[February 21, 2017] |
|
Silver Spring Networks Reports Fourth Quarter and Full Year 2016 Financial Results
Silver Spring Networks, Inc. (NYSE: SSNI) today announced preliminary
financial results for its fourth quarter and full year ended December
31, 2016.
Fourth Quarter Financial Highlights (all comparisons made are
against the prior year period, unless otherwise stated):
GAAP results:
-
Revenue was $66.3 million, versus $199.2 million.
-
Cost of revenue was $37.8 million, or 57.1% of revenue, versus $97.9
million or 49.1%.
-
Operating expense was $41.9 million, versus $35.6 million.
-
Tax expense was $0.2 million. Other income (expense) was ($0.2)
million.
-
Basic share count was 52.0 million. In the case of a net income
position, fully-diluted share count would have been 54.4 million.
-
Quarter-ending cash, cash equivalents, and short-term investments was
$118.3 million.
Non-GAAP metrics1:
-
Billings were $77.7 million, up 4%.
-
Cost of billings was $39.0 million or 50.2% of billings, versus $39.6
million or 52.9%.
-
Non-GAAP operating expense was $35.3 million, versus $27.4 million.
"We enter 2017 in a strong position, with solid fourth quarter results
and several new international awards. In 2016, we achieved record
bookings, with major awards from Con Edison, Entergy and Pacific Power,
generated over $20.7 million in operating cash flow for the year, and
finished the year with more than 25.5 million cumulative network
endpoints delivered," said Mike Bell, President and Chief Executive
Officer. "We are focused on ramping production of our Gen5 platform for
our major upcoming deployments, driving international growth, and
expanding our platform to additional smart utility applications and new
vertical markets within the broader Internet of Important Things™
opportunity."
Business Highlights (through February 21, 2017, unless otherwise
stated):
-
Over 25.5 million cumulative network endpoints delivered from
inception through December 31, 2016, up 11% from a year ago.
-
Working with customers that represent over 26 million incremental
homes and businesses that are piloting or deploying our technology in
phases.
-
Total backlog of $1.165 billion as of December 31, 2016, up
over 50% from the end of last year.
-
We congratulate AEP Ohio, which recently received regulatory
approval for its smart grid program from the Public Utility Commission
of Ohio (PUCO), to deploy our multi-application IPv6 IoT network
canopy and advanced metering infrastructure to nearly 900,000 homes
and businesses in its Ohio service territory.
-
Selected by CESC Limited of India to deploy our
multi-application IPv6 IoT platform to connect approximately 237,000
homes and businesses in CESC's franchises in the cities of Kota and
Bharatpur. Silver Spring Networks will also deploy Operations
Optimizer™ to these cities through a SaaS model.
-
Selected by Dubai Electricity and Water Authority (DEWA) to
deploy our multi-application IoT network canopy across the Emirate of
Dubai to securely and reliably provide connectivity for various
services, such as energy and water.
-
Selected by Oklahoma Gas & Electric (OGE) to deploy our
IPv6 IoT platform and Streetlight.Vision control software to connect
and manage up to 250,000 LED street lights within its Oklahoma service
territory.
-
Expanded Starfish™ distribution channel through a reseller alliance
with Ameresco to assist cities and other public lighting operators
to deliver smart street lighting programs and other IoT applications
and services such as smart water, traffic signals and distributed
energy resources.
-
Extended smart city reach through a new go-to-market alliance with
Panasonic Corporation of North America to leverage our Starfish
Internet of Things (IoT) platform and Panasonic's CityNOW portfolio to
transform the street light into a multi-use host for multiple smart
and sustainable applications.
Full Year 2016 Results (all comparisons made are against the
prior year period, unless otherwise stated)
GAAP Results:
-
Revenue was $311.0 million, versus $489.6 million.
-
Cost of revenue was $172.8 million, or 55.6% of revenue, versus $263.8
million or 53.9%.
-
Operating expense was $158.1 million, versus $142.8 million.
-
Tax expense was $2.4 million. Other income (expense) was $0.7 million.
-
Basic share count was 51.4 million. In the case of a net income
position, fully-diluted share count would have been 53.7 million.
Non-GAAP Metrics:
-
Billings were $294.6 million, up 4%.
-
Cost of billings was $150.9 million or 51.2% of billings, versus
$159.3 million or 56.5%.
-
Non-GAAP operating expense was $130.2 million, versus $114.1 million.
Conference Call
Silver Spring Networks will host a conference call today at 2:00 pm PT
(5:00 pm ET) to review its results for the fourth quarter and full year
ended December 31, 2016 and its outlook for the future. During the
course of this call, Silver Spring Networks may also disclose material
developments affecting its business and/or financial performance.
Listeners may access the conference call live at 877-407-0832 (U.S.) or
201-689-8433 (International) or via webcast at http://ir.ssni.com.
A dial-in replay of the conference call will be available until April
11, 2017 and can be accessed at 877-660-6853 (domestic) or 201-612-7415
(international) passcode 13653868. An audio webcast replay of the
conference call will be available for one year at http://ir.ssni.com.
About Silver Spring Networks
Silver Spring Networks enables the Internet of Important Things™ by
reliably and securely connecting things that matter. Cities, utilities,
and companies on five continents use the company's cost-effective,
high-performance IoT network and data platform to operate more
efficiently, get greener, and enable innovative services that can
improve the lives of millions of people. With more than 25.5 million
devices delivered, Silver Spring Networks provides a proven
standards-based platform safeguarded with military grade security.
Silver Spring Networks' customers include Baltimore Gas & Electric,
CitiPower & Powercor, ComEd, Consolidated Edison, CPS Energy, Florida
Power & Light, Pacific Gas & Electric, Pepco Holdings, and Singapore
Power. Silver Spring Networks has also deployed networks in Smart Cities
including Copenhagen, Glasgow, Paris, Providence, and Stockholm. To
learn more, visit www.ssni.com.
Non-GAAP and Other Financial Metrics
Silver Spring Networks supplements the results of operations presented
in accordance with generally accepted accounting principles, or GAAP,
with certain non-GAAP metrics. Silver Spring Networks manages its
business, makes planning decisions, evaluates its performance and
allocates resources by assessing non-GAAP and other financial metrics
such as billings, cost of billings, non-GAAP operating expense, and
total backlog. Silver Spring Networks believes that these non-GAAP and
other financial metrics, when taken together with the corresponding GAAP
financial measures, offer valuable supplemental information regarding
the performance of its business, and will help investors better
understand the sales volumes and profitability trends, as well as the
cash flow characteristics, of its business. The non-GAAP metrics should
not be considered in isolation from, are not a substitute for, and do
not purport to be an alternative to, revenue, cost of revenue, operating
expense, or any other performance measure derived in accordance with
GAAP. Silver Spring Networks may consider whether other significant
non-recurring items that arise in the future should also be excluded in
calculating the non-GAAP financial measures it uses.
Billings represents amounts invoiced for products for which
ownership, typically evidenced by title and risk of loss, has
transferred or services that have been provided to the customer, and for
which payment is expected to be made in accordance with normal payment
terms. Billings excludes amounts for undelivered products, services to
be performed in the future, and amounts paid or payable to customers.
Billings are initially recorded as deferred revenue and are then
recognized as revenue when all revenue recognition criteria has been met
under Silver Spring Networks' accounting policies as described in Silver
Spring Networks' filings with the Securities and Exchange Commission.
Silver Spring Networks reconciles revenue to billings by adding revenue
to the change in deferred revenue in a given period.
Cost of billings represents the cost associated with products and
services that have been delivered to the customer, excluding stock-based
compensation, amortization of intangibles and acquisition-related
charges. Cost of product shipments for which revenue is not recognized
in the period incurred is recorded as deferred cost of revenue. Deferred
cost of revenue is expensed in the statement of operations as cost of
revenue when the corresponding revenue is recognized. Costs related to
services are expensed in the period incurred. Silver Spring Networks
reconciles cost of revenue to cost of billings by adding cost of revenue
and the change in deferred cost of revenue, less stock-based
compensation, amortization of intangibles and acquisition-related
charges, included in cost of revenue in a given period.
Non-GAAP operating expense consists of research and development,
sales and marketing, and general and administrative expenses, excluding
amortization and impairment of intangible assets, stock-based
compensation, acquisition-related charges, restructuring and legal
settlements.
Total backlog represents future product and service billings that
Silver Spring Networks expects to generate pursuant to contracts entered
into with its utility customers and meter manufacturers. Total backlog
includes order backlog, which represents future billings for open
purchase orders and other firm commitments.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks and uncertainties. These forward-looking statements include
statements regarding the momentum in Silver Spring Networks' business;
future growth and market opportunity; the scope and timing of future
deployments; expected benefits from our products; future investment;
future innovation; customer and market activity; and future financial
results. Statements including words such as "anticipate", "believe",
"estimate" or "expect" and statements in the future tense are
forward-looking statements. These forward-looking statements are
preliminary estimates and expectations based on current information and
are subject to business and economic risks and uncertainties that could
cause actual events or actual future results to differ materially from
the expectations set forth in the forward-looking statements. Important
factors that could cause results to differ materially from the
statements herein include: timing around customer decisions and
deployment pace; receipt by our customers of required regulatory
approvals; dependence on a limited number of customers and key
suppliers; general economic risks; specific economic risks in different
geographies and among different industries; failure to maintain or
increase renewals and increase business from existing customers;
uncertainties around continued success in sales growth and market share
gains; the expansion of our target markets, including the IoT market;
lengthy sales cycles with no assurances that a prospective customer will
select Silver Spring Networks' products and services; amounts included
in backlog may not result in billings or revenue; adverse publicity
about, or consumer or political opposition to, the smart grid; security
breaches involving smart grid products or services; the ability to
integrate technology into third-party devices and Silver Spring
Networks' relationship with third-party manufacturers; execution and
customer adoption risks related to new product introductions and
innovation, including our fifth generation networking platform and
products; the ability to attract and retain personnel, including members
of Silver Spring Networks' management team; changes in strategy;
technological changes that make Silver Spring Networks' products and
services less competitive; competition, particularly from larger
companies with more resources than Silver Spring; international business
uncertainties; the ability to acquire and integrate other businesses;
and other risk factors set forth from time to time in Silver Spring
Networks' filings with the SEC, copies of which are available free of
charge at the SEC's website at www.sec.gov.
All forward-looking statements in this press release reflect Silver
Spring's expectations as of February 21, 2017. Silver Spring undertakes
no obligation, and expressly disclaims any obligation, to update any
forward-looking statements in this press release in light of new
information or future events. In addition, the preliminary financial
results set forth in this press release are estimates based on
information currently available to Silver Spring.
1 For this and future earnings reports, Silver Spring
Networks will no longer report certain non-GAAP financial metrics,
including gross profit on billings, gross margin on billings, and
non-GAAP operating income (loss). Silver Spring Networks will continue
to report billings, cost of billings, and non-GAAP operating expense.
Silver Spring Networks will also provide additional GAAP measures used
internally by management to adjust GAAP measures in order to assess its
business performance, which can also be used by investors to derive
metrics comparable to previously reported non-GAAP metrics. For more
information, please refer to the conference call Silver Spring Networks
hosted on February 13, 2017, a replay of which is available on our
website at http://ir.ssni.com.
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
40,386
|
|
|
$
|
143,202
|
|
|
$
|
193,618
|
|
|
$
|
353,041
|
|
Services
|
|
|
25,864
|
|
|
|
56,045
|
|
|
|
117,390
|
|
|
|
136,518
|
|
Total revenue
|
|
|
66,250
|
|
|
|
199,247
|
|
|
|
311,008
|
|
|
|
489,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
|
19,915
|
|
|
|
83,903
|
|
|
|
106,583
|
|
|
|
202,430
|
|
Services
|
|
|
17,918
|
|
|
|
13,999
|
|
|
|
66,226
|
|
|
|
61,386
|
|
Total cost of revenue
|
|
|
37,833
|
|
|
|
97,902
|
|
|
|
172,809
|
|
|
|
263,816
|
|
Gross profit
|
|
|
28,417
|
|
|
|
101,345
|
|
|
|
138,199
|
|
|
|
225,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
19,090
|
|
|
|
13,714
|
|
|
|
70,673
|
|
|
|
61,295
|
|
Sales and marketing
|
|
|
10,809
|
|
|
|
7,343
|
|
|
|
39,406
|
|
|
|
33,452
|
|
General and administrative
|
|
|
12,049
|
|
|
|
14,483
|
|
|
|
45,801
|
|
|
|
46,372
|
|
Impairment of intangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
2,204
|
|
|
|
-
|
|
Restructuring
|
|
|
-
|
|
|
|
60
|
|
|
|
39
|
|
|
|
1,671
|
|
Total operating expenses
|
|
|
41,948
|
|
|
|
35,600
|
|
|
|
158,123
|
|
|
|
142,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
|
|
(13,531
|
)
|
|
|
65,745
|
|
|
|
(19,924
|
)
|
|
|
82,953
|
|
Other (expense) income, net
|
|
|
(217
|
)
|
|
|
(159
|
)
|
|
|
670
|
|
|
|
104
|
|
(Loss) income before income taxes
|
|
|
(13,748
|
)
|
|
|
65,586
|
|
|
|
(19,254
|
)
|
|
|
83,057
|
|
Provision for income taxes
|
|
|
(239
|
)
|
|
|
(3,708
|
)
|
|
|
(2,375
|
)
|
|
|
(3,071
|
)
|
Net (loss) income
|
|
$
|
(13,987
|
)
|
|
$
|
61,878
|
|
|
$
|
(21,629
|
)
|
|
$
|
79,986
|
|
Net (loss) income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.27
|
)
|
|
$
|
1.23
|
|
|
$
|
(0.42
|
)
|
|
$
|
1.60
|
|
Diluted
|
|
$
|
(0.27
|
)
|
|
$
|
1.19
|
|
|
$
|
(0.42
|
)
|
|
$
|
1.55
|
|
Weighted average shares used to compute net (loss) income per share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
52,039
|
|
|
|
50,481
|
|
|
|
51,444
|
|
|
|
49,963
|
|
Diluted
|
|
|
52,039
|
|
|
|
52,167
|
|
|
|
51,444
|
|
|
|
51,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015 (a)
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
50,383
|
|
|
$
|
65,264
|
|
Short-term investments
|
|
|
67,876
|
|
|
|
59,181
|
|
Accounts receivable
|
|
|
44,770
|
|
|
|
47,813
|
|
Inventory
|
|
|
8,040
|
|
|
|
4,545
|
|
Deferred cost of revenue
|
|
|
194,769
|
|
|
|
196,868
|
|
Prepaid expenses and other current assets
|
|
|
12,536
|
|
|
|
10,835
|
|
Total current assets
|
|
|
378,374
|
|
|
|
384,506
|
|
Property and equipment, net
|
|
|
28,986
|
|
|
|
14,106
|
|
Goodwill and intangible assets
|
|
|
11,005
|
|
|
|
14,390
|
|
Deferred cost of revenue, non-current
|
|
|
26,639
|
|
|
|
38,882
|
|
Deferred tax assets, non-current
|
|
|
481
|
|
|
|
1,069
|
|
Other long-term assets
|
|
|
1,643
|
|
|
|
4,772
|
|
Total assets
|
|
$
|
447,128
|
|
|
$
|
457,725
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
26,785
|
|
|
$
|
30,623
|
|
Deferred revenue
|
|
|
292,260
|
|
|
|
305,471
|
|
Accrued and other liabilities
|
|
|
44,146
|
|
|
|
42,751
|
|
Total current liabilities
|
|
|
363,191
|
|
|
|
378,845
|
|
Deferred revenue, non-current
|
|
|
93,149
|
|
|
|
96,342
|
|
Other liabilities, non-current
|
|
|
22,324
|
|
|
|
16,403
|
|
Total liabilities
|
|
|
478,664
|
|
|
|
491,590
|
|
Total stockholders' deficit
|
|
|
(31,536
|
)
|
|
|
(33,865
|
)
|
Total liabilities and stockholders' deficit
|
|
$
|
447,128
|
|
|
$
|
457,725
|
|
|
|
|
|
|
|
|
(a) Derived from audited consolidated financial statements.
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
December 31,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(13,987
|
)
|
|
$
|
61,878
|
|
|
$
|
(21,629
|
)
|
|
$
|
79,986
|
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred taxes
|
|
|
520
|
|
|
|
(557
|
)
|
|
|
614
|
|
|
|
(1,492
|
)
|
Impairment of intangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
2,204
|
|
|
|
-
|
|
Depreciation and amortization
|
|
|
2,291
|
|
|
|
1,930
|
|
|
|
8,623
|
|
|
|
7,822
|
|
Tax benefit from shared-based award activity
|
|
|
83
|
|
|
|
153
|
|
|
|
83
|
|
|
|
153
|
|
Excess tax benefit from share-based payment awards
|
|
|
(83
|
)
|
|
|
(153
|
)
|
|
|
(83
|
)
|
|
|
(153
|
)
|
Stock-based compensation
|
|
|
7,970
|
|
|
|
4,942
|
|
|
|
29,809
|
|
|
|
26,479
|
|
Other non-cash adjustments
|
|
|
114
|
|
|
|
412
|
|
|
|
886
|
|
|
|
766
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
316
|
|
|
|
(3,675
|
)
|
|
|
3,142
|
|
|
|
7,398
|
|
Inventory
|
|
|
(2,740
|
)
|
|
|
(853
|
)
|
|
|
(3,490
|
)
|
|
|
2,190
|
|
Prepaid expenses and other assets
|
|
|
(622
|
)
|
|
|
(936
|
)
|
|
|
2,335
|
|
|
|
(5,128
|
)
|
Landlord incentives related to lease
|
|
|
-
|
|
|
|
-
|
|
|
|
6,788
|
|
|
|
-
|
|
Contingent consideration related to Detectent acquisition held in
escrow
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,000
|
)
|
Deferred cost of revenue
|
|
|
(3,174
|
)
|
|
|
56,978
|
|
|
|
14,421
|
|
|
|
97,286
|
|
Accounts payable
|
|
|
4,425
|
|
|
|
3,232
|
|
|
|
(4,483
|
)
|
|
|
3,101
|
|
Customer deposits
|
|
|
(970
|
)
|
|
|
(599
|
)
|
|
|
61
|
|
|
|
(448
|
)
|
Deferred revenue
|
|
|
11,480
|
|
|
|
(124,115
|
)
|
|
|
(16,581
|
)
|
|
|
(208,305
|
)
|
Accrued and other liabilities
|
|
|
2,462
|
|
|
|
7,620
|
|
|
|
(1,938
|
)
|
|
|
14,032
|
|
Net cash provided by operating activities
|
|
|
8,085
|
|
|
|
6,257
|
|
|
|
20,762
|
|
|
|
19,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for business acquisition, net of cash and cash
equivalents acquired
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,098
|
)
|
Proceeds from sales of available-for-sale investments
|
|
|
2,000
|
|
|
|
4,204
|
|
|
|
41,217
|
|
|
|
15,690
|
|
Proceeds from maturities of available-for-sale investments
|
|
|
-
|
|
|
|
-
|
|
|
|
10,970
|
|
|
|
9,250
|
|
Purchases of available-for-sale investments
|
|
|
(4,940
|
)
|
|
|
(5,270
|
)
|
|
|
(61,295
|
)
|
|
|
(24,180
|
)
|
Purchases of property and equipment
|
|
|
(1,447
|
)
|
|
|
(1,821
|
)
|
|
|
(24,816
|
)
|
|
|
(5,350
|
)
|
Net cash (used in) investing activities
|
|
|
(4,387
|
)
|
|
|
(2,887
|
)
|
|
|
(33,924
|
)
|
|
|
(11,688
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments on capital lease obligations
|
|
|
-
|
|
|
|
(169
|
)
|
|
|
(285
|
)
|
|
|
(1,163
|
)
|
Proceeds from issuance of common stock
|
|
|
281
|
|
|
|
139
|
|
|
|
4,519
|
|
|
|
3,794
|
|
Excess tax benefit from share-based payment awards
|
|
|
83
|
|
|
|
153
|
|
|
|
83
|
|
|
|
153
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
(1,756
|
)
|
|
|
(1,820
|
)
|
|
|
(5,925
|
)
|
|
|
(5,788
|
)
|
Net cash (used in) financing activities
|
|
|
(1,392
|
)
|
|
|
(1,697
|
)
|
|
|
(1,608
|
)
|
|
|
(3,004
|
)
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
29
|
|
|
|
136
|
|
|
|
(111
|
)
|
|
|
(188
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
2,335
|
|
|
|
1,809
|
|
|
|
(14,881
|
)
|
|
|
4,807
|
|
Cash and cash equivalents - beginning of period
|
|
|
48,048
|
|
|
|
63,455
|
|
|
|
65,264
|
|
|
|
60,457
|
|
Cash and cash equivalents - end of period
|
|
$
|
50,383
|
|
|
$
|
65,264
|
|
|
$
|
50,383
|
|
|
$
|
65,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED RECONCILIATION OF REVENUE BETWEEN GAAP AND NON-GAAP
(QUARTERLY)
|
(in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YoY%
|
REVENUE AND BILLINGS BY TYPE
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
Change
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
143,202
|
|
|
$
|
32,852
|
|
|
$
|
69,917
|
|
|
$
|
50,463
|
|
|
$
|
40,386
|
|
|
-72
|
%
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
37,142
|
|
|
|
11,068
|
|
|
|
24,570
|
|
|
|
14,090
|
|
|
|
15,581
|
|
|
-58
|
%
|
Professional services
|
|
|
18,903
|
|
|
|
4,700
|
|
|
|
27,465
|
|
|
|
9,633
|
|
|
|
10,283
|
|
|
-46
|
%
|
Total services
|
|
|
56,045
|
|
|
|
15,768
|
|
|
|
52,035
|
|
|
|
23,723
|
|
|
|
25,864
|
|
|
-54
|
%
|
Total revenue
|
|
$
|
199,247
|
|
|
$
|
48,620
|
|
|
$
|
121,952
|
|
|
$
|
74,186
|
|
|
$
|
66,250
|
|
|
-67
|
%
|
% Product
|
|
|
72
|
%
|
|
|
68
|
%
|
|
|
57
|
%
|
|
|
68
|
%
|
|
|
61
|
%
|
|
|
% Services
|
|
|
28
|
%
|
|
|
32
|
%
|
|
|
43
|
%
|
|
|
32
|
%
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
(95,194
|
)
|
|
$
|
12,883
|
|
|
$
|
(23,804
|
)
|
|
$
|
(568
|
)
|
|
$
|
7,155
|
|
|
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
(22,896
|
)
|
|
|
1,820
|
|
|
|
(9,650
|
)
|
|
|
1,641
|
|
|
|
1,427
|
|
|
|
Professional services
|
|
|
(6,169
|
)
|
|
|
5,591
|
|
|
|
(16,652
|
)
|
|
|
885
|
|
|
|
2,867
|
|
|
|
Total services
|
|
|
(29,065
|
)
|
|
|
7,411
|
|
|
|
(26,302
|
)
|
|
|
2,526
|
|
|
|
4,294
|
|
|
|
Total change in deferred revenue
|
|
$
|
(124,259
|
)
|
|
$
|
20,294
|
|
|
$
|
(50,106
|
)
|
|
$
|
1,958
|
|
|
$
|
11,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
48,008
|
|
|
$
|
45,735
|
|
|
$
|
46,113
|
|
|
$
|
49,895
|
|
|
$
|
47,541
|
|
|
-1
|
%
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
14,246
|
|
|
|
12,888
|
|
|
|
14,920
|
|
|
|
15,731
|
|
|
|
17,008
|
|
|
19
|
%
|
Professional services
|
|
|
12,734
|
|
|
|
10,291
|
|
|
|
10,813
|
|
|
|
10,518
|
|
|
|
13,150
|
|
|
3
|
%
|
Total services
|
|
|
26,980
|
|
|
|
23,179
|
|
|
|
25,733
|
|
|
|
26,249
|
|
|
|
30,158
|
|
|
12
|
%
|
Total Billings
|
|
$
|
74,988
|
|
|
$
|
68,914
|
|
|
$
|
71,846
|
|
|
$
|
76,144
|
|
|
$
|
77,699
|
|
|
4
|
%
|
% Product
|
|
|
64
|
%
|
|
|
66
|
%
|
|
|
64
|
%
|
|
|
66
|
%
|
|
|
61
|
%
|
|
|
% Services
|
|
|
36
|
%
|
|
|
34
|
%
|
|
|
36
|
%
|
|
|
34
|
%
|
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE AND BILLINGS BY SOLUTION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
181,892
|
|
|
$
|
40,514
|
|
|
$
|
105,181
|
|
|
$
|
66,203
|
|
|
$
|
57,148
|
|
|
-69
|
%
|
New solutions
|
|
|
17,355
|
|
|
|
8,106
|
|
|
|
16,771
|
|
|
|
7,983
|
|
|
|
9,102
|
|
|
-48
|
%
|
Total revenue
|
|
$
|
199,247
|
|
|
$
|
48,620
|
|
|
$
|
121,952
|
|
|
$
|
74,186
|
|
|
$
|
66,250
|
|
|
-67
|
%
|
% Advanced metering infrastructure
|
|
|
91
|
%
|
|
|
83
|
%
|
|
|
86
|
%
|
|
|
89
|
%
|
|
|
86
|
%
|
|
|
% New solutions
|
|
|
9
|
%
|
|
|
17
|
%
|
|
|
14
|
%
|
|
|
11
|
%
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
(123,525
|
)
|
|
$
|
16,957
|
|
|
$
|
(45,184
|
)
|
|
$
|
(2,078
|
)
|
|
$
|
2,528
|
|
|
|
New solutions
|
|
|
(734
|
)
|
|
|
3,337
|
|
|
|
(4,922
|
)
|
|
|
4,036
|
|
|
|
8,921
|
|
|
|
Total change in deferred revenue
|
|
$
|
(124,259
|
)
|
|
$
|
20,294
|
|
|
$
|
(50,106
|
)
|
|
$
|
1,958
|
|
|
$
|
11,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advanced metering infrastructure
|
|
$
|
58,367
|
|
|
$
|
57,471
|
|
|
$
|
59,997
|
|
|
$
|
64,125
|
|
|
$
|
59,676
|
|
|
2
|
%
|
New solutions
|
|
|
16,621
|
|
|
|
11,443
|
|
|
|
11,849
|
|
|
|
12,019
|
|
|
|
18,023
|
|
|
8
|
%
|
Total Billings
|
|
$
|
74,988
|
|
|
$
|
68,914
|
|
|
$
|
71,846
|
|
|
$
|
76,144
|
|
|
$
|
77,699
|
|
|
4
|
%
|
% Advanced metering infrastructure
|
|
|
78
|
%
|
|
|
83
|
%
|
|
|
84
|
%
|
|
|
84
|
%
|
|
|
77
|
%
|
|
|
% New solutions
|
|
|
22
|
%
|
|
|
17
|
%
|
|
|
16
|
%
|
|
|
16
|
%
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE AND BILLINGS BY GEOGRAPHY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
177,896
|
|
|
$
|
45,222
|
|
|
$
|
118,539
|
|
|
$
|
43,381
|
|
|
$
|
53,087
|
|
|
-70
|
%
|
International
|
|
|
21,351
|
|
|
|
3,398
|
|
|
|
3,413
|
|
|
|
30,805
|
|
|
|
13,163
|
|
|
-38
|
%
|
Total revenue
|
|
$
|
199,247
|
|
|
$
|
48,620
|
|
|
$
|
121,952
|
|
|
$
|
74,186
|
|
|
$
|
66,250
|
|
|
-67
|
%
|
% United States
|
|
|
89
|
%
|
|
|
93
|
%
|
|
|
97
|
%
|
|
|
58
|
%
|
|
|
80
|
%
|
|
|
% International
|
|
|
11
|
%
|
|
|
7
|
%
|
|
|
3
|
%
|
|
|
42
|
%
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
(116,859
|
)
|
|
$
|
8,468
|
|
|
$
|
(57,666
|
)
|
|
$
|
21,085
|
|
|
$
|
8,880
|
|
|
|
International
|
|
|
(7,400
|
)
|
|
|
11,826
|
|
|
|
7,560
|
|
|
|
(19,127
|
)
|
|
|
2,569
|
|
|
|
Total change in deferred revenue
|
|
$
|
(124,259
|
)
|
|
$
|
20,294
|
|
|
$
|
(50,106
|
)
|
|
$
|
1,958
|
|
|
$
|
11,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Billings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
$
|
61,037
|
|
|
$
|
53,690
|
|
|
$
|
60,873
|
|
|
$
|
64,466
|
|
|
$
|
61,967
|
|
|
2
|
%
|
International
|
|
|
13,951
|
|
|
|
15,224
|
|
|
|
10,973
|
|
|
|
11,678
|
|
|
|
15,732
|
|
|
13
|
%
|
Total Billings
|
|
$
|
74,988
|
|
|
$
|
68,914
|
|
|
$
|
71,846
|
|
|
$
|
76,144
|
|
|
$
|
77,699
|
|
|
4
|
%
|
% United States
|
|
|
81
|
%
|
|
|
78
|
%
|
|
|
85
|
%
|
|
|
85
|
%
|
|
|
80
|
%
|
|
|
% International
|
|
|
19
|
%
|
|
|
22
|
%
|
|
|
15
|
%
|
|
|
15
|
%
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP MEASURES (QUARTERLY)
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2016
|
|
|
Cost of Revenue
|
|
Change in Deferred Cost of Revenue (a)
|
|
Stock-based Compensation
|
|
Amortization of Intangible Assets
|
|
Acquisition- Related Costs
|
|
Cost of Billings
|
Cost of Revenue / Cost of Billings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
19,915
|
|
$
|
3,177
|
|
|
$
|
(455
|
)
|
|
$
|
(79
|
)
|
|
$
|
-
|
|
|
$
|
22,558
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
9,762
|
|
|
-
|
|
|
|
(680
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
9,082
|
Professional services
|
|
|
8,156
|
|
|
-
|
|
|
|
(810
|
)
|
|
|
-
|
|
|
|
(15
|
)
|
|
|
7,331
|
Total services
|
|
$
|
17,918
|
|
$
|
-
|
|
|
$
|
(1,490
|
)
|
|
$
|
-
|
|
|
$
|
(15
|
)
|
|
$
|
16,413
|
Total Cost of Revenue / Cost of Billings
|
|
$
|
37,833
|
|
$
|
3,177
|
|
|
$
|
(1,945
|
)
|
|
$
|
(79
|
)
|
|
$
|
(15
|
)
|
|
$
|
38,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
Stock-based Compensation
|
|
Amortization and Impairment of Intangible
Assets
|
|
Restructuring & Litigation
|
|
Acquisition- Related Costs
|
|
Non-GAAP Operating Expenses
|
Operating Expenses / Non-GAAP Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
$
|
19,090
|
|
$
|
(2,450
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(311
|
)
|
|
$
|
16,329
|
Sales and marketing
|
|
|
10,809
|
|
|
(1,152
|
)
|
|
|
(105
|
)
|
|
|
-
|
|
|
|
(66
|
)
|
|
|
9,486
|
General and administrative
|
|
|
12,049
|
|
|
(2,423
|
)
|
|
|
(8
|
)
|
|
|
-
|
|
|
|
(117
|
)
|
|
|
9,501
|
Impairment of intangible assets
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Restructuring
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Total Operating Expenses / Non-GAAP Operating Expenses
|
|
$
|
41,948
|
|
$
|
(6,025
|
)
|
|
$
|
(113
|
)
|
|
$
|
-
|
|
|
$
|
(494
|
)
|
|
$
|
35,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2015
|
|
|
Cost of Revenue
|
|
Change in Deferred Cost of Revenue (a)
|
|
Stock-based Compensation
|
|
Amortization of Intangible Assets
|
|
Acquisition- Related Costs
|
|
Cost of Billings
|
Cost of Revenue / Cost of Billings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
83,903
|
|
$
|
(56,982
|
)
|
|
$
|
(250
|
)
|
|
$
|
(259
|
)
|
|
$
|
-
|
|
|
$
|
26,412
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
7,592
|
|
|
-
|
|
|
|
(271
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
7,321
|
Professional services
|
|
|
6,407
|
|
|
-
|
|
|
|
(485
|
)
|
|
|
-
|
|
|
|
(15
|
)
|
|
|
5,907
|
Total services
|
|
$
|
13,999
|
|
$
|
-
|
|
|
$
|
(756
|
)
|
|
$
|
-
|
|
|
$
|
(15
|
)
|
|
$
|
13,228
|
Total Cost of Revenue / Cost of Billings
|
|
$
|
97,902
|
|
$
|
(56,982
|
)
|
|
$
|
(1,006
|
)
|
|
$
|
(259
|
)
|
|
$
|
(15
|
)
|
|
$
|
39,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
Stock-based Compensation
|
|
Amortization and Impairment of Intangible
Assets
|
|
Restructuring & Litigation
|
|
Acquisition- Related Costs
|
|
Non-GAAP Operating Expenses
|
Operating Expenses / Non-GAAP Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
$
|
13,714
|
|
$
|
(1,277
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(311
|
)
|
|
$
|
12,126
|
Sales and marketing
|
|
|
7,343
|
|
|
(665
|
)
|
|
|
(155
|
)
|
|
|
-
|
|
|
|
(64
|
)
|
|
|
6,459
|
General and administrative
|
|
|
14,483
|
|
|
(1,994
|
)
|
|
|
(8
|
)
|
|
|
(3,595
|
)
|
|
|
(116
|
)
|
|
|
8,770
|
Impairment of intangible assets
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Restructuring
|
|
|
60
|
|
|
-
|
|
|
|
-
|
|
|
|
(60
|
)
|
|
|
-
|
|
|
|
-
|
Total Operating Expenses / Non-GAAP Operating Expenses
|
|
$
|
35,600
|
|
$
|
(3,936
|
)
|
|
$
|
(163
|
)
|
|
$
|
(3,655
|
)
|
|
$
|
(491
|
)
|
|
$
|
27,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts presented net of foreign currency translation.
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP MEASURES (YEAR TO
DATE)
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2016
|
|
|
Cost of Revenue
|
|
Change in Deferred Cost of Revenue (a)
|
|
Stock-based Compensation
|
|
Amortization of Intangible Assets
|
|
Acquisition- Related Costs
|
|
Cost of Billings
|
Cost of Revenue / Cost of Billings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
106,583
|
|
$
|
(14,551
|
)
|
|
$
|
(1,737
|
)
|
|
$
|
(522
|
)
|
|
$
|
-
|
|
|
$
|
89,773
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
36,772
|
|
|
-
|
|
|
|
(2,415
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
34,357
|
Professional services
|
|
|
29,454
|
|
|
-
|
|
|
|
(2,592
|
)
|
|
|
-
|
|
|
|
(61
|
)
|
|
|
26,801
|
Total services
|
|
$
|
66,226
|
|
$
|
-
|
|
|
$
|
(5,007
|
)
|
|
$
|
-
|
|
|
$
|
(61
|
)
|
|
$
|
61,158
|
Total Cost of Revenue / Cost of Billings
|
|
$
|
172,809
|
|
$
|
(14,551
|
)
|
|
$
|
(6,744
|
)
|
|
$
|
(522
|
)
|
|
$
|
(61
|
)
|
|
$
|
150,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
Stock-based Compensation
|
|
Amortization and Impairment of Intangible
Assets
|
|
Restructuring & Litigation
|
|
Acquisition- Related Costs
|
|
Non-GAAP Operating Expenses
|
Operating Expenses / Non-GAAP Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
$
|
70,673
|
|
$
|
(9,309
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(1,243
|
)
|
|
$
|
60,121
|
Sales and marketing
|
|
|
39,406
|
|
|
(3,652
|
)
|
|
|
(626
|
)
|
|
|
-
|
|
|
|
(262
|
)
|
|
|
34,866
|
General and administrative
|
|
|
45,801
|
|
|
(10,104
|
)
|
|
|
(33
|
)
|
|
|
-
|
|
|
|
(477
|
)
|
|
|
35,187
|
Impairment of intangible assets
|
|
|
2,204
|
|
|
-
|
|
|
|
(2,204
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Restructuring
|
|
|
39
|
|
|
-
|
|
|
|
-
|
|
|
|
(39
|
)
|
|
|
-
|
|
|
|
-
|
Total Operating Expenses / Non-GAAP Operating Expenses
|
|
$
|
158,123
|
|
$
|
(23,065
|
)
|
|
$
|
(2,863
|
)
|
|
$
|
(39
|
)
|
|
$
|
(1,982
|
)
|
|
$
|
130,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2015
|
|
|
Cost of Revenue
|
|
Change in Deferred Cost of Revenue (a)
|
|
Stock-based Compensation
|
|
Amortization of Intangible Assets
|
|
Acquisition- Related Costs
|
|
Cost of Billings
|
Cost of Revenue / Cost of Billings:
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
202,430
|
|
$
|
(97,274
|
)
|
|
$
|
(1,288
|
)
|
|
$
|
(1,041
|
)
|
|
$
|
-
|
|
|
$
|
102,827
|
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed services and SaaS
|
|
|
31,663
|
|
|
-
|
|
|
|
(2,037
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
29,626
|
Professional services
|
|
|
29,723
|
|
|
-
|
|
|
|
(2,810
|
)
|
|
|
-
|
|
|
|
(100
|
)
|
|
|
26,813
|
Total services
|
|
$
|
61,386
|
|
$
|
-
|
|
|
$
|
(4,847
|
)
|
|
$
|
-
|
|
|
$
|
(100
|
)
|
|
$
|
56,439
|
Total Cost of Revenue / Cost of Billings
|
|
$
|
263,816
|
|
$
|
(97,274
|
)
|
|
$
|
(6,135
|
)
|
|
$
|
(1,041
|
)
|
|
$
|
(100
|
)
|
|
$
|
159,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
Stock-based Compensation
|
|
Amortization and Impairment of Intangible
Assets
|
|
Restructuring & Litigation
|
|
Acquisition- Related Costs
|
|
Non-GAAP Operating Expenses
|
Operating Expenses / Non-GAAP Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
$
|
61,295
|
|
$
|
(8,060
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(451
|
)
|
|
$
|
52,784
|
Sales and marketing
|
|
|
33,452
|
|
|
(4,105
|
)
|
|
|
(601
|
)
|
|
|
-
|
|
|
|
(87
|
)
|
|
|
28,659
|
General and administrative
|
|
|
46,372
|
|
|
(8,179
|
)
|
|
|
(32
|
)
|
|
|
(3,595
|
)
|
|
|
(1,913
|
)
|
|
|
32,653
|
Impairment of intangible assets
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Restructuring
|
|
|
1,671
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,671
|
)
|
|
|
-
|
|
|
|
-
|
Total Operating Expenses / Non-GAAP Operating Expenses
|
|
$
|
142,790
|
|
$
|
(20,344
|
)
|
|
$
|
(633
|
)
|
|
$
|
(5,266
|
)
|
|
$
|
(2,451
|
)
|
|
$
|
114,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts presented net of foreign currency translation.
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
|
|
|
UNAUDITED SUPPLEMENTAL FINANCIAL DATA AND OTHER INFORMATION
|
(in thousands, except percentages and headcount)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
YoY%
|
SUPPLEMENTAL FINANCIAL DATA
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCK-BASED COMPENSATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
$
|
1,006
|
|
$
|
1,328
|
|
$
|
1,389
|
|
$
|
2,082
|
|
$
|
1,945
|
|
93
|
%
|
|
|
|
Research and development
|
|
|
1,277
|
|
|
2,025
|
|
|
2,241
|
|
|
2,593
|
|
|
2,450
|
|
92
|
%
|
|
|
|
Sales and marketing
|
|
|
665
|
|
|
831
|
|
|
726
|
|
|
943
|
|
|
1,152
|
|
73
|
%
|
|
|
|
General and administrative
|
|
|
1,994
|
|
|
2,716
|
|
|
2,685
|
|
|
2,280
|
|
|
2,423
|
|
22
|
%
|
|
|
|
TOTAL STOCK-BASED COMPENSATION
|
|
$
|
4,942
|
|
$
|
6,900
|
|
$
|
7,041
|
|
$
|
7,898
|
|
$
|
7,970
|
|
61
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
|
|
$
|
6,257
|
|
$
|
3,730
|
|
$
|
3,802
|
|
$
|
5,145
|
|
$
|
8,085
|
|
29
|
%
|
|
|
|
Operating cash flow - trailing twelve months
|
|
|
19,687
|
|
|
23,872
|
|
|
18,061
|
|
|
18,934
|
|
|
20,762
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
$
|
124,445
|
|
$
|
125,369
|
|
$
|
113,064
|
|
$
|
113,358
|
|
$
|
118,259
|
|
-5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOMES & BUSINESSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network endpoints delivered during quarter*
|
|
|
633
|
|
|
698
|
|
|
747
|
|
|
569
|
|
|
564
|
|
-11
|
%
|
|
|
|
Cumulative network endpoints delivered*
|
|
|
22,954
|
|
|
23,652
|
|
|
24,399
|
|
|
24,968
|
|
|
25,532
|
|
11
|
%
|
|
|
|
*Endpoints refer to communication modules in electric meters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMPLOYEES
|
|
|
652
|
|
|
673
|
|
|
708
|
|
|
709
|
|
|
702
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER SPRING NETWORKS, INC.
|
UNAUDITED SUPPLEMENTAL TRENDED GAAP FINANCIAL DATA
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
|
2015
|
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
$
|
101,345
|
|
|
$
|
16,997
|
|
|
$
|
64,543
|
|
|
$
|
28,242
|
|
|
$
|
28,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other GAAP financial data related to
gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in deferred revenue, net of foreign currency translation
|
|
|
(124,259
|
)
|
|
|
20,294
|
|
|
|
(50,106
|
)
|
|
|
1,958
|
|
|
|
11,449
|
|
Change in deferred cost of revenue, net of foreign currency
translation
|
|
|
56,982
|
|
|
|
(8,668
|
)
|
|
|
16,992
|
|
|
|
9,404
|
|
|
|
(3,177
|
)
|
Amortization of intangible assets
|
|
|
259
|
|
|
|
169
|
|
|
|
195
|
|
|
|
79
|
|
|
|
79
|
|
Stock-based compensation
|
|
|
1,006
|
|
|
|
1,328
|
|
|
|
1,389
|
|
|
|
2,082
|
|
|
|
1,945
|
|
Acquisition-related charges
|
|
|
15
|
|
|
|
15
|
|
|
|
16
|
|
|
|
15
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
$
|
35,600
|
|
|
$
|
35,920
|
|
|
$
|
37,794
|
|
|
$
|
42,461
|
|
|
$
|
41,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other GAAP financial data included in
operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets
|
|
|
163
|
|
|
|
252
|
|
|
|
180
|
|
|
|
114
|
|
|
|
113
|
|
Stock-based compensation
|
|
|
3,936
|
|
|
|
5,572
|
|
|
|
5,652
|
|
|
|
5,816
|
|
|
|
6,025
|
|
Acquisition-related charges
|
|
|
491
|
|
|
|
501
|
|
|
|
494
|
|
|
|
493
|
|
|
|
494
|
|
Impairment of intangible assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,204
|
|
|
|
-
|
|
Restructuring
|
|
|
60
|
|
|
|
39
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Legal settlements
|
|
|
3,595
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other statement of operations line items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income, net
|
|
$
|
(159
|
)
|
|
$
|
441
|
|
|
$
|
333
|
|
|
$
|
113
|
|
|
$
|
(217
|
)
|
Provision for income taxes
|
|
|
(3,708
|
)
|
|
|
(32
|
)
|
|
|
(961
|
)
|
|
|
(1,143
|
)
|
|
|
(239
|
)
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170221006565/en/
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