sgh-8k_20190328.htm

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 28, 2019

 

SMART GLOBAL HOLDINGS, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Cayman Islands

001-38102

98-1013909

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

c/o Maples Corporate Services Limited

P.O. Box 309

Ugland House

Grand Cayman

 

KY1-1104

Cayman Islands

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (510) 623-1231

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

Item 2.02 Results of Operations and Financial Condition.

On March 28, 2019, SMART Global Holdings, Inc. (the “Company”) issued a press release and will hold a conference call announcing its financial results for the second quarter of fiscal 2019. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The Company refers to non-GAAP financial information in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.

This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.  

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

 

Exhibit Number

 

Description

 

 

 

99.1

 

Press release issued on March 28, 2019

 

 

1


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

SMART GLOBAL HOLDINGS, INC.

 

 

 

By:

 /s/ JACK PACHECO

 

 Name:

 Jack Pacheco

 

 Title: 

 Executive Vice President and Chief Financial Officer

 

 

(Principal Financial and Accounting Officer)

 

 

 

Date: March 28, 2019

 

 

2

sgh-ex991_6.htm

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

 

SMART Global Holdings Reports

Second Quarter Fiscal 2019 Financial Results

 

NEWARK, CA – March 28, 2019 SMART Global Holdings, Inc. (“SMART”) (NASDAQ: SGH), parent company of SMART Modular Technologies, Inc., today reported financial results for the second quarter of fiscal 2019 ended March 1, 2019.

 

Second Quarter Fiscal 2019 Highlights:

 

Net sales of $304.1 million

 

GAAP operating income of $22.5 million

 

GAAP net income of $12.8 million

 

Adjusted EBITDA of $33.8 million

 

GAAP diluted earnings per share (EPS) of $0.55

 

Non-GAAP diluted EPS of $0.77

 

“SMART continues to execute well across all of our lines of business in a challenging environment. In our second fiscal quarter, our Specialty Products business and our Specialty Compute and Storage business performed well.  Our Brazil business where we supply commodity memory products to high volume requirements in smartphones and PCs, performed in line with expectations in a worsening pricing environment for such products,” said Ajay Shah, Chairman and Chief Executive Officer.  

 

“We have made good progress towards realizing synergies from our acquisition of Penguin Computing and remain focused on disciplined execution to drive our financial performance,” concluded Mr. Shah.

 

Quarterly Financial Results

GAAP (1)

 

 

Non-GAAP (2)

 

(In millions, except per share amounts)

Q2 FY19

 

Q1 FY19

 

Q2 FY18

 

 

Q2 FY19

 

Q1 FY19

 

Q2 FY18

 

Net sales

$

304.1

 

$

393.9

 

$

314.0

 

 

$

304.1

 

$

393.9

 

$

314.0

 

Gross profit

$

57.1

 

$

85.1

 

$

73.0

 

 

$

57.8

 

$

85.6

 

$

73.2

 

Operating income

$

22.5

 

$

47.8

 

$

45.1

 

 

$

27.7

 

$

54.4

 

$

48.5

 

Net income

$

12.8

 

$

31.0

 

$

36.8

 

 

$

18.0

 

$

40.6

 

$

37.7

 

Diluted earnings per share (EPS)

$

0.55

 

$

1.33

 

$

1.60

 

 

$

0.77

 

$

1.75

 

$

1.64

 

 

(1)

GAAP represents U.S. Generally Accepted Accounting Principles.

(2)

Please refer to the “Non-GAAP Information” section and the "Reconciliation of Non-GAAP Financial Measures" table below for further detail on the non-GAAP financial reporting referenced above and a reconciliation of such measures to our nearest GAAP measures.

 

Business Outlook

The following statements are based upon management's current expectations for the third quarter of fiscal 2019 ending May 31, 2019. These statements are forward-looking, and actual results may differ materially. SMART undertakes no obligation to update these statements.

 

Net Sales

$260 to $270 million

Gross Margin - GAAP / Non-GAAP

17% to 19%

Diluted EPS - GAAP

$0.13 to $0.17

 

 

Share-based compensation per share

$0.17

Intangible amortization per share

$0.04

 

 

Diluted EPS - Non-GAAP

$0.34 to $0.38

 

 

Expected diluted share count

23.5 million

 


Conference Call Details

SMART will host a conference call today for analysts and investors at 1:30 p.m. Pacific time, 4:30 p.m. Eastern time. Dial-in US toll free +1-866-487-6452 using access code 8966306.

 

A replay of the conference call will be available for one week following today’s call through the Events section of the SMART website at www.smartgh.com or by calling US toll free +1-855-859-2056; Passcode: 8966306.

Forward-Looking Statements

This release contains, and statements made during the above-referenced conference call will contain "forward-looking statements" including among other things, statements regarding future events and the future financial performance of SMART (including the business outlook for the next fiscal quarter) and statements regarding growth drivers in SMART’s industries and markets. These statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including but not limited to: business and economic conditions and growth trends in the technology industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; changes in seasonal impacts on our results; changes in currency exchange rates; overall information technology spending; appropriations for government spending; the success of our strategic initiatives including additional investments in new products, additional capacity and acquisitions; the DRAM market and the temporary and volatile nature of pricing trends; deterioration in customer relationships; production or manufacturing difficulties; competitive factors; technological changes; difficulties with or delays in the introduction of new products;  slowing or contraction of growth in the memory market in Brazil; reduction in or termination of local content requirements in Brazil;  changes to applicable tax regimes or rates; prices for the end products of our customers; fluctuations in material costs and availability; strikes or labor disputes; deterioration in or loss of relations with any of our limited number of key vendors;  changes in the availability of supply of materials, components or memory products; the inability of Penguin Computing to obtain and retain security clearances to expand its government business; and other factors and risks detailed in SMART’s filings with the Securities and Exchange Commission. Such factors and risks as outlined above and in such filings may not constitute all factors and risks that could cause actual results of SMART to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. SMART and its subsidiaries operate in a continually changing business environment and new factors emerge from time to time. SMART cannot predict such factors, nor can it assess the impact, if any, from such factors on SMART or its subsidiaries’ results. Accordingly, investors are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements should not be relied upon as a prediction of actual results. These forward-looking statements are made as of today, and SMART does not intend, and has no obligation, to update or revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release, except as required by law.

 

Non-GAAP Information

Certain non-GAAP financial measures are contained in this press release or will be discussed on our conference call, including non-GAAP gross profit, non-GAAP operating income, Adjusted EBITDA, non-GAAP net income, non-GAAP net income per diluted share, and non-GAAP diluted EPS. We define Adjusted EBITDA as GAAP net income plus net interest expense, income tax expense, depreciation and amortization expense, share-based compensation expense, acquisition-related expenses and other infrequent or unusual items. Adjusted EBITDA is not a measure of financial performance calculated in accordance with U.S. GAAP and should be viewed as a supplement to, not a substitute for, our results of operations presented on the basis of U.S. GAAP. Adjusted EBITDA also does not purport to represent cash flow provided by, or used in, operating activities in accordance with U.S. GAAP and should not be used as a measure of liquidity.

 

The non-GAAP financial results presented herein exclude share-based compensation expense, intangible amortization expense, acquisition-related expenses, and other infrequent or unusual items, and with respect to non-GAAP diluted EPS, foreign currency gains (losses). These non-GAAP financial measures are provided to enhance the user's overall understanding of our financial performance. By excluding these charges, as well as any related tax effects, our non-GAAP results provide information to management and investors that is useful in assessing SMART's core operating performance and in evaluating and comparing our results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results, to plan and forecast future periods, and to assess performance of certain executives for compensation purposes. The presentation of this additional information is not meant to be a substitute for the corresponding financial measures prepared in accordance with U.S. GAAP. In addition, similarly titled measures may not be used similarly by other companies and therefore may not be comparable between companies.

 

Investors are encouraged to review the “Reconciliation of Non-GAAP Financial Measures to GAAP Results” and “Reconciliation of GAAP Net Income to Adjusted EBITDA” tables below for more detail on non-GAAP calculations.

 


About SMART Global Holdings

The SMART family of companies are global leaders in specialty memory, storage and hybrid solutions serving the electronics industry with standard and custom products for over 25 years. SMART delivers components, modules and solutions to a broad customer base, including OEMs in computing, networking, communications, storage, mobile and industrial markets. With the addition of Penguin Computing and the creation of a new business unit, SMART Specialty Compute & Storage Solutions (SCSS), SMART has expanded its serviceable markets into areas requiring specialized computing platforms in artificial intelligence and machine learning, advanced modeling and high performance computing. Customers rely on SMART as a strategic supplier with custom designs, product quality, technical support, a global footprint, and the ability to provide locally manufactured products in multiple geographies. See www.smartgh.com, www.smartm.com, www.smarth.com, or www.smartsscs.com for more information.


SMART Global Holdings, Inc.

and Subsidiaries

Consolidated Statements of Income

(In thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 1,

2019

 

 

November 30,

2018

 

 

February 23,

2018

 

 

March 1,

2019

 

 

February 23,

2018

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brazil

 

$

147,111

 

 

$

199,279

 

 

$

208,633

 

 

$

346,390

 

 

$

366,483

 

Specialty Memory

 

 

115,608

 

 

 

139,949

 

 

 

105,332

 

 

 

255,557

 

 

 

212,891

 

Specialty Compute and Storage Solutions

 

 

41,344

 

 

 

54,651

 

 

 

 

 

 

95,995

 

 

 

 

Total net sales

 

 

304,063

 

 

 

393,879

 

 

 

313,965

 

 

 

697,942

 

 

 

579,374

 

Cost of sales (1)(2)

 

 

246,932

 

 

 

308,810

 

 

 

240,948

 

 

 

555,742

 

 

 

448,521

 

Gross profit

 

 

57,131

 

 

 

85,069

 

 

 

73,017

 

 

 

142,200

 

 

 

130,853

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (1) (2)

 

 

11,238

 

 

 

11,816

 

 

 

9,852

 

 

 

23,054

 

 

 

18,402

 

Selling, general and administrative (1) (2)

 

 

23,442

 

 

 

25,454

 

 

 

18,087

 

 

 

48,896

 

 

 

35,905

 

Total operating expenses

 

 

34,680

 

 

 

37,270

 

 

 

27,939

 

 

 

71,950

 

 

 

54,307

 

Income from operations

 

 

22,451

 

 

 

47,799

 

 

 

45,078

 

 

 

70,250

 

 

 

76,546

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(5,273

)

 

 

(5,875

)

 

 

(4,230

)

 

 

(11,148

)

 

 

(8,829

)

Other income (expense):

 

 

252

 

 

 

(3,329

)

 

 

2,548

 

 

 

(3,077

)

 

 

(167

)

Total other expense

 

 

(5,021

)

 

 

(9,204

)

 

 

(1,682

)

 

 

(14,225

)

 

 

(8,996

)

Income before income taxes

 

 

17,430

 

 

 

38,595

 

 

 

43,396

 

 

 

56,025

 

 

 

67,550

 

Provision for income taxes

 

 

4,644

 

 

 

7,619

 

 

 

6,602

 

 

 

12,263

 

 

 

9,751

 

Net income

 

$

12,786

 

 

$

30,976

 

 

$

36,794

 

 

$

43,762

 

 

$

57,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.56

 

 

$

1.37

 

 

$

1.68

 

 

$

1.93

 

 

$

2.65

 

Diluted

 

$

0.55

 

 

$

1.33

 

 

$

1.60

 

 

$

1.88

 

 

$

2.53

 

Shares used in computing per-share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

22,872

 

 

 

22,595

 

 

 

21,915

 

 

 

22,733

 

 

 

21,794

 

Diluted

 

 

23,359

 

 

 

23,257

 

 

 

23,038

 

 

 

23,314

 

 

 

22,877

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes share-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

607

 

 

$

545

 

 

$

227

 

 

$

1,152

 

 

$

445

 

Research and development

 

 

660

 

 

 

634

 

 

 

288

 

 

 

1,294

 

 

$

562

 

Selling, general and administrative

 

 

2,881

 

 

 

2,876

 

 

 

1,182

 

 

 

5,757

 

 

$

2,295

 

Total stock-based compensation expense

 

$

4,148

 

 

$

4,055

 

 

$

1,697

 

 

$

8,203

 

 

$

3,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes amortization of intangible assets expense as

   follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

98

 

 

$

16

 

 

$

 

 

$

114

 

 

$

 

Research and development

 

 

 

 

 

 

 

 

245

 

 

 

 

 

 

490

 

Selling, general and administrative

 

 

961

 

 

 

961

 

 

 

993

 

 

 

1,922

 

 

 

2,016

 

Total amortization expense

 

$

1,059

 

 

$

977

 

 

$

1,238

 

 

$

2,036

 

 

$

2,506

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SMART Global Holdings, Inc.

and Subsidiaries

Reconciliation of Non-GAAP Financial Measures to GAAP Results

(In thousands, except per share data)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 1,

2019

 

 

November 30,

2018

 

 

February 23,

2018

 

 

March 1,

2019

 

 

February 23,

2018

 

Reconciliation of gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

57,131

 

 

$

85,069

 

 

$

73,017

 

 

$

142,200

 

 

$

130,853

 

GAAP gross margin

 

 

18.8

%

 

 

21.6

%

 

 

23.3

%

 

 

20.4

%

 

 

22.6

%

Add: Share-based compensation included in cost of sales

 

 

607

 

 

 

545

 

 

 

227

 

 

 

1,152

 

 

 

445

 

Add: Amortization of intangible assets

 

 

98

 

 

 

16

 

 

 

 

 

 

114

 

 

 

 

Non-GAAP gross profit

 

$

57,836

 

 

$

85,630

 

 

$

73,244

 

 

$

143,466

 

 

$

131,298

 

Non-GAAP gross margin

 

 

19.0

%

 

 

21.7

%

 

 

23.3

%

 

 

20.6

%

 

 

22.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

34,680

 

 

$

37,270

 

 

$

27,939

 

 

$

71,950

 

 

$

54,307

 

Less: Share-based compensation expense included in opex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

660

 

 

 

634

 

 

 

288

 

 

 

1,294

 

 

 

562

 

Selling, general and administrative

 

 

2,881

 

 

 

2,876

 

 

 

1,182

 

 

 

5,757

 

 

 

2,295

 

Total

 

 

3,541

 

 

 

3,510

 

 

 

1,470

 

 

 

7,051

 

 

 

2,857

 

Less: Amortization of intangible assets included in opex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

 

 

 

 

 

 

245

 

 

 

 

 

 

490

 

Selling, general and administrative

 

 

961

 

 

 

961

 

 

 

993

 

 

 

1,922

 

 

 

2,016

 

Total

 

 

961

 

 

 

961

 

 

 

1,238

 

 

 

1,922

 

 

 

2,506

 

Less: S-1 related costs

 

 

 

 

 

 

 

 

513

 

 

 

 

 

 

813

 

Less: Legal fees - term loan (payment holiday)

 

 

 

 

 

126

 

 

 

 

 

 

126

 

 

 

 

Less: Acquisition-related expenses

 

 

 

 

 

1,423

 

 

 

 

 

 

1,423

 

 

 

 

Non-GAAP operating expenses

 

$

30,178

 

 

$

31,250

 

 

$

24,718

 

 

$

61,428

 

 

$

48,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

 

$

22,451

 

 

$

47,799

 

 

$

45,078

 

 

$

70,250

 

 

$

76,546

 

GAAP operating margin

 

 

7.4

%

 

 

12.1

%

 

 

14.4

%

 

 

10.1

%

 

 

13.2

%

Add: Share-based compensation expense

 

 

4,148

 

 

 

4,055

 

 

 

1,697

 

 

 

8,203

 

 

 

3,302

 

Add: Amortization of intangible assets

 

 

1,059

 

 

 

977

 

 

 

1,238

 

 

 

2,036

 

 

 

2,506

 

Add: S-1 related costs

 

 

 

 

 

 

 

 

513

 

 

 

 

 

 

813

 

Add: Legal fees - term loan (payment holiday)

 

 

 

 

 

126

 

 

 

 

 

 

126

 

 

 

 

Add: Acquisition-related expenses

 

 

 

 

 

1,423

 

 

 

 

 

 

1,423

 

 

 

 

Non-GAAP income from operations

 

$

27,658

 

 

$

54,380

 

 

$

48,526

 

 

$

82,038

 

 

$

83,167

 

Non-GAAP operating margin

 

 

9.1

%

 

 

13.8

%

 

 

15.5

%

 

 

11.8

%

 

 

14.4

%

 


SMART Global Holdings, Inc.

and Subsidiaries

Reconciliation of Non-GAAP Financial Measures to GAAP Results (continued)

(In thousands, except per share data)

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 1,

2019

 

 

November 30,

2018

 

 

February 23,

2018

 

 

March 1,

2019

 

 

February 23,

2018

 

Reconciliation of income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income before income taxes

 

$

17,430

 

 

$

38,595

 

 

$

43,396

 

 

$

56,025

 

 

$

67,550

 

Add: Share-based compensation expense

 

 

4,148

 

 

 

4,055

 

 

 

1,697

 

 

 

8,203

 

 

 

3,302

 

Add: Amortization of intangible assets

 

 

1,059

 

 

 

977

 

 

 

1,238

 

 

 

2,036

 

 

 

2,506

 

Add: S-1 related costs

 

 

 

 

 

 

 

 

513

 

 

 

 

 

 

813

 

Add: Legal fees - term loan (payment holiday)

 

 

 

 

 

126

 

 

 

 

 

 

126

 

 

 

 

Add: Acquisition-related expenses

 

 

 

 

 

1,423

 

 

 

 

 

 

1,423

 

 

 

 

Add: Foreign currency (gains)/losses

 

 

(47

)

 

 

3,384

 

 

 

(2,415

)

 

 

3,337

 

 

 

327

 

Non-GAAP income before income taxes

 

$

22,590

 

 

$

48,560

 

 

$

44,429

 

 

$

71,150

 

 

$

74,498

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of provision for income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP provision for income taxes

 

$

4,644

 

 

$

7,619

 

 

$

6,602

 

 

$

12,263

 

 

$

9,751

 

GAAP effective tax rate

 

 

26.6

%

 

 

19.7

%

 

 

15.2

%

 

 

21.9

%

 

 

14.4

%

Tax effect of adjustments to GAAP results

 

 

5

 

 

 

(338

)

 

 

(97

)

 

 

(333

)

 

 

(719

)

Non-GAAP provision for income taxes

 

$

4,639

 

 

$

7,957

 

 

$

6,699

 

 

$

12,596

 

 

$

10,470

 

Non-GAAP effective tax rate

 

 

20.5

%

 

 

16.4

%

 

 

15.1

%

 

 

17.7

%

 

 

14.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of net income and earnings per share (diluted):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

$

12,786

 

 

$

30,976

 

 

$

36,794

 

 

$

43,762

 

 

$

57,799

 

Adjustments to GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

4,148

 

 

 

4,055

 

 

 

1,697

 

 

 

8,203

 

 

 

3,302

 

Amortization of intangible assets

 

 

1,059

 

 

 

977

 

 

 

1,238

 

 

 

2,036

 

 

 

2,506

 

S-1 related costs

 

 

 

 

 

 

 

 

513

 

 

 

 

 

 

813

 

Legal fees - term loan (payment holiday)

 

 

 

 

 

126

 

 

 

 

 

 

126

 

 

 

 

Acquisition-related expenses

 

 

 

 

 

1,423

 

 

 

 

 

 

1,423

 

 

 

 

Foreign currency (gains)/losses

 

 

(47

)

 

 

3,384

 

 

 

(2,415

)

 

 

3,337

 

 

 

327

 

Tax effect of items excluded from non-GAAP results

 

 

5

 

 

 

(338

)

 

 

(97

)

 

 

(333

)

 

 

(719

)

Non-GAAP net income

 

$

17,951

 

 

$

40,603

 

 

$

37,730

 

 

$

58,554

 

 

$

64,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share (diluted)

 

 

23,359

 

 

 

23,257

 

 

 

23,038

 

 

 

23,314

 

 

 

22,877

 

Non-GAAP earnings per share (diluted)

 

$

0.77

 

 

$

1.75

 

 

$

1.64

 

 

$

2.51

 

 

$

2.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings per share (diluted)

 

$

0.55