|
Infoblox
(BLOX), today reported its financial results for its fourth fiscal
quarter and fiscal year ended July 31, 2012. Total net revenue for the
fourth quarter of fiscal 2012 was a record $45.1 million, an increase of
14% on a year-over-year basis. Total net revenue for fiscal 2012 was a
record $169.2 million, an increase of 27% compared with net revenue of
$132.8 million in fiscal 2011.
On a GAAP basis, the Company reported a net loss of $4.3 million, or
$0.10 loss per fully diluted share, for the fourth quarter of fiscal
2012, compared with a net loss of $2.1 million, or $0.20 loss per fully
diluted share, in the fourth quarter of fiscal 2011. For fiscal 2012,
the Company reported a GAAP basis net loss of $8.2 million, or $0.40
loss per fully diluted share, compared with a net loss of $5.3 million,
or $0.54 loss per fully diluted share, in fiscal 2011.
The Company reported non-GAAP net income of $0.7 million, or $0.01
earnings per share on a non-GAAP weighted average share basis, for the
fourth quarter of fiscal 2012, compared with non-GAAP net income of $0.2
million, or $0.00 earnings per share on a non-GAAP weighted average
share basis, in the fourth quarter of fiscal 2011.
For fiscal 2012, the Company reported non-GAAP net income of $5.3
million, or $0.12 earnings per share on a non-GAAP weighted average
share basis, compared with non-GAAP net income of $3.1 million, or $0.07
earnings per share on a non-GAAP weighted average share basis, in fiscal
2011. The GAAP to non-GAAP reconciling items, for the fourth quarters
and fiscal years 2012 and 2011 can be found in "The Reconciliation of
GAAP to Non-GAAP Financial Measures" attached to this press release.
"We are very pleased with our fourth quarter and fiscal year 2012
financial results," said Robert Thomas, President and Chief Executive
Officer at Infoblox. "Our success in the market is testament to our
highly-differentiated product portfolio, our strong competitive position
and the business-critical need for network automation solutions. As
market acceptance and understanding of our automation capabilities
grows, more organizations are embracing our solutions to overcome
network challenges associated with BYOD, virtualization, cloud
computing, and data center consolidation. Infoblox solutions offer
customers a simple, reliable and secure way to connect any device with
an IP address to the network, and accelerates the time-to-value of these
next-generation IT initiatives."
"We executed well and exceeded our financial objectives in the July
quarter," said Remo Canessa, Chief Financial Officer at Infoblox.
"Strong sales in the North America and EMEA led Infoblox to another
quarter of record revenue. Our non-GAAP operating margin was better than
expected as a result of strong revenue and gross margin performance. In
addition, Infoblox’s balance sheet was strong exiting the July quarter.
Total net deferred revenue, principally from support contracts, was
$76.7 million, an increase of 24% over the July 2011 quarter. Net cash
provided by operating activities was $21.4 million for fiscal 2012. As
of July 31, 2012, our cash and cash equivalents balance stood at $157
million."
Financial Outlook
Infoblox is providing an outlook of anticipated results for the first
quarter ending October 31, 2012 and for the year ending July 31, 2013.
This outlook is based on a number of assumptions that we believe are
reasonable at the time of this earnings release. Information regarding
potential risks that could cause the actual results to differ from these
forward-looking statements is set forth below and in Infoblox’s filings
with the Securities and Exchange Commission.
For the first fiscal quarter ending October 31, 2012, the Company
currently expects:
--
Total net revenue in the range of $45 million to $46.5 million;
--
Non-GAAP gross margin to be approximately 76%;
--
Non-GAAP operating margin in the range of break-even to slightly
profitable; and
--
Non-GAAP EPS to be break-even, assuming approximately 53.5 million
shares on a non-GAAP diluted weighted average basis.
For the fiscal year ending July 31, 2013, the Company currently expects:
--
Total net revenue in the range of $195 million to $202 million;
--
Non-GAAP operating margin in the range of 1% to 3%; and
--
Non-GAAP EPS in the range of $0.04 to $0.07, assuming approximately
54.5 million shares on a non-GAAP diluted weighted average basis.
All forward-looking non-GAAP measures exclude estimates for stock-based
compensation expenses and amortization of intangible assets. A
reconciliation of non-GAAP guidance measures to corresponding GAAP
measures is not available on a forward-looking basis.
About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
Generally Accepted Accounting Principles (GAAP), this press release and
the accompanying tables and the related earnings conference call contain
certain non-GAAP financial measures, including non-GAAP gross profit and
gross margin, non-GAAP operating income and operating margin, non-GAAP
net income EPS and non-GAAP weighted average shares outstanding. We also
provide first fiscal quarter 2013 and fiscal year 2013 guidance for
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating
margin, non-GAAP EPS and non-GAAP weighted average shares outstanding.
We believe these non-GAAP financial measures are helpful in
understanding our past financial performance and future results. Our
non-GAAP financial measures should not be considered in isolation or as
a substitute for comparable GAAP measures and should be read in
conjunction with our consolidated financial statements prepared in
accordance with GAAP. Our management regularly uses our supplemental
non-GAAP financial measures internally to understand and manage our
business and forecast future periods. These non-GAAP financial measures
are not based on any standardized methodology prescribed by GAAP and are
not necessarily comparable to similar measures presented by other
companies. Our non-GAAP financial measures include adjustments based on
the following items:
Stock-based compensation expenses: We have
excluded the effect of stock-based compensation and related payroll tax
expenses from our non-GAAP operating results. Although stock-based
compensation is a key incentive offered to our employees, we continue to
evaluate our business performance excluding stock-based compensation
expenses. Stock-based compensation expenses will recur in future periods.
Amortization of intangible assets: We have
excluded the effect of amortization of intangible assets from our
non-GAAP operating results. Amortization of intangible assets is a
non-cash expense, and it is not part of our core operations. Investors
should note that the use of intangible assets contributed to revenues
earned during the periods presented and will contribute to future period
revenues as well.
Our non-GAAP Financial Measures are described as follows:
Non-GAAP gross profit and gross margin. Non-GAAP gross profit is
gross profit as reported on our consolidated statements of operations,
excluding the impact of stock-based compensation and intangible asset
amortization expense. Non-GAAP gross margin is non-GAAP gross profit
divided by net revenue.
Non-GAAP operating income and operating margin. Non-GAAP
operating income is income (loss) from operations as reported on our
consolidated statements of operations, excluding the impact of
stock-based compensation and intangible asset amortization expense.
Non-GAAP operating margin is non-GAAP operating income divided by net
revenue.
Non-GAAP net income and EPS. Non-GAAP net income is net income
(loss) as reported on our consolidated statements of operations,
excluding the impact of stock-based compensation and intangible asset
amortization expense. Non-GAAP EPS is non-GAAP net income divided by
non-GAAP diluted weighted average shares outstanding. Non-GAAP diluted
weighted average shares outstanding was computed to give effect to the
conversion of all outstanding convertible preferred stock including the
exercise of related preferred stock warrants and the exercise of certain
common stock warrants which occurred upon the closing of our initial
public offering on April 20, 2012, as if conversion or exercise had
occurred at the beginning of the period.
For reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures, please see the section of
the accompanying tables titled, "Reconciliation of GAAP to Non-GAAP
Financial Measures."
Conference Call & Webcast
Management will host a conference call today, September 6, 2012, at 1:30
p.m. PDT/4:30 p.m. EDT to discuss its fiscal fourth quarter 2012
results. To access the call, investors may dial 800-230-1059 (domestic)
or 612-234-9960 (international) at least 10 minutes prior to the
scheduled start of the call. A live webcast of the call will also be
available on the corporate website at: http://ir.infoblox.com.
An archive of the webcast will be available on our website and a taped
replay will be available for one week at 800-475-6701 (domestic) or
320-365-3844 (international), passcode 256066.
About Infoblox
Infoblox (BLOX) delivers Automated Network Control solutions, the
fundamental technology that connects end users, devices and networks.
These solutions enable more than 5,900 enterprises and service providers
to transform and scale complex networks. Infoblox helps take the burden
of complex network control out of human hands, reduce costs, and
increase accuracy and uptime. Infoblox is headquartered in Santa Clara,
Calif. and has additional operations in 30 countries.
Cautionary Statement
The statements in this release regarding the impact of market awareness
and acceptance of our automated network control solutions as well as all
statements under "Financial Outlook" are forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements involve risks and
uncertainties that could cause our actual results to differ materially,
including, but not limited to: unexpected delays in the delivery of our
solutions, particularly at the end of the quarter, changes in demand for
automated network control solutions, the market acceptance of our
products; the fluctuations in our gross margins; the concentration of
our customer base; competitive developments including pricing pressures;
our ability to manage operating expenses effectively; and the general
economic, industry or political conditions in the United States or
internationally.
For a detailed discussion of these and other risk factors, please refer
to our filings with the Securities and Exchange Commission, including
the final prospectus related to our initial public offering, which are
available on our investor relations Web site (http://ir.infoblox.com/)
and on the SEC’s Web site (www.sec.gov).
All information provided in this release and in the attachments is as of
September 6, 2012, and stockholders of Infoblox are cautioned not to
place undue reliance on our forward-looking statements, which speak only
as of the date such statements are made. Infoblox does not undertake any
obligation to publicly update any forward-looking statements to reflect
events, circumstances or new information after this September 6, 2012
press release, or to reflect the occurrence of unanticipated events.
INFOBLOX INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP BASIS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended July 31
----------------------------------------------------- -----------------------------
July 31, 2012 April 30, 2012 July 31, 2011 2012 2011
----------------- ----------------- ----------------- -------------- --------------
Net revenue:
Products and licenses $ 24,216 $ 24,558 $ 24,077 $ 95,012 $ 80,274
Services 20,864 18,866 15,316 74,234 52,561
------------ ------------ ------------ ----------- -----------
Total net revenue 45,080 43,424 39,393 169,246 132,835
------------ ------------ ------------ ----------- -----------
Cost of revenue:
Products and licenses 6,050 6,004 4,983 21,778 16,652
Services 4,254 3,781 3,568 15,342 12,187
------------ ------------ ------------ ----------- -----------
Total cost of revenue 10,304 9,785 8,551 37,120 28,839
------------ ------------ ------------ ----------- -----------
Gross profit 34,776 33,639 30,842 132,126 103,996
------------ ------------ ------------ ----------- -----------
Operating expenses:
Research and development 9,752 8,987 9,463 36,624 29,605
Sales and marketing 24,505 21,691 19,799 86,474 67,390
General and administrative 4,398 3,757 3,245 15,548 10,831
------------ ------------ ------------ ----------- -----------
Total operating expenses 38,655 34,435 32,507 138,646 107,826
------------ ------------ ------------ ----------- -----------
Loss from operations (3,879 ) (796 ) (1,665 ) (6,520 ) (3,830 )
Other expense, net: (158 ) (449 ) (150 ) (946 ) (690 )
---------------- ---------------- ---------------- ------------- -------------
Loss before provision (benefit) for income taxes (4,037 ) (1,245 ) (1,815 ) (7,466 ) (4,520 )
Provision (benefit) for income taxes 309 (226 ) 301 744 802
------------ ---------------- ------------ ----------- -----------
Net loss $ (4,346 ) $ (1,019 ) $ (2,116 ) $ (8,210 ) $ (5,322 )
==== ====== ==== ==== ====== ==== ==== ====== ==== === ====== == === ====== ==
Net loss per share - basic and diluted $ (0.10 ) $ (0.07 ) $ (0.20 ) $ (0.40 ) $ (0.54 )
Weighted average shares used in computing basic and diluted net loss 45,645 14,266 10,706 20,563 9,933
per share
========== ==== ========== ==== ========== ==== ========= == ========= ==
INFOBLOX INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended July 31
----------------------------------------------------------------- -------------------------------
July 31, 2012 April 30, 2012 July 31, 2011 2012 2011
--------------------- ----------------- ------------------------- --------------- ---------------
Gross Profit Reconciliation:
--------------------------------------------------------------------
GAAP gross profit $ 34,776 $ 33,639 $ 30,842 $ 132,126 $ 103,996
Stock based compensation expense 359 138 85 700 283
Amortization of intangible assets 322 325 329 1,302 1,059
---------------- ------------ -------------------- ------------ ---------------
Non-GAAP gross profit $ 35,457 $ 34,102 $ 31,256 $ 134,128 $ 105,338
======= ======= ==== ==== ====== ==== ==== ============== ==== === ======= == === =========
Gross Margin Reconciliation:
--------------------------------------------------------------------
GAAP gross margin 77.1 % 77.5 % 78.3 % 78.1 % 78.3 %
Stock based compensation expense 0.8 % 0.3 % 0.2 % 0.4 % 0.2 %
Amortization of intangible assets 0.7 % 0.7 % 0.8 % 0.8 % 0.8 %
-------------------- ---------------- ------------------------ -------------- --------------
Non-GAAP gross margin 78.6 % 78.5 % 79.3 % 79.3 % 79.3 %
============== ==== ========== ==== ================== ==== ========== == ========= ===
Operating Income (Loss) Reconciliation:
--------------------------------------------------------------------
GAAP operating loss $ (3,879 ) $ (796 ) $ (1,665 ) $ (6,520 ) $ (3,830 )
Stock based compensation expense 4,372 2,543 1,408 10,652 5,133
Amortization of intangible assets 649 652 908 2,862 3,302
---------------- ------------ -------------------- ------------ -----------
Non-GAAP operating income $ 1,142 $ 2,399 $ 651 $ 6,994 $ 4,605
======= ======= ==== ====== ==== ============== === ======= === ======
Operating Margin Reconciliation:
--------------------------------------------------------------------
GAAP operating margin (8.6 %) (1.8 %) (4.2 %) (3.9 %) (2.9 %)
Stock based compensation expense 9.7 % 5.8 % 3.6 % 6.3 % 3.9 %
Amortization of intangible assets 1.4 % 1.5 % 2.3 % 1.7 % 2.5 %
-------------------- ---------------- ------------------------ -------------- --------------
Non-GAAP operating margin 2.5 % 5.5 % 1.7 % 4.1 % 3.5 %
============== ==== ========== ==== ================== ==== ========== == ========= ===
Net Income (Loss) Reconciliation:
--------------------------------------------------------------------
GAAP net loss $ (4,346 ) $ (1,019 ) $ (2,116 ) $ (8,210 ) $ (5,322 )
Stock based compensation expense 4,372 2,543 1,408 10,652 5,133
649 652 908 2,862 3,302
Amortization of intangible assets
-------------- ---------- ------------------ ---------- ---------
Non-GAAP net income $ 675 $ 2,176 $ 200 $ 5,304 $ 3,113
======= ======= ==== ====== ==== ============== === ======= === ======
Non-GAAP Diluted Net Income per share $ 0.01 $ 0.05 $ -- $ 0.12 $ 0.07
--------------------------------------------------------------------
Shares used in Computing non-GAAP Net
Income per Share Reconciliation:
--------------------------------------------------------------------
Diluted shares:
Weighted-average shares outstanding used in calculating GAAP diluted 45,645 14,266 10,706 20,563 9,933
net loss per share
Additional dilutive securities for non-GAAP income 6,963 5,435 4,402 5,176 4,431
Conversion of convertible preferred stock and other upon IPO -- 25,060 27,201 19,837 27,201
---------------- ------------ -------------------- ------------ -----------
Weighted-average shares outstanding used in calculating non-GAAP 52,608 44,761 42,309 45,576 41,565
diluted net income per share
============== ==== ========== ==== ================== ==== ========== == ========= ===
INFOBLOX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
As of July 31
--------------------------------------------
2012 2011
--------------------- ---------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 156,613 $ 42,207
26,819 20,683
Accounts receivable, net of allowances of $544 at July 31, 2012
and $539
at July 31, 2011
Inventory 2,560 1,506
Deferred tax assets 1,577 1,606
Prepaid expenses and other current assets 4,159 3,832
---------------- ----------------
Total current assets 191,728 69,834
Property and equipment, net 6,498 5,087
Intangible assets, net 7,817 10,679
Goodwill 32,726 32,726
Restricted cash 3,803 732
Other assets 411 959
---------------- ----------------
TOTAL ASSETS $ 242,983 $ 120,017
======= ======= ======= =======
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
(DEFICIT)
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 11,607 $ 9,499
Accrued compensation 10,295 6,985
Deferred revenue, net 56,184 44,094
---------------- ----------------
Total current liabilities 78,086 60,578
Deferred revenue, net 20,483 17,905
Deferred tax liability 1,494 1,537
Convertible preferred stock warrant liability -- 398
Other liabilities 845 1,125
---------------- ----------------
TOTAL LIABILITIES 100,908 81,543
-------------- --------------
-- 107,506
Convertible preferred stock, $0.0001 par value per share--no shares
authorized
as of July 31, 2012, 85,128,977 shares authorized as of July 31,
2011;
none and 80,512,394 shares issued and outstanding as of July 31,
2012
and 2011
-------------- --------------
STOCKHOLDERS’ EQUITY (DEFICIT):
-- --
Convertible preferred stock, $0.0001 par value per share--5,000,000
shares
authorized as of July 31, 2012; no shares authorized
as of July 31, 2011; no
shares issued or outstanding as of
July 31, 2012 and July 31, 2011
5 1
Common stock, $0.0001 par value per share--150,000,000 shares
authorized;
45,737,770 and 11,038,704 shares issued and
outstanding as of July 31, 2012
and 2011
Additional paid-in capital 250,206 30,893
Accumulated deficit (108,136 ) (99,926 )
-------------------- --------------------
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 142,075 (69,032 )
---------------- --------------------
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ $ 242,983 $ 120,017
EQUITY (DEFICIT)
======= ======= ==== ======= ======= ====
INFOBLOX INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended July 31
----------------------------------------------------------
2012 2011
---------------------------- ----------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (8,210 ) $ (5,322 )
Adjustments to reconcile net loss to net cash provided by operating
activities:
Stock-based compensation 10,652 5,133
Depreciation and amortization 5,700 5,094
Change in fair value of convertible preferred stock warrant liability 391 133
Excess tax benefits from employee stock plans (47 ) (84 )
Deferred income taxes (14 ) --
Changes in operating assets and liabilities:
Accounts receivable, net (6,136 ) (7,513 )
Inventory (1,054 ) 77
Prepaid expenses, other current assets and other assets 550 (2,257 )
Accounts payable and accrued liabilities 1,854 4,370
Accrued compensation 3,310 2,096
Deferred revenue, net 14,668 18,924
Other liabilities (280 ) 851
--------------------------- -----------------------
Net cash provided by operating activities 21,384 21,502
----------------------- -----------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (3,962 ) (4,786 )
Increase in restricted cash (3,400 ) (31 )
Business acquisitions, net of cash acquired -- (1,972 )
Purchase of intangible assets -- (1,000 )
----------------------- ---------------------------
Net cash used in investing activities (7,362 ) (7,789 )
--------------------------- ---------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from initial public offering, net of offering costs 98,425 --
Proceeds from issuance of common stock under the employee stock plans 1,912 1,020
Excess tax benefits from employee stock plans 47 84
----------------------- -----------------------
Net cash provided by financing activities 100,384 1,104
----------------------- -----------------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 114,406 14,817
CASH AND CASH EQUIVALENTS--Beginning of year 42,207 27,390
----------------------- -----------------------
CASH AND CASH EQUIVALENTS--End of year $ 156,613 $ 42,207
======= ============== ======= ==============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Purchases of property and equipment not yet paid $ 287 $ --
======= ============== ======= ==============
Initial public offering costs not yet paid $ 235 $ --
======= ============== ======= ==============
Change in liability due to vesting of early exercised stock options, $ 221 $ 52
net
======= ============== ==== ======= ============== ====
Cash paid for income taxes, net $ 120 $ 1,018
======= ============== ======= ==============
Cash purchase consideration for SolSoft acquisition held in escrow $ -- $ 230
as restricted cash
======= ============== ==== ======= ============== ====
SOURCE: Infoblox
Infoblox
Jane Underwood, 408-625-4443 (Investors)
junderwood@infoblox.com
Jennifer Jasper, 408-625-4309 (Media)
jjasper@infoblox.com
|
