Vocus Announces Results for Second Quarter 2011
Vocus Announces Results for Second Quarter 2011
Lanham, MD. (PRWEB) July 26, 2011
Cash and cash equivalents
$
94,918
$
106,777
Short-term investments
5,496
10,036
Accounts receivable, net
20,846
16,562
Deferred income taxes
365
365
Prepaid expenses and other current assets
3,790
2,859
125,415
136,599
6,183
15,500
7,534
6,479
Goodwill
26,278
38,649
Deferred income taxes, net of current portion
8,314
10,104
Other assets
156
840
$
173,880
$
208,171
Accounts payable and accrued expenses (including contingent consideration of $ 1,287 and $ 3,115 at December 31, 2010 and June 30, 2011, respectively)
$
9,456
$
15,080
152
154
55,722
55,207
65,330
70,441
192
222
2,005
11,371
Deferred income taxes, net of current portion
1,065
1,035
Deferred revenue, net of current portion
854
710
69,446
83,779
204
216
166,985
192,040
Treasury stock
(28,417)
(31,555)
(175)
467
(34,163)
(36,776)
104,434
124,392
$
173,880
$
208,171
$
23,781
$
28,482
$
46,052
$
55,469
Cost of revenues
4,723
5,301
9,158
10,753
Gross profit
19,058
23,181
36,894
44,716
Operating expenses:
Sales and marketing
12,492
14,460
23,895
28,241
Research and development
1,341
1,800
2,655
3,815
General and administrative
5,828
7,497
11,027
15,725
Amortization of intangible assets
593
635
1,062
1,251
Total operating expenses
20,254
24,392
38,639
49,032
Loss from operations
(1,196)
(1,211)
(1,745)
(4,316)
Other income (expense)
(3)
58
58
224
Loss before provision (benefit) for income taxes
(1,199)
(1,153)
(1,687)
(4,092)
Provision (benefit) for income taxes
758
(398)
849
(1,479)
Net loss
$
(1,957)
$
(755)
$
(2,536)
$
(2,613)
Net loss per share:
Basic and diluted
$
(0.11)
$
(0.04)
$
(0.14)
$
(0.14)
Weighted average shares outstanding used in computing per share amounts:
Basic and diluted
17,955,925
18,788,747
18,008,822
18,917,775
Cash flows from operating activities:
Net loss
$
(1,957)
$
(755)
$
(2,536)
$
(2,613)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
1,101
1,322
1,924
2,608
Other non-cash charges, net
2,865
3,544
5,833
6,827
Excess tax benefits from equity awards
(636)
-
(727)
-
Changes in operating assets and liabilities
(64)
2,060
4,977
13,236
Net cash provided by operating activities
1,309
6,171
9,471
20,058
Cash flows from investing activities:
Business acquisitions, net of cash acquired
(8,921)
-
(8,921)
(6,947)
Net change in available-for-sale securities
3,799
(2,495)
10,197
(4,536)
Purchases of property, equipment and software, net
(386)
(4,322)
(1,156)
(10,330)
Software development costs
(259)
(26)
(414)
(66)
Net cash used in investing activities
(5,767)
(6,843)
(294)
(21,879)
Cash flows from financing activities:
Purchases of common stock
(3)
(50)
(8,312)
(3,138)
Proceeds from exercises of stock options
87
16,583
106
17,138
Payments of contingent consideration for business acquisitions
-
(699)
-
(699)
Excess tax benefits from equity awards
636
-
727
-
Net payments on notes payable and capital lease obligations
(88)
(48)
(226)
(45)
Net cash provided by (used in) financing activities
632
15,786
(7,705)
13,256
Effect of exchange rate changes on cash and cash equivalents
(267)
120
(309)
424
Net increase (decrease) in cash and cash equivalents
(4,093)
15,234
1,163
11,859
Cash and cash equivalents, beginning of period
91,073
91,543
85,817
94,918
Cash and cash equivalents, end of period
$
86,980
$
106,777
$
86,980
$
106,777
Use of Non-GAAP Financial Measures
Vocus provides non-GAAP measures for revenue, income from
operations, net income, diluted net income per share and free cash
flow as supplemental information.
We define non-GAAP revenue as GAAP revenue adjusted for the
impact of the fair value adjustment to deferred revenue related to
purchase accounting. Management believes the adjustment
is useful to investors as a more accurate measure of our ongoing
performance from the acquisitions.
We define non-GAAP income from operations as GAAP income from
operations including the impact of non-GAAP revenue and excluding
stock-based compensation, amortization of acquired intangible
assets, fair value adjustments to contingent consideration and
acquisition related expenses.
We define non-GAAP net income as GAAP net income including the
impact of non-GAAP revenue and excluding stock-based compensation,
amortization of acquired intangible assets, fair value adjustments
to contingent consideration including the effect of foreign
currencies and acquisition related expenses.
Stock-based compensation included in our GAAP financial results
relates to stock option and restricted stock awards.
Companies record stock-based compensation by applying varying
valuation methodologies and subjective assumptions to different
types of equity awards. Amortization of acquired
intangible assets included in our GAAP financial results consists
of amortization of non-compete agreements, trade names, purchased
technology and customer relationships that are not expected to be
replaced when fully amortized, as a depreciable tangible asset
might. Amortization expense can vary from period to
period due to the timing and size of our acquisitions.
Our GAAP financial results include adjustments to the fair value of
contingent consideration for acquisition earn-outs as of each
reporting date from the fair value recorded on the acquisition
date. Acquisition related expenses included in our GAAP
general and administrative costs consist of legal, accounting and
other professional fees incurred during the reporting period in
connection with our acquired businesses. Management
believes these non-GAAP measures allow management and investors to
make meaningful comparisons between our operating results and those
of the other companies, as well as provide a consistent comparison
of our relative historical financial performance.
We define free cash flow as cash flow from operations less net
capital expenditures and capitalized software development costs
plus the excess tax benefits from equity awards.
Management considers free cash flow to be a liquidity measure which
provides useful information to management and investors regarding
our ability to generate cash from operations that is available for
acquisitions and other investments. Our definition of
free cash flow may be different from definitions used by other
companies.
Management uses non-GAAP income from operations, non-GAAP net
income and free cash flow to evaluate operating performance,
determine incentive compensation and to prepare operating budgets
and determine the appropriate levels of capital
investments. However, management believes that non-GAAP
income from operations, non-GAAP net income and free cash flow are
subject to material limitations since they may not be indicative of
ongoing operating results. Management compensates for
the limitations in the use of non-GAAP measures by also utilizing
GAAP financial measures and by providing investors with a detailed
reconciliation between our GAAP and non-GAAP financial
results. Investors are advised to carefully review and
consider this information as well as the GAAP financial results
that are disclosed in our SEC filings.
Reconciliation of GAAP revenue to non-GAAP revenue:
GAAP revenue
$
23,781
$
28,482
$
46,052
$
55,469
Fair value adjustment to deferred revenue
400
-
400
181
Non-GAAP revenue
$
24,181
$
28,482
$
46,452
$
55,650
Reconciliation of GAAP loss from operations to non-GAAP income from operations:
Loss from operations
$
(1,196)
$
(1,211)
$
(1,745)
$
(4,316)
Stock-based compensation
3,333
3,608
6,182
7,836
Amortization of intangible assets
630
757
1,099
1,493
Fair value adjustment to deferred revenue
400
-
400
181
Fair value adjustments to contingent consideration
-
527
-
589
Acquisition related expenses
687
20
988
187
Non-GAAP income from operations
$
3,854
$
3,701
$
6,924
$
5,970
Reconciliation of GAAP net loss to non-GAAP net income:
Net loss
$
(1,957)
$
(755)
$
(2,536)
$
(2,613)
Stock-based compensation
3,333
3,608
6,182
7,836
Amortization of intangible assets
630
757
1,099
1,493
Fair value adjustment to deferred revenue
400
-
400
181
Fair value adjustments to contingent consideration including effects of foreign currency
-
504
-
483
Acquisition related expenses
687
20
988
187
Non-GAAP net income
$
3,093
$
4,134
$
6,133
$
7,567
Non-GAAP diluted net income per share
$
0.16
$
0.20
$
0.31
$
0.36
Non-GAAP diluted weighted average shares used in computing per share amounts
19,893,201
21,078,028
19,848,932
21,206,255
Reconciliation of GAAP diluted weighted average shares outstanding to non-GAAP diluted weighted average shares outstanding:
GAAP diluted weighted average shares outstanding
17,955,925
18,788,747
18,008,822
18,917,775
Treasury stock effect of outstanding equity securities and effect of stock-based compensation
1,937,276
2,289,281
1,840,110
2,288,480
Non-GAAP diluted weighted average shares outstanding
19,893,201
21,078,028
19,848,932
21,206,255
Supplemental information of stock-based compensation included in:
Cost of revenues
$
351
$
374
$
930
$
858
Sales and marketing
977
1,113
1,414
2,296
Research and development
418
428
791
1,073
General and administrative
1,587
1,693
3,047
3,609
Total stock-based compensation
$
3,333
$
3,608
$
6,182
$
7,836
Reconciliation of cash flow from operations to free cash flow:
Net cash provided by operating activities
$
1,309
$
6,171
$
9,471
$
20,058
Purchases of property, equipment and software, net
(386)
(4,322)
(1,156)
(10,330)
Software development costs
(259)
(26)
(414)
(66)
Excess tax benefits from equity awards
636
-
727
-
Free cash flow
$
1,300
$
1,823
$
8,628
$
9,662
###
Attachments
©Copyright 1997-
, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.
I thought it was going to be some boring old post, but it really compensated for my time. I will post a link to this page on my blog. I am sure my visitors will find that very useful