WASHINGTON, Aug. 3, 2011 /PRNewswire/ -- Blackboard Inc.
(NASDAQ: BBBB) today announced financial results for the second
quarter ended June 30, 2011.
Total GAAP revenue for the quarter ended June 30, 2011 was $124.2
million, an increase of 15 percent over the second quarter
of 2010. Product revenues for the quarter were $114.3 million, an increase of 17 percent over
the second quarter of 2010, while professional services revenues
for the quarter were $9.9 million, a
decrease of 4 percent from the second quarter of 2010. GAAP
net loss was ($4.1) million,
resulting in net loss per basic and diluted share of ($0.12) for the second quarter of 2011 compared
to net income of $4.4 million or net
income per basic and diluted share of $0.13 for the second quarter of 2010.
Total non-GAAP revenue for the quarter ended June 30, 2011 was $127.5
million, an increase of 23 percent over the second quarter
of 2010. Non-GAAP adjusted net income for the second quarter of
2011 was $11.1 million, resulting in
non-GAAP adjusted net income per diluted share of $0.31 compared to non-GAAP adjusted net income of
$13.0 million or $0.37 per diluted share for the second quarter of
2010.
For a discussion of the non-GAAP financial measures used in this
release and the reconciliations of the non-GAAP financial measures
to the most directly comparable GAAP financial measures, please
refer to the section below entitled "Use of Non-GAAP Financial
Measures."
Summary Financial Highlights from the Second Quarter of
2011
- Non-GAAP revenue of $127.5
million, an increase of 23 percent over the second quarter
of 2010.
- Non-GAAP adjusted net income per diluted share of $0.31.
- Deferred revenue was $219.2
million, an increase of 47 percent over the second
quarter of 2010.
- Cash and cash equivalents were $84.7
million at the end of the second quarter of 2011.
- Total transaction-related expenses of approximately
$7.1 million, including costs
associated with Blackboard's proposed acquisition by Providence
Equity Partners.
Highlights from the Second Quarter of 2011
- McGraw-Hill Higher Education and Blackboard announced a
partnership to combine McGraw-Hill's media-rich content, assessment
engines and industry leading adaptive learning tools with the
latest capabilities of Blackboard's online teaching and learning
platform, Blackboard Learn™.
- Blackboard opened a new data center in Canada, responding to growing interest from
Canadian institutions for an in-region facility to host and manage
their learning environments. The new data center is located in
Calgary, Alberta, Canada.
- Blackboard announced full support for Common Cartridge 1.1,
making Blackboard Learn™, Release 9.1 the first learning platform
to support the newest version of a key industry standard that makes
it easier for instructors to share educational content and
resources.
Proposed Acquisition by Providence Equity Partners
On July 1, 2011, Blackboard
announced that it had entered into a definitive merger agreement
under which Blackboard will be acquired by an affiliate of
Providence Equity Partners in an all-cash transaction. Pursuant to
terms of the agreement, Blackboard shareholders will receive
$45.00 in cash for each share of
common stock.
The transaction is subject to the approval of a majority of the
outstanding shares of Blackboard and other customary closing
conditions and regulatory approvals. The transaction is anticipated
to close during the second half of 2011.
BLACKBOARD
INC.
|
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|
|
|
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UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
(in
thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30
|
|
June
30
|
|
June
30
|
|
June
30
|
|
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Product
|
$
97,474
|
|
$
114,297
|
|
$
191,204
|
|
$
223,682
|
|
|
Professional services
|
10,254
|
|
9,864
|
|
17,590
|
|
19,235
|
|
Total revenues
|
107,728
|
|
124,161
|
|
208,794
|
|
242,917
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Cost of product revenues,
excludes $2,816 and $1,085 for the three months ended June 30, 2010
and 2011, respectively, and $5,324 and $2,645 for the six months
ended June 30, 2010 and 2011, respectively, in amortization of
acquired technology included in amortization of intangibles
resulting from acquisitions shown below (1)
|
27,409
|
|
32,542
|
|
51,943
|
|
66,952
|
|
|
Cost of professional services
revenues (1)
|
5,386
|
|
6,284
|
|
9,865
|
|
12,963
|
|
|
Research and development
(1)
|
12,047
|
|
16,866
|
|
24,252
|
|
33,437
|
|
|
Sales and marketing
(1)
|
27,930
|
|
40,382
|
|
53,245
|
|
75,021
|
|
|
General and administrative
(1)
|
16,851
|
|
24,300
|
|
31,556
|
|
42,970
|
|
|
Amortization of intangibles
resulting from acquisitions
|
9,359
|
|
7,644
|
|
18,337
|
|
16,815
|
|
Total operating
expenses
|
98,982
|
|
128,018
|
|
189,198
|
|
248,158
|
|
Income (loss) from
operations
|
8,746
|
|
(3,857)
|
|
19,596
|
|
(5,241)
|
|
Other expense, net:
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(2,908)
|
|
(2,937)
|
|
(5,796)
|
|
(6,099)
|
|
|
Interest income
|
50
|
|
12
|
|
71
|
|
34
|
|
|
Other expense, net
|
(379)
|
|
(198)
|
|
(906)
|
|
(630)
|
|
Income (loss) before (provision
for) benefit from income taxes
|
5,509
|
|
(6,980)
|
|
12,965
|
|
(11,936)
|
|
(Provision for) benefit from
income taxes
|
(1,149)
|
|
2,920
|
|
(3,569)
|
|
4,520
|
|
Net income (loss)
|
$
4,360
|
|
$
(4,060)
|
|
$
9,396
|
|
$
(7,416)
|
|
Net income (loss) per common
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.13
|
|
$
(0.12)
|
|
$
0.28
|
|
$
(0.21)
|
|
|
Diluted
|
$
0.13
|
|
$
(0.12)
|
|
$
0.27
|
|
$
(0.21)
|
|
Weighted average number of
common shares:
|
|
|
|
|
|
|
|
|
|
Basic
|
34,128,218
|
|
35,030,028
|
|
33,798,698
|
|
34,895,971
|
|
|
Diluted
|
34,769,318
|
|
35,030,028
|
|
34,629,788
|
|
34,895,971
|
|
|
|
|
|
|
|
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|
(1) Includes the following
amounts related to stock-based compensation:
|
|
|
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Cost of product
revenues
|
$
264
|
|
$
332
|
|
$
607
|
|
686
|
|
|
Cost of professional services
revenues
|
149
|
|
162
|
|
297
|
|
366
|
|
|
Research and
development
|
296
|
|
334
|
|
563
|
|
670
|
|
|
Sales and marketing
|
1,858
|
|
2,294
|
|
3,721
|
|
4,382
|
|
|
General and
administrative
|
2,500
|
|
2,496
|
|
4,835
|
|
4,885
|
|
|
|
|
|
|
|
|
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BLACKBOARD
INC.
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RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES
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(in
thousands, except share and per share amounts)
|
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|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30
|
|
June
30
|
|
June
30
|
|
June
30
|
|
|
|
2010
|
|
2011
|
|
2010
|
|
2011
|
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|
|
|
|
|
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|
|
|
|
Reconciliation of GAAP revenue to non-GAAP revenue (1):
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GAAP revenue
|
$
107,728
|
|
$
124,161
|
|
$
208,794
|
|
$
242,917
|
|
Add: Deferred revenue not
recorded in purchase accounting
|
1,515
|
|
3,379
|
|
2,439
|
|
7,620
|
|
Less: Transact revenue
recognition change
|
(5,590)
|
|
-
|
|
(11,842)
|
|
-
|
|
Non-GAAP revenue
|
$
103,653
|
|
$
127,540
|
|
$
199,391
|
|
$
250,537
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|
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|
Reconciliation of GAAP net income before provision for income taxes to non-GAAP adjusted net income (1):
|
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|
GAAP net income (loss) before
provision for income taxes
|
$
5,509
|
|
$
(6,980)
|
|
$
12,965
|
|
$
(11,936)
|
|
Add: Deferred revenue not
recorded in purchase accounting
|
1,515
|
|
3,379
|
|
2,439
|
|
7,620
|
|
Less: Transact revenue recognition change including related costs
|
(4,675)
|
|
-
|
|
(9,638)
|
|
-
|
|
Add: Transition, integration and
transaction-related expenses
|
1,083
|
|
7,146
|
|
1,745
|
|
8,427
|
|
Add: Amortization of intangibles
resulting from acquisitions
|
9,359
|
|
7,644
|
|
18,337
|
|
16,815
|
|
Add: Stock-based
compensation
|
5,067
|
|
5,618
|
|
10,023
|
|
10,989
|
|
Add: Non-cash interest
expense
|
1,537
|
|
1,347
|
|
3,065
|
|
2,996
|
|
Add: Non-cash loss (gain) on
foreign exchange translation
|
379
|
|
(72)
|
|
906
|
|
131
|
|
Adjusted provision for income
taxes (2)
|
(6,783)
|
|
(6,979)
|
|
(14,186)
|
|
(14,036)
|
|
Non-GAAP adjusted net
income
|
$
12,990
|
|
$
11,103
|
|
$
25,657
|
|
$
21,006
|
|
Non-GAAP adjusted net income per
common share - diluted
|
$
0.37
|
|
$
0.31
|
|
$
0.74
|
|
$
0.59
|
|
Weighted average number of
diluted common shares
|
34,769,318
|
|
35,786,668
|
|
34,629,788
|
|
35,589,149
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net cash
provided by operating activities to non-GAAP free cash flow
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating
activities
|
|
$
(2,338)
|
|
$
(13,182)
|
|
$
(3,567)
|
|
$
(20,267)
|
|
Less: Purchases of property and
equipment
|
|
(9,626)
|
|
(8,873)
|
|
(12,791)
|
|
(14,638)
|
|
Free cash flow
|
|
$
(11,964)
|
|
$
(22,055)
|
|
$
(16,358)
|
|
$
(34,905)
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP adjusted net
income, non-GAAP adjusted net income per share, non-GAAP revenue
and free cash flow are non-GAAP financial measures and have no
standardized measurement prescribed by GAAP. Management
believes that these measures provide additional useful information
to investors regarding the Company's ongoing financial condition
and results of operations and aspects of current operating
performance that can be effectively managed. Because the Company
has historically reported non-GAAP results to the investment
community, management also believes the inclusion of these non-GAAP
financial measures provides enhanced comparability in its financial
reporting and facilitates investors' understanding of the Company's
historic operating trends by providing an additional basis for
comparisons to prior periods. The non-GAAP financial
measures may not be comparable with similar non-GAAP financial
measures used by other companies. The Company compensates for these
limitations by providing full disclosure of each non-GAAP financial
measure and the reconciliations above to the most directly
comparable GAAP financial measure which investors can use to
appropriately consider each financial measure determined under GAAP
as well as on the non-GAAP basis. However, the non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP.
|
|
(2) Adjusted provision for
income taxes is applied at an effective rate of approximately 34.3%
and 38.6% for the three months ended June 30, 2010 and 2011,
respectively, and approximately 35.6% and 40.1% for the six months
ended June 30, 2010 and 2011, respectively.
|
|
|
|
|
|
|
|
|
|
|
BLACKBOARD
INC.
|
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
December
31,
|
|
June
30
|
|
|
|
|
|
2010
|
|
2011
|
|
|
|
|
|
|
|
ASSETS
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
70,314
|
|
$
84,676
|
|
|
Accounts receivable,
net
|
89,914
|
|
154,986
|
|
|
Prepaid expenses and other
current assets
|
16,961
|
|
23,400
|
|
|
Deferred tax asset, current
portion
|
5,818
|
|
5,818
|
|
|
Deferred cost of
revenues
|
3,256
|
|
4,788
|
|
|
Total
current assets
|
186,263
|
|
273,668
|
|
|
|
|
|
|
|
|
|
Deferred tax asset, noncurrent
portion
|
15,185
|
|
25,577
|
|
Restricted cash
|
|
5,741
|
|
5,714
|
|
Property and equipment,
net
|
43,002
|
|
45,388
|
|
Other assets
|
|
1,582
|
|
1,670
|
|
Goodwill
|
|
478,728
|
|
481,935
|
|
Intangible assets,
net
|
116,649
|
|
105,328
|
|
Total assets
|
|
$
847,150
|
|
$
939,280
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
$
1,818
|
|
$
5,042
|
|
|
Accrued expenses
|
41,018
|
|
64,183
|
|
|
Deferred rent, current
portion
|
450
|
|
789
|
|
|
Deferred revenues, current
portion
|
211,752
|
|
214,433
|
|
|
Revolving credit
facility
|
-
|
|
46,000
|
|
|
Convertible senior notes, net of
debt discount
|
162,326
|
|
165,000
|
|
|
Total
current liabilities
|
417,364
|
|
495,447
|
|
|
|
|
|
|
|
|
|
Deferred rent, noncurrent
portion
|
11,978
|
|
11,561
|
|
Deferred tax liability,
noncurrent portion
|
3,502
|
|
4,943
|
|
Deferred revenues, noncurrent
portion
|
6,223
|
|
4,764
|
|
Stockholders' equity:
|
|
|
|
|
|
Common stock, $0.01 par
value
|
347
|
|
351
|
|
|
Additional paid-in
capital
|
465,908
|
|
486,540
|
|
|
Accumulated other comprehensive
income, net
|
794
|
|
2,056
|
|
|
Accumulated deficit
|
(58,966)
|
|
(66,382)
|
|
Total stockholders'
equity
|
408,083
|
|
422,565
|
|
Total liabilities and
stockholders' equity
|
$
847,150
|
|
$
939,280
|
|
|
|
|
|
|
|
|
BLACKBOARD
INC.
|
|
|
|
|
|
|
|
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
June
30
|
|
|
|
|
|
2010
|
|
2011
|
|
|
|
|
|
(in
thousands)
|
|
Cash flows from operating
activities
|
|
|
|
|
|
Net income (loss)
|
|
$
9,396
|
|
$
(7,416)
|
|
Adjustments to reconcile net
income (loss) to net cash used in operating activities:
|
|
|
|
|
|
|
Deferred income taxes
|
|
1,266
|
|
(10,096)
|
|
|
Excess tax benefits from
stock-based compensation
|
|
(2,799)
|
|
(174)
|
|
|
Amortization of debt discount
and issuance costs
|
|
3,065
|
|
2,996
|
|
|
Depreciation and
amortization
|
|
9,537
|
|
12,252
|
|
|
Amortization of intangibles
resulting from acquisitions
|
|
18,337
|
|
16,815
|
|
|
Change in allowance for doubtful
accounts
|
|
(120)
|
|
442
|
|
|
Stock-based
compensation
|
|
10,023
|
|
10,989
|
|
|
Changes in operating assets and
liabilities, net of effect of acquisitions:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(15,317)
|
|
(65,152)
|
|
|
|
Prepaid expenses and other
current assets
|
|
(1,183)
|
|
(6,502)
|
|
|
|
Deferred cost of
revenues
|
|
2,156
|
|
(1,532)
|
|
|
|
Accounts payable
|
|
171
|
|
3,189
|
|
|
|
Accrued expenses
|
|
8,384
|
|
23,134
|
|
|
|
Deferred rent
|
|
(256)
|
|
(78)
|
|
|
|
Deferred revenues
|
|
(46,227)
|
|
866
|
|
Net cash used in operating
activities
|
|
(3,567)
|
|
(20,267)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
|
|
Purchases of property and
equipment
|
|
(12,791)
|
|
(14,638)
|
|
|
Acquisitions, net of cash
acquired
|
|
(40,158)
|
|
(6,107)
|
|
Net cash used in investing
activities
|
|
(52,949)
|
|
(20,745)
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
|
|
Releases of letters of
credit
|
|
61
|
|
27
|
|
|
Payment for debt issuance
costs
|
|
-
|
|
(300)
|
|
|
Proceeds from revolving credit
facility
|
|
-
|
|
46,000
|
|
|
Excess tax benefits from
stock-based compensation
|
|
2,799
|
|
174
|
|
|
Proceeds from exercise of stock
options
|
|
23,587
|
|
9,473
|
|
Net cash provided by financing
activities
|
|
26,447
|
|
55,374
|
|
Net (decrease) increase in cash
and cash equivalents
|
|
(30,069)
|
|
14,362
|
|
Cash and cash equivalents at
beginning of period
|
|
167,353
|
|
70,314
|
|
Cash and cash equivalents at end
of period
|
|
$
137,284
|
|
$
84,676
|
|
|
|
|
|
|
|
|
About Blackboard Inc.
Blackboard Inc. (NASDAQ: BBBB) is a global leader in enterprise
technology and innovative solutions that improve the experience of
millions of students and learners around the world every day.
Blackboard's solutions allow thousands of higher education, K-12,
professional, corporate, and government organizations to extend
teaching and learning online, facilitate campus commerce and
security, and communicate more effectively with their communities.
Founded in 1997, Blackboard is headquartered in Washington, D.C., with offices in North America, Europe, Asia
and Australia.
Additional Information and Where to Find It
Blackboard intends to file with the Securities and Exchange
Commission (the "SEC") a proxy statement in connection with the
proposed transaction. The definitive proxy statement will be
sent or given to the stockholders of Blackboard and will contain
important information about the proposed transaction and related
matters. BEFORE MAKING ANY VOTING DECISION, BLACKBOARD'S
STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT CAREFULLY AND IN
ITS ENTIRETY BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT
THE PROPOSED TRANSACTION. The proxy statement and other
relevant materials (when they become available), and any other
documents filed by Blackboard with the SEC, may be obtained free of
charge at the SEC's website at www.sec.gov. In addition,
security holders will be able to obtain free copies of the proxy
statement from Blackboard by contacting Blackboard's Investor
Relations Department (i) by mail to Blackboard Inc., 650
Massachusetts Avenue, NW, 6th Floor, Washington, DC 20001, Attn: Investor Relations
Department, (ii) by telephone at 202-463-4860 or (iii) by e-mail to
Investor@Blackboard.com.
Participants in the Solicitation
Blackboard and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from
Blackboard's stockholders in connection with the proposed
transaction. Information about Blackboard's directors and
executive officers is set forth in Blackboard's proxy statement for
its 2011 Annual Meeting of Stockholders, which was filed with the
SEC on April 21, 2011, and its Annual
Report on Form 10-K for the year ended December 31, 2010, which was filed with the SEC
on February 18, 2011. These
documents are available free of charge at the SEC's web site at
www.sec.gov, and from Blackboard by contacting Blackboard's
Investor Relations Department (i) by mail to Blackboard Inc., 650
Massachusetts Avenue, NW, 6th Floor, Washington, DC 20001, Attn: Investor Relations
Department, (ii) by telephone at 202-463-4860 or (iii) by e-mail to
Investor@Blackboard.com. Additional information regarding the
interests of participants in the solicitation of proxies in
connection with the transaction will be included in the proxy
statement that Blackboard intends to file with the SEC.
Forward-Looking Statements
Any statements in this press release about future
expectations, plans and prospects for Blackboard and other
statements containing the words "believes," "anticipates," "plans,"
"expects," "will," and similar expressions, constitute
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those indicated by such forward-looking statements
as a result of various important factors, including but not
limited to: the ability of the parties to consummate the proposed
transaction with Providence in a
timely manner or at all; the satisfaction of conditions precedent
to consummation of the transaction, including the ability to secure
regulatory approvals and approval by Blackboard's stockholders;
successful completion of anticipated financing arrangements; the
possibility of litigation (including litigation related to the
transaction itself); and other risks described in Blackboard's
filings with the SEC, including the factors discussed in the
"Risk Factors" section of our Form 10-K filed on February 18, 2011 and Form 10-Q filed on
May 9, 2011 with the SEC. In
addition, the forward-looking statements included in this press
release represent the Company's views as of August 3, 2011. The Company anticipates that
subsequent events and developments will cause the Company's views
to change. However, while the Company may elect to update these
forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing the Company's views as of any date subsequent to
August 3, 2011.
Use of Non-GAAP Financial Measures
This release includes information about the Company's non-GAAP
revenue, non-GAAP net income, non-GAAP net income per diluted
share, and free cash flow, which are non-GAAP financial measures.
Management believes that these measures provide additional useful
information to investors regarding the Company's ongoing financial
condition and results of operations and aspects of current
operating performance that can be effectively managed. Because the
Company has historically reported non-GAAP results to the
investment community, management also believes the inclusion of
these non-GAAP financial measures provides enhanced comparability
in its financial reporting and facilitates investors' understanding
of the Company's historic operating trends by providing an
additional basis for comparisons to prior periods. In addition, the
Company's internal reporting, including information provided to the
Company's Audit Committee and Board of Directors, contains non-GAAP
measures. The Company has also adopted internal compensation
metrics that are determined on a basis that reflects non-GAAP
measures and other items as determined by the Board of
Directors.
In 2010, the Company's non-GAAP net income and non-GAAP net
income per diluted share excluded the amortization or impairment of
intangible assets, stock-based compensation expense and non-cash
interest expense, all net of taxes. Beginning in 2011, the
Company's non-GAAP financial measures will also exclude certain
impacts of acquisitions. Specifically, the Company's non-GAAP
revenue, non-GAAP net income and non-GAAP net income per diluted
share measures will include deferred revenue of entities we have
acquired that would have been recognized but for GAAP's purchase
accounting treatment requiring the elimination of this deferred
revenue upon acquisition. While we cannot be certain that customers
will renew the contracts that generated the deferred revenue, the
Company has historically experienced high renewal rates and we
believe GAAP results, which eliminate the recognition of these
deferred revenues, alone do not fully capture all of the Company's
economic activities. Further, the Company's non-GAAP net income and
non-GAAP net income per diluted share measure will include the
deferred revenue adjustment and exclude certain transition,
integration and transaction-related expense items resulting from
acquisitions and non-cash translation gains or losses, all net of
taxes. The Company does not consider these adjustments to be
related to the organic continuing operations of the acquired
businesses and they are generally not relevant to assessing or
estimating the long-term performance of the acquired assets.
Although acquisition-related revenue and expenses are generally
non-recurring with respect to past acquisitions, the Company
generally will incur these adjustments in connection with any
future acquisitions; however, the size, complexity and/or volume of
past acquisitions, which often drives the magnitude of
acquisition-related costs, may not be indicative of the size,
complexity and/or volume of future acquisitions. Because the
Company considers these revenue and expense adjustments, to a great
extent, to be unpredictable and dependent on a significant number
of factors that are outside of the control of the Company, the
non-GAAP measures that exclude these adjustments allow management
to better evaluate the Company's ability to utilize its existing
assets and estimate the long-term value that acquired assets will
generate for the Company. For the same reasons, the non-GAAP
measures will be useful to investors because they will allow for
more complete comparisons of forward-looking guidance to the
financial results of historical operations and the financial
results of peer companies.
A material limitation associated with the use of the above
non-GAAP financial measures is that they have no standardized
measurement prescribed by GAAP and may not be comparable with
similar non-GAAP financial measures used by other companies. The
Company compensates for these limitations by providing full
disclosure of each non-GAAP financial measure and reconciliation to
the most directly comparable GAAP financial measure which investors
can use to appropriately consider each financial measure determined
under GAAP as well as on the non-GAAP basis. However, the non-GAAP
financial measures should not be considered in isolation from, or
as a substitute for, financial information prepared in accordance
with GAAP. In addition to the information contained in this
release, investors should also review information contained in the
Company's Form 10-K dated February 18,
2011 and Form 10-Q dated May 9,
2011, as well as other filings with the Securities and
Exchange Commission when assessing the Company's financial
condition and results of operations. A reconciliation of GAAP to
non-GAAP revenue, non-GAAP net income, non-GAAP net income per
diluted share and non-GAAP free cash flow is included in this press
release.
SOURCE Blackboard Inc.