Delaware | 001-35507 | 20-0062867 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
3111 Coronado Drive Santa Clara, | 95054 | |||
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description of Exhibit | |
99.1 | Earnings Press Release dated February 25, 2016. |
INFOBLOX INC. | ||||
Date | February 25, 2016 | By: | /s/ Janesh Moorjani | |
Janesh Moorjani | ||||
Chief Financial Officer |
Exhibit No. | Description of Exhibit | |
99.1 | Earnings Press Release dated February 25, 2016. |
• | Total net revenue grew 29% year-over-year to $96 million |
• | Products and licenses revenue grew 36% year-over-year to $52 million |
• | Services revenue grew 22% year-over-year to $44 million |
• | Non-GAAP gross margin increased to 81.9% compared to 80.1% in Q2’15 |
• | Non-GAAP operating margin grew to 16.8% compared to 8.2% in Q2’15 |
• | Non-GAAP net income grew 92% year-over-year to $10 million |
• | Cash flow from operations was $25 million compared to $15 million in Q2'15 |
• | Launched NIOS 7.3 upgrading the underlying operating system for Infoblox products adding major enhancements including: |
• | Infoblox DNS Threat Analytics - the first technology that applies behavioral analytics to DNS queries in real time to detect and actively block data exfiltration attempts using DNS as a communications pathway |
• | Infoblox Reporting and Analytics - a powerful solution that unlocks the value of core network services data to help bolster security and mitigate threats, ensure compliance, improve application uptime and capacity planning to prevent network overloads or failures |
• | Amazon Web Services Route 53 Discovery - customers can now have a single console for DDI for their enterprise as well as AWS Route 53 |
• | DNS Scavenging - automates the clean-up and removal of stale DNS records helping to ensure better performance and responsiveness of DNS servers and lower total cost of ownership |
• | Acquired IID, a leader in global cyberthreat intelligence, making Infoblox the first enterprise-grade DDI vendor to combine contextual network data with federated threat intelligence and a dedicated threat research team, to provide context-aware security using infrastructure that customers already have in place |
• | Announced Bloxfest, Infoblox’s first end-user and customer focused conference to be hosted in May 2016 |
• | Announced new executives and board members: |
• | Edzard Overbeek, most recently senior vice president of the global services business at Cisco, was appointed to the board of directors |
• | Janesh Moorjani, most recently senior vice president of finance at VMware, was appointed as executive vice president and chief financial officer |
• | Atul Garg, most recently vice president and general manager of Cloud and Automation at Hewlett Packard Software, was appointed as executive vice president of engineering |
• | Ashish Gupta, most recently chief marketing officer at Actian and Vidyo, was appointed as executive vice president and chief marketing officer |
Three Months Ended | Six Months Ended | |||||||||||||||||||
January 31, 2016 | October 31, 2015 | January 31, 2015 | January 31, 2016 | January 31, 2015 | ||||||||||||||||
Net revenue: | ||||||||||||||||||||
Products and licenses | $ | 51,516 | $ | 50,857 | $ | 37,917 | $ | 102,373 | $ | 69,425 | ||||||||||
Services | 44,483 | 43,165 | 36,387 | 87,648 | 71,598 | |||||||||||||||
Total net revenue | 95,999 | 94,022 | 74,304 | 190,021 | 141,023 | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Products and licenses | 9,856 | 10,350 | 8,787 | 20,206 | 16,254 | |||||||||||||||
Services | 9,065 | 8,752 | 7,491 | 17,817 | 14,958 | |||||||||||||||
Total cost of revenue | 18,921 | 19,102 | 16,278 | 38,023 | 31,212 | |||||||||||||||
Gross profit | 77,078 | 74,920 | 58,026 | 151,998 | 109,811 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 17,461 | 17,833 | 15,504 | 35,294 | 30,074 | |||||||||||||||
Sales and marketing | 45,996 | 47,286 | 39,788 | 93,282 | 78,243 | |||||||||||||||
General and administrative | 11,149 | 10,457 | 9,355 | 21,606 | 17,315 | |||||||||||||||
Total operating expenses | 74,606 | 75,576 | 64,647 | 150,182 | 125,632 | |||||||||||||||
Income (loss) from operations | 2,472 | (656 | ) | (6,621 | ) | 1,816 | (15,821 | ) | ||||||||||||
Other income (expense), net | 167 | 95 | (590 | ) | 262 | (780 | ) | |||||||||||||
Income (loss) before provision for (benefit from) income taxes | 2,639 | (561 | ) | (7,211 | ) | 2,078 | (16,601 | ) | ||||||||||||
Provision for (benefit from) income taxes | (1,139 | ) | 950 | (200 | ) | (189 | ) | 620 | ||||||||||||
Net income (loss) | $ | 3,778 | $ | (1,511 | ) | $ | (7,011 | ) | $ | 2,267 | $ | (17,221 | ) | |||||||
Net income (loss ) per share - basic and diluted | $ | 0.06 | $ | (0.03 | ) | $ | (0.13 | ) | $ | 0.04 | $ | (0.31 | ) | |||||||
Weighted-average shares used in computing basic net income (loss) per share | 58,926 | 59,272 | 56,087 | 59,099 | 55,729 | |||||||||||||||
Weighted-average shares used in computing diluted net income (loss) per share | 60,138 | 59,272 | 56,087 | 60,795 | 55,729 |
Three Months Ended | Six Months Ended | |||||||||||||||||||
January 31, 2016 | October 31, 2015 | January 31, 2015 | January 31, 2016 | January 31, 2015 | ||||||||||||||||
Gross Profit Reconciliation: | ||||||||||||||||||||
GAAP gross profit | $ | 77,078 | $ | 74,920 | $ | 58,026 | $ | 151,998 | $ | 109,811 | ||||||||||
Stock-based compensation expense | 1,221 | 1,128 | 1,201 | 2,349 | 2,404 | |||||||||||||||
Amortization of intangible assets | 290 | 290 | 290 | 580 | 580 | |||||||||||||||
Non-GAAP gross profit | $ | 78,589 | $ | 76,338 | $ | 59,517 | $ | 154,927 | $ | 112,795 | ||||||||||
Gross Margin Reconciliation: | ||||||||||||||||||||
GAAP gross margin | 80.3 | % | 79.7 | % | 78.1 | % | 80.0 | % | 77.9 | % | ||||||||||
Stock-based compensation expense | 1.3 | 1.2 | 1.6 | 1.2 | 1.7 | |||||||||||||||
Amortization of intangible assets | 0.3 | 0.3 | 0.4 | 0.3 | 0.4 | |||||||||||||||
Non-GAAP gross margin | 81.9 | % | 81.2 | % | 80.1 | % | 81.5 | % | 80.0 | % | ||||||||||
Operating Income (Loss) Reconciliation: | ||||||||||||||||||||
GAAP operating income (loss) | $ | 2,472 | $ | (656 | ) | $ | (6,621 | ) | $ | 1,816 | $ | (15,821 | ) | |||||||
Stock-based compensation expense | 12,965 | 12,828 | 12,117 | 25,793 | 24,339 | |||||||||||||||
Acquisition related expenses | 382 | — | — | 382 | — | |||||||||||||||
Amortization of intangible assets | 322 | 322 | 617 | 644 | 1,234 | |||||||||||||||
Non-GAAP operating income | $ | 16,141 | $ | 12,494 | $ | 6,113 | $ | 28,635 | $ | 9,752 | ||||||||||
Operating Margin Reconciliation: | ||||||||||||||||||||
GAAP operating margin | 2.6 | % | (0.7 | %) | (8.9 | %) | 1.0 | % | (11.2 | %) | ||||||||||
Stock-based compensation expense | 13.5 | 13.6 | 16.3 | 13.6 | 17.3 | |||||||||||||||
Acquisition related expenses | 0.4 | — | — | 0.2 | — | |||||||||||||||
Amortization of intangible assets | 0.3 | 0.4 | 0.8 | 0.3 | 0.9 | |||||||||||||||
Non-GAAP operating margin | 16.8 | % | 13.3 | % | 8.2 | % | 15.1 | % | 7.0 | % | ||||||||||
Net Income (Loss) Reconciliation: | ||||||||||||||||||||
GAAP net income (loss) | $ | 3,778 | $ | (1,511 | ) | $ | (7,011 | ) | $ | 2,267 | $ | (17,221 | ) | |||||||
Stock-based compensation expense | 12,965 | 12,828 | 12,117 | 25,793 | 24,339 | |||||||||||||||
Acquisition related expenses | 382 | — | — | 382 | — | |||||||||||||||
Amortization of intangible assets | 322 | 322 | 617 | 644 | 1,234 | |||||||||||||||
Income tax adjustment | (7,336 | ) | (3,834 | ) | (457 | ) | (11,170 | ) | (122 | ) | ||||||||||
Non-GAAP net income | $ | 10,111 | $ | 7,805 | $ | 5,266 | $ | 17,916 | $ | 8,230 | ||||||||||
Non-GAAP EPS | $ | 0.17 | $ | 0.13 | $ | 0.09 | $ | 0.29 | $ | 0.14 | ||||||||||
Shares used in Computing non-GAAP EPS Reconciliation: | ||||||||||||||||||||
Diluted shares: | ||||||||||||||||||||
Weighted-average shares used in calculating GAAP diluted net income (loss) per share | 60,138 | 59,272 | 56,087 | 60,795 | 55,729 | |||||||||||||||
Additional dilutive securities for non-GAAP income | — | 1,976 | 2,372 | — | 1,838 | |||||||||||||||
Weighted-average shares used in calculating non-GAAP diluted net income per share | 60,138 | 61,248 | 58,459 | 60,795 | 57,567 |
January 31, 2016 | July 31, 2015 | |||||||
(Unaudited) | (a) | |||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 132,804 | $ | 103,124 | ||||
Short-term investments | 194,427 | 227,712 | ||||||
Accounts receivable, net | 53,883 | 45,881 | ||||||
Inventory | 6,709 | 8,588 | ||||||
Prepaid expenses and other current assets | 11,860 | 10,459 | ||||||
Total current assets | 399,683 | 395,764 | ||||||
Property and equipment, net | 23,212 | 23,225 | ||||||
Restricted cash | 3,518 | 3,515 | ||||||
Intangible assets, net | 1,279 | 1,923 | ||||||
Goodwill | 33,293 | 33,293 | ||||||
Other assets | 1,279 | 1,547 | ||||||
TOTAL ASSETS | $ | 462,264 | $ | 459,267 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable and accrued liabilities | $ | 19,199 | $ | 19,136 | ||||
Accrued compensation | 19,091 | 22,931 | ||||||
Deferred revenue, net | 108,216 | 95,130 | ||||||
Total current liabilities | 146,506 | 137,197 | ||||||
Deferred revenue, net | 50,924 | 41,717 | ||||||
Other liabilities | 4,687 | 5,201 | ||||||
TOTAL LIABILITIES | 202,117 | 184,115 | ||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Convertible preferred stock, $0.0001 par value per share—5,000 shares authorized; no shares issued or outstanding | — | — | ||||||
Common stock, $0.0001 par value per share—100,000 shares authorized; 58,517 shares and 58,836 shares issued and outstanding as of January 31, 2016 and July 31, 2015 | 6 | 6 | ||||||
Additional paid-in capital | 446,195 | 438,725 | ||||||
Accumulated other comprehensive loss | (218 | ) | (37 | ) | ||||
Accumulated deficit | (185,836 | ) | (163,542 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY | 260,147 | 275,152 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 462,264 | $ | 459,267 |
Six Months Ended | |||||||
January 31, 2016 | January 31, 2015 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 2,267 | $ | (17,221 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Stock-based compensation | 25,792 | 24,339 | |||||
Depreciation and amortization | 4,982 | 4,437 | |||||
Increase (decrease) in excess tax benefits from employee stock plans | 387 | (241 | ) | ||||
Other | 557 | 1,552 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (8,002 | ) | (2,473 | ) | |||
Inventory | 1,778 | (1,267 | ) | ||||
Prepaid expenses, other current assets and other assets | (930 | ) | (907 | ) | |||
Accounts payable and accrued liabilities | 358 | 553 | |||||
Accrued compensation | (3,840 | ) | 3,247 | ||||
Deferred revenue, net | 22,293 | 15,239 | |||||
Other liabilities | (514 | ) | (430 | ) | |||
Net cash provided by operating activities | 45,128 | 26,828 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of short-term investments | (29,905 | ) | (56,316 | ) | |||
Proceeds from maturities of short-term investments | 62,700 | 40,880 | |||||
Purchases of property and equipment | (5,144 | ) | (3,299 | ) | |||
Proceeds from sales of short-term investments | — | 1,001 | |||||
Net cash provided by (used in) investing activities | 27,651 | (17,734 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Common stock repurchases | (50,019 | ) | — | ||||
Proceeds from issuance of common stock under the employee stock plans | 7,555 | 7,633 | |||||
Increase (decrease) in excess tax benefits from employee stock plans | (387 | ) | 241 | ||||
Net cash provided by (used in) financing activities | (42,851 | ) | 7,874 | ||||
Effect of foreign exchange rate changes on cash and cash equivalents | (248 | ) | (1,269 | ) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 29,680 | 15,699 | |||||
CASH AND CASH EQUIVALENTS—Beginning of period | 103,124 | 78,535 | |||||
CASH AND CASH EQUIVALENTS—End of period | $ | 132,804 | $ | 94,234 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Purchases of property and equipment not yet paid | $ | 522 | $ | 378 | |||
Cash paid for income taxes, net | $ | 439 | $ | 138 |