SolarWinds (SWI)
Managing networks can be a pretty complicated process, but SolarWinds makes software that tries to make it easier and more efficient. Not only that, they also have an online community called Thwack that helps users solve any problems or questions they have about a SolarWinds product.
SolarWinds Announces Fourth Quarter and Full Year 2009 Results
provider of powerful and affordable IT management software to more than
90,000 customers worldwide, today reported results for its fourth quarter
and fiscal year ended
Financial Results
2008, and reported total revenue for the full year 2009 of
a 25% increase over total revenue for the full year 2008.
License revenue was
representing a 26% increase over license revenue in the fourth quarter of
2008. Maintenance revenue was
representing a 40% increase over maintenance revenue in the fourth quarter
of 2008.
Non-GAAP operating income was
or 53% of revenue, compared to
fourth quarter of 2008. Non-GAAP net income was
diluted earnings per share was
compared to
On a GAAP basis, operating income was
share was
of
quarter of 2008. For the full year 2009, operating income was
million
income of
full year 2008.
Non-GAAP operating income was
of revenue, compared to
2008. Non-GAAP net income was
per share was
Non-GAAP net income and operating income exclude stock-based compensation
expense, amortization of intangible assets, expenses related to the
secondary offering of common stock by certain of our stockholders, lawsuit
settlement and related legal fees, the write-off of debt issuance costs and
the related tax impact of these items. Non-GAAP diluted earnings per share
is equal to non-GAAP net income divided by non-GAAP weighted average shares
outstanding, which adjusts GAAP weighted average shares outstanding to
assume that the conversion of preferred stock in
beginning of the applicable period.
Net cash provided by operating activities was
quarter of 2009, representing a 71% increase over net cash provided by
operating activities in the fourth quarter of 2008. Net cash provided by
operating activities was
a 40% increase over net cash provided by operating activities for the full
year 2008. Adjusted cash flow, which is defined as net cash provided by
operating activities plus cash interest paid, cash taxes paid and lawsuit
settlement and related legal fees, was
of 2009 and
million
respectively.
Information about
provided under "Non-GAAP Financial Measures" below.
Recent Business Highlights
"The fourth quarter of 2009 was a strong quarter for
due to a significant increase in interest and purchasing activity from
commercial market customers, globally," said
President, Chief Operating Officer and Chief Financial Officer. "The
investments we have made over the past year in our product portfolio,
coupled with the focus on our international sales and marketing efforts,
have resulted in not only increased global demand for
but also improved our ability to satisfy that demand."
"2009 was an important year for
results and achievements are a reflection of investments and initiatives we
made throughout the year in our people, products, operations and market
awareness. As we continue to drive further demand for our products, we
believe that we are well positioned to capitalize on that demand, and to
quickly and seamlessly add capacity to our operations as needed."
Other business highlights:
-- InDecember 2009 , the outstanding litigation with a former employee,
which has been previously disclosed inSolarWinds' public filings, was
completely and fully resolved. This resulted in settlement costs and
related legal fees of$7.5 million in the fourth quarter.
--SolarWinds released new versions of key products, including its most
popular free tool, SolarWinds TFTP Server, andSolarWinds ipMonitor.
SolarWinds also released updates to Orion Network Configuration Manager
(NCM), Orion Application Performance Monitor (APM), and Orion IP
Address Manager (IPAM).
-- In November,SolarWinds facilitated the secondary offering of
13.8 million shares of common stock by certain of its stockholders.
-- For the second year in a row,SolarWinds was chosen byRedmond readers as the best Independent Software Vendor (ISV) and
magazine's
preferred performance management product over HP OpenView?? in the
2009 Reader's Choice Awards. SolarWinds Network Management Software
was also named the ISV winner and preferred product in the "Best
Network Management Product" category.
-- InJanuary 2010 ,SolarWinds completed the acquisition of
Tek-Tools, Inc. , expanding its product offerings to include storage
resource and virtualization management.
"Our commitment to providing the IT community with powerful, easy-to-use
and affordable management solutions continues to be rewarded through broad
market recognition and the trust our customers place in our products to
help them manage mission-critical IT environments," continued
Thompson
to continue to build on our reputation of delivering powerful, easy-to-use
and effective products that address the immediate needs of our customers
and the market."
Financial Outlook
As of
quarter of 2010 and its full year ending
information below represents forward-looking non-GAAP financial
information, including an estimate of non-GAAP operating income, non-GAAP
net income and non-GAAP diluted earnings per share, for the first quarter
and full year 2010. These non-GAAP financial measures exclude, among other
items mentioned previously, stock-based compensation expense and
acquisition-related costs.
expected stock-based compensation expense for these future periods as the
amounts depend upon such factors as the future price of
for purposes of computation. In addition, costs related to acquisitions
are not something that
what acquisitions, if any, are completed and what kinds of costs are
incurred in connection with any such acquisitions.
Financial Outlook for Full Year 2010
for the full year 2010:
-- Total revenue in the range of$159.0-$164.0 million
-- Non-GAAP operating income of$77.5-$80.5 million
-- Non-GAAP net income of$54.0-$56.0 million
-- Non-GAAP diluted earnings per share of$0.72 -$0. 75
-- Weighted average shares outstanding of approximately 74.8 million
Financial Outlook for the First Quarter of 2010
for the first quarter of 2010:
-- Total revenue in the range of$33.7-$34.7 million
-- Non-GAAP operating income of$16.2-$16.7 million
-- Non-GAAP net income of$11.3-$11.7 million
-- Non-GAAP diluted earnings per share of$0.15-$0.16
-- Weighted average shares outstanding of approximately 73.8 million
Conference Call and Webcast
In conjunction with this announcement,
call today to discuss its financial results and other business at
CST
press release and any other financial and statistical information about the
periods to be presented in the conference call will be available on the
SolarWinds Investor Relations website at http://ir.solarwinds.com. A live
dial-in is available domestically at 888-554-1417 and internationally at
+1-719-785-9447. It is recommended that participants access the webcast or
dial into the call at least 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 relating to
growth and market opportunities and
opportunities. 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 "expects,"
"believes," "hopes," "will," 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)
the failure to integrate Tek-Tools and any future acquisitions
successfully; (e) the timing and success of new product introductions by
described more fully in documents filed with or furnished to the
and Exchange Commission
third quarter of 2009 and Form 10-K for the full year 2009 that we
anticipate filing on or before
in this release is as of the date hereof and
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 the following
non-GAAP financial measures: non-GAAP operating income, non-GAAP net
income, non-GAAP diluted earnings per share, adjusted EBITDA, adjusted cash
flow and non-GAAP weighted average shares outstanding. Each of non-GAAP
operating income, non-GAAP net income, non-GAAP diluted earnings per share
and adjusted EBITDA exclude the impact of stock-based compensation expense,
amortization of intangible assets, lawsuit settlement and related legal
fees, secondary offerings expenses and acquisition costs from the
comparable GAAP measure. Each of non-GAAP net income, non-GAAP diluted
earnings per share and adjusted EBITDA also excludes the write-off of debt
issuance costs and the tax benefits related to these items from the
comparable GAAP measure. This press release also contains a reconciliation
of each of these non-GAAP measures to its most comparable GAAP financial
measure.
meaningful supplemental information regarding its liquidity and performance
by excluding certain expenses and expenditures that may not be indicative
of its core business operations.
Directors use these non-GAAP measures to assess liquidity and operational
performance as well as 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.
investors and security analysts to (a) compare and evaluate its performance
from period to period and (b) compare its performance and liquidity 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.
These items are typically interest expense, income tax expense,
depreciation and amortization and stock-based compensation expense.
useful liquidity measures for investors and security analysts. Adjusted
EBITDA is also the performance measure for two of the key operational
covenants used to assess
credit agreements.
cash flow provide useful information to management and investors about the
amount of cash generated by the business that, after the acquisition of
property and equipment, can be used for strategic opportunities, including
investing in the business, making strategic acquisitions and increasing
cash balances.
frequently used by investors and securities analysts in their evaluations
of companies, 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. Items such as the amortization of
intangible assets, stock-based compensation expense, acquisition costs,
interest expense and income tax expense that are excluded from these
non-GAAP financial measures can have a material impact on net earnings.
Furthermore, Adjusted EBITDA and adjusted cash flow does not reflect (a)
interest expense, interest income or cash requirements for income taxes;
(b) cash requirements for potential replacements of assets being
depreciated or amortized in the future; (c) cash expenditures or future
requirements for capital expenditures or other contractual commitments; (d)
changes in, or cash requirements for, working capital needs; (e) cash
payment for the one-time settlement of an outstanding lawsuit and related
legal fees; or (f) 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, operating
income, net income, cash flow from operations or other measures of
performance prepared in accordance with GAAP.
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 included elsewhere in this
press release.
About
more than 90,000 customers worldwide -- from Fortune 500 enterprises to
small businesses. Focused on the real-world needs of network
professionals,
maintain, and provide the power, scale, and flexibility needed to manage
today's complex network environments.
community, thwack, offers users problem-solving and technology-sharing for
all of
other company and product names mentioned are used only for identification
purposes and may be trademarks or registered trademarks of their respective
companies.
SolarWinds, Inc.
Consolidated Balance Sheets
(In thousands, except for per share information)
(unaudited)
December 31, December 31,
2009 2008
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 129,788 $ 40,566
Accounts receivable, net of allowances of
$ 149 and $ 117 as of December 31, 2009
and December 31, 2008, respectively 15,786 13,722
Income tax receivable 109 728
Deferred taxes 252 40
Prepaid income taxes 4,675 -
Other current assets 2,116 1,420
------------- -------------
Total current assets 152,726 56,476
Property and equipment, net 6,406 5,178
Debt issuance costs, net 399 1,101
Deferred taxes 2,078 1,847
Goodwill 15,444 15,745
Intangible assets and other, net 4,417 6,560
------------- -------------
Total assets $ 181,470 $ 86,907
============= =============
Liabilities, convertible preferred stock and
stockholders' equity (deficit)
Current liabilities:
Accounts payable $ 3,293 $ 1,471
Accrued liabilities 4,928 3,284
Accrued interest payable 539 2,011
Income taxes payable 284 201
Current portion of deferred revenue 37,103 25,930
Current portion of capital lease
obligations 9 25
Current portion of long-term debt 16,871 7,161
------------- -------------
Total current liabilities 63,027 40,083
Long-term liabilities:
Deferred revenue, net of current portion 1,544 1,232
Capital lease obligations, net of current
portion - 10
Other long-term liabilities 607 188
Long-term debt, net of current portion 27,226 93,922
------------- -------------
Total long-term liabilities 29,377 95,352
------------- -------------
Total liabilities 92,404 135,435
Commitments and contingencies
Convertible preferred stock,$0.001 par
value: no shares authorized and no shares
issued and outstanding as ofDecember 31, and 46,551,618 shares authorized and
2009
27,000,003 shares issued and outstanding
as of December 31, 2008 - 27
Stockholders' equity (deficit):
Common stock,$0.001 par value: 123,000,000
shares authorized and 66,502,098 and
28,166,656 shares issued and outstanding
as ofDecember 31, 2009 and December 31,
2008, respectively 67 28
Additional paid-in capital 123,083 15,166
Accumulated other comprehensive loss (159) (315)
Accumulated deficit (33,925) (63,434)
------------- -------------
Total stockholders' equity (deficit) 89,066 (48,555)
------------- -------------
Total liabilities, convertible preferred
stock and stockholders' equity (deficit) $ 181,470 $ 86,907
============= =============
SolarWinds, Inc.
Consolidated Statements of Income
(In thousands, except for per share information)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenue:
License $ 17,601 $ 13,916 $ 62,378 $ 55,461
Maintenance and other 15,378 10,981 54,068 37,674
-------- -------- -------- --------
Total revenue 32,979 24,897 116,446 93,135
Cost of license revenue 36 81 494 272
Cost of maintenance and other
revenue 1,239 901 4,366 3,316
-------- -------- -------- --------
Gross profit 31,704 23,915 111,586 89,547
Operating expenses:
Sales and marketing 8,858 6,466 30,548 22,664
Research and development 3,032 2,203 11,199 8,452
General and administrative 12,911 3,978 26,038 16,464
-------- -------- -------- --------
Total operating expenses 24,801 12,647 67,785 47,580
-------- -------- -------- --------
Operating income 6,903 11,268 43,801 41,967
Other income (expense):
Interest income 42 128 267 528
Interest expense (594) (2,104) (4,253) (8,539)
Other income (expense) 178 (891) 90 (934)
-------- -------- -------- --------
Total other expense (374) (2,867) (3,896) (8,945)
-------- -------- -------- --------
Income before income taxes 6,529 8,401 39,905 33,022
Income tax expense (benefit) (19) 2,761 10,396 10,717
-------- -------- -------- --------
Net income 6,548 5,640 29,509 22,305
Amount allocated to participating
preferred stockholders - (2,761) - (10,922)
-------- -------- -------- --------
Net income available to common
stockholders $ 6,548 $ 2,879 $ 29,509 $ 11,383
======== ======== ======== ========
Net income available to common
stockholders per share:
Basic earnings per share
available to common
stockholders $ 0.10 $ 0.10 $ 0.58 $ 0.40
======== ======== ======== ========
Diluted earnings per share
available to common
stockholders $ 0.09 $ 0.09 $ 0.52 $ 0.35
======== ======== ======== ========
Weighted shares used to compute net
income available to common
stockholders per share:
Shares used in computation of
basic earnings per share
available to common
stockholders 65,661 28,157 51,042 28,137
======== ======== ======== ========
Shares used in computation of
diluted earnings per share
available to common
stockholders 71,935 33,380 56,824 32,652
======== ======== ======== ========
SolarWinds, Inc.
Reconciliation of GAAP to Non-GAAP Results of Operations
(In thousands, except for per share information)
(unaudited)
Three Months Ended Three Months Ended
December 31, 2009 December 31, 2008
------------------------------ ------------------------------
GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP
-------- ------- -------- -------- ------- --------
Total
revenue $ 32,979 $ - $ 32,979 $ 24,897 $ - $ 24,897
Gross
profit 31,704 57 31,761 23,915 75 23,990
Operating
expenses 24,801 (10,577) 14,224 12,647 (1,932) 10,715
-------- ------- -------- -------- ------- --------
Operating
income 6,903 10,634 (a) 17,537 11,268 2,007 (a) 13,275
Total
other
expense (374) - (374) (2,867) - (2,867)
-------- ------- -------- -------- ------- --------
Income
before
income
taxes 6,529 10,634 17,163 8,401 2,007 10,408
Income
tax
expense
(benefit) (19) 3,679 (b) 3,660 2,761 393 (b) 3,154
-------- ------- -------- -------- ------- --------
Net income $ 6,548 $ 6,955 $ 13,503 $ 5,640 $ 1,614 $ 7,254
======== ======= ======== ======== ======= ========
(a) Reflects the reversal of amortization of intangible assets, stock-based
compensation expense and other excluded expenses as follows:
Amortization of intangible
assets:
Three Months Ended
December 31,
---------------------
2009 2008
---------- ----------
Cost of license revenue $ 30 $ 58
Sales and marketing - -
Research and development - -
General and administrative 81 26
Stock-based compensation expense:
Three Months Ended
December 31,
---------------------
2009 2008
---------- ----------
Cost of maintenance revenue $ 27 $ 17
Sales and marketing 515 414
Research and development 333 192
General and administrative 1,388 994
Other excluded expenses:
Three Months Ended
December 31,
---------------------
2009 2008
---------- ----------
Lawsuit settlement and related
legal fees $ 7,480 $ 306
Secondary offering costs 720 -
Acquisition costs 60 -
(b) Reflects the removal of the tax benefits associated with amortization
of intangible assets, stock-based compensation expense and other
excluded expenses.
SolarWinds, Inc.
Reconciliation of GAAP to Non-GAAP Results of Operations
(In thousands, except for per share information)
(unaudited)
Year Year
Ended Ended
December 31, 2009 December 31, 2008
-------------------------------- -----------------------------
GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP
--------- -------- --------- -------- ------- --------
Total
revenue $ 116,446 $ - $ 116,446 $ 93,135 $ - $ 93,135
Gross
profit 111,586 559 112,145 89,547 295 89,842
Operating
expenses 67,785 (17,352) 50,433 47,580 (6,548) 41,032
--------- -------- --------- -------- ------- --------
Operating
income 43,801 17,911 (a) 61,712 41,967 6,843 (a) 48,810
Total
other
expense (3,896) 428 (c) (3,468) (8,945) - (8,945)
--------- -------- --------- -------- ------- --------
Income
before
income
taxes 39,905 18,339 58,244 33,022 6,843 39,865
Income
tax
expense 10,396 5,323 (b) 15,719 10,717 1,342 (b) 12,059
--------- -------- --------- -------- ------- --------
Net income $ 29,509 $ 13,016 $ 42,525 $ 22,305 $ 5,501 $ 27,806
========= ======== ========= ======== ======= ========
(a) Reflects the reversal of amortization of intangible assets, stock-based
compensation expense and other excluded expenses as follows:
Amortization of intangible
assets:
Year Ended
December 31,
-------------------------
2009 2008
------------ ------------
Cost of license revenue $ 480 $ 232
Sales and marketing - -
Research and development - -
General and administrative 209 98
Stock-based compensation expense:
Year Ended
December 31,
-------------------------
2009 2008
------------ ------------
Cost of maintenance revenue $ 79 $ 63
Sales and marketing 1,950 1,593
Research and development 1,151 755
General and administrative 4,711 3,509
Other excluded expenses:
Year Ended
December 31,
-------------------------
2009 2008
------------ ------------
Lawsuit settlement and related
legal fees $ 8,551 $ 593
Secondary offering costs 720 -
Acquisition costs 60 -
(b) Reflects the removal of the tax benefits associated with amortization
of intangible assets, stock-based compensation expense, write-off of
debt issuance costs and other excluded expenses.
(c) The amortization of debt issuance cost was decreased as a result of the
lower outstanding principal balance due to the repayment of the
long-term debt.
SolarWinds, Inc.
Reconciliation of Diluted Earnings Per Share to Non-GAAP Diluted
Earnings Per Share
(In thousands, except for per share information)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Numerator:
Reconciliation between GAAP and
non-GAAP net income:
Net income $ 6,548 $ 5,640 $ 29,509 $ 22,305
Reversal of intangible assets
amortization 111 84 689 330
Reversal of stock-based
compensation expense 2,263 1,617 7,891 5,920
Reversal of debt issuance costs
write-off - - 428 -
Reversal of secondary offering
costs 720 - 720 -
Reversal of lawsuit settlement
costs and related legal fees 7,480 306 8,551 593
Reversal of acquisition related
costs 60 - 60 -
Reversal of tax benefits
associated with above
adjustments (3,679) (393) (5,323) (1,342)
-------- -------- -------- --------
Non-GAAP net income $ 13,503 $ 7,254 $ 42,525 $ 27,806
======== ======== ======== ========
Denominator:
Reconciliation between GAAP and
non-GAAP weighted average shares
used in computing diluted earnings
per share:
Weighted average number of
shares used in computing
diluted earnings per share 71,935 33,380 56,824 32,652
Pro forma adjustments to reflect
assumed weighted average effect
of conversion of preferred
stock (a) - 27,000 10,356 27,000
-------- -------- -------- --------
Non-GAAP weighted average shares
used in computing non-GAAP
diluted earnings per share (b) 71,935 60,380 67,180 59,652
======== ======== ======== ========
Diluted earnings per share $ 0.09 $ 0.09 $ 0.52 $ 0.35
======== ======== ======== ========
Non-GAAP diluted earnings per
share $ 0.19 $ 0.12 $ 0.63 $ 0.47
======== ======== ======== ========
(a) Represents common shares from the conversion of convertible
preferred shares as if the shares were converted as of the beginning of
the indicated period.
(b) If the company assumed the common shares issued in the IPO were issued
as of the beginning of the comparable periods, orJanuary 1, 2008 ,
then the weighted average shares used in computing non-GAAP diluted
earnings per share and the non-GAAP diluted earnings per share would
have been 71,935 shares and$0.19 per share, respectively, and 70,104
shares and$0.10 per share, respectively, for the three months ended
December 31, 2009 and 2008 and 70,924 shares and$0.60 per share,
respectively, and 69,376 shares and$0.40 per share, respectively,
for the year endedDecember 31, 2009 and 2008.
SolarWinds, Inc.
Reconciliation of Net Income to Adjusted EBITDA
(In thousands)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------- -------------------
2009 2008 2009 2008
-------- --------- --------- ---------
Reconciliation of Net Income to
Adjusted EBITDA:
Net income $ 6,548 $ 5,640 $ 29,509 $ 22,305
Interest expense, net 552 1,976 3,986 8,011
Income tax expense
(benefit) (19) 2,761 10,396 10,717
Depreciation and
amortization 539 374 2,166 1,436
Lawsuit settlement and
related legal fees 7,480 306 8,551 593
Stock-based compensation
expense 2,263 1,617 7,891 5,920
-------- --------- --------- ---------
Adjusted EBITDA $ 17,363 $ 12,674 $ 62,499 $ 48,982
======== ========= ========= =========
SolarWinds, Inc.
Reconciliation of Net Cash Provided by Operating Activities to
Adjusted Cash Flow
(In thousands)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------- -------------------
2009 2008 2009 2008
-------- --------- --------- ---------
Reconciliation of Net Cash Provided
by Operating Activities to
Adjusted Cash Flow:
Net cash provided by
operating activities $ 13,204 $ 7,727 $ 49,225 $ 35,217
Cash paid for interest 574 1,804 4,976 8,619
Cash (received) paid for
income taxes (238) 4,090 5,665 12,879
Lawsuit settlement and
related legal fees 7,480 306 8,551 593
-------- --------- --------- ---------
Adjusted Cash Flow $ 21,020 $ 13,927 $ 68,417 $ 57,308
======== ========= ========= =========
SolarWinds, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Cash flows from operating
activities
Net income $ 6,548 $ 5,640 $ 29,509 $ 22,305
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization 539 374 2,166 1,436
Provision for doubtful
accounts 43 190 175 505
Stock-based compensation
expense 2,263 1,617 7,891 5,920
Expenses paid by
stockholder 2,100 - 2,100 -
Deferred taxes (100) (127) (281) (1,005)
Excess tax benefit from
stock-based compensation (6,522) 2 (8,734) (83)
Other non-cash expenses 19 154 915 663
Changes in operating assets
and liabilities, net of
assets acquired and
liabilities assumed in
business combinations:
Accounts receivable 5,125 497 (2,099) (3,553)
Income taxes receivable (6) (693) 613 (693)
Prepaid income taxes (4,675) - (4,675) -
Prepaid & other current
assets (30) (349) (673) (846)
Accounts payable 1,091 (311) 1,791 (32)
Accrued liabilities (291) (1,168) 1,581 956
Accrued interest payable (35) 208 (1,472) (452)
Income taxes payable 5,087 (446) 9,078 (397)
Deferred revenue and other
liabilities 2,048 2,139 11,340 10,493
--------- --------- --------- ---------
Net cash provided by
operating activities 13,204 7,727 49,225 35,217
Cash flows from investing
activities
Purchases of property and
equipment (923) (371) (2,729) (3,395)
Purchases of intangible
assets (96) (58) (401) (349)
Decrease in restricted cash 1,000 1,000
Acquisition of businesses,
net of cash acquired - (6,707) (46) (8,281)
--------- --------- --------- ---------
Net cash used in
investing activities (1,019) (6,136) (3,176) (11,025)
Cash flows from financing
activities
Repayment of long-term debt - - (56,986) (1,417)
Exercise of stock options 5,833 57 8,518 227
Net cash proceeds from
initial public offering - - 104,625 -
Interest on options exercised
with note - - - 15
Excess tax benefit from
stock-based compensation 6,522 (2) 8,734 83
Repayments of capital lease
obligations (7) (7) (26) (27)
Payments for offering costs (249) (160) (1,745) (2,092)
Earnout dividend paid (20,000) - (20,000) -
Proceeds from note receivable
from stockholder - - - 1,738
Proceeds from issuance of
stock - - - 13,640
Purchase of stock - - - (13,640)
--------- --------- --------- ---------
Net cash provided by
(used in) financing
activities (7,901) (112) 43,120 (1,473)
Effect of exchange rate changes
on cash and cash equivalents (301) (720) 53 (1,456)
--------- --------- --------- ---------
Net increase in cash and cash
equivalents 3,983 759 89,222 21,263
Cash and cash equivalents
Beginning of period 125,805 39,807 40,566 19,303
--------- --------- --------- ---------
End of period $ 129,788 $ 40,566 $ 129,788 $ 40,566
========= ========= ========= =========
Supplemental disclosure of cash
flow information
Cash paid for interest $ 574 $ 1,804 $ 4,976 $ 8,619
========= ========= ========= =========
Cash (received) paid for
income taxes $ (238) $ 4,090 $ 5,665 $ 12,879
========= ========= ========= =========
Noncash investing and financing
transactions
Capital lease termination and
related asset write-off $ - $ - $ - $ 412
========= ========= ========= =========
Debt issuance costs
write-off $ - $ - $ 428 $ -
========= ========= ========= =========
CONTACTS:
Investors:Jason Ream
Phone: 512.682.9680
Email Contact
Media:Tiffany Nels
Phone: 512.682.9545
Email Contact
Events
-
February142012SolarWinds, Inc. Presents at Goldman Sachs Technology and Internet Conference 2012, Feb-14-2012 11:40 AM
-
February282012SolarWinds, Inc. Presents at Morgan Stanley 2012 Technology, Media & Telecom Conference, Feb-28-2012
-
May152012SolarWinds, Inc. Presents at JPMorgan's 40th Annual Global Technology, Media and Telecom Conference, May-15-2012
Members who own this company also own
Current price per share
Today's gain: $3.06 (9.20%)
