Exhibit 99.1
Exa Reports Fourth Quarter and Fiscal 2015 Financial Results
Full Year Fiscal 2015 Revenue Increases 13% Year-over-Year, or 15% on a Constant Currency Basis
Burlington, Mass., March 19, 2015 – Exa® Corporation (NASDAQ: EXA), a leading innovator of simulation software for product engineering, today announced financial results for the fourth quarter and full year fiscal 2015, which ended January 31, 2015.
“With 18% constant currency growth, fourth quarter revenue of $16.9 million was solidly within our target range and represented a strong end to our fiscal year,” said Stephen Remondi, President and Chief Executive Officer of Exa. “We executed well to produce adjusted EBITDA that was above the high end of our guidance range. Incremental investments we have been making to drive our long-term growth are showing results, contributing to the three percentage point improvement in license revenue growth in fiscal 2015. In addition, constant currency project revenue growth of over 20% for the year positions us well to continue our high rate of project to license conversions as we enter fiscal 2016. We believe that our recently introduced ExaCLOUD™ solution can also help accelerate the adoption of our simulation-driven design for new customers. Continuing our successful strategy of investing in our growth while maintaining profitability, we expect to show incremental leverage in adjusted EBITDA margin in fiscal 2016 while delivering revenue growth within our target range of 15 to 20%, each on a constant currency basis.”
Fourth Quarter Fiscal 2015 Financial Highlights
Revenue
| | • | | Total revenue for the fourth quarter of fiscal 2015 was $16.9 million, an increase of 11% compared to $15.2 million in the comparable period in fiscal 2014. On a constant currency basis, total revenue increased 18% when compared with the corresponding period in fiscal 2014. |
| | • | | License revenue was $12.9 million for the fourth quarter of fiscal 2015, compared to $12.0 million in the comparable period in fiscal 2014, representing an increase of 7%, or 14% on a constant currency basis. |
| | • | | Project revenue was $4.0 million for the fourth quarter of fiscal 2015, compared to $3.2 million in the same period in fiscal 2014, an increase of 25%, or 36% on a constant currency basis. |
Profitability
| | • | | GAAP loss from operations was $(0.2) million in the fourth quarter of fiscal 2015, compared to a loss of $(0.2) million in the comparable period in fiscal 2014. |
| | • | | Non-GAAP income from operations was $0.7 million in the fourth quarter of fiscal 2015, compared to $0.3 million in the comparable period in fiscal 2014. |
| | • | | Adjusted EBITDA was $1.4 million in the fourth quarter of fiscal 2015, compared to $0.8 million in the comparable period in fiscal 2014. |
| | • | | GAAP net loss was $(1.1) million in the fourth quarter of fiscal 2015, compared to GAAP net income of $0.1 million for the comparable period in fiscal 2014. GAAP net loss per share was $(0.08), based on 13.8 million diluted weighted average shares outstanding, compared to GAAP net income per share of $0.01 for the comparable period in fiscal 2014, based on 14.7 million diluted weighted average shares outstanding. |
| | • | | Non-GAAP net loss was $(0.6) million, or $(0.04) per diluted share in the fourth quarter of fiscal 2015, compared to non-GAAP net income of $0.4 million, or $0.03 per diluted share, in the comparable period in fiscal 2014. |
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Full Year Fiscal 2015 Financial Highlights
Revenue
| | • | | Total revenue for the full year fiscal 2015, which ended January 31, 2015, was $61.4 million, an increase of 13% compared to $54.5 million in fiscal 2014. On a constant currency basis, total revenue increased 15% when compared with fiscal 2014. |
| | • | | License revenue was $49.7 million in fiscal 2015, compared to $44.6 million in fiscal 2014, representing an increase of 12%, or 14% on a constant currency basis. |
| | • | | Project revenue was $11.7 million in fiscal 2015, compared to $9.9 million in fiscal 2014, an increase of 18%, or 22% on a constant currency basis. |
Profitability
| | • | | GAAP loss from operations was $(2.4) million in fiscal 2015, compared to $(0.1) million in fiscal 2014. |
| | • | | Non-GAAP income from operations was $0.1 million in fiscal 2015, compared to $1.4 million in fiscal 2014. |
| | • | | Adjusted EBITDA was $2.7 million in fiscal 2015, compared to $3.3 million in fiscal 2014. |
| | • | | GAAP net loss was $(19.2) million in fiscal 2015, compared to $(0.7) million in fiscal 2014. GAAP net loss per share was $(1.39), based on 13.7 million diluted weighted average shares outstanding, compared to GAAP net loss per share of $(0.05) in fiscal 2014, based on 13.3 million diluted weighted average shares outstanding. |
| | • | | Non-GAAP net loss was $(17.5) million, or $(1.27) per diluted share in fiscal 2015, compared to non-GAAP net income of $0.3 million, or $0.02 per diluted share, in fiscal 2014. |
Balance Sheet
| | • | | The company had $21.8 million in cash and cash equivalents at January 31, 2015, compared to $23.9 million at October 31, 2014. |
Business Outlook
Based on information available as of March 19, 2015, Exa is providing first quarter and fiscal 2016 guidance as indicated below.
First Quarter Fiscal 2016:
| | • | | Total revenue is expected to be in the range of $14.5 million to $15.1 million. |
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| | • | | Adjusted EBITDA loss is expected to be in the range of $(0.8) million to $(0.3) million. |
| | • | | GAAP net loss is expected to be in the range of $(2.5) million to $(2.0) million. |
| | • | | Non-GAAP net loss is expected to be in the range of $(2.1) million to $(1.6) million. |
| | • | | Basic share count for the first quarter is estimated to be 14.3 million shares. |
| | • | | Diluted share count for the first quarter is estimated to be 14.8 million shares. |
Full Year Fiscal 2016:
| | • | | Total revenue is expected to be in the range of $64.7 million to $67.0 million. |
| | • | | With a $4 to $5 million negative impact from foreign currency fluctuations, this would represent growth of 13% to 17% from fiscal 2015 on a constant currency basis. |
| | • | | Adjusted EBITDA is expected to be in the range of $1.8 million to $2.5 million. |
| | • | | Constant currency headwinds negatively impact adjusted EBITDA margin expectations by 2.0 to 2.5 percentage points. |
| | • | | GAAP net loss is expected to be in the range of $(5.9) million to $(5.2) million. |
| | • | | Non-GAAP net loss is expected to be in the range of $(4.3) million to $(3.6) million. |
| | • | | Basic share count for the full year is estimated to be 14.5 million shares. |
| | • | | Diluted share count for the full year is estimated to be 14.9 million shares. |
The above guidance assumes an exchange rate of 1.13 US dollars per Euro and 118.0 Japanese yen per US dollar for fiscal year 2015.
An explanation and reconciliation of historical and forward-looking non-GAAP measures presented above, including revenue on a constant currency basis, adjusted EBITDA and non-GAAP net income (loss), to the comparable GAAP measures is provided below and in the attachments to this press release.
Conference Call Information
| | |
| What: | | Exa’s fourth quarter and full year fiscal 2015 financial results conference call |
| When: | | Thursday, March 19, 2015 |
| Time: | | 5:00 p.m. ET |
| Webcast: | | http://investor.exa.com (live and replay) |
| Live Call: | | (877) 878-2664, from within the U.S. |
| | (970) 315-0423, International |
| Replay: | | (855) 859-2056, Passcode 95341429, from within the U.S. |
| | (404) 537-3406, Passcode 95341429, International |
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are presented on a GAAP basis, we disclose revenue on a constant currency basis, non-GAAP income from operations, non-GAAP net income, non-GAAP net income per diluted share and Adjusted EBITDA. These non-GAAP measures are not in accordance with, or an alternative for, amounts determined in accordance with generally accepted accounting principles in the United States. The GAAP measure most comparable to revenue on a constant currency basis is GAAP revenue. The GAAP measure most comparable to non-GAAP income from operations is GAAP income from operations. The GAAP measure most comparable to Non-GAAP
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net income and Adjusted EBITDA is GAAP net income. The GAAP measure most comparable to Non-GAAP net income per diluted share is GAAP net income per diluted share. A reconciliation of these non-GAAP financial measures to the corresponding GAAP measure is included below.
We define revenue on a constant currency basis as GAAP revenue, adjusted to reverse the impact of changes in the average exchange rates of currencies in which our international operations generated revenue and incurred expenses.
We define Non-GAAP net income as net income, excluding the after tax impact of non-cash, stock-based compensation expense and the amortization of acquired intangibles. We define EBITDA as net income, excluding depreciation and amortization, interest expense, loss on extinguishment of debt, other income (expense), foreign exchange gain (loss) and provision for income taxes, and we define Adjusted EBITDA as EBITDA, excluding non-cash, stock-based compensation expense.
Our management uses these non-GAAP measures when evaluating our operating performance and for internal planning and forecasting purposes. We believe that these measures help indicate underlying trends in our business, are important in comparing current results with prior period results, and are useful to investors and financial analysts in assessing our operating performance. For example, our international operations generate revenue and incur expenses that are denominated in foreign currencies. These amounts could be materially affected by currency fluctuations. Our principal exposures are to fluctuations in exchange rates for the United States dollar versus the Euro, British pound, Japanese yen, Chinese yuan and Korean won. Changes in currency exchange rates that are beyond our control can significantly affect our consolidated results of operations. We believe that disclosure of our revenue on a constant currency basis is useful as an indicator of demand for our solutions independent of the influence of currency exchange fluctuations. Management considers Adjusted EBITDA to be an important indicator of our operational strength and the performance of our business and a good measure of our historical operating trends. The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for, or superior to, the financial information presented in accordance with GAAP and, in particular, should not be considered a measure of our liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies. Investors should carefully consider the attached reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures.
About Exa Corporation
Exa (Nasdaq:EXA) (www.exa.com) Corporation’s visualization and simulation software helps designers and engineers produce better vehicles and equipment. As a design evolves, Exa accurately predicts the performance of that design while providing actionable insight to optimize the performance of the product. With Exa, the need for costly physical prototypes and expensive late-stage changes is reduced. Now, designers and engineers are freed from the risk of producing compromised products that do not meet market and regulatory requirements. Some of the most successful product companies in the world use Exa, including BMW, Ford, Hyundai, Jaguar Land Rover, Kenworth, MAN, Nissan, Peterbilt, Renault, Scania, Toyota, Volkswagen and Volvo Trucks.
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Safe Harbor Statement
This press release, including the section entitled “Business Outlook,” contains forward-looking statements describing our expectations concerning future events and our future financial performance. These statements are only predictions and may be inaccurate. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors, including the risks outlined under “Risk Factors” in our Annual Report on Form 10-K for the year ended January 31, 2014, Form 10-Q for the quarter ended October 31, 2014 and in our other SEC filings. These factors may cause our actual results to differ materially from those described in our forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, our future results, levels of activity, performance or achievements may differ from our expectations. Other than as required by law, we do not undertake a responsibility to update any of the forward-looking statements after the date of this press release, even though our situation may change in the future.
Media Contact:
Michelle Murray-Ross, Exa Corporation
+1 (781) 564-0251
michelle@exa.com
Investor Relations Contact:
Garo Toomajanian, ICR
+1 (781) 564-0337
investor@exa.com
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EXA CORPORATION
Consolidated Balance Sheets
(Unaudited)
(in thousands, except share and per share data)
| | | | | | | | |
| | | January 31, | |
| | | 2015 | | | 2014 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 21,785 | | | $ | 28,753 | |
Accounts receivable | | | 27,462 | | | | 27,245 | |
Prepaid expenses and other current assets | | | 3,098 | | | | 4,321 | |
| | | | | | | | |
Total current assets | | | 52,345 | | | | 60,319 | |
Property and equipment, net | | | 6,961 | | | | 7,356 | |
Intangible assets, net | | | 2,395 | | | | 2,745 | |
Deferred tax assets | | | 260 | | | | 13,306 | |
Other assets | | | 1,092 | | | | 1,123 | |
| | | | | | | | |
Total assets | | $ | 63,053 | | | $ | 84,849 | |
| | | | | | | | |
| | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 1,620 | | | $ | 1,684 | |
Accrued expenses | | | 10,585 | | | | 10,285 | |
Current portion of deferred revenue | | | 26,863 | | | | 30,594 | |
Current portion of capital lease obligations | | | 2,390 | | | | 2,426 | |
| | | | | | | | |
Total current liabilities | | | 41,458 | | | | 44,989 | |
Deferred revenue | | | 38 | | | | 273 | |
Capital lease obligations | | | 1,602 | | | | 2,695 | |
Deferred rent | | | 472 | | | | 831 | |
Other long-term liabilities | | | 592 | | | | 528 | |
| | | | | | | | |
Total liabilities | | | 44,162 | | | | 49,316 | |
| | | | | | | | |
| | |
Commitments and contingencies | | | | | | | | |
| | |
Stockholders’ equity: | | | | | | | | |
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | | | — | | | | — | |
Common stock, $0.001 par value; 30,000,000 shares authorized; 13,874,744 and 13,388,712 shares issued, respectively; 13,842,242 and 13,356,210 shares outstanding, respectively | | | 14 | | | | 13 | |
Additional paid-in capital | | | 88,181 | | | | 85,201 | |
Accumulated deficit | | | (68,878 | ) | | | (49,721 | ) |
Treasury stock (32,502 common shares, at cost) | | | 0 | | | | 0 | |
Accumulated other comprehensive (loss) income | | | (426 | ) | | | 40 | |
| | | | | | | | |
Total stockholders’ equity | | | 18,891 | | | | 35,533 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 63,053 | | | $ | 84,849 | |
| | | | | | | | |
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EXA CORPORATION
Consolidated Statements of Operations and Comprehensive (Loss) Income
(Unaudited)
(in thousands, except share and per share data)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended January 31, | | | Year Ended January 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | |
Revenue: | | | | | | | | | | | | | | | | |
License revenue | | $ | 12,900 | | | $ | 12,047 | | | $ | 49,742 | | | $ | 44,579 | |
Project revenue | | | 3,960 | | | | 3,167 | | | | 11,689 | | | | 9,935 | |
| | | | | | | | | | | | | | | | |
Total revenues | | | 16,860 | | | | 15,214 | | | | 61,431 | | | | 54,514 | |
| | | | | | | | | | | | | | | | |
Operating expenses (1): | | | | | | | | | | | | | | | | |
Cost of revenues | | | 5,143 | | | | 4,432 | | | | 18,933 | | | | 15,959 | |
Sales and marketing | | | 3,150 | | | | 3,004 | | | | 10,668 | | | | 9,543 | |
Research and development | | | 5,841 | | | | 4,976 | | | | 21,809 | | | | 18,240 | |
General and administrative (2) | | | 2,958 | | | | 2,961 | | | | 12,468 | | | | 10,894 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 17,092 | | | | 15,373 | | | | 63,878 | | | | 54,636 | |
| | | | | | | | | | | | | | | | |
Loss from operations | | | (232 | ) | | | (159 | ) | | | (2,447 | ) | | | (122 | ) |
| | | | | | | | | | | | | | | | |
Other (expense) income, net: | | | | | | | | | | | | | | | | |
Foreign exchange gain (loss) | | | 19 | | | | (58 | ) | | | 344 | | | | (83 | ) |
Interest expense | | | (77 | ) | | | (66 | ) | | | (342 | ) | | | (694 | ) |
Interest income | | | 3 | | | | 2 | | | | 12 | | | | 15 | |
Loss on extinguishment of debt | | | — | | | | — | | | | — | | | | (755 | ) |
Other income, net | | | — | | | | 3 | | | | 7 | | | | 10 | |
| | | | | | | | | | | | | | | | |
Total other (expense) income, net | | | (55 | ) | | | (119 | ) | | | 21 | | | | (1,507 | ) |
| | | | | | | | | | | | | | | | |
Loss before income taxes | | | (287 | ) | | | (278 | ) | | | (2,426 | ) | | | (1,629 | ) |
(Provision) benefit for income taxes | | | (861 | ) | | | 392 | | | | (16,731 | ) | | | 920 | |
| | | | | | | | | | | | | | | | |
Net (loss) income | | $ | (1,148 | ) | | $ | 114 | | | $ | (19,157 | ) | | $ | (709 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net (loss) income per share: | | | | | | | | | | | | | | | | |
Basic | | $ | (0.08 | ) | | $ | 0.01 | | | $ | (1.39 | ) | | $ | (0.05 | ) |
Diluted | | $ | (0.08 | ) | | $ | 0.01 | | | $ | (1.39 | ) | | $ | (0.05 | ) |
Weighted average shares outstanding used in computing net (loss) income per share: | | | | | | | | | | | | | | | | |
Basic | | | 13,838,323 | | | | 13,350,753 | | | | 13,735,897 | | | | 13,326,883 | |
Diluted | | | 13,838,323 | | | | 14,738,356 | | | | 13,735,897 | | | | 13,326,883 | |
| | | | |
Comprehensive (loss) income: | | | | | | | | | | | | | | | | |
Net (loss) income | | $ | (1,148 | ) | | $ | 114 | | | $ | (19,157 | ) | | $ | (709 | ) |
Foreign currency translation adjustments | | | (306 | ) | | | (20 | ) | | | (466 | ) | | | 56 | |
| | | | | | | | | | | | | | | | |
Comprehensive (loss) income | | $ | (1,454 | ) | | $ | 94 | | | $ | (19,623 | ) | | $ | (653 | ) |
| | | | | | | | | | | | | | | | |
| | |
(1) Includes stock-based compensation expense as follows: | | | | | | | | | |
| | |
| | | Three Months Ended January 31, | | | Year Ended January 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | |
Cost of revenues | | $ | 75 | | | $ | 38 | | | $ | 209 | | | $ | 137 | |
Sales and marketing | | | 164 | | | | 70 | | | | 413 | | | | 239 | |
Research and development | | | 318 | | | | 112 | | | | 865 | | | | 376 | |
General and administrative | | | 270 | | | | 144 | | | | 743 | | | | 458 | |
| | | | | | | | | | | | | | | | |
Total | | $ | 827 | | | $ | 364 | | | $ | 2,230 | | | $ | 1,210 | |
| | | | | | | | | | | | | | | | |
| | |
(2) Includes amortization expense related to intangible assets as follows: | | | | | | | | | |
| | |
| | | Three Months Ended January 31, | | | Year Ended January 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | |
General and administrative | | $ | 87 | | | $ | 88 | | | $ | 350 | | | $ | 351 | |
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EXA CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
| | | | | | | | |
| | | Year Ended January 31, | |
| | | 2015 | | | 2014 | |
Cash flows (used in) provided by operating activities: | | | | | | | | |
Net loss | | $ | (19,157 | ) | | $ | (709 | ) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | | | | | | | | |
Depreciation and amortization | | | 2,917 | | | | 2,185 | |
Stock-based compensation expense | | | 2,230 | | | | 1,210 | |
Deferred rent expense | | | (316 | ) | | | (555 | ) |
Non-cash interest | | | — | | | | 162 | |
Loss on extinguishment of debt, non-cash portion | | | — | | | | 465 | |
Deferred income taxes | | | 15,131 | | | | (2,171 | ) |
Net change in operating assets and liabilities: | | | | | | | | |
Accounts receivable | | | (188 | ) | | | 610 | |
Prepaid expenses and other current assets | | | (609 | ) | | | (199 | ) |
Other assets | | | 35 | | | | (61 | ) |
Accounts payable | | | (55 | ) | | | (57 | ) |
Accrued expenses | | | 355 | | | | 2,921 | |
Other liabilities | | | 20 | | | | (221 | ) |
Deferred revenue | | | (3,436 | ) | | | 4,847 | |
| | | | | | | | |
Net cash (used in) provided by operating activities | | | (3,073 | ) | | | 8,427 | |
| | | | | | | | |
| | |
Cash flows used in investing activities: | | | | | | | | |
Purchases of property and equipment | | | (768 | ) | | | (746 | ) |
| | | | | | | | |
Net cash used in investing activities | | | (768 | ) | | | (746 | ) |
| | | | | | | | |
| | |
Cash flows used in financing activities: | | | | | | | | |
Proceeds from stock option exercises | | | 757 | | | | 205 | |
Payments of long-term debt | | | — | | | | (7,365 | ) |
Payments of capital lease obligations | | | (2,764 | ) | | | (2,106 | ) |
Payment of debt issuance costs | | | — | | | | (213 | ) |
| | | | | | | | |
Net cash used in financing activities | | | (2,007 | ) | | | (9,479 | ) |
| | | | | | | | |
| | |
Effect of exchange rate changes on cash | | | (1,120 | ) | | | (165 | ) |
| | | | | | | | |
Net decrease in cash and cash equivalents | | | (6,968 | ) | | | (1,963 | ) |
| | |
Cash and cash equivalents, beginning of period | | | 28,753 | | | | 30,716 | |
| | | | | | | | |
Cash and cash equivalents, end of period | | $ | 21,785 | | | $ | 28,753 | |
| | | | | | | | |
| | |
Supplemental cash flow disclosures: | | | | | | | | |
Cash paid for interest | | $ | 342 | | | $ | 599 | |
Cash paid for income taxes | | $ | 1,468 | | | $ | 821 | |
Supplemental disclosure of non-cash investing and financing activities: | | | | | | | | |
Acquisition of equipment through capital leases | | $ | 1,700 | | | $ | 2,358 | |
Conversion of preferred stock into common stock | | $ | — | | | $ | — | |
Conversion of preferred stock warrants into common stock warrants | | $ | — | | | $ | — | |
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EXA CORPORATION
Reconciliation of historical Non-GAAP to GAAP measures
(Unaudited)
(in thousands, except per share data)
| | | | | | | | | | | | | | | | |
| Adjusted EBITDA: | | | | | | |
| | |
| | | Three Months Ended | | | Year Ended | |
| | | January 31, | | | January 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | |
Net (loss) income | | $ | (1,148 | ) | | $ | 114 | | | $ | (19,157 | ) | | $ | (709 | ) |
Add back: | | | | | | | | | | | | |
Depreciation and amortization | | | 760 | | | | 624 | | | | 2,917 | | | | 2,185 | |
Interest expense, net | | | 74 | | | | 64 | | | | 330 | | | | 679 | |
Loss on extinguishment of debt | | | — | | | | — | | | | — | | | | 755 | |
Other income, net | | | — | | | | (3 | ) | | | (7 | ) | | | (10 | ) |
Foreign exchange (gain) loss | | | (19 | ) | | | 58 | | | | (344 | ) | | | 83 | |
Provision (benefit) for income taxes | | | 861 | | | | (392 | ) | | | 16,731 | | | | (920 | ) |
| | | | | | | | | | | | | | | | |
EBITDA | | | 528 | | | | 465 | | | | 470 | | | | 2,063 | |
Stock-based compensation expense | | | 827 | | | | 364 | | | | 2,230 | | | | 1,210 | |
| | | | | | | | | | | | | | | | |
Adjusted EBITDA | | $ | 1,355 | | | $ | 829 | | | $ | 2,700 | | | $ | 3,273 | |
| | | | | | | | | | | | | | | | |
| | |
| Non-GAAP operating income: | | | | | | |
| | |
| | | Three Months Ended | | | Year Ended | |
| | | January 31, | | | January 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | |
Operating loss | | $ | (232 | ) | | $ | (159 | ) | | $ | (2,447 | ) | | $ | (122 | ) |
Add back: | | | | | | | | | | | | | | | | |
Stock-based compensation expense | | | 827 | | | | 364 | | | | 2,230 | | | | 1,210 | |
Amortization of acquired intangible assets | | | 87 | | | | 88 | | | | 350 | | | | 351 | |
| | | | | | | | | | | | | | | | |
Non-GAAP operating income | | $ | 682 | | | $ | 293 | | | $ | 133 | | | $ | 1,439 | |
| | | | | | | | | | | | | | | | |
| | |
| Non-GAAP net (loss) income: | | | | | | |
| | |
| | | Three Months Ended | | | Year Ended | |
| | | January 31, | | | January 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | |
Net (loss) income | | $ | (1,148 | ) | | $ | 114 | | | $ | (19,157 | ) | | $ | (709 | ) |
Add back: | | | | | | | | | | | | | | | | |
Stock-based compensation expense | | | 827 | | | | 364 | | | | 2,230 | | | | 1,210 | |
Amortization of acquired intangible assets | | | 87 | | | | 88 | | | | 350 | | | | 351 | |
Income tax effect (1) | | | (320 | ) | | | (158 | ) | | | (903 | ) | | | (546 | ) |
| | | | | | | | | | | | | | | | |
Non-GAAP net (loss) income | | $ | (554 | ) | | $ | 408 | | | $ | (17,480 | ) | | $ | 306 | |
| | | | | | | | | | | | | | | | |
| | |
| Non-GAAP net (loss) income per diluted share: | | | | | | |
| | |
| | | Three Months Ended | | | Year Ended | |
| | | January 31, | | | January 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | |
Net (loss) income per diluted share (2) | | $ | (0.08 | ) | | $ | 0.01 | | | $ | (1.39 | ) | | $ | (0.05 | ) |
Add back: | | | | | | | | | | | | | | | | |
Stock-based compensation expense | | | 0.06 | | | | 0.02 | | | | 0.16 | | | | 0.09 | |
Amortization of acquired intangible assets | | | 0.01 | | | | 0.01 | | | | 0.03 | | | | 0.03 | |
Income tax effect (1) | | | (0.02 | ) | | | (0.01 | ) | | | (0.07 | ) | | | (0.04 | ) |
| | | | | | | | | | | | | | | | |
Non-GAAP net (loss) income, per diluted share (2)(3): | | $ | (0.04 | ) | | $ | 0.03 | | | $ | (1.27 | ) | | $ | 0.02 | |
| | | | | | | | | | | | | | | | |
| (1) | The tax effect of non-cash stock-based compensation expense and non-cash amortization of acquired intangibles is estimated using a blended rate equivalent to our annual estimated United States federal tax rate and our state tax rate, exclusive of any net federal benefit or charge. This rate is based on our estimated annual GAAP income tax rate forecast. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, revenues and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities. |
| (2) | Share amounts utilized on a fully diluted basis were approximately 13.8 million and 14.7 million for the three months ended January 31, 2015 and 2014, respectively, and 13.7 million and 13.3 million for the fiscal years ended January 31, 2015 and 2014, respectively. |
| (3) | Due to rounding, totals may not equal the sum of line items in the table above. |
9
EXA CORPORATION
Reconciliation of forward looking Non-GAAP to GAAP measures
| | | | |
| EBITDA and Adjusted EBITDA: | | | | |
| | |
| (in millions) | | Three Months Ended
April 30, 2015 | | Year Ended
January 31, 2016 |
| | |
Net loss | | $(2.5) - (2.0) | | $(5.9) - (5.2) |
Add back: | | | | |
Depreciation and amortization | | 0.9 | | 3.8 |
Interest expense, net | | 0.1 | | 0.3 |
Provision for income taxes | | 0.2 | | 1.6 |
| | | | |
EBITDA | | (1.3) - (0.8) | | (0.2) - 0.5 |
Stock-based compensation expense | | 0.5 | | 2.0 |
| | | | |
Adjusted EBITDA | | $(0.8) - (0.3) | | $1.8 - 2.5 |
| | | | |
| | |
| Non-GAAP net loss: | | | | |
| | |
| (in millions) | | Three Months Ended
April 30, 2015 | | Year Ended
January 31, 2016 |
| | |
Net loss | | $(2.5) - (2.0) | | $(5.9) - (5.2) |
Add back: | | | | |
Stock-based compensation expense | | 0.5 | | 2.0 |
Amortization of acquired intangibles | | 0.1 | | 0.4 |
Income tax effect (1) | | (0.2) | | (0.8) |
| | | | |
Non-GAAP net loss | | $(2.1) - (1.6) | | $(4.3) - (3.6) |
| | | | |
| (1) | Non-GAAP financial information for the quarter is adjusted using a blended tax rate equivalent to our annual estimated United States federal tax rate and our state tax rate, exclusive of any net federal benefit or charge. This rate is based on our estimated annual GAAP income tax rate forecast. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenues and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities. |
10
