This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ariba Reports Results For Third Quarter Of Fiscal Year 2012

The following table reconciles financial measures prepared in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) to the most directly comparable non-GAAP financial measures in the press release.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, GAAP financial measures, which should be considered as the primary financial metrics for evaluating our financial performance. Significantly, non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles. Instead, they are based on subjective determinations by management designed to supplement our GAAP financial measures. They are subject to a number of important limitations and should be considered only in conjunction with our consolidated financial statements prepared in accordance with GAAP. For example, our non-GAAP financial measures have the effect of excluding income and expenses from our operating results that should be properly considered under a system of accrual accounting. In addition, our non-GAAP financial measures differ from GAAP measures with the same names, may vary over time and may differ from non-GAAP financial measures with the same or similar names used by other companies. Accordingly, investors should exercise caution when evaluating our non-GAAP financial measures.

Despite these limitations, we believe our non-GAAP financial measures provide meaningful supplemental information about our operating results, primarily because they exclude income and expenses that we do not believe are indicative of the ongoing operating performance of our business and our senior management. Although these items should properly be considered in our GAAP financial measures, we believe they should be excluded when evaluating our current operating performance. The non-GAAP financial measures disclosed in the accompanying press release are used by our Board of Directors and senior management to evaluate our current operating performance, are used in evaluating the performance of our senior management, and are used in our budget and planning processes. We believe that our non-GAAP financial measures are helpful to investors by facilitating comparisons of our current and prior operating results and by facilitating comparisons of our operating results with those of other software companies.

 
Ariba, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Operating Results
(Unaudited; in thousands, except per share data)
       
The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP operating results for the period indicated below:
 
Three Months Ended Three Months Ended
June 30, 2012 June 30, 2011

Expense reconciliation:

GAAP revenue $ 136,964 $ 121,917
Less: GAAP net loss   (760 )   (11,934 )
Total GAAP expenses 137,724 133,851
 
Amortization of intangible assets (4,720 ) (4,285 )
Stock-based compensation (18,782 ) (13,999 )
Restructuring costs - (13,396 )
Transaction costs (2,674 ) -
Discontinued operations   330     349  
Total non-GAAP operating expenses $ 111,878   $ 102,520  
 
 
Three Months Ended Three Months Ended
June 30, 2012 June 30, 2011

Net income (loss) reconciliation:

GAAP net loss $ (760 ) $ (11,934 )
Amortization of intangible assets 4,720 4,285
Stock-based compensation 18,782 13,999
Restructuring costs - 13,396
Transaction costs 2,674 -
Discontinued operations   (330 )   (349 )
Non-GAAP income from continuing operations $ 25,086   $ 19,397  
 
 
Three Months Ended Three Months Ended
June 30, 2012 June 30, 2011

Net income (loss) per share reconciliation:

GAAP net loss per share - basic $ (0.01 ) $ (0.13 )
Amortization of intangible assets 0.05 0.05
Stock-based compensation 0.19 0.15
Restructuring costs 0.00 0.14
Transaction costs 0.03 0.00
Discontinued operations   (0.00 )   (0.00 )
Non-GAAP income from continuing operations per share - basic $ 0.26   $ 0.21  
 
Non-GAAP income from continuing operations per share - diluted $ 0.25 $ 0.20
 
Weighted average shares - basic 96,244 93,101
Weighted average shares - diluted 100,196 96,721
 
 
Ariba, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Operating Results
(Unaudited; in thousands, except per share data)
       

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP operating results for the period indicated below:

 
Nine Months Ended Nine Months Ended
June 30, 2012 June 30, 2011

Expense reconciliation:

GAAP revenue $ 394,088 $ 321,102
Less: GAAP net income   1,734     30,166  
Total GAAP expenses 392,354 290,936
 
Amortization of intangible assets (14,117 ) (8,627 )
Stock-based compensation (55,078 ) (41,044 )
Tax accrual reversal - 3,942
Restructuring costs - (10,704 )
Transaction costs (2,674 ) (2,471 )
Discontinued operations   1,702     35,556  
Total non-GAAP operating expenses $ 322,187   $ 267,588  
 
 
Nine Months Ended Nine Months Ended
June 30, 2012 June 30, 2011

Net income reconciliation:

GAAP net income $ 1,734 $ 30,166
Amortization of intangible assets 14,117 8,627
Stock-based compensation 55,078 41,044
Tax accrual reversal - (3,942 )
Restructuring costs - 10,704
Transaction costs 2,674 2,471
Discontinued operations   (1,702 )   (35,556 )
Non-GAAP income from continuing operations $ 71,901   $ 53,514  
 
 
Nine Months Ended Nine Months Ended
June 30, 2012 June 30, 2011

Net income per share reconciliation:

GAAP net income per share - basic $ 0.02 $ 0.33
Amortization of intangible assets 0.15 0.09
Stock-based compensation 0.57 0.45
Tax accrual reversal 0.00 (0.04 )

Restructuring costs

0.00 0.12
Transaction costs 0.03 0.03
Discontinued operations   (0.02 )   (0.39 )
Non-GAAP income from continuing operations per share - basic $ 0.75   $ 0.59  
 
Non-GAAP income from continuing operations per share - diluted $ 0.73 $ 0.57
 
Weighted average shares - basic 95,284 91,193
Weighted average shares - diluted 98,694 94,697
 

Discussion of Specific Items Excluded From Non-GAAP Financial Measures

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs