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TheStreet Open House

Infoblox Reports Second Quarter Of Fiscal 2013 Results

Stocks in this article: BLOX

For a detailed discussion of these and other risk factors, please refer to our filings with the Securities and Exchange Commission, including the final prospectus related to our initial public offering, which are available on our investor relations Web site ( http://ir.infoblox.com/) and on the SEC’s Web site ( www.sec.gov).

All information provided in this release and in the attachments is as of February 21, 2013, and stockholders of Infoblox are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Infoblox does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this February 21, 2013 press release, or to reflect the occurrence of unanticipated events.

 

INFOBLOX INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - GAAP BASIS

(In thousands, except per share data)

(Unaudited)

 
 
  Three Months Ended   Six Months Ended

January 31, 2013

 

October 31, 2012

 

January 31, 2012

January 31, 2013

 

January 31, 2012

Net revenue:
Products and licenses $ 30,807 $ 27,098 $ 23,547 $ 57,905 $ 46,238
Services 23,632   22,407   17,840   46,039   34,504  
Total net revenue 54,439   49,505   41,387   103,944   80,742  
Cost of revenue:
Products and licenses 7,100 5,840 5,030 12,940 9,724
Services 4,542   4,249   3,736   8,791   7,307  
Total cost of revenue 11,642   10,089   8,766   21,731   17,031  
Gross profit 42,797   39,416   32,621   82,213   63,711  
Operating expenses:
Research and development 10,593 10,214 8,979 20,807 17,885
Sales and marketing 29,108 25,631 20,605 54,739 40,278
General and administrative 5,493   5,658   3,716   11,151   7,393  
Total operating expenses 45,194   41,503   33,300   86,697   65,556  
Loss from operations (2,397 ) (2,087 ) (679 ) (4,484 ) (1,845 )
Other expense, net: (220 ) (106 ) (171 ) (326 ) (339 )
Loss before provision for income taxes (2,617 ) (2,193 ) (850 ) (4,810 ) (2,184 )
Provision for income taxes 629   197   226   826   661  
Net loss $ (3,246 ) $ (2,390 ) $ (1,076 ) $ (5,636 ) $ (2,845 )
 
Net loss per share - basic and diluted $ (0.07 ) $ (0.05 ) $ (0.10 ) $ (0.12 ) $ (0.26 )
 
Weighted average shares used in computing basic and diluted net loss per share 47,827   45,990   11,137   46,940   11,087  
 

INFOBLOX INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - GAAP BASIS

(In thousands)

(Unaudited)

 
 
  Three Months Ended   Six Months Ended

January 31, 2013

 

October 31, 2012

 

January 31, 2012

January 31, 2013

 

January 31, 2012

Net loss $ (3,246 ) $ (2,390 ) $ (1,076 ) $ (5,636 ) $ (2,845 )
Other comprehensive loss
Unrealized holding gains (losses) on short-term investments arising during the period, net of tax and reclassifications adjustments for amounts included in net loss 56   (60 )  

(4

)  
Comprehensive loss $ (3,190 ) $ (2,450 ) $ (1,076 ) $ (5,640 ) $ (2,845 )
 

INFOBLOX INC.

 

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(In thousands, except per share data)

(Unaudited)

 
 
  Three Months Ended   Six Months Ended

January 31, 2013

 

October 31, 2012

 

January 31, 2012

January 31, 2013

 

January 31, 2012

Gross Profit Reconciliation:

GAAP gross profit $ 42,797 $ 39,416 $ 32,621 $ 82,213 $ 63,711
Stock based compensation expense 376 428 104 804 203
Amortization of intangible assets 254   254   325   508   655  
Non-GAAP gross profit $ 43,427   $ 40,098   $ 33,050   $ 83,525   $ 64,569  

Gross Margin Reconciliation:

GAAP gross margin 78.6 % 79.6 % 78.8 % 79.1 % 78.9 %
Stock based compensation expense 0.7 % 0.9 % 0.3 % 0.8 % 0.3 %
Amortization of intangible assets 0.5 % 0.5 % 0.8 % 0.5 % 0.8 %
Non-GAAP gross margin 79.8 % 81.0 % 79.9 % 80.4 % 80.0 %

Operating Income (Loss) Reconciliation:

GAAP operating loss $ (2,397 ) $ (2,087 ) $ (679 ) $ (4,484 ) $ (1,845 )
Stock based compensation expense 5,618 4,922 2,045 10,540 3,737
Amortization of intangible assets 581   581   652   1,162   1,561  
Non-GAAP operating income $ 3,802   $ 3,416   $ 2,018   $ 7,218   $ 3,453  

Operating Margin Reconciliation:

GAAP operating margin (4.4 %) (4.2 %) (1.6 %) (4.3 %) (2.3 %)
Stock based compensation expense 10.3 % 9.9 % 4.9 % 10.1 % 4.6 %
Amortization of intangible assets 1.1 % 1.2 % 1.6 % 1.1 % 2.0 %
Non-GAAP operating margin 7.0 % 6.9 % 4.9 % 6.9 % 4.3 %

Net Income (Loss) Reconciliation:

GAAP net loss $ (3,246 ) $ (2,390 ) $ (1,076 ) $ (5,636 ) $ (2,845 )
Stock based compensation expense 5,618 4,922 2,045 10,540 3,737
Amortization of intangible assets 581   581   652   1,162   1,561  
Non-GAAP net income $ 2,953   $ 3,113   $ 1,621   $ 6,066   $ 2,453  
 

Non-GAAP EPS

$ 0.06   $ 0.06   $ 0.04   $ 0.11   $ 0.06  

Shares used in Computing non-GAAP EPS Reconciliation:

Diluted shares:
Weighted-average shares outstanding used in calculating GAAP diluted net loss per share 47,827 45,990 11,137 46,940 11,087
Additional dilutive securities for non-GAAP income 4,814 6,910 4,252 5,882 4,241
Conversion of convertible preferred stock and other    

27,201

    27,201  
Weighted-average shares outstanding used in calculating non-GAAP diluted net income per share 52,641   52,900   42,590   52,822   42,529  
 

INFOBLOX INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

 
 
 

January 31, 2013

 

July 31, 2012

(Unaudited)

(a)

ASSETS

CURRENT ASSETS:
Cash and cash equivalents $ 84,544 $ 156,613
Short-term investments 95,269
Accounts receivable, net 31,652 26,819
Inventory 2,985 2,560
Deferred tax assets 1,545 1,577
Prepaid expenses and other current assets 5,618   4,159  
Total current assets 221,613 191,728
Property and equipment, net 12,693 6,498
Intangible assets, net 6,655 7,817
Goodwill 32,726 32,726
Restricted cash 3,501 3,803
Other assets 355   411  
TOTAL ASSETS $ 277,543   $ 242,983  

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 13,040 $ 11,607
Accrued compensation 11,355 10,295
Deferred revenue, net 61,798   56,184  
Total current liabilities 86,193 78,086
Deferred revenue, net 24,332 20,483
Deferred tax liability 1,494 1,494
Other liabilities 6,358   845  
TOTAL LIABILITIES 118,377   100,908  
STOCKHOLDERS’ EQUITY:
Convertible preferred stock, $0.0001 par value per share—5,000,000 shares authorized as of January 31, 2013 and July 31, 2012; no shares issued or outstanding as of January 31, 2013 and July 31, 2012
Common stock, $0.0001 par value per share—100,000,000 shares authorized; 48,452,234 shares and 45,737,770 shares issued and outstanding as of January 31, 2013 and July 31, 2012 5 5
Additional paid-in capital 272,937 250,206
Accumulated other comprehensive loss (4 )
Accumulated deficit (113,772 ) (108,136 )
TOTAL STOCKHOLDERS’ EQUITY 159,166   142,075  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 277,543   $ 242,983  

(a)

 

Derived from the July 31, 2012 audited consolidated financial statements.

 

INFOBLOX INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 
 
Six Months Ended January 31,
2013   2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (5,636 ) $ (2,845 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock-based compensation 10,540 3,737
Depreciation and amortization 2,929 2,864
Excess tax benefits from employee stock plans (218 )
Amortization of investment premium 132
Change in fair value of convertible preferred stock warrant liability 80
Other 57
Changes in operating assets and liabilities:
Accounts receivable, net (4,833 ) (1,740 )
Inventory (425 ) (158 )
Prepaid expenses, other current assets and other assets (1,604 ) (1,947 )
Accounts payable and accrued liabilities 784 63
Accrued compensation 1,060 58
Deferred revenue, net 9,463 9,007
Other liabilities 5,513   (73 )
Net cash provided by operating activities 17,762   9,046  
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of short-term investments (96,125 )
Proceeds from maturities of short-term investments 720
Purchases of property and equipment (6,736 ) (1,786 )
Decrease in restricted cash 532    
Net cash used in investing activities (101,609 ) (1,786 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under the employee stock plans 11,795 516
Payment of remaining unpaid initial public offering costs (235 )
Excess tax benefits from employee stock plans 218    
Net cash provided by financing activities 11,778   516  
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (72,069 ) 7,776
CASH AND CASH EQUIVALENTS—Beginning of period 156,613   42,207  
CASH AND CASH EQUIVALENTS—End of period $ 84,544   $ 49,983  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Purchases of property and equipment not yet paid $ 1,538   $  
Cash paid for income taxes, net $ 487   $ 625  
Change in liability due to vesting of early exercised stock options, net $ 192   $ 95  




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