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

Exhibit 99.1

Silver Spring Networks Reports Third Quarter 2017 Financial Results

San Jose, CA – November 8, 2017 – Silver Spring Networks, Inc. (NYSE: SSNI) today announced financial results for its third quarter ended September 30, 2017.

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

GAAP results:

• Revenue was $47.6 million, down 35.9% year-over-year.

• Cost of revenue was $33.8 million, or 71.0% of revenue, versus $45.9 million or 61.9% in the third quarter of 2016.

• Operating expense was $40.6 million, versus $42.5 million in the third quarter of 2016.

• Net loss per diluted share was ($0.47), versus ($0.29) in the third quarter of last year.

• Quarter-ending cash, cash equivalents, and short-term investments was $126.2 million versus $113.4 million in the third quarter of 2016.

• Cash flow from operations was $7.5 million, versus $5.1 million in the third quarter of 2016.

Non-GAAP metrics:

• Billings were $82.8 million, up 8.7% year-over-year.

• Cost of billings was $43.1 million or 52.1% of billings, versus $34.4 million or 45.1% in the third quarter of 2016.

• Non-GAAP operating expense was $34.9 million, which included approximately $3.3 million of transaction expenses related to the proposed acquisition of Silver Spring Networks by Itron, Inc. This compares to non-GAAP operating expense of $33.8 million in the third quarter of 2016.

“We delivered solid billings growth, underlying profitability, and significant cash flow from operations,” said Mike Bell, President and Chief Executive Officer, Silver Spring Networks. “New customer deployments continue for both domestic and international projects as we ramp deliveries of our Gen5 platform.”

Silver Spring Networks will not conduct an earnings conference call due to the proposed acquisition of Silver Spring Networks by Itron, Inc.

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

• Silver Spring Networks has delivered more than 27.3 millioncumulative network endpoints since inception through September 30, 2017, up 9% from a year ago.

• Announced agreement with new technology and channel partner Acuity Brands,in which Acuity Brands’ field sales organization will deliver Silver Spring’s technology for smart street lights and smart city services as part of its turn-key offering for large-scale utility and city customers.

1

• Expanded smart metering ecosystem through an agreement with Genus Power Systems,in which Genus will integrate Silver Spring’s standards-based IPv6 network infrastructure cards into its meters for smart grid deployments across Asia including with CESC and Singapore Power.

• Named a Visionary in the Gartner ‘Magic Quadrant for Managed M2M Services, Worldwide¹,’ for the second consecutive year.

• Received Frost & Sullivan’s Asia Pacific Smart Utility Platform Provider of the Year,for its smart grid initiatives in the region, for the second consecutive year.

¹  Gartner, Inc., Magic Quadrant for Managed M2M Services, Worldwide, Eric Goodness, Leif-Olof Wallin, Aapo Markkanen, Godfrey Chua, 23 October 2017. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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 27.3 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 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.

2

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 Agreement and Plan of Merger dated September 17, 2017 with Itron, Inc. and Ivory Merger Sub, Inc., a wholly owned subsidiary of Itron, Inc., pursuant to which Silver Spring Networks would become a wholly-owned subsidiary of Itron, Inc. (the “Merger”), 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 materially from the statements herein include: timing of the Merger; Silver Spring Networks’ ability to solicit a sufficient number of proxies to approve the Merger; other conditions to the completion of the Merger; 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 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

3

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; 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 November 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.

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						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenue:
Product	$	26,612		$	50,463		$	267,853		$	153,232
Services		20,956			23,723			91,550			91,526
Total revenue		47,568			74,186			359,403			244,758
Cost of revenue:
Product		15,885			29,249			218,403			86,668
Services		17,878			16,695			53,744			48,308
Total cost of revenue		33,763			45,944			272,147			134,976
Gross profit		13,805			28,242			87,256			109,782
Operating expenses:
Research and development		15,971			18,165			51,884			51,583
Sales and marketing		8,752			10,425			26,748			28,597
General and administrative		15,828			11,667			38,975			33,752
Impairment of intangible assets		—			2,204			—			2,204
Restructuring		35			—			1,289			39
Total operating expenses		40,586			42,461			118,896			116,175
Operating loss		(26,781	)		(14,219	)		(31,640	)		(6,393	)
Other income, net		761			113			1,313			887
Loss before income taxes		(26,020	)		(14,106	)		(30,327	)		(5,506	)
Benefit (provision) for income taxes		793			(1,143	)		555			(2,136	)
Net loss	$	(25,227	)	$	(15,249	)	$	(29,772	)	$	(7,642	)
Net loss per share:
Basic	$	(0.47	)	$	(0.29	)	$	(0.56	)	$	(0.15	)
Diluted	$	(0.47	)	$	(0.29	)	$	(0.56	)	$	(0.15	)
Weighted average shares used to compute net loss per share:
Basic		53,829			51,743			53,260			51,244
Diluted		53,829			51,743			53,260			51,244

SILVER SPRING NETWORKS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	September 30,			December 31,
	2017			2016 (a)
ASSETS
Current assets:
Cash and cash equivalents	$	58,865		$	50,383
Short-term investments		67,349			67,876
Accounts receivable		49,988			44,770
Inventory		6,064			8,040
Deferred cost of revenue		72,459			194,769
Prepaid expenses and other current assets		12,984			12,536
Total current assets		267,709			378,374
Property and equipment, net		26,395			28,986
Goodwill and intangible assets		10,428			11,005
Deferred cost of revenue,non-current		8,980			26,639
Deferred tax assets,non-current		525			481
Other long-term assets		2,483			1,643
Total assets	$	316,520		$	447,128
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Accounts payable	$	36,960		$	26,785
Deferred revenue		208,060			292,260
Accrued and other liabilities		37,598			44,146
Total current liabilities		282,618			363,191
Deferred revenue,non-current		47,451			93,149
Other liabilities		25,406			22,324
Total liabilities		355,475			478,664
Total stockholders’ deficit		(38,955	)		(31,536	)
Total liabilities and stockholders’ deficit	$	316,520		$	447,128

(a) Derived from audited consolidated financial statements.

SILVER SPRING NETWORKS, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
OPERATING ACTIVITIES
Net loss	$	(25,227	)	$	(15,249	)	$	(29,772	)	$	(7,642	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Deferred taxes		(29	)		(17	)		(45	)		94
Impairment of intangible assets		—			2,204			—			2,204
Depreciation and amortization		2,189			2,096			6,666			6,332
Stock-based compensation		7,569			7,898			21,258			21,839
Othernon-cash adjustments		82			659			269			772
Changes in assets and liabilities:
Accounts receivable		1,738			1,967			(5,241	)		2,826
Inventory		(772	)		(2,811	)		1,980			(750	)
Prepaid expenses and other assets		(1,519	)		1,013			(5,161	)		2,957
Landlord incentives related to lease		—			4,513			883			6,788
Deferred cost of revenue		(11,495	)		9,359			140,122			17,595
Accounts payable		5,799			(10,082	)		10,019			(8,908	)
Customer deposits		(90	)		1,037			42			1,031
Deferred revenue		35,197			1,927			(130,167	)		(28,061	)
Accrued and other liabilities		(5,935	)		631			1,187			(4,400	)
Net cash provided by operating activities		7,507			5,145			12,040			12,677
INVESTING ACTIVITIES
Proceeds from sales ofavailable-for-sale investments		3,999			16,273			6,548			39,217
Proceeds from maturities ofavailable-for-sale investments		—			8,720			5,200			10,970
Purchases ofavailable-for-sale investments		(4,670	)		(45,401	)		(11,382	)		(56,355	)
Purchases of property and equipment		(741	)		(6,125	)		(2,491	)		(23,369	)
Net cash used for investing activities		(1,412	)		(26,533	)		(2,125	)		(29,537	)
FINANCING ACTIVITIES
Payments on capital lease obligations		—			—			—			(285	)
Proceeds from issuance of common stock		2,673			2,010			5,484			4,238
Taxes paid related to net share settlement of equity awards		(1,092	)		(549	)		(7,040	)		(4,169	)
Net cash provided by (used for) financing activities		1,581			1,461			(1,556	)		(216	)
Effect of exchange rate changes on cash and cash equivalents		56			(4	)		123			(140	)
Net increase (decrease) in cash and cash equivalents		7,732			(19,931	)		8,482			(17,216	)
Cash and cash equivalents - beginning of period		51,133			67,979			50,383			65,264
Cash and cash equivalents - end of period	$	58,865		$	48,048		$	58,865		$	48,048

SILVER SPRING NETWORKS, INC.

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

(in thousands, except percentages)

	Q3 2016			Q4 2016			Q1 2017			Q2 2017			Q3 2017			YoY% Change
REVENUE AND BILLINGS BY TYPE
Revenue:
Product	$	50,463		$	40,386		$	26,528		$	214,713		$	26,612			-47	%
Services
Managed services and SaaS		14,090			15,581			14,101			27,350			14,053			0	%
Professional services		9,633			10,283			9,634			19,509			6,903			-28	%
Total services		23,723			25,864			23,735			46,859			20,956			-12	%
Total revenue	$	74,186		$	66,250		$	50,263		$	261,572		$	47,568			-36	%
% Product		68	%		61	%		53	%		82	%		56	%
% Services		32	%		39	%		47	%		18	%		44	%
Change in deferred revenue:
Product	$	(568	)	$	7,155		$	16,102		$	(165,071	)	$	22,062
Services
Managed services and SaaS		1,641			1,427			1,802			(11,298	)		3,266
Professional services		885			2,867			(215	)		(6,454	)		9,898
Total services		2,526			4,294			1,587			(17,752	)		13,164
Total change in deferred revenue	$	1,958		$	11,449		$	17,689		$	(182,823	)	$	35,226
Billings
Product	$	49,895		$	47,541		$	42,630		$	49,642		$	48,674			-2	%
Services
Managed services and SaaS		15,731			17,008			15,903			16,052			17,319			10	%
Professional services		10,518			13,150			9,419			13,055			16,801			60	%
Total services		26,249			30,158			25,322			29,107			34,120			30	%
Total Billings	$	76,144		$	77,699		$	67,952		$	78,749		$	82,794			9	%
% Product		66	%		61	%		63	%		63	%		59	%
% Services		34	%		39	%		37	%		37	%		41	%
REVENUE AND BILLINGS BY SOLUTION
Revenue:
Advanced metering infrastructure	$	66,203		$	57,148		$	41,072		$	254,433		$	39,907			-40	%
New solutions		7,983			9,102			9,191			7,139			7,661			-4	%
Total revenue	$	74,186		$	66,250		$	50,263		$	261,572		$	47,568			-36	%
% Advanced metering infrastructure		89	%		86	%		82	%		97	%		84	%
% New solutions		11	%		14	%		18	%		3	%		16	%
Change in deferred revenue
Advanced metering infrastructure	$	(2,078	)	$	2,531		$	12,607		$	(188,584	)	$	29,623
New solutions		4,036			8,918			5,082			5,761			5,603
Total change in deferred revenue	$	1,958		$	11,449		$	17,689		$	(182,823	)	$	35,226
Billings
Advanced metering infrastructure	$	64,125		$	59,679		$	53,679		$	65,849		$	69,530			8	%
New solutions		12,019			18,020			14,273			12,900			13,264			10	%
Total Billings	$	76,144		$	77,699		$	67,952		$	78,749		$	82,794			9	%
% Advanced metering infrastructure		84	%		77	%		79	%		84	%		84	%
% New solutions		16	%		23	%		21	%		16	%		16	%
REVENUE AND BILLINGS BY GEOGRAPHY
Revenue:
United States	$	43,381		$	53,087		$	46,331		$	257,957		$	42,767			-1	%
International		30,805			13,163			3,932			3,615			4,801			-84	%
Total revenue	$	74,186		$	66,250		$	50,263		$	261,572		$	47,568			-36	%
% United States		58	%		80	%		92	%		99	%		90	%
% International		42	%		20	%		8	%		1	%		10	%
Change in deferred revenue
United States	$	21,085		$	8,880		$	11,621		$	(189,243	)	$	15,691
International		(19,127	)		2,569			6,068			6,420			19,535
Total change in deferred revenue	$	1,958		$	11,449		$	17,689		$	(182,823	)	$	35,226
Billings
United States	$	64,466		$	61,967		$	57,952		$	68,714		$	58,458			-9	%
International		11,678			15,732			10,000			10,035			24,336			108	%
Total Billings	$	76,144		$	77,699		$	67,952		$	78,749		$	82,794			9	%
% United States		85	%		80	%		85	%		87	%		71	%
% International		15	%		20	%		15	%		13	%		29	%

SILVER SPRING NETWORKS, INC.

UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP MEASURES (QUARTERLY)

(in thousands)

	Three Months Ended September 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	$	15,885	$	11,473		$	(508	)	$	(78	)	$	—		$	26,772
Services
Managed services and SaaS		9,439		—			(679	)		—			—			8,760
Professional services		8,439		—			(847	)		—			—			7,592
Total services	$	17,878	$	—		$	(1,526	)	$	—		$	—		$	16,352
Total Cost of Revenue / Cost of Billings	$	33,763	$	11,473		$	(2,034	)	$	(78	)	$	—		$	43,124
	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	$	15,971	$	(2,344	)	$	—		$	—		$	—		$	13,627
Sales and marketing		8,752		(703	)		(105	)		—			—			7,944
General and administrative		15,828		(2,488	)		(9	)		—			—			13,331
Impairment of intangible assets		—		—			—			—			—			—
Restructuring		35		—			—			(35	)		—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	40,586	$	(5,535	)	$	(114	)	$	(35	)	$	—		$	34,902
	Three Months Ended September 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	$	29,249	$	(9,404	)	$	(515	)	$	(79	)	$	—		$	19,251
Services
Managed services and SaaS		9,478		—			(719	)		—			(15	)		8,744
Professional services		7,217		—			(848	)		—			—			6,369
Total services	$	16,695	$	—		$	(1,567	)	$	—		$	(15	)	$	15,113
Total Cost of Revenue / Cost of Billings	$	45,944	$	(9,404	)	$	(2,082	)	$	(79	)	$	(15	)	$	34,364
	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	$	18,165	$	(2,592	)	$	—		$	—		$	(311	)	$	15,262
Sales and marketing		10,425		(943	)		(106	)		—			(65	)		9,311
General and administrative		11,667		(2,281	)		(8	)		—			(117	)		9,261
Impairment of intangible assets		2,204		—			(2,204	)		—			—			—
Restructuring		—		—			—			—			—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	42,461	$	(5,816	)	$	(2,318	)	$	—		$	(493	)	$	33,834

(a) Amounts presented net of foreign currency translation.

SILVER SPRING NETWORKS, INC.

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

(in thousands)

	Nine Months Ended September 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	$	218,403	$	(140,157	)	$	(1,409	)	$	(237	)	$	—		$	76,600
Services
Managed services and SaaS		28,899		—			(2,037	)		—			12			26,874
Professional services		24,845		—			(2,315	)		—			(3	)		22,527
Total services	$	53,744	$	—		$	(4,352	)	$	—		$	9		$	49,401
Total Cost of Revenue / Cost of Billings	$	272,147	$	(140,157	)	$	(5,761	)	$	(237	)	$	9		$	126,001
	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	$	51,884	$	(6,536	)	$	—		$	—		$	(45	)	$	45,303
Sales and marketing		26,748		(1,866	)		(315	)		—			(11	)		24,556
General and administrative		38,975		(7,095	)		(25	)		—			(19	)		31,836
Impairment of intangible assets		—		—			—			—			—			—
Restructuring		1,289		—			—			(1,289	)		—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	118,896	$	(15,497	)	$	(340	)	$	(1,289	)	$	(75	)	$	101,695
	Nine Months Ended September 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	$	86,668	$	(17,728	)	$	(1,282	)	$	(443	)	$	—		$	67,215
Services
Managed services and SaaS		27,010		—			(1,689	)		—			(46	)		25,275
Professional services		21,298		—			(1,828	)		—			—			19,470
Total services	$	48,308	$	—		$	(3,517	)	$	—		$	(46	)	$	44,745
Total Cost of Revenue / Cost of Billings	$	134,976	$	(17,728	)	$	(4,799	)	$	(443	)	$	(46	)	$	111,960
	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	$	51,583	$	(6,859	)	$	—		$	—		$	(932	)	$	43,792
Sales and marketing		28,597		(2,500	)		(521	)		—			(196	)		25,380
General and administrative		33,752		(7,681	)		(25	)		—			(360	)		25,686
Impairment of intangible assets		2,204		—			(2,204	)		—			—			—
Restructuring		39		—			—			(39	)		—			—
Total Operating Expenses /Non-GAAP Operating Expenses	$	116,175	$	(17,040	)	$	(2,750	)	$	(39	)	$	(1,488	)	$	94,858

(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)

	Q3		Q4		Q1		Q2		Q3		YoY%
	2016		2016		2017		2017		2017		Change
SUPPLEMENTAL FINANCIAL DATA
STOCK-BASED COMPENSATION
Cost of goods sold	$	2,082	$	1,945	$	1,806	$	1,921	$	2,034		-2	%
Research and development		2,593		2,450		2,058		2,134		2,344		-10	%
Sales and marketing		943		1,152		506		657		703		-25	%
General and administrative		2,280		2,423		2,287		2,320		2,488		9	%
TOTAL STOCK-BASED COMPENSATION	$	7,898	$	7,970	$	6,657	$	7,032	$	7,569		-4	%
CASH FLOW DATA
Operating cash flow	$	5,145	$	8,085	$	1,525	$	3,008	$	7,507		46	%
Operating cash flow - trailing twelve months		18,934		20,762		18,557		17,763		20,125		6	%
BALANCE SHEET DATA
Cash, cash equivalents and short-term investments	$	113,358	$	118,259	$	116,620	$	117,845	$	126,214		11	%
OTHER INFORMATION
HOMES & BUSINESSES
Network endpoints delivered during quarter*		569		564		511		670		604		6	%
Cumulative network endpoints delivered*		24,968		25,532		26,043		26,713		27,317		9	%
*Endpoints refer to communication modules in electric meters
EMPLOYEES		709		702		704		646		647		-9	%

SILVER SPRING NETWORKS, INC.

UNAUDITED SUPPLEMENTAL TRENDED GAAP FINANCIAL DATA

(in thousands)

	Q3			Q4			Q1			Q2			Q3
	2016			2016			2017			2017			2017
Gross profit	$	28,242		$	28,417		$	16,913		$	56,538		$	13,805
Other GAAP financial data related to gross profit:
Change in deferred revenue, net of foreign currency translation		1,958			11,449			17,689			(182,823	)		35,226
Change in deferred cost of revenue, net of foreign currency translation		9,404			(3,177	)		(7,958	)		159,588			(11,473	)
Amortization of intangible assets		79			79			79			80			78
Stock-based compensation		2,082			1,945			1,806			1,921			2,034
Acquisition-related charges		15			15			(8	)		(1	)		—
Operating expenses	$	42,461		$	41,948		$	40,057		$	38,253		$	40,586
Other GAAP financial data included in operating expenses:
Amortization of intangible assets		114			113			114			112			114
Stock-based compensation		5,816			6,025			4,851			5,111			5,535
Acquisition-related charges		493			494			74			1			—
Impairment of intangible assets		2,204			—			—			—			—
Restructuring		—			—			47			1,207			35
Other statement of operations line items
Other income (expense), net	$	113		$	(217	)	$	543		$	9		$	761
(Provision) benefit for income taxes		(1,143	)		(239	)		(570	)		332			793