GIGAMON INC SANTA CLARA, Calif., Jan. 28, 2016 /PRNewswire/ -- Gigamon Inc. (NYSE:GIMO), the leader in traffic visibility solutions, today released financial results for the fourth quarter and fiscal year ended December 26, 2015.
Fourth Quarter 2015 Financial Highlights:
-- Revenue of $67.0 million, up 31% year-over-year.
-- GAAP gross margin was 82%, compared to 77% in the fourth quarter of
fiscal 2014.
-- Non-GAAP gross margin was 83%, compared to 77% in the fourth quarter of
fiscal 2014.
-- GAAP net income was $2.6 million, or $0.07 per diluted share, compared
to GAAP net income of $2.9 million, or $0.09 per diluted share, in the
fourth quarter of fiscal 2014.
-- Non-GAAP net income was $10.6 million, or $0.29 per diluted share,
compared to non-GAAP net income of $6.1 million, or $0.18 per diluted
share, in the fourth quarter of fiscal 2014.
Fiscal Year 2015 Financial Highlights:
-- Revenue of $222.0 million, up 41% from fiscal 2014.
-- GAAP gross margin was 79%, compared to 76% in fiscal 2014.
-- Non-GAAP gross margin was 80%, compared to 77% in fiscal 2014.
-- GAAP net income was $6.2 million, or $0.17 per diluted share, compared
to GAAP net loss of $40.8 million, or $1.27 per diluted share, in fiscal
2014.
-- Non-GAAP net income was $29.0 million, or $0.80 per diluted share,
compared to non-GAAP net income of $4.0 million, or $0.12 per diluted
share, in fiscal 2014.
-- Increased cash and investments to $210 million, up $61 million from
fiscal 2014.
"2015 was a very strong year for Gigamon. We delivered over 40% year over year revenue growth, we increased our gross margins to over 80% and significantly increased our cash reserve to over $200 million," said Paul Hooper, Chief Executive Officer of Gigamon. "Our momentum in the security market continues to increase, with Q4 seeing almost 50% of our total business directly related to Security deployments. We enter 2016 with increased leadership in our market and continue to execute with conviction and predictability."
Recent Business Highlights:
-- Expanded functionality of the GigaVUE-OS security capabilities by
providing context-aware metadata information in the NetFlow/IPFIX
format.
-- Selected by Telefonica Argentina, a subsidiary of the Telefonica Group,
to help optimize its subscriber service offerings utilizing selected
Gigamon's subscriber visibility solutions.
-- Expanded portfolio of virtualized solutions with the announcement of
support for VMware NSX and OpenStack/KVM-powered clouds, which provide
tenants and administrators extended traffic visibility into private and
service provider cloud environments.
-- Added multiple security vendors to our Ecosystem Partner Program to
combat cybersecurity threats.
-- Ranked as a Fastest Growing Company in North America Based on Deloitte's
2015 Technology Fast 500(TM) for the third year in a row.
-- Appointed Chris Deardurff as Vice President, North America Sales and
Barbara Spicek as Vice President, Channel Sales.
Conference Call Information:
Gigamon will host a conference call and live webcast for analysts and investors at 5:00 p.m. Eastern time on January 28, 2016. The news release with the financial results will be accessible from the company's website prior to the conference call. Parties in the United States and Canada can access the call by dialing +1 (888) 395-3227, using conference code 684468. International parties can access the call by dialing +1 (719) 457-2645, using conference code 684468.
The webcast will be accessible on Gigamon's investor relations website at http://investor.gigamon.com for a period of one year. A telephonic replay of the conference call will be available through Thursday, February 4, 2016. To access the replay, parties in the United States and Canada should call +1 (888) 203-1112 and enter conference code 684468. International parties should call +1 (719) 457-0820 and enter conference code 684468.
Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures that exclude stock-based compensation and related payroll taxes, income tax effect of stock-based compensation expense, and a valuation allowance against deferred tax assets. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Gigamon considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by the company's management for that purpose. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company's operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure attached to this release.
Legal Notice Regarding Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, our expectations regarding the evolution of our marketplace, the goals for our Unified Visibility Fabric(TM) and our Security Delivery Platform and our momentum heading into 2016. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to deliver and improve our products and successfully develop new products; customer acceptance and purchase of our existing products and new products; our ability to retain existing customers and generate new customers; the market for network traffic visibility solutions not continuing to develop; competition from other products and services; and general market, political, economic and business conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the period ended December 27, 2014 and our most recently available Quarterly Report on Form 10-Q. The forward-looking statements in this press release are based on information available to Gigamon as of the date hereof, and Gigamon disclaims any obligation to update any forward-looking statements, except as required by law.
Gigamon
Gigamon (NYSE: GIMO) provides active visibility into physical and virtual network traffic, enabling stronger security and superior performance. Gigamon's Visibility Fabric(TM) and GigaSECURE®, the industry's first Security Delivery Platform, deliver advanced intelligence so that security, network and application performance management solutions in enterprise, government and service provider networks operate more efficiently and effectively. See more at www.gigamon.com, the Gigamon Blog, or follow Gigamon on Twitter, LinkedIn or Facebook.
Gigamon Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Fiscal Year Ended
-----------------
December 26, December 27, December 26, December 27,
2015 2014 2015 2014
---- ---- ---- ----
Revenue:
Product $47,051 $36,790 $152,734 $105,594
Service 19,973 14,461 69,241 51,536
------ ------ ------ ------
Total revenue 67,024 51,251 221,975 157,130
Cost of revenue:
Product 10,262 10,319 38,878 31,001
Service 1,669 1,722 6,917 6,447
----- ----- ----- -----
Total cost of revenue 11,931 12,041 45,795 37,448
------ ------ ------ ------
Gross profit 55,093 39,210 176,180 119,682
Operating expenses:
Research and development 13,171 10,922 49,571 42,806
Sales and marketing 26,150 20,387 87,541 76,063
General and administrative 7,788 5,015 27,459 20,683
----- ----- ------ ------
Total operating expenses 47,109 36,324 164,571 139,552
------ ------ ------- -------
Income (loss) from operations 7,984 2,886 11,609 (19,870)
Other income (expense):
Interest income 116 92 446 308
Other expense, net (119) (31) (191) (94)
---- --- ---- ---
Income (loss) before income tax provision 7,981 2,947 11,864 (19,656)
Income tax provision (5,418) (41) (5,678) (21,134)
Net income (loss) 2,563 2,906 6,186 (40,790)
===== ===== ===== =======
Net income (loss) per share:
Basic $0.07 $0.09 $0.18 $(1.27)
===== ===== ===== ======
Diluted $0.07 $0.09 $0.17 $(1.27)
Weighted average shares used in computing net income (loss) per share:
Basic 34,252 32,746 33,618 32,200
====== ====== ====== ======
Diluted 36,229 33,606 35,866 32,200
====== ====== ====== ======
Gigamon Inc.
Consolidated Balance Sheets
(In thousands)
(unaudited)
December 26, 2015 December 27, 2014
----------------- -----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $120,212 $38,941
Short-term investments 90,001 110,465
Accounts receivable, net 47,947 28,686
Inventories, net 3,813 6,551
Deferred tax assets - 150
Prepaid expenses and other current assets 7,621 5,316
----- -----
Total current assets 269,594 190,109
Property and equipment, net 9,416 7,387
Deferred tax assets, non-current 135 64
Other assets, non-current 766 426
TOTAL ASSETS $279,911 $197,986
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $3,724 $2,391
Accrued liabilities 37,334 22,838
Deferred revenue 62,248 42,183
------ ------
Total current liabilities 103,306 67,412
Deferred revenue, non-current 19,883 13,322
Deferred and other tax liabilities, non-current 279 150
Other liabilities, non-current 1,087 1,667
----- -----
TOTAL LIABILITIES 124,555 82,551
STOCKHOLDERS' EQUITY
Common stock 3 3
Treasury stock (12,469) (12,469)
Additional paid-in-capital 211,402 177,714
Accumulated other comprehensive loss (47) (94)
Accumulated deficit (43,533) (49,719)
------- -------
TOTAL STOCKHOLDERS' EQUITY 155,356 115,435
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $279,911 $197,986
======== ========
Gigamon Inc.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Three Months Ended Fiscal Year Ended
------------------ -----------------
December 26, 2015 December 27,
2014 December 26, 2015 December 27, 2014
----------------- ------------- ----------------- -----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $2,563 $2,906 $6,186 $(40,790)
Adjustments to reconcile net income (loss) to net cash provided
by operating activities:
Depreciation and amortization 1,135 1,568 5,577 5,278
Stock-based compensation expense 5,988 6,023 29,768 24,658
Deferred and other income taxes 210 (52) 208 20,825
Excess tax benefit from employee stock-based
compensation (4,706) - (4,706) -
Inventory write-down 292 824 1,859 3,760
Gain on disposal of fixed assets (29) - (17) -
Provision for doubtful accounts 309 - 309 -
Changes in operating assets and liabilities:
Accounts receivable (6,518) (9,117) (19,570) (4,158)
Inventories 6 (633) 950 (8,229)
Prepaid expenses and other current assets (844) 1,234 (2,988) (950)
Accounts payable 413 (526) 1,265 963
Accrued liabilities and other liabilities 12,450 7,620 17,966 1,709
Deferred revenue 12,892 6,117 26,626 8,029
Net cash provided by operating activities 24,161 15,964 63,433 11,095
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments (21,557) (15,607) (61,725) (87,698)
Proceeds from sales of short-term investments - 1,010 2,006 3,010
Proceeds from maturities of short-term
investments 21,003 11,100 79,821 32,607
Purchase of property and equipment (2,304) (514) (6,289) (7,614)
------ ---- ------ ------
Net cash (used in) provided by investing
activities (2,858) (4,011) 13,813 (59,695)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from employee stock purchase plan - - 5,099 5,878
Proceeds from exercise of stock option 878 449 4,403 5,364
Costs paid for initial public offering, net - - - (8)
Shares repurchased for tax withholdings on
vesting of restricted stock units (3,219) (514) (10,183) (3,125)
Excess tax benefits from employee stock-
based compensation 4,706 - 4,706 -
Distribution of income to Gigamon LLC members - - - (476)
--- --- --- ----
Net cash provided by (used in) financing
activities 2,365 (65) 4,025 7,633
----- --- ----- -----
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 23,668 11,888 81,271 (40,967)
CASH AND CASH EQUIVALENTS -Beginning of
period 96,544 27,053 38,941 79,908
CASH AND CASH EQUIVALENTS - End of period $120,212 $38,941 $120,212 $38,941
======== ======= ======== =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid during the period $390 $243 $738 $484
Gigamon Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except percentages)
(unaudited)
Three Months Ended Fiscal Year Ended
------------------ -----------------
December 26, 2015 December 27, 2014 December 26, 2015 December 27, 2014
----------------- ----------------- ----------------- -----------------
Total Revenue 67,024 51,251 221,975 157,130
Reconciliation of GAAP Gross Profit and
GAAP Gross Margin to Non-GAAP Gross
Profit and Non-GAAP Gross Margin:
GAAP gross profit 55,093 39,210 176,180 119,682
Stock-based
compensation expense 342 317 1,872 1,679
Stock-based
compensation related
payroll taxes 8 3 68 64
Non-GAAP gross profit $55,443 $39,530 $178,120 $121,425
======= ======= ======== ========
GAAP gross margin 82% 77% 79% 76%
Non-GAAP gross margin 83% 77% 80% 77%
Reconciliation of GAAP Operating Income
(loss) and GAAP Operating Margin to
Non-GAAP Operating Income and Non-
GAAP Operating Margin:
GAAP operating income
(loss) 7,984 2,886 11,609 (19,870)
Stock-based
compensation expense 5,988 6,024 29,768 24,658
Stock-based
compensation related
payroll taxes 151 23 942 821
Non-GAAP operating
income $14,123 $8,933 $42,319 $5,609
======= ====== ======= ======
Reconciliation of GAAP Net Income (loss)
Attributable To Common Stockholders to
Non-GAAP Net Income:
GAAP net income (loss)
attributable to common
stock holders $2,563 $2,906 $6,186 $(40,790)
Stock-based
compensation expense 5,988 6,024 29,768 24,658
Stock-based
compensation related
payroll taxes 151 23 942 821
Income tax effect of
Non-GAAP adjustments 1,868 (2,811) (7,913) 19,271
Non-GAAP net income $10,570 $6,142 $28,983 $3,960
======= ====== ======= ======
Gigamon Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(In thousands, except per share amounts)
(unaudited)
Three Months Ended Fiscal Year Ended
------------------ -----------------
December 26, December 27, December 26, December 27,
2015 2014 2015 2014
---- ---- ---- ----
Reconciliation of GAAP Diluted Net Income
(Loss) per Share to Non-GAAP Diluted Net
Income per Share:
GAAP diluted net income (loss)
per share $0.07 $0.09 $0.17 $(1.27)
Stock-based compensation
expense 0.17 0.17 0.83 0.79
Stock-based compensation
related payroll taxes - - 0.03 -
Income tax effect of non-GAAP
adjustments 0.05 (0.08) (0.22) 0.60
Impact of difference in number
of GAAP and non-GAAP diluted
shares - - (0.01) -
Non-GAAP diluted net income
per share $0.29 $0.18 $0.80 $0.12
===== ===== ===== =====
Reconciliation of GAAP Diluted Weighted-
Average Number of Shares to Non-GAAP Diluted
Weighted-Average Number of Shares:
GAAP diluted weighted-average
number of shares 36,229 33,606 35,866 32,200
Dilutive impact due to stock-
based compensation 330 580 491 1,394
Non-GAAP diluted weighted-
average number of shares 36,559 34,186 36,357 33,594
====== ====== ====== ======
Gigamon Inc.
Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations
For the Three months and Fiscal Year Ended December 26, 2015 and December 27, 2014
(In thousands, except per share amounts and percentages)
(unaudited)
Three Months Ended Fiscal Year Ended
------------------ -----------------
December 27, 2014
December 26, 2015 December 27, 2014 December 26, 2015
----------------- ----------------- -----------------
As Adjustments Non-GAAP As Adjustments Non-GAAP As Adjustments Non-GAAP As Adjustments Non-GAAP
Reported Reported Reported Reported
-------- -------- -------- --------
Revenue:
Product $47,051 $ - $47,051 $36,790 $ - $36,790 $152,734 $ - $152,734 $105,594 $ - $105,594
Service 19,973 - $19,973 14,461 - $14,461 69,241 - $69,241 51,536 - $51,536
------ --- ------ --- ------ --- ------ ---
Total revenue 67,024 - 67,024 51,251 - 51,251 221,975 - 221,975 157,130 - 157,130
Cost of revenue:
Product (1) 10,262 (267) 9,995 10,319 (130) 10,189 38,878 (1,338) 37,540 31,001 (959) 30,042
Service (1) 1,669 (83) 1,586 1,722 (190) 1,532 6,917 (602) 6,315 6,447 (784) 5,663
----- --- ----- ----- ---- ----- ----- ---- ----- ----- ---- -----
11,931 (350) 11,581 12,041 (320) 11,721 45,795 (1,940) 43,855 37,448 (1,743) 35,705
------ ---- ------ ------ ---- ------ ------ ------ ------ ------ ------ ------
Gross profit 55,093 350 55,443 39,210 320 39,530 176,180 1,940 178,120 119,682 1,743 121,425
------ --- ------ ------ --- ------ ------- ----- ------- ------- ----- -------
Product Gross Margin 78% 79% 72% 72% 75% 75% 71% 72%
Service Gross Margin 92% 92% 88% 89% 90% 91% 87% 89%
Total Gross Margin 82% 83% 77% 77% 79% 80% 76% 77%
Operating expenses:
Research and development
(1) 13,171 (2,014) 11,157 10,922 (2,186) 8,736 49,571 (9,533) 40,038 42,806 (8,523) 34,283
Sales and marketing (1) 26,150 (1,769) 24,381 20,387 (1,934) 18,453 87,541 (9,792) 77,749 76,063 (8,433) 67,630
General and
administrative (1) 7,788 (2,006) 5,782 5,015 (1,607) 3,408 27,459 (9,445) 18,014 20,683 (6,780) 13,903
----- ------ ----- ----- ------ ----- ------ ------ ------ ------ ------ ------
Total operating expenses 47,109 (5,789) 41,320 36,324 (5,727) 30,597 164,571 (28,770) 135,801 139,552 (23,736) 115,816
------ ------ ------ ------ ------ ------ ------- ------- ------- ------- ------- -------
Income (loss) from
operations 7,984 6,139 14,123 2,886 6,047 8,933 11,609 30,710 42,319 (19,870) 25,479 5,609
----- ----- ------ ----- ----- ----- ------ ------ ------ ------- ------ -----
Other income (expense):
Interest income 116 - 116 92 - 92 446 - 446 308 - 308
Other expense, net (119) - (119) (31) - (31) (191) - (191) (94) - (94)
---- --- ---- --- --- --- ---- --- ---- --- --- ---
Income (loss) before
income taxes 7,981 6,139 14,120 2,947 6,047 8,994 11,864 30,710 42,574 (19,656) 25,479 5,823
Income tax (expense)
benefit (2) (3) (5,418) 1,868 (3,550) (41) (2,811) (2,852) (5,678) (7,913) (13,591) (21,134) 19,271 (1,863)
Net income (loss) 2,563 8,007 10,570 2,906 3,236 6,142 6,186 22,797 28,983 (40,790) 44,750 3,960
===== ===== ====== ===== ===== ===== ===== ====== ====== ======= ====== =====
Net income (loss) per share attributable
to common stockholders:
Basic $0.07 $0.24 $0.31 $0.09 $0.10 $0.19 $0.18 $0.68 $0.86 $(1.27) $1.39 $0.12
===== ===== ===== ===== ===== ===== ===== ===== ===== ====== ===== =====
Diluted $0.07 $0.22 $0.29 $0.09 $0.09 $0.18 $0.17 $0.63 $0.80 $(1.27) $1.39 $0.12
===== ===== ===== ===== ===== ===== ===== ===== ===== ====== ===== =====
Weighted-average number of shares used
in per share amounts:
Basic 34,252 - 34,252 32,746 - 32,746 33,618 - 33,618 32,200 - 32,200
====== === ====== ====== === ====== ====== === ====== ====== === ======
Diluted 36,229 330 36,559 33,606 580 34,186 35,866 491 36,357 32,200 1,394 33,594
====== === ====== ====== === ====== ====== === ====== ====== ===== ======
Notes:
1. Includes stock-based compensation
expense and related payroll taxes
in the three months and fiscal
years ended December 26, 2015 and
December 27, 2014.
2. Includes income tax effect of non-
GAAP adjustments in the three
months and fiscal years ended
December 26, 2015 and December
27, 2014.
3. Amount for the fiscal year ended
December 27, 2014 includes
establishment of valuation
allowance against the deferred
tax asset.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/gigamon-reports-fourth-quarter-and-fiscal-year-2015-financial-results-300211681.html
SOURCE Gigamon Inc.
