Procera Networks, Inc. (NYSE Amex: PKT), the intelligent policy
enforcement company, today reported financial results for its third
quarter ended September 30, 2011.
Third Quarter Highlights
- Revenue of $12.2 million, up 158% from Q310
- Bookings of $21 million, up 360% from Q310
- Added 15 new service provider customers
- Won two new Tier-1 customers in APAC including one fixed and
one mobile operator
- Received significant follow on orders during the quarter,
including multi-million dollar follow-on orders from a leading
European mobile operator and a leading North American cable
operator
- Support revenue of $2.1 million, up 66% from Q310
- Received 53 new higher education product orders
- 18 direct Tier-1 trials ongoing or planned over the next 90
days
- Gross margin of 61%, compared to 62% in Q211 and 57% in
Q310
- Net income of $2.0 million, compared to a net loss of $0.7
million in Q310
- Cash and short-term investments was $34.3 million at September
30, 2011
Financial Guidance Procera is increasing
its annual revenue guidance for 2011 to $40 million, representing
growth of 100% year-over-year.
Business Discussion James Brear, president
and CEO of Procera Networks, commented, "We had strong business
momentum in the third quarter with traction across all our business
segments, resulting in record quarterly revenue, bookings and GAAP
net income. Our strong quarterly bookings reflect substantial
follow-on orders received during the quarter, which exceeded our
expectations and include large follow-on orders from previous new
customer wins. In addition, we announced initial orders from two
new Tier-1 customers in Asia that include a cable and a mobile
operator.
"Our strong quarterly results were driven by our traction in the
cable market, where we had continued success in displacing existing
solutions. Looking forward we see important opportunities within
fixed line operators for displacement, as well as for deployment of
our solutions where none existed before. We also continue to gain
traction within the rapidly growing mobile market and expect a
strong contribution from this market in the fourth quarter."
Third Quarter 2011 Financial Results
Revenue for the third quarter of 2011 was $12.2 million, up 158%
from revenue of $4.7 million in the third quarter of 2010. Total
revenue for the nine months ended September 30, 2011 was $28.8
million, a 125% increase from $12.8 million in the first nine
months of 2010.
GAAP net income for the third quarter was $2.0 million, or $0.14
per diluted share, compared to a net loss of $739,000, or a loss of
$0.07 per share, in the third quarter of 2010. GAAP net income for
the first nine months of 2011 was $2.0 million, or $0.16 per share,
compared to a net loss of $3.1 million, or a loss of $0.29 per
share, for the first nine months of 2010.
Non-GAAP net income for the third quarter of 2011 was $2.5
million, compared to a non-GAAP net loss of $382,000 in the third
quarter of 2010. Non-GAAP net income for the first nine months of
2011 was $3.2 million, compared to a non-GAAP net loss of $2.1
million for the first nine-months of 2010. For an explanation of
non-GAAP financial measures used in this release, and
reconciliation to comparable GAAP measures, please refer to the Use
of Non-GAAP Financial Information below.
Conference Call Information Procera
Networks, Inc. will host a conference call at 4:30 p.m. Eastern
Time today to discuss its financial results for the third quarter
ended September 30, 2011. Interested parties can access the live
call by dialing 877-941-2068 or 480-629-9712 (International) and
request the "Procera" call. A replay of the call will be available
approximately one hour following the end of the call through 11:59
p.m. ET on Monday, November 14, 2011, by dialing 800-406-7325 and
entering the replay code of 4482266#. To access the replay from
international locations, dial 303-590-3030 using the same passcode.
An archive of the conference call will be available on the
Quarterly Results and Events section of the Procera Networks'
Investor Relations Web site at
www.proceranetworks.com/investors.
Safe Harbor Statement This press release
contains forward-looking statements, including statements relating
to expectations for revenue growth in 2011, our ability to win new
business, obtaining follow-on orders from new and existing
customers, and the expected demand for Procera Networks' products
and services. These forward-looking statements involve risks and
uncertainties, as well as assumptions that, if they do not fully
materialize or prove incorrect, could cause our results to differ
materially from those expressed or implied by such forward-looking
statements, including risks related to the acceptance and adoption
of our products; our ability to service and upgrade our products;
lengthy sales cycles and lab and field trial delays by service
providers; our dependence on a limited product line; our dependence
on key employees; our ability to compete in our industry with
companies that are significantly larger and have greater resources;
our ability to protect our intellectual property rights in a global
market; our ability to manufacture product quickly enough to meet
potential demand; and other risks and uncertainties described more
fully in our documents filed with or furnished to the Securities
and Exchange Commission. More information about these and other
risks that may impact Procera Networks' business are set forth in
our Form 10-Q filed for the quarter ended June 30, 2011 and our
Form 10-K filed for the year ended December 31, 2010. All
forward-looking statements in this press release are based on
information available to us as of the date hereof, and we assume no
obligation to update these forward-looking statements.
Use of Non-GAAP Financial Information
Procera's management believes that certain non-GAAP financial
measures, when taken together with the corresponding consolidated
GAAP measures and related segment information, provide incremental
insight into the underlying factors and trends affecting both
Procera's performance and its cash generating potential. Management
believes these non-GAAP measures increase the transparency of the
company's current results and enable investors to more fully
understand trends in its current and future performance.
Thus, in addition to the financial results presented in
accordance with Generally Accepted Accounting Principles (GAAP),
this press release and the accompanying tables and the related
earnings conference call contain certain non-GAAP financial
measures that we believe are helpful in understanding our financial
performance. For reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures,
please see the section of the accompanying tables titled, "GAAP to
Non-GAAP Reconciliations." Management regularly uses these
supplemental non-GAAP financial measures internally to understand
and manage our business and forecast future periods. Our non-GAAP
financial measures include adjustments for stock-based compensation
expenses: we have excluded the effect of stock-based compensation
from our non-GAAP gross profit, operating expenses and net income
measures. Although stock-based compensation is a key incentive
offered to our employees and consultants, we continue to evaluate
our business performance excluding stock-based compensation
expenses. Stock-based compensation expenses will recur in future
periods.
The non-GAAP financial measures are not consistent with GAAP
because they do not fully reflect non-cash expenses. The
above-mentioned non-GAAP measures are generated by adjusting the
related GAAP measures solely to reverse the effect of the above
mentioned non-cash expenses. The Company uses these financial
measures to provide additional insight into current operating and
business trends not readily apparent from the GAAP results.
Management believes users of Procera's financial statements will
benefit from greater transparency in referring to these non-GAAP
financial measures when assessing the Company's operating results,
as well as when forecasting and analyzing future periods. However,
management recognizes that:
- these non-GAAP financial measures are limited in their
usefulness and should be considered only as a supplement to the
Company's GAAP financial measures;
- these non-GAAP financial measures should be read in conjunction
with our consolidated financial statements prepared in accordance
with GAAP;
- these non-GAAP financial measures should not be considered in
isolation from, or as a substitute for, the Company's GAAP
financial measures;
- these non-GAAP financial measures should not be considered to
be superior to the Company's GAAP financial measures;
- these non-GAAP financial measures were not prepared in
accordance with GAAP and investors should not assume that the
non-GAAP financial measures presented in this earnings release were
prepared under a comprehensive set of rules or principles; and
- management intends to continue to track and present these
non-GAAP financial measures for future periods.
Further, these non-GAAP financial measures may be unique to
Procera, as they may be different from non-GAAP financial measures
used by other companies. As such, this presentation of non-GAAP
financial measures may not enhance the comparability of the
Company's results to the results of other companies.
A reconciliation of each non-GAAP financial measure to the most
directly comparable GAAP financial measure or measures appears at
the end of this press release.
About Procera Networks, Inc. Procera
Networks, Inc. delivers Intelligent Policy Enforcement (IPE)
solutions, leveraging advanced Deep Packet Inspection (DPI)
technology. This enables carriers, services providers and higher
education institutions to improve the quality and lifetime of their
networks, better monetize their infrastructure investments, control
hazards, and create attractive services for their users by making
qualified business decisions based on granular user and traffic
intelligence. Procera's core product suite, the PacketLogic line of
platforms, is an engine that drives the PCC (Policy and Charging
Control) ecosystem, by enforcing advanced network and service
policies. PacketLogic is deployed at more than 600 customers who
value the unparalleled accuracy and high-end performance of the
PacketLogic solution. Founded in 2002, Procera (NYSE Amex: PKT) is
based in Silicon Valley and has offices around the globe. More
information is available at www.proceranetworks.com.
Procera Networks, Inc.
Condensed Consolidated Statements of Operations
Unaudited
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
2011 2010 2011 2010
----------- ----------- ----------- -----------
Sales:
Product sales $10,128,362 $ 3,491,821 $24,006,619 $ 9,588,376
Support sales 2,064,841 1,242,956 4,765,451 3,216,768
----------- ----------- ----------- -----------
Total sales 12,193,203 4,734,777 28,772,070 12,805,144
Cost of Sales:
Product cost of sales 4,472,928 1,891,090 10,619,984 5,266,405
Support cost of sales 255,822 131,884 516,492 392,809
----------- ----------- ----------- -----------
Total cost of sales 4,728,750 2,022,974 11,136,476 5,659,214
----------- ----------- ----------- -----------
Gross profit 7,464,453 2,711,803 17,635,594 7,145,930
----------- ----------- ----------- -----------
61.2% 57.3% 61.3% 55.8%
Operating expenses:
Research and
development 1,024,304 859,987 3,303,546 2,271,108
Sales and marketing 2,975,840 1,614,384 8,183,785 4,831,885
General and
administrative 1,393,413 934,243 3,982,432 3,000,102
----------- ----------- ----------- -----------
Total operating
expenses 5,393,557 3,408,614 15,469,763 10,103,095
----------- ----------- ----------- -----------
Income (loss) from
operations 2,070,896 (696,811) 2,165,831 (2,957,165)
----------- ----------- ----------- -----------
Interest and other
income (expense), net (26,023) (40,438) (90,640) (115,889)
----------- ----------- ----------- -----------
Income (loss) before
income taxes 2,044,873 (737,249) 2,075,191 (3,073,054)
Income tax provision - 1,723 79,416 2,979
----------- ----------- ----------- -----------
Net income (loss) $ 2,044,873 $ (738,972) $ 1,995,775 $(3,076,033)
=========== =========== =========== ===========
Net income (loss) per
share - basic $ 0.14 $ (0.07) $ 0.16 $ (0.29)
=========== =========== =========== ===========
Net income (loss) per
share - diluted $ 0.14 $ (0.07) $ 0.16 $ (0.29)
=========== =========== =========== ===========
Shares used in computing
net income (loss) per
share*:
Basic 14,357,639 11,208,272 12,488,852 10,792,888
Diluted 14,592,691 11,208,272 12,718,804 10,792,888
* Shares used in per share calculations reflect a 1-for-10 reverse stock
split effected by the Company on February 4, 2011.
Procera Networks, Inc.
Condensed Consolidated Balance Sheets
September 30, December 31,
2011 2010
------------- -------------
ASSETS
Current Assets:
Cash and cash equivalents $ 18,915,278 $ 7,875,798
Short-term investments 15,424,138 -
Accounts receivable, net of allowance 12,410,011 11,407,220
Inventories, net 3,978,899 2,549,695
Prepaid expenses and other 1,783,371 831,737
------------- -------------
Total current assets 52,511,697 22,664,450
Property and equipment, net 1,283,088 873,173
Goodwill 960,209 960,209
Other non-current assets 10,791 19,150
------------- -------------
Total assets $ 54,765,785 $ 24,516,982
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ - $ 1,718,732
Accounts payable 2,452,888 1,943,799
Deferred revenue 5,045,951 3,732,756
Accrued liabilities 3,158,917 2,662,564
------------- -------------
Total current liabilities 10,657,756 10,057,851
Non-current liabilities:
Deferred revenue 868,124 704,735
------------- -------------
Total liabilities 11,525,880 10,762,586
Commitments and contingencies - -
Stockholders' equity:
Common stock 14,449 11,315
Additional paid-in capital 103,925,381 76,093,272
Accumulated other comprehensive loss (677,392) (331,883)
Accumulated deficit (60,022,533) (62,018,308)
------------- -------------
Total stockholders' equity 43,239,905 13,754,396
------------- -------------
Total liabilities and stockholders' equity $ 54,765,785 $ 24,516,982
============= =============
Procera Networks, Inc.
GAAP to Non-GAAP Reconciliation; and Supplemental Financial Information
Unaudited
Three Months Ended Nine Months Ended
-------------------------------- ---------------------
September September September September
30, June 30, 30, 30, 30,
2011 2011 2010 2011 2010
---------- ---------- ---------- ---------- ----------
Sales - U.S. GAAP as
reported 12,193,203 9,655,975 4,734,777 28,772,070 12,805,144
Reconciliation of
Gross Profit:
U.S. GAAP as
reported 7,464,453 5,967,737 2,711,803 17,635,594 7,145,930
As a percentage of
sales 61.2% 61.8% 57.3% 61.3% 55.8%
Adjustment:
Stock-based
compensation
(1) 25,847 26,452 19,948 77,058 63,799
---------- ---------- ---------- ---------- ----------
As Adjusted 7,490,300 5,994,189 2,731,751 17,712,652 7,209,729
As a percentage of
sales 61.4% 62.1% 57.7% 61.6% 56.3%
Reconciliation of
Operating Expense:
U.S. GAAP as
reported 5,393,557 5,697,555 3,408,614 15,469,763 10,103,095
Adjustment:
Stock-based
compensation
(1) 409,440 387,483 336,676 1,137,583 932,712
---------- ---------- ---------- ---------- ----------
As Adjusted 4,984,117 5,310,072 3,071,938 14,332,180 9,170,383
Reconciliation of
Net Income (Loss):
U.S. GAAP as
reported 2,044,873 180,571 (738,972) 1,995,775 (3,076,033)
Adjustment:
Stock-based
compensation
(1) 435,287 413,935 356,624 1,214,641 996,511
---------- ---------- ---------- ---------- ----------
As Adjusted 2,480,160 594,506 (382,348) 3,210,416 (2,079,522)
========== ========== ========== ========== ==========
(1) Stock-based compensation expense is calculated in accordance with the
fair value recognition provisions of Statements of Financial
Accounting Standards No. 123 (R).
Investor Relations Contact Charles Messman Todd Kehrli
MKR Group Inc. 323-468-2300 pkt@mkr-group.com Press Contact
Fran Lowe Engage PR 510-748-8200 x225 FLowe@engagepr.com
Procera Networks, Inc. (AMEX:PKT)
Graphique Historique de l'Action
De Déc 2024 à Jan 2025
Procera Networks, Inc. (AMEX:PKT)
Graphique Historique de l'Action
De Jan 2024 à Jan 2025
