SolarWinds Announces Second Quarter 2012 Results
AUSTIN, TX, Jul 25, 2012 (MARKETWIRE via COMTEX) -- SolarWinds(R) (SWI), a
leading provider of powerful and affordable IT management software, today
reported results for its second quarter ended June 30, 2012.
--Record total revenue for the second quarter of $64.0 million,
representing 40% year-over-year growth.
--Record license revenue for the second quarter of $29.5 million,
representing 40% year-over-year growth.
--GAAP operating income of $26.9 million and non-GAAP operating income
of $34.3 million, or a non-GAAP operating margin for the second
quarter of 53%.
--GAAP diluted earnings per share of $0.26 and non-GAAP diluted earnings
per share of $0.33.
--Second quarter free cash flow of $35.2 million, representing 46%
year-over-year growth.
Financial Results
SolarWinds reported record total revenue for the second quarter of 2012 of $64.0
million, a 40% increase over total revenue for the second quarter of 2011.
License revenue was a record $29.5 million for the second quarter of 2012
representing a 40% increase over license revenue for the second quarter of 2011.
Maintenance revenue was a record $34.6 million for the second quarter of 2012,
representing a 40% increase over maintenance revenue for the second quarter of
2011.
On a GAAP basis, diluted earnings per share were $0.26 for the second quarter of
2012 compared to $0.18 for the second quarter of 2011. Non-GAAP diluted earnings
per share were $0.33 for the second quarter of 2012 compared to $0.22 for the
second quarter of 2011.
Net cash provided by operating activities was $34.1 million for the second
quarter of 2012 compared to $23.6 million for the second quarter of 2011,
representing a year-over-year increase of 44%. Free cash flow was $35.2 million
for the second quarter of 2012 compared to $24.0 million for the second quarter
of 2011, representing a year-over-year increase of 46%. Cash, cash equivalents,
and investments at the end of the second quarter of 2012 were $196.2 million, an
increase of $25.0 million from the end of the first quarter of 2012.
The financial results included in this press release are preliminary and pending
final review by the company and its external auditors. Financial results will not
be final until SolarWinds files its quarterly report on Form 10-Q for the period.
Information about SolarWinds' use of these non-GAAP financial measures is
provided below under "Non-GAAP Financial Measures."
Recent Business Highlights
"Once again, the SolarWinds team delivered a solid performance during the second
quarter, driving record results. I am very pleased with our execution around the
world. While we generated solid growth in each of our geographic regions, the
EMEA region, in particular, produced the strongest growth overall. We believe
that this performance reflects several factors including the appeal of our value
proposition of affordable and powerful products and the investments we've made to
build our awareness internationally," said Kevin Thompson, SolarWinds' President
and Chief Executive Officer.
"As we move into the second half of 2012, our teams are focused on making sure
that we remain a leader in our core markets, like network management, while we
aim to expand our relevance in other areas. We continue to believe that we can
offer the market a unique experience based on delivering the unexpected
simplicity of products that just work for IT professionals," added Thompson.
SolarWinds' business highlights during the second quarter of 2012 include:
--SolarWinds launched the Japanese version of its flagship network
management product, SolarWinds Network Performance Monitor (NPM),
reflecting the company's commitment to expanding its opportunities in
the global market. NPM's Japanese launch builds on significant
investments aimed at extending SolarWinds' presence in Japan including
forging key partnerships, creating a dedicated native language user
support team, and developing a recently launched Japanese-language
website.
--SolarWinds Server & Application Monitor (SAM) won best of
Microsoft(R) TechEd North America 2012 in Systems Management and
Operations, adding to the list of honors SolarWinds' products have
received across the IT management space given their power,
ease-of-use, and affordability.
--SolarWinds continued to deliver frequent new releases of existing
products. SolarWinds added support for Microsoft Hyper-V(TM) to its
award-winning Virtualization Manager, making it one of the most
comprehensive and affordable virtualization management solutions for
managing VMware(R) and Microsoft Hyper-V(TM) hypervisors.
SolarWinds also released IP Address Manager (IPAM) 3.0. IPAM is one of
the most affordable and comprehensive solutions for integrated DHCP,
DNS, and IP address management available today, providing IT pros with
a strong alternative to the complex and expensive appliance-based
offerings from incumbent vendors.
--Building on the momentum established in Q1 2012, SolarWinds sought to
expand its awareness and relevance within the IT Management space
through the release of new products. In early Q2, SolarWinds released
Mobile Admin, based on technology acquired from Rove, which provides
IT pros with an affordable and easy-to-use solution for supporting
over 40 key IT technologies and platforms from their Android, iOS, and
Blackberry smartphones and tablets. The company also introduced WSUS
Agent, a free diagnostic tool for testing WSUS connections and
validating Windows Update Agent(R) configuration values.
"Our second quarter results once again illustrated the powerful benefits of our
unique business model, where our higher-than-expected revenue helped drive strong
non-GAAP operating margins and earnings per share," said Mike Berry, SolarWinds'
Executive Vice President and Chief Financial Officer. "We expect to continue to
drive revenue growth through a number of organic and inorganic investments while
maintaining our focus on strong margins and cash generation. In addition,
reflecting the confidence we have in our business, we are increasing our full
year outlook despite macro-economic headwinds in areas around the globe," added
Berry.
Financial Outlook
As of July 25, 2012, SolarWinds is providing its financial outlook for its third
quarter and full year of 2012. The financial information below represents
forward-looking non-GAAP financial information, including an estimate of non-GAAP
operating income as a percentage of revenue, and non-GAAP diluted earnings per
share, for the third quarter of 2012 and for the full year 2012. These non-GAAP
financial measures exclude, among other items mentioned below, stock-based
compensation expense and related employer-paid payroll taxes. SolarWinds cannot
reasonably estimate the expected stock-based compensation expense and related
employer-paid payroll taxes for these future periods as the amounts depend upon
such factors as the future price of SolarWinds' stock for purposes of
computation. In addition, costs related to non-recurring items and acquisitions
are not something that SolarWinds can estimate because they are a function of
what non-recurring items and acquisitions, if any, occur and the kind of costs
incurred in connection with any such non-recurring items or acquisitions.
Financial Outlook for the Third Quarter of 2012
SolarWinds management currently expects to achieve the following results for the
third quarter of 2012:
--Total revenue in the range of $66.0-$68.5 million, or 22% to 27%
growth over the third quarter of 2011.
--Non-GAAP operating income representing 50%-51% of revenue.
--Non-GAAP diluted earnings per share of $0.29-$0.31.
--Weighted-average shares outstanding of approximately 76.8 million.
Financial Outlook for Full Year 2012
SolarWinds management is increasing its annual outlook and currently expects to
achieve the following results for the full year 2012:
--Total revenue in the range of $257.0-$263.0 million, or 30% to 33%
year-over-year growth.
--Non-GAAP operating income representing 51%-52% of revenue.
--Non-GAAP diluted earnings per share of $1.20-$1.24.
--Weighted-average shares outstanding of approximately 76.5 million.
Conference Call and Webcast
In conjunction with this announcement, SolarWinds will host a conference call
today to discuss its financial results and other business at 8:00am CT (9:00am
ET/6). A live webcast of the event, including any supplemental information, will
be available on the SolarWinds Investor Relations website at
ir.solarwinds.com. A live dial-in will be available domestically at
800-946-0774 and internationally at +1-719-457-2604. To access the live call,
please dial in 5-10 minutes before the scheduled start time. A replay of the
webcast will be available on a temporary basis shortly after the event on the
SolarWinds Investor Relations website.
Forward-Looking Statements
This press release contains "forward-looking" statements, which are subject to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, including SolarWinds' financial outlook, its expectation to continue to
drive revenue growth through a number of organic and inorganic investments while
maintaining its focus on strong margins and cash generation. These
forward-looking statements are based on management's beliefs and assumptions and
on information currently available to management. Forward-looking statements
include all statements that are not historical facts and may be identified by
terms such as "believe," "continue," "expect," or similar expressions and the
negatives of those terms. Forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause actual results, performance
or achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking statements. Factors
that could cause or contribute to such differences include, but are not limited
to, the following: (a) the inability to generate significant volumes of sales
leads from Internet search engines, marketing campaigns and traffic to our
websites; (b) the possibility that general economic conditions or uncertainty
cause information technology spending to be reduced or purchasing decisions to be
delayed; (c) the presence or absence of occasional large customer orders,
including in particular those placed by the U.S. federal government; (d) the
inability to increase sales to existing customers and to attract new customers;
(e) SolarWinds' ability to successfully identify, complete, and integrate
acquisitions; (f) the timing and success of new product introductions and product
upgrades by SolarWinds or its competitors; (g) potential foreign exchange gains
and losses related to expenses and sales denominated in currencies other than the
functional currency of an associated entity; and (h) such other risks and
uncertainties described more fully in documents filed with or furnished to the
Securities and Exchange Commission, including the Form 10-Q that SolarWinds
anticipates filing on or before August 9, 2012. All information provided in this
release is as of the date hereof and SolarWinds undertakes no duty to update this
information except as required by law.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with GAAP,
this press release and the accompanying tables contain certain non-GAAP financial
measures. The tables below set forth a reconciliation of each of these non-GAAP
measures to a GAAP financial measure that we consider to be most comparable.
SolarWinds believes that each of these non-GAAP financial measures provides
meaningful supplemental information regarding its performance by excluding
certain items that may not be indicative of its core business operations.
SolarWinds' management and Board of Directors use certain of these non-GAAP
measures to assess operational performance and to determine employee incentive
compensation. Accordingly, these measures may provide helpful insight to
investors on the motivation and decision-making of management in operating the
business. SolarWinds considers free cash flow also to be a liquidity measure that
provides important information regarding the cash generated by the business after
the purchase of property and equipment that can then be used for, among other
things, strategic acquisitions and investments in the business, stock repurchases
and funding ongoing operations.
SolarWinds also believes that these non-GAAP financial measures are used by
investors and security analysts to (a) compare and evaluate its performance from
period to period and (b) compare its performance to those of its competitors.
These non-GAAP measures exclude certain items that can vary substantially from
company to company depending upon their financing and accounting methods, the
book value of their assets, their capital structures and the method by which
their assets were acquired.
There are limitations associated with the use of these non-GAAP financial
measures. These non-GAAP financial measures are not prepared in accordance with
GAAP, do not reflect a comprehensive system of accounting and may not be
completely comparable to similarly-titled measures of other companies due to
potential differences in the exact method of calculation between companies.
Certain items that are excluded from these non-GAAP financial measures can have a
material impact on operating and net income. In addition, free cash flow does not
represent the total increase or decrease in the cash balance for the period.
As a result, these non-GAAP financial measures have limitations and should not be
considered in isolation from, or as a substitute for, the most comparable GAAP
measures. SolarWinds' management and Board of Directors compensate for these
limitations by using these non-GAAP financial measures as supplements to GAAP
financial measures and by reviewing the reconciliations of the non-GAAP financial
measures to their most comparable GAAP financial measure. Investors are
encouraged to review the reconciliations of these non-GAAP financial measures to
their most comparable GAAP financial measures that are set forth in the tables
below.
About SolarWinds
SolarWinds (SWI) provides powerful and affordable IT management software to
customers worldwide -- from Fortune 500 enterprises to small businesses. We work
to put our users first and remove the obstacles that have become "status quo" in
traditional enterprise software. SolarWinds products are downloadable, easy to
use and maintain, and provide the power, scale, and flexibility needed to address
users' management priorities. Our online user community, thwack, is a
gathering-place where tens of thousands of IT pros solve problems, share
technology, and participate in product development for all of SolarWinds'
products. Learn more today at solarwinds.com.
SolarWinds, the SolarWinds logo and thwack marks are exclusive trademarks of
SolarWinds, are registered with the U.S. patent and trademark office, and may be
registered or pending registration in other countries. All other SolarWinds
trademarks, service marks, and logos, including without limitation, Mobile Admin,
DameWare and Storage Manager, Powered by Profiler, may be common law marks or
registered or pending registration in the United States or in other countries.
All other trademarks or registered trademarks mentioned herein are used for
identification purposes only and may be trademarks or registered trademarks of
their respective companies.
Copyright Copyright 2012 SolarWinds Worldwide, LLC. All rights reserved.
SolarWinds, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share information)
(Unaudited)
June 30,December 31,
20122011
------------------------
Assets
Current assets:
Cash and cash equivalents$144,008$122,707
Short-term investments39,12129,688
Accounts receivable, net of allowances of $181
and $192 as of June 30, 2012 and December 31,
2011, respectively28,80526,965
Income tax receivable73110
Deferred taxes938668
Prepaid and other current assets3,2752,770
------------------------
Total current assets216,220182,908
Property and equipment, net7,4467,341
Long-term investments13,070-
Deferred taxes4,4143,334
Goodwill123,154110,746
Intangible assets and other, net60,89758,079
------------------------
Total assets$425,201$362,408
========================
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$2,473$2,213
Accrued liabilities10,0279,442
Accrued earnout9733,513
Income taxes payable1,868779
Current portion of deferred revenue82,35273,774
------------------------
Total current liabilities97,69389,721
Long-term liabilities:
Deferred revenue, net of current portion4,3653,373
Non-current deferred taxes-289
Other long-term liabilities6,0374,078
------------------------
Total liabilities108,09597,461
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value: 123,000,000
shares authorized and 74,123,658 and
73,367,367 shares issued and outstanding as
of June 30, 2012 and December 31, 2011,
respectively7473
Additional paid-in capital211,448194,379
Accumulated other comprehensive loss(4,239)(2,769)
Accumulated earnings109,82373,264
------------------------
Total stockholders' equity317,106264,947
------------------------
Total liabilities and stockholders' equity$425,201$362,408
========================
SolarWinds, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share information)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
------------------------------------
2012201120122011
--------------------------------
Revenue:
License$ 29,454$ 21,069$ 56,911$ 41,449
Maintenance and other34,58624,75466,80047,352
--------------------------------
Total revenue64,04045,823123,71188,801
Cost of license revenue1,8608093,7401,574
Cost of maintenance and other
revenue2,4101,7584,8033,479
--------------------------------
Gross profit59,77043,256115,16883,748
Operating expenses:
Sales and marketing17,58312,77834,14324,505
Research and development6,9295,03413,60010,072
General and administrative8,3706,31716,81912,987
--------------------------------
Total operating expenses32,88224,12964,56247,564
--------------------------------
Operating income26,88819,12750,60636,184
Other income (expense):
Interest income10770195125
Other expense, net(33)(210)(49)(516)
--------------------------------
Total other income (expense)74(140)146(391)
--------------------------------
Income before income taxes26,96218,98750,75235,793
Income tax expense7,5355,43614,19410,532
--------------------------------
Net income$ 19,427$ 13,551$ 36,558$ 25,261
================================
Net income per share:
Basic earnings per share$0.26$0.19$0.49$0.35
================================
Diluted earnings per share$0.26$0.18$0.48$0.34
================================
Weighted-average shares used to
compute net income per share:
Shares used in computation of
basic earnings per share74,03372,71973,88572,541
================================
Shares used in computation of
diluted earnings per share75,84874,34675,64274,184
================================
SolarWinds, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts and percentages)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
------------------------------------
2012201120122011
--------------------------------
Revenue$ 64,040$ 45,823$123,711$ 88,801
GAAP cost of revenue$4,270$2,567$8,543$5,053
Amortization of intangible assets
(1)(1,703)(752)(3,385)(1,453)
Stock-based compensation expense
and related employer-paid payroll
taxes (2)(71)(47)(163)(100)
--------------------------------
Non-GAAP cost of revenue$2,496$1,768$4,995$3,500
================================
GAAP gross profit$ 59,770$ 43,256$115,168$ 83,748
Amortization of intangible assets
(1)1,7037523,3851,453
Stock-based compensation expense
and related employer-paid payroll
taxes (2)7147163100
--------------------------------
Non-GAAP gross profit$ 61,544$ 44,055$118,716$ 85,301
================================
GAAP sales and marketing expense$ 17,583$ 12,778$ 34,143$ 24,505
Stock-based compensation expense
and related employer-paid payroll
taxes (2)(1,121)(921)(2,514)(1,830)
--------------------------------
Non-GAAP sales and marketing expense $ 16,462$ 11,857$ 31,629$ 22,675
================================
GAAP research and development
expense$6,929$5,034$ 13,600$ 10,072
Stock-based compensation expense
and related employer-paid payroll
taxes (2)(710)(406)(1,511)(876)
--------------------------------
Non-GAAP research and development
expense$6,219$4,628$ 12,089$9,196
================================
GAAP general and administrative
expense$8,370$6,317$ 16,819$ 12,987
Amortization of intangible assets
(1)(1,833)(683)(3,658)(1,154)
Stock-based compensation expense
and related employer-paid payroll
taxes (2)(1,816)(1,433)(3,664)(2,861)
Acquisition related adjustments
(3)(111)90(333)(914)
--------------------------------
Non-GAAP general and administrative
expense$4,610$4,291$9,164$8,058
================================
GAAP operating expense$ 32,882$ 24,129$ 64,562$ 47,564
Amortization of intangible assets
(1)(1,833)(683)(3,658)(1,154)
Stock-based compensation expense
and related employer-paid payroll
taxes (2)(3,647)(2,760)(7,689)(5,567)
Acquisition related adjustments
(3)(111)90(333)(914)
--------------------------------
Non-GAAP operating expense$ 27,291$ 20,776$ 52,882$ 39,929
================================
GAAP operating income$ 26,888$ 19,127$ 50,606$ 36,184
Amortization of intangible assets
(1)3,5361,4357,0432,607
Stock-based compensation expense
and related employer-paid payroll
taxes (2)3,7182,8077,8525,667
Acquisition related adjustments
(3)111(90)333914
--------------------------------
Non-GAAP operating income$ 34,253$ 23,279$ 65,834$ 45,372
================================
GAAP other income (expense)$74$(140) $146$(391)
Acquisition related adjustments
(3)1310822108
--------------------------------
Non-GAAP other income (expense)$87$(32) $168$(283)
================================
GAAP income tax expense$7,535$5,436$ 14,194$ 10,532
Income tax effect on non-GAAP
exclusions (4)2,0251,1234,2162,170
--------------------------------
Non-GAAP income tax expense$9,560$6,559$ 18,410$ 12,702
================================
GAAP net income$ 19,427$ 13,551$ 36,558$ 25,261
Amortization of intangible assets
(1)3,5361,4357,0432,607
Stock-based compensation expense
and related employer-paid payroll
taxes (2)3,7182,8077,8525,667
Acquisition related adjustments
(3)124183551,022
Tax benefits associated with above
adjustments (4)(2,025)(1,123)(4,216)(2,170)
--------------------------------
Non-GAAP net income$ 24,780$ 16,688$ 47,592$ 32,387
================================
Non-GAAP diluted earnings per share
(5)$0.33$0.22$0.63$0.44
================================
Weighted-average shares used in
computing diluted earnings per
share75,84874,34675,64274,184
================================
Percentage of Revenue:
GAAP gross profit93.3%94.4%93.1%94.3%
Non-GAAP adjustments (1)(2)2.81.72.91.7
--------------------------------
Non-GAAP gross profit96.1%96.1%96.0%96.1%
================================
GAAP operating margin42.0%41.7%40.9%40.7%
Non-GAAP adjustments (1)(2)(3)11.59.112.310.3
--------------------------------
Non-GAAP operating margin53.5%50.8%53.2%51.1%
================================
GAAP net income30.3%29.6%29.6%28.4%
Non-GAAP adjustments (1)(2)(3)(4)8.46.88.98.0
--------------------------------
Non-GAAP net income38.7%36.4%38.5%36.5%
================================
(1) Amortization of Intangible Assets. We provide non-GAAP information which
excludes expenses for the amortization of intangible assets which primarily
relate to purchased intangible assets associated with our acquisitions. Because
of varying fair value amounts of intangible assets, subjective impairment
assumptions and the variety of useful lives, which affect the recognition of
amortization expense, we believe that the exclusion of amortization expense
allows for more accurate comparisons of our operating results to our peer
companies. The amortization of purchased intangible assets associated with our
acquisitions results in our recording expenses in our GAAP financial statements
that were already expensed by the acquired company before the acquisition and for
which we have not expended cash. Accordingly, we analyze the performance of our
operations in each period without regard to such expenses.
(2) Stock-Based Compensation Expense and Related Employer-Paid Payroll Taxes. We
provide non-GAAP information which excludes expenses for stock-based compensation
and related employer-paid payroll taxes. We believe the exclusion of these items
allows for financial results that are more indicative of our continuing
operations. We believe that the exclusion of stock-based compensation expense
provides for a better comparison of our operating results to prior periods and to
our peer companies as the calculations of stock-based compensation vary from
period to period and company to company due to different valuation methodologies,
subjective assumptions and the variety of award types. Employer-paid payroll
taxes on stock- based compensation is dependent on our stock price and the timing
of the taxable events related to the equity awards, over which our management has
little control, and does not correlate to the core operation of our business.
Because of these unique characteristics of stock-based compensation and the
related employer-paid payroll taxes, management excludes these expenses when
analyzing the organization's business performance.
(3) Acquisition Related Adjustments. We exclude certain expense items resulting
from acquisitions including the following, when applicable: (i) amortization of
purchased intangible assets associated with our acquisitions (see Note 1 for
further discussion); (ii) legal, accounting and advisory fees to the extent
associated with acquisitions; (iii) changes in fair value of contingent
consideration; (iv) costs related to integrating the acquired businesses; and (v)
restructuring costs, including adjustments related to changes in estimates,
related to acquisitions. We consider these adjustments, to some extent, to be
unpredictable and dependent on a significant number of factors that are outside
of our control. Furthermore, acquisitions result in non-continuing operating
expenses, which would not otherwise have been incurred by us in the normal course
of our organic business operations, with respect to each acquisition. We believe
that providing non-GAAP information for acquisition related expense items in
addition to the corresponding GAAP information allows the users of our financial
statements to better review and understand the historic and current results of
our continuing operations, and also facilitates comparisons to our historical
results and results of less acquisitive peer companies, both with and without
such adjustments.
(4) Income Tax Effect of Non-GAAP Exclusions. We believe providing financial
information with and without the income tax effect of excluding items related to
our non-GAAP financial measures provide our management and users of the financial
statements with better clarity regarding the ongoing performance and future
liquidity of our business.
(5) Non-GAAP Diluted Earnings Per Share Item. We provide non-GAAP diluted
earnings per share. The non-GAAP diluted earnings per share amount was calculated
based on our non-GAAP net income and the weighted-average number of shares
outstanding during the reporting period.
SolarWinds, Inc.
Reconciliation of Free Cash Flow to GAAP Cash Flows From Operating
Activities
(In thousands)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
------------------------------------
2012201120122011
--------------------------------
Reconciliation of free cash flow to
GAAP cash flows from operating
activities:
GAAP cash flows from operating
activities$ 34,096$ 23,637$ 62,435$ 42,503
Excess tax benefit from stock-
based compensation1,8758745,1844,439
Purchases of property and
equipment(789)(465)(1,560)(1,063)
--------------------------------
Free cash flow (1)$ 35,182$ 24,046$ 66,059$ 45,879
================================
(1) Free Cash Flow: We define free cash flow as cash flows from operating
activities plus the excess tax benefit from stock-based compensation and less the
purchases of property and equipment. We believe free cash flow is an important
liquidity measure that reflects the cash generated by the business after the
purchase of property and equipment that can then be used for, among other things,
strategic acquisitions and investments in the business, stock repurchases and
funding ongoing operations.
SolarWinds, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months EndedSix Months Ended
June 30,June 30,
------------------------------------
2012201120122011
--------------------------------
Cash flows from operating activities
Net income$ 19,427$ 13,551$ 36,558$ 25,261
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization4,3352,1268,6313,958
Provision for doubtful accounts(33)79768
Stock-based compensation expense3,6712,7817,5365,450
Deferred taxes(1,160)765(1,655)293
Excess tax benefit from stock-
based compensation(1,875)(874)(5,184)(4,439)
Other non-cash expenses282103664213
Changes in operating assets and
liabilities, net of assets
acquired and liabilities assumed
in business combinations:
Accounts receivable(1,236)(1,866)(2,050)(2,154)
Income taxes receivable(14)(119)36(109)
Prepaid and other current assets(656)(1,672)(583)(252)
Accounts payable(95)741267463
Accrued liabilities1,8511,101457(1,784)
Income taxes payable5,0434,3798,2599,800
Deferred revenue and other
liabilities4,5562,5429,4925,735
--------------------------------
Net cash provided by operating
activities34,09623,63762,43542,503
Cash flows from investing activities
Purchases of investments(30,136)-(42,084)-
Maturities of investments9,460-19,000-
Purchases of property and
equipment(789)(465)(1,560)(1,063)
Purchases of intangible assets and
other(761)(184)(902)(292)
Acquisition of businesses, net of
cash acquired(9,850)-(20,884)(23,000)
Earnout payments for acquisitions--(3,203)(3,743)
--------------------------------
Net cash used in investing
activities(32,076)(649)(49,633)(28,098)
Cash flows from financing activities
Repurchase of common stock-(2)(1,334)(307)
Exercise of stock options2,4271,8165,6837,009
Excess tax benefit from stock-
based compensation1,8758745,1844,439
--------------------------------
Net cash provided by financing
activities4,3022,6889,53311,141
Effect of exchange rate changes on
cash and cash equivalents(1,650)520(1,034)1,964
--------------------------------
Net increase in cash and cash
equivalents4,67226,19621,30127,510
Cash and cash equivalents
Beginning of period139,336143,317122,707142,003
--------------------------------
End of period$144,008$169,513$144,008$169,513
================================
Supplemental disclosure of cash flow
information
Cash paid for income taxes$3,586$376$7,398$464
================================
Noncash investing transactions
Accrued earnout$-$-$951$3,938
================================
CONTACTS:
Investors:
Dave Hafner
Phone: 512.682.9867
ir@solarwinds.com
Media:
Tiffany Nels
Phone: 512.682.9545
pr@solarwinds.com |
