Fourth Quarter and 2012 Financial Results
Revenue for the fourth quarter of 2012 was $16.6 million, up 6% from revenue of $15.6 million in the fourth quarter of 2011. Revenue for 2012 was $59.6 million, up 34% from revenue of $44.4 million in 2011.
Net income for the fourth quarter of 2012 was $1.2 million, or $0.06 per diluted share, compared to net income of $1.8 million, or $0.12 per diluted share, for the fourth quarter of 2011. Net income for 2012 was $5.3 million, or $0.29 per diluted share, up 42% from net income of $3.8 million, or $0.28 per diluted share, for 2011.
Non-GAAP net income for the fourth quarter of 2012 was $2.4 million, or $0.12 per diluted share, compared to non-GAAP net income of $2.3 million, or $0.15 per diluted share, for the fourth quarter of 2011. Non-GAAP net income for 2012 was $9.4 million, or $0.51 per diluted share, compared to a non-GAAP net income of $5.5 million, or $0.41 per diluted share, for 2011. 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.
Procera is providing guidance of annual revenue growth in the range of 25% to 30% for 2013. We expect to gain market share in 2013 and anticipate that most of our revenue growth will occur in the second half of 2013. Our 2013 operating expenses are expected to increase over 2012, beginning in the first quarter of 2013. Because higher operating expenses will precede our anticipated second half revenue growth, we may incur operating losses in the first half of 2013 and expect operating profits in the second half of 2013, on a non-GAAP basis.
The guidance set forth above is an estimate only and actual performance could differ. The Company's financial results historically have been volatile, and a number of uncertainties and other factors may cause the Company's prior results, performance or achievements to be materially different from future results.
Conference Call Information
Procera Networks, Inc. will host a conference call at 8:30 a.m. Eastern Time today, February 28, 2013, to discuss its financial results for its fourth quarter and year ended December 31, 2012. Interested parties can access the live call by dialing 1-877-941-1427 or 1-480-629-9664 (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 Thursday, March 7, 2013, by dialing 800-406-7325 and entering the replay code of 4588176 #. 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.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements related to Procera Networks, Inc., including statements about Procera's expectations for revenue growth, operating expenses and operating results for 2013, including the expected timing of revenue growth and expenses, the impact of the company's acquisition of Vineyard Networks Inc., the market opportunity and an increase in the Company's market share, its industry and technology leadership, its ability to grow in new geographic markets, its new product offerings and its ability to successfully perform in trials and close new business from projected sales opportunities. Statements in this release that are not historical or current facts are forward-looking statements. All forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, without limitation, risks and uncertainties related to the acceptance and adoption of Procera's products; the company's ability to service and upgrade its products; lengthy sales cycles and lab and field trial delays by service providers; its dependence on a limited product line; its dependence on key employees; its ability to compete in our industry with companies that are significantly larger and have greater resources; its ability to protect its intellectual property rights in a global market; its ability to manufacture product quickly enough to meet potential demand; its ability to integrate Vineyard Networks and realize anticipated benefits from the acquisition; and other risks and uncertainties described more fully in the company's 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 described in the "Risk Factors" section of its Form 10-K filed for the year ended December 31, 2011, its quarterly reports filed on Form 10-Q in 2012, and other reports filed with the SEC, which are available free of charge on the SEC's website at http://www.sec.gov or on Procera's website at http://www.proceranetworks.com. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements in this press release are based on information available to Procera as of the date hereof, and the company undertakes no obligation to update, amend or clarify any forward-looking statement for any reason.
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