[October 27, 2016] |
|
Mellanox Achieves Record Quarterly Revenue in the Third Quarter 2016
Mellanox® Technologies, Ltd. (NASDAQ:MLNX) today announced
financial results for its third quarter ended September 30, 2016.
"We are pleased to report the sixth consecutive quarter of record
revenue. We see strong customer adoption of our 25/50/100 Gigabit
Ethernet solutions. We believe the transition to 25/50/100 Gigabit
Ethernet provides Mellanox significant growth opportunities due to our
first mover advantage. We saw strong sequential growth in our InfiniBand
business, driven by continued adoption of our 100 Gigabit EDR
solutions," said Eyal Waldman, president and CEO of Mellanox
Technologies. "Our third quarter results show continued leadership in
both Ethernet and InfiniBand, and we expect growth to continue, driven
by our interconnect and processor technologies."
Third Quarter 2016 Highlights
-
Revenues of $224.2 million increased 4.4 percent, compared to $214.8
million in the second quarter of 2016.
-
GAAP gross margins of 65.1 percent in the third quarter compared to
62.8 percent in the second quarter of 2016.
-
Non-GAAP gross margins of 71.8 percent, compared to 71.4 percent in
the second quarter of 2016.
-
GAAP operating income was $14.5 million, compared to $6.6 million in
the second quarter of 2016.
-
Non-GAAP operating income was $49.2 million, or 22.0 percent of
revenue, compared to non-GAAP operating income of $45.5 million, or
21.2% percent of revenue in the second quarter of 2016.
-
GAAP net income was $12.0 million, compared to $4.7 million in the
second quarter of 2016.
-
Non-GAAP net income was $46.2 million, compared to $42.7 million in
the second quarter of 2016.
-
GAAP net income per diluted share was $0.24 in the third quarter
compared to $0.09 in the second quarter of 2016.
-
Non-GAAP net income per diluted share was $0.93 in the third quarter
compared to $0.87 in the second quarter of 2016.
-
$48.7 million in cash was provided by operating activities, compared
to $44.8 million in the second quarter of 2016.
-
Cash and investments totaled $292.4 million at September 30, 2016,
compared to $276.5 million at June 30, 2016.
Fourth Quarter 2016 Outlook
We currently project:
-
Quarterly revenues of $222 million to $228 million
-
Non-GAAP gross margins of 71 percent to 72 percent
-
An increase in non-GAAP operating expenses of 2 percent to 4 percent
-
Share-based compensation expense of $17.4 million to $17.9 million
-
Non-GAAP diluted share count of 49.8 million to 50.3 million shares
Recent Mellanox Press Release Highlights
•
|
October 3, 2016
|
Open Ethernet Gains Further Momentum with Deployment of Standard
Linux Operating Systems over Ethernet Switches
|
•
|
September 28, 2016
|
Mellanox Delivers Advanced Network Capabilities and Crypto Functions
with New Innova IPsec 10/40G Ethernet Adapters
|
•
|
September 27, 2016
|
Mellanox and Micron Smash 1 Terabit per Second Storage Performance
Record with Windows Server 2016
|
•
|
September 17, 2016
|
Mellanox Technologies and Oclaro Team Up to Connect 100Gb/s PSM4
Silicon Photonics to Next Generation 25Gb/s LR Transceivers for
Servers and Storage
|
•
|
September 6, 2016
|
Mellanox and Cumulus Deliver First Complete 10/25/50/100 Gb/s
Ethernet Open Networking Switch Portfolio
|
•
|
September 5, 2016
|
Mellanox Launches 25 Gb/s Ethernet SFP28 Optical Transceivers and
Active Optical Cables for Data Center Networks
|
•
|
August 31, 2016
|
Mellanox Ethernet Solutions Accelerate Germany's Most Advanced Cloud
Data Center
|
•
|
August 29, 2016
|
Mellanox Ethernet Offload Engines Enable New Levels of Application
Efficiency With VMware vSphere
|
•
|
August 23, 2016
|
Mellanox Expands Asia-Pacific Presence, New Singapore Headquarters
and State-of-the-Art Solutions Centre to Strengthen Footprint in Asia
|
•
|
August 16, 2016
|
Mellanox Demonstrates Accelerated NVMe Over Fabrics at Intel
Developers Forum
|
|
|
|
Conference Call
Mellanox will hold its third quarter 2016 financial results conference
call today at 2 p.m. Pacific Time (5 P.M. Eastern Time) to discuss the
Company's financial results. To listen to the call, dial
+1-877-876-9176, or for investors outside the U.S., +1-785-424-1667,
approximately ten minutes prior to the start time.
The Mellanox financial results conference call will be available, via
live webcast, on the investor relations section of the Mellanox website
at: http://ir.mellanox.com.
Access the webcast 15 minutes prior to the start of the call to download
and install any necessary audio software. A replay of the webcast will
also be available on the Mellanox website.
About Mellanox
Mellanox Technologies (NASDAQ: MLNX) is a leading supplier of end-to-end
Ethernet and InfiniBand intelligent interconnect solutions and services
for servers, storage, and hyper-converged infrastructure. Mellanox's
intelligent interconnect solutions increase data center efficiency by
providing the highest throughput and lowest latency, delivering data
faster to applications and unlocking system performance. Mellanox offers
a choice of high performance solutions: network and multicore
processors, network adapters, switches, cables, software and silicon,
that accelerate application runtime and maximize business results for a
wide range of markets including high performance computing, enterprise
data centers, Web 2.0, cloud, storage, network security, telecom and
financial services. More information is available at www.mellanox.com.
GAAP to Non-GAAP Reconciliation
To supplement our consolidated financial statements presented in
accordance with generally accepted accounting principles (GAAP),
Mellanox uses non-GAAP measures of net (loss) income which are adjusted
from results based on GAAP to exclude share-based compensation expense,
amortization expense of acquired intangible assets, acquisition related
expense, settlement costs, gains (losses) on equity investments and
income tax effects and adjustments. The purpose of income tax effects
and adjustments is to exclude tax consequences associated with the above
excluded expenses items, as well as the non-cash impact on the tax
provision pertaining to changes in deferred tax assets associated with
carryforward losses of group entities subject to tax holiday in Israel.
The company believes the non-GAAP results provide useful information to
both management and investors, as these non-GAAP results exclude
expenses that are not indicative of our core operating results.
Management believes it is useful to exclude share-based compensation
expense, amortization expense of acquired intangible assets, acquisition
related expense, settlement costs, gains (losses) on equity investments,
and income tax effects and adjustments because it enhances investors'
ability to understand our business from the same perspective as
management, which believes that such items are not directly attributable
to nor reflect the underlying performance of the company's business
operations. Further, management believes certain non-cash charges such
as share-based compensation, amortization of acquired intangible assets,
changes related to recognition of deferred taxes and the net impact on
the company's tax provision for non-GAAP adjustments do not reflect the
cash operating results of the business. These measures should be
considered in addition to results prepared in accordance with GAAP, but
should not be considered a substitute for or superior to GAAP results.
These non-GAAP measures may be different than the non-GAAP measures used
by other companies. A reconciliation of GAAP to non-GAAP condensed
consolidated statements of operations is also presented in the financial
statements portion of this release and is posted under the "Investor
Relations" section on our website.
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
All statements included or incorporated by reference in this release,
other than statements or characterizations of historical fact, are
forward-looking statements, including the guidance for the three months
ended December 31, 2016, statements related to trends in the market for
our solutions and services, opportunities for our company in 2016 and
beyond, and future product capabilities. These forward-looking
statements are based on our current expectations, estimates and
projections about our industry and business, management's beliefs and
certain assumptions made by us, all of which are subject to change.
Forward-looking statements can often be identified by words such as
"projects," "anticipates," "expects," "intends," "plans," "predicts,"
"believes," "seeks," "estimates," "may," "will," "should," "would,"
"could," "potential," "continue," "ongoing," similar expressions and
variations or negatives of these words. These forward-looking statements
are not guarantees of future results and are subject to risks,
uncertainties and assumptions that could cause our actual results to
differ materially and adversely from those expressed in any
forward-looking statement.
The risks and uncertainties that could cause our results to differ
materially from those expressed or implied by such forward-looking
statements include the continued expansion of our product line, customer
base and the total available market of our products, the continued
growth in demand for our products, the continued, increased demand for
industry standards-based technology, our ability to react to trends and
challenges in our business and the markets in which we operate, our
ability to anticipate market needs or develop new or enhanced products
to meet those needs, the adoption rate of our products, our ability to
establish and maintain successful relationships with our OEM partners,
our ability to effectively compete in our industry, fluctuations in
demand, sales cycles and prices for our products and services, our
success converting design wins to revenue-generating product shipments,
the continued launch and volume ramp of large customer sales
opportunities, our ability to protect our intellectual property rights,
our ability to successfully acquire businesses and technologies and to
successfully integrate and operate these acquired businesses, our
success in realizing the anticipated benefits of mergers and
acquisitions, and our ability to obtain debt at competitive rates or in
sufficient amounts in order to fund our contractual commitments.
Furthermore, the majority of our quarterly revenues are derived from
customer orders received and fulfilled in the same quarterly period. We
have limited visibility into actual end-user demand as such demand
impacts us and our OEM customer inventory balances in any given quarter.
Consequently, this introduces risk and uncertainty into our revenue and
production forecasts and business planning and could negatively impact
our financial results. In addition, current uncertainty in the global
economic environment poses a risk to the overall economy as businesses
may defer purchases in response to tighter credit conditions, changing
overall demand for our products, and negative financial news.
Consequently, our results could differ materially from our prior results
due to these general economic and market conditions, political events
and other risks and uncertainties described more fully in our documents
filed with or furnished to the Securities and Exchange Commission.
More information about the risks, uncertainties and assumptions that may
impact our business is set forth in our annual report on Form 10-K filed
with the SEC on February 26, 2016. All forward-looking statements in
this press release, including the outlook for the three months ended
December 31, 2016, are based on information available to us as of the
date hereof, and we assume no obligation to update these forward-looking
statements.
Mellanox is a registered trademark of Mellanox Technologies, Ltd. All
other trademarks are property of their respective owners.
|
Mellanox Technologies, Ltd. Condensed Consolidated
Statements of Operations (in thousands, except per share
data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Total revenues
|
|
$
|
224,211
|
|
|
$
|
171,377
|
|
|
$
|
635,822
|
|
|
$
|
481,200
|
|
Cost of revenues
|
|
78,191
|
|
|
49,129
|
|
|
228,479
|
|
|
137,394
|
|
Gross profit
|
|
146,020
|
|
|
122,248
|
|
|
407,343
|
|
|
343,806
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
83,611
|
|
|
65,861
|
|
|
236,969
|
|
|
186,555
|
|
Sales and marketing
|
|
34,408
|
|
|
24,816
|
|
|
98,212
|
|
|
70,740
|
|
General and administrative
|
|
13,501
|
|
|
10,944
|
|
|
54,933
|
|
|
31,315
|
|
Total operating expenses
|
|
131,520
|
|
|
101,621
|
|
|
390,114
|
|
|
288,610
|
|
Income from operations
|
|
14,500
|
|
|
20,627
|
|
|
17,229
|
|
|
55,196
|
|
Interest expense
|
|
(2,195
|
)
|
|
-
|
|
|
(5,408
|
)
|
|
-
|
|
Other income (loss)
|
|
606
|
|
|
441
|
|
|
982
|
|
|
(1,116
|
)
|
Other (loss) income, net
|
|
(1,589
|
)
|
|
441
|
|
|
(4,426
|
)
|
|
(1,116
|
)
|
Income before taxes
|
|
12,911
|
|
|
21,068
|
|
|
12,803
|
|
|
54,080
|
|
Provision for taxes on income
|
|
(874
|
)
|
|
(1,116
|
)
|
|
(3,280
|
)
|
|
(4,384
|
)
|
Net income
|
|
$
|
12,037
|
|
|
$
|
19,952
|
|
|
$
|
9,523
|
|
|
$
|
49,696
|
|
Net income per share - basic
|
|
$
|
0.25
|
|
|
$
|
0.43
|
|
|
$
|
0.20
|
|
|
$
|
1.08
|
|
Net income per share - diluted
|
|
$
|
0.24
|
|
|
$
|
0.42
|
|
|
$
|
0.19
|
|
|
$
|
1.05
|
|
Shares used in computing net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
48,385
|
|
|
46,583
|
|
|
47,883
|
|
|
46,158
|
|
Diluted
|
|
49,494
|
|
|
47,725
|
|
|
49,232
|
|
|
47,542
|
|
|
Mellanox Technologies, Ltd. Reconciliation of
Non-GAAP Adjustments (in thousands, except percentages,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of GAAP net income to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
12,037
|
|
|
$
|
19,952
|
|
|
$
|
9,523
|
|
|
$
|
49,696
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
627
|
|
|
592
|
|
|
1,773
|
|
|
1,749
|
|
Research and development
|
|
10,396
|
|
|
7,183
|
|
|
30,318
|
|
|
21,504
|
|
Sales and marketing
|
|
3,837
|
|
|
2,621
|
|
|
11,374
|
|
|
7,765
|
|
General and administrative
|
|
2,716
|
|
|
2,434
|
|
|
10,471
|
|
|
6,816
|
|
Total share-based compensation expense
|
|
17,576
|
|
|
12,830
|
|
|
53,936
|
|
|
37,834
|
|
Amortization of acquired intangibles:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
13,519
|
|
|
2,074
|
|
|
37,479
|
|
|
5,621
|
|
Research and development
|
|
195
|
|
|
194
|
|
|
584
|
|
|
584
|
|
Sales and marketing
|
|
2,230
|
|
|
196
|
|
|
5,483
|
|
|
977
|
|
Total amortization of acquired intangibles
|
|
15,944
|
|
|
2,464
|
|
|
43,546
|
|
|
7,182
|
|
Settlement costs:
|
|
|
|
|
|
|
|
|
General and administrative
|
|
-
|
|
|
-
|
|
|
5,106
|
|
|
-
|
|
Total settlement costs
|
|
-
|
|
|
-
|
|
|
5,106
|
|
|
-
|
|
Acquisition related charges:
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
729
|
|
|
-
|
|
|
8,261
|
|
|
-
|
|
Research and development
|
|
407
|
|
|
290
|
|
|
1,047
|
|
|
1,893
|
|
Sales and marketing
|
|
-
|
|
|
-
|
|
|
206
|
|
|
450
|
|
General and administrative
|
|
85
|
|
|
742
|
|
|
6,746
|
|
|
742
|
|
Total acquisition related charges
|
|
1,221
|
|
|
1,032
|
|
|
16,260
|
|
|
3,085
|
|
Impairment loss on equity investment in a private company
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,189
|
|
Tax effects and adjustments
|
|
(585
|
)
|
|
-
|
|
|
(207
|
)
|
|
-
|
|
Non-GAAP net income
|
|
$
|
46,193
|
|
|
$
|
36,278
|
|
|
$
|
128,164
|
|
|
$
|
100,986
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP gross profit to
non-GAAP:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
224,211
|
|
|
$
|
171,377
|
|
|
$
|
635,822
|
|
|
$
|
481,200
|
|
GAAP gross profit
|
|
146,020
|
|
|
122,248
|
|
|
407,343
|
|
|
343,806
|
|
GAAP gross margin
|
|
65.1
|
%
|
|
71.3
|
%
|
|
64.1
|
%
|
|
71.4
|
%
|
Share-based compensation expense
|
|
627
|
|
|
592
|
|
|
1,773
|
|
|
1,749
|
|
Amortization of acquired intangibles
|
|
13,519
|
|
|
2,074
|
|
|
37,479
|
|
|
5,621
|
|
Acquisition related charges
|
|
729
|
|
|
-
|
|
|
8,261
|
|
|
-
|
|
Non-GAAP gross profit
|
|
$
|
160,895
|
|
|
$
|
124,914
|
|
|
$
|
454,856
|
|
|
$
|
351,176
|
|
Non-GAAP gross margin
|
|
71.8
|
%
|
|
72.9
|
%
|
|
71.5
|
%
|
|
73.0
|
%
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP operating expenses to
non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
131,520
|
|
|
$
|
101,621
|
|
|
$
|
390,114
|
|
|
$
|
288,610
|
|
Share-based compensation expense
|
|
(16,949
|
)
|
|
(12,238
|
)
|
|
(52,163
|
)
|
|
(36,085
|
)
|
Amortization of acquired intangibles
|
|
(2,425
|
)
|
|
(390
|
)
|
|
(6,067
|
)
|
|
(1,561
|
)
|
Settlement costs
|
|
-
|
|
|
-
|
|
|
(5,106
|
)
|
|
-
|
|
Acquisition related charges
|
|
(492
|
)
|
|
(1,032
|
)
|
|
(7,999
|
)
|
|
(3,085
|
)
|
Non-GAAP operating expenses
|
|
$
|
111,654
|
|
|
$
|
87,961
|
|
|
$
|
318,779
|
|
|
$
|
247,879
|
|
|
Mellanox Technologies, Ltd. Reconciliation of
Non-GAAP Adjustments (in thousands, except per share
data, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP income from operations to non-GAAP:
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
$
|
14,500
|
|
|
$
|
20,627
|
|
|
$
|
17,229
|
|
|
$
|
55,196
|
|
Share-based compensation expense
|
|
17,576
|
|
|
12,830
|
|
|
53,936
|
|
|
37,834
|
|
Settlement costs
|
|
-
|
|
|
-
|
|
|
5,106
|
|
|
-
|
|
Amortization of acquired intangibles
|
|
15,944
|
|
|
2,464
|
|
|
43,546
|
|
|
7,182
|
|
Acquisition related charges
|
|
1,221
|
|
|
1,032
|
|
|
16,260
|
|
|
3,085
|
|
Non-GAAP income from operations
|
|
$
|
49,241
|
|
|
$
|
36,953
|
|
|
$
|
136,077
|
|
|
$
|
103,297
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing GAAP diluted earnings per share
|
|
49,494
|
|
|
47,725
|
|
|
49,232
|
|
|
47,542
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Effect of dilutive securities under GAAP*
|
|
(1,109
|
)
|
|
(1,142
|
)
|
|
(1,349
|
)
|
|
(1,384
|
)
|
Total options vested and exercisable
|
|
1,265
|
|
|
1,644
|
|
|
1,265
|
|
|
1,644
|
|
Shares used in computing non-GAAP diluted earnings per share
|
|
49,650
|
|
|
48,227
|
|
|
49,148
|
|
|
47,802
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net income per share
|
|
$
|
0.24
|
|
|
$
|
0.42
|
|
|
$
|
0.19
|
|
|
$
|
1.05
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
0.35
|
|
|
0.27
|
|
|
1.10
|
|
|
0.79
|
|
Amortization of acquired intangibles
|
|
0.32
|
|
|
0.05
|
|
|
0.89
|
|
|
0.15
|
|
Settlement costs
|
|
-
|
|
|
-
|
|
|
0.10
|
|
|
-
|
|
Acquisition related charges
|
|
0.03
|
|
|
0.02
|
|
|
0.33
|
|
|
0.06
|
|
Impairment loss on equity investment in a private company
|
|
-
|
|
|
-
|
|
|
-
|
|
|
0.07
|
|
Tax effects and adjustments
|
|
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
Effect of dilutive securities under GAAP*
|
|
0.02
|
|
|
0.02
|
|
|
0.07
|
|
|
0.06
|
|
Total options vested and exercisable
|
|
(0.02
|
)
|
|
(0.03
|
)
|
|
(0.07
|
)
|
|
(0.07
|
)
|
Non-GAAP diluted net income per share
|
|
$
|
0.93
|
|
|
$
|
0.75
|
|
|
$
|
2.61
|
|
|
$
|
2.11
|
|
* This adjustment adds back the GAAP effect of additional
ordinary shares that would have been outstanding if the dilutive
potential ordinary shares from stock options had been issued under the
Treasury method.
|
|
|
|
|
Mellanox Technologies, Ltd.
Condensed Consolidated Balance Sheets
(in thousands, unaudited)
|
|
|
|
|
|
|
|
September 30, 2016
|
|
December 31, 2015
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
55,455
|
|
|
$
|
263,199
|
|
Short-term investments
|
|
236,934
|
|
|
247,314
|
|
Accounts receivable, net
|
|
133,135
|
|
|
84,273
|
|
Inventories
|
|
61,910
|
|
|
62,473
|
|
Other current assets
|
|
20,038
|
|
|
19,979
|
|
Total current assets
|
|
507,472
|
|
|
677,238
|
|
Property and equipment, net
|
|
113,621
|
|
|
100,018
|
|
Severance assets
|
|
16,429
|
|
|
9,514
|
|
Intangible assets, net
|
|
288,722
|
|
|
32,154
|
|
Goodwill
|
|
476,037
|
|
|
200,743
|
|
Deferred taxes and other long-term assets
|
|
32,763
|
|
|
33,715
|
|
Total assets
|
|
$
|
1,435,044
|
|
|
$
|
1,053,382
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
50,450
|
|
|
$
|
44,600
|
|
Accrued liabilities
|
|
90,437
|
|
|
74,787
|
|
Deferred revenue
|
|
23,400
|
|
|
17,743
|
|
Current portion of term debt
|
|
20,065
|
|
|
-
|
|
Total current liabilities
|
|
184,352
|
|
|
137,130
|
|
Accrued severance
|
|
20,583
|
|
|
12,464
|
|
Deferred revenue
|
|
15,507
|
|
|
12,439
|
|
Term debt
|
|
228,850
|
|
|
-
|
|
Other long-term liabilities
|
|
29,356
|
|
|
24,668
|
|
Total liabilities
|
|
478,648
|
|
|
186,701
|
|
Shareholders' equity:
|
|
|
|
|
Ordinary shares
|
|
207
|
|
|
200
|
|
Additional paid-in capital
|
|
761,374
|
|
|
684,824
|
|
Accumulated other comprehensive income (loss)
|
|
1,966
|
|
|
(1,669
|
)
|
Retained earnings
|
|
192,849
|
|
|
183,326
|
|
Total shareholders' equity
|
|
956,396
|
|
|
866,681
|
|
Total liabilities and shareholders' equity
|
|
$
|
1,435,044
|
|
|
$
|
1,053,382
|
|
|
|
|
Mellanox Technologies, Ltd.
Condensed Consolidated Statement of Cash Flows
(in thousands, unaudited)
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
2016
|
|
2015
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
9,523
|
|
|
$
|
49,696
|
|
Adjustments to reconcile net income to net cash provided by
operating activities, net of effects from acquired company:
|
|
|
|
|
Depreciation and amortization
|
|
73,264
|
|
|
30,464
|
|
Deferred income taxes
|
|
1,266
|
|
|
134
|
|
Share-based compensation expense
|
|
53,936
|
|
|
37,834
|
|
Gain on investments
|
|
(1,190
|
)
|
|
(2,193
|
)
|
Impairment of equity investment in a private company
|
|
-
|
|
|
3,189
|
|
Changes in assets and liabilities:
|
|
|
|
|
Accounts receivable, net
|
|
(32,698
|
)
|
|
229
|
|
Inventory
|
|
12,624
|
|
|
(23,988
|
)
|
Prepaid expenses and other assets
|
|
5,343
|
|
|
(504
|
)
|
Accounts payable
|
|
4,876
|
|
|
2,119
|
|
Accrued liabilities and other payables
|
|
15,132
|
|
|
18,817
|
|
Net cash provided by operating activities
|
|
142,076
|
|
|
115,797
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Purchase of severance-related insurance policies
|
|
(865
|
)
|
|
(563
|
)
|
Purchase of short term investments
|
|
(218,642
|
)
|
|
(219,459
|
)
|
Proceeds from sale of short term investments
|
|
209,456
|
|
|
148,697
|
|
Proceeds from maturities of short term investments
|
|
130,187
|
|
|
62,144
|
|
Restricted cash
|
|
-
|
|
|
3,604
|
|
Purchase of property and equipment
|
|
(32,748
|
)
|
|
(36,972
|
)
|
Purchase of intangible finite-lived assets
|
|
(6,060
|
)
|
|
(210
|
)
|
Purchase of equity investments in private companies
|
|
(1,284
|
)
|
|
-
|
|
Acquisition, net of cash acquired $87.5 million
|
|
(698,501
|
)
|
|
-
|
|
Net cash used in investing activities
|
|
(618,457
|
)
|
|
(42,759
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Proceeds from term debt
|
|
280,000
|
|
|
-
|
|
Principal payments on term debt
|
|
(27,000
|
)
|
|
-
|
|
Term debt issuance costs
|
|
(5,521
|
)
|
|
-
|
|
Principal payments on capital lease obligations
|
|
(491
|
)
|
|
(831
|
)
|
Proceeds from issuance of common stock under employee stock plans
|
|
21,649
|
|
|
16,978
|
|
Net cash provided by financing activities
|
|
268,637
|
|
|
16,147
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
(207,744
|
)
|
|
89,185
|
|
Cash and cash equivalents at beginning of period
|
|
263,199
|
|
|
51,326
|
|
Cash and cash equivalents at end of period
|
|
$
|
55,455
|
|
|
$
|
140,511
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161027006668/en/
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