Reconciliation of GAAP to Non-GAAP Financial Measures for the Three Months Ended December 31, 2012, September 30, 2012, and December 31, 2011 and for the Twelve Months Ended December 31, 2012 and December 31, 2011:
Acme Packet, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended December 31, 2012 (in thousands, except per share data) (unaudited) Stock-based compensation Amortization expense and of acquired related intangible GAAP payroll taxes assets Non-GAAP(1) ----------- ------------- ------------ -----------Cost of revenue: Product $ 10,145 $ (379) $ (657) $ 9,109 Maintenance, support and service 3,464 (522) - 2,942Operating expenses: Sales and marketing 38,406 (6,991) (288) 31,127 Research and development 16,528 (3,201) (51) 13,276 General and administrative 5,211 (1,088) - 4,123(Benefit from) provision for income taxes (1,182) 4,305 369 3,492Net (loss) income (2,029) 7,876 627 6,474Net (loss) income per share: Basic $ (0.03) $ 0.12 $ 0.01 $ 0.10 Diluted $ (0.03) $ 0.11 $ 0.01 $ 0.09Weighted average number of shares used in the calculation of net (loss) income per share: Basic 67,627,896 67,627,896 67,627,896 67,627,896 Diluted 67,627,896 69,611,815 69,611,815 69,611,815 Acme Packet, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended September 30, 2012 (in thousands, except per share data) (unaudited) Stock-based compensation expense and Amortization related of acquired Merger payroll intangible related GAAP taxes assets costs Non-GAAP(1) ----------- ------------ ------------ ----------- -----------Cost of revenue: Product $ 9,584 $ (438)$ (658)$ - $ 8,488 Maintenance, support and service 4,261 (702) - - 3,559Operating expenses: Sales and marketing 35,090 (6,794) (261) - 28,035 Research and development 16,898 (4,181) (51) - 12,666 General and administrative 6,154 (1,336) - - 4,818 Merger related costs 30 - - (30) -(Benefit from) provision for income taxes (1,129) 3,844 359 - 3,074Net (loss) income (5,515) 9,607 611 30 4,733Net (loss) income per share: Basic $ (0.08)$ 0.14 $ 0.01 $ 0.00 $ 0.07 Diluted $ (0.08)$ 0.14 $ 0.01 $ 0.00 $ 0.07Weighted average number of shares used in the calculation of net (loss) income per share: Basic 68,246,091 68,246,091 68,246,091 68,246,091 68,246,091 Diluted 68,246,091 70,102,125 70,102,125 70,102,125 70,102,125 Acme Packet, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures Three Months Ended December 31, 2011 (in thousands, except per share data) (unaudited) Stock-based compensation expense and Amortization related of acquired payroll intangible GAAP taxes assets Non-GAAP(1) ----------- ------------ ------------ -----------Cost of revenue: Product $ 12,155 $ (314) $ (385) $ 11,456 Maintenance, support and service 3,118 (577) - 2,541Operating expenses: Sales and marketing 29,940 (4,857) (100) 24,983 Research and development 14,221 (3,063) (11) 11,147 General and administrative 6,073 (1,574) - 4,499Provision for income taxes 8,681 1,148 174 10,003Net income $ 8,717 $ 9,237 $ 322 $ 18,276Net income per share: Basic $ 0.13 $ 0.14 $ 0.00 $ 0.27 Diluted $ 0.12 $ 0.13 $ 0.00 $ 0.26Weighted average number of shares used in the calculation of net (loss) income per share: Basic 67,314,606 67,314,606 67,314,606 67,314,606 =========== ============ ============ =========== Diluted 70,679,690 70,679,690 70,679,690 70,679,690 =========== ============ ============ =========== Acme Packet, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, 2012 (in thousands, except per share data) (unaudited) Stock-based compensation expense and related GAAP payroll taxes ------------- ------------- Cost of revenue: Product $ 39,492 $ (1,687) Maintenance, support and service 15,358 (2,642) Operating expenses: Sales and marketing 136,636 (26,769) Research and development 64,780 (16,031) General and administrative 23,652 (6,003) Merger related costs 643 - (Benefit from) provision for income taxes (914) 17,694 Net (loss) income (5,242) 35,439 Net (loss) income per share: Basic $ (0.08) $ 0.52 Diluted $ (0.08) $ 0.50 Weighted average number of common shares used in the calculation of net income per share: Basic 68,084,305 68,084,305 Diluted 68,084,305 70,445,310 Amortization of acquired Merger intangible related assets costs Non-GAAP(1) ------------- ------------- -------------Cost of revenue: Product $ (2,332) $ - $ 35,473 Maintenance, support and service - - 12,716Operating expenses: Sales and marketing (844) - 109,023 Research and development (136) - 48,613 General and administrative - - 17,649 Merger related costs - (643) -(Benefit from) provision for income taxes 1,235 - 18,015Net (loss) income 2,077 643 32,917Net (loss) income per share: Basic $ 0.03 $ 0.01 $ 0.48 Diluted $ 0.03 $ 0.01 $ 0.47Weighted average number of common shares used in the calculation of net income per share: Basic 68,084,305 68,084,305 68,084,305 Diluted 70,445,310 70,445,310 70,445,310 Acme Packet, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures Twelve Months Ended December 31, 2011 (in thousands, except per share data) (unaudited) Stock-based compensation expense and related GAAP payroll taxes ------------- ------------- Cost of revenue: Product $ 42,245 $ (1,230) Maintenance, support and service 11,691 (2,095) Operating expenses: Sales and marketing 105,580 (17,661) Research and development 51,483 (10,886) General and administrative 21,844 (5,472) Merger related costs 300 - Provision for income taxes 29,576 11,022 Net income $ 44,360 $ 26,322 Net income per share: Basic $ 0.67 $ 0.40 Diluted $ 0.63 $ 0.37 Weighted average number of common shares used in the calculation of net income per share: Basic 66,346,008 66,346,008 Diluted 70,902,293 70,902,293 Amortization of acquired Merger intangible related assets costs Non-GAAP(1) ------------- ------------- -------------Cost of revenue: Product $ (1,677) $ - $ 39,338 Maintenance, support and service - - 9,596Operating expenses: Sales and marketing (387) - 87,532 Research and development (45) - 40,552 General and administrative - - 16,372 Merger related costs - (300) -Provision for income taxes 755 43 41,396Net income $ 1,354 $ 257 $ 72,293Net income per share: Basic $ 0.02 $ 0.00 $ 1.09 Diluted $ 0.02 $ 0.00 $ 1.02Weighted average number of common shares used in the calculation of net income per share: Basic 66,346,008 66,346,008 66,346,008 Diluted 70,902,293 70,902,293 70,902,293 Acme Packet, Inc. Other Operational Data (unaudited) Three Months Ended ----------------------------------------- December 31, September 30, December 31, 2012 2012 2011 ------------- ------------- -------------Other operational data:Depreciation and amortization (in thousands) $ 4,013 $ 3,991 $ 2,944Capital expenditures (in thousands) 8,902 5,151 4,186Days sales outstanding 75 79 65Total headcount 880 863 752Quarterly inventory turnover - annualized 3.71 3.28 4.41
