Download presentation
Presentation is loading. Please wait.
Published byJeremy Tyler Modified over 9 years ago
1
Second Quarter Results Ended June 30, 2015
2
This presentation contains statements, including statements about future plans and expectations, which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are generally stated in terms of the Company’s plans, expectations and intentions. These statements are based on the current beliefs, expectations and assumptions of the Company’s management and the current economic environment. Forward looking statements are inherently subject to significant economic, competitive and other uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these statements are not guarantees of future performance. There are or will be important known and unknown factors and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking statements. These factors, include, but are not limited to, risks associated with the global economic environment on the Company’s customer base (particularly financial services firms) potentially impacting our business and financial condition; competition; changes in technology and market requirements; decline in demand for the Company's products; inability to timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements; and the effect of newly enacted or modified laws, regulation or standards on the Company and its products; and other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange Commission (the “SEC”). You are encouraged to carefully review the section entitled “Risk Factors” in our latest Annual Report on Form 20-F and in our other relevant filings with the SEC for additional information regarding these and other factors and uncertainties that could affect our future performance, and undue reliance should not be placed upon these statements. The forward-looking statements contained in this presentation are made as of the date hereof, and the Company undertakes no obligation to update or revise them, except as required by law. Forward Looking Statements Disclaimer
3
Explanation of Non-GAAP measures Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude: amortization of acquired intangible assets, re-organization expenses, restructures expenses, share-based compensation, certain business combination accounting entries, settlement and related expenses and tax adjustment re non-GAAP adjustments. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Business combination accounting rules requires us to recognize a legal performance obligation related to a revenue arrangement of an acquired entity. The amount assigned to that liability should be based on its fair value at the date of acquisition. The non- GAAP adjustment is intended to reflect the full amount of such revenue. We believe this adjustment is useful to investors as a measure of the ongoing performance of our business. We believe these non-GAAP financial measures provide consistent and comparable measures to help investors understand our current and future operating cash flow performance. These non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Reconciliation between results on a GAAP and non-GAAP basis is provided in a table immediately following the Consolidated Statements of Income.
4
Q2 2015 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
5
5 to $0.70; high end of guidance 21% increase in Q2 EPS to $0.70; high end of guidance Q2 operating margin Q2 operating margin increased to 22.3% compared to 18.9% last year and Strong Q2 cash flow more than double compared to last year Strong Q2 cash flow increased to $57M, more than double compared to last year Q2 2015 Highlights* Product revenue growth of 12% Americas revenue; 14%, double digit growth fourth quarter in a row grew 14%, double digit growth fourth quarter in a row Increased full year 2015 EPS guidance to $235M; 9% revenue growth excluding FX impact 6.0% Q2 revenue growth to $235M; 9% revenue growth excluding FX impact Q2 gross margin Q2 gross margin increased to 68.7% compared to 67.3% last year * All numbers, except cash flow, are Non-GAAP ** All numbers, except cash flow, are excluding Intelligence division *** All numbers include Physical Security division
6
Q2 2015 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
7
Good Growth and Execution Q2 2015 REVENUES (Non-GAAP, $M ) EARNINGS PER SHARE (Non-GAAP, $) Excluding currency impact, revenue growth would have been 9% Strong growth in product revenue Strong growth in EPS due to revenue growth, improved gross margin and continued successful execution of operational plan Excellent operating leverage * All numbers exclude Intelligence division and include Physical Security division
8
8 GAAP and Non-GAAP Income Statement – Q2 2015 $M (except EPS)Q2 2015Q2 2014 GAAP revenue234.7221.3 Valuation adjustment on acquired deferred service revenue0.10.3 Non-GAAP revenues234.8221.6 GAAP Cost of revenue80.982.8 Amortization of acquired intangible assets on cost of product(6.8)(8.3) Cost of product revenue adjustment(0.1) Cost of services revenue adjustment(0.5)(1.9) Non-GAAP cost of revenue73.572.5 GAAP gross profit153.7138.5 Gross profit adjustments7.510.5 Non-GAAP gross profit161.2149.0 GAAP operating expenses118.4124.8 Research and development(0.3)(1.0) Sales and marketing(2.5)(3.5) General and administrative(2.7)(4.5) Amortization of acquired intangible assets(3.7)(5.4) Acquisition related expenses-(0.2) Settlement and related expenses(0.4)- Restructuring expenses-(3.1) Non-GAAP operating expenses108.8107.1 ** Errors due to rounding * All numbers include Physical Security division
9
9 $M (except EPS)Q2 2015Q2 2014 GAAP taxes on income7.22.4 Tax adjustment re non-GAAP adjustments2.94.8 Non-GAAP taxes on income10.17.2 GAAP net income (loss) from continuing operations28.711.9 Valuation adjustment on acquired deferred revenue0.10.3 Amortization of acquired intangible assets10.513.7 Share-based compensation6.17.1 Re-organization expenses-3.9 Acquisition related expenses-0.2 Restructuring expenses-3.1 Settlement and related expenses0.4- Tax adjustments re non-GAAP adjustments(2.8)(4.8) Non-GAAP net income from continuing operations43.035.3 GAAP diluted earnings (loss) per share from continuing operations0.470.19 Non-GAAP diluted earnings per share from continuing operations0.700.58 ** Errors due to rounding GAAP and Non-GAAP Income Statement – Q2 2015 (cont.) * All numbers include Physical Security division
10
Revenue Breakdown by Region (Non-GAAP) Q2 2015 AMERICAS $164M, +14% YoY 70% APAC $23M, 1% YoY 10% EMEA $48M, -12% YoY 20% * All numbers exclude Intelligence division and include Physical Security division EMEA and APAC negatively impacted by currency exchange rates
11
Revenue Breakdown by Business Unit (Non-GAAP) Q2 2015 CUSTOMER INTERACTIONS $144M, +0% YoY 62% SECURITY $34M, +17% YoY 14% FINANCIAL CRIME & COMPLIANCE $57M, +20% YoY 24% * All numbers exclude Intelligence division and include Physical Security division
12
Gross Margin Q2 2015 (Non-GAAP) Gross Margin 68.7%| +140bp Product Margin 84.2%| +100bp Services Margin 60.6%| +100bp Gross margin expansion is the result of an increase in product revenue and favorable product mix Product margin increase was the result of an increase in product revenue Increase in service margin is the result of improved effiiciencies * All numbers exclude Intelligence division and include Physical Security division
13
Continued Operating Margin Improvement Q2 2015 (Non-GAAP) Operating margin improvement is a result of an increase in gross margin and further progress in expenses management improvement Excellent operating leverage * All numbers exclude Intelligence division and include Physical Security division
14
Cost Ratio – Increased Operating Efficiency Q2 2015 (Non-GAAP) R&D As % of revenue S&M As % of revenue G&A As % of revenue Operating expenses decreased as a percentage of revenue, reflecting further progress in the Company’s operational plan to improve efficiency and profitability * All numbers exclude Intelligence division and include Physical Security division
15
Analytic Applications As % of new bookings Analytics applications are the growth driver of the business. In Q2 2015 Analytics reached nearly 50% of new business. * All numbers include Physical Security division
16
Q2 2015 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
17
17 Balance Sheet June 30, 2015 Assets ($M)06/30/201512/31/2014 Cash and cash equivalents236.3187.5 Short term investments70.365.7 Trade receivables143.9166.0 Other receivables and prepaid expenses 40.933.5 Inventories11.610.5 Deferred tax assets22.8 Current assets of discontinued operation 41.420.3 Total current assets567.3506.4 Long term Investments322.1246.7 Other long term assets31.229.9 Property and equipment40.341.0 Other Intangible assets90.7112.1 Goodwill689.4689.0 LT assets of discontinued operation -16.9 Total Assets1,741.11,642.1 Equity & Liabilities ($M)06/30/201512/31/2014 Trade payables16.610.9 Deferred revenue and advances from customers 185.8134.8 Accrued expenses and other liabilities 194.0200.2 Current liabilities of discontinued operation 34.132.3 Current liabilities430.6378.2 Deferred tax liabilities18.623.7 Other long term liabilities21.821.9 LT liabilities of discontinued operation -4.8 Total long term liabilities40.450.4 Equity1,270.01,213.5 Equity & Liabilities1,741.11,642.1 ** Errors due to rounding * All numbers include Physical Security division
18
18 Strong Cash Flow From Operations Q2 2015 $MQ2 2015Q2 2014 %∆ Cash flow from operations57.025.9120% - Capital expenditure4.7 - Cash flow from operations after capex52.321.2147% Cash flow from operation after capex as % of revenue22.3%9.6%12.7pp Cash conversion rate *1.20.6100% Days sales outstanding (DSO) **5363 * Cash Conversion Rate = (Cash Flow from Operations after CAPEX / Non-GAAP Net Income ) ** All numbers, except cash flow, exclude the Intelligence division *** All numbers include Physical Security division
19
19 Cash Movement and Liquidity June 30, 2015 1)Total Liquidity = Cash and Cash Equivalents + Current Investments + Long Term Investments Other $12M
20
Q2 2015 Highlights Income Statement Balance Sheet and Cash Flow Analysis Outlook
21
Outlook (Non-GAAP) Previous Q3 2015 Inc. Physical Security Current Q3 2015 Ex. Physical Security Revenue ($M)236-246215-225 EPS ($)0.68-0.740.65-0.71 Previous FY 2015 Inc. Physical Security Current FY 2015 Ex. Physical Security Revenue ($M)985-1,005914-934 EPS ($)3.04-3.152.97-3.08 The outlook is provided as of August 3 2015. There is no guarantee that the Company will change or update these figures in this presentation should a need arise in the future to update the outlook. This is in addition to the forward-looking statements disclaimer at the beginning of the presentation. * All numbers exclude Intelligence and Physical Security divisions Physical Security Divestiture On August 3, 2015 the company announced the divestiture of its Physical Security division. Therefore, beginning in the third quarter of 2015, the company will present its results from continued operations on a pro forma basis with the Physical Security business unit as a discontinued operation. The company is therefore revising its guidance to exclude the Physical Security business unit’s projected contribution from third quarter and full-year non-GAAP total revenues and non-GAAP fully diluted earnings per share.
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.