Infoblox Reports Fiscal Fourth Quarter and Fiscal 2015 Results
SANTA CLARA, CA -- (Marketwired) -- 09/03/15 -- Infoblox (NYSE: BLOX), the network control company, today reported its financial results for its fourth fiscal quarter and fiscal year ended July 31, 2015. Total net revenue for the fourth quarter of fiscal 2015 was a record $87.0 million, an increase of 34.0% on a year-over-year basis. Total net revenue for fiscal 2015 was a record $306.1 million, an increase of 22.3% compared with the total net revenue of $250.3 million in fiscal 2014.
On a GAAP basis, the Company reported a net loss of $4.7 million, or $0.08 net loss per fully diluted share, for the fourth quarter of fiscal 2015, compared with a net loss of $9.5 million, or $0.17 net loss per fully diluted share, for the fourth quarter of fiscal 2014. For fiscal 2015, the Company reported a GAAP basis net loss of $27.1 million, or $0.48 net loss per fully diluted share, compared with a net loss of $23.9 million, or $0.45 net loss per fully diluted share, in fiscal 2014.
The Company reported non-GAAP net income of $7.3 million, or $0.12 diluted net income per share on a non-GAAP weighted-average share basis, for the fourth quarter of fiscal 2015, compared with non-GAAP net income of $1.9 million, or $0.03 diluted net income per share on a non-GAAP weighted-average share basis, for the fourth quarter of fiscal 2014. For fiscal 2015, on a non-GAAP basis, the Company reported net income of $22.7 million, or $0.38 diluted income per share compared with net income of $19.5 million, or $0.34 diluted income per share, in fiscal 2014.
The GAAP to non-GAAP reconciling items for the fourth quarters and fiscal years 2015 and 2014 can be found in the "Reconciliation of GAAP to Non-GAAP Financial Measures" attached to this press release.
"We had a strong finish to fiscal 2015," said Jesper Andersen, president and chief executive officer. "Sales execution continued to improve as evidenced by our robust top line performance driven by product sales in the fourth quarter. We believe our security and cloud solutions differentiate our platform and have increased our value proposition with our customers and prospects, and contributed to driving larger deals," continued Andersen. "As we look ahead, we see multiple growth drivers for our business and believe we are well positioned for further growth."
Financial Outlook
Infoblox announced its outlook of anticipated results for the first fiscal quarter ending October 31, 2015. This outlook is based on a number of assumptions that it believes 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, 2015, the Company currently expects:
- Total net revenue in the range of $86 million to $88 million;
- Non-GAAP gross margin to be in the range of 78% to 79%;
- Non-GAAP operating margin in the range of 6% to 7%; and
- Non-GAAP diluted net income per share ("non-GAAP EPS") to be in the range of $0.05 to $0.06, assuming approximately 62 million shares on a non-GAAP diluted weighted-average share 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, non-GAAP EPS and non-GAAP diluted weighted-average shares outstanding. We also provide first fiscal quarter 2016 estimates for non-GAAP gross margin, non-GAAP operating margin, non-GAAP EPS and non-GAAP diluted 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 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.
Income tax adjustment: For purposes of calculating non-GAAP net income and non-GAAP EPS, our interim U.S. income tax provision is recognized based on the percentage of year-to-date non-GAAP pre-tax income (loss) over projected fiscal 2015 non-GAAP pre-tax income (loss).
Acquisition related expenses: Acquisition related expenses may include transaction costs, costs for transitional employees, other acquired employee related retention costs, integration related professional services, adjustments to the fair value of the acquisition related contingent consideration, and the write-down of certain acquired in-progress research and development intangibles. We believe that to the extent we incur significant expenses in connection with our acquisitions, it is useful for investors to understand the effects of these items on our total operating expenses.
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, intangible asset amortization expense and acquisition related expenses. Non-GAAP operating margin is non-GAAP operating income divided by net revenue.
Non-GAAP net income and non-GAAP EPS. Non-GAAP net income is net income (loss) as reported on our consolidated statements of operations, excluding the impact of stock-based compensation, intangible asset amortization expense and acquisition related expenses with income taxes adjusted to reflect our estimated effective tax rate on a non-GAAP basis. Non-GAAP EPS is non-GAAP net income divided by non-GAAP diluted weighted-average shares outstanding.
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 3, 2015 at 1:30 p.m. PDT/4:30 p.m. EDT to discuss its fiscal fourth quarter 2015 financial results. To access the call, investors may dial 800-230-1096 (domestic) or 612-288-0337 (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 to the company's website and a taped reply will be available for one week at 800-475-6701 (domestic) or 320-365-3844 (international), passcode 366383.
About Infoblox
Infoblox (NYSE: BLOX) delivers critical network services that protect Domain Name System (DNS) infrastructure, automate cloud deployments, and increase the reliability of enterprise and service provider networks around the world. As the industry leader in DNS, DHCP, and IP address management, the category known as DDI, Infoblox (www.infoblox.com) reduces the risk and complexity of networking.
Cautionary Statement
All statements in this release that are not statements of historical fact, including but not limited to the quotation attributable to Mr. Andersen and the 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, 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 3, 2015, 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 3, 2015 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, April 30, July 31, July 31, July 31,
2015 2015 2014 2015 2014
--------- --------- --------- --------- ---------
Net revenue:
Products and licenses $ 46,348 $ 40,737 $ 32,022 $156,510 $130,348
Services 40,651 37,366 32,893 149,615 119,992
--------- --------- --------- --------- ---------
Total net revenue 86,999 78,103 64,915 306,125 250,340
--------- --------- --------- --------- ---------
Cost of revenue:
Products and licenses 10,039 9,069 7,235 35,362 29,327
Services 8,554 8,257 7,352 31,769 26,471
--------- --------- --------- --------- ---------
Total cost of revenue 18,593 17,326 14,587 67,131 55,798
--------- --------- --------- --------- ---------
Gross profit 68,406 60,777 50,328 238,994 194,542
--------- --------- --------- --------- ---------
Operating expenses:
Research and development 18,309 16,709 13,670 65,092 49,289
Sales and marketing 44,438 39,536 38,038 162,217 138,612
General and
administrative 10,055 9,740 7,948 37,110 29,621
--------- --------- --------- --------- ---------
Total operating
expenses 72,802 65,985 59,656 264,419 217,522
--------- --------- --------- --------- ---------
Loss from operations (4,396) (5,208) (9,328) (25,425) (22,980)
Other income (expense), net (77) 206 62 (651) (18)
--------- --------- --------- --------- ---------
Loss before provision for
income taxes (4,473) (5,002) (9,266) (26,076) (22,998)
Provision for income taxes 253 134 266 1,007 919
--------- --------- --------- --------- ---------
Net loss $ (4,726) $ (5,136) $ (9,532) $(27,083) $(23,917)
========= ========= ========= ========= =========
Net loss per share - basic
and diluted $ (0.08) $ (0.09) $ (0.17) $ (0.48) $ (0.45)
========= ========= ========= ========= =========
Weighted-average shares
used in computing basic
and diluted net loss per
share 58,128 56,928 54,727 56,626 53,581
========= ========= ========= ========= =========
INFOBLOX INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
-------------------------------- ---------------------
July 31, April 30, July 31, July 31, July 31,
2015 2015 2014 2015 2014
---------- ---------- ---------- ---------- ----------
Gross Profit
Reconciliation:
GAAP gross profit $ 68,406 $ 60,777 $ 50,328 $238,994 $194,542
Stock-based
compensation
expense 1,045 1,001 1,002 4,450 3,619
Amortization of
intangible assets 290 290 290 1,160 1,110
---------- ---------- ---------- ---------- ----------
Non-GAAP gross profit $ 69,741 $ 62,068 $ 51,620 $244,604 $199,271
========== ========== ========== ========== ==========
Gross Margin
Reconciliation:
GAAP gross margin 78.6% 77.8% 77.5% 78.1% 77.7%
Stock-based
compensation
expense 1.2 1.3 1.5 1.5 1.4
Amortization of
intangible assets 0.3 0.4 0.5 0.4 0.4
---------- ---------- ---------- ---------- ----------
Non-GAAP gross margin 80.1% 79.5% 79.5% 80.0% 79.5%
========== ========== ========== ========== ==========
Operating Income
(Loss)
Reconciliation:
GAAP operating loss $ (4,396) $ (5,208) $ (9,328) $(25,425) $(22,980)
Stock-based
compensation
expense 11,525 11,759 10,832 47,623 40,971
Amortization of
intangible assets 322 617 617 2,173 2,418
---------- ---------- ---------- ---------- ----------
Non-GAAP operating
income $ 7,451 $ 7,168 $ 2,121 $ 24,371 $ 20,409
========== ========== ========== ========== ==========
Operating Margin
Reconciliation:
GAAP operating margin (5.1%) (6.7%) (14.4%) (8.3%) (9.2%)
Stock-based
compensation
expense 13.3 15.1 16.7 15.6 16.4
Amortization of
intangible assets 0.4 0.8 1.0 0.7 0.9
---------- ---------- ---------- ---------- ----------
Non-GAAP operating
margin 8.6% 9.2% 3.3% 8.0% 8.1%
========== ========== ========== ========== ==========
Net Income (Loss)
Reconciliation:
GAAP net loss $ (4,726) $ (5,136) $ (9,532) $(27,083) $(23,917)
Stock-based
compensation
expense 11,525 11,759 10,832 47,623 40,971
Amortization of
intangible assets 322 617 617 2,173 2,418
Income tax
adjustment 167 (45) - - -
---------- ---------- ---------- ---------- ----------
Non-GAAP net income $ 7,288 $ 7,195 $ 1,917 $ 22,713 $ 19,472
========== ========== ========== ========== ==========
Non-GAAP EPS $ 0.12 $ 0.12 $ 0.03 $ 0.38 $ 0.34
========== ========== ========== ========== ==========
Shares used in
Computing non-GAAP
EPS Reconciliation:
Diluted shares:
Weighted-average
shares used in
calculating GAAP
diluted net loss per
share 58,128 56,928 54,727 56,626 53,581
Additional dilutive
securities for non-
GAAP income 3,149 3,295 1,375 2,657 4,057
---------- ---------- ---------- ---------- ----------
Weighted-average
shares used in
calculating non-GAAP
diluted net income
per share 61,277 60,223 56,102 59,283 57,638
========== ========== ========== ========== ==========
INFOBLOX INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
July 31, July 31,
2015 2014
------------ ------------
(Unaudited) (a)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 103,124 $ 78,535
Short-term investments 227,712 191,316
Accounts receivable, net 45,881 36,420
Inventory 8,588 6,345
Prepaid expenses and other current assets 10,459 7,506
------------ ------------
Total current assets 395,764 320,122
Property and equipment, net 23,225 18,785
Restricted cash 3,515 3,516
Intangible assets, net 1,923 4,096
Goodwill 33,293 33,293
Other assets 1,547 756
------------ ------------
TOTAL ASSETS $ 459,267 $ 380,568
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 19,136 $ 15,648
Accrued compensation 22,931 13,197
Deferred revenue, net 95,130 81,964
------------ ------------
Total current liabilities 137,197 110,809
Deferred revenue, net 41,717 34,149
Other liabilities 5,201 6,314
------------ ------------
TOTAL LIABILITIES 184,115 151,272
------------ ------------
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; 58,836 shares and 55,065
shares issued and outstanding as of July 31,
2015 and July 31, 2014 6 6
Additional paid-in capital 438,725 365,833
Accumulated other comprehensive loss (37) (84)
Accumulated deficit (163,542) (136,459)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 275,152 229,296
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 459,267 $ 380,568
============ ============
(a) Derived from the July 31, 2014 audited consolidated financial
statements.
INFOBLOX INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended July 31,
-------------------------
2015 2014
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (27,083) $ (23,917)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Stock-based compensation 47,623 40,971
Depreciation and amortization 8,888 8,735
Excess tax benefits from employee stock plans (207) (170)
Other 2,096 827
Changes in operating assets and liabilities:
Accounts receivable, net (9,461) 2,308
Inventory (2,615) (1,867)
Prepaid expenses, other current assets and
other assets (3,629) (1,500)
Accounts payable and accrued liabilities 2,833 3,061
Accrued compensation 9,734 725
Deferred revenue, net 20,734 17,927
Other liabilities (902) (792)
------------ ------------
Net cash provided by operating activities 48,011 46,308
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments (147,137) (186,322)
Proceeds from maturities of short-term
investments 109,290 86,730
Proceeds from sales of short-term investments 1,001 47,180
Purchases of property and equipment (10,303) (6,352)
Business acquisition - (1,000)
------------ ------------
Net cash used in investing activities (47,149) (59,764)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under the
employee stock plans 25,039 21,993
Excess tax benefits from employee stock plans 207 170
------------ ------------
Net cash provided by financing activities 25,246 22,163
------------ ------------
Effect of foreign exchange rate changes on cash and
cash equivalents (1,519) -
------------ ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 24,589 8,707
CASH AND CASH EQUIVALENTS-Beginning of period 78,535 69,828
------------ ------------
CASH AND CASH EQUIVALENTS-End of period $ 103,124 $ 78,535
============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Purchases of property and equipment not yet paid $ 1,341 $ 484
============ ============
Cash paid for income taxes, net $ 483 $ 489
============ ============
Restricted stock units released in connection with
business acquisition $ - $ 573
============ ============
Investor Contact:Renee Lyall Infoblox [email protected] Contact:Mike Langberg Infoblox [email protected]
Source: Infoblox