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SolarWinds Posts 2nd Quarter 2014 Results [Professional Services Close - Up](Professional Services Close - Up Via Acquire Media NewsEdge) SolarWinds reported results for its second quarter ended June 30. According to a release from the Company, it reported total revenue for the second quarter of 2014 of $101.5 million, a 31 percent increase over total revenue for the second quarter of 2013. Record total recurring revenue, comprised of subscription revenue of $5.8 million and maintenance revenue of $58.0 million, reached $63.9 million, increasing by 38 percent over the second quarter of 2013, representing 63 percent of total revenue. License revenue was $37.6 million for the second quarter of 2014, representing a 21 percent increase over license revenue for the second quarter of 2013. On a GAAP basis, diluted earnings per share were $0.18 for the second quarter of 2014 compared to $0.30 for the second quarter of 2013. Non-GAAP diluted earnings per share were $0.41 for the second quarter of 2014, compared to $0.40 for the second quarter of 2013. Net cash provided by operating activities was $51.0 million for the second quarter of 2014 compared to $40.7 million for the second quarter of 2013, representing a year-over-year increase of 25 percent. "I am pleased to report that we delivered strong results in the second quarter. Total revenue for the second quarter exceeded $100 million for the first time in SolarWinds' history and we believe the progress we have made across many facets of our business has led to the improvement in the level and consistency of growth we achieved in the first half of the year," said Kevin Thompson, SolarWinds' President and Chief Executive Officer. "We are focused on the opportunity to drive improving growth across our portfolio of network and systems management products. We are excited about the emerging opportunity to deliver SolarWinds' value proposition of powerful, easy-to-use, and affordable products to IT professionals in need of solutions to manage the performance of Cloud-based applications and their underlying, supporting infrastructure. Most importantly, we believe our ability to tie the on-premise world together with the nascent world of Cloud-based IT management for our users puts us in a good position to drive solid, long-term growth," added Thompson. Recent SolarWinds business highlights include: -SolarWinds continued to build toward its holistic, application- centric vision of IT management, by continuing to focus on tighter technology integration of the company's products such as SolarWinds Server & Application Monitor and Virtualization Manager. As application performance becomes increasingly critical to business productivity, SolarWinds believes the new mantra for IT is moving from ensuring the basic availability of IT infrastructure to delivering critical application capabilities to end users. Delivering visibility into the performance of the entire application stack, regardless of where that application lives -- on-premise or in the Cloud -- will continue to be a priority for SolarWinds while still offering IT professionals the ability to solve their individual pain points with only the products they need, when they need them. -In June, SolarWinds acquired Pingdom, adding website and web application performance monitoring to the list of problems the company can solve for IT professionals. Given the ever-growing importance of websites to businesses of all sizes around the world, SolarWinds believes the acquisition represents an important step towards its vision for the future of IT management while also aligning well with the company's high volume, low touch go-to- market model. Given the timing of the acquisition late during the second quarter, Pingdom contributed only approximately $100,000 in subscription revenue during the second quarter. -Once again, SolarWinds was recognized by users and influencers in the IT management market through a number of honors for its product portfolio. These awards reflect the company's vision and focus on delivering exceptional products across the application stack. This quarter's awards included recognition as the Market Leader and overall winner for Ethernet Network Monitoring in the IT Brand Pulse Awards. SolarWinds Network Performance Monitor also won Networking Solution of the Year in the IT Europa European IT & Software Excellence Awards, the only pan-European awards that recognizes real-world solutions. Within systems management, SolarWinds Storage Manager was voted most preferred Storage Virtualization Solution by VirtualizationAdmin.com in their Readers' Choice Awards while SolarWinds Server & Application Monitor was named a finalist in the Windows IT Pro Best of TechEd 2014 Awards for Systems Management and Operations. Within security management, SolarWinds Log & Event Manager received a five-star rating from SC Magazine. Lastly, SolarWinds Database Performance Analyzer was included in Database Trends and Application Magazine's second annual DBTA 100 list for companies that matter most in data. "We believe that this third consecutive quarter of better-than- expected results is evidence that the accelerated level of investment we have made in our business since the third quarter of last year has contributed to the underlying strength of the business," said Jason Ream, SolarWinds' Executive Vice President and Chief Financial Officer. "As we enter the second half of the year, we plan to continue to thoughtfully fund initiatives to improve our rate of growth while also delivering best-in-class profitability for our shareholders," added Ream. SolarWinds provides IT management software to customers worldwide. More information and complete details: www.solarwinds.com ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |