January 30, 2017
VIA EDGAR
United States Securities and Exchange Commission
Division of Corporation Finance
100 F Street, NE
Washington, DC 20549
| Attention: | Stephen Krikorian, Accounting Branch Chief Office of Information Technologies and Services | |
| Melissa Walsh, Staff Accountant | ||
| Re: | Silver Spring Networks, Inc. | |
| Form10-K for the Fiscal Year Ended December 31, 2015 | ||
| Filed March 9, 2016 | ||
| Form10-Q for the Quarterly Period Ended September 30, 2016 | ||
| Filed November 9, 2016 | ||
| Form8-K filed November 3, 2016 | ||
| FileNo. 001-35828 | ||
Ladies and Gentlemen:
Silver Spring Networks, Inc. (the “Company”) hereby responds to the comments of the staff of the Securities and Exchange Commission (the “Staff”) contained in the Staff’s letter dated January 10, 2017 (the “Comment Letter”) regarding the Company’s Annual Report on Form10-K for the Fiscal Year Ended December 31, 2015 filed on March 9, 2016 (the “Form10-K”), Quarterly Report on Form10-Q for the Quarterly Period Ended September 30, 2016 filed on November 9, 2016 (the “Form10-Q”), and Form8-K filed on November 3, 2016 (the “Form8-K”) (FileNo. 001-35828). The numbered paragraphs below correspond to the numbered comments in that letter; the Staff’s comment is presented in bold italics.
1. We note from your response to prior comment 3 that yournon-GAAP performance measures address the unique circumstances of your customer deployments. However, your presentations ofnon-GAAP gross profit and gross margin on billings (including gross profit and gross margin on product billings and gross profit and gross margin on services billings),non-GAAP operating income (loss),non-GAAP operating margin,non-GAAP net income (loss),non-GAAP income (loss) per share, and adjusted EBITDA cannot reflect any changes in management decisions associated with thenon-GAAP billings andnon-GAAP cost of billings. Thesenon-GAAP measures are inconsistent with the guidance in Question 100.04 of the Compliance and Disclosure Interpretations onNon-GAAP Financial Measures. Please revise your future presentation of thesenon-GAAP measures.
United States Securities and Exchange Commission
January 30, 2017
Page 2
Response to Comment 1:
The Company acknowledges the Staff’s comment and confirms it will revise its future presentation of thesenon-GAAP measures. Following a discussion with the Staff, the Company proposed revising its presentation for the results for the fourth quarter of 2016 substantially as set forth onExhibit A, and for the results for the first quarter of 2017 and future quarters substantially as set forth onExhibit B. After further discussions with the Staff, the Company has determined that it will not issue a press release in the form ofExhibit A but will issue a press release substantially in the form ofExhibit B beginning with the results for the fourth quarter of 2016.
* * * * * * *
As requested, in connection with responding to the Comment Letter, the Company acknowledges that:
| • | The Company is responsible for the adequacy and accuracy of the disclosure in the filing; |
| • | Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and |
| • | The Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. |
* * * * * * *
Should the Staff have additional questions or comments regarding this response to the Comment Letter, please do not hesitate to contact the undersigned at669-770-4643, or Rick Arnold at669-770-4556.
| Sincerely, |
| SILVER SPRING NETWORKS, INC. |
/s/ Kenneth P. Gianella
Kenneth P. Gianella |
| Chief Financial Officer (interim) |
| cc: | Michael Bell, Chief Executive Officer |
Richard S. Arnold, Jr., General Counsel
Deanna M. Butler, V.P., Associate General Counsel
Silver Spring Networks, Inc.
Robert A. Freedman
Fenwick & West LLP
Exhibit A
Silver Spring Networks Reports Fourth Quarter 2016 Financial Results
San Jose, CA – February XX, 2017 – Silver Spring Networks, Inc. (NYSE: SSNI) today announced preliminary financial results for its fourth quarter ended December 31, 2016.
Fourth Quarter Results(all comparisons made are against the prior year period, unless otherwise stated):
GAAP Results:
| • | Revenue was $X million, up (down) X%. |
| • | Cost of revenue was $X million, up (down) X%. |
| • | Gross profit was $X million, up (down) X%. Gross margin was X%, versus X%. |
| • | Operating expense was $X million, versus $X million. |
| • | Operating income (loss) was $X million, versus $X million. |
| • | Tax expense (benefit) was $X million. Other income (loss) was $X million. |
| • | Basic share count was X million shares. Fully-diluted share count was X million shares. |
| • | Quarter-ending cash, cash equivalents, and short-term investments were $X million. |
Non-GAAP Metrics:
| • | Billings were $X million, up (down) X%. |
| • | Cost of billings was $X million, up (down) X%. |
| • | Non-GAAP operating expense was $X million, versus $X million. |
Historically-reportednon-GAAP Metrics1:
| • | Gross profit on billings was $X million, up (down) X%. |
| • | Gross margin on billings was X%, versus X%. |
| • | Non-GAAP operating income (loss) was $X million, versus $X million. |
| 1 | For future earnings reports, Silver Spring Networks will no longer report certainnon-GAAP metrics including gross profit on billings, gross margin on billings andnon-GAAP operating income (loss). Silver Spring Networks will continue to report billings, cost of billings, andnon-GAAP operating expense. Silver Spring Networks will also provide additional GAAP measures used internally by management to adjust GAAP measures in order to assess its business performance, which can be used by investors to derive metrics comparable to historically-reportednon-GAAP metrics. |
1
[CEO quote]
Business Highlights(through December 31, 2016, unless otherwise stated):
| • | Highlight 1. |
| • | Highlight 2. |
| • | Highlight 3. |
| • | Highlight X. |
Full Year 2016 Results
GAAP Results:
| • | Revenue was $X million, up (down) X%. |
| • | Cost of revenue was $X million, up (down) X%. |
| • | Gross profit was $X million, up (down) X%. Gross margin was X%, versus X%. |
| • | Operating expense was $X million, versus $X million. |
| • | Operating income (loss) was $X million, versus $X million. |
| • | Tax expense (benefit) was $X million. Other income (loss) was $X million. |
| • | Basic share count was X million shares. Fully-diluted share count was X million shares. |
| • | Quarter-ending cash, cash equivalents, and short-term investments were $X million. |
Non-GAAP Metrics:
| • | Billings were $X million, up (down) X%. |
| • | Cost of billings was $X million, up (down) X%. |
| • | Non-GAAP operating expense was $X million, versus $X million. |
Historically-reportednon-GAAP Metrics1:
| • | Gross profit on billings was $X million, up (down) X%. |
| • | Gross margin on billings was X%, versus X%. |
| • | Non-GAAP operating income (loss) was $X million, versus $X million. |
Conference Call
Silver Spring Networks will host a conference call today at X:XX pm PT (X:XX pm ET) to review its results for the fourth quarter ended December 31, 2016 and its outlook for the future. During the course of this call, Silver Spring Networks may also disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live atXXX-XXX-XXXX (U.S.) orXXX-XXX-XXXX (International) or via webcast at http://ir.ssni.com. Adial-in replay of the conference call will be available until XXXX, 2017 and can be accessed atXXX-XXX-XXXX (domestic) orXXX-XXX-XXXX (international) passcode XXXXXXX. An audio webcast replay of the conference call will be available for one year at http://ir.ssni.com.
2
About Silver Spring Networks
Silver Spring Networks enables the Internet of Important Things™ by reliably and securely connecting things that matter. Cities, utilities, and companies on five continents use the company’s cost-effective, high-performance IoT network and data platform to operate more efficiently, get greener, and enable innovative services that can improve the lives of millions of people. With more than XX.X million devices delivered, Silver Spring Networks provides a proven standards-based platform safeguarded with military grade security. Silver Spring Networks’ customers include Baltimore Gas & Electric, CitiPower & Powercor, ComEd, Consolidated Edison, CPS Energy, Florida Power & Light, Pacific Gas & Electric, Pepco Holdings, and Singapore Power. Silver Spring Networks has also deployed networks in Smart Cities including Copenhagen, Glasgow, Paris, Providence, and Stockholm. To learn more, visitwww.ssni.com.
Non-GAAP and Other Financial Metrics
Silver Spring Networks supplements the results of operations presented in accordance with generally accepted accounting principles, or GAAP, with certainnon-GAAP metrics. Silver Spring Networks manages its business, makes planning decisions, evaluates its performance and allocates resources by assessingnon-GAAP and other financial metrics such as billings, cost of billings, gross profit on billings, gross margin on billings,non-GAAP operating expense,non-GAAP operating income (loss), and total backlog. Silver Spring Networks believes that thesenon-GAAP and other financial metrics, when taken together with the corresponding GAAP financial measures, offer valuable supplemental information regarding the performance of its business, and will help investors better understand the sales volumes, gross margin and profitability trends, as well as the cash flow characteristics, of its business. Thenon-GAAP metrics should not be considered in isolation from, are not a substitute for, and do not purport to be an alternative to, revenue, cost of revenue, gross profit, gross margin, operating expense, operating net income (loss) or any other performance measure derived in accordance with GAAP. Silver Spring Networks may consider whether other significantnon-recurring items that arise in the future should also be excluded in calculating thenon-GAAP financial measures it uses.
Billings represents amounts invoiced for products for which ownership, typically evidenced by title and risk of loss, has transferred or services that have been provided to the customer, and for which payment is expected to be made in accordance with normal payment terms. Billings excludes amounts for undelivered products, services to be performed in the future, and amounts paid or payable to customers. Billings are initially recorded as deferred revenue and are then recognized as revenue when all revenue recognition criteria has been met under Silver Spring Networks’ accounting policies as described in Silver Spring Networks’ filings with the Securities and Exchange Commission. Silver Spring Networks reconciles revenue to billings by adding revenue to the change in deferred revenue in a given period.
3
Cost of billings represents the cost associated with products and services that have been delivered to the customer, excluding stock-based compensation, amortization of intangibles and acquisition-related charges. Cost of product shipments for which revenue is not recognized in the period incurred is recorded as deferred cost of revenue. Deferred cost of revenue is expensed in the statement of operations as cost of revenue when the corresponding revenue is recognized. Costs related to services are expensed in the period incurred. Silver Spring Networks reconciles cost of revenue to cost of billings by adding cost of revenue and the change in deferred cost of revenue, less stock-based compensation, amortization of intangibles and acquisition-related charges, included in cost of revenue in a given period.
Non-GAAP operating expense consists of research and development, sales and marketing, and general and administrative expenses, excluding amortization of intangible assets, stock-based compensation, acquisition-related charges, restructuring and legal settlements.
Total backlog represents future product and service billings that Silver Spring Networks expects to generate pursuant to contracts entered into with its utility customers and meter manufacturers. Total backlog includes order backlog, which represents future billings for open purchase orders and other firm commitments.
Historically-reportednon-GAAP Metrics1
Gross profit (loss) on billings is the difference between billings and cost of billings.
Gross margin on billings is gross profit (loss) on billings as a percentage of billings.
Non-GAAP operating income (loss) represents operating income (loss) adjusted for billings and cost of billings and excludes expenses related to the amortization of intangible assets, stock-based compensation, acquisition-related charges, restructuring and legal settlements.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding XXX, YYY, and ZZZ. Statements including words such as “anticipate”, “believe”, “estimate” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates and expectations based on current information and are subject to business and economic risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Important factors that could cause results to differ materially from the statements herein include: XXX, YYY, ZZZ;
4
and other risk factors set forth from time to time in Silver Spring Networks’ filings with the SEC, copies of which are available free of charge at the SEC’s website at www.sec.gov. All forward-looking statements in this press release reflect Silver Spring Networks’ expectations as of February XX, 2017. Silver Spring Networks undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking statements in this press release in light of new information or future events. In addition, the preliminary financial results set forth in this press release are estimates based on information currently available to Silver Spring Networks.
For additional information, please contact:
Mark McKechnie
Investor Relations
669-770-4664
markm@ssni.com
Amy Nunnemacher
Global Communications
669-770-4183
pr@ssni.com
5
SILVER SPRING NETWORKS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
Revenue: | ||||||||||||||||
Product | $ | $ | 143,202 | $ | $ | 353,041 | ||||||||||
Services | 56,045 | 136,518 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total revenue | 199,247 | 489,559 | ||||||||||||||
Cost of revenue: | ||||||||||||||||
Product | 83,903 | 202,430 | ||||||||||||||
Services | 13,999 | 61,386 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total cost of revenue | 97,902 | 263,816 | ||||||||||||||
Gross profit | 101,345 | 225,743 | ||||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 13,714 | 61,295 | ||||||||||||||
Sales and marketing | 7,343 | 33,452 | ||||||||||||||
General and administrative | 14,483 | 46,372 | ||||||||||||||
Impairment of intangible assets | — | — | ||||||||||||||
Restructuring | 60 | 1,671 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total operating expenses | 35,600 | 142,790 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Operating income (loss) | 65,745 | 82,953 | ||||||||||||||
Other income (loss), net | (159 | ) | 104 | |||||||||||||
|
|
|
|
|
|
|
| |||||||||
Income (loss) before income taxes | 65,586 | 83,057 | ||||||||||||||
(Provision) benefit for income taxes | (3,708 | ) | (3,071 | ) | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net income (loss) | $ | $ | 61,878 | $ | $ | 79,986 | ||||||||||
|
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|
|
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| |||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | $ | 1.23 | $ | $ | 1.60 | ||||||||||
|
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|
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|
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| |||||||||
Diluted | $ | $ | 1.19 | $ | $ | 1.55 | ||||||||||
|
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| |||||||||
Weighted average shares used to compute net income (loss) per share: |
| |||||||||||||||
Basic | 50,481 | 49,963 | ||||||||||||||
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| |||||||||
Diluted | 52,167 | 51,524 | ||||||||||||||
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6
SILVER SPRING NETWORKS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| December 31, 2016 | December 31, 2015 (a) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | 65,264 | |||||
Short-term investments | 59,181 | |||||||
Accounts receivable | 47,813 | |||||||
Inventory | 4,545 | |||||||
Deferred cost of revenue | 196,868 | |||||||
Prepaid expenses and other current assets | 10,835 | |||||||
|
|
|
| |||||
Total current assets | 384,506 | |||||||
Property and equipment, net | 14,106 | |||||||
Goodwill and intangible assets | 14,390 | |||||||
Deferred cost of revenue,non-current | 38,882 | |||||||
Deferred tax assets,non-current | 1,069 | |||||||
Other long-term assets | 4,772 | |||||||
|
|
|
| |||||
Total assets | $ | $ | 457,725 | |||||
|
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|
| |||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | $ | 30,623 | |||||
Deferred revenue | 305,471 | |||||||
Accrued and other liabilities | 42,751 | |||||||
|
|
|
| |||||
Total current liabilities | 378,845 | |||||||
Deferred revenue,non-current | 96,342 | |||||||
Other liabilities,non-current | 16,403 | |||||||
|
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|
| |||||
Total liabilities | 491,590 | |||||||
|
|
|
| |||||
Total stockholders’ deficit | (33,865 | ) | ||||||
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|
|
| |||||
Total liabilities and stockholders’ deficit | $ | $ | 457,725 | |||||
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|
| |||||
| (a) | Derived from audited consolidated financial statements. |
7
SILVER SPRING NETWORKS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||
Net income (loss) | $ | $ | 61,878 | $ | $ | 79,986 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||
Deferred taxes | (557 | ) | (1,492 | ) | ||||||||||||
Depreciation and amortization | 1,930 | 7,822 | ||||||||||||||
Stock-based compensation | 4,942 | 26,479 | ||||||||||||||
Othernon-cash adjustments | 412 | 766 | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable | (3,675 | ) | 7,398 | |||||||||||||
Inventory | (853 | ) | 2,190 | |||||||||||||
Prepaid expenses and other assets | (936 | ) | (5,128 | ) | ||||||||||||
Contingent consideration related to Detectent acquisition held in escrow | — | (4,000 | ) | |||||||||||||
Deferred cost of revenue | 56,978 | 97,286 | ||||||||||||||
Accounts payable | 3,232 | 3,101 | ||||||||||||||
Customer deposits | (599 | ) | (448 | ) | ||||||||||||
Deferred revenue | (124,115 | ) | (208,305 | ) | ||||||||||||
Accrued and other liabilities | 7,620 | 14,032 | ||||||||||||||
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| |||||||||
Net cash provided by (used in) operating activities | 6,257 | 19,687 | ||||||||||||||
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INVESTING ACTIVITIES | ||||||||||||||||
Payments for business acquisition, net of cash and cash equivalents acquired | — | (7,098 | ) | |||||||||||||
Proceeds from sales ofavailable-for-sale investments | 4,204 | 15,690 | ||||||||||||||
Proceeds from maturities ofavailable-for-sale investments | — | 9,250 | ||||||||||||||
Purchases ofavailable-for-sale investments | (5,270 | ) | (24,180 | ) | ||||||||||||
Purchases of property and equipment | (1,821 | ) | (5,350 | ) | ||||||||||||
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Net cash provided by (used in) investing activities | (2,887 | ) | (11,688 | ) | ||||||||||||
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FINANCING ACTIVITIES | ||||||||||||||||
Payments on capital lease obligations | (169 | ) | (1,163 | ) | ||||||||||||
Proceeds from issuance of common stock | 139 | 3,794 | ||||||||||||||
Excess tax benefit from share-based payment awards | 153 | 153 | ||||||||||||||
Taxes paid related to net share settlement of equity awards | (1,820 | ) | (5,788 | ) | ||||||||||||
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Net cash provided by (used in) financing activities | (1,697 | ) | (3,004 | ) | ||||||||||||
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Effect of exchange rate changes on cash and cash equivalents | 136 | (188 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 1,809 | 4,807 | ||||||||||||||
Cash and cash equivalents - beginning of period | 63,455 | 60,457 | ||||||||||||||
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Cash and cash equivalents - end of period | $ | $ | 65,264 | $ | $ | 65,264 | ||||||||||
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8
SILVER SPRING NETWORKS, INC.
UNAUDITED RECONCILIATION OF REVENUE BETWEEN GAAP ANDNON-GAAP (QUARTERLY)
(in thousands, except percentages)
| Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | YoY% Change | |||||||||||||||||||
REVENUE AND BILLINGS BY TYPE | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Product | $ | 143,202 | $ | 32,852 | $ | 69,917 | $ | 50,463 | $ | |||||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | 37,142 | 11,068 | 24,570 | 14,090 | ||||||||||||||||||||
Professional services | 18,903 | 4,700 | 27,465 | 9,633 | ||||||||||||||||||||
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Total services | 56,045 | 15,768 | 52,035 | 23,723 | ||||||||||||||||||||
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Total revenue | $ | 199,247 | $ | 48,620 | $ | 121,952 | $ | 74,186 | $ | |||||||||||||||
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Change in deferred revenue: | ||||||||||||||||||||||||
Product | $ | (95,194 | ) | $ | 12,883 | $ | (23,804 | ) | $ | (568 | ) | $ | ||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | (22,896 | ) | 1,820 | (9,650 | ) | 1,641 | ||||||||||||||||||
Professional services | (6,169 | ) | 5,591 | (16,652 | ) | 885 | ||||||||||||||||||
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Total services | (29,065 | ) | 7,411 | (26,302 | ) | 2,526 | ||||||||||||||||||
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Total change in deferred revenue | $ | (124,259 | ) | $ | 20,294 | $ | (50,106 | ) | $ | 1,958 | $ | |||||||||||||
Billings: | ||||||||||||||||||||||||
Product | $ | 48,008 | $ | 45,735 | $ | 46,113 | $ | 49,895 | $ | |||||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | 14,246 | 12,888 | 14,920 | 15,731 | ||||||||||||||||||||
Professional services | 12,734 | 10,291 | 10,813 | 10,518 | ||||||||||||||||||||
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Total services | 26,980 | 23,179 | 25,733 | 26,249 | ||||||||||||||||||||
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Total Billings | $ | 74,988 | $ | 68,914 | $ | 71,846 | $ | 76,144 | $ | |||||||||||||||
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REVENUE AND BILLINGS BY SOLUTION | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Advanced metering infrastructure | $ | 181,892 | $ | 40,514 | $ | 105,181 | $ | 66,203 | $ | |||||||||||||||
New solutions | 17,355 | 8,106 | 16,771 | 7,983 | ||||||||||||||||||||
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Total revenue | $ | 199,247 | $ | 48,620 | $ | 121,952 | $ | 74,186 | $ | |||||||||||||||
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% Advanced metering infrastructure | 91 | % | 83 | % | 86 | % | 89 | % | ||||||||||||||||
% New solutions | 9 | % | 17 | % | 14 | % | 11 | % | ||||||||||||||||
Change in deferred revenue: | ||||||||||||||||||||||||
Advanced metering infrastructure | $ | (123,525 | ) | $ | 16,957 | $ | (45,184 | ) | $ | (2,078 | ) | $ | ||||||||||||
New solutions | (734 | ) | 3,337 | (4,922 | ) | 4,036 | ||||||||||||||||||
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Total change in deferred revenue | $ | (124,259 | ) | $ | 20,294 | $ | (50,106 | ) | $ | 1,958 | $ | |||||||||||||
Billings: | ||||||||||||||||||||||||
Advanced metering infrastructure | $ | 58,367 | $ | 57,471 | $ | 59,997 | $ | 64,125 | $ | |||||||||||||||
New solutions | 16,621 | 11,443 | 11,849 | 12,019 | ||||||||||||||||||||
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Total Billings | $ | 74,988 | $ | 68,914 | $ | 71,846 | $ | 76,144 | $ | |||||||||||||||
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% Advanced metering infrastructure | 78 | % | 83 | % | 84 | % | 84 | % | ||||||||||||||||
% New solutions | 22 | % | 17 | % | 16 | % | 16 | % | ||||||||||||||||
REVENUE AND BILLINGS BY GEOGRAPHY | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
United States | $ | 177,896 | $ | 45,222 | $ | 118,539 | $ | 43,381 | $ | |||||||||||||||
International | 21,351 | 3,398 | 3,413 | 30,805 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total revenue | $ | 199,247 | $ | 48,620 | $ | 121,952 | $ | 74,186 | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
% United States | 89 | % | 93 | % | 97 | % | 58 | % | ||||||||||||||||
% International | 11 | % | 7 | % | 3 | % | 42 | % | ||||||||||||||||
Change in deferred revenue: | ||||||||||||||||||||||||
United States | $ | (116,859 | ) | $ | 8,468 | $ | (57,666 | ) | $ | 21,085 | $ | |||||||||||||
International | (7,400 | ) | 11,826 | 7,560 | (19,127 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total change in deferred revenue | $ | (124,259 | ) | $ | 20,294 | $ | (50,106 | ) | $ | 1,958 | $ | |||||||||||||
Billings: | ||||||||||||||||||||||||
United States | $ | 61,037 | $ | 53,690 | $ | 60,873 | $ | 64,466 | $ | |||||||||||||||
International | 13,951 | 15,224 | 10,973 | 11,678 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Billings | $ | 74,988 | $ | 68,914 | $ | 71,846 | $ | 76,144 | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
% United States | 81 | % | 78 | % | 85 | % | 85 | % | ||||||||||||||||
% International | 19 | % | 22 | % | 15 | % | 15 | % | ||||||||||||||||
9
SILVER SPRING NETWORKS, INC.
UNAUDITED RECONCILIATION OF GAAP TONON-GAAP MEASURES (QUARTERLY)
(in thousands)
| Three Months Ended December 31, 2016 | ||||||||||||||||||||||||
| Cost of Revenue | Change in Deferred Revenue and Deferred Cost of Revenue (a) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Cost of Billings | |||||||||||||||||||
Cost of Revenue: | ||||||||||||||||||||||||
Product | ||||||||||||||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | ||||||||||||||||||||||||
Professional services | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total services | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Cost of Revenue | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Operating Expenses | Stock-based Compensation | Amortization and Impairment of Intangible Assets | Restructuring & Litigation | Acquisition- Related Costs | Non-GAAP Operating Expenses | |||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Research and development | ||||||||||||||||||||||||
Sales and marketing | ||||||||||||||||||||||||
General and administrative | ||||||||||||||||||||||||
Impairment of acquisition-related intangible assets | ||||||||||||||||||||||||
Restructuring | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Operating Expenses | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Three Months Ended December 31, 2015 | ||||||||||||||||||||||||
| Cost of Revenue | Change in Deferred Revenue and Deferred Cost of Revenue (a) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Cost of Billings | |||||||||||||||||||
Cost of Revenue: | ||||||||||||||||||||||||
Product | $ | 83,903 | $ | (56,982 | ) | $ | (250 | ) | $ | (259 | ) | $ | — | $ | 26,412 | |||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | 7,592 | — | (256 | ) | — | (15 | ) | 7,321 | ||||||||||||||||
Professional services | 6,407 | — | (500 | ) | — | — | 5,907 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total services | $ | 13,999 | $ | — | $ | (756 | ) | $ | — | $ | (15 | ) | $ | 13,228 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Cost of Revenue | $ | 97,902 | $ | (56,982 | ) | $ | (1,006 | ) | $ | (259 | ) | $ | (15 | ) | $ | 39,640 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Operating Expenses | Stock-based Compensation | Amortization and Impairment of Intangible Assets | Restructuring & Litigation | Acquisition- Related Costs | Non-GAAP Operating Expenses | |||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Research and development | $ | 13,714 | $ | (1,277 | ) | $ | — | $ | — | $ | (311 | ) | $ | 12,126 | ||||||||||
Sales and marketing | 7,343 | (665 | ) | (155 | ) | — | (64 | ) | 6,459 | |||||||||||||||
General and administrative | 14,483 | (1,994 | ) | (8 | ) | (3,595 | ) | (116 | ) | 8,770 | ||||||||||||||
Impairment of acquisition-related intangible assets | — | — | — | — | — | — | ||||||||||||||||||
Restructuring | 60 | — | — | (60 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Operating Expenses | $ | 35,600 | $ | (3,936 | ) | $ | (163 | ) | $ | (3,655 | ) | $ | (491 | ) | $ | 27,355 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Amounts presented net of foreign currency translation. |
10
SILVER SPRING NETWORKS, INC.
UNAUDITED RECONCILIATION OF GAAP TONON-GAAP MEASURES (YEAR TO DATE)
(in thousands)
| Twelve Months Ended December 31, 2016 | ||||||||||||||||||||||||
| Cost of Revenue | Change in Deferred Revenue and Deferred Cost of Revenue (a) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Cost of Billings | |||||||||||||||||||
Cost of Revenue: | ||||||||||||||||||||||||
Product | ||||||||||||||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | ||||||||||||||||||||||||
Professional services | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total services | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Cost of Revenue | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Operating Expenses | Stock-based Compensation | Amortization and Impairment of Intangible Assets | Restructuring & Litigation | Acquisition- Related Costs | Non-GAAP Operating Expenses | |||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Research and development | ||||||||||||||||||||||||
Sales and marketing | ||||||||||||||||||||||||
General and administrative | ||||||||||||||||||||||||
Impairment of acquisition-related intangible assets | ||||||||||||||||||||||||
Restructuring | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Operating Expenses | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Twelve Months Ended December 31, 2015 | ||||||||||||||||||||||||
| Cost of Revenue | Change in Deferred Revenue and Deferred Cost of Revenue (a) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Cost of Billings | |||||||||||||||||||
Cost of Revenue: | ||||||||||||||||||||||||
Product | $ | 202,430 | $ | (97,274 | ) | $ | (1,288 | ) | $ | (1,041 | ) | $ | — | $ | 102,827 | |||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | 31,663 | — | (1,937 | ) | — | (100 | ) | 29,626 | ||||||||||||||||
Professional services | 29,723 | — | (2,910 | ) | — | — | 26,813 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total services | $ | 61,386 | $ | — | $ | (4,847 | ) | $ | — | $ | (100 | ) | $ | 56,439 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Cost of Revenue | $ | 263,816 | $ | (97,274 | ) | $ | (6,135 | ) | $ | (1,041 | ) | $ | (100 | ) | $ | 159,266 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Operating Expenses | Stock-based Compensation | Amortization and Impairment of Intangible Assets | Restructuring & Litigation | Acquisition- Related Costs | Non-GAAP Operating Expenses | |||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Research and development | $ | 61,295 | $ | (8,060 | ) | $ | — | $ | — | $ | (451 | ) | $ | 52,784 | ||||||||||
Sales and marketing | 33,452 | (4,105 | ) | (601 | ) | — | (87 | ) | 28,659 | |||||||||||||||
General and administrative | 46,372 | (8,179 | ) | (32 | ) | (3,595 | ) | (1,913 | ) | 32,653 | ||||||||||||||
Impairment of acquisition-related intangible assets | — | — | — | — | — | — | ||||||||||||||||||
Restructuring | 1,671 | — | — | (1,671 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Operating Expenses | $ | 142,790 | $ | (20,344 | ) | $ | (633 | ) | $ | (5,266 | ) | $ | (2,451 | ) | $ | 114,096 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Amounts presented net of foreign currency translation. |
11
SILVER SPRING NETWORKS, INC.
UNAUDITED SUPPLEMENTAL FINANCIAL DATA AND OTHER INFORMATION
(in thousands, except percentages and headcount)
| Q4 | Q1 | Q2 | Q3 | Q4 | YoY% | |||||||||||||||||||
| 2015 | 2016 | 2016 | 2016 | 2016 | Change | |||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | ||||||||||||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||||||||||
Cost of goods sold | $ | 1,006 | $ | 1,328 | $ | 1,389 | $ | 2,082 | $ | |||||||||||||||
Research and development | 1,277 | 2,025 | 2,241 | 2,593 | ||||||||||||||||||||
Sales and marketing | 665 | 831 | 726 | 943 | ||||||||||||||||||||
General and administrative | 1,994 | 2,716 | 2,685 | 2,280 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
TOTAL STOCK-BASED COMPENSATION | $ | 4,942 | $ | 6,900 | $ | 7,041 | $ | 7,898 | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
CASH FLOW DATA | ||||||||||||||||||||||||
Operating cash flow | $ | 6,257 | $ | 3,730 | $ | 3,802 | $ | 5,145 | $ | |||||||||||||||
Operating cash flow - trailing twelve months | 19,687 | 23,872 | 18,061 | 18,934 | ||||||||||||||||||||
BALANCE SHEET DATA | ||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | $ | 124,445 | $ | 125,369 | $ | 113,064 | $ | 113,358 | $ | |||||||||||||||
OTHER INFORMATION | ||||||||||||||||||||||||
HOMES & BUSINESSES | ||||||||||||||||||||||||
Network endpoints delivered during quarter* | 633 | 698 | 747 | 569 | ||||||||||||||||||||
Cumulative network endpoints delivered* | 22,954 | 23,652 | 24,399 | 24,968 | ||||||||||||||||||||
*Endpoints refer to communication modules in electric meters | ||||||||||||||||||||||||
EMPLOYEES | 652 | 673 | 708 | 709 | ||||||||||||||||||||
12
SILVER SPRING NETWORKS, INC.
UNAUDITED SUPPLEMENTAL TRENDED GAAP FINANCIAL DATA
(in thousands)
| Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||
| 2015 | 2016 | 2016 | 2016 | 2016 | ||||||||||||||||
Gross profit | $ | 101,345 | $ | 16,997 | $ | 64,543 | $ | 28,242 | $ | |||||||||||
Other GAAP financial data related to gross profit: | ||||||||||||||||||||
Change in deferred revenue, net of foreign currency translation | (124,259 | ) | 20,294 | (50,106 | ) | 1,958 | ||||||||||||||
Change in deferred cost of revenue, net of foreign currency translation | 56,982 | (8,668 | ) | 16,992 | 9,404 | |||||||||||||||
Amortization of intangible assets | 259 | 169 | 195 | 79 | ||||||||||||||||
Stock-based compensation | 1,006 | 1,328 | 1,389 | 2,082 | ||||||||||||||||
Acquisition-related charges | 15 | 15 | 16 | 15 | ||||||||||||||||
Operating expenses | $ | 35,600 | $ | 35,920 | $ | 37,794 | $ | 42,461 | $ | |||||||||||
Other GAAP financial data included in operating expenses: | ||||||||||||||||||||
Amortization of intangible assets | (163 | ) | (252 | ) | (180 | ) | (114 | ) | ||||||||||||
Stock-based compensation | (3,936 | ) | (5,572 | ) | (5,652 | ) | (5,816 | ) | ||||||||||||
Acquisition-related charges | (491 | ) | (501 | ) | (494 | ) | (493 | ) | ||||||||||||
Impairment of intangible assets | — | — | — | (2,204 | ) | |||||||||||||||
Restructuring | (60 | ) | (39 | ) | — | — | ||||||||||||||
Legal settlements | (3,595 | ) | — | — | — | |||||||||||||||
Other statement of operations line items | ||||||||||||||||||||
Other loss (income), net | $ | 159 | $ | (441 | ) | $ | (333 | ) | $ | (113 | ) | $ | ||||||||
Provision (benefit) for income taxes | 3,708 | 32 | 961 | 1,143 | ||||||||||||||||
13
SILVER SPRING NETWORKS, INC.
UNAUDITED RECONCILIATION BETWEEN GAAP AND HISTORICALLY-REPORTEDNON-GAAP MEASURES(a)
(in thousands, except percentages)
| Three Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||||
| Gross Profit | Gross Margin | Change in Deferred Revenue and Deferred Cost of Revenue(b) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Gross Profit on Billings(b) | Gross Margin on Billings (b) | |||||||||||||||||||||||||
Product | ||||||||||||||||||||||||||||||||
Services | ||||||||||||||||||||||||||||||||
Managed services and SaaS | ||||||||||||||||||||||||||||||||
Professional services | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total services | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total gross profit | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
| Three Months Ended December 31, 2015 | ||||||||||||||||||||||||||||||||
| Gross Profit | Gross Margin | Change in Deferred Revenue and Deferred Cost of Revenue(b) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Gross Profit on Billings(b) | Gross Margin on Billings(b) | |||||||||||||||||||||||||
Product | $ | 59,299 | 41.4 | % | $ | (38,212 | ) | $ | 250 | $ | 259 | $ | — | $ | 21,596 | 45.0 | % | |||||||||||||||
Services | ||||||||||||||||||||||||||||||||
Managed services and SaaS | 29,550 | 79.6 | % | (22,896 | ) | 256 | — | 15 | 6,925 | 48.6 | % | |||||||||||||||||||||
Professional services | 12,496 | 66.1 | % | (6,169 | ) | 500 | — | — | 6,827 | 53.6 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total services | 42,046 | 75.0 | % | (29,065 | ) | 756 | — | 15 | 13,752 | 51.0 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total gross profit | $ | 101,345 | 50.9 | % | $ | (67,277 | ) | $ | 1,006 | $ | 259 | $ | 15 | $ | 35,348 | 47.1 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
| Twelve Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||||
| Gross Profit | Gross Margin | Change in Deferred Revenue and Deferred Cost of Revenue(b) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Gross Profit on Billings(b) | Gross Margin on Billings(b) | |||||||||||||||||||||||||
Product | ||||||||||||||||||||||||||||||||
Services | ||||||||||||||||||||||||||||||||
Managed services and SaaS | ||||||||||||||||||||||||||||||||
Professional services | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total services | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total gross profit | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
| Twelve Months Ended December 31, 2015 | ||||||||||||||||||||||||||||||||
| Gross Profit | Gross Margin | Change in Deferred Revenue and Deferred Cost of Revenue(b) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Gross Profit on Billings(b) | Gross Margin on Billings(b) | |||||||||||||||||||||||||
Product | $ | 150,611 | 42.7 | % | $ | (70,184 | ) | $ | 1,288 | $ | 1,041 | $ | — | $ | 82,756 | 44.6 | % | |||||||||||||||
Services | ||||||||||||||||||||||||||||||||
Managed services and SaaS | 40,284 | 56.0 | % | (19,531 | ) | 1,937 | — | 100 | 22,790 | 43.5 | % | |||||||||||||||||||||
Professional services | 34,848 | 54.0 | % | (20,646 | ) | 2,910 | — | — | 17,112 | 39.0 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total services | 75,132 | 55.0 | % | (40,177 | ) | 4,847 | — | 100 | 39,902 | 41.5 | % | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
Total gross profit | $ | 225,743 | 46.1 | % | $ | (110,361 | ) | $ | 6,135 | $ | 1,041 | $ | 100 | $ | 122,658 | 43.5 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
| (a) | For future earnings reports, Silver Spring Networks will no longer report certainnon-GAAP metrics including gross profit on billings, gross margin on billings andnon-GAAP operating income (loss). Silver Spring Networks will continue to report billings, cost of billings, andnon-GAAP operating expense. Silver Spring Networks will also provide additional GAAP measures used internally by management to adjust GAAP measures in order to assess its business performance, which can be used by investors to derive metrics comparable to historically-reportednon-GAAP metrics. |
| (b) | Amounts presented net of foreign currency translation. |
14
SILVER SPRING NETWORKS, INC.
UNAUDITED RECONCILIATION BETWEEN GAAP AND HISTORICALLY-REPORTEDNON-GAAP MEASURES(a)
(in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
Operating income | $ | $ | 65,745 | $ | $ | 82,953 | ||||||||||
Change in deferred revenue, net of foreign currency translation | (124,259 | ) | (207,635 | ) | ||||||||||||
Change in deferred cost of revenue, net of foreign currency translation | 56,982 | 97,274 | ||||||||||||||
Amortization of intangibles | 422 | 1,674 | ||||||||||||||
Stock-based compensation | 4,942 | 26,479 | ||||||||||||||
Acquisition-related charges | 506 | 2,551 | ||||||||||||||
Restructuring | 60 | 1,671 | ||||||||||||||
Legal settlements | 3,595 | 3,595 | ||||||||||||||
Impairment of intangible assets | — | — | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Non-GAAP operating income | $ | $ | 7,993 | $ | $ | 8,562 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Weighted average shares: | ||||||||||||||||
Basic | 50,481 | 49,963 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
Diluted | 52,167 | 51,524 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||
| (a) | For future earnings reports, Silver Spring Networks will no longer report certainnon-GAAP metrics including gross profit on billings, gross margin on billings andnon-GAAP operating income (loss). Silver Spring Networks will continue to report billings, cost of billings, andnon-GAAP operating expense. Silver Spring Networks will also provide additional GAAP measures used internally by management to adjust GAAP measures in order to assess its business performance, which can be used by investors to derive metrics comparable to historically-reportednon-GAAP metrics. |
15
Exhibit B
Silver Spring Networks Reports First Quarter 2017 Financial Results
San Jose, CA – May XX, 2017 – Silver Spring Networks, Inc. (NYSE: SSNI) today announced preliminary financial results for its first quarter ended March 31, 2017.
First Quarter Results(all comparisons made are against the prior year period, unless otherwise stated):
GAAP Results:
| • | Revenue was $X million, up (down) X%. |
| • | Cost of revenue was $X million, up (down) X%. |
| • | Operating expense was $X million, up (down) X%. |
| • | Tax expense (benefit) was $X million. Other income (loss) was $X million. |
| • | Basic share count was X million shares. Fully-diluted share count was X million shares. |
| • | Quarter-ending cash, cash equivalents, and short-term investments were $X million. |
Non-GAAP metrics:
| • | Billings were $X million, up (down) X%. |
| • | Cost of billings was $X million, up (down) X%. |
| • | Non-GAAP operating expense was $X million, up (down) X%. |
[CEO quote]
1
Business Highlights(through March 31, 2017, unless otherwise stated):
| • | Highlight 1. |
| • | Highlight 2. |
| • | Highlight 3. |
| • | Highlight X. |
Conference Call
Silver Spring Networks will host a conference call today at X:XX pm PT (X:XX pm ET) to review its results for the first quarter ended March 31, 2017 and its outlook for the future. During the course of this call, Silver Spring Networks may also disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live atXXX-XXX-XXXX (U.S.) orXXX-XXX-XXXX (International) or via webcast at http://ir.ssni.com. Adial-in replay of the conference call will be available until XXXX, 2017 and can be accessed atXXX-XXX-XXXX (domestic) orXXX-XXX-XXXX (international) passcode XXXXXXX. An audio webcast replay of the conference call will be available for one year at http://ir.ssni.com.
About Silver Spring Networks
Silver Spring Networks enables the Internet of Important Things™ by reliably and securely connecting things that matter. Cities, utilities, and companies on five continents use the company’s cost-effective, high-performance IoT network and data platform to operate more efficiently, get greener, and enable innovative services that can improve the lives of millions of people. With more than XX.X million devices delivered, Silver Spring Networks provides a proven standards-based platform safeguarded with military grade security. Silver Spring Networks’ customers include Baltimore Gas & Electric, CitiPower & Powercor, ComEd, Consolidated Edison, CPS Energy, Florida Power & Light, Pacific Gas & Electric, Pepco Holdings, and Singapore Power. Silver Spring Networks has also deployed networks in Smart Cities including Copenhagen, Glasgow, Paris, Providence, and Stockholm. To learn more, visitwww.ssni.com.
Non-GAAP and Other Financial Metrics
Silver Spring Networks supplements the results of operations presented in accordance with generally accepted accounting principles, or GAAP, with certainnon-GAAP metrics. Silver Spring Networks manages its business, makes planning decisions, evaluates its performance and allocates resources by assessingnon-GAAP and other financial metrics such as billings, cost of billings,non-GAAP operating expense, and total backlog. Silver Spring Networks believes that thesenon-GAAP and other financial metrics, when taken together with the corresponding GAAP financial measures, offer valuable supplemental information regarding the performance of its business, and will help investors better understand the sales volumes and profitability trends, as well as the cash flow characteristics, of its business. Thenon-GAAP metrics should not be
2
considered in isolation from, are not a substitute for, and do not purport to be an alternative to, revenue, cost of revenue, operating expense, or any other performance measure derived in accordance with GAAP. Silver Spring Networks may consider whether other significantnon-recurring items that arise in the future should also be excluded in calculating thenon-GAAP financial measures it uses.
Billings represents amounts invoiced for products for which ownership, typically evidenced by title and risk of loss, has transferred or services that have been provided to the customer, and for which payment is expected to be made in accordance with normal payment terms. Billings excludes amounts for undelivered products, services to be performed in the future, and amounts paid or payable to customers. Billings are initially recorded as deferred revenue and are then recognized as revenue when all revenue recognition criteria has been met under Silver Spring Networks’ accounting policies as described in Silver Spring Networks’ filings with the Securities and Exchange Commission. Silver Spring Networks reconciles revenue to billings by adding revenue to the change in deferred revenue in a given period.
Cost of billings represents the cost associated with products and services that have been delivered to the customer, excluding stock-based compensation, amortization of intangibles and acquisition-related charges. Cost of product shipments for which revenue is not recognized in the period incurred is recorded as deferred cost of revenue. Deferred cost of revenue is expensed in the statement of operations as cost of revenue when the corresponding revenue is recognized. Costs related to services are expensed in the period incurred. Silver Spring Networks reconciles cost of revenue to cost of billings by adding cost of revenue and the change in deferred cost of revenue, less stock-based compensation, amortization of intangibles and acquisition-related charges, included in cost of revenue in a given period.
Non-GAAP operating expense consists of research and development, sales and marketing, and general and administrative expenses, excluding amortization of intangible assets, stock-based compensation, acquisition-related charges, restructuring and legal settlements.
Total backlog represents future product and service billings that Silver Spring Networks expects to generate pursuant to contracts entered into with its utility customers and meter manufacturers. Total backlog includes order backlog, which represents future billings for open purchase orders and other firm commitments.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding XXX, YYY, ZZZ. Statements including words such as “anticipate”, “believe”, “estimate” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates and expectations based on current information and are subject to business and economic risks and uncertainties
3
that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Important factors that could cause results to differ materially from the statements herein include: XX, YY, ZZ and other risk factors set forth from time to time in Silver Spring Networks’ filings with the SEC, copies of which are available free of charge at the SEC’s website at www.sec.gov. All forward-looking statements in this press release reflect Silver Spring Networks’ expectations as of May XX, 2017. Silver Spring Networks undertakes no obligation, and expressly disclaims any obligation, to update any forward-looking statements in this press release in light of new information or future events. In addition, the preliminary financial results set forth in this press release are estimates based on information currently available to Silver Spring Networks.
For additional information, please contact:
Mark McKechnie
Investor Relations
669-770-4664
markm@ssni.com
Amy Nunnemacher
Global Communications
669-770-4183
pr@ssni.com
4
SILVER SPRING NETWORKS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
Revenue: | ||||||||
Product | $ | $ | 32,852 | |||||
Services | 15,768 | |||||||
|
|
|
| |||||
Total revenue | 48,620 | |||||||
Cost of revenue: | ||||||||
Product | 15,980 | |||||||
Services | 15,643 | |||||||
|
|
|
| |||||
Total cost of revenue | 31,623 | |||||||
Gross profit | 16,997 | |||||||
Operating expenses: | ||||||||
Research and development | 15,485 | |||||||
Sales and marketing | 9,550 | |||||||
General and administrative | 10,846 | |||||||
Restructuring | 39 | |||||||
|
|
|
| |||||
Total operating expenses | 35,920 | |||||||
|
|
|
| |||||
Operating (loss) income | (18,923 | ) | ||||||
Other income (loss), net | 441 | |||||||
|
|
|
| |||||
(Loss) income before income taxes | (18,482 | ) | ||||||
(Provision) benefit for income taxes | (32 | ) | ||||||
|
|
|
| |||||
Net income (loss) | $ | $ | (18,514 | ) | ||||
|
|
|
| |||||
Net income (loss) per share: | ||||||||
Basic | $ | $ | (0.36 | ) | ||||
|
|
|
| |||||
Diluted | $ | $ | (0.36 | ) | ||||
|
|
|
| |||||
Weighted average shares used to compute net income (loss) per share: |
| |||||||
Basic | 50,760 | |||||||
|
|
|
| |||||
Diluted | 50,760 | |||||||
|
|
|
| |||||
5
SILVER SPRING NETWORKS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
| March 31, | December 31, | |||||||
| 2017 | 2016 (a) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Short-term investments | ||||||||
Accounts receivable | ||||||||
Inventory | ||||||||
Deferred cost of revenue | ||||||||
Prepaid expenses and other current assets | ||||||||
|
|
|
| |||||
Total current assets | ||||||||
Property and equipment, net | ||||||||
Goodwill and intangible assets | ||||||||
Deferred cost of revenue,non-current | ||||||||
Deferred tax assets,non-current | ||||||||
Other long-term assets | ||||||||
|
|
|
| |||||
Total assets | $ | $ | ||||||
|
|
|
| |||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | $ | ||||||
Deferred revenue | ||||||||
Accrued and other liabilities | ||||||||
|
|
|
| |||||
Total current liabilities | ||||||||
Deferred revenue,non-current | ||||||||
Other liabilities,non-current | ||||||||
|
|
|
| |||||
Total liabilities | ||||||||
|
|
|
| |||||
Total stockholders’ deficit | ||||||||
|
|
|
| |||||
Total liabilities and stockholders’ deficit | $ | $ | ||||||
|
|
|
| |||||
| (a) | Derived from audited consolidated financial statements. |
6
SILVER SPRING NETWORKS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(in thousands)
| Three Months Ended March 31, | ||||||||
| 2017 | 2016 (a) | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | $ | (18,514 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||
Deferred taxes | — | |||||||
Depreciation and amortization | 2,132 | |||||||
Stock-based compensation | 6,900 | |||||||
Othernon-cash adjustments | 60 | |||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 3,976 | |||||||
Inventory | 470 | |||||||
Prepaid expenses and other assets | 2,208 | |||||||
Deferred cost of revenue | (8,804 | ) | ||||||
Accounts payable | 613 | |||||||
Customer deposits | (5 | ) | ||||||
Deferred revenue | 20,054 | |||||||
Accrued and other liabilities | (5,360 | ) | ||||||
|
|
|
| |||||
Net cash provided by (used in) operating activities | 3,730 | |||||||
|
|
|
| |||||
INVESTING ACTIVITIES | ||||||||
Proceeds from sales ofavailable-for-sale investments | 4,833 | |||||||
Proceeds from maturities ofavailable-for-sale investments | 1,000 | |||||||
Purchases ofavailable-for-sale investments | (3,439 | ) | ||||||
Purchases of property and equipment | (4,485 | ) | ||||||
|
|
|
| |||||
Net cash provided by (used in) investing activities | (2,091 | ) | ||||||
|
|
|
| |||||
FINANCING ACTIVITIES | ||||||||
Payments on capital lease obligations | (144 | ) | ||||||
Proceeds from issuance of common stock | 1,888 | |||||||
Taxes paid related to net share settlement of equity awards | (334 | ) | ||||||
|
|
|
| |||||
Net cash provided by (used in) financing activities | 1,410 | |||||||
|
|
|
| |||||
Effect of exchange rate changes on cash and cash equivalents | 98 | |||||||
Net increase (decrease) in cash and cash equivalents | 3,147 | |||||||
Cash and cash equivalents - beginning of period | 65,264 | |||||||
|
|
|
| |||||
Cash and cash equivalents - end of period | $ | $ | 68,411 | |||||
|
|
|
| |||||
| (a) | In the course of preparing the condensed consolidated financial statements for the quarter ended June 30, 2016, we determined that the cash provided from operating activities was understated and cash provided by investing activities was overstated by $2.3 million in the condensed consolidated statements of cash flows for the three months ended March 31, 2016, as included in the Company’s First Quarter Form10-Q. The cash flows presented above reflects that the cash flows from operating activities and investing activities for the three months ended March 31, 2016 were corrected for this error. |
7
SILVER SPRING NETWORKS, INC.
UNAUDITED RECONCILIATION OF REVENUE BETWEEN GAAP ANDNON-GAAP (QUARTERLY)
(in thousands, except percentages)
| Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | YoY% Change | |||||||||||||||||||
REVENUE AND BILLINGS BY TYPE | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Product | $ | 32,852 | $ | 69,917 | $ | 50,463 | $ | |||||||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | 11,068 | 24,570 | 14,090 | |||||||||||||||||||||
Professional services | 4,700 | 27,465 | 9,633 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total services | 15,768 | 52,035 | 23,723 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total revenue | $ | 48,620 | $ | 121,952 | $ | 74,186 | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Change in deferred revenue: | ||||||||||||||||||||||||
Product | $ | 12,883 | $ | (23,804 | ) | $ | (568 | ) | $ | $ | ||||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | 1,820 | (9,650 | ) | 1,641 | ||||||||||||||||||||
Professional services | 5,591 | (16,652 | ) | 885 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total services | 7,411 | (26,302 | ) | 2,526 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total change in deferred revenue | $ | 20,294 | $ | (50,106 | ) | $ | 1,958 | $ | $ | |||||||||||||||
Billings: | ||||||||||||||||||||||||
Product | $ | 45,735 | $ | 46,113 | $ | 49,895 | $ | $ | ||||||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | 12,888 | 14,920 | 15,731 | |||||||||||||||||||||
Professional services | 10,291 | 10,813 | 10,518 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total services | 23,179 | 25,733 | 26,249 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Billings | $ | 68,914 | $ | 71,846 | $ | 76,144 | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
REVENUE AND BILLINGS BY SOLUTION | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Advanced metering infrastructure | $ | 40,514 | $ | 105,181 | $ | 66,203 | $ | $ | ||||||||||||||||
New solutions | 8,106 | 16,771 | 7,983 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total revenue | $ | 48,620 | $ | 121,952 | $ | 74,186 | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
% Advanced metering infrastructure | 83 | % | 86 | % | 89 | % | ||||||||||||||||||
% New solutions | 17 | % | 14 | % | 11 | % | ||||||||||||||||||
Change in deferred revenue: | ||||||||||||||||||||||||
Advanced metering infrastructure | $ | 16,957 | $ | (45,184 | ) | $ | (2,078 | ) | $ | $ | ||||||||||||||
New solutions | 3,337 | (4,922 | ) | 4,036 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total change in deferred revenue | $ | 20,294 | $ | (50,106 | ) | $ | 1,958 | $ | $ | |||||||||||||||
Billings: | ||||||||||||||||||||||||
Advanced metering infrastructure | $ | 57,471 | $ | 59,997 | $ | 64,125 | $ | $ | ||||||||||||||||
New solutions | 11,443 | 11,849 | 12,019 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Billings | $ | 68,914 | $ | 71,846 | $ | 76,144 | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
% Advanced metering infrastructure | 83 | % | 84 | % | 84 | % | ||||||||||||||||||
% New solutions | 17 | % | 16 | % | 16 | % | ||||||||||||||||||
REVENUE AND BILLINGS BY GEOGRAPHY | ||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
United States | $ | 45,222 | $ | 118,539 | $ | 43,381 | $ | $ | ||||||||||||||||
International | 3,398 | 3,413 | 30,805 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total revenue | $ | 48,620 | $ | 121,952 | $ | 74,186 | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
% United States | 93 | % | 97 | % | 58 | % | ||||||||||||||||||
% International | 7 | % | 3 | % | 42 | % | ||||||||||||||||||
Change in deferred revenue: | ||||||||||||||||||||||||
United States | $ | 8,468 | $ | (57,666 | ) | $ | 21,085 | $ | $ | |||||||||||||||
International | 11,826 | 7,560 | (19,127 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total change in deferred revenue | $ | 20,294 | $ | (50,106 | ) | $ | 1,958 | $ | $ | |||||||||||||||
Billings: | ||||||||||||||||||||||||
United States | $ | 53,690 | $ | 60,873 | $ | 64,466 | $ | $ | ||||||||||||||||
International | 15,224 | 10,973 | 11,678 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Billings | $ | 68,914 | $ | 71,846 | $ | 76,144 | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
% United States | 78 | % | 85 | % | 85 | % | ||||||||||||||||||
% International | 22 | % | 15 | % | 15 | % | ||||||||||||||||||
8
SILVER SPRING NETWORKS, INC.
UNAUDITED RECONCILIATION OF GAAP TONON-GAAP MEASURES (QUARTERLY)
(in thousands)
| Three Months Ended March 31, 2017 | ||||||||||||||||||||||||
| Cost of Revenue | Change in Deferred Revenue and Deferred Cost of Revenue (a) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Cost of Billings | |||||||||||||||||||
Cost of Revenue: | ||||||||||||||||||||||||
Product | ||||||||||||||||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | ||||||||||||||||||||||||
Professional services | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total services | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Cost of Revenue | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating Expenses | Stock-based | Amortization and | Restructuring & | Acquisition- | Non-GAAP | |||||||
Operating Expenses: | ||||||||||||
Research and development | ||||||||||||
Sales and marketing | ||||||||||||
General and administrative | ||||||||||||
Impairment of acquisition-related intangible assets | ||||||||||||
Restructuring | ||||||||||||
|
|
|
|
|
| |||||||
Total Operating Expenses | ||||||||||||
|
|
|
|
|
|
| Three Months Ended March 31, 2016 | ||||||||||||||||||||||||
| Cost of Revenue | Change in Deferred Revenue and Deferred Cost of Revenue (a) | Stock-based Compensation | Amortization of Intangible Assets | Acquisition- Related Costs | Cost of Billings | |||||||||||||||||||
Cost of Revenue: | ||||||||||||||||||||||||
Product | $ | 15,980 | $ | 8,668 | $ | (351 | ) | $ | (169 | ) | $ | — | $ | 24,128 | ||||||||||
Services | ||||||||||||||||||||||||
Managed services and SaaS | 8,632 | — | (381 | ) | — | (15 | ) | 8,236 | ||||||||||||||||
Professional services | 7,011 | — | (596 | ) | — | — | 6,415 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total services | $ | 15,643 | $ | — | $ | (977 | ) | $ | — | $ | (15 | ) | $ | 14,651 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Cost of Revenue | $ | 31,623 | $ | 8,668 | $ | (1,328 | ) | $ | (169 | ) | $ | (15 | ) | $ | 38,779 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Operating Expenses | Stock-based Compensation | Amortization and Impairment of Intangible Assets | Restructuring & Litigation | Acquisition- Related Costs | Non-GAAP Operating Expenses | |||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Research and development | $ | 15,485 | (2,025 | ) | — | — | (311 | ) | $ | 13,149 | ||||||||||||||
Sales and marketing | 9,550 | (831 | ) | (244 | ) | — | (65 | ) | 8,410 | |||||||||||||||
General and administrative | 10,846 | (2,716 | ) | (8 | ) | — | (125 | ) | 7,997 | |||||||||||||||
Impairment of acquisition-related intangible assets | — | — | — | — | — | — | ||||||||||||||||||
Restructuring | 39 | — | — | (39 | ) | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Operating Expenses | $ | 35,920 | $ | (5,572 | ) | $ | (252 | ) | $ | (39 | ) | $ | (501 | ) | $ | 29,556 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Amounts presented net of foreign currency translation. |
9
SILVER SPRING NETWORKS, INC.
UNAUDITED SUPPLEMENTAL FINANCIAL DATA AND OTHER INFORMATION
(in thousands, except percentages and headcount)
| Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | YoY% Change | |||||||||||||||||||
SUPPLEMENTAL FINANCIAL DATA | ||||||||||||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||||||||||
Cost of goods sold | $ | 1,328 | $ | 1,389 | $ | 2,082 | $ | $ | ||||||||||||||||
Research and development | 2,025 | 2,241 | 2,593 | |||||||||||||||||||||
Sales and marketing | 831 | 726 | 943 | |||||||||||||||||||||
General and administrative | 2,716 | 2,685 | 2,280 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
TOTAL STOCK-BASED COMPENSATION | $ | 6,900 | $ | 7,041 | $ | 7,898 | $ | $ | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
CASH FLOW DATA | ||||||||||||||||||||||||
Operating cash flow | $ | 3,730 | $ | 3,802 | $ | 5,145 | $ | $ | ||||||||||||||||
Operating cash flow - trailing twelve months | 23,872 | 18,061 | 18,934 | |||||||||||||||||||||
BALANCE SHEET DATA | ||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | $ | 125,369 | $ | 113,064 | $ | 113,358 | $ | $ | ||||||||||||||||
OTHER INFORMATION | ||||||||||||||||||||||||
HOME & BUSINESSES | ||||||||||||||||||||||||
Network endpoints delivered during quarter* | 698 | 747 | 569 | |||||||||||||||||||||
Cumulative network endpoints delivered* | 23,652 | 24,399 | 24,968 | |||||||||||||||||||||
*Endpoints refer to communication modules in electric meters | ||||||||||||||||||||||||
EMPLOYEES | 673 | 708 | 709 | |||||||||||||||||||||
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SILVER SPRING NETWORKS, INC.
UNAUDITED SUPPLEMENTAL TRENDED GAAP FINANCIAL DATA
(in thousands)
| Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | ||||||||||||||||
Gross profit | $ | 16,997 | $ | 64,543 | $ | 28,242 | $ | $ | ||||||||||||
Other GAAP financial data related to gross profit: | ||||||||||||||||||||
Change in deferred revenue, net of foreign currency translation | 20,294 | (50,106 | ) | 1,958 | ||||||||||||||||
Change in deferred cost of revenue, net of foreign currency translation | (8,668 | ) | 16,992 | 9,404 | ||||||||||||||||
Amortization of intangible assets | 169 | 195 | 79 | |||||||||||||||||
Stock-based compensation | 1,328 | 1,389 | 2,082 | |||||||||||||||||
Acquisition-related charges | 15 | 16 | 15 | |||||||||||||||||
Operating expenses | $ | 35,920 | $ | 37,794 | $ | 42,461 | $ | $ | ||||||||||||
Other GAAP financial data included in operating expenses: | ||||||||||||||||||||
Amortization of intangible assets | (252 | ) | (180 | ) | (114 | ) | ||||||||||||||
Stock-based compensation | (5,572 | ) | (5,652 | ) | (5,816 | ) | ||||||||||||||
Acquisition-related charges | (501 | ) | (494 | ) | (493 | ) | ||||||||||||||
Impairment of intangible assets | — | — | (2,204 | ) | ||||||||||||||||
Restructuring | (39 | ) | — | — | ||||||||||||||||
Legal settlements | — | — | — | |||||||||||||||||
Other statement of operations line items | ||||||||||||||||||||
Other loss (income), net | $ | (441 | ) | $ | (333 | ) | $ | (113 | ) | $ | $ | |||||||||
Provision (benefit) for income taxes | 32 | 961 | 1,143 | |||||||||||||||||
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