Market Overview

Sierra Wireless Reports Second Quarter 2018 Results

Share:

Revenue increases 16.4% year-over-year to $201.9 million in the second
quarter of 2018

Sierra Wireless, Inc. (NASDAQ:SWIR) (TSX:SW) today reported results
for its second quarter ending June 30, 2018. All results are reported in
U.S. dollars and are prepared in accordance with United States generally
accepted accounting principles (GAAP), except as otherwise indicated
below.

"In the second quarter of 2018, we delivered solid revenue and adjusted
EBITDA growth on a year-over-year and sequential basis," said Kent
Thexton, Interim CEO. "Our two fastest growing and highest margin
businesses - namely Enterprise Solutions and IoT Services - represented
25% of total revenue in Q2 and we continued to strengthen our position
as a leader in device-to-cloud IoT solutions."

Revenue for the second quarter of 2018 was $201.9 million, an increase
of 16.4%, compared to $173.4 million in the second quarter of 2017.
Product revenue was $178.8 million, up 9.4% year-over-year, and Services
and Other revenue was $23.1 million, up 130.4% compared to the second
quarter of 2017. Quarterly revenue for the three business segments was
as follows: (i) Revenue from OEM Solutions was $150.9 million in the
second quarter of 2018, up 4.5% compared to $144.4 million in the second
quarter of 2017; (ii) Revenue from Enterprise Solutions was $28.4
million in the second quarter of 2018, up 31.1% compared to $21.7
million in the second quarter of 2017; and (iii) Revenue from IoT
Services was $22.6 million in the second quarter of 2018, up 209.6%,
compared to $7.3 million in the second quarter of 2017 driven by the
contribution from Numerex and organic subscriber growth.

GAAP RESULTS

  • Gross margin was $69.3 million, or 34.3% of revenue, in the second
    quarter of 2018 compared to $59.6 million, or 34.4% of revenue, in the
    second quarter of 2017.
  • Operating expenses were $74.4 million and loss from operations was
    $5.1 million in the second quarter of 2018 compared to operating
    expenses of $55.6 million and earnings from operations of $4.0 million
    in the second quarter of 2017.
  • Net loss was $11.4 million, or $0.32 per diluted share, in the second
    quarter of 2018 compared to net earnings of $6.8 million, or $0.21 per
    diluted share, in the second quarter of 2017.

NON-GAAP RESULTS(1)

  • Gross margin was 34.4% in the second quarter of 2018 compared to 34.5%
    in the second quarter of 2017.
  • Operating expenses were $59.0 million and earnings from operations
    were $10.4 million in the second quarter of 2018 compared to operating
    expenses of $48.3 million and earnings from operations of $11.4
    million in the second quarter of 2017.
  • Net earnings were $9.7 million, or $0.27 per diluted share, in the
    second quarter of 2018 compared to net earnings of $9.8 million, or
    $0.30 per diluted share, in the second quarter of 2017.
  • Adjusted earnings before interest, taxes, depreciation and
    amortization ("Adjusted EBITDA") were $15.6 million in the second
    quarter of 2018 compared to $14.9 million in the second quarter of
    2017.

(1) See "Non-GAAP Financial Measures" and "Reconciliation of GAAP
and Non-GAAP Results by Quarter" below.

Cash and cash equivalents at the end of the second quarter of 2018 were
$73.4 million, representing an increase of $2.8 million, compared to the
end of the first quarter of 2018. The increase in cash was primarily due
to cash flows from operating activities partially offset by higher
capital expenditures.

Accounting Standard Adoption

We adopted the new accounting standard for revenue recognition (ASC 606)
effective January 1, 2018. Our second quarter 2018 financial results
reflect the adoption of this new standard and prior periods have been
adjusted accordingly.

Financial Guidance

For the third quarter of 2018, we expect revenue to be in the range of
$198 million to $207 million and non-GAAP net earnings per share to be
in the range of $0.22 to $0.30.

This Non-GAAP guidance reflects current business indicators and
expectations. Inherent in this guidance are risk factors that are
described in greater detail in our regulatory filings. Our actual
results could differ materially from those presented above. All figures
are approximations based on management's current beliefs and assumptions.

TSX Approval of Normal Course Issuer Bid

Sierra Wireless today announced that it has received approval from the
Toronto Stock Exchange for a Normal Course Issuer Bid ("NCIB"). Under
the NCIB, Sierra Wireless may purchase for cancellation up to
approximately 3.58 million of its common shares or 10.0% of the public
float. The NCIB will commence on August 8, 2018 and will terminate on
the earlier of: (i) August 7, 2019, (ii) the date Sierra Wireless
completes its purchases pursuant to the notice of intention filed with
the TSX, or (iii) the date of notice by Sierra Wireless of termination
of the NCIB.

Non-GAAP Financial Measures

We disclose non-GAAP financial measures as we believe they provide
useful information on actual operating performance and assist in
comparisons from one period to another. Readers are cautioned that
non-GAAP financial measures do not have any standardized meaning
prescribed by U.S. GAAP and therefore may not be comparable to similar
measures presented by other companies.

Non-GAAP gross margin excludes the impact of stock-based compensation
expense and related social taxes and certain other nonrecurring costs or
recoveries.

Non-GAAP net earnings (loss) from operations excludes the impact of
stock-based compensation expense and related social taxes,
acquisition-related amortization, acquisition-related and integration
costs, restructuring costs, impairment and certain other nonrecurring
costs or recoveries.

In addition to the above, Non-GAAP net earnings (loss) and non-GAAP net
earnings (loss) per share exclude the impact of foreign exchange gains
or losses on translation of certain balance sheet accounts, unrealized
foreign exchange gains or losses on forward contracts and certain tax
adjustments.

We use the above-noted non-GAAP financial measures for planning purposes
and to allow us to assess the performance of our business before
including the impacts of the items noted above as they affect the
comparability of our financial results. These non-GAAP measures are
reviewed regularly by management and the Board of Directors as part of
the ongoing internal assessment of our operating performance. We also
use non-GAAP earnings from operations as one component in determining
short-term incentive compensation for management employees.

Adjusted EBITDA is defined as net earnings (loss) plus stock-based
compensation expense and related social taxes, acquisition-related and
integration costs, restructuring cost, impairment, certain other
nonrecurring costs or recoveries, amortization, foreign exchange gains
or losses on translation of certain balance sheet accounts, unrealized
foreign exchange gains or losses on forward contracts, interest and
income tax expense. Adjusted EBITDA is a metric used by investors and
analysts for valuation purposes and is an important indicator of our
operating performance and our ability to generate liquidity through
operating cash flow that will fund future working capital needs and fund
future capital expenditures.

Conference call and webcast details

Sierra Wireless Interim CEO, Kent Thexton, and CFO, David McLennan, will
host a conference call and webcast with analysts and investors to review
the results on Thursday, August 2, 2018, at 5:30 PM Eastern Time (2:30
PM PT). A live slide presentation will be available for viewing during
the call from the link provided below.

To participate in this conference call, please dial the following number
approximately ten minutes prior to the start of the call:

  • Toll-free (Canada and US): 1-877-201-0168
  • Alternate number: 1-647-788-4901
  • Conference ID: 7757189

To access the webcast, please follow the link below:

Sierra
Wireless Q2 2018 Conference Call and Webcast

If the above link does not work, please copy and paste the following URL
into your browser:

http://event.on24.com/r.htm?e=1678128&s=1&k=5CBEFE392315F17350E9294B9D4AF61E

The webcast will remain available at the above link for one year
following the call.

Cautionary Note Regarding Forward-Looking Statements

Certain statements and information in this press release are not based
on historical facts and constitute forward-looking statements or
forward-looking information within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and Canadian securities laws
("forward-looking statements") including statements and information
relating to our financial guidance for the third quarter of 2018 and our
fiscal year 2018, our business outlook for the short and longer term,
statements regarding our strategy, plans and future operating
performance; the Company's liquidity and capital resources; the
Company's financial and operating objectives and strategies to achieve
them; general economic conditions; expectations regarding the
acquisition of Numerex; estimates of our expenses, future revenues,
non-GAAP earnings per share and capital requirements; our expectations
regarding the legal proceedings we are involved in; statements with
respect to the Company's estimated working capital; expectations with
respect to the adoption of IoT solutions; expectations regarding product
and price competition from other wireless device manufacturers and
solution providers; and our ability to implement effective control
procedures. Forward-looking statements are provided to help you
understand our views of our short and long term plans, expectations and
prospects. We caution you that forward-looking statements may not be
appropriate for other purposes. We do not intend to update or revise our
forward-looking statements unless we are required to do so by securities
laws.

Forward-looking statements:

  • Typically include words and phrases about the future such as
    "outlook", "will", "may", "estimates", "intends", "believes", "plans",
    "anticipates" and "expects".
  • Are not promises or guarantees of future performance. They represent
    our current views and may change significantly.
  • Are based on a number of material assumptions, including, but not
    limited to, those listed below, which could prove to be significantly
    incorrect:
  • our ability to develop, manufacture and sell new products and services
    that meet the needs of our customers and gain commercial acceptance
  • our ability to continue to sell our products and services in the
    expected quantities at the expected prices and expected times;
  • expected cost of sales;
  • expected component supply constraints;
  • our ability to win new business;
  • our ability to integrate the business, operations and workforce of
    Numerex and to return the Numerex business to profitable growth and
    realize the expected benefits of the acquisition;
  • our ability to integrate other acquired businesses and realize
    expected benefits;
  • expected deployment of next generation networks by wireless network
    operators;
  • our operations not being adversely disrupted by other developments,
    operating, cyber security or regulatory risks; and
  • expected tax rates and foreign exchange rates.
  • Are subject to substantial known and unknown material risks and
    uncertainties. Many factors could cause our actual results,
    achievements and developments in our business to differ significantly
    from those expressed or implied by our forward-looking statements,
    including without limitation, the following factors. These risk
    factors and others are discussed in our Annual Information Form and
    Management's Discussion and Analysis of Financial Condition and
    Results of Operations, which may be found on SEDAR at www.sedar.com
    and on EDGAR at www.sec.gov
    and in our other regulatory filings with the Securities and Exchange
    Commission in the United States and the Provincial Securities
    Commissions in Canada:
  • competition from new or established competitors or from those with
    greater resources;
  • risks related to the recent acquisition and ongoing integration of
    Numerex;
  • disruption of, and demands on, our ongoing business and diversion of
    management's time and attention in connection with other acquisitions
    or divestitures;
  • the loss of or significant demand fluctuations from any of our
    significant customers;
  • cyber-attacks or other breaches of our information technology security;
  • failures of our products or services due to design flaws and errors,
    component quality issues, manufacturing defects, network service
    interruptions, cyber-security vulnerabilities or other quality issues;
  • our financial results being subject to fluctuation;
  • our ability to respond to changing technology, industry standards and
    customer requirements;
  • our ability to attract or retain key personnel;
  • risks related to infringement on intellectual property rights of
    others;
  • our ability to obtain necessary rights to use software or components
    supplied by third parties;
  • our ability to enforce our intellectual property rights;
  • difficult or uncertain global economic conditions;
  • our reliance on single source suppliers for certain components used in
    our products;
  • our dependence on a limited number of third party manufacturers;
  • unanticipated costs associated with litigation or settlements;
  • our dependence on mobile network operators to offer and promote
    acceptable wireless data service;
  • risks related to contractual disputes with counterparties;
  • risks related to governmental regulation;
  • risks related to the transmission, use and disclosure of user data and
    personal information; and
  • risks inherent in foreign jurisdictions.

About Sierra Wireless

Sierra Wireless (NASDAQ:SWIR) (TSX:SW) is an IoT pioneer, empowering
businesses and industries to transform and thrive in the connected
economy. Customers start with Sierra because we offer a device to cloud
solution, comprised of embedded and networking solutions seamlessly
integrated with our secure cloud and connectivity services. OEMs and
enterprises worldwide rely on our expertise in delivering fully
integrated solutions to reduce complexity, turn data into intelligence
and get their connected products and services to market faster. Sierra
Wireless has more than 1,300 employees globally and operates R&D centers
in North America, Europe and Asia. For more information, visit www.sierrawireless.com.

AirPrime, AirLink, AirVantage, mangOH and Legato are trademarks of
Sierra Wireless. Other product or service names mentioned herein may be
the trademarks of their respective owners.


 

SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE EARNINGS (LOSS)

(In
thousands of U.S. dollars, except where otherwise stated)

(unaudited)

 
      Three months ended June 30,   Six months ended June 30,
      2018  

2017
As adjusted (1)

  2018  

2017
As adjusted (1)

Revenue          
Product $ 178,806 $ 163,390 $ 341,737 $ 314,570
Services and other     23,097     10,026     47,044     20,064  
      201,903     173,416     388,781     334,634  
Cost of sales
Product 121,228 108,799 235,128 209,760
Services and other     11,366     4,981     22,244     9,743  
      132,594     113,780     257,372     219,503  
Gross margin     69,309     59,636     131,409     115,131  
Expenses
Sales and marketing 22,066 18,699 44,491 36,724
Research and development 24,391 20,470 48,856 39,781
Administration 19,804 10,579 32,068 20,965
Restructuring 952 259 4,543 632
Acquisition-related and integration 1,014 875 2,779 1,326
Impairment 3,668
Amortization     6,137     4,760     13,603     9,386  
      74,364     55,642     146,340     112,482  
Earnings (loss) from operations (5,055 ) 3,994 (14,931 ) 2,649
Foreign exchange gain (loss) (4,048 ) 3,517 (2,933 ) 4,616
Other income (loss)     8     (12 )   63     (3 )
Earnings (loss) before income taxes (9,095 ) 7,499 (17,801 ) 7,262
Income tax expense     2,289     729     1,946     584  
Net earnings (loss)     $ (11,384 )   $ 6,770     $ (19,747 )   $ 6,678  
Other comprehensive earnings (loss):
Foreign currency translation adjustments, net of taxes of $nil     (6,474 )   6,458     (7,241 )   8,040  
Comprehensive earnings (loss)     $ (17,858 )   $ 13,228     $ (26,988 )   $ 14,718  
 
Net earnings (loss) per share (in dollars)
Basic $ (0.32 ) $ 0.21 $ (0.55 ) $ 0.21
Diluted (0.32 ) 0.21 (0.55 ) 0.20
Weighted average number of shares outstanding (in thousands)
Basic 36,021 32,167 35,967 32,038
Diluted     36,021     32,766     35,967     32,628  

(1) Three and six months ended June 30, 2017 have been
adjusted to reflect the adoption of ASC 606 - Revenue from
Contracts with Customers.

 
 

SIERRA WIRELESS, INC.
CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except where otherwise stated)
(unaudited)

 
   

June 30, 2018

 

December 31, 2017
As adjusted (1)

Assets  
Current assets
Cash and cash equivalents $ 73,411 $ 65,003
Restricted cash 221 221
Accounts receivable, net of allowance for doubtful accounts of
$2,276 (December 31, 2017 - $1,827)
170,235 173,054
Inventories 53,570 53,143
Prepaids and other   13,617   8,221  
311,054 299,642
Property and equipment 42,425 42,977
Intangible assets 96,380 108,599
Goodwill 213,108 218,516
Deferred income taxes 10,389 12,197
Other assets   12,816   12,713  
    $ 686,172   $ 694,644  
 
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 187,197 $ 175,367
Deferred revenue   6,143   7,275  
193,340 182,642
Long-term obligations 38,597 36,637
Deferred income taxes   6,828   7,845  
    238,765   227,124  
Equity
Shareholders' equity

Common stock: no par value; unlimited shares authorized; issued and
outstanding:
36,094,627 shares (December 31, 2017 - 35,861,510 shares)

431,993 427,748

Preferred stock: no par value; unlimited shares authorized;
issued
and outstanding: nil shares

Treasury stock: at cost; 36,425 shares (December 31, 2017 – 222,639
shares)
(537 ) (3,216 )
Additional paid-in capital 27,913 27,962
Retained earnings (deficit) (2,245 ) 17,502
Accumulated other comprehensive loss   (9,717 ) (2,476 )
    447,407   467,520  
    $ 686,172   $ 694,644  

(1) December 31, 2017 has been adjusted to reflect the
adoption of ASC 606 - Revenue from Contracts with Customers.

 
 

SIERRA WIRELESS, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS

(In thousands of U.S. dollars)
(unaudited)

 
   

Three months ended
June 30,

 

Six months ended
June 30,

    2018  

2017
As adjusted (1)

  2018  

2017
As adjusted (1)

Cash flows provided by (used in):        
Operating activities
Net earnings (loss) $ (11,384 ) $ 6,770 $ (19,747 ) $ 6,678
Items not requiring (providing) cash
Amortization 9,651 7,194 20,359 14,191
Stock-based compensation 4,237 2,577 7,051 4,703
Deferred income taxes 1,014 (366 ) 1,082 (1,257 )
Impairment 3,668
Unrealized foreign exchange loss (gain) 5,887 (4,675 ) 4,325 (5,844 )
Other 130 (246 ) 569 (182 )
Changes in non-cash working capital
Accounts receivable (4,449 ) (2,004 ) (1,692 ) 12,728
Inventories (7,413 ) (16,615 ) (789 ) (23,240 )
Prepaids and other (154 ) (2,775 ) (5,718 ) (4,825 )
Accounts payable and accrued liabilities 16,440 11,395 18,426 (7,830 )
Deferred revenue   (2,638 )   (386 )   (1,689 )   (1,212 )
Cash flows provided by (used in) operating activities   11,321     869     22,177     (2,422 )
Investing activities
Additions to property and equipment (4,935 ) (5,053 ) (8,999 ) (7,940 )
Additions to intangible assets (641 ) (297 ) (1,486 ) (1,097 )
Proceeds from sale of property and equipment 45 27 62 27
Acquisition of GNSS business       47         (3,145 )
Cash flows used in investing activities   (5,531 )   (5,276 )   (10,423 )   (12,155 )
Financing activities
Issuance of common shares 607 301 1,278 4,922
Repurchase of common shares for cancellation (2,779 )
Taxes paid related to net settlement of equity awards (790 ) (62 ) (1,454 ) (1,089 )
Payment for contingent consideration (130 ) (276 ) (130 ) (1,236 )
Decrease in other long-term obligations   (244 )   (138 )   (443 )   (234 )
Cash flows used in financing activities   (557 )   (175 )   (749 )   (416 )
Effect of foreign exchange rate changes on cash and cash equivalents   (2,410 )   1,049     (2,597 )   1,233  
Cash, cash equivalents and restricted cash, increase (decrease) in
the period
2,823 (3,533 ) 8,408 (13,760 )
Cash, cash equivalents and restricted cash, beginning of period   70,809     92,545     65,224     102,772  
Cash, cash equivalents and restricted cash, end of period   $ 73,632     $ 89,012     $ 73,632     $ 89,012  

(1) Three and six months ended June 30, 2017 have been
adjusted to reflect the adoption of ASC 606 - Revenue from
Contracts with Customers.

 
 

SIERRA WIRELESS, INC.
RECONCILIATION OF GAAP
AND NON-GAAP RESULTS BY QUARTER

 

(in thousands of U.S. dollars, except where
otherwise
stated)

    2018     2017 (1)
    Q2   Q1     Total   Q4   Q3   Q2   Q1
         
Gross margin - GAAP $ 69,309 $ 62,100 $ 234,239 $ 61,814 $ 57,294 $ 59,636 $ 55,495
Stock-based compensation and related social taxes 57 307 461 122 123 108 108
Realized gains (losses) on hedge contracts       (6 )     23     11     12          
Gross margin - Non-GAAP $ 69,366 $ 62,401 $ 234,723 $ 61,947 $ 57,429 $ 59,744 $ 55,603
 
Earnings (loss) from operations - GAAP $ (5,055 ) $ (9,876 ) $ 100 $ (2,939 ) $ 390 $ 3,994 $ (1,345 )
Stock-based compensation and related social taxes 3,950 2,840 10,374 2,869 2,780 2,577 2,148
Acquisition-related and integration 1,014 1,765 8,195 4,792 2,077 875 451
Restructuring 952 3,591 1,076 245 199 259 373
Other nonrecurring costs 5,141 318 42 276
Realized gains (losses) on hedge contracts (14 ) (51 ) 419 209 210
Impairment 3,668 3,668
Acquisition-related amortization   4,426     5,534       15,486     4,306     3,845     3,694     3,641  
Earnings from operations - Non-GAAP $ 10,414 $ 3,803 $ 39,636 $ 9,482 $ 9,501 $ 11,441 $ 9,212
 
Net earnings (loss) - GAAP $ (11,384 ) $ (8,363 ) $ 4,518 $ (3,514 ) $ 1,354 $ 6,770 $ (92 )

Stock-based compensation and
related social taxes,
restructuring,
impairment, acquisition-related,
integration,
realized gains (losses) on
hedge contracts and other
nonrecurring
costs (recoveries)

11,057 8,196 23,631 7,906 5,056 3,753 6,916
Amortization 9,651 10,708 30,503 8,764 7,548 7,194 6,997
Interest and other, net (8 ) (55 ) (67 ) (38 ) (32 ) 12 (9 )
Foreign exchange loss (gain) 4,034 (1,166 ) (7,131 ) (1,058 ) (1,457 ) (3,517 ) (1,099 )
Income tax expense (recovery)   2,289     (343 )     3,199     1,880     735     729     (145 )
Adjusted EBITDA 15,639 8,977 54,653 13,940 13,204 14,941 12,568
Amortization (exclude acquisition-related amortization) (5,225 ) (5,174 ) (15,017 ) (4,458 ) (3,703 ) (3,500 ) (3,356 )
Interest and other, net 8 55 67 38 32 (12 ) 9
Income tax expense - Non-GAAP   (769 )   (564 )     (5,184 )   (312 )   (1,816 )   (1,615 )   (1,441 )
Net earnings - Non-GAAP $ 9,653 $ 3,294 $ 34,519 $ 9,208 $ 7,717 $ 9,814 $ 7,780
 
Diluted net earnings (loss) per share
GAAP - (in dollars per share) $ (0.32 ) $ (0.23 ) $ 0.14 $ (0.11 ) $ 0.04 $ 0.21 $
Non-GAAP - (in dollars per share)     $ 0.27     $ 0.09       $ 1.05     $ 0.28     $ 0.24     $ 0.30     $ 0.24  

(1) 2017 has been adjusted to reflect the adoption of ASC 606
- Revenue from Contracts with Customers.

 

SIERRA WIRELESS, INC.
SEGMENTED RESULTS

 

(In thousands of U.S. dollars, except where
otherwise
stated)

    2018   2017 (1)
    Q2   Q1   Total   Q4   Q3   Q2   Q1
         
OEM Solutions
Revenue $ 150,939 $ 135,211 $ 554,537 $ 139,795 $ 137,850 $ 144,467 $ 132,425
Gross margin
- GAAP $ 45,857 $ 38,924 $ 170,307 $ 41,453 $ 40,680 $ 46,262 $ 41,912
- Non-GAAP $ 45,900 $ 39,142 $ 170,694 $ 41,554 $ 40,787 $ 46,352 $ 42,001
Gross margin %
- GAAP 30.4 % 28.8 % 30.7 % 29.7 % 29.5 % 32.0 % 31.6 %
- Non-GAAP 30.4 % 28.9 % 30.8 % 29.7 % 29.6 % 32.1 % 31.7 %
 
Enterprise Solutions
Revenue $ 28,402 $ 29,200 $ 101,535 $ 31,879 $ 26,277 $ 21,661 $ 21,718
Gross margin
- GAAP $ 14,184 $ 14,028 $ 48,521 $ 15,129 $ 12,631 $ 10,276 $ 10,485
- Non-GAAP $ 14,192 $ 14,075 $ 48,593 $ 15,152 $ 12,652 $ 10,289 $ 10,500
Gross margin %
- GAAP 49.9 % 48.0 % 47.8 % 47.5 % 48.1 % 47.4 % 48.3 %
- Non-GAAP 50.0 % 48.2 % 47.9 % 47.5 % 48.1 % 47.5 % 48.3 %
 
IoT Services
Revenue $ 22,562 $ 22,467 $ 34,655 $ 11,859 $ 8,433 $ 7,288 $ 7,075
Gross margin
- GAAP $ 9,268 $ 9,148 $ 15,411 $ 5,232 $ 3,983 $ 3,098 $ 3,098
- Non-GAAP $ 9,274 $ 9,184 $ 15,436 $ 5,241 $ 3,990 $ 3,103 $ 3,102
Gross margin %
- GAAP 41.1 % 40.7 % 44.5 % 44.1 % 47.2 % 42.5 % 43.8 %
- Non-GAAP 41.1 % 40.9 % 44.5 % 44.2 % 47.3 % 42.6 % 43.8 %
 
Total
Revenue $ 201,903 $ 186,878 $ 690,727 $ 183,533 $ 172,560 $ 173,416 $ 161,218
Gross margin
- GAAP $ 69,309 $ 62,100 $ 234,239 $ 61,814 $ 57,294 $ 59,636 $ 55,495
- Non-GAAP $ 69,366 $ 62,401 $ 234,723 $ 61,947 $ 57,429 $ 59,744 $ 55,603
Gross margin %
- GAAP 34.3 % 33.2 % 33.9 % 33.7 % 33.2 % 34.4 % 34.4 %
- Non-GAAP     34.4 %   33.4 %   34.0 %   33.8 %   33.3 %   34.5 %   34.5 %

(1) 2017 has been adjusted to reflect the adoption of ASC 606
- Revenue from Contracts with Customers.

 

View Comments and Join the Discussion!