Exhibit 99.1
![]() | For Immediate Release |
Editorial Contact: Daphne Kent
614-726-4787
daphne.kent@quest.com
Investor Contacts: Thomas Patterson
949-754-8336
thomas.patterson@quest.com
Stephen Wideman
949-754-8142
stephen.wideman@quest.com
QUEST SOFTWARE REPORTS FOURTH QUARTER AND FISCAL YEAR 2008 RESULTS
Company Posts $735 Million in Revenue for 2008;
Achieves Record Fourth Quarter Revenues of $201.6 Million
ALISO VIEJO, Calif., February 10, 2009– Quest Software, Inc. (Nasdaq: QSFT) today reported financial results for the fourth quarter and fiscal year ended December 31, 2008. Total revenues increased 8.0% year-over-year to $201.6 million in the fourth quarter of 2008 compared to fourth quarter 2007 revenue of $186.7 million. For the year, total revenues increased 16.5% to $735.4 million in fiscal 2008 compared to $631.0 million in fiscal 2007.
Quest’s cash and investments at December 31, 2008, totaled $260.4 million, a decrease of $114.4 million over the comparable balance at September 30, 2008. The quarter-over-quarter decrease in cash and investments is primarily due to our repurchase of 11,440,000 shares of common stock for $143.0 million (excluding related transaction costs). Quest generated cash flow from operations of $37.8 million in the fourth quarter of 2008.
“Quest has continued to show financial and product strength through 2008,” said Doug Garn, Quest’s president and CEO. “Our balance sheet remains strong, reflecting tight financial controls and net cash generated from operating activities in the year of $152 million. We made a number of strategic acquisitions during 2008 in key areas like Windows Management and Virtualization Management that position us to meet an even broader set of customer needs moving forward in 2009 and beyond.”
Quest Software Reports Fourth Quarter 2008 Results – page 2 of 11
GAAP Results
Quest Software’s net income for the fourth quarter of 2008 was $29.0 million, or $0.28 per fully diluted share. This compares to net income of $25.3 million, or $0.24 per share on a fully diluted basis, for the fourth quarter of 2007. Operating margins increased year-over-year from 12.2% to 19.7% in the fourth quarter, resulting in operating income of $39.6 million which compares to $22.8 million for the corresponding period in 2007. Net income for the year ended December 31, 2008 was $67.9 million, or $0.64 per fully diluted share, versus net income of $63.1 million, or $0.60 per fully diluted share, for fiscal 2007.
Non-GAAP Results
On a non-GAAP basis, net income for the fourth quarter of 2008 was $39.3 million, or $0.37 per fully diluted share. This compares to non-GAAP net income of $28.6 million, or $0.27 per share on a fully diluted basis, for the fourth quarter of 2007. The non-GAAP operating margin was 26.1% in the fourth quarter of 2008, resulting in non-GAAP operating income of $52.6 million, compared to non-GAAP operating margin and operating income of 20.3% and $38.0 million, respectively, for the corresponding period in 2007. For the year ended December 31, 2008 non-GAAP net income was $106.0 million, or $1.00 per fully diluted share. This compares to non-GAAP net income of $95.7 million, or $0.91 per fully diluted share, for the year ended December 31, 2007. The non-GAAP operating margin was 18.5% for fiscal 2008, resulting in non-GAAP operating income of $136.0 million, compared to non-GAAP operating margin of 18.8% and non-GAAP operating income of $118.7 million for fiscal 2007.
Non-GAAP results exclude the after-tax effects of amortization of intangible assets acquired with business combinations, share-based compensation expenses, expenses associated with our stock option investigation, impairment charges related to certain cost method investments and write off of acquired in-process research and development. A reconciliation of GAAP to non-GAAP financial results is included with this press release.
Quest Software’s management prepares and uses non-GAAP financial measures in the presentation of the Company’s results to provide a consistent understanding of its historical operating performance and comparisons with peer companies. Management believes that non-GAAP reporting provides a more meaningful representation of the Company’s on-going economic performance and therefore uses non-GAAP reporting internally to evaluate and manage the Company’s operations. By excluding charges such as those described above from its GAAP-based results, we believe these non-GAAP financial measures are more likely to facilitate investors’ understanding of the Company’s ongoing business operating results. These non-GAAP financial measures also facilitate comparisons to the operating results of the Company’s competitors and provide investors with greater transparency with respect to the supplemental information used by management in its operational and financial decision making.
Quest Software Reports Fourth Quarter 2008 Results – page 3 of 11
Fourth Quarter and Fiscal 2008 Conference Call Information
Quest Software will host a conference call today, Tuesday, February 10, 2009, at 2:00 p.m. Pacific Time, to discuss its results. A simultaneous Web cast of the conference call will be available on Quest Software’s Web site in the Investors – IR Events section atwww.quest.com. A Webcast replay will be available on the same Website through February 10, 2010. An audio replay of the conference call will also be available through February 17, 2009 by dialing (888) 203-1112 (from the U.S. or Canada) or 719-457-0820 (outside the U.S. and Canada), using confirmation code: 8630427.
About Quest Software, Inc.
Quest Software, Inc., a leading enterprise systems management vendor, delivers innovative products that help organizations get more performance and productivity from their applications, databases, Windows infrastructure and virtual environments. Quest also provides customers with client management through its ScriptLogic subsidiary and server virtualization management through its Vizioncore subsidiary. Through a deep expertise in IT operations and a continued focus on what works best, Quest helps more than 100,000 customers worldwide meet higher expectations for enterprise IT. Quest Software can be found in offices around the globe and atwww.quest.com.
# # #
Quest, Quest Software, and the Quest Software logo are trademarks or registered trademarks of Quest Software, Inc. in the United States of America and other countries. Other trademarks and registered trademarks are property of their respective owners.
Forward-Looking Statements
This release and the matters to be discussed on the conference call may include predictions, estimates and other information that might be considered forward-looking statements, including statements relating to expectations of future revenue and operating margin performance and other operating prospects. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ from those anticipated as a result of various factors, including: the impact of adverse changes in general economic conditions on our relationships with customers, strategic partners and vendors; reductions or delays in information technology spending; variations in demand or the size and timing of customer orders; competitive conditions in our various product areas; uncertainties relating to ongoing litigation arising from our stock option investigation; rapid technological change; risks associated with the development and market acceptance of new products and product strategies; disruptions caused by acquisitions of companies and/or technologies; fluctuating currency exchange rates and risks associated with international operations; the need to attract and retain qualified employees; and other risks inherent in software businesses. For a discussion of these and other related risks, please refer to our recent SEC
Quest Software Reports Fourth Quarter 2008 Results – page 4 of 11
filings, including our Annual Report on Form 10-K for the year ended December 31, 2007 and our Quarterly Reports on Form 10-Q for subsequent periods, which are available on the SEC's website atwww.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
Quest Software Reports Fourth Quarter 2008 Results – page 5 of 11
QUEST SOFTWARE, INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||||
Revenues: | |||||||||||||
Licenses | $ | 92,955 | $ | 98,948 | $ | 334,083 | $ | 308,652 | |||||
Services | 108,644 | 87,797 | 401,294 | 322,329 | |||||||||
Total revenues | 201,599 | 186,745 | 735,377 | 630,981 | |||||||||
Cost of revenues: | |||||||||||||
Licenses | 2,476 | 2,162 | 8,586 | 6,111 | |||||||||
Services | 15,489 | 15,091 | 62,060 | 55,173 | |||||||||
Amortization of purchased technology | 5,612 | 4,320 | 20,231 | 14,459 | |||||||||
Total cost of revenues | 23,577 | 21,573 | 90,877 | 75,743 | |||||||||
Gross profit | 178,022 | 165,172 | 644,500 | 555,238 | |||||||||
Operating expenses: | |||||||||||||
Sales and marketing | 77,889 | 80,752 | 312,493 | 275,037 | |||||||||
Research and development | 38,777 | 34,730 | 153,464 | 122,592 | |||||||||
General and administrative | 18,143 | 24,348 | 84,954 | 81,758 | |||||||||
Amortization of other purchased intangible assets | 3,572 | 2,279 | 11,302 | 7,345 | |||||||||
In-process research and development | — | 220 | 955 | 220 | |||||||||
Total operating expenses | 138,381 | 142,329 | 563,168 | 486,952 | |||||||||
Income from operations | 39,641 | 22,843 | 81,332 | 68,286 | |||||||||
Other income (expense), net | (3,355 | ) | 4,225 | 1,030 | 22,422 | ||||||||
Income before income tax provision | 36,286 | 27,068 | 82,362 | 90,708 | |||||||||
Income tax provision | 7,304 | 1,777 | 14,508 | 27,589 | |||||||||
Net income | $ | 28,982 | $ | 25,291 | $ | 67,854 | $ | 63,119 | |||||
Net income per share: | |||||||||||||
Basic | $ | 0.28 | $ | 0.25 | $ | 0.65 | $ | 0.62 | |||||
Diluted | $ | 0.28 | $ | 0.24 | $ | 0.64 | $ | 0.60 | |||||
Weighted average shares: | |||||||||||||
Basic | 103,781 | 101,819 | 104,192 | 101,819 | |||||||||
Diluted | 105,265 | 105,924 | 106,261 | 105,284 |
Quest Software Reports Fourth Quarter 2008 Results – page 6 of 11
Reconciliation of Non-GAAP Financial Measures to Comparable U.S. GAAP Measures (Unaudited)
The Company has provided a reconciliation of each non-GAAP financial measure used in this earnings release and related conference call and Web cast to the most directly comparable GAAP financial measure. These measures differ from GAAP in that they exclude amortization of intangible assets acquired with business combinations; share-based compensation expense; expenses, including indemnification advances, associated with ongoing legal matters arising from our stock option investigation; impairment charges related to certain cost method investments; write off of acquired in-process research and development; and the estimated tax effect related to each of these items. The Company’s basis for these adjustments is described below.
Quest Software’s management prepares and uses non-GAAP financial measures in the presentation of the Company’s results to provide a consistent understanding of its historical operating performance and comparisons with peer companies. Management believes that non-GAAP reporting provides a more meaningful representation of the Company’s on-going economic performance and therefore uses non-GAAP reporting internally to evaluate and manage the Company’s operations. The Company’s management believes that by excluding charges such as those described above from its GAAP-based results, these non-GAAP financial measures are more likely to facilitate investors’ understanding of the Company’s ongoing business operating results. These non-GAAP financial measures also facilitate comparisons to the operating results of the Company’s competitors and provide investors with greater transparency with respect to the supplemental information used by management in its operational and financial decision making.
Management excludes the expenses described above when evaluating the Company’s operating performance and believes that the resulting non-GAAP measures are useful to investors and financial analysts in assessing the Company’s operating performance due to the following factors:
• | The Company does not acquire businesses on a predictable cycle. The Company, therefore, believes that the presentation of non-GAAP measures that adjust for the impact of amortization and charges for acquired in-process research and development that are related to business combinations, provide investors and financial analysts with a consistent basis for comparison across accounting periods and, therefore, are useful to investors and financial analysts in helping them to better understand the Company's operating results and underlying operational trends. |
• | Amortization costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition. |
Quest Software Reports Fourth Quarter 2008 Results – page 7 of 11
• | Although share-based compensation is an important aspect of the compensation of the Company’s employees and executives, share-based compensation expense and its related tax impact because such charges are generally fixed at the time of grant, are then amortized over a period of several years after the grant of the share-based instrument and generally cannot be changed or influenced by management after the grant. |
• | Share-based compensation is not an expense that typically requires or will require cash settlement by the Company. |
• | Ongoing expenses associated with our stock option investigation include expenses incurred for outside legal fees and costs, consulting services and other professional fees, and indemnification expenses for current and former directors and officers. Because these expenses are non-recurring and unique to the stock option investigation, we believe they are not indicative of future operating results and that our investors benefit from an understanding of our operating results without giving effect to them. |
• | Management excludes impairment charges related to cost method investments in its analysis of ongoing business operations and believes the non-GAAP adjustment is beneficial to investors because it is a non-cash item that relates to an investment made in prior periods, and not central to the Company's current operations or revenue stream. The impairments are not indicative of future operating results and such disclosure allows comparability to prior periods. There is no trend of impairments as this expense is not generally known. |
• | The estimated income tax effects on the above items adjust the provision for income taxes to reflect the effect of the non-GAAP adjustments on non-GAAP operating income. |
These non-GAAP financial measures are not prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and may differ from the non-GAAP information used by other companies. There are significant limitations associated with the use of non-GAAP financial measures. The additional non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP (such as net income and earnings per share) and should not be considered measures of the Company’s liquidity. Furthermore, the Company in the future may exclude transaction costs and amortization related to new business combinations from financial measures that it releases, and the Company expects to continue to incur share-based compensation expenses.
Quest Software Reports Fourth Quarter 2008 Results – page 8 of 11
QUEST SOFTWARE, INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31, 2008 | Twelve Months Ended December 31, 2008 | |||||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||
Revenues: | ||||||||||||||||||||
Licenses | $ | 92,955 | $ | 92,955 | $ | 334,083 | $ | 334,083 | ||||||||||||
Services | 108,644 | 108,644 | 401,294 | 401,294 | ||||||||||||||||
Total revenues | 201,599 | 201,599 | 735,377 | 735,377 | ||||||||||||||||
Cost of revenues: | ||||||||||||||||||||
Licenses | 2,476 | (400 | ) (1) | 2,076 | 8,586 | (403 | ) (1) | 8,183 | ||||||||||||
Services | 15,489 | (192 | ) (2) | 15,297 | 62,060 | (877 | ) (2) | 61,183 | ||||||||||||
Amortization of purchased technology | 5,612 | (5,612 | ) | — | 20,231 | (20,231 | ) | — | ||||||||||||
Total cost of revenues | 23,577 | 17,373 | 90,877 | 69,366 | ||||||||||||||||
Gross profit | 178,022 | 184,226 | 644,500 | 666,011 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Sales and marketing | 77,889 | (1,292 | ) (2) | 76,597 | 312,493 | (6,829 | ) (2) | 305,664 | ||||||||||||
Research and development | 38,777 | (1,295 | ) (2) | 37,482 | 153,464 | (5,800 | ) (2) | 147,664 | ||||||||||||
General and administrative | 18,143 | (565 | ) (3) | 17,578 | 84,954 | (8,292 | ) (3) | 76,662 | ||||||||||||
Amortization of other purchased intangible assets | 3,572 | (3,572 | ) | — | 11,302 | (11,302 | ) | — | ||||||||||||
In-process research and development | — | — | 955 | (955 | ) (4) | — | ||||||||||||||
Total operating expenses | 138,381 | 131,657 | 563,168 | 529,990 | ||||||||||||||||
Income from operations | 39,641 | 52,569 | 81,332 | 136,021 | ||||||||||||||||
Other income (expense), net | (3,355 | ) | 2,001 | (5) | (1,354 | ) | 1,030 | 2,001 | (5) | 3,031 | ||||||||||
Income before income tax provision | 36,286 | 51,215 | 82,362 | 139,052 | ||||||||||||||||
Income tax provision | 7,304 | 4,620 | (6) | 11,924 | 14,508 | 18,558 | (6) | 33,066 | ||||||||||||
Net income | $ | 28,982 | $ | 39,291 | $ | 67,854 | $ | 105,986 | ||||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.28 | $ | 0.38 | $ | 0.65 | $ | 1.02 | ||||||||||||
Diluted | $ | 0.28 | $ | 0.37 | $ | 0.64 | $ | 1.00 | ||||||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 103,781 | 103,781 | 104,192 | 104,192 | ||||||||||||||||
Diluted | 105,265 | 105,265 | 106,261 | 106,261 |
(1) | Relates primarily to a $0.4 million impairment charge recorded in the three month period for a prepaid royalty with one of our cost method investment companies. |
(2) | Represents share-based compensation expense. |
(3) | Represents $0.3 million and $3.6 million in expenses related to our stock option investigation for the three and twelve months ended December 31, 2008, respectively, and $0.3 million and $4.7 million in share-based compensation expense for the three and twelve months ended December 31, 2008, respectively. |
(4) | Represents a one-time charge to write off in-process research and development acquired in May 2008. |
(5) | Represents the impairment of two of our cost method investments. |
(6) | Represents the tax effect of adjustments. |
Quest Software Reports Fourth Quarter 2008 Results – page 9 of 11
QUEST SOFTWARE, INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31, 2007 | Twelve Months Ended December 31, 2007 | |||||||||||||||||
GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||
Revenues: | ||||||||||||||||||
Licenses | $ | 98,948 | $ | 98,948 | $ | 308,652 | $ | 308,652 | ||||||||||
Services | 87,797 | 87,797 | 322,329 | 322,329 | ||||||||||||||
Total revenues | 186,745 | 186,745 | 630,981 | 630,981 | ||||||||||||||
Cost of revenues: | ||||||||||||||||||
Licenses | 2,162 | (1 | ) (1) | 2,161 | 6,111 | (5 | ) (1) | 6,106 | ||||||||||
Services | 15,091 | (255 | ) (1) | 14,836 | 55,173 | (1,029 | ) (1) | 54,144 | ||||||||||
Amortization of purchased technology | 4,320 | (4,320 | ) | — | 14,459 | (14,459 | ) | — | ||||||||||
Total cost of revenues | 21,573 | 16,997 | 75,743 | 60,250 | ||||||||||||||
Gross profit | 165,172 | 169,748 | 555,238 | 570,731 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Sales and marketing | 80,752 | (1,362 | ) (1) | 79,390 | 275,037 | (6,931 | ) (1) | 268,106 | ||||||||||
Research and development | 34,730 | (1,428 | ) (1) | 33,302 | 122,592 | (6,533 | ) (1) | 116,059 | ||||||||||
General and administrative | 24,348 | (5,270 | ) (2) | 19,078 | 81,758 | (13,873 | ) (2) | 67,885 | ||||||||||
Amortization of other purchased intangible assets | 2,279 | (2,279 | ) | — | 7,345 | (7,345 | ) | — | ||||||||||
In-process research and development | 220 | (220 | ) (3) | — | 220 | (220 | ) (3) | — | ||||||||||
Total operating expenses | 142,329 | 131,770 | 486,952 | 452,050 | ||||||||||||||
Income from operations | 22,843 | 37,978 | 68,286 | 118,681 | ||||||||||||||
Other income, net | 4,225 | 4,225 | 22,422 | 22,422 | ||||||||||||||
Income before income tax provision | 27,068 | 42,203 | 90,708 | 141,103 | ||||||||||||||
Income tax provision | 1,777 | 11,813 | (4) | 13,590 | 27,589 | 17,846 | (4) | 45,435 | ||||||||||
Net income | $ | 25,291 | $ | 28,613 | $ | 63,119 | $ | 95,668 | ||||||||||
Net income per share: | ||||||||||||||||||
Basic | $ | 0.25 | $ | 0.28 | $ | 0.62 | $ | 0.94 | ||||||||||
Diluted | $ | 0.24 | $ | 0.27 | $ | 0.60 | $ | 0.91 | ||||||||||
Weighted average shares: | ||||||||||||||||||
Basic | 101,819 | 101,819 | 101,819 | 101,819 | ||||||||||||||
Diluted | 105,924 | 105,924 | 105,284 | 105,284 |
(1) | Represents share-based compensation expense. |
(2) | Represents $4.8 million and $10.9 million in expenses related to our stock option investigation for the three and twelve months ended December 31, respectively, and $0.5 million and $3.0 million in share-based compensation expense for the three and twelve months ended December 31, 2007, respectively. |
(3) | Represents a one-time charge to write off in-process research and development acquired in November 2007. |
(4) | Represents the tax effect of adjustments. |
Quest Software Reports Fourth Quarter 2008 Results – page 10 of 11
QUEST SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS | ||||||
December 31, 2008 | December 31, 2007 | |||||
Current assets: | ||||||
Cash and cash equivalents | $ | 215,895 | $ | 235,568 | ||
Restricted cash | 2,425 | 48,924 | ||||
Short-term investments | 632 | 10,287 | ||||
Accounts receivable, net | 153,892 | 152,438 | ||||
Prepaid expenses and other current assets | 17,362 | 19,022 | ||||
Deferred income taxes | 18,460 | 11,014 | ||||
Total current assets | 408,666 | 477,253 | ||||
Property and equipment, net | 77,394 | 75,848 | ||||
Long-term investments | 41,410 | 70,936 | ||||
Intangible assets, net | 104,567 | 76,641 | ||||
Goodwill | 655,777 | 563,766 | ||||
Deferred income taxes | 31,032 | 36,661 | ||||
Other assets | 29,819 | 18,025 | ||||
Total assets | $ | 1,348,665 | $ | 1,319,130 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 3,798 | $ | 4,590 | ||
Accrued compensation | 45,079 | 46,437 | ||||
Other accrued expenses | 39,760 | 43,313 | ||||
Current portion of income taxes payable | 167 | 1,962 | ||||
Current portion of deferred revenue | 272,626 | 211,840 | ||||
Total current liabilities | 361,430 | 308,142 | ||||
Long-term liabilities: | ||||||
Long-term portion of deferred revenue | 66,086 | 73,820 | ||||
Long-term portion of income taxes payable | 40,863 | 37,130 | ||||
Other long-term liabilities | 3,545 | 2,712 | ||||
Total long-term liabilities | 110,494 | 113,662 | ||||
Shareholders’ equity | 876,741 | 897,326 | ||||
Total liabilities and shareholders’ equity | $ | 1,348,665 | $ | 1,319,130 | ||
Quest Software Reports Fourth Quarter 2008 Results – page 11 of 11
QUEST SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 28,982 | $ | 25,291 | $ | 67,854 | $ | 63,119 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization | 13,396 | 11,077 | 48,255 | 37,670 | ||||||||||||
Compensation expense associated with share-based payments | 2,800 | 3,495 | 17,106 | 17,455 | ||||||||||||
Deferred income taxes | (2,822 | ) | (13,051 | ) | (3,243 | ) | (18,201 | ) | ||||||||
Unrealized losses on long-term investments, net of gain from put options | 642 | — | 642 | — | ||||||||||||
Realized losses from sale of long-term investments and asset disposals | 666 | — | 666 | — | ||||||||||||
Impairment losses on cost method investments | 2,001 | — | 2,001 | — | ||||||||||||
Excess tax benefit related to share-based compensation | (87 | ) | — | (3,415 | ) | — | ||||||||||
Provision for bad debts | 602 | 206 | 1,358 | 302 | ||||||||||||
In-process research and development | — | 220 | 955 | 220 | ||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||||||
Accounts receivable | (44,578 | ) | (41,378 | ) | (6,915 | ) | (10,496 | ) | ||||||||
Prepaid expenses and other current assets | 603 | (3,960 | ) | 1,781 | (3,670 | ) | ||||||||||
Other assets | 1,334 | 295 | 986 | (575 | ) | |||||||||||
Accounts payable | 159 | (1,508 | ) | (1,398 | ) | (2,815 | ) | |||||||||
Accrued compensation | 3,969 | 9,852 | (3,871 | ) | 8,679 | |||||||||||
Other accrued expenses | (1,621 | ) | 6,177 | (5,359 | ) | 1,394 | ||||||||||
Income taxes payable | 5,387 | 12,621 | (2,270 | ) | 8,590 | |||||||||||
Deferred revenue | 26,442 | 34,999 | 37,113 | 38,140 | ||||||||||||
Other liabilities | (73 | ) | (2,475 | ) | (40 | ) | (2,376 | ) | ||||||||
Net cash provided by operating activities | 37,802 | 41,861 | 152,206 | 137,436 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property and equipment | (4,359 | ) | (2,945 | ) | (12,540 | ) | (13,050 | ) | ||||||||
Cash paid for acquisitions, net of cash acquired | (1,981 | ) | (39,257 | ) | (137,207 | ) | (146,842 | ) | ||||||||
Change in restricted cash | (30 | ) | (48,924 | ) | 46,524 | (48,924 | ) | |||||||||
Purchases of cost-method investments | — | (12 | ) | (3,160 | ) | (6,109 | ) | |||||||||
Purchases of investment securities | — | 50 | (52,003 | ) | (30,766 | ) | ||||||||||
Sales and maturities of investment securities | 42,749 | 596 | 82,071 | 58,396 | ||||||||||||
Net cash provided by (used in) investing activities | 36,379 | (90,492 | ) | (76,315 | ) | (187,295 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Repurchase of common stock | (145,338 | ) | — | (145,338 | ) | — | ||||||||||
Repayment of capital lease obligations | (51 | ) | (133 | ) | (256 | ) | (280 | ) | ||||||||
Proceeds from the exercise of stock options | 1,320 | — | 39,964 | — | ||||||||||||
Excess tax benefit related to share-based compensation | 87 | — | 3,415 | — | ||||||||||||
Proceeds received from certain executive officers as part of our restatement remedial actions | — | — | 200 | 158 | ||||||||||||
Net cash used in financing activities | (143,982 | ) | (133 | ) | (102,015 | ) | (122 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 5,205 | (224 | ) | 6,451 | (615 | ) | ||||||||||
Net decrease in cash and cash equivalents | (64,596 | ) | (48,988 | ) | (19,673 | ) | (50,596 | ) | ||||||||
Cash and cash equivalents, beginning of period | 280,491 | 284,556 | 235,568 | 286,164 | ||||||||||||
Cash and cash equivalents, end of period | $ | 215,895 | $ | 235,568 | $ | 215,895 | $ | 235,568 | ||||||||