sgh-8k_20200407.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): April 7, 2020

 

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

(Zip Code)

(Address of Principal Executive Offices)

 

 

 

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))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Ordinary shares, $0.03 par value per share

SGH

The NASDAQ Stock Market LLC

(NASDAQ Global Select Market)

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 April 7, 2020, 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 2020. 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.

 

Exhibit Number

 

Description of Exhibit

 

 

 

99.1

 

Press release issued on April 7, 2020

 

 

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: April 7, 2020

 

 

2

sgh-ex991_6.htm

Exhibit 99.1

Press Release

FOR IMMEDIATE RELEASE

 

SMART Global Holdings Reports Second Quarter Fiscal 2020 Financial Results

 

NEWARK, CA – April 7, 2020 – SMART Global Holdings, Inc. (“SMART” or the “Company”) (NASDAQ: SGH), today reported financial results for the second quarter of fiscal 2020 ended February 28, 2020.

 

Second Quarter Fiscal 2020 Highlights:

 

Net sales of $272.0 million

 

GAAP net income (loss) of ($9.7) million, or ($0.41) per share

 

Non-GAAP net income of $12.8 million, or $0.52 per share

 

Adjusted EBITDA of $22.3 million

 

Increased cash and equivalents to $141.9 million

 

“In the second quarter of fiscal 2020, we generated financial results above the midpoint of our guidance range driven by excellent performance from our team members along with better than expected performance from both our Specialty Memory and Brazil businesses,” commented Ajay Shah, Chairman and CEO.  “Despite the challenges we all face during the COVID-19 crisis, we remain optimistic about the longer-term positioning of our businesses.”

 

“During the quarter we significantly improved our capital structure through the issuance of $250 million of convertible senior notes in a private placement, the majority of the proceeds of which we used to pay down our existing, higher interest rate debt, thereby recapitalizing our balance sheet, lowering our interest expense, eliminating quarterly principal payments and extending the debt maturity,” added Jack Pacheco, COO and CFO.  

 

Quarterly Financial Results

GAAP (1)

 

 

Non-GAAP (2)

 

(In millions, except per share amounts)

Q2 FY20

 

Q1 FY20

 

Q2 FY19

 

 

Q2 FY20

 

Q1 FY20

 

Q2 FY19

 

Net sales

$

272.0

 

$

272.0

 

$

304.1

 

 

$

272.0

 

$

272.0

 

$

304.1

 

Gross profit

$

51.5

 

$

54.3

 

$

57.1

 

 

$

52.9

 

$

55.7

 

$

57.8

 

Operating income

$

8.2

 

$

5.9

 

$

22.5

 

 

$

17.3

 

$

18.2

 

$

27.7

 

Net income

$

(9.7

)

$

0.2

 

$

12.8

 

 

$

12.8

 

$

13.4

 

$

18.0

 

Diluted earnings per share (EPS)

$

(0.41

)

$

0.01

 

$

0.55

 

 

$

0.52

 

$

0.55

 

$

0.77

 

 

(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 second quarter of fiscal 2020 ending February 28, 2020. These statements are forward-looking and actual results may differ materially. SMART undertakes no obligation to update these statements.

 

Net Sales

$270 to $300 million

Gross Margin - GAAP / Non-GAAP

20% to 22%

Diluted EPS - GAAP*

$0.33 ± $0.05

 

 

Share-based compensation per share

$0.20

Intangible amortization per share

$0.15

 

 

Diluted EPS - Non-GAAP*

$0.68 ± $0.05

 

 

Expected diluted share count

24.6 million

        *EPS does not include any potential loss from the mark to market of the capped call

 


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 5089819.

 

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: 5089819.

 

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; disruptions in our operations or in global markets as a result of the outbreak of COVID-19; trade regulations and relations; 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, and non-GAAP net income per diluted share. We define Adjusted EBITDA as GAAP net income (loss) plus net interest expense, income tax expense, depreciation and amortization expense, share-based compensation expense, loss on extinguishment of debt, capped call mark to market (MTM) adjustment, integration expenses, 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, loss on extinguishment of debt, capped call MTM adjustment, convertible debt original issue discount (OID), integration expenses, acquisition-related expenses and other infrequent or unusual expenses, and with respect to non-GAAP diluted EPS a 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, these 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 (Loss) to Adjusted EBITDA” tables below for more detail on non-GAAP calculations.


 

 

About SMART Global Holdings

The SMART lines of business are leading designers and manufacturers of electronic products focused on memory and computing technology areas. The Company specializes in application specific product development and support for customers in enterprise, government and OEM sales channels. Customers rely on SMART as a strategic supplier with top tier customer service, product quality, and technical support with engineering, sales, manufacturing, supply chain and logistics capabilities worldwide. The Company targets customers in markets such as communications, storage, networking, mobile, industrial automation, industrial internet of things, government, military, edge computing and high performance computing.  SMART operates in three primary product areas: Specialty Memory products, Brazil products and Specialty Compute and Storage Solutions.

 

See www.smartgh.com, www.smartm.com, www.smartembedded.com, www.smartsscs.com and www.penguincomputing.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

 

 

 

February 28, 2020

 

 

November 29,

2019

 

 

March 1,

2019

 

 

February 28, 2020

 

 

March 1,

2019

 

Net sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specialty Memory Products

 

$

111,455

 

 

$

103,529

 

 

$

115,608

 

 

$

214,984

 

 

$

255,557

 

Brazil Products

 

 

97,700

 

 

 

93,999

 

 

 

147,111

 

 

 

191,699

 

 

 

346,390

 

Specialty Compute and Storage Solutions

 

 

62,887

 

 

 

74,490

 

 

 

41,344

 

 

 

137,377

 

 

 

95,995

 

Total net sales

 

 

272,042

 

 

 

272,018

 

 

 

304,063

 

 

 

544,060

 

 

 

697,942

 

Cost of sales (1)(2)

 

 

220,536

 

 

 

217,698

 

 

 

246,932

 

 

 

438,234

 

 

 

555,742

 

Gross profit

 

 

51,506

 

 

 

54,320

 

 

 

57,131

 

 

 

105,826

 

 

 

142,200

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development (1)

 

 

14,702

 

 

 

14,886

 

 

 

11,238

 

 

 

29,588

 

 

 

23,054

 

Selling, general and administrative (1) (2)

 

 

28,648

 

 

 

33,553

 

 

 

23,442

 

 

 

62,201

 

 

 

48,896

 

Total operating expenses

 

 

43,350

 

 

 

48,439

 

 

 

34,680

 

 

 

91,789

 

 

 

71,950

 

Income from operations

 

 

8,156

 

 

 

5,881

 

 

 

22,451

 

 

 

14,037

 

 

 

70,250

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(4,150

)

 

 

(4,492

)

 

 

(5,273

)

 

 

(8,642

)

 

 

(11,148

)

Other income (expense):

 

 

(12,386

)

 

 

(840

)

 

 

252

 

 

 

(13,226

)

 

 

(3,077

)

Total other expense

 

 

(16,536

)

 

 

(5,332

)

 

 

(5,021

)

 

 

(21,868

)

 

 

(14,225

)

Income (loss) before income taxes

 

 

(8,380

)

 

 

549

 

 

 

17,430

 

 

 

(7,831

)

 

 

56,025

 

Provision for income taxes

 

 

1,340

 

 

 

325

 

 

 

4,644

 

 

 

1,665

 

 

 

12,263

 

Net income (loss)

 

$

(9,720

)

 

$

224

 

 

$

12,786

 

 

$

(9,496

)

 

$

43,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.41

)

 

$

0.01

 

 

$

0.56

 

 

$

(0.40

)

 

$

1.93

 

Diluted

 

$

(0.41

)

 

$

0.01

 

 

$

0.55

 

 

$

(0.40

)

 

$

1.88

 

Shares used in computing per-share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

23,906

 

 

 

23,713

 

 

 

22,872

 

 

 

23,809

 

 

 

22,733

 

Diluted

 

 

23,906

 

 

 

24,286

 

 

 

23,359

 

 

 

23,809

 

 

 

23,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

731

 

 

$

730

 

 

$

607

 

 

$

1,461

 

 

$

1,152

 

Research and development

 

 

783

 

 

 

744

 

 

 

660

 

 

 

1,527

 

 

 

1,294

 

Selling, general and administrative

 

 

3,133

 

 

 

4,482

 

 

 

2,881

 

 

 

7,615

 

 

 

5,757

 

Total stock-based compensation expense

 

$

4,647

 

 

$

5,956

 

 

$

4,148

 

 

$

10,603

 

 

$

8,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes amortization of intangible assets expense as

   follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

$

647

 

 

$

647

 

 

$

98

 

 

$

1,294

 

 

$

114

 

Selling, general and administrative

 

 

2,766

 

 

 

2,766

 

 

 

961

 

 

 

5,533

 

 

 

1,922

 

Total amortization expense

 

$

3,413

 

 

$

3,413

 

 

$

1,059

 

 

$

6,827

 

 

$

2,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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

 

 

 

February 28, 2020

 

 

November 29,

2019

 

 

March 1,

2019

 

 

February 28, 2020

 

 

March 1,

2019

 

Reconciliation of gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

51,506

 

 

$

54,320

 

 

$

57,131

 

 

$

105,826

 

 

$

142,200

 

GAAP gross margin

 

 

18.9

%

 

 

20.0

%

 

 

18.8

%

 

 

19.5

%

 

 

20.4

%

Add: Share-based compensation included in cost of sales

 

 

731

 

 

 

730

 

 

 

607

 

 

 

1,461

 

 

 

1,152

 

Add: Amortization of intangible assets

 

 

647

 

 

 

647

 

 

 

98

 

 

 

1,294

 

 

 

114

 

Non-GAAP gross profit

 

$

52,884

 

 

$

55,697

 

 

$

57,836

 

 

$

108,581

 

 

$

144,097

 

Non-GAAP gross margin

 

 

19.4

%

 

 

20.5

%

 

 

19.0

%

 

 

20.0

%

 

 

20.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating expenses

 

$

43,350

 

 

$

48,439

 

 

$

34,680

 

 

$

91,789

 

 

$

71,950

 

Less: Share-based compensation expense included in opex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

783

 

 

 

744

 

 

 

660

 

 

 

1,527

 

 

 

1,294

 

Selling, general and administrative

 

 

3,133

 

 

 

4,482

 

 

 

2,881

 

 

 

7,615

 

 

 

5,757

 

Total

 

 

3,916

 

 

 

5,226

 

 

 

3,541

 

 

 

9,142

 

 

 

7,051

 

Less: Amortization of intangible assets included in opex

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

 

2,766

 

 

 

2,766

 

 

 

961

 

 

 

5,532

 

 

 

1,922

 

Total

 

 

2,766

 

 

 

2,766

 

 

 

961

 

 

 

5,532

 

 

 

1,922

 

Less: Legal fees - term loan (payment holiday)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126

 

Less: Acquisition-related costs

 

 

 

 

 

946

 

 

 

 

 

 

946

 

 

 

1,423

 

Less: Integration expenses

 

 

1,040

 

 

 

2,052

 

 

 

 

 

 

3,092

 

 

 

 

Non-GAAP operating expenses

 

$

35,628

 

 

$

37,449

 

 

$

30,178

 

 

$

73,077

 

 

$

61,428

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of income from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

 

$

8,156

 

 

$

5,881

 

 

$

22,451

 

 

$

14,037

 

 

$

70,250

 

GAAP operating margin

 

 

3.0

%

 

 

2.2

%

 

 

7.4

%

 

 

2.6

%

 

 

10.1

%

Add: Share-based compensation expense

 

 

4,647

 

 

 

5,956

 

 

 

4,148

 

 

 

10,603

 

 

 

8,203

 

Add: Amortization of intangible assets

 

 

3,413

 

 

 

3,413

 

 

 

1,059

 

 

 

6,826

 

 

 

2,036

 

Add: Legal fees - term loan (payment holiday)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126

 

Add: Acquisition-related costs

 

 

 

 

 

946

 

 

 

 

 

 

946

 

 

 

1,423

 

Add: Integration expenses

 

 

1,040

 

 

 

2,052

 

 

 

 

 

 

3,092

 

 

 

 

Non-GAAP income from operations

 

$

17,256

 

 

$

18,248

 

 

$

27,658

 

 

$

35,504

 

 

$

82,038

 

Non-GAAP operating margin

 

 

6.3

%

 

 

6.7

%

 

 

9.1

%

 

 

6.5

%

 

 

11.8

%

 


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

 

 

 

February 28, 2020

 

 

November 29,

2019

 

 

March 1,

2019

 

 

February 28, 2020

 

 

March 1,

2019

 

Reconciliation of income (loss) before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) before income taxes

 

$

(8,380

)

 

$

549

 

 

$

17,430

 

 

$

(7,831

)

 

$

56,025

 

Add: Share-based compensation expense

 

 

4,647

 

 

 

5,956

 

 

 

4,148

 

 

 

10,603

 

 

 

8,203

 

Add: Amortization of intangible assets

 

 

3,413

 

 

 

3,413

 

 

 

1,059

 

 

 

6,826

 

 

 

2,036

 

Add: Legal fees - term loan (payment holiday)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

126

 

Add: Acquisition-related costs

 

 

 

 

 

946

 

 

 

 

 

 

946

 

 

 

1,423

 

Add: Integration expenses

 

 

1,040

 

 

 

2,052

 

 

 

 

 

 

3,092

 

 

 

 

Add: Extinguishment of term loan

 

 

6,630

 

 

 

 

 

 

 

 

 

6,630

 

 

 

 

Add: Capped call MTM adjustment

 

 

4,795

 

 

 

 

 

 

 

 

 

4,795

 

 

 

 

Add: Convertible debt discount OID

 

 

399

 

 

 

 

 

 

 

 

 

399

 

 

 

 

Add:  Foreign currency (gains)/losses

 

 

1,191

 

 

 

911

 

 

 

(47

)

 

 

2,102

 

 

 

3,337

 

Non-GAAP income before income taxes

 

$

13,735

 

 

$

13,827

 

 

$

22,590

 

 

$

27,562

 

 

$

71,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of provision for income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP provision for income taxes

 

$

1,340

 

 

$

325

 

 

$

4,644

 

 

$

1,665

 

 

$

12,263

 

GAAP effective tax rate

 

 

-16.0

%

 

 

59.2

%

 

 

26.6

%

 

 

-21.3

%

 

 

21.9

%

Less: Goodwill tax credit

 

 

484

 

 

 

 

 

 

 

 

 

484

 

 

 

 

Tax effect of adjustments to GAAP results

 

 

(119

)

 

 

(91

)

 

 

5

 

 

 

(210

)

 

 

(333

)

Non-GAAP provision for income taxes

 

$

975

 

 

$

416

 

 

$

4,639

 

 

$

1,391

 

 

$

12,596

 

Non-GAAP effective tax rate

 

 

7.1

%

 

 

3.0

%

 

 

20.5

%

 

 

5.0

%

 

 

17.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

$

(9,720

)

 

$

224

 

 

$

12,786

 

 

$

(9,496

)

 

$

43,762

 

Adjustments to GAAP net income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

4,647

 

 

 

5,956

 

 

 

4,148

 

 

 

10,603

 

 

 

8,203

 

Amortization of intangible assets

 

 

3,413

 

 

 

3,413

 

 

 

1,059

 

 

 

6,826

 

 

 

2,036

 

Legal fees - term loan (payment holiday)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related costs

 

 

 

 

 

946

 

 

 

 

 

 

946

 

 

 

1,423

 

Integration expenses

 

 

1,040

 

 

 

2,052

 

 

 

 

 

 

3,092

 

 

 

 

Extinguishment of term loan

 

 

6,630

 

 

 

 

 

 

 

 

 

6,630

 

 

 

 

Capped call MTM adjustment

 

 

4,795

 

 

 

 

 

 

 

 

 

4,795

 

 

 

 

Convertible debt discount OID

 

 

399

 

 

 

 

 

 

 

 

 

399

 

 

 

 

Goodwill tax credit

 

 

484

 

 

 

 

 

 

 

 

 

484

 

 

 

 

Contingent consideration fair value adjustment

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

Foreign currency (gains)/losses

 

 

1,191

 

 

 

911