Acacia Communications Reports Third Quarter 2018 Results
“I am pleased with our strong third quarter results, which exceeded the high end of our guidance on revenue, non-GAAP net income and non-GAAP diluted earnings per share and included solid quarterly profitability,” said Raj Shanmugaraj, President and Chief Executive Officer of
“In the third quarter of 2018, increased demand for our newer products, along with a favorable shift in product mix, contributed to an increase in non-GAAP gross margins of 300 basis points relative to the prior year period,” said
Results for the Third Quarter of 2018
- Revenue of
$94.8 million , decreased 10% year-over-year - GAAP gross margin of 47.3%; non-GAAP gross margin* of 46.7%
- GAAP income from operations of
$8.0 million ; non-GAAP income from operations* of$15.0 million - GAAP net income of
$8.2 million ; non-GAAP net income* of$17.6 million - EBITDA* of
$11.4 million ; adjusted EBITDA* of$18.5 million - GAAP diluted EPS of
$0.19 ; non-GAAP diluted EPS* of$0.42
Outlook for the Fourth Quarter of 2018
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially, as a result of, among other things, the important factors discussed at the end of this press release.
Acacia Communications’ guidance for its fourth quarter ending December 31, 2018 is:
Quarter Ending December 31, 2018 | ||||||||
Revenue (millions) | $98.0 | to | $106.0 | |||||
Non-GAAP Net Income* (millions) | $12.8 | to | $16.6 | |||||
Non-GAAP Diluted EPS* | $0.30 | to | $0.40 |
*Non-GAAP gross margin, non-GAAP income from operations, non-GAAP net income, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA and non-GAAP diluted earnings per share (EPS) are non-GAAP financial measures that are not prepared in accordance with generally accepted accounting principles (GAAP). Please refer below to Use of Non-GAAP Financial Information for descriptions of these non-GAAP financial measures and to the Reconciliation of GAAP Measures to Non-GAAP Measures, attached as Schedule D, for reconciliations of the most directly comparable GAAP financial measures to these non-GAAP financial measures.
Acacia Communications has not reconciled the above fourth quarter 2018 guidance for GAAP net income and GAAP diluted EPS to non-GAAP net income and non-GAAP diluted EPS, respectively, because the expected tax benefits derived from any employee equity awards during the fourth quarter of 2018 cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort.
Conference Call
Use of Non-GAAP Financial Information
This press release includes non-GAAP financial measures that are not prepared in accordance with, nor an alternative to, GAAP. In addition, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
Schedule D of this press release provides reconciliations of Acacia Communications’ most comparable GAAP financial measures to non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expenses, non-GAAP sales, general and administrative expenses, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP effective tax rate, EBITDA, adjusted EBITDA and non-GAAP diluted earnings (loss) per share.
Acacia Communications’ non-GAAP financial measures reflect adjustments based on the metrics described below, as well as the related income tax effects. The income tax effect of these non-GAAP adjustments is determined by recalculating income tax expense excluding these adjustments.
Non-GAAP gross profit and gross margin. Acacia Communications defines non-GAAP gross profit as gross profit as reported on its consolidated statements of operation, excluding the impact of stock-based compensation, which is a non-cash charge, warranty and other charges arising from a manufacturing process quality issue and
Non-GAAP research and development expenses. Acacia Communications defines non-GAAP research and development expenses as research and development expenses as reported on the Company’s consolidated statements of operation, excluding the impact of stock-based compensation. Acacia Communications has presented non-GAAP research and development expenses because the Company believes that the exclusion of stock-based compensation facilitates comparisons of its results of operations to other companies in its industry.
Non-GAAP sales, general and administrative expenses. Acacia Communications defines non-GAAP sales, general and administrative expenses as sales, general and administrative expenses as reported on the Company’s consolidated statements of operation, excluding the impact of stock-based compensation and certain litigation related costs and settlement reserves. Acacia Communications has presented non-GAAP sales, general and administrative expenses because the Company believes that the exclusion of stock-based compensation and certain litigation related costs and settlement reserves facilitates comparisons of its results of operations to other companies in its industry.
Non-GAAP operating expenses. Acacia Communications defines non-GAAP operating expenses as operating expenses as reported on the Company’s consolidated statements of operation, excluding the impact of stock-based compensation and certain litigation related costs and settlement reserves. Acacia Communications has presented non-GAAP operating expenses because the Company believes that the exclusion of stock-based compensation and certain litigation related costs and settlement reserves facilitates comparisons of its results of operations to other companies in its industry.
Non-GAAP income (loss) from operations. Acacia Communications defines non-GAAP income (loss) from operations as income (loss) from operations as reported on the Company’s consolidated statements of operation, excluding the impact of stock-based compensation, warranty and other charges arising from a manufacturing process quality issue,
Non-GAAP net income (loss), non-GAAP effective tax rate and non-GAAP diluted earnings (loss) per share. Acacia Communications defines non-GAAP net income (loss) as net income (loss) as reported on the Company’s consolidated statements of operation, excluding the impact of stock-based compensation which is a non-cash charge, as well as warranty and other charges arising from a manufacturing process quality issue,
In order to calculate non-GAAP diluted earnings (loss) per share, Acacia Communications uses a non-GAAP weighted-average share count which will include the impact of dilutive stock-based awards for periods in which there was a GAAP net loss resulting in GAAP diluted net loss per share, but a non-GAAP net income.
Acacia Communications has presented non-GAAP net income (loss), non-GAAP effective tax rate and non-GAAP diluted earnings (loss) per share because the Company believes that the exclusion of the items discussed above facilitates comparisons of its results of operations to other companies in its industry and more accurately reflects the underlying performance of our continuing business operations.
EBITDA and Adjusted EBITDA. Acacia Communications defines EBITDA as net income (loss) as reported on the Company’s consolidated statements of operation before depreciation, interest income, net, and its provision (benefit) for income taxes. Acacia Communications defines adjusted EBITDA as EBITDA excluding the impact of stock-based compensation, warranty and other charges arising from a manufacturing process quality issue,
Acacia Communications uses these non-GAAP financial measures to evaluate its operating performance and trends, and make planning decisions. Acacia Communications believes that each of these non-GAAP financial measures helps identify underlying trends in its business that could otherwise be masked by the effect of the items that the Company excludes. Accordingly, Acacia Communications believes that these financial measures provide useful information to investors and others in understanding and evaluating its operating results, enhancing the overall understanding of the Company’s past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in its financial and operational decision-making.
Acacia Communications’ non-GAAP financial measures are not prepared in accordance with GAAP, and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures rather than gross profit, gross margin, research and development expenses, sales, general and administrative expenses, operating expenses, income (loss) from operations, net income (loss), effective tax rate or diluted earnings (loss) per share, which are the most directly comparable GAAP measures. Some of these limitations are:
Acacia Communications excludes stock-based compensation expense from each of its non-GAAP financial measures, although it has recently been, and will continue to be for the foreseeable future, a significant recurring expense for its business and an important part of the Company’s compensation strategy;Acacia Communications excludes the tax benefits generated from the exercise of non-qualified stock options, the disqualifying disposition of incentive stock options and ESPP shares, and the vesting of restricted stock units, including any excess tax benefits and shortfalls recognized by the Company in the year of the taxable transaction, in calculating its non-GAAP effective tax rate, non-GAAP net income (loss), and non-GAAP diluted earnings (loss) per share. The Company believes that excluding these tax benefits enables investors to see the full effect that excluding stock-based compensation expense had on the operating results. These benefits are tied to the exercise or vesting of underlying employee equity awards and the price of our common stock at the time of exercise or vesting, which factors may vary from period to period independent of the operating performance of the Company’s business. Similar to stock-based compensation expense, the Company believes that excluding these tax benefits provides investors and management with greater visibility to the underlying performance of its business operations and facilitates comparison with other periods as well as the results of other companies in its industry;Acacia Communications excludes warranty and other charges arising from a manufacturing process quality issue from its non-GAAP gross profit, non-GAAP gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP effective tax rate, non-GAAP diluted earnings (loss) per share and adjusted EBITDA measures, as management does not believe the charges are reflective of the Company’s underlying operating performance;Acacia Communications excludesZTE -related inventory write-offs and subsequent adjustments from its non-GAAP gross profit, non-GAAP gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP effective tax rate, non-GAAP diluted earnings (loss) per share and adjusted EBITDA measures, as management believes the activity is not related to the Company’s normal course of business and is not reflective of the Company’s underlying operating performance;Acacia Communications excludes certain litigation related costs and settlement reserves from its non-GAAP sales, general and administrative expenses, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP effective tax rate, non-GAAP diluted earnings (loss) per share and adjusted EBITDA measures, if management believes the activity is not related to the Company’s normal course of business and is not reflective of the Company’s underlying operating performance. These expenses may continue in the future;- Non-GAAP net income (loss), non-GAAP effective tax rate and non-GAAP diluted earnings (loss) per share do not reflect the impact of the Act in the fourth quarter of 2017, part of which is federal taxes incurred on the repatriation of accumulated foreign earnings which will be paid over an eight-year period;
- EBITDA and adjusted EBITDA exclude depreciation expense and, although this is a non-cash expense, the assets being depreciated may have to be replaced in the future;
- EBITDA and adjusted EBITDA do not reflect interest income, which increases cash available to the Company, as this income is not generated by the Company’s core operations;
- EBITDA and adjusted EBITDA do not reflect the provision (benefit) for income tax which may impact cash available to the Company; and
- the expenses and other items that the Company excludes in its calculation of adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from adjusted EBITDA when they report their operating results.
Because of these limitations, non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with GAAP.
Acacia Communications’ use of non-GAAP financial measures, and the underlying methodology when excluding certain items, is not necessarily an indication of the results of operations that may be expected in the future, or that
Investors should consider Acacia Communications’ non-GAAP financial measures in conjunction with the corresponding GAAP financial measures.
About
Acacia Communications develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform communications networks through improvements in performance, capacity and cost. By leveraging silicon technology to build optical interconnects, a process
Forward Looking Statements
This press release includes statements concerning Acacia Communications and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions are intended to identify forward-looking statements.
SCHEDULE A ACACIA COMMUNICATIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
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September 30, 2018 | December 31, 2017 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 70,361 | $ | 67,495 | ||||||||||||||||
Marketable securities - short-term | 252,747 | 211,933 | ||||||||||||||||||
Accounts receivable | 81,465 | 86,602 | ||||||||||||||||||
Inventory | 34,699 | 62,232 | ||||||||||||||||||
Prepaid expenses and other current assets | 10,202 | 18,985 | ||||||||||||||||||
Total current assets | 449,474 | 447,247 | ||||||||||||||||||
Marketable securities - long-term | 68,943 | 85,182 | ||||||||||||||||||
Property and equipment, net | 28,314 | 28,175 | ||||||||||||||||||
Deferred tax asset | 50,632 | 41,901 | ||||||||||||||||||
Other assets | 8,015 | 8,745 | ||||||||||||||||||
Total assets | $ | 605,378 | $ | 611,250 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 32,728 | $ | 47,819 | ||||||||||||||||
Accrued liabilities | 34,845 | 37,234 | ||||||||||||||||||
Deferred revenue | 2,694 | 573 | ||||||||||||||||||
Total current liabilities | 70,267 | 85,626 | ||||||||||||||||||
Income taxes payable | 19,205 | 21,034 | ||||||||||||||||||
Other long-term liabilities | 5,378 | 2,540 | ||||||||||||||||||
Total liabilities | 94,850 | 109,200 | ||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 4 | 4 | ||||||||||||||||||
Treasury stock | (12,699 | ) | — | |||||||||||||||||
Additional paid-in capital | 350,055 | 324,944 | ||||||||||||||||||
Accumulated other comprehensive loss | (284 | ) | (320 | ) | ||||||||||||||||
Retained earnings | 173,452 | 177,422 | ||||||||||||||||||
Total stockholders’ equity | 510,528 | 502,050 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 605,378 | $ | 611,250 |
SCHEDULE B ACACIA COMMUNICATIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) |
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Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 94,814 | $ | 104,998 | $ | 232,758 | $ | 298,563 | ||||||||||||||||||||||||||||||||||||||
Cost of revenue | 49,981 | 58,856 | 138,649 | 170,739 | ||||||||||||||||||||||||||||||||||||||||||
Gross profit | 44,833 | 46,142 | 94,109 | 127,824 | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||
Research and development | 24,696 | 27,135 | 73,481 | 67,597 | ||||||||||||||||||||||||||||||||||||||||||
Sales, general and administrative | 12,134 | 10,105 | 39,406 | 28,164 | ||||||||||||||||||||||||||||||||||||||||||
Gain on disposal of property and equipment | — | — | — | (47 | ) | |||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 36,830 | 37,240 | 112,887 | 95,714 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | 8,003 | 8,902 | (18,778 | ) | 32,110 | |||||||||||||||||||||||||||||||||||||||||
Other income, net: | ||||||||||||||||||||||||||||||||||||||||||||||
Interest income, net | 2,074 | 990 | 4,919 | 2,262 | ||||||||||||||||||||||||||||||||||||||||||
Other expense, net | (63 | ) | (21 | ) | (325 | ) | (60 | ) | ||||||||||||||||||||||||||||||||||||||
Total other income, net | 2,011 | 969 | 4,594 | 2,202 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before provision (benefit) for income taxes | 10,014 | 9,871 | (14,184 | ) | 34,312 | |||||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 1,863 | (8,628 | ) | (10,012 | ) | (24,560 | ) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 8,151 | $ | 18,499 | $ | (4,172 | ) | $ | 58,872 | |||||||||||||||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.20 | $ | 0.47 | $ | (0.10 | ) | $ | 1.52 | |||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.19 | $ | 0.44 | $ | (0.10 | ) | $ | 1.41 | |||||||||||||||||||||||||||||||||||||
Weighted-average shares used to compute earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||||||||
Basic | 40,495 | 39,259 | 40,217 | 38,754 | ||||||||||||||||||||||||||||||||||||||||||
Diluted | 42,060 | 41,757 | 40,217 | 41,660 |
SCHEDULE C ACACIA COMMUNICATIONS, INC. CONSENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
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Nine Months Ended September 30, | ||||||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||||||
Net (loss) income | $ | (4,172 | ) | $ | 58,872 | |||||||||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation | 10,132 | 9,101 | ||||||||||||||||||||||
Gain on disposal of property and equipment | — | (47 | ) | |||||||||||||||||||||
Stock-based compensation | 21,865 | 17,162 | ||||||||||||||||||||||
Deferred income taxes | (8,781 | ) | (23,569 | ) | ||||||||||||||||||||
Other non-cash (benefits) charges | (356 | ) | 259 | |||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable | 5,137 | 12,505 | ||||||||||||||||||||||
Inventory | 27,533 | (18,302 | ) | |||||||||||||||||||||
Prepaid expenses and other current assets | 8,615 | (5,156 | ) | |||||||||||||||||||||
Other assets | 737 | (4,658 | ) | |||||||||||||||||||||
Accounts payable | (14,075 | ) | (9,878 | ) | ||||||||||||||||||||
Accrued liabilities | (2,463 | ) | 6,258 | |||||||||||||||||||||
Deferred revenue | 5,710 | (92 | ) | |||||||||||||||||||||
Income taxes payable | (1,829 | ) | — | |||||||||||||||||||||
Other long-term liabilities | (376 | ) | 992 | |||||||||||||||||||||
Net cash provided by operating activities | 47,677 | 43,447 | ||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||||||
Purchases of property and equipment | (11,287 | ) | (10,031 | ) | ||||||||||||||||||||
Purchases of marketable securities | (249,727 | ) | (306,327 | ) | ||||||||||||||||||||
Sales and maturities of marketable securities | 225,589 | 177,353 | ||||||||||||||||||||||
Deposits | (7 | ) | (52 | ) | ||||||||||||||||||||
Net cash used in investing activities | (35,432 | ) | (139,057 | ) | ||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||||||
Treasury stock acquired | (12,699 | ) | — | |||||||||||||||||||||
Payment of public offering costs | — | (201 | ) | |||||||||||||||||||||
Proceeds from the issuance of common stock under stock-based compensation plans | 3,320 | 3,540 | ||||||||||||||||||||||
Net cash (used in) provided by financing activities | (9,379 | ) | 3,339 | |||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,866 | (92,271 | ) | |||||||||||||||||||||
Cash, cash equivalents and restricted cash—Beginning of period | 67,495 | 208,032 | ||||||||||||||||||||||
Cash, cash equivalents and restricted cash—End of period | $ | 70,361 | $ | 115,761 | ||||||||||||||||||||
Supplemental cash flow disclosures: | ||||||||||||||||||||||||
(Refunds received) cash paid for income taxes, net | $ | (6,874 | ) | $ | 840 |
SCHEDULE D ACACIA COMMUNICATIONS, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except for per share data) (unaudited) |
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Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Non-GAAP Gross Profit and Non-GAAP Gross Margin | ||||||||||||||||||||||||||||||||||||||
GAAP gross profit | $ | 44,833 | $ | 25,205 | $ | 46,142 | ||||||||||||||||||||||||||||||||
Stock-based compensation - cost of revenue | 508 | 572 | 518 | |||||||||||||||||||||||||||||||||||
Warranty and other charges due to manufacturing process quality issue | 218 | 405 | (739 | ) | ||||||||||||||||||||||||||||||||||
Inventory write-offs | (1,294 | ) | (1,259 | ) | — | |||||||||||||||||||||||||||||||||
Non-GAAP gross profit | $ | 44,265 | $ | 24,923 | $ | 45,921 | ||||||||||||||||||||||||||||||||
GAAP gross margin | 47.3 | % | 38.8 | % | 43.9 | % | ||||||||||||||||||||||||||||||||
Non-GAAP gross margin | 46.7 | % | 38.3 | % | 43.7 | % | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Non-GAAP R&D Expenses | ||||||||||||||||||||||||||||||||||||||
GAAP research and development expenses | $ | 24,696 | $ | 24,340 | $ | 27,135 | ||||||||||||||||||||||||||||||||
Stock-based compensation | 4,654 | 4,467 | 3,743 | |||||||||||||||||||||||||||||||||||
Non-GAAP research and development expenses | $ | 20,042 | $ | 19,873 | $ | 23,392 | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Non-GAAP SG&A Expenses | ||||||||||||||||||||||||||||||||||||||
GAAP sales, general and administrative expenses | $ | 12,134 | $ | 12,984 | $ | 10,105 | ||||||||||||||||||||||||||||||||
Stock-based compensation | 2,577 | 2,549 | 2,159 | |||||||||||||||||||||||||||||||||||
Litigation related costs and settlement reserves | 369 | 772 | — | |||||||||||||||||||||||||||||||||||
Non-GAAP sales, general and administrative expenses | $ | 9,188 | $ | 9,663 | $ | 7,946 | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Non-GAAP Operating Expenses | ||||||||||||||||||||||||||||||||||||||
GAAP operating expenses | $ | 36,830 | $ | 37,324 | $ | 37,240 | ||||||||||||||||||||||||||||||||
Stock-based compensation | 7,231 | 7,016 | 5,902 | |||||||||||||||||||||||||||||||||||
Litigation related costs and settlement reserves | 369 | 772 | — | |||||||||||||||||||||||||||||||||||
Non-GAAP operating expenses | $ | 29,230 | $ | 29,536 | $ | 31,338 | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Non-GAAP Income (Loss) from Operations | ||||||||||||||||||||||||||||||||||||||
GAAP income (loss) from operations | $ | 8,003 | $ | (12,119 | ) | $ | 8,902 | |||||||||||||||||||||||||||||||
Stock-based compensation | 7,739 | 7,588 | 6,420 | |||||||||||||||||||||||||||||||||||
Warranty and other charges due to manufacturing process quality issue | 218 | 405 | (739 | ) | ||||||||||||||||||||||||||||||||||
Litigation related costs and settlement reserves | 369 | 772 | — | |||||||||||||||||||||||||||||||||||
Inventory write-offs | (1,294 | ) | (1,259 | ) | — | |||||||||||||||||||||||||||||||||
Non-GAAP income (loss) from operations | $ | 15,035 | $ | (4,613 | ) | $ | 14,583 |
SCHEDULE D (Cont.) ACACIA COMMUNICATIONS, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except for per share data) (unaudited) |
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Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Non-GAAP Net Income (Loss) | ||||||||||||||||||||||||||||||||||||||
GAAP net income (loss) | $ | 8,151 | $ | (3,245 | ) | $ | 18,499 | |||||||||||||||||||||||||||||||
Stock-based compensation | 7,739 | 7,588 | 6,420 | |||||||||||||||||||||||||||||||||||
Warranty and other charges due to manufacturing process quality issue | 218 | 405 | (739 | ) | ||||||||||||||||||||||||||||||||||
Litigation related costs and settlement reserves | 369 | 772 | — | |||||||||||||||||||||||||||||||||||
Inventory write-offs | (1,294 | ) | (1,259 | ) | — | |||||||||||||||||||||||||||||||||
Tax effect of excluded items | 2,448 | (7,447 | ) | (5,062 | ) | |||||||||||||||||||||||||||||||||
Non-GAAP net income (loss) | $ | 17,631 | $ | (3,186 | ) | $ | 19,118 | |||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Non-GAAP Effective Tax Rate | ||||||||||||||||||||||||||||||||||||||
GAAP effective tax rate | 18.6 | % | 70.0 | % | (87.4 | )% | ||||||||||||||||||||||||||||||||
Tax effect of excluded items | (22.0 | )% | (66.2 | )% | 64.5 | % | ||||||||||||||||||||||||||||||||
Non-GAAP effective tax rate | (3.4 | )% | 3.8 | % | (22.9 | )% | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization and Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||
GAAP net income (loss) | $ | 8,151 | $ | (3,245 | ) | $ | 18,499 | |||||||||||||||||||||||||||||||
Depreciation | 3,498 | 3,368 | 3,260 | |||||||||||||||||||||||||||||||||||
Interest income, net | (2,074 | ) | (1,491 | ) | (990 | ) | ||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 1,863 | (7,574 | ) | (8,628 | ) | |||||||||||||||||||||||||||||||||
Earnings (loss) before interest, taxes, depreciation and amortization | 11,438 | (8,942 | ) | 12,141 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 7,739 | 7,588 | 6,420 | |||||||||||||||||||||||||||||||||||
Warranty and other charges due to manufacturing process quality issue | 218 | 405 | (739 | ) | ||||||||||||||||||||||||||||||||||
Litigation related costs and settlement reserves | 369 | 772 | — | |||||||||||||||||||||||||||||||||||
Inventory write-offs | (1,294 | ) | (1,259 | ) | — | |||||||||||||||||||||||||||||||||
Adjusted earnings (loss) before interest, taxes, depreciation and amortization | $ | 18,470 | $ | (1,436 | ) | $ | 17,822 |
SCHEDULE D (Cont.) ACACIA COMMUNICATIONS, INC. RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except for per share data) (unaudited) |
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Three Months Ended | ||||||||||||||||||||||||||||||||||||||
Q3 2018 | Q2 2018 | Q3 2017 | ||||||||||||||||||||||||||||||||||||
Non-GAAP Diluted Earnings (Loss) per Share | ||||||||||||||||||||||||||||||||||||||
GAAP Diluted net income (loss) per share | $ | 0.19 | $ | (0.08 | ) | $ | 0.44 | |||||||||||||||||||||||||||||||
Stock-based compensation | 0.18 | 0.19 | 0.16 | |||||||||||||||||||||||||||||||||||
Warranty and other charges due to manufacturing process quality issue | 0.01 | 0.01 | (0.02 | ) | ||||||||||||||||||||||||||||||||||
Litigation related costs and settlement reserves | 0.01 | 0.02 | — | |||||||||||||||||||||||||||||||||||
Inventory write-offs | (0.03 | ) | (0.03 | ) | — | |||||||||||||||||||||||||||||||||
Tax effect of excluded items | 0.06 | (0.19 | ) | (0.12 | ) | |||||||||||||||||||||||||||||||||
Non-GAAP diluted earnings (loss) per share | $ | 0.42 | $ | (0.08 | ) | $ | 0.46 | |||||||||||||||||||||||||||||||
Weighted-average shares used to compute GAAP and non-GAAP diluted net income (loss) per share | 42,060 | 40,307 | 41,757 |
SOURCE
For further information:
Investor Relations Contact:
Office: (212) 871-3927
Email: IR@acacia-inc.com
Office: (212) 331-8417
Email: IR@acacia-inc.com
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Office: (781) 966-4143
Email: PR@acacia-inc.com
Source: Acacia Communications, Inc.