SolarWinds Announces Third Quarter 2011 Results
· Record quarterly total revenue of $53.9 million, representing 31% year-over-year growth.
· GAAP operating income of $25.3 million and non-GAAP operating income of $28.6 million, or a non-GAAP operating margin of 53%.
· GAAP diluted earnings per share of $0.28 and non-GAAP diluted earnings per share of $0.31.
· Free cash flow of $32.4 million, representing 41.6% year-over-year growth.
Financial Results
SolarWinds reported record total revenue for the third quarter of 2011 of $53.9 million, a 31% increase over total revenue in the third quarter of 2010. License revenue was a record $25.5 million in the third quarter of 2011, representing a 22% increase over license revenue in the third quarter of 2010. Maintenance revenue was a record $28.4 million in the third quarter of 2011, representing a 40% increase over maintenance revenue in the third quarter of 2010.
On a GAAP basis, diluted earnings per share were $0.28 in the third quarter of 2011 compared to $0.17 in the third quarter of 2010. Non-GAAP diluted earnings per share were $0.31 in the third quarter of 2011 compared to $0.21 in the third quarter of 2010.
Net cash provided by operating activities was $32.5 million in the third quarter of 2011 compared to $13.2 million for the third quarter of 2010, representing a year-over-year increase of 145.5%. Free cash flow was $32.4 million in the third quarter of 2011 compared to $22.9 million for the third quarter of 2010, representing a year-over-year increase of 41.6%. Cash, cash equivalents, and investments at the end of the third quarter of 2011 were $165.8 million, a decrease of $3.7 million from the end of the second quarter of 2011. During the third quarter of 2011, SolarWinds paid approximately $35 million in cash to acquire TriGeo.
The financial results included in this press release are preliminary and pending final review by the company and its external auditors. Financial results will not be final until SolarWinds files its quarterly report on Form 10-Q for the period. Information about SolarWinds' use of these non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”
Recent Business Highlights
“The third quarter of 2011 adds another page to the compelling story of SolarWinds‘ model, and users’ need for our approach to solving IT Management challenges. Once again, we delivered strong results and generated record license and maintenance revenue based on solid performance across our business,” said Kevin Thompson, SolarWinds‘ President and Chief Executive Officer. "The strong demand for our products, including the new SolarWinds Log and Event Manager, continued to drive our results in the North American commercial business. And, outside of North America, our commercial business also benefited from growing awareness of the SolarWinds’ brand of powerful, affordable and easy to use IT management products.
“Finally, our U.S. federal business had its strongest quarter of sales in the company's history, driven by healthy deal activity and a building appreciation for the value of our product in the space.”
SolarWinds' business highlights during the third quarter of 2011 include:
· SolarWinds completed the acquisition of TriGeo and released Log and Event Manager (LEM), a virtual software appliance based on technology acquired from TriGeo. SolarWinds Log and Event Manager is a powerful, easy to use, and affordable solution that combines log management, event correlation and ad hoc search to give IT professionals the ability to collect large volumes of data from virtually any device on the network and correlate that data in real-time to improve system performance and satisfy compliance and security requirements.
· SolarWinds introduced SolarWinds Synthetic End User Monitor (SEUM), a new application management offering that allows systems administrators and application support professionals to monitor multi-step, web-based transactions in mission-critical applications.
· The company continued to receive industry recognition for its product portfolio, with SolarWinds Virtualization Manager winning “Best of VMworld® - Virtualization Management” at VMworld 2011 in Las Vegas.
· SolarWinds introduced VM-to-Cloud Calculator, a free tool for estimating the cost to move virtual machines to the Cloud and comparing the costs of Amazon EC2®, Windows® Azure, and Rackspace® Cloud Servers.
· SolarWinds also introduced Web Transaction Watcher, a companion free tool to SolarWinds Synthetic End User Monitor that allows users to easily record the results of a web transaction and be notified of problems.
“Throughout the year, we have made a number of significant investments in our business in an effort to drive continued strong growth in the future. Despite those many investments, which include the acquisitions of TriGeo and Hyper9 earlier this year, we have continued to produce solids levels of profitability and cash flow,” added Mike Berry, SolarWinds‘ Chief Financial Officer. “For the third quarter of 2011 in particular, we generated record operating income, net income, and cash flow from operations in addition to record revenue. We believe our ability to deliver this combination of strong growth, profitability, and cash flow truly highlights the efforts of the entire SolarWinds’ team and the strength of our unique business model.”
Financial Outlook
As of October 27, 2011, SolarWinds is providing its financial outlook for its fourth quarter and full year of 2011. The financial information below represents forward-looking non-GAAP financial information, including an estimate of non-GAAP operating income, and non-GAAP diluted earnings per share, for the fourth quarter of 2011 and for the full year 2011. These non-GAAP financial measures exclude, among other items mentioned below, stock-based compensation expense and related employer-paid payroll taxes. SolarWinds cannot reasonably estimate the expected stock-based compensation expense and related employer-paid payroll taxes for these future periods as the amounts depend upon such factors as the future price of SolarWinds' stock for purposes of computation. In addition, costs related to non-recurring items and acquisitions are not something that SolarWinds can estimate because they are a function of what non-recurring items and acquisitions, if any, occur and the kind of costs incurred in connection with any such non-recurring items or acquisitions.
Financial Outlook for the Fourth Quarter of 2011
SolarWinds management currently expects to achieve the following results for the fourth quarter of 2011:
· Total revenue in the range of $52.8-$54.2 million.
· Non-GAAP operating income representing approximately 49% of revenue.
· Non-GAAP diluted earnings per share of $0.23-$0.25.
· Weighted average shares outstanding of approximately 75.0 million.
Financial Outlook for Full Year 2011
SolarWinds management currently expects to achieve the following results for the full year 2011:
· Total revenue in the range of $195.55-$196.95 million.
· Non-GAAP operating income representing approximately 51% of revenue.
· Non-GAAP diluted earnings per share of $0.98-$1.00.
· Weighted average shares outstanding of approximately 74.5 million.
Conference Call and Webcast
In conjunction with this announcement, SolarWinds will host a conference call today to discuss its financial results and other business at 8:00am CDT (9:00am EDT/6:00am PDT). A live webcast of the event, including any supplemental information, will be available on the SolarWinds Investor Relations website at http://ir.solarwinds.com. A live dial-in will be available domestically at 888-503-8169 and internationally at +1-719-325-2458. To access the live call, please dial in 5-10 minutes before the scheduled start time. A replay of the webcast will be available on a temporary basis shortly after the event on the SolarWinds Investor Relations website.
Forward-Looking Statements
This press release contains “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including SolarWinds‘ financial outlook. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as “continues,” “believes,” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the possibility that general economic conditions or uncertainty cause information technology spending to be reduced or purchasing decisions to be delayed; (b) the presence or absence of occasional large customer orders, including in particular those placed by the U.S. federal government; (c) the inability to increase sales to existing customers and to attract new customers; (d) SolarWinds‘ failure to integrate acquired businesses and any future acquisitions successfully; (e) the timing and success of new product introductions by SolarWinds or its competitors; (f) changes in SolarWinds’ pricing policies or those of its competitors; (g) potential foreign exchange gains and losses related to expenses and sales denominated in currencies other than the functional currency of an associated entity; and (h) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the Form 10-Q that SolarWinds anticipates filing on or before November 9, 2011. All information provided in this release is as of the date hereof and SolarWinds undertakes no duty to update this information except as required by law.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures. The tables below set forth a reconciliation of each of these non-GAAP measures to a GAAP financial measure that we consider to be most comparable. SolarWinds believes that each of these non-GAAP financial measures provides meaningful supplemental information regarding its performance by excluding certain items that may not be indicative of its core business operations. SolarWinds' management and Board of Directors use certain of these non-GAAP measures to assess operational performance and to determine employee incentive compensation. Accordingly, these measures may provide helpful insight to investors on the motivation and decision-making of management in operating the business. SolarWinds considers free cash flow also to be a liquidity measure that provides important information regarding the cash generated by the business after the purchase of property and equipment that can then be used for, among other things, strategic acquisitions and investments in the business, stock repurchases and funding ongoing operations.
SolarWinds also believes that these non-GAAP financial measures are used by investors and security analysts to (a) compare and evaluate its performance from period to period and (b) compare its performance to those of its competitors. These non-GAAP measures exclude certain items that can vary substantially from company to company depending upon their financing and accounting methods, the book value of their assets, their capital structures and the method by which their assets were acquired.
There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly-titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income. In addition, free cash flow does not represent the total increase or decrease in the cash balance for the period.
As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for the most comparable GAAP measures. SolarWinds' management and Board of Directors compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are set forth in the tables below.
About SolarWinds
SolarWinds (NYSE: SWI) provides powerful and affordable IT management software to customers worldwide -- from Fortune 500 enterprises to small businesses. We work to put our users first and remove the obstacles that have become “status quo” in traditional enterprise software. SolarWinds products are downloadable, easy to use and maintain, and provide the power, scale, and flexibility needed to address users‘ management priorities. Our online user community, thwack, is a gathering-place where tens of thousands of IT pros solve problems, share technology, and participate in product development for all of SolarWinds’ products. Learn more today at http://www.solarwinds.com.
SolarWinds, the SolarWinds logo and _thwack are exclusive trademarks of SolarWinds, are registered with the U.S. patent and trademark office, and may be registered or pending registration in other countries. All other SolarWinds trademarks, service marks and logos may be common law marks or registered or pending registration in the United States or in other countries. All other trademarks or registered trademarks mentioned herein are used for identification purposes only and may be trademarks or registered trademarks of their respective companies.
Website: http://www.solarwinds.com
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2월 20일 14:25