Itron Networked Solutions (SSNI) 8-K Silver Spring Networks Reports Second Quarter 2017 Financial Results

Exhibit 99.1

Silver Spring Networks Reports Second Quarter 2017 Financial Results

San Jose, CA – August 8, 2017 – Silver Spring Networks, Inc. (NYSE: SSNI) today announced preliminary financial results for its second quarter ended June 30, 2017.

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

GAAP results:

• Revenue was $261.6 million, up 114.5% year-over-year.

• Cost of revenue was $205.0 million, or 78.4% of revenue, versus $57.4 million or 47.1% in the second quarter of 2016.

• Operating expense was $38.3 million including a $1.2 million restructuring charge, versus $37.8 million in the second quarter of 2016.

• Net income per diluted share was $0.34, versus $0.50 in the second quarter of last year.

• Quarter-ending cash, cash equivalents, and short-term investments was $117.8 million versus $113.1 million in the second quarter of 2016.

• Cash flow from operations was $3.0 million, versus $3.8 million in the second quarter of 2016.

Non-GAAP metrics:

• Billings were $78.7 million, up 9.6% year-over-year.

• Cost of billings was $43.4 million or 55.2% of billings, versus $38.8 million or 54.0% in the second quarter of 2016.

• Non-GAAP operating expense was $31.8 million, versus $31.5 million in the second quarter of 2016.

“In the second quarter, we delivered solid revenue, $3.0 million in cash flow from operations, and 9.6% growth in billings,” said Mike Bell, President and Chief Executive Officer, Silver Spring Networks. “We are ramping our new customer programs, winning additional smart utility and smart city awards, and driving our technology into the broader Industrial Internet of Things opportunity.”

Business Highlights(through August 8, 2017, unless otherwise stated):

• Silver Spring Networks has delivered more than 26.7 millioncumulative network endpoints since inception through June 30, 2017, up 9% from a year ago.

• Agreed to work with ESB Telecoms Ltd to develop a national Internet of Things (IoT) network, based on our Starfish™ standards-based Platform-as-a-Service solution, across Ireland.

• Selected by Pepco Holdings, Inc. (PHI) for a Distribution Automation deployment,an extension of its existing smart grid investment, to further improve grid reliability and operational efficiency with connectivity solutions for intelligent grid devices throughout PHI’s service territory in Delaware, Maryland, and Washington D.C.

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• Expanded our Starfish Platform-as-a-Service award in London, for an additional 28,000 street lights to be connected to new areas including the City of London, and the Borough of Barking and Dagenham, through our reseller agreement with urbancontrol.

• Progressing with the network canopy installation for Dubai Electric & Water Authority (DEWA),to cover the Emirate of Dubai with Silver Spring’s IPv6 IoT communications platform. Silver Spring’s Gen5 technology will be integrated into smart electric meter devices from Honeywell Elster, which will be used to connect the first DEWA electric customers to the canopy.

• The City of Chicago and our reseller partner, Ameresco, have finalized the contract to connect more than 250,000 street lights in what is believed to be the largest city-led wireless street lighting project in the U.S.

• Expanded our relationship with Jamaica Public Service Company (JPS) to connect up to 110,000 street lights on the island of Jamaica.

• Selected by Grant County Public Utility District for an AMI deployment to connect approximately 47,000 homes and businesses in Central Washington and the Pacific Northwest.

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 second quarter ended June 30, 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 at 877-407-0832 (U.S.) or 201-689-8433 (International) or via webcast athttp://ir.ssni.com/. A dial-in replay of the conference call will be available until September 26, 2017 and can be accessed at 877-660-6853 (domestic) or 201-612-7415 (international) passcode 13666523. An audio webcast replay of the conference call will be available for one year athttp://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 26.7 million devices delivered, Silver Spring 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 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 certain non-GAAP metrics. Silver Spring Networks manages its business, makes planning decisions, evaluates its performance and allocates resources by assessing non-GAAP and other financial metrics such as billings, cost of billings, non-GAAP operating expense, and total backlog. Silver Spring Networks believes that these non-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

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profitability trends, as well as the cash flow characteristics, of its business. The non-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 significant non-recurring items that arise in the future should also be excluded in calculating the non-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 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; our expected project with ESB Telecoms Ltd; 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 materially from the statements herein include: timing around customer decisions, deployment pace, and acceptances; changes in the type and mix of products and services sold; receipt by our customers and partners of

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required regulatory or other approvals; dependence on a limited number of customers, as well as our ability to achieve scale in our customers’ deployments; dependence on a limited number of key suppliers and our ability to obtain sufficient quantities of components from those suppliers; failure to realize cost savings and benefits of our restructuring plan; failure to manage our growth successfully or our operating expenses effectively; 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; 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; the successful negotiation and execution of definitive agreements related to our project with ESB Telecoms, Ltd; 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 August 8, 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					Six Months Ended
	June 30,					June 30,
	2017		2016			2017			2016
Revenue:
Product	$	214,713	$	69,917		$	241,241		$	102,769
Services		46,859		52,035			70,594			67,803
Total revenue		261,572		121,952			311,835			170,572
Cost of revenue:
Product		186,491		41,439			202,518			57,419
Services		18,543		15,970			35,866			31,613
Total cost of revenue		205,034		57,409			238,384			89,032
Gross profit		56,538		64,543			73,451			81,540
Operating expenses:
Research and development		17,272		17,933			35,913			33,418
Sales and marketing		8,893		8,622			17,996			18,172
General and administrative		10,881		11,239			23,147			22,085
Restructuring		1,207		—			1,254			39
Total operating expenses		38,253		37,794			78,310			73,714
Operating income (loss)		18,285		26,749			(4,859	)		7,826
Other income, net		9		333			552			774
Income (loss) before income taxes		18,294		27,082			(4,307	)		8,600
Benefit (provision) for income taxes		332		(961	)		(238	)		(993	)
Net income (loss)	$	18,626	$	26,121		$	(4,545	)	$	7,607
Net income (loss) per share:
Basic	$	0.35	$	0.51		$	(0.09	)	$	0.15
Diluted	$	0.34	$	0.50		$	(0.09	)	$	0.14
Weighted average shares used to compute net income (loss) per share:
Basic		53,329		51,224			52,970			50,992
Diluted		54,174		52,766			52,970			52,492

SILVER SPRING NETWORKS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	June 30,			December 31,
	2017			2016 (a)
ASSETS
Current assets:
Cash and cash equivalents	$	51,133		$	50,383
Short-term investments		66,712			67,876
Accounts receivable		51,719			44,770
Inventory		5,288			8,040
Deferred cost of revenue		32,846			194,769
Prepaid expenses and other current assets		11,361			12,536
Total current assets		219,059			378,374
Property and equipment, net		25,978			28,986
Goodwill and intangible assets		10,620			11,005
Deferred cost of revenue,non-current		36,906			26,639
Deferred tax assets,non-current		496			481
Other long-term assets		2,575			1,643
Total assets	$	295,634		$	447,128
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	30,428		$	26,785
Deferred revenue		96,916			292,260
Accrued and other liabilities		42,180			44,146
Total current liabilities		169,524			363,191
Deferred revenue,non-current		123,063			93,149
Other liabilities		23,332			22,324
Total liabilities		315,919			478,664
Total stockholders’ deficit		(20,285	)		(31,536	)
Total liabilities and stockholders’ deficit	$	295,634		$	447,128

(a) Derived from audited consolidated financial statements.

SILVER SPRING NETWORKS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(in thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
OPERATING ACTIVITIES
Net income (loss)	$	18,626		$	26,121		$	(4,545	)	$	7,607
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred taxes		9			111			(16	)		111
Depreciation and amortization		2,232			2,104			4,477			4,236
Stock-based compensation		7,032			7,041			13,689			13,941
Othernon-cash adjustments		106			53			187			113
Changes in assets and liabilities:
Accounts receivable		(3,419	)		(3,117	)		(6,979	)		859
Inventory		234			1,591			2,752			2,061
Prepaid expenses and other assets		(3,162	)		(264	)		(3,642	)		1,944
Landlord incentives related to lease		—			2,275			883			2,275
Deferred cost of revenue		159,618			17,040			151,617			8,236
Accounts payable		825			561			4,220			1,174
Customer deposits		68			(1	)		132			(6	)
Deferred revenue		(183,036	)		(50,042	)		(165,364	)		(29,988	)
Accrued and other liabilities		3,875			329			7,122			(5,031	)
Net cash provided by operating activities		3,008			3,802			4,533			7,532
INVESTING ACTIVITIES
Proceeds from sales ofavailable-for-sale investments		2,549			18,111			2,549			22,944
Proceeds from maturities ofavailable-for-sale investments		4,200			1,250			5,200			2,250
Purchases ofavailable-for-sale investments		(6,212	)		(7,515	)		(6,712	)		(10,954	)
Purchases of property and equipment		(673	)		(12,759	)		(1,750	)		(17,244	)
Net cash used for investing activities		(136	)		(913	)		(713	)		(3,004	)
FINANCING ACTIVITIES
Payments on capital lease obligations		—			(141	)		—			(285	)
Proceeds from issuance of common stock		265			340			2,811			2,228
Taxes paid related to net share settlement of equity awards		(1,402	)		(3,286	)		(5,948	)		(3,620	)
Net cash used for financing activities		(1,137	)		(3,087	)		(3,137	)		(1,677	)
Effect of exchange rate changes on cash and cash equivalents		123			(234	)		67			(136	)
Net increase (decrease) in cash and cash equivalents		1,858			(432	)		750			2,715
Cash and cash equivalents - beginning of period		49,275			68,411			50,383			65,264
Cash and cash equivalents - end of period	$	51,133		$	67,979		$	51,133		$	67,979

SILVER SPRING NETWORKS, INC.

UNAUDITED RECONCILIATION OF REVENUE BETWEEN GAAP ANDNON-GAAP (QUARTERLY)

(in thousands, except percentages)

	Q2			Q3			Q4			Q1			Q2			YoY%
REVENUE AND BILLINGS BY TYPE	2016			2016			2016			2017			2017			Change
Revenue:
Product	$	69,917		$	50,463		$	40,386		$	26,528		$	214,713			207	%
Services
Managed services and SaaS		24,570			14,090			15,581			14,101			27,350			11	%
Professional services		27,465			9,633			10,283			9,634			19,509			-29	%
Total services		52,035			23,723			25,864			23,735			46,859			-10	%
Total revenue	$	121,952		$	74,186		$	66,250		$	50,263		$	261,572			114	%
% Product		57	%		68	%		61	%		53	%		82	%
% Services		43	%		32	%		39	%		47	%		18	%
Change in deferred revenue:
Product	$	(23,804	)	$	(568	)	$	7,155		$	16,102		$	(165,071	)
Services
Managed services and SaaS		(9,650	)		1,641			1,427			1,802			(11,298	)
Professional services		(16,652	)		885			2,867			(215	)		(6,454	)
Total services		(26,302	)		2,526			4,294			1,587			(17,752	)
Total change in deferred revenue	$	(50,106	)	$	1,958		$	11,449		$	17,689		$	(182,823	)
Billings
Product	$	46,113		$	49,895		$	47,541		$	42,630		$	49,642			8	%
Services
Managed services and SaaS		14,920			15,731			17,008			15,903			16,052			8	%
Professional services		10,813			10,518			13,150			9,419			13,055			21	%
Total services		25,733			26,249			30,158			25,322			29,107			13	%
Total Billings	$	71,846		$	76,144		$	77,699		$	67,952		$	78,749			10	%
% Product		64	%		66	%		61	%		63	%		63	%
% Services		36	%		34	%		39	%		37	%		37	%
REVENUE AND BILLINGS BY SOLUTION
Revenue:
Advanced metering infrastructure	$	105,181		$	66,203		$	57,148		$	41,072		$	254,433			142	%
New solutions		16,771			7,983			9,102			9,191			7,139			-57	%
Total revenue	$	121,952		$	74,186		$	66,250		$	50,263		$	261,572			114	%
% Advanced metering infrastructure		86	%		89	%		86	%		82	%		97	%
% New solutions		14	%		11	%		14	%		18	%		3	%
Change in deferred revenue
Advanced metering infrastructure	$	(45,184	)	$	(2,078	)	$	2,531		$	12,607		$	(188,584	)
New solutions		(4,922	)		4,036			8,918			5,082			5,761
Total change in deferred revenue	$	(50,106	)	$	1,958		$	11,449		$	17,689		$	(182,823	)
Billings
Advanced metering infrastructure	$	59,997		$	64,125		$	59,679		$	53,679		$	65,849			10	%
New solutions		11,849			12,019			18,020			14,273			12,900			9	%
Total Billings	$	71,846		$	76,144		$	77,699		$	67,952		$	78,749			10	%
% Advanced metering infrastructure		84	%		84	%		77	%		79	%		84	%
% New solutions		16	%		16	%		23	%		21	%		16	%
REVENUE AND BILLINGS BY GEOGRAPHY
Revenue:
United States	$	118,539		$	43,381		$	53,087		$	46,331		$	257,957			118	%
International		3,413			30,805			13,163			3,932			3,615			6	%
Total revenue	$	121,952		$	74,186		$	66,250		$	50,263		$	261,572			14	%
% United States		97	%		58	%		80	%		92	%		99	%
% International		3	%		42	%		20	%		8	%		1	%
Change in deferred revenue
United States	$	(57,666	)	$	21,085		$	8,880		$	11,621		$	(189,243	)
International		7,560			(19,127	)		2,569			6,068			6,420
Total change in deferred revenue	$	(50,106	)	$	1,958		$	11,449		$	17,689		$	(182,823	)
Billings
United States	$	60,873		$	64,466		$	61,967		$	57,952		$	68,714			13	%
International		10,973			11,678			15,732			10,000			10,035			-9	%
Total Billings	$	71,846		$	76,144		$	77,699		$	67,952		$	78,749			10	%
% United States		85	%		85	%		80	%		85	%		87	%
% International		15	%		15	%		20	%		15	%		13	%

SILVER SPRING NETWORKS, INC.

UNAUDITED RECONCILIATION OF GAAP TONON-GAAP MEASURES (QUARTERLY)

(in thousands)

	Three Months Ended June 30, 2017
	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	$	186,491	$	(159,588	)	$	(461	)	$	(80	)	$	—		$	26,362
Services
Managed services and SaaS		9,619		—			(668	)		—			—			8,951
Professional services		8,924		—			(792	)		—			1			8,133
Total services	$	18,543	$	—		$	(1,460	)	$	—		$	1		$	17,084
Total Cost of Revenue / Cost of Billings	$	205,034	$	(159,588	)	$	(1,921	)	$	(80	)	$	1		$	43,446
	Operating Expenses		Stock-based Compensation			Amortization of Intangible Assets			Restructuring & Litigation			Acquisition- Related Costs			Non-GAAP Operating Expenses
Operating Expenses /Non-GAAP Operating Expenses:
Research and development	$	17,272	$	(2,134	)	$	—		$	—		$	1		$	15,139
Sales and marketing		8,893		(657	)		(104	)		—			(2	)		8,130
General and administrative		10,881		(2,320	)		(8	)		—			—			8,553
Restructuring		1,207		—			—			(1,207	)		—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	38,253	$	(5,111	)	$	(112	)	$	(1,207	)	$	(1	)	$	31,822
	Three Months Ended June 30, 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	$	41,439	$	(16,992	)	$	(415	)	$	(195	)	$	—		$	23,837
Services
Managed services and SaaS		8,900		—			(606	)		—			—			8,294
Professional services		7,070		—			(368	)		—			(16	)		6,686
Total services	$	15,970	$	—		$	(974	)	$	—		$	(16	)	$	14,980
Total Cost of Revenue / Cost of Billings	$	57,409	$	(16,992	)	$	(1,389	)	$	(195	)	$	(16	)	$	38,817
	Operating Expenses		Stock-based Compensation			Amortization of Intangible Assets			Restructuring & Litigation			Acquisition- Related Costs			Non-GAAP Operating Expenses
Operating Expenses /Non-GAAP Operating Expenses:
Research and development	$	17,933	$	(2,241	)	$	—		$	—		$	(310	)	$	15,382
Sales and marketing		8,622		(726	)		(172	)		—			(66	)		7,658
General and administrative		11,239		(2,685	)		(8	)		—			(118	)		8,428
Restructuring		—		—			—			—			—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	37,794	$	(5,652	)	$	(180	)	$	—		$	(494	)	$	31,468

(a) Amounts presented net of foreign currency translation.

SILVER SPRING NETWORKS, INC.

UNAUDITED RECONCILIATION OF GAAP TONON-GAAP MEASURES (YEAR TO DATE)

(in thousands)

	Six Months Ended June 30, 2017
	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	$	202,518	$	(151,630	)	$	(901	)	$	(159	)	$	—		$	49,828
Services
Managed services and SaaS		19,460		—			(1,358	)		—			12			18,114
Professional services		16,406		—			(1,468	)		—			(3	)		14,935
Total services	$	35,866	$	—		$	(2,826	)	$	—		$	9		$	33,049
Total Cost of Revenue / Cost of Billings	$	238,384	$	(151,630	)	$	(3,727	)	$	(159	)	$	9		$	82,877
	Operating Expenses		Stock-based Compensation			Amortization of Intangible Assets			Restructuring & Litigation			Acquisition- Related Costs			Non-GAAP Operating Expenses
Operating Expenses /Non-GAAP Operating Expenses:
Research and development	$	35,913	$	(4,192	)	$	—		$	—		$	(45	)	$	31,676
Sales and marketing		17,996		(1,163	)		(210	)		—			(11	)		16,612
General and administrative		23,147		(4,607	)		(16	)		—			(19	)		18,505
Restructuring		1,254		—			—			(1,254	)		—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	78,310	$	(9,962	)	$	(226	)	$	(1,254	)	$	(75	)	$	66,793
	Six Months Ended June 30, 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	$	57,419	$	(8,324	)	$	(767	)	$	(364	)	$	—		$	47,964
Services
Managed services and SaaS		17,532		—			(1,001	)		—			—			16,531
Professional services		14,081		—			(949	)		—			(31	)		13,101
Total services	$	31,613	$	—		$	(1,950	)	$	—		$	(31	)	$	29,632
Total Cost of Revenue / Cost of Billings	$	89,032	$	(8,324	)	$	(2,717	)	$	(364	)	$	(31	)	$	77,596
	Operating Expenses		Stock-based Compensation			Amortization of Intangible Assets			Restructuring & Litigation			Acquisition- Related Costs			Non-GAAP Operating Expenses
Operating Expenses /Non-GAAP Operating Expenses:
Research and development	$	33,418	$	(4,267	)	$	—		$	—		$	(621	)	$	28,530
Sales and marketing		18,172		(1,557	)		(415	)		—			(131	)		16,069
General and administrative		22,085		(5,400	)		(17	)		—			(243	)		16,425
Restructuring		39		—			—			(39	)		—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	73,714	$	(11,224	)	$	(432	)	$	(39	)	$	(995	)	$	61,024

(a) Amounts presented net of foreign currency translation.

SILVER SPRING NETWORKS, INC.

UNAUDITED SUPPLEMENTAL FINANCIAL DATA AND OTHER INFORMATION

(in thousands, except percentages and headcount)

	Q2		Q3		Q4		Q1		Q2		YoY%
SUPPLEMENTAL FINANCIAL DATA	2016		2016		2016		2017		2017		Change
STOCK-BASED COMPENSATION
Cost of goods sold	$	1,389	$	2,082	$	1,945	$	1,806	$	1,921		38	%
Research and development		2,241		2,593		2,450		2,058		2,134		-5	%
Sales and marketing		726		943		1,152		506		657		-10	%
General and administrative		2,685		2,280		2,423		2,287		2,320		-14	%
TOTAL STOCK-BASED COMPENSATION	$	7,041	$	7,898	$	7,970	$	6,657	$	7,032		0	%
CASH FLOW DATA
Operating cash flow	$	3,802	$	5,145	$	8,085	$	1,525	$	3,008		-21	%
Operating cash flow - trailing twelve months		18,061		18,934		20,762		18,557		17,763		-2	%
BALANCE SHEET DATA
Cash, cash equivalents and short-term investments	$	113,064	$	113,358	$	118,259	$	116,620	$	117,845		4	%
OTHER INFORMATION
HOMES & BUSINESSES
Network endpoints delivered during quarter*		747		569		564		511		670		-10	%
Cumulative network endpoints delivered*		24,399		24,968		25,532		26,043		26,713		9	%
*Endpoints refer to communication modules in electric meters
EMPLOYEES		708		709		702		704		646		-9	%

SILVER SPRING NETWORKS, INC.

UNAUDITED SUPPLEMENTAL TRENDED GAAP FINANCIAL DATA

(in thousands)

	Q2			Q3			Q4			Q1			Q2
	2016			2016			2016			2017			2017
Gross profit	$	64,543		$	28,242		$	28,417		$	16,913		$	56,538
Other GAAP financial data related to gross profit:
Change in deferred revenue, net of foreign currency translation		(50,106	)		1,958			11,449			17,689			(182,823	)
Change in deferred cost of revenue, net of foreign currency translation		16,992			9,404			(3,177	)		(7,958	)		159,588
Amortization of intangible assets		195			79			79			79			80
Stock-based compensation		1,389			2,082			1,945			1,806			1,921
Acquisition-related charges		16			15			15			(8	)		(1	)
Operating expenses	$	37,794		$	42,461		$	41,948		$	40,057		$	38,253
Other GAAP financial data included in operating expenses:
Amortization of intangible assets		180			114			113			114			112
Stock-based compensation		5,652			5,816			6,025			4,851			5,111
Acquisition-related charges		494			493			494			74			1
Impairment of intangible assets		—			2,204			—			—			—
Restructuring		—			—			—			47			1,207
Other statement of operations line items
Other income, net	$	333		$	113		$	(217	)	$	543		$	9
(Provision) benefit for income taxes		(961	)		(1,143	)		(239	)		(570	)		332