UPDATE: Callidus Software Announces Fourth Quarter and Full Year 2011 ResultsQ4 Revenues of $22.5 Million and Full Year Revenues of $83.8 Million Both Up 18% Over 2010; Q4 SaaS Revenue Up 42% Year Over Year; Q4 SaaS Billings Up 41% Year Over Year; Record Full Year Recurring Revenues Up 19% Year Over Year
PLEASANTON, CA -- (Marketwire - February 08, 2012) - Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management (SPM), today announced financial results for the fourth quarter and fiscal year ended December 31, 2011.
"For the fourth quarter, we posted 42% year over year growth in SaaS revenue and 41% year over year growth in SaaS billings," said Leslie Stretch, President and CEO, Callidus Software. "We achieved sequential increases in total revenues for the eighth consecutive quarter and non-GAAP profitability for the sixth consecutive quarter. We met our targeted 60% Non-GAAP gross margin and gained a record number of 103 new customers in the fourth quarter. As we enter 2012 with the broadest SaaS sales effectiveness suite in the market, we are well positioned to drive future growth and recurring gross margin expansion."
Financial Highlights for the Fourth Quarter 2011
- Total revenue was $22.5 million for the fourth quarter, representing an increase of 18% compared to the same quarter last year. Total recurring revenues, which include SaaS revenues and maintenance and support, were $16.9 million, up 19% compared to the fourth quarter of 2010. SaaS revenues of $12.7 million were up 42% while maintenance and support of $4.3 million were down 20% as compared to the fourth quarter of 2010. Service revenues were $4.9 million, up 13% while license revenues were $0.7 million, up from $0.5 million both as compared to the fourth quarter of 2010.
- Total GAAP gross margin was 45% for the fourth quarter consistent with the same quarter in 2010. Non-GAAP gross margin was 52% for the fourth quarter, up from 46% in the fourth quarter of 2010. Non-GAAP gross margin excludes $1.3 million of stock-based compensation expense and $383,000 of amortization of acquired intangibles.
- Fourth quarter non-GAAP recurring revenue gross margins which exclude $816,000 of stock-based compensation and $383,000 of amortization of acquired intangibles were 60%, up from 53% for the fourth quarter of 2010.
- GAAP operating expenses were $15.3 million for the fourth quarter, up $5.3 million or 53% from the same quarter in 2010.
- Non-GAAP operating expenses for the fourth quarter of 2011 were $11.4 million, up $3.0 million or approximately 36% from the fourth quarter of 2010. Non-GAAP operating expenses exclude $513,000 of restructuring expense, $2.1 million of stock-based compensation expense, $517,000 of acquisition-related expense, $369,000 of patent litigation cost and $333,000 of amortization of acquired intangible assets.
- GAAP net loss was $3.6 million, or ($0.11) per share, for the quarter, which included $3.4 million of stock-based compensation expense, $513,000 of restructuring expense, $716,000 amortization of acquired intangible assets, $810,000 convertible note related items, $369,000 patent litigation cost, $517,000 acquisition related expense and a tax benefit of $2.4 million due to the recognition of deferred tax liabilities related to the intangible assets from our acquisition during the fourth quarter. This compares to a GAAP net loss of $1.5 million, or ($0.04) per share, for the fourth quarter of 2010, which included $1.4 million of stock-based compensation expense, $35,000 of restructuring expense, $157,000 of amortization of acquired intangible assets, $160,000 for impairment of an acquired intangible asset, and $94,000 of patent litigation cost.
- Non-GAAP net income was $0.3 million, or $0.01 per fully diluted share, for the quarter, compared to $0.4 million, or $0.01 per fully diluted share, for the same period last year. The company's non-GAAP results exclude the effects of $3.4 million of stock-based compensation expense, $2.4 million of tax benefit recognized in the quarter, $716,000 of amortization of acquired intangibles, $517,000 of acquisition related expenses, $369,000 of patent litigation costs, $810,000 of convertible note related items, and $513,000 of restructuring expense.
- Cash generated from operations for the fourth quarter was $2.2 million.
Financial Highlights for the Full Fiscal Year 2011
- Total revenue for the full fiscal year was $83.8 million, up 18% from $70.9 million in 2010. Recurring revenues were $63.0 million, up 19% over 2010. SaaS revenues of $45 million were up 37% while maintenance and support of $18.0 million was down 10% as compared to 2010. Services revenues were up 16% year over year to $17.5 million, and license revenues were up 18% year over year to $3.3 million.
- GAAP net loss was $15.4 million, or ($0.47) per share, for the full year, which included $12.3 million of stock-based compensation expense, $649,000 restructuring expense, $1.6 million of amortization of acquired intangible assets, $1.4 million convertible note related items, $1.4 million patent litigation cost, $1.6 million acquisition related expense, an impairment on marketable securities of $375,000 and a tax benefit of $3.0 million due to the recognition of deferred tax liabilities related to the intangible assets from our acquisitions during the year. This compares to GAAP net loss of $12.7 million, or ($0.40) per share, for the full year of 2010, which included $6.1 million of stock-based compensation expense, $1.7 million restructuring expense, $631,000 of amortization of acquired intangible assets, $160,000 for impairment of an acquired intangible asset, $118,000 of patent litigation costs, $122,000 acquisition related expense and a tax benefit of $614,000 due to the recognition of deferred tax liabilities related to the intangible assets from our acquisition during the year.
- Non-GAAP net income was $1.0 million, or $0.02 per share, for the full year, compared to a non-GAAP net loss of $4.6 million, or ($0.15) per share, in 2010. Non-GAAP net loss/income excludes $12.3 million of stock-based compensation expense, $3.0 million of tax benefits, $1.6 million of acquisition related expenses, $1.4 million of patent litigation costs, $1.4 million of convertible note related items, $649,000 of restructuring expense, $1.6 million of amortization of acquired intangible assets, and $375,000 of impairment on marketable securities.
- Cash generated from operations for the year 2011 was $146,000.
Business Highlights for the Fourth Quarter 2011
- Acquired a leader in SaaS-based product configuration, pricing, quoting, and proposals management, Webcom Inc. Webcom provides a 100% multi-tenant cloud solution that specializes in boosting sales through faster, more accurate quotes and collaborative-based selling.
- Announced the launch of Callidus' new Sales Selector solution, a next-generation cloud and mobile sales video interview and assessments application. Sales Selector delivers a unique combination of online video interviewing, assessment testing, and social collaboration designed to enable sales managers to rapidly evaluate candidates based on selling technique, sales temperament, and proven performance.
- Sponsored a number of industry events, including the Sales Performance Management India 2011 Conference, held November 24-25 in Mumbai, India; the 2011 IDC Asia Pacific Telecom Summit, held November 10 in Singapore; the 7th Annual Insurance Executives' Summit, held November 8-9 in Seoul, South Korea; the DevLearn 2011 Conference and Expo, held November 2-4 in Las Vegas, Nevada; and the Sales 2.0 Conference, held October 17-18 in San Francisco, California, where President and CEO Leslie Stretch delivered the keynote address on sales effectiveness.
- Announced the hosting of C3 2012 (Callidus Customer Connections), Callidus' own annual conference of customers, partners, and industry thought leaders, held May 6-8, 2012, at the Aria Resort in Las Vegas, Nevada. The theme for the conference -- Join the Sales Revolution -- highlights the focus of the event: helping customers explore new cloud, mobile and social technologies that underpin today's most successful sales effectiveness missions across the globe.
- Received the highest possible ratings across recent leading analyst reports. Callidus received a "Strong Positive" rating in the latest MarketScope for Insurance Incentive Compensation Management Applications by Gartner, Inc. Callidus was named the Best Software-as-a-Service (SaaS) winner at the 2012 Cloud Awards. Callidus was named Company of the Year in Computer Software in the Eighth Annual International Stevie Awards. Callidus customers were found to out-perform best in class sales organizations by the Aberdeen Group in their study, "Sales Performance Management 2012: CallidusCloud™ Customers Drive Best-in-Class Practices and Results." Rapid Intake was ranked among the top ten course authoring solution providers of 2012 by TrainingIndustry.com. And Callidus was recognized for excellence in customer support by the Technology Services Industry Association (TSIA) and Impact Learning Systems (ILS).
Business Highlights for the Full Year 2011
- Acquisitions: Throughout the fiscal year, Callidus acquired a number of strategic cloud leaders to broaden the value proposition of its sales performance management platform, expand its total addressable market, and increase its cross sell opportunities. They included:
- Fourth Quarter - Webcom Inc - cloud-based configuration, pricing and quoting
- Third Quarter - Rapid Intake - cloud and mobile collaborative, e-learning authoring
- Third Quarter - iCentera - cloud and mobile sales enablement portal
- Second Quarter - Litmus - mobile learning management system
- First Quarter - ForceLogix - cloud-based sales coaching solution
- First Quarter - Sales Force Assessments - cloud-based sales assessment solution integral to our Sales Selector product
- Customers: Signed a record number of new customers in the year, including Vodafone Egypt, DirectTV Latin America, Telefonica, Ericsson, Tata Communications, E-Plus Group, ARRIS Group, Spiceworks, Integra Telecom, ING Asia, American International Assurance Company (AIA), BlueCross BlueShield Michigan, Generali Indonesia, CNA, Novartis, MSD Malaysia, Zimmer, Eden Springs, LanDesk Software, Caterpillar, Ingersoll Rand, Amazon, Infoglobo, Schneider Electric, G4S, TASC (Total Administrative Services Corporation), First Data Corporation, Accelerated Payment Technologies, Payment Processing, Southwestern Company, Real Goods Solar, Energy Systems Group, iSymmetry, Fair Housing Solutions, Edgewords, Retail Advocacy Group, Coach Across America, Airsprint, Auqueo, Service Master, Aeroscout, Continental Casualty, TMG Health, Medica, St.Mary's Health Plans, Sentinel Security Life, Digital China, Attachmate, Quantum, Famous Grouse, Stanley Security Systems, Razorfish, Boston Wardrobes, Apollo Microwaves, Taylor Made Golf Products, Xstrata, Raytheon, and the Institute of Tropical Medicine.
- Cloud analytics: In the third quarter, Callidus announced the launch of Monaco Summer 2011, the latest version of its class-leading multi-tenant SaaS Sales Performance Management suite. The Summer 2011 version of Monaco included a new Modeling and Simulation module and Callidus' next generation Reporting & Analytics platform. Callidus also extended its sales performance analytics solution with the launch of its new Sales Performance Visualizer solution, powered by Panopticon, the leading provider of visual data analysis software for real-time and historical time series data.
- Strategic cloud partnerships: In the second quarter, Callidus expanded its SaaS footprint, signing a new strategic partnership with NetSuite, the industry's leading provider of cloud-based financials and ERP software suites. The partnership enables NetSuite customers to experience Callidus' Monaco On Demand SPM solution blended seamlessly with the NetSuite Financials/ERP/CRM Platform.
Financial Outlook
Total revenue for the first quarter of 2012 is expected to be between $22.0 million and $23.0 million. GAAP operating expenses are expected to be between $17.4 million and $18.4 million in the first quarter of 2012, which includes stock-based compensation of approximately $3.3 million, amortization of acquired intangibles of $1.0 million, and approximately $1.2 million in acquisition related expenses, and legal costs to defend our IP.
Conference Call
A conference call to discuss the fourth quarter and fiscal year 2011 results and outlook is scheduled for 1:30 p.m. Pacific Standard Time (PST) today. The conference call will be available via live webcast at the Investor Relations section of Callidus Software's website.
Webcast site: http://phoenix.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=146634&eventID=4695330
Dial-in number: 800.237.9752 (International callers: 617.847.8706)
Passcode: 12974719
Replay: A webcast replay will be available after 6:30 p.m. PT on February 8, 2012 through February 16, 2012. The webcast replay will be available at the Investor Relations section of our website under Calendar of Events. The time or manner of the webcast may change for technical or administrative reasons outside of Callidus Software's control.
About Callidus Software
Callidus Software Inc. (NASDAQ: CALD) is the market and technology leader in sales effectiveness and cloud computing. Our customers gain a competitive advantage by maximizing sales cost efficiencies and driving improvements in sales effectiveness. CallidusCloud's award-winning multi-tenant SaaS applications set the standard for performance management of a company's sales force and channel partners. Over 2.5 million users rely on our solutions to power their performance. For more information, please visit www.calliduscloud.com.
Note on Forward-Looking Statements
The forward-looking statements included in this press release, including discussion of our commercial prospects, estimates of first quarter 2012 total revenues, operating expenses, stock-based compensation expense, amortization of acquired intangibles, acquisition related expenses and patent litigation expenses reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, potential material fluctuations in financial results and future growth rates, decreases in customer spending, increased legal expense related to pending patent litigation, uncertainty regarding purchasing trends in the SPM market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, uncertainty regarding the demand for and profitability of our on-demand services, increased competition or new entrants in the marketplace, and other risks detailed in Callidus' reports filed with the Securities and Exchange Commission (SEC), including its Form 10-K for 2010 and the Form 10-Q for the first, second and third quarters of 2011, copies of which may be obtained by contacting Callidus Software's Investor Relations department at 925-251-2248, or from the Investor Relations section of Callidus Software's website (CallidusCloud Investor Relations). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.
Non-GAAP Financial Measures
Callidus has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP recurring revenue gross profit, operating expense, income (loss) from operations, net loss and net loss per share. Callidus uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors, as a supplement to GAAP measures, in evaluating Callidus' operating performance. Callidus believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in Callidus' industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures exclude stock-based compensation expense, restructuring expense, acquisition related expense, patent litigation cost, convertible note interest expense, amortization of convertible note issuance cost, gain from extinguishment of convertible note and amortization of acquired intangibles. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
©2012. Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, TrueComp Manager, ActekSoft, ACom3, ForceLogix, Salesforce Assessments, iCentera, Webcom, LeadFormix, Litmos, the Litmos logo, and Rapid Intake are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(unaudited)
Three months ended Year Ended
December 31, December 31,
-------------------------- --------------------------
2011 2010 2011 2010
------------ ------------ ------------ ------------
Revenues:
Recurring $ 16,936 $ 14,242 $ 63,002 $ 53,025
Services 4,880 4,328 17,465 15,061
License 730 540 3,304 2,794
------------ ------------ ------------ ------------
Total revenues 22,546 19,110 83,771 70,880
Cost of revenues:
Recurring (1) (2) 7,960 6,925 32,820 26,180
Services (1) 4,433 3,590 16,122 15,353
License 102 91 365 380
------------ ------------ ------------ ------------
Total cost of
revenues 12,495 10,606 49,307 41,913
------------ ------------ ------------ ------------
Gross profit 10,051 8,504 34,464 28,967
Operating expenses:
Sales and marketing
(1) (2) 5,900 4,054 20,203 16,229
Research and
development (1) 3,609 2,337 12,025 10,369
General and
administrative (1)
(2) (3) (4) 5,226 3,384 17,726 13,754
Restructuring 513 35 649 1,655
Impairment of
acquired
intangible asset - 160 - 160
------------ ------------ ------------ ------------
Total operating
expenses 15,248 9,970 50,603 42,167
------------ ------------ ------------ ------------
Operating loss (5,197) (1,466) (16,139) (13,200)
Interest and other
income (expense),
net (5) (6) (7) (8) (834) - (1,913) (14)
------------ ------------ ------------ ------------
Loss before benefit
for income taxes (6,031) (1,466) (18,052) (13,214)
Benefit for income
taxes (9) (2,398) (16) (2,677) (478)
------------ ------------ ------------ ------------
Net loss $ (3,633) $ (1,450) $ (15,375) $ (12,736)
============ ============ ============ ============
Basic net loss per
share $ (0.11) $ (0.04) $ (0.47) $ (0.40)
============ ============ ============ ============
Diluted net loss per
share $ (0.11) $ (0.04) $ (0.47) $ (0.40)
============ ============ ============ ============
Shares used in basic
per share
computation 32,760 32,336 32,809 31,536
============ ============ ============ ============
Shares used in
diluted per share
computation 32,760 32,336 32,809 31,536
============ ============ ============ ============
(1) Stock-based
compensation
included in amounts
above by category:
Cost of recurring $ 816 $ 154 $ 3,339 $ 548
Cost of services 441 136 1,495 735
Sales and marketing 667 202 1,987 961
Research and
development 454 279 1,548 991
General and
administrative 1,012 675 3,914 2,866
------------ ------------ ------------ ------------
Total stock-based
compensation 3,390 1,446 12,283 6,101
(2) Acquisition
related asset
amortization 716 157 1,569 631
(3) Acquisition
related expense 517 - 1,596 122
(4) Patent litigation
cost 369 94 1,441 118
(5) Interest expense
on convertible notes 682 - 1,947 -
(6) Amortization of
convertible note
issuance cost 139 - 355 -
(7) Gain on
extinguishment of
convertible note (11) - (915) -
(8) Impairment on
marketable
securities - - 375 -
(9) Tax benefit from
release of valuation
allowance (2,403) - (2,975) (614)
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
December 31, December 31,
Assets 2011 2010
------------ ------------
Current assets:
Cash and cash equivalents $ 17,383 $ 12,830
Short-term investments 35,406 17,873
Accounts receivable, net 21,643 19,908
Deferred income taxes 110 -
Prepaid and other current assets 5,831 4,441
------------ ------------
Total current assets 80,373 55,052
Long-term investments - 787
Property and equipment, net 6,772 8,016
Goodwill 24,200 8,031
Intangible assets, net 16,470 4,274
Deferred income taxes, noncurrent 206 1,645
Deposits and other assets 3,936 2,000
------------ ------------
Total assets $ 131,957 $ 79,805
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,515 $ 3,299
Accrued payroll and related expenses 4,278 2,859
Accrued expenses 10,163 6,169
Deferred income taxes 596 1,691
Deferred revenue 30,211 28,417
Capital lease obligations 1,196 1,119
------------ ------------
Total current liabilities 49,959 43,554
Deferred revenue, noncurrent 4,257 4,388
Deferred income taxes, noncurrent 197 -
Other liabilities 2,413 1,619
Capital lease obligations, noncurrent 915 2,162
Convertible notes 59,215 -
------------ ------------
Total liabilities 116,956 51,723
------------ ------------
Stockholders' equity:
Common stock 33 31
Additional paid-in capital 238,798 222,363
Treasury stock (14,430) -
Accumulated other comprehensive income (loss) 189 (98)
Accumulated deficit (209,589) (194,214)
------------ ------------
Total stockholders' equity 15,001 28,082
------------ ------------
Total liabilities and stockholders' equity $ 131,957 $ 79,805
============ ============
CALLIDUS SOFTWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Year Ended, December 31,
------------------------------
2011 2010
-------------- --------------
Cash flows from operating activities:
Net loss $ (15,375) $ (12,736)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation expense 3,098 2,565
Amortization of intangible assets 3,485 2,549
Provision for doubtful accounts and
service remediation reserves 48 198
Stock-based compensation 12,241 5,631
Stock-based compensation related to
acquisition 42 470
Impairment of acquired intangible assets - 160
Revaluation of acquisition contingent
consideration - 86
Release of valuation allowance (2,975) (614)
Leasehold improvement allowance - 961
Gain on disposal of property (6) -
Impairment of investments 375 -
Amortization of convertible note issuance
cost 355 -
Net amortization on investments 510 249
Put option loss - 52
Gain on extinguishment of debt (915) -
Gain on investments - (118)
Changes in operating assets and
liabilities:
Accounts receivable (36) (6,375)
Prepaid and other current assets 1,775 (631)
Other assets (2,667) (727)
Accounts payable 1,300 (10)
Accrued expenses (2,763) 473
Accrued payroll and related expenses 1,422 (1,029)
Accrued restructuring 146 151
Deferred revenue 62 10,564
Deferred income taxes 24 255
-------------- --------------
Net cash provided by operating activities 146 2,124
-------------- --------------
Cash flows from investing activities:
Purchases of investments (52,886) (20,943)
Proceeds from maturities and sale of
investments 35,511 25,015
Purchases of property and equipment (2,002) (2,779)
Proceeds from disposal of property and
equipment 6 23
Purchases of intangible assets (1,522) (1,832)
Acquisition, net of cash acquired (19,482) (1,922)
Change in restricted cash - (600)
-------------- --------------
Net cash used in investing activities (40,375) (3,038)
-------------- --------------
Cash flows from financing activities:
Net proceeds from issuance of common stock 5,556 3,926
Repurchases of common stock (14,430) -
Repurchase of common stock from employees
for payment of taxes on vesting of
restricted stock units (1,402) (554)
Payment of consideration related to
acquisition (1,210) -
Proceeds received from issuance of
convertible notes, net of issuance costs 76,854 -
Repayment of debt assumed through
acquisition - (899)
Payment of principle under capital lease (1,170) (244)
Repurchase of convertible notes (19,448) -
-------------- --------------
Net cash provided by financing activities 44,750 2,229
-------------- --------------
Effect of exchange rates on cash and cash
equivalents 32 (50)
-------------- --------------
Net increase in cash and cash equivalents 4,553 1,265
Cash and cash equivalents at beginning of
period 12,830 11,565
-------------- --------------
Cash and cash equivalents at end of period $ 17,383 $ 12,830
============== ==============
CALLIDUS SOFTWARE INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except for percentages and per share data)
(unaudited)
Three months ended Year Ended
December 31, December 31,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Non-GAAP gross profit reconciliation
Gross profit $ 10,051 $ 8,504 $ 34,464 $ 28,967
Profit margin, as a % of total
revenues 45% 45% 41% 41%
Add back:
Non-cash stock-based
compensation 1,257 290 4,834 1,283
Non-cash amortization of
acquired intangible assets 383 19 669 76
-------- -------- -------- --------
Non-GAAP gross profit $ 11,691 $ 8,813 $ 39,967 $ 30,326
-------- -------- -------- --------
Profit margin, as a % of total
revenues 52% 46% 48% 43%
Non-GAAP recurring revenue gross
profit reconciliation
Recurring revenue gross profit $ 8,976 $ 7,317 $ 30,182 $ 26,845
Recurring revenue profit margin,
as a % of recurring revenues 53% 51% 48% 51%
Add back:
Non-cash stock-based
compensation 816 154 3,339 548
Non-cash amortization of
acquired intangible assets 383 19 669 76
-------- -------- -------- --------
Non-GAAP Recurring revenue gross
profit $ 10,175 $ 7,490 $ 34,190 $ 27,469
-------- -------- -------- --------
Recurring revenue profit margin,
as a % of recurring revenues 60% 53% 54% 52%
Non-GAAP operating expense
reconciliation:
Operating Expenses $ 15,248 $ 9,970 $ 50,603 $ 42,167
Operating expenses, as a % of
total revenues 68% 52% 60% 59%
Add back:
Non-cash stock-based
compensation (2,133) (1,156) (7,449) (4,818)
Non-cash amortization of
acquired intangible assets (333) (138) (900) (555)
Acquisition related expense (517) - (1,596) (122)
Patent litigation cost (369) (94) (1,441) (118)
Restructuring (513) (35) (649) (1,655)
Impairment of acquired
intangible asset - (160) - (160)
-------- -------- -------- --------
Non-GAAP Operating Expenses $ 11,383 $ 8,387 $ 38,568 $ 34,739
-------- -------- -------- --------
Non-GAAP Operating expenses, as
a % of total revenues 50% 44% 46% 49%
CALLIDUS SOFTWARE INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except for percentages and per share data)
(unaudited)
Three months ended Year Ended
December 31, December 31,
------------------ ------------------
2011 2010 2011 2010
-------- -------- -------- --------
Non-GAAP operating income (loss)
reconciliation:
Operating loss $ (5,197) $ (1,466) $(16,139) $(13,200)
Operating loss, as a % of total
revenues -23% -8% -19% -19%
Add back:
Non-cash stock-based
compensation 3,390 1,446 12,283 6,101
Non-cash amortization of
acquired intangible assets 716 157 1,569 631
Acquisition related expenses 517 - 1,596 122
Patent litigation cost 369 94 1,441 118
Restructuring 513 35 649 1,655
Impairment of acquired
intangible asset - 160 - 160
-------- -------- -------- --------
Non-GAAP Operating income (loss) $ 308 $ 426 $ 1,399 $ (4,413)
-------- -------- -------- --------
Non-GAAP Operating income
(loss), as a % of total
revenues 1% 2% 2% -6%
Non-GAAP net loss reconciliation:
Net loss $ (3,633) $ (1,450) $(15,375) $(12,736)
Net loss, as a % of total
revenues -16% -8% -18% -18%
Add back:
Non-cash stock-based
compensation 3,390 1,446 12,283 6,101
Non-cash amortization of
acquired intangible assets 716 157 1,569 631
Acquisition related expenses 517 - 1,596 122
Patent litigation costs 369 94 1,441 118
Restructuring 513 35 649 1,655
Interest expense on convertible
notes 682 - 1,947 -
Gain on extinguishment of
convertible notes (11) - (915) -
Amortization of convertible note
issuance cost 139 - 355 -
Impairment of acquired
intangible asset - 160 - 160
Impairment on marketable
securities - - 375 -
Tax benefit from release of
valuation allowance (2,403) - (2,975) (614)
-------- -------- -------- --------
Non-GAAP Net income (loss) $ 279 $ 442 $ 950 $ (4,563)
-------- -------- -------- --------
Non-GAAP Net income (loss), as a
% of total revenues 1% 2% 1% -6%
Non-GAAP net income (loss) per share
reconciliation:
Net loss per basic and diluted share $ (0.11) $ (0.04) $ (0.47) $ (0.40)
Add back:
Non-cash stock-based
compensation 0.10 0.04 0.37 0.19
Non-cash amortization of
acquired intangible assets 0.02 - 0.05 0.02
Acquisition related expenses 0.02 - 0.05 -
Patent litigation costs 0.01 - 0.04 -
Restructuring 0.02 - 0.02 0.05
Interest expense on convertible
notes 0.02 - 0.06 -
Gain on extinguishment of
convertible notes - - (0.03) -
Amortization of convertible note
issuance cost - - 0.01 -
Impairment of acquired
intangible asset - 0.01 - 0.01
Impairment on marketable
securities - - 0.01 -
Tax benefit from release of
valuation allowance (0.07) - (0.09) (0.02)
-------- -------- -------- --------
Non-GAAP net income (loss) per basic
share $ 0.01 $ 0.01 $ 0.02 $ (0.15)
-------- -------- -------- --------
Non-GAAP net income (loss) per
diluted share $ 0.01 $ 0.01 $ 0.02 $ (0.14)
-------- -------- -------- --------
Basic and fully diluted shares
reconciliation:
Basic shares 32,760 32,336 32,809 31,536
-------- -------- -------- --------
Add back:
Weighted average effect of
dilutive securities 9,803 1,800 7,692 799
-------- -------- -------- --------
Diluted shares 42,563 34,136 40,501 32,335
-------- -------- -------- --------
Investor Relations Contact:
Linda Wells
415-445-3236
ir@callidussoftware.com
Press Contact:
Lorna Heynike
Callidus Software Inc.
925-251-2207
pr@callidussoftware.com
