Itron Networked Solutions (SSNI) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Silver Spring Networks Reports Fourth Quarter and

Full Year 2016 Financial Results

San Jose, CA – February 21, 2017 – Silver Spring Networks, Inc. (NYSE: SSNI) today announced preliminary financial results for its fourth quarter and full year ended December 31, 2016.

Fourth Quarter Financial Highlights(all comparisons made are against the prior year period, unless otherwise stated):

GAAP results:

• Revenue was $66.3 million, versus $199.2 million.

• Cost of revenue was $37.8 million, or 57.1% of revenue, versus $97.9 million or 49.1%.

• Operating expense was $41.9 million, versus $35.6 million.

• Tax expense was $0.2 million. Other income (expense) was ($0.2) million.

• Basic share count was 52.0 million. In the case of a net income position, fully-diluted share count would have been 54.4 million.

• Quarter-ending cash, cash equivalents, and short-term investments was $118.3 million.

Non-GAAP metrics¹:

• Billings were $77.7 million, up 4%.

• Cost of billings was $39.0 million or 50.2% of billings, versus $39.6 million or 52.9%.

• Non-GAAP operating expense was $35.3 million, versus $27.4 million.

“We enter 2017 in a strong position, with solid fourth quarter results and several new international awards. In 2016, we achieved record bookings, with major awards from Con Edison, Entergy and Pacific Power, generated over $20.7 million in operating cash flow for the year, and finished the year with more than 25.5 million cumulative network endpoints delivered,” said Mike Bell, President and Chief Executive Officer. “We are focused on ramping production of our Gen5 platform for our major upcoming deployments, driving international growth, and expanding our platform to additional smart utility applications and new vertical markets within the broader Internet of Important Things™ opportunity.”

¹  For this and future earnings reports, Silver Spring Networks will no longer report certainnon-GAAP financial 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 also be used by investors to derive metrics comparable to previously reportednon-GAAP metrics. For more information, please refer to the conference call Silver Spring Networks hosted on February 13, 2017, a replay of which is available on our website at http://ir.ssni.com.

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Business Highlights(through February 21, 2017, unless otherwise stated):

• Over 25.5 million cumulative network endpointsdelivered from inception through December 31, 2016, up 11% from a year ago.

• Working with customers that represent over 26 millionincremental homes and businesses that are piloting or deploying our technology in phases.

• Total backlog of $1.165 billionas of December 31, 2016, up over50% from the end of last year.

• We congratulate AEP Ohio,which recently received regulatory approval for its smart grid program from the Public Utility Commission of Ohio (PUCO), to deploy our multi-application IPv6 IoT network canopy and advanced metering infrastructure to nearly 900,000 homes and businesses in its Ohio service territory.

• Selected by CESC Limited of Indiato deploy our multi-application IPv6 IoT platform to connect approximately 237,000 homes and businesses in CESC’s franchises in the cities of Kota and Bharatpur. Silver Spring Networks will also deploy Operations Optimizer™ to these cities through a SaaS model.

• Selected by Dubai Electricity and Water Authority (DEWA)to deploy our multi-application IoT network canopy across the Emirate of Dubai to securely and reliably provide connectivity for various services, such as energy and water.

• Selected by Oklahoma Gas & Electric (OGE)to deploy our IPv6 IoT platform and Streetlight.Vision control software to connect and manage up to 250,000 LED street lights within its Oklahoma service territory.

• Expanded Starfish™ distribution channel through a reseller alliance with Amerescoto assist cities and other public lighting operators to deliver smart street lighting programs and other IoT applications and services such as smart water, traffic signals and distributed energy resources.

• Extended smart city reach through a newgo-to-market alliance with Panasonic Corporationof North America to leverage our Starfish Internet of Things (IoT) platform and Panasonic’s CityNOW portfolio to transform the street light into amulti-use host for multiple smart and sustainable applications.

Full Year 2016 Results(all comparisons made are against the prior year period, unless otherwise stated)

GAAP Results:

• Revenue was $311.0 million, versus $489.6 million.

• Cost of revenue was $172.8 million, or 55.6% of revenue, versus $263.8 million or 53.9%.

• Operating expense was $158.1 million, versus $142.8 million.

• Tax expense was $2.4 million. Other income (expense) was $0.7 million.

• Basic share count was 51.4 million. In the case of a net income position, fully-diluted share count would have been 53.7 million.

Non-GAAP Metrics:

• Billings were $294.6 million, up 4%.

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• Cost of billings was $150.9 million or 51.2% of billings, versus $159.3 million or 56.5%.

• Non-GAAP operating expense was $130.2 million, versus $114.1 million.

Conference Call

Silver Spring Networks will host a conference call today at 2:00 pm PT (5:00 pm ET) to review its results for the fourth quarter and full year 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 at877-407-0832 (U.S.) or201-689-8433 (International) or via webcast at http://ir.ssni.com. Adial-in replay of the conference call will be available until April 11, 2017 and can be accessed at877-660-6853 (domestic) or201-612-7415 (international) passcode 13653868. 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 25.5 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 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.

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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 and impairment 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 the momentum in Silver Spring Networks’ business; future growth and market opportunity; the scope and timing of future deployments; expected benefits from our products; future investment; future innovation; customer and market activity; and future financial results. 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

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materially from the statements herein include: timing around customer decisions and deployment pace; receipt by our customers of required regulatory approvals; dependence on a limited number of customers and key suppliers; general economic risks; specific economic risks in different geographies and among different industries; failure to maintain or increase renewals and increase business from existing customers; uncertainties around continued success in sales growth and market share gains; the expansion of our target markets, including the IoT market; lengthy sales cycles with no assurances that a prospective customer will select Silver Spring Networks’ products and services; amounts included in backlog may not result in billings or revenue; adverse publicity about, or consumer or political opposition to, the smart grid; security breaches involving smart grid products or services; the ability to integrate technology into third-party devices and Silver Spring Networks’ relationship with third-party manufacturers; execution and customer adoption risks related to new product introductions and innovation, including our fifth generation networking platform and products; the ability to attract and retain personnel, including members of Silver Spring Networks’ management team; changes in strategy; technological changes that make Silver Spring Networks’ products and services less competitive; competition, particularly from larger companies with more resources than Silver Spring; international business uncertainties; the ability to acquire and integrate other businesses; 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’s expectations as of February 21, 2017. Silver Spring 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.

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

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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	$	40,386		$	143,202		$	193,618		$	353,041
Services		25,864			56,045			117,390			136,518
Total revenue		66,250			199,247			311,008			489,559
Cost of revenue:
Product		19,915			83,903			106,583			202,430
Services		17,918			13,999			66,226			61,386
Total cost of revenue		37,833			97,902			172,809			263,816
Gross profit		28,417			101,345			138,199			225,743
Operating expenses:
Research and development		19,090			13,714			70,673			61,295
Sales and marketing		10,809			7,343			39,406			33,452
General and administrative		12,049			14,483			45,801			46,372
Impairment of intangible assets		—			—			2,204			—
Restructuring		—			60			39			1,671
Total operating expenses		41,948			35,600			158,123			142,790
Operating (loss) income		(13,531	)		65,745			(19,924	)		82,953
Other (expense) income, net		(217	)		(159	)		670			104
(Loss) income before income taxes		(13,748	)		65,586			(19,254	)		83,057
Provision for income taxes		(239	)		(3,708	)		(2,375	)		(3,071	)
Net (loss) income	$	(13,987	)	$	61,878		$	(21,629	)	$	79,986
Net (loss) income per share:
Basic	$	(0.27	)	$	1.23		$	(0.42	)	$	1.60
Diluted	$	(0.27	)	$	1.19		$	(0.42	)	$	1.55
Weighted average shares used to compute net (loss) income per share:
Basic		52,039			50,481			51,444			49,963
Diluted		52,039			52,167			51,444			51,524

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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	$	50,383		$	65,264
Short-term investments		67,876			59,181
Accounts receivable		44,770			47,813
Inventory		8,040			4,545
Deferred cost of revenue		194,769			196,868
Prepaid expenses and other current assets		12,536			10,835
Total current assets		378,374			384,506
Property and equipment, net		28,986			14,106
Goodwill and intangible assets		11,005			14,390
Deferred cost of revenue, non-current		26,639			38,882
Deferred tax assets, non-current		481			1,069
Other long-term assets		1,643			4,772
Total assets	$	447,128		$	457,725
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	26,785		$	30,623
Deferred revenue		292,260			305,471
Accrued and other liabilities		44,146			42,751
Total current liabilities		363,191			378,845
Deferred revenue, non-current		93,149			96,342
Other liabilities, non-current		22,324			16,403
Total liabilities		478,664			491,590
Total stockholders’ deficit		(31,536	)		(33,865	)
Total liabilities and stockholders’ deficit	$	447,128		$	457,725

(a) Derived from audited consolidated financial statements.

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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 (loss) income	$	(13,987	)	$	61,878		$	(21,629	)	$	79,986
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Deferred taxes		520			(557	)		614			(1,492	)
Impairment of intangible assets		—			—			2,204			—
Depreciation and amortization		2,291			1,930			8,623			7,822
Tax benefit from shared-based award activity		83			153			83			153
Excess tax benefit from share-based payment awards		(83	)		(153	)		(83	)		(153	)
Stock-based compensation		7,970			4,942			29,809			26,479
Other non-cash adjustments		114			412			886			766
Changes in assets and liabilities:
Accounts receivable		316			(3,675	)		3,142			7,398
Inventory		(2,740	)		(853	)		(3,490	)		2,190
Prepaid expenses and other assets		(622	)		(936	)		2,335			(5,128	)
Landlord incentives related to lease		—			—			6,788			—
Contingent consideration related to Detectent acquisition held in escrow		—			—			—			(4,000	)
Deferred cost of revenue		(3,174	)		56,978			14,421			97,286
Accounts payable		4,425			3,232			(4,483	)		3,101
Customer deposits		(970	)		(599	)		61			(448	)
Deferred revenue		11,480			(124,115	)		(16,581	)		(208,305	)
Accrued and other liabilities		2,462			7,620			(1,938	)		14,032
Net cash provided by operating activities		8,085			6,257			20,762			19,687
INVESTING ACTIVITIES
Payments for business acquisition, net of cash and cash equivalents acquired		—			—			—			(7,098	)
Proceeds from sales of available-for-sale investments		2,000			4,204			41,217			15,690
Proceeds from maturities of available-for-sale investments		—			—			10,970			9,250
Purchases of available-for-sale investments		(4,940	)		(5,270	)		(61,295	)		(24,180	)
Purchases of property and equipment		(1,447	)		(1,821	)		(24,816	)		(5,350	)
Net cash (used in) investing activities		(4,387	)		(2,887	)		(33,924	)		(11,688	)
FINANCING ACTIVITIES
Payments on capital lease obligations		—			(169	)		(285	)		(1,163	)
Proceeds from issuance of common stock		281			139			4,519			3,794
Excess tax benefit from share-based payment awards		83			153			83			153
Taxes paid related to net share settlement of equity awards		(1,756	)		(1,820	)		(5,925	)		(5,788	)
Net cash (used in) financing activities		(1,392	)		(1,697	)		(1,608	)		(3,004	)
Effect of exchange rate changes on cash and cash equivalents		29			136			(111	)		(188	)
Net increase (decrease) in cash and cash equivalents		2,335			1,809			(14,881	)		4,807
Cash and cash equivalents - beginning of period		48,048			63,455			65,264			60,457
Cash and cash equivalents - end of period	$	50,383		$	65,264		$	50,383		$	65,264

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SILVER SPRING NETWORKS, INC.

UNAUDITED RECONCILIATION OF REVENUE BETWEEN GAAP AND NON-GAAP (QUARTERLY)

(in thousands, except percentages)

REVENUE AND BILLINGS BY TYPE	Q4 2015			Q1 2016			Q2 2016			Q3 2016			Q4 2016			YoY% Change
Revenue:
Product	$	143,202		$	32,852		$	69,917		$	50,463		$	40,386			-72	%
Services
Managed services and SaaS		37,142			11,068			24,570			14,090			15,581			-58	%
Professional services		18,903			4,700			27,465			9,633			10,283			-46	%
Total services		56,045			15,768			52,035			23,723			25,864			-54	%
Total revenue	$	199,247		$	48,620		$	121,952		$	74,186		$	66,250			-67	%
% Product		72	%		68	%		57	%		68	%		61	%
% Services		28	%		32	%		43	%		32	%		39	%
Change in deferred revenue:
Product	$	(95,194	)	$	12,883		$	(23,804	)	$	(568	)	$	7,155
Services
Managed services and SaaS		(22,896	)		1,820			(9,650	)		1,641			1,427
Professional services		(6,169	)		5,591			(16,652	)		885			2,867
Total services		(29,065	)		7,411			(26,302	)		2,526			4,294
Total change in deferred revenue	$	(124,259	)	$	20,294		$	(50,106	)	$	1,958		$	11,449
Billings
Product	$	48,008		$	45,735		$	46,113		$	49,895		$	47,541			-1	%
Services
Managed services and SaaS		14,246			12,888			14,920			15,731			17,008			19	%
Professional services		12,734			10,291			10,813			10,518			13,150			3	%
Total services		26,980			23,179			25,733			26,249			30,158			12	%
Total Billings	$	74,988		$	68,914		$	71,846		$	76,144		$	77,699			4	%
% Product		64	%		66	%		64	%		66	%		61	%
% Services		36	%		34	%		36	%		34	%		39	%
REVENUE AND BILLINGS BY SOLUTION
Revenue:
Advanced metering infrastructure	$	181,892		$	40,514		$	105,181		$	66,203		$	57,148			-69	%
New solutions		17,355			8,106			16,771			7,983			9,102			-48	%
Total revenue	$	199,247		$	48,620		$	121,952		$	74,186		$	66,250			-67	%
% Advanced metering infrastructure		91	%		83	%		86	%		89	%		86	%
% New solutions		9	%		17	%		14	%		11	%		14	%
Change in deferred revenue
Advanced metering infrastructure	$	(123,525	)	$	16,957		$	(45,184	)	$	(2,078	)	$	2,528
New solutions		(734	)		3,337			(4,922	)		4,036			8,921
Total change in deferred revenue	$	(124,259	)	$	20,294		$	(50,106	)	$	1,958		$	11,449
Billings
Advanced metering infrastructure	$	58,367		$	57,471		$	59,997		$	64,125		$	59,676			2	%
New solutions		16,621			11,443			11,849			12,019			18,023			8	%
Total Billings	$	74,988		$	68,914		$	71,846		$	76,144		$	77,699			4	%
% Advanced metering infrastructure		78	%		83	%		84	%		84	%		77	%
% New solutions		22	%		17	%		16	%		16	%		23	%
REVENUE AND BILLINGS BY GEOGRAPHY
Revenue:
United States	$	177,896		$	45,222		$	118,539		$	43,381		$	53,087			-70	%
International		21,351			3,398			3,413			30,805			13,163			-38	%
Total revenue	$	199,247		$	48,620		$	121,952		$	74,186		$	66,250			-67	%
% United States		89	%		93	%		97	%		58	%		80	%
% International		11	%		7	%		3	%		42	%		20	%
Change in deferred revenue
United States	$	(116,859	)	$	8,468		$	(57,666	)	$	21,085		$	8,880
International		(7,400	)		11,826			7,560			(19,127	)		2,569
Total change in deferred revenue	$	(124,259	)	$	20,294		$	(50,106	)	$	1,958		$	11,449
Billings
United States	$	61,037		$	53,690		$	60,873		$	64,466		$	61,967			2	%
International		13,951			15,224			10,973			11,678			15,732			13	%
Total Billings	$	74,988		$	68,914		$	71,846		$	76,144		$	77,699			4	%
% United States		81	%		78	%		85	%		85	%		80	%
% International		19	%		22	%		15	%		15	%		20	%

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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 Cost of Revenue (a)			Stock-based Compensation			Amortization of Intangible Assets			Acquisition- Related Costs			Cost of Billings
Cost of Revenue / Cost of Billings:
Product	$	19,915	$	3,177		$	(455	)	$	(79	)	$	—		$	22,558
Services
Managed services and SaaS		9,762		—			(680	)		—			—			9,082
Professional services		8,156		—			(810	)		—			(15	)		7,331
Total services	$	17,918	$	—		$	(1,490	)	$	—		$	(15	)	$	16,413
Total Cost of Revenue / Cost of Billings	$	37,833	$	3,177		$	(1,945	)	$	(79	)	$	(15	)	$	38,971
	Operating Expenses		Stock-based Compensation			Amortization and Impairment of Intangible Assets			Restructuring & Litigation			Acquisition- Related Costs			Non-GAAP Operating Expenses
Operating Expenses /Non-GAAP Operating Expenses:
Research and development	$	19,090	$	(2,450	)	$	—		$	—		$	(311	)	$	16,329
Sales and marketing		10,809		(1,152	)		(105	)		—			(66	)		9,486
General and administrative		12,049		(2,423	)		(8	)		—			(117	)		9,501
Impairment of intangible assets		—		—			—			—			—			—
Restructuring		—		—			—			—			—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	41,948	$	(6,025	)	$	(113	)	$	—		$	(494	)	$	35,316
	Three Months Ended December 31, 2015
	Cost of Revenue		Change in Deferred Cost of Revenue (a)			Stock-based Compensation			Amortization of Intangible Assets			Acquisition- Related Costs			Cost of Billings
Cost of Revenue / Cost of Billings:
Product	$	83,903	$	(56,982	)	$	(250	)	$	(259	)	$	—		$	26,412
Services
Managed services and SaaS		7,592		—			(271	)		—			—			7,321
Professional services		6,407		—			(485	)		—			(15	)		5,907
Total services	$	13,999	$	—		$	(756	)	$	—		$	(15	)	$	13,228
Total Cost of Revenue / Cost of Billings	$	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 /Non-GAAP 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 intangible assets		—		—			—			—			—			—
Restructuring		60		—			—			(60	)		—			—
Total Operating Expenses /Non-GAAP 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 Cost of Revenue (a)			Stock-based Compensation			Amortization of Intangible Assets			Acquisition- Related Costs			Cost of Billings
Cost of Revenue / Cost of Billings:
Product	$	106,583	$	(14,551	)	$	(1,737	)	$	(522	)	$	—		$	89,773
Services
Managed services and SaaS		36,772		—			(2,415	)		—			—			34,357
Professional services		29,454		—			(2,592	)		—			(61	)		26,801
Total services	$	66,226	$	—		$	(5,007	)	$	—		$	(61	)	$	61,158
Total Cost of Revenue / Cost of Billings	$	172,809	$	(14,551	)	$	(6,744	)	$	(522	)	$	(61	)	$	150,931
	Operating Expenses		Stock-based Compensation			Amortization and Impairment of Intangible Assets			Restructuring & Litigation			Acquisition- Related Costs			Non-GAAP Operating Expenses
Operating Expenses /Non-GAAP Operating Expenses:
Research and development	$	70,673	$	(9,309	)	$	—		$	—		$	(1,243	)	$	60,121
Sales and marketing		39,406		(3,652	)		(626	)		—			(262	)		34,866
General and administrative		45,801		(10,104	)		(33	)		—			(477	)		35,187
Impairment of intangible assets		2,204		—			(2,204	)		—			—			—
Restructuring		39		—			—			(39	)		—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	158,123	$	(23,065	)	$	(2,863	)	$	(39	)	$	(1,982	)	$	130,174
						��
	Twelve Months Ended December 31, 2015
	Cost of Revenue		Change in Deferred Cost of Revenue (a)			Stock-based Compensation			Amortization of Intangible Assets			Acquisition- Related Costs			Cost of Billings
Cost of Revenue / Cost of Billings:
Product	$	202,430	$	(97,274	)	$	(1,288	)	$	(1,041	)	$	—		$	102,827
Services
Managed services and SaaS		31,663		—			(2,037	)		—			—			29,626
Professional services		29,723		—			(2,810	)		—			(100	)		26,813
Total services	$	61,386	$	—		$	(4,847	)	$	—		$	(100	)	$	56,439
Total Cost of Revenue / Cost of Billings	$	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 /Non-GAAP 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 intangible assets		—		—			—			—			—			—
Restructuring		1,671		—			—			(1,671	)		—			—
Total Operating Expenses /Non-GAAP 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	$	1,945		93	%
Research and development		1,277		2,025		2,241		2,593		2,450		92	%
Sales and marketing		665		831		726		943		1,152		73	%
General and administrative		1,994		2,716		2,685		2,280		2,423		22	%
TOTAL STOCK-BASED COMPENSATION	$	4,942	$	6,900	$	7,041	$	7,898	$	7,970		61	%
CASH FLOW DATA
Operating cash flow	$	6,257	$	3,730	$	3,802	$	5,145	$	8,085		29	%
Operating cash flow - trailing twelve months		19,687		23,872		18,061		18,934		20,762		5	%
BALANCE SHEET DATA
Cash, cash equivalents and short-term investments	$	124,445	$	125,369	$	113,064	$	113,358	$	118,259		-5	%
OTHER INFORMATION
HOMES & BUSINESSES
Network endpoints delivered during quarter*		633		698		747		569		564		-11	%
Cumulative network endpoints delivered*		22,954		23,652		24,399		24,968		25,532		11	%
*Endpoints refer to communication modules in electric meters
EMPLOYEES		652		673		708		709		702		8	%

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		$	28,417
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			11,449
Change in deferred cost of revenue, net of foreign currency translation		56,982			(8,668	)		16,992			9,404			(3,177	)
Amortization of intangible assets		259			169			195			79			79
Stock-based compensation		1,006			1,328			1,389			2,082			1,945
Acquisition-related charges		15			15			16			15			15
Operating expenses	$	35,600		$	35,920		$	37,794		$	42,461		$	41,948
Other GAAP financial data included in operating expenses:
Amortization of intangible assets		163			252			180			114			113
Stock-based compensation		3,936			5,572			5,652			5,816			6,025
Acquisition-related charges		491			501			494			493			494
Impairment of intangible assets		—			—			—			2,204			—
Restructuring		60			39			—			—			—
Legal settlements		3,595			—			—			—			—
Other statement of operations line items
Other (expense) income, net	$	(159	)	$	441		$	333		$	113		$	(217	)
Provision for income taxes		(3,708	)		(32	)		(961	)		(1,143	)		(239	)

13