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Vocera Announces Fourth Quarter Revenue of $45.5 Million
[February 08, 2018]

Vocera Announces Fourth Quarter Revenue of $45.5 Million


Vocera Communications, Inc. (NYSE:VCRA), a recognized leader in clinical communication and workflow solutions, today reported total revenue of $45.5 million for the fourth quarter of 2017, an increase of 26% compared to revenue of $36.0 million in the fourth quarter of 2016.

"Our fourth quarter was full of accomplishments, closing out a truly great year for Vocera, with 27% annual revenue growth and solid profitability gains. Our solutions continue to transform communications and workflow in the healthcare space," said Brent Lang, president and CEO of Vocera. "The addition of Engage software to our platform has changed the tone of the conversation and secured us a meaningful seat at the table with hospitals as they set their IT spending priorities."

Fourth quarter of 2017 financial highlights include:

  • Total revenue of $45.5 million, up 26% year-over-year
  • GAAP net income per share of $0.09; non-GAAP net income per share of $0.29
  • GAAP net income of $2.7 million; Adjusted EBITDA of $9.3 million
  • Full-year bookings of $166.2 million, up 16% year-over-year
  • Deferred revenue of $63.7 million; and backlog of $64.4 million as of December 31, 2017
  • Cash, cash equivalents and short-term investments of $81.2 million as of December 31, 2017; no debt

Fourth Quarter 2017 Results

Total revenue for the fourth quarter of 2017 was $45.5 million, compared to $36.0 million in the fourth quarter of 2016.



 
(in thousands)     Three months ended December 31,
2017     2016     % change
Product revenue
Device $ 15,827 $ 13,521 17.1 %
Software 9,098 6,339 43.5
Total product $ 24,925 $ 19,860 25.5 %
 
Service revenue
Maintenance and support $ 14,361 $ 11,676 23.0 %
Professional services and training 6,217 4,476 38.9
Total service 20,578 16,152 27.4
Total revenue $ 45,503 $ 36,012 26.4 %
 

GAAP gross margin for the fourth quarter of 2017 was 64.5%, compared to 59.4% in the fourth quarter of 2016.

 
    Three months ended December 31,
2017     2016
Gross margin
Product 72.6 % 68.0 %
Service 54.7 48.9
Total gross margin 64.5 % 59.4 %
 
Non-GAAP gross margin
Product 75.7 % 70.8 %
Service 58.1 53.3
Total non-GAAP gross margin 67.7 % 63.0 %
 

GAAP net income (loss) for the fourth quarter of 2017 was $2.7 million, or $0.09 per share, compared to $(9.8) million, or $(0.36) per share in the fourth quarter of 2016.

 
    Three months ended December 31,
(in thousands except per share amounts) 2017     2016
Net income (loss) $ 2,659 $ (9,780 )
Net income (loss) per share $ 0.09 $ (0.36 )
Non-GAAP net income $ 9,002 $ 49
Non-GAAP net income per share $ 0.29 $ 0.00
Adjusted EBITDA $ 9,330 $ 972
 

Deferred revenue at December 31, 2017, was $63.7 million compared to $55.0 million at December 31, 2016. Cash equivalents and short-term investments were $81.2 million at December 31, 2017 and $74.1 million at December 31, 2016. The Company continues to have a strong balance sheet with no debt.

Full Year and First Quarter 2018 Guidance

Beginning in the first quarter of 2018, the Company will adopt ASC 606, the new revenue recognition accounting standard, on a fully retrospective basis. As part of this accounting transition, a portion of the Company's opening deferred revenue balance that could have been recognized in 2018, absent the adoption of ASC 606, will be reduced by approximately $8 million and re-cast to prior reporting periods. The Company's re-cast financial statements for 2016 and 2017 are included in the accompanying financial schedules.

The Company's guidance reflects full year and first quarter 2018 estimates under ASC 606. For the first quarter of 2018, the Company expects revenue between $37.0 million and $40.0 million and a GAAP loss per share between $(0.31) and $(0.23). The Company expects non-GAAP net loss per share to be between $(0.11) and $(0.03) and non-GAAP Adjusted EBITDA to be between $(2.0) million and $0.3 million.

For the full-year 2018, the Company expects revenue between $175.0 million and $183.0 million and a GAAP loss per share between $(0.63) and $(0.40). The Company expects non-GAAP net income per share to be between $0.28 and $0.48 and non-GAAP Adjusted EBITDA to be between $14.0 million and $20.0 million.

 
(in millions except per share amounts)     Q1'18     FY'18
Low     High Low     High
Revenue $ 37.0 $ 40.0 $ 175.0 $ 183.0
Loss per share $ (0.31 ) $ (0.23 ) $ (0.63 ) $ (0.40 )
Diluted non-GAAP net income (loss) per share $ (0.11 ) $ (0.03 ) $ 0.28 $ 0.48
Adjusted EBITDA $ (2.0 ) $ 0.3 $ 14.0 $ 20.0
 

Certain amounts in our release may not re-compute due to rounding. A reconciliation of non-GAAP to GAAP financial measures, and first quarter and full-year guidance, are included in the financial schedules.

Conference Call Information

Vocera Communications will host a conference call at 5 p.m. ET (2 p.m. PT) today, February 8, 2018, to discuss the Company's results.

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 833-238-7944, or 647-689-4192 for international callers, and using the access code 1275387.

A webcast replay of the call will be archived at investors.vocera.com.

HIMSS Annual Conference

Vocera will be at the 2018 HIMSS Annual Conference and Exhibition, March 6-8 in Las Vegas. During HIMSS18, attendees can visit the Vocera Booth (#2824) for more information and product demonstrations, or email investorrelations@vocera.com for a booth meeting.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature are forward-looking statements within the meaning of the U.S. federal securities laws, including statements regarding future events, such as our ability to continue to execute on our business plans and strategies and our expected operating results for the first quarter and full year 2018. These forward-looking statements are based on limited information currently available to us and our management's expectations, which are inherently subject to change and involve a number of risks and uncertainties.

Actual events or results may differ materially from those in any forward-looking statement due to various factors, including but not limited to, our ability to achieve anticipated strategic or financial benefits from our acquisitions; changes in regulations in the U.S. and other countries; the effects on government and commercial hospital customers of the federal budget and budgetary uncertainty; changes in healthcare insurance coverage and consumers' utilization of healthcare and hospital services; our ability to achieve and maintain profitability; the demand for our various solutions in the healthcare and other markets; our lengthy and unpredictable sales cycle; our ability to offer high-quality services and support for our solutions; our ability to acquire the sole and limited source hardware and software components of our solutions; our ability to obtain the required capacity and product quality from our contract manufacturer; our ability to develop and introduce new solutions and features to existing solutions and to manage our growth; the impact of tax law reform on us or our customers; and the other factors described in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as our other filings with the Securities and Exchange Commission (SEC). Our filings with the SEC are available on the Investors section of the Company's web site at www.vocera.com. The financial and other information contained in this press release should be read in conjunction with the financial statements and notes thereto included in our filings with the SEC. Our operating results for any historical period, including the fourth quarter of 2017, are not necessarily indicative of our operating results for any future periods. This press release speaks only as of its date. We assume no obligation to update the information in this press release, to revise any forward-looking statements, or to update the reasons actual events or results could differ materially from those anticipated in forward-looking statements.

Use of Non-GAAP Financial Information

This press release contains financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). Our management evaluates the Company's results and makes operating decisions using various GAAP and non-GAAP measures. In addition to our GAAP results, we also consider non-GAAP gross margin, non-GAAP gross margin for products and for services, non-GAAP net income/(loss), non-GAAP income/(loss) per diluted share and non-GAAP operating expenses. We also present Adjusted EBITDA, a non-GAAP measure that we reconcile to net income/(loss). These non-GAAP measures should not be considered as a substitute for the corresponding financial measure derived in accordance with GAAP. We present the non-GAAP measures because we consider them to be important supplemental information for our investors for analyzing our performance, core operating results and trends. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures included with this press release.

Our non-GAAP gross margins, non-GAAP net income/(loss), non-GAAP earnings/(loss) per diluted share, non-GAAP operating expenses, 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, 2014 and 2016, and booked 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) 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 (including amounts relating to the distribution of purchase consideration among the selling equity holders) 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.

d) 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 award 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:

  • Our stock options, restricted stock units, and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in our GAAP results for the foreseeable future; and
  • Other companies may calculate non-GAAP financial measures differently than us, limiting their usefulness as a comparative measure.

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 mission of Vocera Communications, Inc. is to simplify and improve the lives of healthcare professionals and patients, while enabling hospitals to enhance quality of care and operational efficiency. In 2000, when the company was founded, we began to forever change the way care teams communicate. Today, Vocera continues to offer the leading platform for clinical communication and workflow. More than 1,400 hospitals and health systems around the world have selected our solutions for care teams to text securely using smartphones or make calls with our hands-free, wearable Vocera Badge. Interoperability between Vocera and more than 120 clinical systems helps reduce alarm fatigue, speed up staff response times, and improve patient care, safety and experience. In addition to healthcare, Vocera is at home in luxury hotels, aged care facilities, nuclear facilities, libraries, retail stores, and more. Vocera makes a difference in any industry where workers are on the move and need to connect instantly with team members and access resources or information quickly. In 2017, Vocera made the list of Forbes 100 Most Trustworthy Companies in America. Learn more at www.vocera.com, and follow @VoceraComm on Twitter.

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.

 
Vocera Communications, Inc.
Condensed Consolidated Statements of Operations
(In Thousands, Except Per Share Amounts)
(Unaudited)
 
    Three months ended December 31,     Year ended December 31,
      2017     2016     2017     2016
Revenue        
Product $ 24,925 $ 19,860 $ 88,865 $ 70,667
Service 20,578   16,152   73,683   57,029  
Total revenue 45,503   36,012   162,548   127,696  
Cost of revenue
Product 6,820 6,353 27,244 22,788
Service 9,325   8,250   37,683   26,287  
Total cost of revenue 16,145   14,603   64,927   49,075  
Gross profit 29,358   21,409   97,621   78,621  
Operating expenses
Research and development 6,741 5,580 27,685 18,266
Sales and marketing 14,197 14,733 59,986 52,811
General and administrative 6,203   10,400   23,970   24,499  
Total operating expenses 27,141   30,713   111,641   95,576  
Income (loss) from operations 2,217 (9,304 ) (14,020 ) (16,955 )
Interest income 194 111 604 684
Other income (expense), net (43 ) (241 ) (42 ) (467 )
Income (loss) before income taxes 2,368 (9,434 ) (13,458 ) (16,738 )
Provision for income taxes 291   (346 ) (759 ) (529 )
Net income (loss) $ 2,659   $ (9,780 ) $ (14,217 ) $ (17,267 )
 
Net income (loss) per share
Basic $ 0.09   $ (0.36 ) $ (0.50 ) $ (0.64 )
Diluted $ 0.09   $ (0.36 ) $ (0.50 ) $ (0.64 )
Weighted average shares used to compute net income (loss) per share
Basic 29,317   27,409   28,655   26,859  
Diluted 30,704   27,409   28,655   26,859  
 
 
Vocera Communications, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)
(Unaudited)
 
    December 31,     December 31,
      2017     2016
Assets
Current assets
Cash and cash equivalents $ 28,726 $ 35,033
Short-term investments 52,507 39,033
Accounts receivable, net of allowance 35,105 24,142
Other receivables 1,170 1,211
Inventories 2,815 4,556
Prepaid expenses and other current assets 3,957   3,364
Total current assets 124,280 107,339
Property and equipment, net 5,751 5,894
Intangible assets, net 13,567 18,200
Goodwill 49,246 49,246
Other long-term assets 1,667   1,394
Total assets $ 194,511   $ 182,073
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 2,678 $ 3,231
Accrued payroll and other current liabilities 14,689 15,896
Deferred revenue, current 47,276   43,845
Total current liabilities 64,643 62,972
Deferred revenue, long-term 16,438 11,155
Other long-term liabilities 4,455   4,505
Total liabilities 85,536 78,632
Stockholders' equity 108,975   103,441
Total liabilities and stockholders' equity $ 194,511   $ 182,073
 
 

 

Vocera Communications, Inc.

 

Three months ended December 31, 2017

 
        Stock     Intangible     Acquisition        
(In thousands) GAAP compensation amortization related Total Non-GAAP
2017 expense (a) (b) expense (c) adjustments 2017
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited)
Revenue
Product $ 24,925 $ - $ - $ - $ - $ 24,925
Service 20,578   -   -   -   -   20,578
Total revenue 45,503   -   -   -   -   45,503
Cost of revenue
Product 6,820 104 651 - 755 6,065
Service 9,325   650   -   60   710   8,615
Total cost of revenue 16,145   754   651   60   1,465   14,680
Gross profit $ 29,358   $ 754   $ 651   $ 60   $ 1,465   $ 30,823
                               
Stock Intangible Acquisition
(In thousands) GAAP compensation amortization related Total Non-GAAP
2017 expense (a) (b) expense (c) adjustments 2017
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)
 
Research and development $ 6,741 $ 580 $ - $ - $ 580 $ 6,161
Sales and marketing 14,197 1,866 385 - 2,251 11,946
General and administrative 6,203   1,792   55   200   2,047   4,156
Total operating expenses $ 27,141   $ 4,238   $ 440   $ 200   $ 4,878   $ 22,263
(a)     This adjustment reflects the accounting impact of non-cash stock-based compensation expense.
(b) This adjustment reflects the accounting impact of acquisitions in 2010, 2014 and 2016 in non-cash expense.
(c) This adjustment reflects the costs associated with the acquisition in 2016.
 

 

Three months ended December 31, 2016

        Stock     Intangible     Acquisition        
(In thousands) GAAP compensation amortization related Total Non-GAAP
2016 expense (a) (b) expense (c) adjustments 2016
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited)
Revenue
Product $ 19,860 $ - $ - $ - $ - $ 19,860
Service 16,152   -   -   -   -   16,152
Total revenue 36,012   -   -   -   -   36,012
Cost of revenue
Product 6,353 68 493 - 561 5,792
Service 8,250   429   -   274   703   7,547
Total cost of revenue 14,603   497   493   274   1,264   13,339
Gross profit $ 21,409   $ 497   $ 493   $ 274   $ 1,264   $ 22,673
                               
Stock Intangible Acquisition
(In thousands) GAAP compensation amortization related Total Non-GAAP
2016 expense (a) (b) expense (c) adjustments 2016
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)
 
Research and development $ 5,580 $ 341 $ - $ 23 $ 364 $ 5,216
Sales and marketing 14,733 1,235 277 399 1,911 12,822
General and administrative 10,400   1,371   55   4,864   6,290   4,110
Total operating expenses $ 30,713   $ 2,947   $ 332   $ 5,286   $ 8,565   $ 22,148
 
(a)     This adjustment reflects the accounting impact of non-cash stock-based compensation expense.
(b) This adjustment reflects the accounting impact of acquisitions in 2010 and 2014 in non-cash expense.
(c) This adjustment reflects the costs associated with the acquisition in 2016.
 

 

Vocera Communications, Inc.

 

Year ended December 31, 2017

        Stock     Intangible     Acquisition        
(In thousands) GAAP compensation amortization related Total Non-GAAP
2017 expense (a) (b) expense (c) adjustments 2017
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited)
Revenue
Product $ 88,865 $ - $ - $ - $ - $ 88,865
Service 73,683   -   -   -   -   73,683
Total revenue 162,548   -   -   -   -   162,548
Cost of revenue
Product 27,244 413 2,873 - 3,286 23,958
Service 37,683   2,458   -   289   2,747   34,936
Total cost of revenue 64,927   2,871   2,873   289   6,033   58,894
Gross profit $ 97,621   $ 2,871   $ 2,873   $ 289   $ 6,033   $ 103,654
                               
Stock Intangible Acquisition
(In thousands) GAAP compensation amortization related Total Non-GAAP
2017 expense (a) (b) expense (c) adjustments 2017
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)
 
Research and development $ 27,685 $ 2,122 $ - $ 47 $ 2,169 $ 25,516
Sales and marketing 59,986 6,563 1,539 15 8,117 51,869
General and administrative 23,970   6,640   221   918   7,779   16,191
Total operating expenses $ 111,641   $ 15,325   $ 1,760   $ 980   $ 18,065   $ 93,576
(a)     This adjustment reflects the accounting impact of non-cash stock-based compensation expense.
(b) This adjustment reflects the accounting impact of acquisitions in 2010, 2014 and 2016 in non-cash expense.
(c) This adjustment reflects the costs associated with the acquisition in 2016.

 

Year ended December 31, 2016

        Stock     Intangible     Acquisition        
(In thousands) GAAP compensation amortization related Total Non-GAAP
2016 expense (a) (b) expense (c) adjustments 2016
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (Unaudited)
Revenue
Product $ 70,667 $ - $ - $ - $ - $ 70,667
Service 57,029   -   -   -   -   57,029
Total revenue 127,696   -   -   -   -   127,696
Cost of revenue
Product 22,788 235 672 - 907 21,881
Service 26,287   1,153   -   274   1,427   24,860
Total cost of revenue 49,075   1,388   672   274   2,334   46,741
Gross profit $ 78,621   $ 1,388   $ 672   $ 274   $ 2,334   $ 80,955
 
 
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (Unaudited)
 
Research and development $ 18,266 $ 1,158 $ - $ 23 $ 1,181 $ 17,085
Sales and marketing 52,811 4,625 415 399 5,439 47,372
General and administrative 24,499   4,864   288   5,126   10,278   14,221
Total operating expenses $ 95,576   $ 10,647   $ 703   $ 5,548   $ 16,898   $ 78,678
(a)     This adjustment reflects the accounting impact of non-cash stock-based compensation expense.
(b) This adjustment reflects the accounting impact of acquisitions in 2010, 2014 and 2016 in non-cash expense.
(c) This adjustment reflects the costs associated with the acquisition in 2016.
 
Vocera Communications, Inc.
Non-GAAP Net income and net income per share and Adjusted EBITDA
(In thousands, except per share amounts)
(Unaudited)
 
    Three months ended December 31,     Year ended December 31,
2017     2016 2017     2016
GAAP net income (loss) $ 2,659 $ (9,780 ) $ (14,217 ) $ (17,267 )
Add back:
Stock compensation expense 4,992 3,444 18,196 12,035
Acquisition related expenses 260 5,560 1,269 5,822
Interest income (178 ) (97 ) (549 ) (627 )
Depreciation and amortization expense 1,888 1,499 7,643 3,770
Provision for income taxes (291 ) 346   759   529  
Non-GAAP adjusted EBITDA $ 9,330   $ 972   $ 13,101   $ 4,262  
 
GAAP net income (loss) $ 2,659 $ (9,780 ) $ (14,217 ) $ (17,267 )
Add back:
Stock compensation expense 4,992 3,444 18,196 12,035
Intangible amortization 1,091 825 4,633 1,375
Acquisition related expenses 260   5,560   1,269   5,822  
Non-GAAP net income $ 9,002   $ 49   $ 9,881   $ 1,965  
Net income per share
Basic $ 0.31 $ 0.00 $ 0.34 $ 0.07
Diluted $ 0.29 $ 0.00 $ 0.33 $ 0.07
Weighted average shares used to compute net income per share
Basic 29,317 27,409 28,655 26,859
Diluted 30,704 28,717 30,268 28,126
 
 
Vocera Communications, Inc.
Future guidance for operating results
(In millions, except per share amounts)
 
Reconciliation for GAAP to Non-GAAP for net income (loss) and net income (loss) per share    
   

Three months ended

    Year ended

March 31, 2018

December 31, 2018
Low     High Low High
Revenue $ 37.0 $ 40.0 $ 175.0 $ 183.0
GAAP net loss (9.1 ) (6.9 ) (18.9 ) (11.9 )
Stock compensation expense 4.5 4.5 22.0 21.0
Intangible amortization expense 1.2 1.2 4.7 4.7
Acquisition and restructuring expense 0.3   0.3   1.0   1.0  
Total adjustments 6.0   6.0   27.7   26.7  
Non-GAAP net income (loss) $ (3.2 ) $ (0.9 ) $ 8.8   $ 14.8  
Weighted average shares (in thousands)
Basic 29,440 29,440 29,850 29,850
Diluted - GAAP 29,440 29,440 29,850 29,850
Diluted - Non-GAAP 29,440 29,440 31,150 31,150
 
GAAP net loss per share, basic and diluted $ (0.31 ) $ (0.23 ) $ (0.63 ) $ (0.40 )
 
Non-GAAP net income (loss) per share :
Basic $ (0.11 ) $ (0.03 ) $ 0.30 $ 0.50
Diluted $ (0.11 ) $ (0.03 ) $ 0.28 $ 0.48
 
 
Reconciliation of Non-GAAP net income (loss) to adjusted EBITDA    
    Three months ended Year ended
March 31, 2018 December 31, 2018
Low     High Low     High
Non-GAAP net income (loss) $ (3.2 ) $ (0.9 ) $ 8.8   $ 14.8  
Interest income, net (0.1 ) (0.1 ) (0.3 ) (0.3 )
Depreciation expense 0.8 0.8 3.5 3.5
Provision for income taxes 0.5   0.5   2.0   2.0  
Total adjustments 1.2   1.2   5.2   5.2  
Adjusted EBITDA $ (2.0 ) $ 0.3   $ 14.0   $ 20.0  
 

* Amounts may not recompute due to rounding.

 

Vocera Communications, Inc.
Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets Adjusted for the Adoption of the New Revenue Standard (ASC 606) on a Fully Retrospective Basis

 
Vocera Communications, Inc.
Condensed Consolidated Statements of Operations Adjusted for the Adoption of the New Revenue Standard
(In Thousands, Except Per Share Amounts)
(Unaudited)
 
    As Adjusted     As Reported     Change
Year Ended December 31, 2017     2016 2017     2016 2017     2016
Revenue            
Product revenue
Devices $ 61,508 $ 50,546 $ 60,869 $ 50,061 $ 639 $ 485
Software 29,660       23,627   27,996       20,606   1,664       3,021  
Total product 91,168       74,173   88,865       70,667   2,303       3,506  
Service revenue
Maintenance and support 52,370 43,410 52,542 43,438 (172 ) (28 )
Professional services and training 21,723       14,388   21,141       13,591   582       797  
Total service 74,093       57,798   73,683       57,029   410       769  
Total revenue 165,261       131,971   162,548       127,696   2,713       4,275  
Cost of revenue
Product 27,244 22,788 27,244 22,788 - -
Service 37,683       26,287   37,683       26,287   -       -  
Total cost of revenue 64,927       49,075   64,927       49,075   -       -  
Gross profit 100,334       82,896   97,621       78,621   2,713       4,275  
Operating expenses
Research and development 27,685 18,266 27,685 18,266 - -
Sales and marketing 60,107 51,274 59,986 52,811 121 (1,537 )
General and administrative 23,970       24,499   23,970       24,499   -       -  
Total operating expenses 111,762       94,039   111,641       95,576   121       (1,537 )
Income (loss) from operations (11,428 ) (11,143 ) (14,020 ) (16,955 ) 2,592 5,812
Interest income 604 684 604 684 - -
Other income (expense), net (42 )     (467 ) (42 )     (467 ) -       -  
Income (loss) before income taxes (10,866 ) (10,926 ) (13,458 ) (16,738 ) 2,592 5,812
Provision for income taxes (759 )     (529 ) (759 )     (529 ) -       -  
Net income (loss) $ (11,625 )     $ (11,455 ) $ (14,217 )     $ (17,267 ) $ 2,592       $ 5,812  
 
Net income (loss) per share
Basic and diluted $ (0.41 ) $ (0.43 ) $ (0.50 ) $ (0.64 ) $ 0.09 $ 0.21
Weighted average shares used to compute net income (loss) per share
Basic and diluted 28,655       26,859   28,655       26,859   28,655       26,859  
 
 
Vocera Communications, Inc.
Condensed Consolidated Statements of Operations Adjusted for the Adoption of the New Revenue Standard
 
    Q1 2017     Q2 2017     Q3 2017     Q4 2017

 

As     As     As     As     As     As     As     As    

(In Thousands, Except Per Share Amounts, Unaudited)

Adjusted     Reported     Change Adjusted     Reported     Change Adjusted     Reported     Change Adjusted     Reported     Change
Revenue
Product revenue
Devices $ 14,013 $ 14,121 $ (108 ) $ 14,992 $ 14,837 $ 155 $ 16,421 $ 16,084 $ 337 $ 16,082 $ 15,827 $ 255
Software 5,997       5,912       85   5,948       5,821       127   9,489       7,165       2,324   8,226       9,098       (872 )
Total product 20,010       20,033       (23 ) 20,940       20,658       282   25,910       23,249       2,661   24,308       24,925       (617 )
Service revenue
Maintenance and support 12,006 11,852 154 12,679 12,583 96 13,834 13,746 88 13,851 14,361 (510 )
Professional services and training 4,523       4,410       113   5,883       5,209       674   5,554       5,305       249   5,763       6,217       (454 )
Total service 16,529       16,262       267   18,562       17,792       770   19,388       19,051       337   19,614       20,578       (964 )
Total revenue 36,539       36,295       244   39,502       38,450       1,052   45,298       42,300       2,998   43,922       45,503       (1,581 )
Cost of revenue
Product 6,409 6,409 - 6,807 6,807 - 7,208 7,208 - 6,820 6,820 -
Service 9,155       9,155       -   9,962       9,962       -   9,241       9,241       -   9,325       9,325       -  
Total cost of revenue 15,564       15,564       -   16,769       16,769       -   16,449       16,449       -   16,145       16,145       -  
Gross profit 20,975       20,731       244   22,733       21,681       1,052   28,849       25,851       2,998   27,777       29,358       (1,581 )
Operating expenses
Research and development 6,929 6,929 - 7,371 7,371 - 6,644 6,644 - 6,741 6,741 -
Sales and marketing 14,922 14,581 341 15,246 15,377 (131 ) 14,840 15,831 (991 ) 15,099 14,197 902
General and administrative 5,695       5,695       -   5,984       5,984       -   6,088       6,088       -   6,203       6,203       -  
Total operating expenses 27,546       27,205       341   28,601       28,732       (131 ) 27,572       28,563       (991 ) 28,043       27,141       902  
Income (loss) from operations (6,571 ) (6,474 ) (97 ) (5,868 ) (7,051 ) 1,183 1,277 (2,712 ) 3,989 (266 ) 2,217 (2,483 )
Interest income 105 105 - 128 128 - 177 177 - 194 194 -
Other income (expense), net 109       109       -   (67 )     (67 )     -   (41 )     (41 )     -   (43 )     (43 )     -  
Income (loss) before income taxes (6,357 ) (6,260 ) (97 ) (5,807 ) (6,990 ) 1,183 1,413 (2,576 ) 3,989 (115 ) 2,368 (2,483 )
Provision for income taxes (380 )     (380 )     -   (361 )     (361 )     -   (309 )     (309 )     -   291       291       -  
Net income (loss) $ (6,737 )     $ (6,640 )     $ (97 ) $ (6,168 )     $ (7,351 )     $ 1,183   $ 1,104       $ (2,885 )     $ 3,989   $ 176       $ 2,659       $ (2,483 )
 
Net income (loss) per share
Basic $ (0.24 ) $ (0.24 ) $ - $ (0.22 ) $ (0.26 ) $ 0.04 $ 0.04 $ (0.10 ) $ 0.14 $ 0.01 $ 0.09 $ (0.08 )
Diluted $ (0.24 ) $ (0.24 ) $ - $ (0.22 ) $ (0.26 ) $ 0.04 $ 0.04 $ (0.10 ) $ 0.13 $ 0.01 $ 0.09 $ (0.08 )
Weighted average shares used to compute net income (loss) per share
Basic 27,751       27,751       27,751   28,422       28,422       28,422   29,130       29,130       29,130   29,317       29,317       29,317  
Diluted 27,751       27,751       27,751   28,422       28,422       28,422   30,473       29,130       30,473   30,704       30,704       30,704  
 
 
Vocera Communications, Inc.
Condensed Consolidated Balance Sheets Adjusted for the Adoption of the New Revenue Standard
(In Thousands, Unaudited)
 
    As Adjusted     As Reported     Change
As of December 31,     2017     2016 2017     2016 2017     2016
Assets            
Current assets
Cash and cash equivalents $ 28,726 $ 35,033 $ 28,726 $ 35,033 $ - $ -
Short-term investments 52,507 39,033 52,507 39,033 - -
Accounts receivable, net 35,105 24,142 35,105 24,142 - -
Other receivables 1,331 1,211 1,170 1,211 161 -
Inventories 2,815 4,556 2,815 4,556 - -
Prepaid expenses and other current assets 3,957       3,364   3,957       3,364   -       -  
Total current assets 124,441 107,339 124,280 107,339 161 -
Property and equipment, net 5,751 5,894 5,751 5,894 - -
Intangible assets, net 13,567 18,200 13,567 18,200 - -
Goodwill 49,246 49,246 49,246 49,246 - -
Other long-term assets 11,968       11,816   1,667       1,394   10,301       10,422  
Total assets $ 204,973       $ 192,495   $ 194,511       $ 182,073   $ 10,462       $ 10,422  
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 2,678 $ 3,231 $ 2,678 $ 3,231 $ - $ -
Accrued payroll and other current liabilities 14,689 15,896 14,689 15,896 - -
Deferred revenue, current 41,516       38,247   47,276       43,845   (5,760 )     (5,598 )
Total current liabilities 58,883 57,374 64,643 62,972 (5,760 ) (5,598 )
Deferred revenue, long-term 14,417 11,523 16,438 11,155 (2,021 ) 368
Other long-term liabilities 4,455       4,505   4,455       4,505   -       -  
Total liabilities 77,755 73,402 85,536 78,632 (7,781 ) (5,230 )
Total stockholders' equity 127,218       119,093   108,975       103,441   18,243       15,652  
Total liabilities and stockholders' equity $ 204,973       $ 192,495   $ 194,511       $ 182,073   $ 10,462       $ 10,422  
 
 
Vocera Communications, Inc.

Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share and Adjusted EBITDA Adjusted for the Adoption of the New Revenue Standard

(In Thousands, Except Per Share Amounts)
(Unaudited)
 
    Year Ended December 31, 2017     Year Ended December 31, 2016
As     As     As     As    
      Adjusted     Reported     Change     Adjusted     Reported     Change
GAAP net income (loss) $ (11,625 ) $ (14,217 ) $ 2,592 $ (11,455 ) $ (17,267 ) $ 5,812
Add back:
Stock compensation expense 18,196 18,196 - 12,035 12,035 -
Acquisition related expenses 1,269 1,269 - 5,822 5,822 -
Interest income (549 ) (549 ) - (627 ) (627 ) -
Depreciation and amortization expense 7,643 7,643 - 3,770 3,770 -
Provision for income taxes 759       759       -   529       529       -
Non-GAAP adjusted EBITDA $ 15,693       $ 13,101       $ 2,592   $ 10,074       $ 4,262       $ 5,812
 
GAAP net income (loss) $ (11,625 ) $ (14,217 ) $ 2,592 $ (11,455 ) $ (17,267 ) $ 5,812
Add back:
Stock compensation expense 18,196 18,196 - 12,035 12,035 -
Intangible amortization 4,633 4,633 - 1,375 1,375 -
Acquisition related expenses 1,269       1,269       -   5,822       5,822       -
Non-GAAP net income $ 12,473       $ 9,881       $ 2,592   $ 7,777       $ 1,965       $ 5,812
Net income per share
Basic $ 0.44 $ 0.34 $ 0.09 $ 0.29 $ 0.07 $ 0.22
Diluted $ 0.41 $ 0.33 $ 0.09 $ 0.28 $ 0.07 $ 0.21
Weighted average shares used to compute net income per share
Basic 28,655 28,655 28,655 26,859 26,859 26,859
Diluted 30,268 30,268 30,268 28,126 28,126 28,126
 
 
Vocera Communications, Inc.
Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share and Adjusted EBITDA Adjusted for the Adoption of the New Revenue Standard
(In Thousands, Except Per Share Amounts)
(Unaudited)
 
    Q1 2017     Q2 2017     Q3 2017     Q4 2017
As     As     As     As     As     As     As     As    
      Adjusted     Reported     Change Adjusted     Reported     Change Adjusted     Reported     Change Adjusted     Reported     Change
GAAP net income (loss) $ (6,737 ) $ (6,640 ) $ (97 ) $ (6,168 ) $ (7,351 ) $ 1,183 $ 1,104 $ (2,885 ) $ 3,989 $ 176 $ 2,659 $ (2,483 )
Add back:
Stock compensation expense 3,583 3,583 - 4,903 4,903 - 4,718 4,718 - 4,992 4,992 -
Acquisition related expenses 410 410 - 312 312 - 287 287 - 260 260 -
Interest income (92 ) (92 ) - (117 ) (117 ) - (162 ) (162 ) - (178 ) (178 ) -
Depreciation and amortization expense 1,804 1,804 - 1,987 1,987 - 1,964 1,964 - 1,888 1,888 -
Provision for income taxes 380       380       -   361       361       -   309       309       -   (291 )     (291 )     -  
Non-GAAP adjusted EBITDA $ (652 )     $ (555 )     $ (97 ) $ 1,278       $ 95       $ 1,183   $ 8,220       $ 4,231       $ 3,989   $ 6,847       $ 9,330       $ (2,483 )
 
GAAP net income (loss) $ (6,737 ) $ (6,640 ) $ (97 ) $ (6,168 ) $ (7,351 ) $ 1,183 $ 1,104 $ (2,885 ) $ 3,989 $ 176 $ 2,659 $ (2,483 )
Add back:
Stock compensation expense 3,583 3,583 - 4,903 4,903 - 4,718 4,718 - 4,992 4,992 -
Intangible amortization 1,132 1,132 - 1,241 1,241 - 1,169 1,169 - 1,091 1,091 -
Acquisition related expenses 410       410       -   312       312       -   287       287       -   260       260       -  
Non-GAAP net income $ (1,612 )     $ (1,515 )     $ (97 ) $ 288       $ (895 )     $ 1,183   $ 7,278       $ 3,289       $ 3,989   $ 6,519       $ 9,002       $ (2,483 )
Net income per share
Basic $ (0.06 ) $ (0.05 ) $ - $ 0.01 $ (0.03 ) $ 0.04 $ 0.25 $ 0.11 $ 0.14 $ 0.22 $ 0.31 $ (0.08 )
Diluted $ (0.06 ) $ (0.05 ) $ - $ 0.01 $ (0.03 ) $ 0.04 $ 0.24 $ 0.11 $ 0.13 $ 0.21 $ 0.29 $ (0.08 )
Weighted average shares used to compute net income per share
Basic 27,751 27,751 27,751 28,422 28,422 28,422 29,130 29,130 29,130 29,317 29,317 29,317
Diluted 27,751 27,751 27,751 29,806 28,422 29,806 30,473 30,473 30,473 30,704 30,704 30,704
 


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