Solid Execution and Footprint
GrowthNew Awards Announced Today
Silver Spring Networks, Inc. (NYSE: SSNI) today announced
financial results for its third quarter ended September 30,
2016.
Third Quarter Results (all comparisons made are against
the prior year period, unless otherwise stated):
GAAP Results:
- Revenue was $74.2 million, up 7%.
- Gross margin was 38.1%, versus
47.5%.
- Net loss was ($15.2) million versus a
net loss of ($0.6) million.
- Net loss per diluted share was ($0.29)
versus a ($0.01) net loss per share.
- $113.4 million in cash, cash
equivalents and short-term investments at the end of the quarter,
versus $121.9 million.
Non-GAAP Metrics:
- Billings1 of $76.1 million, up 2%.
- Gross margin on billings2 of 54.9%,
versus 44.1%.
- Non-GAAP net income of $6.9 million
versus $4.9 million.
- Non-GAAP income per fully-diluted share
of $0.13, versus $0.10.
“We had another strong quarter, expanding our footprint by
approximately 569,000 endpoints, commencing a large smart grid
project, and winning additional awards since our last report,” said
Mike Bell, President and CEO, Silver Spring Networks. “Our third
quarter results, and our high-profile awards in 2016, demonstrate
the strong position we have built in our smart grid and smart city
markets. We see significant potential for continued innovation and
growth in our core markets, and a great opportunity to extend
Silver Spring’s platform and solutions into the broader Internet of
Important Things™ opportunity.”
1Billings previously reported as non-GAAP revenue.
2Gross margin on billings previously reported as non-GAAP gross
margin.
Business Highlights (through November 3, 2016, unless
otherwise stated):
- Entered a new collaboration
agreement with Singapore Power to expand its AMI deployment by
an additional 200,000 electric customers, and to open the platform
to other third-party IoT devices in support of Singapore’s “Smart
Nation” initiative.
- Selected by CPFL Energia to
significantly expand its Distribution Automation deployment across
100,000 square kilometers of its service territory over 350 cities
in the state of São Paulo.
- Selected by Baltimore Gas and
Electric for a Distribution Automation program, an extension of
its existing smart grid investment, to further improve grid
reliability and efficiency with connectivity solutions for BGE’s
re-closers throughout their entire grid.
- Selected by the City of Stockholm to
deploy Starfish™ Network-as-a-Service to upgrade aging lighting
infrastructure with intelligent street light controls in the
capital of Sweden.
- Named a Visionary in the Gartner
Magic Quadrant1 for Managed Machine-to-Machine Services,
Worldwide.
- Received prestigious industry
awards, including Frost & Sullivan’s Asia Pacific Smart
Grid Service Provider of the Year Award, and the CTIA Emerging
Technology Award for Industrial IoT. Our customer CESC of India won
the 2016 Smart Grid Project of the Year award at the Asian Power
Awards for its program with Silver Spring Networks.
- Over 24.9 million cumulative network
endpoints delivered from inception through September 30, 2016,
up 12% from a year ago.
Conference Call
Silver Spring will host a conference call today at 2:00 pm PT
(5:00 pm ET) to review its results for the third quarter ended
September 30, 2016 and its outlook for the future. During the
course of this call, Silver Spring may also disclose material
developments affecting its business and/or financial performance.
Listeners may access the conference call live at 877-407-0832
(U.S.) or 201-689-8433 (International) or via webcast at
http://ir.ssni.com. A dial-in replay of the conference call will be
available until December 15, 2016 and can be accessed at
877-660-6853 (domestic) or 201-612-7415 (international) passcode
13648481. An audio webcast replay of the conference call will be
available for one year at http://ir.ssni.com.
About Silver Spring Networks
Silver Spring Networks enables the Internet of Important Things™
by reliably and securely connecting things that matter. Cities,
utilities, and companies on five continents use the company’s
cost-effective, high-performance IoT network and data platform to
operate more efficiently, get greener, and enable innovative
services that can improve the lives of millions of people. With
more than 24.9 million devices delivered, Silver Spring provides a
proven standards-based platform safeguarded with military grade
security. Silver Spring Networks’ customers include Baltimore Gas
& Electric, CitiPower & Powercor, ComEd, Consolidated
Edison, CPS Energy, Florida Power & Light, Pacific Gas &
Electric, Pepco Holdings, and Singapore Power. Silver Spring has
also deployed networks in Smart Cities including
Copenhagen, Glasgow, Paris, Providence, and Stockholm. To
learn more, visit www.ssni.com.
Non-GAAP and Other Financial Metrics
Silver Spring supplements the results of operations presented in
accordance with generally accepted accounting principles, or GAAP,
with certain non-GAAP metrics. Silver Spring manages its business,
makes planning decisions, evaluates its performance and allocates
resources by assessing non-GAAP metrics such as billings, recurring
billings, recurring billings per endpoint, cost of billings, gross
profit (loss) on billings, gross margin on billings, non-GAAP
operating expense, non-GAAP operating income (loss), non-GAAP
operating margin, non-GAAP income tax provision (benefit), non-GAAP
net income (loss), non-GAAP income (loss) per share, adjusted
EBITDA, and total backlog. Silver Spring believes that these
non-GAAP financial metrics, when taken together with the
corresponding GAAP financial measures, offer valuable supplemental
information regarding the performance of its business, and will
help investors better understand the sales volumes, and gross
margin and profitability trends, as well as the cash flow
characteristics, of its business. The non-GAAP metrics should not
be considered in isolation from, are not a substitute for, and do
not purport to be an alternative to, revenue, cost of revenue,
gross profit (loss), gross margin, operating expense, operating
loss, net income (loss), net income (loss) per share or any other
performance measure derived in accordance with GAAP. Silver Spring
may consider whether other significant non-recurring items that
arise in the future should also be excluded in calculating the
non-GAAP financial measures it uses.
Billings represents amounts invoiced for products for
which ownership, typically evidenced by title and risk of loss, has
transferred or services that have been provided to the customer,
and for which payment is expected to be made in accordance with
normal payment terms. Billings excludes amounts for undelivered
products, services to be performed in the future, and amounts paid
or payable to customers. Billings are initially recorded as
deferred revenue and are then recognized as revenue when all
revenue recognition criteria has been met under Silver Spring’s
accounting policies as described in Silver Spring’s filings with
the Securities and Exchange Commission. Silver Spring reconciles
revenue to billings by adding revenue to the change in deferred
revenue in a given period.
Recurring billings are billings from Managed services and
SaaS, as well as customer support and other service offerings.
Recurring billings are primarily recurring in nature and include
managed services, hosting and software maintenance, and support
fees, as well as one-time Managed services and SaaS set up fees.
Customer support and other services are provided to customers
outside of Managed services and SaaS offerings, and are also
recurring in nature. Silver Spring reconciles recurring revenue to
recurring billings by adding revenue to the change in deferred
revenue in a given period.
Recurring billings per endpoint represents a trailing
twelve-month recurring billings revenue per cumulative endpoint
shipped from inception to date.
Cost of billings represents the cost associated with
products and services that have been delivered to the customer,
excluding stock-based compensation, amortization of intangibles and
acquisition-related charges. Cost of product shipments for which
revenue is not recognized in the period incurred is recorded as
deferred cost of revenue. Deferred cost of revenue is expensed in
the statement of operations as cost of revenue when the
corresponding revenue is recognized. Costs related to services are
expensed in the period incurred. Silver Spring reconciles cost of
revenue to cost of billings by adding cost of revenue and the
change in deferred cost of revenue, less stock-based compensation,
amortization of intangibles and acquisition-related charges,
included in cost of revenue in a given period.
Gross profit (loss) on billings is the difference between
billings and cost of billings.
Gross margin on billings is gross profit (loss) on
billings as a percentage of billings.
Non-GAAP operating expense consists of research and
development, sales and marketing, and general and administrative
expenses, excluding amortization of intangible assets, stock-based
compensation, acquisition-related charges, restructuring and legal
settlements.
Non-GAAP operating income (loss) represents operating
income (loss) adjusted for billings and cost of billings and
excludes expenses related to the amortization of intangible assets,
stock-based compensation, acquisition-related charges,
restructuring and legal settlements.
Non-GAAP operating margin is non-GAAP operating income
(loss) as a percentage of billings.
Non-GAAP income tax provision (benefit) represents income
tax provision (benefit) excluding income tax benefit related to
acquisitions.
Non-GAAP net income (loss) represents net income (loss)
adjusted for changes in deferred revenue and deferred cost of
revenue, and excludes expenses related to the amortization of
intangible assets, stock-based compensation, acquisition-related
charges, income tax benefit related to acquisitions, restructuring
and legal settlements.
Non-GAAP income (loss) per share represents non-GAAP net
income (loss) divided by weighted average shares outstanding for
the period.
Adjusted EBITDA is net income (loss) adjusted for changes
in deferred revenue and deferred cost of revenue, other (income)
expense, net, (benefit) provision for income taxes, depreciation
and amortization, stock-based compensation, acquisition-related
charges, restructuring, legal settlements and certain other items
management believes affect the comparability of operating
results.
Total backlog represents future product and service
billings that Silver Spring expects to generate pursuant to
contracts entered into with its utility customers and meter
manufacturers. Total backlog includes order backlog, which
represents future billings for open purchase orders and other firm
commitments.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks and uncertainties. These forward-looking
statements include statements regarding the momentum in Silver
Spring Networks’ business; customer and industry activity; future
deployments; expected benefits from our products; future
innovation; future product availability; future growth and market
opportunity; and future financial results. Statements including
words such as "anticipate", "believe", "estimate" or "expect" and
statements in the future tense are forward-looking statements.
These forward-looking statements are preliminary estimates and
expectations based on current information and are subject to
business and economic risks and uncertainties that could cause
actual events or actual future results to differ materially from
the expectations set forth in the forward-looking statements.
Important factors that could cause results to differ materially
from the statements herein include: timing around customer
decisions and deployment pace; receipt by our customers of required
regulatory approvals; dependence on a limited number of customers
and key suppliers; general economic risks; specific economic risks
in different geographies and among different industries; failure to
maintain or increase renewals and increase business from existing
customers; uncertainties around continued success in sales growth
and market share gains; the expansion of our target markets,
including the IoT market; lengthy sales cycles with no assurances
that a prospective customer will select Silver Spring’s products
and services; amounts included in backlog may not result in
billings or revenue; adverse publicity about, or consumer or
political opposition to, the smart grid; security breaches
involving smart grid products or services; the ability to integrate
technology into third-party devices and Silver Spring’s
relationship with third-party manufacturers; execution and customer
adoption risks related to new product introductions and innovation,
including our new fifth generation networking platform and
products; the ability to attract and retain personnel, including
members of Silver Spring’s management team; changes in strategy;
technological changes that make Silver Spring’s products and
services less competitive; competition, particularly from larger
companies with more resources than Silver Spring; international
business uncertainties; the ability to acquire and integrate other
businesses; and other risk factors set forth from time to time in
Silver Spring’s filings with the SEC, copies of which are available
free of charge at the SEC’s website at www.sec.gov. All
forward-looking statements in this press release reflect Silver
Spring’s expectations as of November 3, 2016. Silver Spring
undertakes no obligation, and expressly disclaims any obligation,
to update any forward-looking statements in this press release in
light of new information or future events. In addition, the
preliminary financial results set forth in this press release are
estimates based on information currently available to Silver
Spring.
3 Gartner, Magic Quadrant for Managed M2M Services, Worldwide,
17 October 2016
Gartner does not endorse any vendor, product or service depicted
in its research publications, and does not advise technology users
to select only those vendors with the highest ratings or other
designation. Gartner research publications consist of the opinions
of Gartner's research organization and should not be construed as
statements of fact. Gartner disclaims all warranties, expressed or
implied, with respect to this research, including any warranties of
merchantability or fitness for a particular purpose.
SILVER SPRING NETWORKS, INC. UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except
per share data) Three
Months Ended Nine Months Ended September 30,
September 30, 2016 2015 2016
2015 Revenue: Product $ 50,463 $ 50,093 $ 153,232 $ 209,839
Services 23,723 19,412 91,526
80,473
Net revenue 74,186
69,505 244,758 290,312 Cost of revenue:
Product 29,249 21,377 86,668 118,527 Services 16,695
15,141 48,308 47,387
Total cost of revenue 45,944 36,518
134,976 165,914 Gross profit 28,242
32,987 109,782 124,398 Operating
expenses: Research and development 18,165 15,837 51,583 47,581
Sales and marketing 10,425 7,900 28,597 26,109 General and
administrative 11,667 9,305 33,752 31,889
Impairment of intangible assets
2,204 — 2,204 — Restructuring — 339
39 1,611
Total operating
expenses 42,461 33,381
116,175 107,190
Operating (loss) income (14,219 )
(394 ) (6,393 ) 17,208 Other
income (loss), net 113 (99 ) 887
263
(Loss) income before income taxes
(14,106 ) (493 ) (5,506 )
17,471 (Provision) benefit for income taxes (1,143 )
(129 ) (2,136 ) 637
Net (loss)
income $ (15,249 ) $ (622
) $ (7,642 ) $ 18,108
Net (loss) income per share:
Basic $
(0.29 ) $ (0.01 ) $
(0.15 ) $ 0.36 Diluted
$ (0.29 ) $ (0.01 )
$ (0.15 ) $ 0.35 Weighted
average shares used to compute net (loss) income per share: Basic
51,743 50,188 51,244
49,789 Diluted 51,743 50,188
51,244 51,257
Reconciliation of GAAP to non-GAAP results (in thousands, except
per share data) The following tables reconcile the Company's
net (loss) income and net (loss) income per share as presented in
its unaudited Condensed Consolidated Statements of Operations and
prepared in accordance with GAAP to its non-GAAP net income and
non-GAAP net income per share.
Three Months Ended
Nine Months Ended September 30, September 30,
2016 2015 2016 2015 Net (loss)
income $ (15,249 ) $ (622
) $ (7,642 ) $ 18,108
Change in deferred revenue, net of foreign currency translation
1,958 5,192 (27,854 ) (83,376 ) Change in deferred cost of revenue,
net of foreign currency translation 9,404 (6,712 ) 17,728 40,292
Amortization of intangibles 193 421 989 1,252 Stock-based
compensation 7,898 5,853 21,839 21,537 Acquisition-related charges
508 559 1,534 2,045 Income tax benefit related to Detectent
acquisition — (114 ) — (1,128 ) Restructuring — 339 39 1,611
Impairment of intangible assets
2,204 — 2,204 —
Non-GAAP net income $ 6,916
$ 4,916 $ 8,837 $
341 Non-GAAP net income per share:
Basic $ 0.13 $ 0.10
$ 0.17 $ 0.01
Diluted $ 0.13 $ 0.10
$ 0.17 $ 0.01
Weighted average shares used to compute non-GAAP net income (loss)
per share: Basic 51,743 50,188
51,244 49,789 Diluted 53,896
51,713 53,500 51,257
SILVER SPRING NETWORKS, INC. UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
September 30, December 31,
2016 2015 (a) ASSETS Current assets: Cash and
cash equivalents $ 48,048 $ 65,264 Short-term investments 65,310
59,181 Accounts receivable 45,031 47,813 Inventory 5,297 4,545
Deferred cost of revenue 196,301 196,868 Prepaid expenses and other
current assets 11,552 10,835
Total
current assets 371,539 384,506 Property and
equipment, net 29,800 14,106 Goodwill and intangible assets 11,197
14,390 Deferred cost of revenue, non-current 21,909 38,882 Deferred
tax assets, non-current 993 1,069 Other long-term assets
2,004 4,772
Total assets $
437,442 $ 457,725
LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities:
Accounts payable $ 22,430 $ 30,623 Deferred revenue 290,696 305,471
Accrued and other liabilities 39,211 42,751
Total current liabilities 352,337
378,845 Deferred revenue, non-current 83,200 96,342 Other
liabilities, non-current 23,202 16,403
Total liabilities 458,739
491,590 Total stockholders’ deficit
(21,297 ) (33,865 ) Total
liabilities and stockholders’ deficit $ 437,442
$ 457,725 (a) Derived from
audited consolidated financial statements.
SILVER SPRING NETWORKS, INC. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (in
thousands) Three Months Ended Nine Months
Ended September 30, September 30, 2016
2015 2016 2015
OPERATING ACTIVITIES Net (loss) income $
(15,249 ) $ (622 ) $
(7,642 ) $ 18,108
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Deferred taxes (17 ) 172 94 (935 )
Impairment of intangible assets
2,204 — 2,204 — Depreciation and amortization 2,096 1,990 6,332
5,892 Stock-based compensation 7,898 5,853 21,839 21,537 Other
non-cash adjustments 659 230 772 354 Changes in assets and
liabilities: Accounts receivable 1,967 (2,568 ) 2,826 11,073
Inventory (2,811 ) 810 (750 ) 3,043 Prepaid expenses and other
assets 1,013 (1,396 ) 2,957 (4,192 ) Landlord incentives related to
lease 4,513 — 6,788 —
Contingent consideration related to
Detectent acquisition held in escrow
— — — (4,000 ) Deferred cost of revenue 9,359 (6,686 ) 17,595
40,308 Accounts payable (10,082 ) 2,239 (8,908 ) (131 ) Customer
deposits 1,037 (1,307 ) 1,031 151 Deferred revenue 1,927 4,841
(28,061 ) (84,190 ) Accrued and other liabilities 631
716 (4,400 ) 6,412
Net cash
provided by operating activities 5,145
4,272 12,677
13,430 INVESTING ACTIVITIES
Payments for business acquisition, net of
cash and cash equivalents acquired
— — — (7,098 ) Proceeds from sales of available-for-sale
investments 16,273 4,086 39,217 11,486 Proceeds from maturities of
available-for-sale investments 8,720 1,500 10,970 9,250 Purchases
of available-for-sale investments (45,401 ) (7,287 ) (56,355 )
(18,910 ) Purchases of property and equipment (6,125 )
(1,617 ) (23,369 ) (3,529 )
Net cash (used
in) investing activities (26,533 )
(3,318 ) (29,537 )
(8,801 ) FINANCING ACTIVITIES Payments
on capital lease obligations — (238 ) (285 ) (994 ) Proceeds from
issuance of common stock 2,010 1,619 4,238 3,655 Taxes paid related
to net share settlement of equity awards (549 ) (456
) (4,169 ) (3,968 )
Net cash provided by (used in)
financing activities 1,461
925 (216 ) (1,307
) Effect of exchange rate changes on cash and cash
equivalents (4 ) (184 ) (140 ) (324 )
Net (decrease)
increase in cash and cash equivalents (19,931 )
1,695 (17,216 ) 2,998 Cash and cash
equivalents - beginning of period 67,979
61,760 65,264 60,457
Cash and
cash equivalents - end of period $ 48,048
$ 63,455 $ 48,048
$ 63,455 SILVER SPRING
NETWORKS, INC. UNAUDITED RECONCILIATION OF NET REVENUE
BETWEEN GAAP AND NON-GAAP (in thousands, except
percentages)
Q3 Q4 Q1 Q2 Q3 YoY%
TYPE
2015 2015 2016 2016 2016
Change Net revenue: Product $ 50,093 $ 143,202 $
32,852 $ 69,917 $ 50,463 1 % Services Managed services and SaaS
11,223 37,142 11,068 24,570 14,090 26 % Professional services
8,189 18,903 4,700
27,465 9,633 18 % Total services 19,412
56,045 15,768 52,035
23,723 22 %
Total net revenue $
69,505 $ 199,247 $
48,620 $ 121,952 $
74,186 7 % % Product 72 % 72 % 68 % 57 % 68 % %
Services 28 % 28 % 32 % 43 % 32 % Change in deferred net revenue:
Change in deferred product revenue $ 1,785 $ (95,194 ) $ 12,883 $
(23,804 ) $ (568 ) Change in deferred services revenue: Managed
services and SaaS 1,397 (22,896 ) 1,820 (9,650 ) 1,641 Professional
services 2,010 (6,169 ) 5,591
(16,652 ) 885 Total change in deferred
services revenue 3,407 (29,065 ) 7,411
(26,302 ) 2,526 Total change in
deferred revenue $ 5,192 $ (124,259 ) $ 20,294 $ (50,106 ) $ 1,958
Billings(1) Product $ 51,878 $ 48,008 $ 45,735 $
46,113 $ 49,895 -4 % Services Managed services and SaaS 12,620
14,246 12,888 14,920 15,731 25 % Professional services
10,199 12,734 10,291
10,813 10,518 3 % Total services 22,819
26,980 23,179 25,733
26,249 15 %
Total Billings(1)
$ 74,697 $ 74,988
$ 68,914 $ 71,846
$ 76,144 2 % % Product 69 % 64 % 66 % 64 % 66
% % Services 31 % 36 % 34 % 36 % 34 %
RECURRING REVENUE
PER ENDPOINT
Recurring revenue (TTM) $ 45,374 $
71,947 $ 70,041 $ 84,003
$ 86,870
Change in deferred revenue, net of
foreign currency translations
4,349 (19,531 ) (17,292 )
(29,329 ) (29,085 )
Recurring Billings
(TTM)(1) $ 49,723 $
52,416 $ 52,749 $
54,674 $ 57,785 Cumulative
network endpoints delivered 22,321 22,954 23,652 24,399 24,968
Recurring revenue per endpoint delivered $ 2.03 $ 3.13 $ 2.96 $
3.44 $ 3.48 71 % Recurring billings per endpoint delivered(1) $
2.23 $ 2.28 $ 2.23 $ 2.24 $ 2.31 4 %
SOLUTION
Net revenue Advanced metering infrastructure $ 60,149 $
181,892 $ 40,514 $ 105,181 $ 66,203 10 % New solutions 9,356
17,355 8,106 16,771
7,983 -15 %
Total net revenue $
69,505 $ 199,247 $
48,620 $ 121,952 $
74,186 7 % % Advanced metering infrastructure 87 % 91
% 83 % 86 % 89 % % New solutions 13 % 9 % 17 % 14 % 11 % Change in
deferred net revenue Advanced metering infrastructure $ 3,586 $
(123,525 ) $ 16,957 $ (45,184 ) $ (2,078 ) New solutions
1,606 (734 ) 3,337 (4,922 )
4,036 Total change in deferred net revenue $ 5,192 $
(124,259 ) $ 20,294 $ (50,106 ) $ 1,958
Billings(1)
Advanced metering infrastructure $ 63,735 $ 58,367 $ 57,471 $
59,997 $ 64,125 1 % New solutions 10,962
16,621 11,443 11,849
12,019 10 %
Total Billings(1) $
74,697 $ 74,988 $
68,914 $ 71,846 $
76,144 2 % % Advanced metering infrastructure 85 % 78
% 83 % 84 % 84 % % New solutions 15 % 22 % 17 % 16 % 16 %
GEOGRAPHY
Net revenue United States $ 53,113 $ 177,896 $ 45,222 $
118,539 $ 43,381 -18 % International 16,392
21,351 3,398 3,413 30,805
88 %
Total net revenue $ 69,505
$ 199,247 $ 48,620
$ 121,952 $ 74,186 7 % %
United States 76 % 89 % 93 % 97 % 58 % % International 24 % 11 % 7
% 3 % 42 % Change in deferred net revenue United States $ 12,467 $
(116,859 ) $ 8,468 $ (57,666 ) $ 21,085 International (7,275
) (7,400 ) 11,826 7,560
(19,127 ) Total change in deferred net revenue $ 5,192 $ (124,259 )
$ 20,294 $ (50,106 ) $ 1,958
Billings(1) United
States $ 65,580 $ 61,037 $ 53,690 $ 60,873 $ 64,466 -2 %
International 9,117 13,951
15,224 10,973 11,678 28 %
Total Billings(1) $ 74,697
$ 74,988 $ 68,914
$ 71,846 $ 76,144 2 % %
United States 88 % 81 % 78 % 85 % 85 % % International 12 % 19 % 22
% 15 % 15 % (1) We have revised the presentation of several
of our non-GAAP financial measures previously reported.
SILVER SPRING
NETWORKS, INC. UNAUDITED SUPPLEMENTAL FINANCIAL
INFORMATION (in thousands, except percentages and
headcount) Q3 Q4 Q1
Q2 Q3 YoY% CASH FLOW DATA 2015
2015 2016 2016 2016 Change
Operating cash flow $ 4,272 $ 6,257 $ 3,730 $ 3,802
(a)
$ 5,145 20 % Operating cash flow - TTM 27,054 19,687 23,872 18,061
(a)
18,934 -30 %
BALANCE SHEET DATA Cash, cash
equivalents and short-term investments $ 121,915 $ 124,445 $
125,369 $ 113,064 $ 113,358 -7 %
Deferred net revenue
Beginning of quarter $ 521,176 $ 526,000 $ 401,813 $ 421,987 $
371,934 Add: billings during the quarter 74,697 74,988 68,914
71,846 76,144 Less: revenue recognized during the quarter (69,505 )
(199,247 ) (48,620 ) (121,952 ) (74,186 ) Foreign currency
translation adjustment and other (368 ) 72
(120 ) 53 4 End of quarter $
526,000 $ 401,813 $ 421,987 $ 371,934 $
373,896
Deferred cost of revenue Beginning of quarter
$ 286,044 $ 292,730 $ 235,750 $ 244,486 $ 227,559 Add: cost of
billings during the quarter 41,759 39,640 38,779 38,817 34,364 Add:
stock-based compensation, amortization of intangible assets, and
acquisition related charges deferred during the quarter 1,471 1,280
1,512 1,600 2,176 Less: cost of revenue during the quarter (36,518
) (97,902 ) (31,623 ) (57,409 ) (45,944 ) Foreign currency
translation adjustment and other (26 ) 2
68 65 55 End of quarter $
292,730 $ 235,750 $ 244,486 $ 227,559 $
218,210
STOCK-BASED COMPENSATION Cost of goods
sold $ 1,197 $ 1,006 $ 1,328 $ 1,389 $ 2,082 74 % Research and
development 1,771 1,277 2,025 2,241 2,593 46 % Sales and marketing
914 665 831 726 943 3 % General and administrative 1,971
1,994 2,716 2,685
2,280 16 % $ 5,853 $ 4,942 $ 6,900
$ 7,041 $ 7,898 35 %
EMPLOYEES 645 652
673 708 709 10 %
HOMES & BUSINESSES Cumulative network
endpoints delivered* 22,321 22,954 23,652 24,399 24,968 12 %
*Endpoints refer to communication modules in electric meters (a)
After the release of earnings disclosing
the results of the three and six months ended June 30, 2016, we
identified an adjustment in which cash provided by operating
activities and cash used in investing activities were overstated by
$0.3 million. This adjustment was reflected in the condensed
consolidated statements of cash flows for the six months ended June
30, 2016, included in our Form 10-Q filed on August 9, 2016. The
amounts for Q2’16 in the table above have been revised as such to
reflect this adjustment.
SILVER SPRING
NETWORKS, INC. UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (in thousands, except per share data and
percentages) Q3 Q4 Q1 Q2
Q3 YOY % QUARTERLY RECONCILIATION OF RESULTS
2015 2015 2016 2016 2016
Change Gross profit $ 32,987
$ 101,345 $ 16,997 $
64,543 $ 28,242 -14 % Change in deferred
revenue, net of foreign currency translation 5,192 (124,259 )
20,294 (50,106 ) 1,958 Change in deferred cost of revenue, net of
foreign currency translation (6,712 ) 56,982 (8,668 ) 16,992 9,404
Amortization of intangible assets 260 259 169 195 79 Stock-based
compensation 1,197 1,006 1,328 1,389 2,082 Acquisition-related
charges 14 15 15
16 15
Gross profit on
billings(1) $ 32,938 $
35,348 $ 30,135 $
33,029 $ 41,780 27 % Gross
margin % (as a % of net revenue) 47 % 51 % 35 % 53 % 38 % Gross
margin on billings(1) 44 % 47 % 44 % 46 % 55 %
Operating
expenses $ 33,381 $ 35,600 $
35,920 $ 37,794 $ 42,461 27 %
Amortization of intangible assets (161 ) (163 ) (252 ) (180 ) (114
) Stock-based compensation (4,656 ) (3,936 ) (5,572 ) (5,652 )
(5,816 ) Acquisition-related charges (545 ) (491 ) (501 ) (494 )
(493 )
Impairment of intangible assets
— — — — (2,204 ) Restructuring (339 ) (60 ) (39 ) — — Legal
settlements — (3,595 ) —
— —
Non-GAAP operating expenses
$ 27,680 $ 27,355
$ 29,556 $ 31,468
$ 33,834 22 %
Operating (loss)
income $ (394 ) $ 65,745
$ (18,923 ) $ 26,749 $
(14,219 ) -3509 % Change in deferred revenue, net of
foreign currency translation 5,192 (124,259 ) 20,294 (50,106 )
1,958 Change in deferred cost of revenue, net of foreign currency
translation (6,712 ) 56,982 (8,668 ) 16,992 9,404 Amortization of
intangible assets 421 422 421 375 193 Stock-based compensation
5,853 4,942 6,900 7,041 7,898 Acquisition-related charges 559 506
516 510 508
Impairment of intangible assets
— — — — 2,204 Restructuring 339 60 39 — — Legal settlements
— 3,595 — —
—
Non-GAAP operating income $ 5,258
$ 7,993 $ 579
$ 1,561 $ 7,946 51 %
Income tax provision $ 129 $
3,708 $ 32 $ 961 $
1,143 786 % Income tax benefit related to Detectent
acquisition 114 — —
— —
Non-GAAP income tax
provision $ 243 $ 3,708
$ 32 $ 961
$ 1,143 370 %
Net (loss) income
$ (622 ) $ 61,878 $
(18,514 ) $ 26,121 $
(15,249 ) -2352 % Change in deferred revenue, net of
foreign currency translation 5,192 (124,259 ) 20,294 (50,106 )
1,958 Change in deferred cost of revenue, net of foreign currency
translation (6,712 ) 56,982 (8,668 ) 16,992 9,404 Other expense
(income), net 99 159 (441 ) (333 ) (113 ) Provision for income
taxes 129 3,708 32 961 1,143 Depreciation and amortization 1,990
1,930 2,132 2,104 2,096 Stock-based compensation 5,853 4,942 6,900
7,041 7,898 Acquisition-related charges 559 506 516 510 508
Impairment of intangible assets
— — — — 2,204 Restructuring 339 60 39 — — Legal settlements
— 3,595 — —
—
Adjusted EBITDA $ 6,827
$ 9,501 $ 2,290 $
3,290 $ 9,849 44 % (1) We
have revised the presentation of several of our non-GAAP financial
measures previously reported.
SILVER SPRING NETWORKS, INC.
RECONCILIATION OF GAAP TO NON-GAAP
MEASURES
(in thousands, except percentages)
Three Months Ended September
30, 2016 Gross Profit Gross Margin
Change inDeferred Revenue
and Deferred Cost of Revenue (a)
Stock-basedCompensation
Amortization ofIntangible
Assets
Acquisition-Related
Costs
Gross Profit onBillings
(b)
Gross Margin onBillings
(b)
Product $ 21,214
42.0 % $ 8,836 $ 515 $ 79 $ - $
30,644
61.4 % Services Managed services and SaaS
4,612 32.7 % 1,641 719 - 15 6,987 44.4 % Professional services
2,416 25.1 % 885 848 - -
4,149 39.4 % Total services 7,028 29.6 % 2,526
1,567 - 15 11,136 42.4 %
Total gross profit $ 28,242 38.1
% $ 11,362 $ 2,082
$ 79 $ 15 $ 41,780
54.9 % Three Months Ended September
30, 2015 Gross Profit Gross Margin
Change inDeferred
Revenueand Deferred Costof Revenue (a)
Stock-basedCompensation
Amortization ofIntangible
Assets
Acquisition-Related
Costs
Gross Profit onBillings
(b)
Gross Margin onBillings
(b)
Product $ 28,716
57.3 % $ (4,927 ) $ 252 $ 260 $ - $
24,301
46.8 % Services Managed services and SaaS
3,137 28.0 % 1,397 438 - 14 4,986 39.5 % Professional services
1,134 13.8 % 2,010 507 -
- 3,651 35.8 % Total services 4,271 22.0 %
3,407 945 - 14 8,637 37.9 %
Total gross profit $ 32,987 47.5
% $ (1,520 ) $ 1,197
$ 260 $ 14 $ 32,938
44.1 % Nine Months Ended September
30, 2016 Gross Profit Gross Margin
Change inDeferred
Revenueand Deferred Costof Revenue (a)
Stock-basedCompensation
Amortization ofIntangible
Assets
Acquisition-Related
Costs
Gross Profit onBillings
(b)
Gross Margin onBillings
(b)
Product $ 66,564
43.4 % $ 6,239 $ 1,282 $ 443 $ - $
74,528
52.6 % Services Managed services and SaaS
22,718 45.7 % (6,189 ) 1,689 - 46 18,264 41.9 % Professional
services 20,500 49.0 % (10,176 ) 1,828
- - 12,152 38.4 % Total services 43,218 47.2 %
(16,365 ) 3,517 - 46 30,416 40.5
%
Total gross profit $ 109,782 44.9
% $ (10,126 ) $ 4,799
$ 443 $ 46 $ 104,944
48.4 % Nine Months Ended September
30, 2015 Gross Profit Gross Margin
Change inDeferred
Revenueand Deferred Costof Revenue (a)
Stock-basedCompensation
Amortization ofIntangible
Assets
Acquisition-Related
Costs
Gross Profit onBillings
(b)
Gross Margin onBillings
(b)
Product $ 91,312
43.5 % $ (31,972 ) $ 1,039 $ 782 $ -
$ 61,161
44.5 % Services Managed services and SaaS
10,734 30.8 % 3,365 1,680 - 85 15,864 41.6 % Professional services
22,352 48.9 % (14,477 ) 2,410 -
- 10,285 33.0 % Total services 33,086 41.1 %
(11,112 ) 4,090 - 85 26,149 37.7 %
Total gross profit $ 124,398 42.8
% $ (43,084 ) $ 5,129
$ 782 $ 85 $ 87,310
42.2 % (a) Amounts presented net of
foreign currency translation.
(b) We have revised the
presentation of several of our non-GAAP financial measures
previously reported.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161103006609/en/
Silver Spring Networks, Inc.Mark McKechnie, 669-770-4664Investor
Relationsmarkm@ssni.comAmy Cook, 669-770-4183Global
Communicationsacook@ssni.com
SILVER SPRING NETWORKS INC (NYSE:SSNI)
過去 株価チャート
から 6 2024 まで 7 2024
SILVER SPRING NETWORKS INC (NYSE:SSNI)
過去 株価チャート
から 7 2023 まで 7 2024