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Acme Packet(R) (APKT), the leader in session delivery
network solutions, today provided a financial update for the quarter
ended June 30, 2012. The Company will release final financial results
for the quarter and update its full year business outlook on
Thursday, July 26, 2012 after the market closes. Based on preliminary
second quarter estimates which are subject to change, the Company
expects:
-- Total revenues to range between $66 million to $68 million.
-- GAAP gross margin to range between 79% and 80%.
-- Non-GAAP(1) gross margin to range between 82% and 83%.
-- Diluted loss per share on a GAAP basis to range between ($0.01) and
($0.02).
-- Diluted earnings per share on a non-GAAP(1) basis to range between
$0.12 and $0.13.
-- Cash and cash equivalents to be approximately $400 million.
"We are disappointed with our preliminary results for the second
quarter," said Andy Ory, President and Chief Executive Officer of
Acme Packet, Inc. "Our top line results were principally impacted by
continued weakness in the North American service provider market. We
are completing a full review of our operations and will provide a
further update on July 26th."
About Acme Packet
Acme Packet (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 in the USA, selling them through over 230
reseller partners worldwide. More than 1,675 customers in 108
countries have deployed over 18,000 Acme Packet systems, including 88
of the top 100 service providers and 41 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.
(1) Statement on Use of Non-GAAP Financial Measures:
To supplement
its condensed consolidated statements of income 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 income", "net income on a
non-GAAP basis", "non-GAAP EPS", and "net 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 income", "EPS" or "net
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
integration-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
integration-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
integration-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 income", "net
income on a non-GAAP basis", "non-GAAP EPS" and "net 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
income", "non-GAAP EPS" and "non-GAAP net income per share" by
excluding these other or additional expenses and gains.
Reconciliation of Expected Non-GAAP Results for the Three Months Ending
June 30, 2012 (unaudited):
Three Months Ending
June 30, 2012
(unaudited)
(in thousands, except
per share data)
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Low High
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Revenue $ 66,000 $ 68,000
Reconciliation of non-GAAP gross margin:
GAAP gross margin 79% 80%
Adjustments:
Stock-based compensation expense and related
payroll taxes 2% 2%
Amortization of acquired intangible assets 1% 1%
Merger and integration-related costs -% -%
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Non-GAAP gross margin 82% 83%
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Reconciliation of diluted non-GAAP net income per
share:
GAAP net loss per share $ (0.02)$ (0.01)
Adjustments:
Stock-based compensation expense and related
payroll taxes, net of taxes 0.13 0.13
Amortization of acquired intangible assets - -
Merger and integration-related costs 0.01 0.01
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Non-GAAP net income per share $ 0.12 $ 0.13
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SOURCE: Acme Packet
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