211        6,073        23,652        21,844   

Merger related costs

     —          —          643        300   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     60,145        50,234        225,711        179,207   
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from operations

     (3,052     17,489        (6,124     74,174   

Other expense, net

     (159     (91     (32     (238
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes

     (3,211     17,398        (6,156     73,936   

(Benefit from) provision for income taxes

     (1,182     8,681        (914     29,576   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

   $ (2,029   $ 8,717      $ (5,242   $ 44,360   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income per share:

        

Basic

   $ (0.03   $ 0.13      $ (0.08   $ 0.67   

Diluted

   $ (0.03   $ 0.12      $ (0.08   $ 0.63   

Weighted average number of common shares used in the calculation of net (loss) income per share:

        

Basic

     67,627,896        67,314,606        68,084,305        66,346,008   

Diluted

     67,627,896        70,679,690        68,084,305        70,902,293   


Acme Packet, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

     December 31,
2012
    December 31,
2011
 

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 55,381      $ 160,403   

Short-term investments

     302,865        191,672   

Accounts receivable, net

     58,610        59,739   

Inventory, net

     10,539        10,246   

Deferred product costs

     1,006        1,515   

Deferred tax asset, net

     9,423        4,809   

Income taxes receivable

     —          4,341   

Other current assets

     7,190        4,385   
  

 

 

   

 

 

 

Total current assets

     445,014        437,110   

Long-term investments

     27,220        20,096   

Property and equipment, net

     44,264        26,252   

Intangible assets, net

     19,331        8,569   

Goodwill

     15,263        3,778   

Deferred tax asset, net

     27,758        18,371   

Other assets

     362        230   
  

 

 

   

 

 

 

Total assets

   $ 579,212      $ 514,406   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 12,845      $ 10,318   

Accrued expenses and other current liabilities

     18,964        12,715   

Deferred revenue

     23,482        22,261   
  

 

 

   

 

 

 

Total current liabilities

     55,291        45,294   
  

 

 

   

 

 

 

Deferred revenue, net of current portion

     3,663        2,049   
  

 

 

   

 

 

 

Deferred rent, net of current portion

     9,620        4,533   
  

 

 

   

 

 

 

Deferred tax liability

     2,914        —     
  

 

 

   

 

 

 

Stockholders’ equity:

    

Common stock

     76        74   

Additional paid-in capital

     442,990        363,769   

Treasury stock, at cost

     (66,311     (37,522

Accumulated other comprehensive income

     3        1   

Retained earnings

     130,966        136,208   
  

 

 

   

 

 

 

Total stockholders’ equity

     507,724        462,530   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 579,212      $ 514,406   
  

 

 

   

 

 

 

Condensed Consolidated Statements of Cash Flow Data

(in thousands)

(unaudited)

 

     Three Months Ended     Twelve Months Ended  
     December 31,     December 31,  
     2012     2011     2012     2011  

Cash provided by operating activities

   $ 3,856      $ 18,695      $ 60,876   $ 55,341   

Cash used in investing activities

     (19,738     (34,550     (163,558 )*      (49,036

Cash provided by (used in) financing activities

     15,096        19,296        (2,340     62,429   

 

* Please note that due to a clerical error, the press release issued on the date hereof did not reflect a reclassification in the amount of $2,481. The correct amounts are $60,876 and $(163,558) as cash provided by operating activities and cash used in investing activities, respectively, for the twelve months ended December 31, 2012.


Acme Packet, Inc.

Statement on Use of Non-GAAP Financial Measures and

Reconciliation of Non-GAAP Net (Loss) Income and Non-GAAP Net (Loss) Income Per Share

(in thousands, except share and per share data)

(unaudited)

Statement on Use of Non-GAAP Financial Measures:

To supplement its condensed consolidated statements of operations presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company discloses certain non-GAAP financial measures, including “non-GAAP net (loss) income”, “net (loss) income on a non-GAAP basis”, “non-GAAP EPS”, and “net (loss) income per share on a non-GAAP basis”. These non-GAAP financial measures are not presented in accordance with GAAP and are not meant to be a substitute for the most directly comparable GAAP measures of “net (loss) income”, “EPS” or “net (loss) income per share”. Rather, these non-GAAP financial measures should be evaluated in conjunction with its most directly comparable GAAP financial measure and the Company’s financial statements as a whole.

Management uses these supplemental non-GAAP financial measures to evaluate performance period over period, to analyze the underlying trends in the Company’s business, to assess its performance relative to its competitors, and to establish operational goals and forecasts that are used in allocating resources. Management uses these non-GAAP financial measures because they exclude stock-based compensation expense which is a non-cash charge and related payroll taxes, amortization of acquired intangible assets, and merger and related costs associated with the Company’s acquisition activities all of which are non-operational costs and expenses. By excluding stock-based compensation expense and related payroll taxes, amortization of acquired intangible assets, and merger and related costs, management can compare the Company’s operations to prior periods and to the operations of other companies in its industry who may have materially different unusual, non-operational charges. Management does not consider any of stock-based compensation expense and related payroll taxes, amortization of acquired intangible assets, and merger and related costs to be part of the Company’s operating activities or meaningful in evaluating the Company’s past financial performance or future prospects. Management believes that excluding these items is useful to investors because it is more representative of ongoing costs and therefore more comparable to historical operations.

Because management uses them, management believes that the disclosure of these non-GAAP financial measures to investors provides greater transparency and useful information to help the investor better understand the Company’s operating performance and to evaluate the methodology used by management to evaluate and measure such performance. Notwithstanding their utility to investors in understanding operational trends, these non-GAAP measures should not be considered measures of the Company’s liquidity. In addition, the Company cautions that its definition of “non-GAAP net (loss) income”, “net (loss) income on a non-GAAP basis”, “non-GAAP EPS” and “net (loss) income per share on a non-GAAP basis” may differ from similar measures used by other companies and may differ from period to period. Also, in future periods, management may make other adjustments for expenses and gains that it does not consider reflective of core operating performance in a particular period thereby modifying its definition of “non-GAAP net (loss) income”, “non-GAAP EPS” and “non-GAAP net (loss) income per share” by excluding these other or additional expenses and gains.


Reconciliation of GAAP to Non-GAAP Financial Measures for the Three Months Ended December 31, 2012, September 30, 2012, and December 31, 2011 and for the Twelve Months Ended December 31, 2012 and December 31, 2011:

Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended December 31, 2012

(in thousands, except per share data)

(unaudited)

 

     GAAP     Stock-based
compensation
expense and
related payroll
taxes
    Amortization
of acquired
intangible
assets
    Non-GAAP1  

Cost of revenue:

        

Product

   $ 10,145      $ (379   $ (657   $ 9,109   

Maintenance, support and service

     3,464        (522     —          2,942   

Operating expenses:

        

Sales and marketing

     38,406        (6,991     (288     31,127   

Research and development

     16,528        (3,201     (51     13,276   

General and administrative

     5,211        (1,088     —          4,123   

(Benefit from) provision for income taxes

     (1,182     4,305        369        3,492   

Net (loss) income

     (2,029     7,876        627        6,474   

Net (loss) income per share:

        

Basic

   $ (0.03   $ 0.12      $ 0.01      $ 0.10   

Diluted

   $ (0.03   $ 0.11      $ 0.01      $ 0.09   

Weighted average number of shares used in the calculation of net (loss) income per share:

        

Basic

     67,627,896        67,627,896        67,627,896        67,627,896   

Diluted

     67,627,896        69,611,815        69,611,815        69,611,815   


Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended September 30, 2012

(in thousands, except per share data)

(unaudited)

 

     GAAP     Stock-based
compensation
expense and
related payroll
taxes
    Amortization
of acquired
intangible
assets
    Merger
related
costs
    Non-GAAP1  

Cost of revenue:

          

Product

   $ 9,584      $ (438   $ (658   $ —        $ 8,488   

Maintenance, support and service

     4,261        (702     —          —          3,559   

Operating expenses:

          

Sales and marketing

     35,090        (6,794     (261     —          28,035   

Research and development

     16,898        (4,181     (51     —          12,666   

General and administrative

     6,154        (1,336     —          —          4,818   

Merger related costs

     30        —          —          (30     —     

(Benefit from) provision for income taxes

     (1,129     3,844        359        —          3,074   

Net (loss) income

     (5,515     9,607        611        30        4,733   

Net (loss) income per share:

          

Basic

   $ (0.08   $ 0.14      $ 0.01      $ 0.00      $ 0.07   

Diluted

   $ (0.08   $ 0.14      $ 0.01      $ 0.00      $ 0.07   

Weighted average number of shares used in the calculation of net (loss) income per share:

          

Basic

     68,246,091        68,246,091        68,246,091        68,246,091        68,246,091   

Diluted

     68,246,091        70,102,125        70,102,125        70,102,125        70,102,125   


Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Three Months Ended December 31, 2011

(in thousands, except per share data)

(unaudited)

 

     GAAP      Stock-based
compensation
expense and
related payroll
taxes
    Amortization
of acquired
intangible
assets
    Non-GAAP1  

Cost of revenue:

         

Product

   $ 12,155       $ (314   $ (385   $ 11,456   

Maintenance, support and service

     3,118         (577     —          2,541   

Operating expenses:

         

Sales and marketing

     29,940         (4,857     (100     24,983   

Research and development

     14,221         (3,063     (11     11,147   

General and administrative

     6,073         (1,574     —          4,499   

Provision for income taxes

     8,681         1,148        174        10,003   

Net income

   $ 8,717       $ 9,237      $ 322      $ 18,276   

Net income per share:

         

Basic

   $ 0.13       $ 0.14      $ 0.00      $ 0.27   

Diluted

   $ 0.12       $ 0.13      $ 0.00      $ 0.26   

Weighted average number of shares used in the calculation of net (loss) income per share:

         

Basic

     67,314,606         67,314,606        67,314,606        67,314,606   
  

 

 

    

 

 

   

 

 

   

 

 

 

Diluted

     70,679,690         70,679,690        70,679,690        70,679,690   
  

 

 

    

 

 

   

 

 

   

 

 

 


Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Twelve Months Ended December 31, 2012

(in thousands, except per share data)

(unaudited)

 

    GAAP     Stock-based
compensation
expense and
related payroll
taxes
    Amortization of
acquired
intangible
assets
    Merger
related
costs
    Non-GAAP1  

Cost of revenue:

         

Product

  $ 39,492      $ (1,687   $ (2,332   $ —        $ 35,473   

Maintenance, support and service

    15,358        (2,642     —          —          12,716   

Operating expenses:

         

Sales and marketing

    136,636        (26,769     (844     —          109,023   

Research and development

    64,780        (16,031     (136     —          48,613   

General and administrative

    23,652        (6,003     —          —          17,649   

Merger related costs

    643        —          —          (643     —     

(Benefit from) provision for income taxes

    (914     17,694        1,235        —          18,015   

Net (loss) income

    (5,242     35,439        2,077        643        32,917   

Net (loss) income per share:

         

Basic

  $ (0.08   $ 0.52      $ 0.03      $ 0.01      $ 0.48   

Diluted

  $ (0.08   $ 0.50      $ 0.03      $ 0.01      $ 0.47   

Weighted average number of common shares used in the calculation of net income per share:

         

Basic

    68,084,305        68,084,305        68,084,305        68,084,305        68,084,305   

Diluted

    68,084,305        70,445,310        70,445,310        70,445,310        70,445,310   


Acme Packet, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

Twelve Months Ended December 31, 2011

(in thousands, except per share data)

(unaudited)

 

    GAAP     Stock-based
compensation
expense and
related payroll
taxes
    Amortization of
acquired
intangible assets
    Merger
related
costs
    Non-GAAP1  

Cost of revenue:

         

Product

  $ 42,245      ($ 1,230   ($ 1,677   $ —        $ 39,338   

Maintenance, support and service

    11,691        (2,095     —          —          9,596   

Operating expenses:

         

Sales and marketing

    105,580        (17,661     (387     —          87,532   

Research and development

    51,483        (10,886     (45     —          40,552   

General and administrative

    21,844        (5,472     —          —          16,372   

Merger related costs

    300        —          —          (300     —     

Provision for income taxes

    29,576        11,022        755        43        41,396   

Net income

  $ 44,360      $ 26,322      $ 1,354      $ 257      $ 72,293   

Net income per share:

         

Basic

  $ 0.67      $ 0.40      $ 0.02      $ 0.00      $ 1.09   

Diluted

  $ 0.63      $ 0.37      $ 0.02      $ 0.00      $ 1.02   

Weighted average number of common shares used in the calculation of net income per share:

         

Basic

    66,346,008        66,346,008        66,346,008        66,346,008        66,346,008   

Diluted

    70,902,293        70,902,293        70,902,293        70,902,293        70,902,293   


Acme Packet, Inc.

Other Operational Data

(unaudited)

 

     Three Months Ended  
     December 31,
2012
     September 30,
2012
     December 31,
2011
 

Other operational data:

        

Depreciation and amortization (in thousands)

   $ 4,013       $ 3,991       $ 2,944   

Capital expenditures (in thousands)

     8,902         5,151         4,186   

Days sales outstanding

     75         79         65   

Total headcount

     880         863         752   

Quarterly inventory turnover – annualized

     3.71         3.28         4.41