IntraLinks Announces Second Quarter 2011 Results
Second Quarter Revenue Grows by 20% Year-over-year
NEW YORK, NY – August 10, 2011 – IntraLinks Holdings, Inc. (NYSE: IL), a leading provider of critical information exchange solutions, today announced results for its second quarter of 2011.
Financial highlights for the second quarter include:
| | § | Total revenue of $53.3 million, up 20% year-over-year |
| | § | Enterprise revenue of $22.6 million, up 15% year-over-year |
| | § | M&A revenue of $21.0 million, up 29% year-over-year |
| | § | Break-even GAAP net income, compared to a net loss of ($3.9) million or ($1.78) per share for the same quarter last year |
| | § | Non-GAAP adjusted net income of $5.7 million or $0.10 per share, compared to non-GAAP adjusted net income of $2.0 million or $0.04 per share for the same quarter last year |
| | § | Non-GAAP adjusted EBITDA of $16.4 million, an increase of 15%, compared to $14.2 million for the same quarter last year |
| | § | Cash flow from operations of $15.9 million, compared to $9.5 million for the same quarter last year |
“Our second quarter results met or exceeded our guidance across all key financial metrics. Our results were driven by a balanced performance across our three principal markets – Enterprise, M&A and DCM,” said Andrew Damico, IntraLinks’ President and CEO. “During the second quarter, we took important steps to further strengthen our global sales and services teams. We are well positioned to scale our sales and services resources to expand on our market coverage and better capitalize on our leadership position opportunities for growth.”
“Our second quarter results reflect a combination of solid growth, profitability and cash flow,” said Anthony Plesner, IntraLinks’ CFO. “As we look to the second half of the year, we will continue to invest in products and people to grow our business and capitalize on the multi-billion dollar market opportunity in front of our company.”
Second Quarter 2011
Total revenue was $53.3 million, an increase of 20%, compared to $44.4 million for the corresponding quarter last year.
| | · | Enterprise revenue was $22.6 million, up 15% year-over-year compared to $19.7 million last year |
| | · | M&A revenue was $21.0 million, up 29% year-over-year compared to $16.2 million last year |
| | · | DCM revenue was $9.7 million, up 15% year-over-year compared to $8.5 million last year |
GAAP gross margin was 73.5%, a decrease of 50 basis points compared to 74.0% for the corresponding quarter last year.
Non-GAAP gross margin was 79.8%, a decrease of 170 basis points compared to 81.5% for the corresponding quarter last year.
GAAP operating income was $2.1 million, compared to an operating income of $1.7 million for the corresponding quarter last year.
Non-GAAP adjusted operating income was $11.1 million, up 13% year-over-year compared to $9.9 million for the corresponding quarter last year.
GAAP net income was break-even, compared to a GAAP net loss of ($3.9) million for the corresponding quarter last year. Diluted GAAP net income per share for the second quarter was $0.00 on the basis of 54,994,870 shares outstanding. In the prior year comparable period, diluted GAAP net loss per share was ($1.78) on the basis of 2,210,438 shares outstanding.
The company generated non-GAAP adjusted net income of $5.7 million, compared to non-GAAP adjusted net income of $2.0 million for the corresponding quarter last year. Non-GAAP adjusted net income per share was $0.10 on the basis of 54,994,870 shares outstanding. In the corresponding quarter for the prior year, non-GAAP net income per share was $0.04 on the basis of 52,585,529 shares outstanding. Shares outstanding for the prior period are on a pro forma basis, assuming that the conversion of outstanding preferred stock to common stock and the initial and follow-on offerings of common stock occurred at the beginning of the period.
Non-GAAP adjusted EBITDA was $16.4 million, up 15% year-over-year compared to non-GAAP adjusted EBITDA of $14.2 million for the corresponding quarter last year.
Cash flow from operations was $15.9 million, compared to $9.5 million in the corresponding quarter last year.
During the second quarter, the company identified an adjustment of $0.6 million pre-tax unrealized gains on foreign exchange transactions relating to prior periods. Included in this amount is $0.2 million pre-tax (or $0.1 million after-tax which represents $0.01 per diluted share) related to the first quarter of this year, and $0.4 million pre-tax related to prior years. The gross adjustment has been recorded under ‘Other income, net’ for the six months ended June 30, 2011.
Business Outlook:
Based on information available as of August 10, 2011, IntraLinks is providing guidance for the third quarter 2011 and full year 2011 as follows:
Third Quarter 2011
Revenue: $54 million to $56 million
GAAP operating income: $2.5 million to $4.0 million
Non-GAAP operating income: $12 million to $13.5 million
Non-GAAP adjusted EBITDA: $17.5 million to $19 million
GAAP net income per share: $0.00 to $0.02
Non-GAAP net income per share: $0.11 to $0.13
Full Year 2011
Revenue: $215 million to $225 million
GAAP operating income: $17 million to $19 million
Non-GAAP operating income: $52 million to $58 million
Non-GAAP adjusted EBITDA: $73 million to $78 million
GAAP net income per share: $0.06 to $0.08
Non-GAAP net income per share: $0.50 to $0.57
Quarterly Conference Call
IntraLinks will host a conference call today at 9:00 a.m. Eastern Time (ET) to discuss the company’s second quarter 2011 financial results and its business outlook for the third quarter and full year 2011, which may include guidance supplemental to the above. To access this call, dial 800-390-5312 (domestic) or 719-325-2291 (international). A passcode is not required. This presentation will also be webcast live on the investor relations section on the IntraLinks website at www.intralinks.com/ir. In conjunction with this call, there will also be accompanying slides with supplemental information available at the same website location.
Following the conference call, a replay will be available until August 17, 2011, at 877-870-5176 (domestic) or 858-384-5517 (international). The passcode for the replay is 4279764. An archived webcast of this conference call will also be available on the investor relations section on the IntraLinks website at www.intralinks.com/ir.
About IntraLinks
IntraLinks (NYSE: IL) is a leading global provider of Software-as-a-Service solutions for securely managing content, exchanging critical business information and collaborating within and among organizations. More than 1 million professionals in industries including financial services, pharmaceutical, biotechnology, consumer, energy, industrial, legal, insurance, real estate and technology, as well as government agencies, have utilized IntraLinks' easy-to-use, cloud-based solutions. IntraLinks users can accelerate information-intensive business processes and workflows, meet regulatory and risk management requirements and collaborate with customers, partners and counterparties in a secure, auditable and compliant manner. Professionals at more than 800 of the Fortune 1000 companies have used IntraLinks’ solutions. For more information, visit www.intralinks.com or http://blog.intralinks.com. You can also follow IntraLinks on Twitter at http://twitter.com/intralinks and Facebook at www.facebook.com/IntraLinks.
Non-GAAP Financial Measures
The Press Release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP” or “U.S. GAAP”), including non-GAAP gross profit and margin, non-GAAP adjusted operating income and margin, non-GAAP adjusted net income, non-GAAP adjusted net income per share, non-GAAP adjusted EBITDA and margin and free cash flow. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies.
Management defines its non-GAAP financial measures as follows:
| | § | Non-GAAP gross profit represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense and (2) amortization of intangible assets. |
| | § | Non-GAAP adjusted operating income represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets and (3) costs related to initial public and follow-on offerings. |
| | § | Non-GAAP adjusted net income and non-GAAP adjusted net income per share represent the corresponding GAAP measures adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets, and (3) costs related to our initial public and follow on offerings. Non-GAAP adjusted net income and non-GAAP adjusted net income per share are calculated using an estimated long-term effective tax rate. |
| | § | Non-GAAP per share measures are shown on a pro-forma basis, assuming the conversion of preferred shares and public offerings occurred at the beginning of the period. |
| | § | Non-GAAP adjusted EBITDA represents net income (loss) adjusted to exclude (1) interest expense, net of interest income, (2) income tax provision (benefit), (3) depreciation and amortization, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) amortization of debt issuance costs, (7) other (income) expense and (8) costs related to our initial public and follow on offerings. |
| | § | Free cash flow represents cash flow from operations less capital expenditures. |
| | § | The various non-GAAP margins represent the respective non-GAAP measures as a percentage of revenue. |
Management believes that these non-GAAP financial measures, when viewed with our results under U.S. GAAP and the accompanying reconciliations, provide useful information about our period-over-period growth and provide additional information that is useful for evaluating our operating performance. Additionally, management believes that these non-GAAP financial measures provide a more meaningful comparison of our operating results against those of other companies in our industry, as well as on a period-to-period basis, because these measures exclude items that are not representative of our operating performance, such as amortization of intangible assets, interest expense and fair value adjustments to the interest rate swap. Management believes that including these costs in our results of operations results in a lack of comparability between our operating results and those of our peers in the industry, the majority of which are not highly leveraged and do not have comparable amortization costs related to intangible assets. However, non-GAAP gross profit and margin, non-GAAP adjusted operating income and margin, non-GAAP adjusted net income, non-GAAP adjusted net income per share, non-GAAP adjusted EBITDA and margin and free cash flow are not measures of financial performance under U.S. GAAP and, accordingly, should not be considered as alternatives to gross profit and margin, operating income (loss) and margin, net income (loss), net income (loss) per share or cash flow from operations as indicators of operating performance.
A reconciliation of GAAP to Non-GAAP financial measures has been provided in the financial statement tables included in the Press Release.
Forward Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements that are not based on historical information relating to, among other things, expectations and assumptions concerning management's forecast of financial performance, future business growth, and management's plans, objectives, and strategies. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: the uncertainty of our future profitability; our ability to sustain positive cash flow; periodic fluctuations in our operating results; risks related to our substantial debt balances; our ability to maintain the security and integrity of our systems; our ability to increase our penetration in our principal existing markets and expand into additional markets; our dependence on the volume of financial and strategic business transactions; our dependence on customer referrals; our ability to maintain and expand our direct sales capabilities; our ability to develop and maintain strategic relationships to sell and deliver our solutions; customer renewal rates; our ability to maintain the compatibility of our services with third-party applications; competition and our ability to maintain our average sales prices; our ability to adapt to changing technologies; interruptions or delays in our service; international risks; our ability to protect our intellectual property; costs of being a public company; and risks related to changes in laws, regulations or governmental policy including tax regulations. Further information on these and other factors that could affect the company’s financial results is contained in our public filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our Registration Statement on Form S-1 as amended (File No. 333-173107), which was declared effective by the SEC on April 6, 2011. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
IntraLinks undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.
IntraLinks and the IntraLinks logo are registered trademarks of IntraLinks Holdings, Inc. All rights reserved.
Investor Contact:
David Roy
IntraLinks
212-342-7690
droy@intralinks.com
Media Relations Contact:
Radley Moss
IntraLinks
212-543-7717
rmoss@intralinks.com
IntraLinks | 150 East 42nd Street | New York, NY 10017 | + 1 212 342 7684 | Fax +1 212 208 2600 | |
IntraLinks Holdings, Inc.
Consolidated Balance Sheets
(In Thousands, Except Share and per Share Data)
(unaudited)
| | | June 30, | | | December 31, | |
| | | 2011 | | | 2010 | |
| ASSETS | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 61,344 | | | $ | 50,467 | |
| Accounts receivable, net of allowances of $2,086 and $2,418, respectively | | | 42,286 | | | | 37,137 | |
| Deferred taxes | | | 18,511 | | | | 18,264 | |
| Prepaid expenses | | | 5,053 | | | | 5,916 | |
| Other current assets | | | 4,543 | | | | 2,457 | |
| Total current assets | | | 131,737 | | | | 114,241 | |
| Fixed assets, net | | | 8,236 | | | | 8,075 | |
| Capitalized software, net | | | 27,091 | | | | 25,676 | |
| Goodwill | | | 215,478 | | | | 215,478 | |
| Other intangibles, net | | | 146,548 | | | | 160,863 | |
| Other assets | | | 1,151 | | | | 2,022 | |
| Total assets | | $ | 530,241 | | | $ | 526,355 | |
| | | | | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 4,742 | | | $ | 4,191 | |
| Accrued expenses and other current liabilities | | | 18,260 | | | | 22,444 | |
| Deferred revenue | | | 41,280 | | | | 38,043 | |
| Total current liabilities | | | 64,282 | | | | 64,678 | |
| Long term debt | | | 91,089 | | | | 125,886 | |
| Deferred taxes | | | 46,103 | | | | 46,103 | |
| Other long term liabilities | | | 768 | | | | 2,244 | |
| Total liabilities | | | 202,242 | | | | 238,911 | |
| Stockholders' equity: | | | | | | | | |
| Undesignated Preferred Stock, $0.001 par value; 10,000,000 shares authorized; 0 shares | | | | | | | | |
| issued and outstanding as of June 30, 2011 and December 31, 2010 | | | - | | | | - | |
| Common stock, $0.001 par value; 300,000,000 shares authorized; 54,060,792 and 52,387,374 | | | | | | | | |
| shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively | | | 54 | | | | 52 | |
| Additional paid-in capital | | | 406,221 | | | | 365,962 | |
| Accumulated deficit | | | (78,323 | ) | | | (78,813 | ) |
| Accumulated other comprehensive income | | | 47 | | | | 243 | |
| Total stockholders' equity | | | 327,999 | | | | 287,444 | |
| Total liabilities and stockholders' equity | | $ | 530,241 | | | $ | 526,355 | |
IntraLinks Holdings, Inc.
Consolidated Statements of Operations
(In Thousands, Except Share and per Share Data)
(unaudited)
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| | | | | | | | | | | | | |
| Revenue | | $ | 53,336 | | | $ | 44,409 | | | $ | 105,743 | | | $ | 84,340 | |
| Cost of revenue | | | 14,137 | | | | 11,555 | | | | 27,753 | | | | 23,031 | |
| Gross profit | | | 39,199 | | | | 32,854 | | | | 77,990 | | | | 61,309 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Product development | | | 5,036 | | | | 4,461 | | | | 11,105 | | | | 8,744 | |
| Sales and marketing | | | 22,484 | | | | 19,106 | | | | 43,727 | | | | 38,126 | |
| General and administrative | | | 9,617 | | | | 7,595 | | | | 19,443 | | | | 13,105 | |
| Total operating expenses | | | 37,137 | | | | 31,162 | | | | 74,275 | | | | 59,975 | |
| Income from operations | | | 2,062 | | | | 1,692 | | | | 3,715 | | | | 1,334 | |
| Interest expense, net | | | 2,602 | | | | 7,109 | | | | 5,594 | | | | 14,137 | |
| Amortization of debt issuance costs | | | 574 | | | | 457 | | | | 941 | | | | 914 | |
| Other income, net | | | (1,134 | ) | | | (361 | ) | | | (3,062 | ) | | | (288 | ) |
| Net income (loss) before income tax | | | 20 | | | | (5,513 | ) | | | 242 | | | | (13,429 | ) |
| Income tax provision (benefit) | | | 13 | | | | (1,568 | ) | | | (248 | ) | | | (4,006 | ) |
| Net income (loss) | | $ | 7 | | | $ | (3,945 | ) | | $ | 490 | | | $ | (9,423 | ) |
| | | | | | | | | | | | | | | | | |
| Net income (loss) per common share | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.00 | | | $ | (1.78 | ) | | $ | 0.01 | | | $ | (4.42 | ) |
| Diluted | | $ | 0.00 | | | $ | (1.78 | ) | | $ | 0.01 | | | $ | (4.42 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted average number of shares used in | | | | | | | | | | | | | | | | |
| calculating net income (loss) per share | | | | | | | | | | | | | | | | |
| Basic | | | 53,539,224 | | | | 2,210,438 | | | | 52,748,590 | | | | 2,133,393 | |
| Diluted | | | 54,994,870 | | | | 2,210,438 | | | | 54,302,178 | | | | 2,133,393 | |
IntraLinks Holdings, Inc.
Consolidated Statements of Cash Flows
(In Thousands)
(unaudited)
| | | Six Months Ended | |
| | | June 30, | |
| | | 2011 | | | 2010 | |
| Net income (loss) | | $ | 490 | | | $ | (9,423 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | |
| Depreciation and amortization | | | 10,204 | | | | 7,607 | |
| Stock-based compensation expense | | | 3,871 | | | | 1,744 | |
| Amortization of intangible assets | | | 14,315 | | | | 14,426 | |
| Amortization of debt discount | | | - | | | | 78 | |
| Amortization of debt issuance cost | | | 941 | | | | 914 | |
| Provision for bad debts and customer credits | | | 338 | | | | 175 | |
| Loss (gain) on disposal of fixed assets | | | 225 | | | | (28 | ) |
| Change in deferred taxes | | | (247 | ) | | | (4,450 | ) |
| Gain on interest rate swap | | | (1,952 | ) | | | (755 | ) |
| Currency remeasurement gain | | | (382 | ) | | | - | |
| Non-cash interest expense | | | - | | | | 3,255 | |
| | | | | | | | | |
| Changes in operating assets and liabilities: | | | | | | | | |
| Accounts receivable | | | (5,487 | ) | | | (6,344 | ) |
| Prepaid expenses and other current assets | | | (2,164 | ) | | | (1,820 | ) |
| Other assets | | | 870 | | | | (19 | ) |
| Accounts payable | | | 551 | | | | (129 | ) |
| Accrued expenses and other liabilities | | | (3,338 | ) | | | (6,159 | ) |
| Deferred revenue | | | 3,237 | | | | 5,013 | |
| Net cash provided by operating activities | | | 21,472 | | | | 4,085 | |
| Cash flows from investing activities: | | | | | | | | |
| | | | | | | | | |
| Capital expenditures | | | (3,363 | ) | | | (5,711 | ) |
| Capitalized software development costs | | | (8,643 | ) | | | (8,544 | ) |
| Purchase of bank time deposits with maturities greater than three months | | | - | | | | (4,318 | ) |
| Sale of investments and maturity of bank time deposits greater than three months | | | - | | | | 2,550 | |
| Net cash used in investing activities | | | (12,006 | ) | | | (16,023 | ) |
| Cash flows from financing activities: | | | | | | | | |
| | | | | | | | | |
| Proceeds from exercise of stock options | | | 1,077 | | | | 138 | |
| Proceeds from issuance of common stock | | | 799 | | | | - | |
| Offering costs paid in connection with initial public offering and follow-on offerings | | | (490 | ) | | | (881 | ) |
| Capital lease payments | | | - | | | | (27 | ) |
| Proceeds from follow-on offering, net of underwriting discounts and commissions | | | 35,002 | | | | - | |
| Repayments of outstanding principal on long-term debt | | | (35,163 | ) | | | (1,854 | ) |
| Net cash provided by (used in) financing activities | | | 1,225 | | | | (2,624 | ) |
| Effect of foreign exchange rate changes on cash and cash equivalents | | | 186 | | | | 12 | |
| Net increase (decrease) in cash and cash equivalents | | | 10,877 | | | | (14,550 | ) |
| Cash and cash equivalents at beginning of period | | | 50,467 | | | | 30,481 | |
| Cash and cash equivalents at end of period | | $ | 61,344 | | | $ | 15,931 | |
IntraLinks Holdings, Inc
Reconciliation of Non-GAAP to GAAP Financial Measures
(In Thousands, Except Share and per Share Data)
(unaudited)
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | June 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| Non-GAAP gross profit | | | | | | | | | | | | |
| Gross profit | | $ | 39,199 | | | $ | 32,854 | | | $ | 77,990 | | | $ | 61,309 | |
| Gross margin | | | 73.5 | % | | | 74.0 | % | | | 73.8 | % | | | 72.7 | % |
| Cost of revenue - stock based compensation expense | | | 37 | | | | 15 | | | | 108 | | | | 28 | |
| Cost of revenue - amortization of intangible assets | | | 3,310 | | | | 3,309 | | | | 6,619 | | | | 6,618 | |
| Non-GAAP gross profit | | $ | 42,546 | | | $ | 36,178 | | | $ | 84,717 | | | $ | 67,955 | |
| Non-GAAP Gross margin | | | 79.8 | % | | | 81.5 | % | | | 80.1 | % | | | 80.6 | % |
| | | | | | | | | | | | | | | | | |
| Non-GAAP adjusted operating income | | | | | | | | | | | | | | | | |
| Income from operations | | $ | 2,062 | | | $ | 1,692 | | | $ | 3,715 | | | $ | 1,334 | |
| Stock-based compensation expense | | | 1,899 | | | | 991 | | | | 3,871 | | | | 1,744 | |
| Amortization of intangible assets | | | 7,159 | | | | 7,208 | | | | 14,315 | | | | 14,426 | |
| Costs related to public stock offerings | | | 3 | | | | 36 | | | | 57 | | | | 907 | |
| Non-GAAP adjusted operating income | | $ | 11,123 | | | $ | 9,927 | | | $ | 21,958 | | | $ | 18,411 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP adjusted net income | | | | | | | | | | | | | | | | |
| Net income (loss) before income tax | | $ | 20 | | | $ | (5,513 | ) | | $ | 242 | | | $ | (13,429 | ) |
| Stock - based compensation expense | | | 1,899 | | | | 991 | | | | 3,871 | | | | 1,744 | |
| Amortization of intangible assets | | | 7,159 | | | | 7,208 | | | | 14,315 | | | | 14,426 | |
| Costs related to public stock offerings | | | 3 | | | | 36 | | | | 57 | | | | 907 | |
| Non-GAAP adjusted net income before tax | | | 9,081 | | | | 2,722 | | | | 18,485 | | | | 3,648 | |
| Non-GAAP Income tax provision | | | 3,360 | | | | 761 | | | | 6,671 | | | | 1,121 | |
| Non-GAAP adjusted net income | | $ | 5,721 | | | $ | 1,961 | | | $ | 11,814 | | | $ | 2,527 | |
| | | | | | | | | | | | | | | | | |
| Non-GAAP adjusted EBITDA | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | 7 | | | $ | (3,945 | ) | | $ | 490 | | | $ | (9,423 | ) |
| Interest expense, net | | | 2,602 | | | | 7,109 | | | | 5,594 | | | | 14,137 | |
| Income tax provision (benefit) | | | 13 | | | | (1,568 | ) | | | (248 | ) | | | (4,006 | ) |
| Depreciation and amortization | | | 5,256 | | | | 4,262 | | | | 10,205 | | | | 7,607 | |
| Amortization of intangible assets | | | 7,159 | | | | 7,208 | | | | 14,315 | | | | 14,426 | |
| Stock-based compensation expense | | | 1,899 | | | | 991 | | | | 3,871 | | | | 1,744 | |
| Amortization of debt issuance costs | | | 574 | | | | 457 | | | | 941 | | | | 914 | |
| Other income, net | | | (1,134 | ) | | | (361 | ) | | | (3,062 | ) | | | (288 | ) |
| Costs related to public stock offerings | | | 3 | | | | 36 | | | | 57 | | | | 907 | |
| Non-GAAP adjusted EBITDA | | $ | 16,379 | | | $ | 14,189 | | | $ | 32,163 | | | $ | 26,018 | |
| Non-GAAP adjusted EBITDA margin | | | 30.7 | % | | | 32.0 | % | | | 30.4 | % | | | 30.8 | % |
| | | | | | | | | | | | | | | | | |
| Free cash flow | | | | | | | | | | | | | | | | |
| Cash flow provided by operations | | $ | 15,931 | | | $ | 9,474 | | | $ | 21,472 | | | $ | 4,085 | |
| Capital expenditures | | | (6,322 | ) | | | (9,201 | ) | | | (12,006 | ) | | | (14,255 | ) |
| Free cash flow | | $ | 9,609 | | | $ | 273 | | | $ | 9,466 | | | $ | (10,170 | ) |
IntraLinks Holdings, Inc.
Reconciliation of Non-GAAP to GAAP Financial Measures - Guidance
(In Thousands)
(unaudited)
| | | Three Months Ending | | | Year Ending | |
| | | September 30, | | | December 31, | |
| | | 2011 | | | 2011 | |
| Non-GAAP gross profit | | | | | | |
| Gross profit | | $ | 41,205 | | | $ | 161,740 | |
| Gross margin | | | 74.9 | % | | | 73.5 | % |
| | | | | | | | | |
| Cost of revenue- stock-based compensation expense | | | 46 | | | | 3,123 | |
| Cost of revenue- amortization of intangible assets | | | 3,309 | | | | 13,237 | |
| Non-GAAP gross profit | | $ | 44,560 | | | $ | 178,100 | |
| | | | | | | | | |
| Non-GAAP gross margin | | | 81.0 | % | | | 81.0 | % |
| | | | | | | | | |
| | | | | | | | | |
| Non-GAAP operating income | | | | | | | | |
| Income from operations | | $ | 3,235 | | | $ | 17,705 | |
| Stock-based compensation expense | | | 2,358 | | | | 8,665 | |
| Amortization of intangible assets | | | 7,157 | | | | 28,630 | |
| Non-GAAP operating income | | $ | 12,750 | | | $ | 55,000 | |
| | | | | | | | | |
| Non-GAAP operating margin | | | 23.2 | % | | | 25.0 | % |
| | | | | | | | | |
| Non-GAAP net income | | | | | | | | |
| Net income before income tax | | $ | 1,250 | | | $ | 9,994 | |
| Stock-based compensation expense | | | 2,358 | | | | 8,665 | |
| Amortization of intangible assets | | | 7,157 | | | | 28,630 | |
| Non-GAAP net income before income tax | | | 10,765 | | | | 47,289 | |
| Non-GAAP income tax provision | | | 3,983 | | | | 17,620 | |
| Non-GAAP net income | | $ | 6,782 | | | $ | 29,669 | |
| | | | | | | | | |
| Non-GAAP adjusted EBITDA | | | | | | | | |
| Net income | | $ | 368 | | | $ | 3,358 | |
| Interest expense, net | | | 2,517 | | | | 10,623 | |
| Income tax provision | | | 882 | | | | 6,636 | |
| Depreciation and amortization | | | 5,500 | | | | 20,500 | |
| Amortization of intangible assets | | | 7,157 | | | | 28,630 | |
| Stock-based compensation expense | | | 2,358 | | | | 8,665 | |
| Amortization of debt issuance costs | | | 218 | | | | 1,375 | |
| Other income, net | | | (750 | ) | | | (4,344 | ) |
| Costs related to public offerings | | | - | | | | 57 | |
| Non-GAAP adjusted EBITDA | | $ | 18,250 | | | $ | 75,500 | |
| | | | | | | | | |
| Non-GAAP adjusted EBITDA margin | | | 33.2 | % | | | 34.3 | % |
Note: All forward-looking figures presented in this table are stated at the mid-point of the estimated range
