| [February 26, 2015] |
 |
Mavenir Systems Reports 2014 Fourth Quarter and Full Year Financial Results
Mavenir Systems (NYSE: MVNR) today reported financial results for the
fourth quarter and full year of 2014 and provided its outlook for the
first quarter and full year of 2015.
Fourth Quarter Financial Highlights
-
Total revenue for the fourth quarter of 2014 was $33.7 million, an
increase of 24% year-over-year and a decrease of 1%
quarter-over-quarter.
-
GAAP operating loss for the fourth quarter of 2014 was $8.8 million,
compared with $1.7 million in the fourth quarter of 2013 and $3.8
million in the third quarter of 2014.
-
Non-GAAP operating loss(a) was $5.0 million for the fourth
quarter of 2014, compared to $0.1 million for the fourth quarter of
2013 and $1.1 million for the third quarter of 2014.
-
GAAP net loss for the fourth quarter of 2014 was $12.3 million,
compared to $2.8 million in the fourth quarter of 2013 and $5.8
million for the third quarter of 2014.
(a) Non-GAAP operating loss/income excludes stock-based
compensation, foreign exchange gains or losses, depreciation and
amortization and acquisition related expenses.
GAAP gross profit margin was 55% for the fourth quarter of 2014,
compared to 58% in fourth quarter of 2013. Non-GAAP gross profit margin
was 56% for the fourth quarter of 2014, below the guidance range
provided in our third quarter earnings release, compared to 59% in the
fourth quarter of 2013 and 54% in the third quarter of 2014.
GAAP net loss per share was $0.43 for the fourth quarter of 2014
compared with $0.22 for the fourth quarter of 2013 and $0.21 for the
third quarter of 2014. As outlined in the accompanying table entitled
"Non-GAAP Net Loss Per Share" included in this press release, the
non-GAAP net loss per share was $0.21 for the fourth quarter of 2014
compared to $0.08 for the fourth quarter of 2013 and $0.03 for the third
quarter of 2014.
Full Year Financial Highlights
-
Total revenue for the full year 2014 was $129.8 million, an increase
of 28% year-over-year.
-
GAAP operating loss for the full year 2014 was $17.1 million, compared
with 7.7 million in 2013.
-
Non-GAAP operating loss(a) was $6.3 million for the full
year 2014, compared to $2.1 million in 2013.
-
GAAP net loss for the full year 2014 was $26.0 million, compared to
$15.3 million in 2013.
(a) Non-GAAP operating loss/income excludes stock-based
compensation, foreign exchange gains or losses, depreciation and
amortization and acquisition related expenses.
GAAP gross profit margin was 55% in 2014, compared to 55% in 2013.
Non-GAAP gross profit margin was 56% in 2014, below the guidance range
provided in our third quarter earnings release, consistent with non-GAAP
gross profit margin in 2013.
GAAP net loss per share was $1.00 for full year 2014 compared with $3.57
in 2013. As outlined in the accompanying table entitled "Non-GAAP Net
Loss Per Share" included in this press release, the non-GAAP net loss
per share was $0.34 for the full year 2014 compared to $0.42 in 2013.
"Mavenir delivered another strong year with solid financial results,
resulting from the rapid adoption of 4G LTE and the launches of services
such as VoWi-Fi and VoLTE in 2014," said Pardeep Kohli, president and
chief executive officer, Mavenir Systems. "We are well positioned to
capitalize on 4G LTE adoption and NFV/SDN, two trends that will continue
to be some of the key growth drivers for our business in 2015. In
addition, Mavenir continues to build our capabilities in next-generation
solutions to deliver growth and enhanced shareholder value."
Mavenir 2014 Business and Financial Highlights
-
Strong quarterly revenue of $33.7 million, and annual revenue of
$129.8 million, respectively;
-
Our 2014 revenue in the Americas region grew 49% year over year, the
Asia-Pacific region grew 13% year-over-year, and the Europe, Middle
East and Africa region grew 8% year-over-year;
-
We grew our customer base for next generation products, including
VoWi-Fi/VoLTE, RCS and Core, to 17, 17 and 23 respectively;
-
Grew our established footprint to include 15 of the top 20 mobile
carriers worldwide;
-
Added 8 new customers for our 4G next-generation solutions in the
quarter;
-
Experienced positive momentum in strategic growth initiatives, Evolved
Packet Core (EPC) and Session Border Controller (SBC), bringing the
total number of 2014 customers for each solution to three and eleven,
respectively;
-
We extended our software-based core network portfolio with the
addition of our IMS PBX, as well as the Security Gateway via the Stoke
acquisition, and the Diameter Signaling Controller, via our recently
announced acquisition of Ulticom; and
-
On November 21, 2014, Mavenir completed its acquisition of Stoke.
Together with Mavenir's Session Border Controller (SBC) and evolved
Packet Data Gateway (ePDG), Stoke's LTE Security Gateway (SEG) enables
Mavenir to deliver a complete, secure, end to end solution to
customers globally. The acquisition, and resulting combination of
technology, allows Mavenir to expand its global reach, adding strong
presence in markets like Japan and South Korea.
Additionally, on January 16, 2015, Mavenir completed its acquisition of
Ulticom, Inc. Through this acquisition, Mavenir enhances its portfolio
of next generation software products and solutions to include a
scalable, virtualized Diameter Signaling Controller (DSC), an
increasingly critical network element which efficiently scales mobile
operator networks and securely provides interoperable 4G LTE and Voice
over LTE (VoLTE) services. Ulticom is a leading provider of telecom
signaling solutions enabling the global transformation to 4G LTE, with
key Diameter solutions deployed in ten tier one carrier networks
globally, two of which are among the world's top ten Mobile Network
Operators (MNOs). Mavenir has previously partnered with Ulticom to
resell its Diameter signaling solutions to five tier one mobile operator
customers globally.
A description of the non-GAAP calculations and reconciliation to
comparable GAAP measures is provided in the accompanying table entitled,
"Reconciliation of GAAP Financial Measures to Non-GAAP Financial
Measures."
Guidance
Mavenir is providing the following first quarter and full year 2015
guidance with respect to anticipated total revenue, non-GAAP gross
margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss
per share.
First quarter of 2015
-
Revenue to range from $39.0 million to $41.0 million.
-
Non-GAAP gross margin to range from 60.0% to 62.0%.
-
Non-GAAP operating loss to range from $(4.0) million to $(2.3) million.
-
Non-GAAP basic earnings per share to range from $(0.17) to $(0.12)
(based on a forecasted, weighted-average number of shares outstanding
of 29,028,013).
Full Year of 2015
-
Revenue to range from $185.0 million to $195.0 million.
-
Non-GAAP gross margin to range from 62.0% to 65.0%.
-
Non-GAAP operating income to range from $13.0 million to $16.0 million.
-
Non-GAAP basic earnings per share to range from $0.28 to $0.36 (based
on a forecasted, weighted-average number of shares outstanding of
29,333,502).
Conference Call
The company will hold a conference call after market close on Thursday,
February 26, 2015 at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) to
discuss its 2014 fourth quarter and full year financial results.
The conference telephone number for the earnings call is (855) 302-8830
or (330) 871-6073 (international) with ID# 64237732.
This call will be webcast and can be accessed via Mavenir Systems'
Investor Relations website at http://investor.mavenir.com.
A replay will be available following the call on Mavenir Systems'
Investor Relations website and for one week at the following numbers:
(855) 859-2056 (domestic) or (404) 537-3406 (international) with ID#
64237732.
Non-GAAP Financial Measures & Definitions
In addition to disclosing financial results that are determined in
accordance with U.S. GAAP, Mavenir discloses non-GAAP gross profit
margin, which is a non-GAAP financial measure, as a supplemental
measure, and other measures. These measures are used by management to
evaluate our business and management believes these measures may help
investors evaluate the Company's fundamental operational performance.
Management believes these non-GAAP measures facilitate operating
performance comparisons from period to period by excluding potential
differences caused by variations in capital structures, tax position,
depreciation, amortization, stock-based compensation expense and certain
other expenses. These measures are not measures of our financial
performance under U.S. GAAP and should not be considered in isolation or
a substitute for net loss, operating loss or other performance measures
as determined in accordance with U.S. GAAP. These measures should be
read only in conjunction with our consolidated financial statements
prepared in accordance with U.S. GAAP when they are available.
In determining our guidance for the first quarter and full year of 2015
set forth in "Guidance," we have chosen to use non-GAAP measures for all
metrics other than revenue. The non-GAAP metrics exclude the effects of
depreciation, amortization, foreign exchange gains or losses,
stock-based compensation, interest and taxes, as adjusted for uncertain
tax positions component, and non-recurring acquisition and restructuring
costs. The effects of these items are difficult to forecast in advance
as they relate to future foreign exchange rates and future stock prices,
which are subject to external factors that are difficult to predict. As
a result, Mavenir does not give guidance on GAAP metrics other than
revenue.
Forward-Looking Statements
Statements in this press release that are not historical facts
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
include, but are not limited to, the statements under "Guidance" above,
statements regarding Mavenir's expectations with respect to revenue,
non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss and
non-GAAP net loss per share, as well as statements about expanding its
global reach, the adoption of 4G LTE and NFV/SDN and Mavenir's views
about continuing to build next-generation solutions. Forward-looking
statements can generally be identified by words such as "anticipates,"
"may," "can," "believes," "expects," "projects," "intends," "likely,"
"target," "will," "to be" and other expressions that are predictions or
indicate future events, trends or prospects, although not all
forward-looking statements contain these identifying words. These
forward-looking statements represent management's current expectations
and involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of
Mavenir to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Accordingly, investors should not place undue reliance on these
forward-looking statements.
Factors that could cause actual results to differ materially from those
indicated by the forward-looking statements include risks regarding the
timing of the adoption of 4G by mobile service providers around the
world; mobile service providers' investment in next-generation
communications technology; our ability to sell solutions to mobile
service providers, particularly those serving large numbers of
customers; the length and variability of the sales cycles for our
solutions; actions taken by our competitors; our ability to negotiate
acceptable financial terms with our mobile service provider customers;
the performance of our solutions when implemented in mobile service
provider networks; management's ability to accurately forecast Mavenir's
financial results; the timing of revenues and the application of complex
revenue recognition rules to such revenues; our ability to integrate our
recent acquisitions' businesses into ours; the results of our
quarter-end closing procedures and year-end audit; and other factors
described in our filings with the Securities and Exchange Commission,
including under the caption "Risk Factors" and elsewhere in our annual
reports on Form 10-K and quarterly reports on Form 10-Q. There is no
assurance that Mavenir's expectations will be realized. If one or more
of these risks or uncertainties materialize, or if Mavenir's underlying
assumptions prove incorrect, actual results may vary materially from
those expected, estimated or projected. The statements in this press
release are made as of the date of this press release, even though this
press release is made available on Mavenir's website or otherwise.
Mavenir does not assume any obligation to update the forward-looking
statements provided herein to reflect events that occur or circumstances
that exist after the date on which the forward-looking statements were
made, except as required by law.
About Mavenir:
Mavenir Systems (NYSE: MVNR) provides software-based networking
solutions that enable mobile service providers to deliver next
generation services over 4G LTE networks. Mavenir™ has a fully
virtualized end to end portfolio of Voice/Video, Messaging and Mobile
Core products that include IP Multimedia Subsystem (IMS), Evolved Packet
Core (EPC) and Session Border Controller (SBC). Mavenir's solutions,
based on the award-winning mOne® software platform, leverage NFV and SDN
technologies for deployments on cloud-based infrastructure.
© 2015 Mavenir Systems, Inc. All rights reserved.
Mavenir Systems®, mOne®, AirMessenger®, Mavenir™, mStore™, mCloud™, and
Transforming Mobile Networks™ are trademarks of Mavenir Systems, Inc.
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Mavenir Systems, Inc. and Subsidiaries
|
|
Consolidated Statements of Operations and Comprehensive Loss
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Revenues
|
|
(unaudited)
|
|
|
|
|
|
Software products
|
|
$
|
26,713
|
|
|
$
|
21,290
|
|
|
$
|
104,216
|
|
|
$
|
79,342
|
|
|
Maintenance
|
|
|
7,014
|
|
|
|
5,857
|
|
|
|
25,579
|
|
|
|
21,966
|
|
|
|
|
|
33,727
|
|
|
|
27,147
|
|
|
|
129,795
|
|
|
|
101,308
|
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
|
Software products
|
|
|
11,844
|
|
|
|
7,751
|
|
|
|
46,102
|
|
|
|
35,971
|
|
|
Maintenance
|
|
|
3,383
|
|
|
|
3,659
|
|
|
|
12,747
|
|
|
|
9,202
|
|
|
|
|
|
15,227
|
|
|
|
11,410
|
|
|
|
58,849
|
|
|
|
45,173
|
|
|
Gross profit
|
|
|
18,500
|
|
|
|
15,737
|
|
|
|
70,946
|
|
|
|
56,135
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
9,178
|
|
|
|
5,841
|
|
|
|
30,459
|
|
|
|
22,775
|
|
|
Sales and marketing
|
|
|
10,985
|
|
|
|
6,154
|
|
|
|
34,208
|
|
|
|
20,485
|
|
|
General and administrative
|
|
|
7,120
|
|
|
|
5,477
|
|
|
|
23,351
|
|
|
|
20,583
|
|
|
Total operating expenses
|
|
|
27,283
|
|
|
|
17,472
|
|
|
|
88,018
|
|
|
|
63,843
|
|
|
Operating loss
|
|
|
(8,783
|
)
|
|
|
(1,735
|
)
|
|
|
(17,072
|
)
|
|
|
(7,708
|
)
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
|
Interest and other income
|
|
|
(15
|
)
|
|
|
(6
|
)
|
|
|
(102
|
)
|
|
|
(18
|
)
|
|
Interest and other expense
|
|
|
430
|
|
|
|
1,016
|
|
|
|
2,068
|
|
|
|
3,203
|
|
|
Loss on early extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
1,783
|
|
|
|
-
|
|
|
Foreign exchange loss (gain)
|
|
|
2,424
|
|
|
|
(427
|
)
|
|
|
4,699
|
|
|
|
1,901
|
|
|
Total other expense (income), net
|
|
|
2,839
|
|
|
|
583
|
|
|
|
8,448
|
|
|
|
5,086
|
|
|
Loss before income tax
|
|
|
(11,622
|
)
|
|
|
(2,318
|
)
|
|
|
(25,520
|
)
|
|
|
(12,794
|
)
|
|
Income tax expense
|
|
|
673
|
|
|
|
524
|
|
|
|
516
|
|
|
|
2,496
|
|
|
Net loss
|
|
$
|
(12,295
|
)
|
|
$
|
(2,842
|
)
|
|
$
|
(26,036
|
)
|
|
$
|
(15,290
|
)
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
|
518
|
|
|
|
(519
|
)
|
|
|
1,258
|
|
|
|
(569
|
)
|
|
Total comprehensive loss
|
|
$
|
(11,777
|
)
|
|
$
|
(3,361
|
)
|
|
$
|
(24,778
|
)
|
|
$
|
(15,859
|
)
|
|
Net loss per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.43
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(1.00
|
)
|
|
$
|
(3.57
|
)
|
|
Diluted
|
|
$
|
(0.43
|
)
|
|
$
|
(0.22
|
)
|
|
$
|
(1.00
|
)
|
|
$
|
(3.57
|
)
|
|
Weighted average common shares outstanding:
|
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|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
28,884
|
|
|
|
13,084
|
|
|
|
25,988
|
|
|
|
4,278
|
|
|
|
|
|
|
Mavenir Systems, Inc. and Subsidiaries
|
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Consolidated Balance Sheets
|
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(in thousands, except share and per share amounts)
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|
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|
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December 31,
|
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|
|
|
2014
|
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|
|
2013
|
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
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Cash and cash equivalents
|
|
$
|
54,699
|
|
|
$
|
38,930
|
|
|
Accounts receivable, net of allowance of $269 and $587 at December
31, 2014, and December 31, 2013, respectively
|
|
|
38,525
|
|
|
|
23,641
|
|
|
Unbilled revenue
|
|
|
13,714
|
|
|
|
11,213
|
|
|
Inventories
|
|
|
3,853
|
|
|
|
7,109
|
|
|
Prepaid expenses and other current assets
|
|
|
2,434
|
|
|
|
3,614
|
|
|
Deferred contract costs
|
|
|
5,705
|
|
|
|
9,313
|
|
|
Total current assets
|
|
|
118,930
|
|
|
|
93,820
|
|
|
Non-current assets:
|
|
|
|
|
|
Property and equipment, net
|
|
|
6,598
|
|
|
|
5,054
|
|
|
Intangible assets, net
|
|
|
8,180
|
|
|
|
5,202
|
|
|
Deposits and other assets
|
|
|
1,977
|
|
|
|
1,657
|
|
|
Deferred tax assets
|
|
|
1,008
|
|
|
|
-
|
|
|
Goodwill
|
|
|
2,828
|
|
|
|
866
|
|
|
Total assets
|
|
$
|
139,521
|
|
|
$
|
106,599
|
|
|
Liabilities and shareholders' deficit:
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Trade accounts payable
|
|
$
|
7,573
|
|
|
$
|
7,152
|
|
|
Accrued liabilities
|
|
|
17,844
|
|
|
|
11,939
|
|
|
Deferred revenue
|
|
|
15,671
|
|
|
|
15,417
|
|
|
Income tax payable
|
|
|
-
|
|
|
|
765
|
|
|
Deferred income tax
|
|
|
5,044
|
|
|
|
-
|
|
|
Total current liabilities
|
|
|
46,132
|
|
|
|
35,273
|
|
|
Non-current liabilities:
|
|
|
|
|
|
Uncertain tax positions
|
|
|
3,051
|
|
|
|
3,153
|
|
|
Long-term deferred revenue and other liabilities
|
|
|
1,818
|
|
|
|
719
|
|
|
Long-term debt
|
|
|
21,797
|
|
|
|
23,423
|
|
|
Total liabilities
|
|
|
72,798
|
|
|
|
62,568
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Shareholders' equity (deficit):
|
|
|
|
|
|
Common stock, $0.001 par value. 300,000,000 shares authorized;
28,915,038 and 23,420,759 shares issued and outstanding at December
31, 2014, and December 31, 2013, respectively.
|
|
|
29
|
|
|
|
23
|
|
|
Additional paid-in capital
|
|
|
202,662
|
|
|
|
155,198
|
|
|
Accumulated deficit
|
|
|
(138,223
|
)
|
|
|
(112,187
|
)
|
|
Accumulated other comprehensive income
|
|
|
2,255
|
|
|
|
997
|
|
|
Total shareholders' equity
|
|
|
66,723
|
|
|
|
44,031
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
139,521
|
|
|
$
|
106,599
|
|
|
|
|
|
|
Mavenir Systems, Inc. and Subsidiaries
|
|
Consolidated Statements of Cash Flows
|
|
(in thousands)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Operating activities:
|
|
|
|
|
|
Net loss
|
|
$
|
(26,036
|
)
|
|
$
|
(15,290
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation of property and equipment
|
|
|
3,345
|
|
|
|
2,472
|
|
|
Amortization of intangible assets
|
|
|
2,079
|
|
|
|
1,534
|
|
|
Amortization of debt discount
|
|
|
122
|
|
|
|
357
|
|
|
Provision for bad debts and doubtful accounts
|
|
|
(281
|
)
|
|
|
537
|
|
|
Stock-based compensation expense
|
|
|
4,555
|
|
|
|
1,630
|
|
|
Unrealized foreign currency loss
|
|
|
3,754
|
|
|
|
74
|
|
|
Loss on early extinguishment of debt
|
|
|
1,783
|
|
|
|
-
|
|
|
Write-off of assets
|
|
|
61
|
|
|
|
2
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
|
(15,736
|
)
|
|
|
(8,565
|
)
|
|
Unbilled revenue
|
|
|
(3,143
|
)
|
|
|
(1,480
|
)
|
|
Deposits and other assets
|
|
|
(1,769
|
)
|
|
|
(377
|
)
|
|
Inventories
|
|
|
4,740
|
|
|
|
(4,854
|
)
|
|
Prepaid expenses
|
|
|
1,937
|
|
|
|
2,290
|
|
|
Deferred contract costs
|
|
|
3,279
|
|
|
|
(3,821
|
)
|
|
Deferred revenues
|
|
|
(757
|
)
|
|
|
3,151
|
|
|
Accounts payable and accrued liabilities
|
|
|
4,763
|
|
|
|
1,842
|
|
|
Net cash used in operating activities
|
|
|
(17,304
|
)
|
|
|
(20,498
|
)
|
|
Investing activities:
|
|
|
|
|
|
Acquisition of Stoke, net of cash acquired
|
|
|
(5,225
|
)
|
|
|
-
|
|
|
Purchases of property and equipment
|
|
|
(5,039
|
)
|
|
|
(2,798
|
)
|
|
Net cash used in investing activities
|
|
|
(10,264
|
)
|
|
|
(2,798
|
)
|
|
Financing activities:
|
|
|
|
|
|
Proceeds from initial public offering, net of offering costs
|
|
|
-
|
|
|
|
45,348
|
|
|
Proceeds from follow-on public offering, net of offering costs
|
|
|
41,686
|
|
|
|
-
|
|
|
Borrowing of long-term debt
|
|
|
26,900
|
|
|
|
27,000
|
|
|
Repayments of long-term debt
|
|
|
(15,000
|
)
|
|
|
(17,000
|
)
|
|
Borrowing from line of credit
|
|
|
-
|
|
|
|
-
|
|
|
Repayments of line of credit borrowing
|
|
|
(10,000
|
)
|
|
|
-
|
|
|
Exercise of options and warrants to purchase common stock
|
|
|
1,228
|
|
|
|
91
|
|
|
Net cash provided by financing activities
|
|
|
44,814
|
|
|
|
55,439
|
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
|
(1,477
|
)
|
|
|
(615
|
)
|
|
Net increase in cash and cash equivalents
|
|
|
15,769
|
|
|
|
31,528
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
38,930
|
|
|
|
7,402
|
|
|
Cash and cash equivalents at end of year
|
|
$
|
54,699
|
|
|
$
|
38,930
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
1,454
|
|
|
$
|
2,449
|
|
|
Income tax payments, net
|
|
$
|
1,000
|
|
|
$
|
346
|
|
|
Non-cash financing activities
|
|
|
|
|
|
Conversion of preferred stock into common stock
|
|
$
|
-
|
|
|
$
|
104,558
|
|
|
Unpaid offering costs in additional paid-in-capital
|
|
$
|
-
|
|
|
$
|
583
|
|
|
Issuance of warrants
|
|
$
|
-
|
|
|
$
|
1,634
|
|
|
Cashless exercise of warrants
|
|
$
|
1
|
|
|
$
|
7
|
|
|
|
|
|
|
|
|
Mavenir Systems, Inc. and Subsidiaries
|
|
Revenue Metrics
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Revenue by type:
|
|
|
|
|
|
|
|
|
|
Software products
|
|
$
|
26,713
|
|
$
|
21,290
|
|
$
|
104,216
|
|
$
|
79,342
|
|
Maintenance
|
|
|
7,014
|
|
|
5,857
|
|
|
25,579
|
|
|
21,966
|
|
Total revenues
|
|
$
|
33,727
|
|
$
|
27,147
|
|
$
|
129,795
|
|
$
|
101,308
|
|
Revenue by Geographic Area:
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
21,953
|
|
$
|
11,084
|
|
$
|
71,479
|
|
$
|
47,957
|
|
EMEA
|
|
|
6,733
|
|
|
13,386
|
|
|
40,772
|
|
|
37,887
|
|
APAC
|
|
|
5,041
|
|
|
2,677
|
|
|
17,544
|
|
|
15,464
|
|
Total revenues
|
|
$
|
33,727
|
|
$
|
27,147
|
|
$
|
129,795
|
|
$
|
101,308
|
|
Revenue by Product Group:
|
|
|
|
|
|
|
|
|
|
Voice and Video
|
|
$
|
22,356
|
|
$
|
8,459
|
|
$
|
90,177
|
|
$
|
31,206
|
|
Enhanced Messaging
|
|
|
11,371
|
|
|
18,688
|
|
|
39,618
|
|
|
70,102
|
|
Total revenues
|
|
$
|
33,727
|
|
$
|
27,147
|
|
$
|
129,795
|
|
$
|
101,308
|
|
|
|
|
|
|
|
Mavenir Systems, Inc. and Subsidiaries
|
|
Reconciliation of GAAP Financial Measures to Non-GAAP Financial
Measures
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Software Products
|
|
(unaudited)
|
|
|
|
|
|
Revenue
|
|
$
|
26,713
|
|
|
$
|
21,290
|
|
|
$
|
104,216
|
|
|
$
|
79,342
|
|
|
Cost of revenue
|
|
|
11,844
|
|
|
|
7,751
|
|
|
|
46,102
|
|
|
|
35,971
|
|
|
Amortization and depreciation
|
|
|
346
|
|
|
|
217
|
|
|
|
1,101
|
|
|
|
592
|
|
|
Stock-based compensation
|
|
|
151
|
|
|
|
56
|
|
|
|
582
|
|
|
|
187
|
|
|
Gross profit (GAAP)
|
|
|
14,869
|
|
|
|
13,539
|
|
|
|
58,114
|
|
|
|
43,371
|
|
|
Gross profit (Non-GAAP)
|
|
|
15,366
|
|
|
|
13,812
|
|
|
|
59,797
|
|
|
|
44,150
|
|
|
Maintenance
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
7,014
|
|
|
$
|
5,857
|
|
|
$
|
25,579
|
|
|
$
|
21,966
|
|
|
Cost of revenue
|
|
|
3,383
|
|
|
|
3,659
|
|
|
|
12,747
|
|
|
|
9,202
|
|
|
Gross profit (GAAP)
|
|
|
3,631
|
|
|
|
2,198
|
|
|
|
12,832
|
|
|
|
12,764
|
|
|
Gross profit (Non-GAAP)
|
|
|
3,631
|
|
|
|
2,198
|
|
|
|
12,832
|
|
|
|
12,764
|
|
|
Total Revenue
|
|
$
|
33,727
|
|
|
$
|
27,147
|
|
|
$
|
129,795
|
|
|
$
|
101,308
|
|
|
Total Gross Profit (GAAP)
|
|
$
|
18,500
|
|
|
$
|
15,737
|
|
|
$
|
70,946
|
|
|
$
|
56,135
|
|
|
Gross Profit Margin % (GAAP)
|
|
|
54.9
|
%
|
|
|
58.0
|
%
|
|
|
54.7
|
%
|
|
|
55.4
|
%
|
|
Gross Profit (Non-GAAP)
|
|
$
|
18,997
|
|
|
$
|
16,010
|
|
|
$
|
72,629
|
|
|
$
|
56,914
|
|
|
Gross Profit Margin % (Non-GAAP)
|
|
|
56.3
|
%
|
|
|
59.0
|
%
|
|
|
56.0
|
%
|
|
|
56.2
|
%
|
|
Operations Expenses
|
|
|
|
|
|
|
|
|
|
R&D (GAAP)
|
|
$
|
9,178
|
|
|
$
|
5,841
|
|
|
$
|
30,459
|
|
|
$
|
22,775
|
|
|
Amortization and depreciation
|
|
|
499
|
|
|
|
373
|
|
|
|
2,083
|
|
|
|
1,150
|
|
|
Stock-based compensation
|
|
|
251
|
|
|
|
112
|
|
|
|
787
|
|
|
|
321
|
|
|
R&D (Non-GAAP)
|
|
$
|
8,428
|
|
|
$
|
5,356
|
|
|
$
|
27,589
|
|
|
$
|
21,304
|
|
|
S&M (GAAP)
|
|
$
|
10,985
|
|
|
$
|
6,154
|
|
|
$
|
34,208
|
|
|
$
|
20,485
|
|
|
Amortization and depreciation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Stock-based compensation
|
|
|
340
|
|
|
|
82
|
|
|
|
1,032
|
|
|
|
482
|
|
|
S&M (Non-GAAP)
|
|
$
|
10,645
|
|
|
$
|
6,072
|
|
|
$
|
33,176
|
|
|
$
|
20,003
|
|
|
G&A (GAAP)
|
|
$
|
7,120
|
|
|
$
|
5,477
|
|
|
$
|
23,351
|
|
|
$
|
20,583
|
|
|
Amortization and depreciation
|
|
|
633
|
|
|
|
567
|
|
|
|
2,240
|
|
|
|
2,264
|
|
|
Stock-based compensation
|
|
|
742
|
|
|
|
219
|
|
|
|
2,154
|
|
|
|
640
|
|
|
Acquisition related transaction costs
|
|
|
728
|
|
|
|
-
|
|
|
|
728
|
|
|
|
-
|
|
|
Acquisition related restructuring charges
|
|
|
51
|
|
|
|
-
|
|
|
|
51
|
|
|
|
-
|
|
|
G&A (Non-GAAP)
|
|
$
|
4,966
|
|
|
$
|
4,691
|
|
|
$
|
18,178
|
|
|
$
|
17,679
|
|
|
Total Operating Expenses (GAAP)
|
|
$
|
27,283
|
|
|
$
|
17,472
|
|
|
$
|
88,018
|
|
|
$
|
63,843
|
|
|
Operating Expenses (Non-GAAP)
|
|
$
|
24,039
|
|
|
$
|
16,119
|
|
|
$
|
78,943
|
|
|
$
|
58,986
|
|
|
Operating Loss (GAAP)
|
|
$
|
(8,783
|
)
|
|
$
|
(1,735
|
)
|
|
$
|
(17,072
|
)
|
|
$
|
(7,708
|
)
|
|
Net interest
|
|
|
415
|
|
|
|
1,010
|
|
|
|
1,966
|
|
|
|
3,185
|
|
|
Loss on early extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
1,783
|
|
|
|
-
|
|
|
Foreign exchange loss (gain)
|
|
|
2,424
|
|
|
|
(427
|
)
|
|
|
4,699
|
|
|
|
1,901
|
|
|
Income taxes
|
|
|
673
|
|
|
|
524
|
|
|
|
516
|
|
|
|
2,496
|
|
|
Net Loss (GAAP)
|
|
$
|
(12,295
|
)
|
|
$
|
(2,842
|
)
|
|
$
|
(26,036
|
)
|
|
$
|
(15,290
|
)
|
|
Operating Income (Loss) (Non-GAAP)
|
|
$
|
(5,042
|
)
|
|
$
|
(109
|
)
|
|
$
|
(6,314
|
)
|
|
$
|
(2,072
|
)
|
|
Net interest
|
|
|
415
|
|
|
|
1,010
|
|
|
|
1,966
|
|
|
|
3,185
|
|
|
Income taxes
|
|
|
673
|
|
|
|
524
|
|
|
|
516
|
|
|
|
2,496
|
|
|
Adjusted for uncertain tax positions component
|
|
|
(42
|
)
|
|
|
-
|
|
|
|
142
|
|
|
|
-
|
|
|
Net Loss (Non-GAAP)
|
|
$
|
(6,088
|
)
|
|
$
|
(1,643
|
)
|
|
$
|
(8,938
|
)
|
|
$
|
(7,753
|
)
|
|
|
|
|
|
|
|
Mavenir Systems, Inc. and Subsidiaries
|
|
Non-GAAP Net Loss per Share
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
GAAP weighted average common shares outstanding
|
|
|
28,884
|
|
|
|
13,084
|
|
|
|
25,988
|
|
|
|
4,278
|
|
|
Conversion of preferred shares *
|
|
|
-
|
|
|
|
7,679
|
|
|
|
-
|
|
|
|
14,259
|
|
|
Adjusted weighted average common shares outstanding
|
|
|
28,884
|
|
|
|
20,763
|
|
|
|
25,988
|
|
|
|
18,537
|
|
|
Non-GAAP net loss
|
|
$
|
(6,088
|
)
|
|
$
|
(1,643
|
)
|
|
$
|
(8,938
|
)
|
|
$
|
(7,753
|
)
|
|
Non-GAAP net loss per share
|
|
$
|
(0.21
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
(0.34
|
)
|
|
$
|
(0.42
|
)
|
|
*
|
Assumes conversion of preferred shares at beginning of period
|
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