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Vocera Announces Third Quarter Revenue of $33.8 million and Raises FY'16 Revenue GuidanceSAN JOSE, Calif., Oct. 27, 2016 (GLOBE NEWSWIRE) -- Vocera Communications, Inc. (NYSE:VCRA), the leading healthcare communications company, today reported total revenue of $33.8 million, an increase of 28% compared to revenue of $26.5 million in the third quarter of 2015. “The third quarter of 2016 was an outstanding quarter for our business. The market demand for our products is expanding, as both new and existing customers seek solutions to address communication and collaboration challenges and improve patient safety and staff experience. Our success in the market is confirmation that the Vocera software platform is resonating with customers,” said Brent Lang, president and CEO of Vocera. “We are executing well as a company, and our sales, customer deployments, and product development efforts are on track for continued success.” Third quarter of 2016 financial highlights include:
Third Quarter 2016 Results
GAAP gross margin for the third quarter of 2016 was 63.6%, compared to 61.4% in the third quarter of 2015.
GAAP net loss for the third quarter of 2016 was $(1.2) million, or $(0.04) per share, compared to $(4.5) million, or $(0.17) per share in the third quarter of 2015. Both Adjusted EBITDA and non-GAAP net income were positive in the third quarter of 2016.
Full Year and Fourth Quarter 2016 Guidance The Company is raising full-year 2016 revenue guidance to between $126 million and $128 million and a GAAP loss per share between $(0.58) and $(0.51). The Company also raised full-year 2016 non-GAAP net income per share guidance to be between $0.01 and $0.07 and non-GAAP Adjusted EBITDA to be between $2.5 and $4.0 million.
Certain amounts in our release may not re-compute due to rounding. A reconciliation of non-GAAP to GAAP financial measures, and fourth quarter and full-year guidance, are included in the financial schedules, linked below. Link to third-quarter financial statements, guidance and reconciliation to GAAP: The restricted stock units described above to Extension Healthcare employees will be made from an inducement plan for the acquisition adopted by the Company’s Board of Directors without shareholder approval pursuant to the inducement exemption provided under the NYSE listing rules. Conference Call Information Investors may access a free, live webcast of the call through the Investors section of the Company’s website at investors.vocera.com. The call also can be accessed by dialing 844-464-3152, or 508-637-5574 for international callers, and using the access code 81440273. A webcast replay of the call will be archived on the Vocera website. Forward-Looking Statements Use of Non-GAAP Financial Information Our non-GAAP gross margins, non-GAAP net income/(loss), non-GAAP earnings/(loss) per diluted share, non-GAAP operating expense, and Adjusted EBITDA are exclusive of certain items to facilitate management's review of the comparability of our core operating results on a period to period basis because such items are not related to our ongoing core operating results as viewed by management. We define our "core operating results" as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items: a) Stock-based compensation expense impact. We recognize equity plan-related compensation expenses, which represent the fair value of all share-based payments to employees, including grants of employee stock options and restricted stock units as non-GAAP adjustments in each period. b) Amortization of acquired intangibles. We acquired certain companies in 2010 and 2014 and we have just announced an acquisition in 2016, and booked, or expect to book intangible assets related to these acquisitions. The amortization of these acquired intangible assets is excluded from non-GAAP net income because it is not related to ongoing controllable management decisions and because it is non-cash in nature. c) Securities litigation. In August 2013, Vocera and other related parties were named as defendants in two purported securities class actions, alleging claims for allegedly misleading statements regarding our business and financial results. An agreement in principle to settle these matters has been agreed to by Vocera and lead plaintiff counsel in the third quarter of 2015 and the settlement, which called for payment of $9 million, was funded entirely and directly by our insurance carriers and paid during the three months ended September 30, 2016. Our projections of net income/(loss), and non-GAAP earnings/(loss) per diluted share for the full year and fourth quarter of 2016 do not give effect to any such future legal expenses because we do not regard them as reflective of the costs we incur to operate our business. For the same reason, our non-GAAP results exclude these securities litigation expenses. d) Acquisition related expenses. In addition to the amortization of acquired intangibles mentioned above, we also adjust for certain acquisition-related expenses that we may incur including (i) professional service fees and (ii) transition costs. Professional service fees include third party costs related to the acquisition, such as due diligence costs, accounting fees, legal fees, valuation services and commissions, if any. Transition costs include retention payments, transitional employee costs and earn-out payments treated as compensation expense. We consider such costs and adjustments as highly variable in amount and frequency, being significantly impacted by the timing and size of any acquisitions. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management can better focus on the organic continuing operations of our baseline and acquired businesses. e) Restructuring costs. We exclude restructuring costs from non-GAAP measures because we do not regard these limited-term or one-time costs as reflective of normal costs we incur to operate our business. These are defined in U.S. GAAP to include one-time employee termination benefits, contract termination costs, and other associated costs, with respect to exit or disposal activities. Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Vocera's control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock option grants. We believe that the presentation of these non-GAAP financial measures is warranted for several reasons: 1) Such non-GAAP financial measures provide an additional analytical tool for understanding our financial performance by excluding the impact of items which may obscure trends in the core operating results of the business; 2) These non-GAAP financial measures facilitate comparisons to the operating results of other companies commonly compared to us, which use similar financial measures to supplement their GAAP results, thus enhancing the perspective of investors who wish to utilize such comparisons in their analysis of our performance; and 3) These non-GAAP financial measures are employed by our management in their own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting. Set forth below are additional reasons why share-based compensation expense is excluded from our non-GAAP financial measures: i) While share-based compensation constitutes one of our ongoing and recurring expenses, it is not an expense that requires cash settlement by us. We therefore exclude these charges for purposes of evaluating core operating results. Thus, our non-GAAP measurements are presented exclusive of stock-based compensation expense to assist management and investors in evaluating our core operating results. ii) We present share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation are dependent upon the trading price of our common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties, the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results. As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for our GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:
Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between our non-GAAP and GAAP financial results is set forth in the financial tables referred to above, and linked to, this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results for the respective periods. About Vocera: The Vocera logo is a trademark of Vocera Communications, Inc. Vocera® is a trademark of Vocera Communications, Inc. registered in the United States and other jurisdictions. All other trademarks appearing in this release are the property of their respective owners. Contacts: Investors: Sue Dooley Vocera Communications, Inc. 408.882.5971 [email protected] Media: Tara Stultz Amendola Communications 440.225.9595 [email protected] |