UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 1, 2010
HAEMONETICS CORPORATION
(Exact name of registrant as specified in its charter)
| Massachusetts (State or other jurisdiction of incorporation) |
1-14041 (Commission File Number) |
04-2882273 (I.R.S. Employer Identification No.) |
| 400 Wood Road (Address of principal executive offices) |
02184 (Zip Code) |
Registrant’s telephone number, including area code 781-848-7100
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 1, 2010, Haemonetics Corporation (the “Company”) issued a press release announcing
financial results for the second quarter ended October 2, 2010. A copy of the release is furnished
with this report as exhibit 99.1.
The information in this current report on Form 8-K and the exhibit attached hereto shall not be
deemed “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the
“Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed
incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act,
regardless of any general incorporation language in such filing.
Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1: Press Release of Haemonetics Corporation dated November 1, 2010 announcing financial results
for the second quarter ended October 2, 2010.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HAEMONETICS CORPORATION (Registrant) |
||||
| Date: November 1, 2010 | /s/ Christopher Lindop | |||
| Christopher Lindop, Vice President | ||||
| and Chief Financial Officer | ||||
3
EXHIBIT INDEX
| 99.1 | Press Release issued by Haemonetics Corporation on November 1, 2010. |
4
Exhibit 99.1
| FOR RELEASE: | CONTACT: | |||
Date:
|
November 1, 2010 | Bryanne Salmon | ||
Time:
|
8:00 am Eastern | Tel. (781) 356-9613 | ||
| bsalmon@haemonetics.com | ||||
Haemonetics Reports Adjusted Earnings per Share of $0.80 for Q2 of Fiscal 11
Company Resets Revenue Growth Target to 6-9% and Increases Full Year Earnings Guidance
Company Resets Revenue Growth Target to 6-9% and Increases Full Year Earnings Guidance
Braintree, MA, November 1, 2010— Haemonetics Corporation (NYSE: HAE) today reported GAAP net
revenues of $166.8 million, up 6%, net income of $21.3 million, up 18%, and earnings per share of
$0.85, up 23%. Excluding transformation costs and contingent consideration income in fiscal 11,
adjusted second quarter net income was $20.1 million, up 11%, and adjusted earnings per share was
$0.80, up 16%. In constant currency, revenue was up 7%, adjusted net income was up 12% and adjusted
earnings per share were up 16%. 1
Year to date, Haemonetics reported GAAP net revenues of $330 million, up 6%, net income of $39.3
million, up 9%, and earnings per share of $1.54, up 12%. Excluding transformation costs and
contingent consideration income in fiscal 11, adjusted year to date net income was $39.1 million,
up 8%, and adjusted earnings per share was $1.54, up 12%. In constant currency, revenue was up 7%,
adjusted net income was up 20% and adjusted earnings per share were up 23%. As expected first
quarter currency headwinds moderated in the second quarter. 1
In addition to revenue and earnings growth, in the quarter Haemonetics reported adjusted gross
margin of 52.6%, up 110 basis points, and adjusted operating margin of 16.9%, down 30 basis points
but in line with full year targets. The Company managed adjusted operating expenses to $59.6
million, up $5.7 million from levels in Q2 of fiscal 10. Incremental spending of more than $4
million is associated with the Company’s recent acquisitions. 1
The Company revised its full year guidance for revenue growth from 9-12% to 6-9%, and its full year
guidance for adjusted operating income growth from 11-14% to 10-12%.
The Company increased its full year guidance for adjusted earnings per share from a range of $3.15
to $3.25 to a range of $3.18 to $3.28. 1
Brian Concannon, Haemonetics’ President and CEO, said” We continue to make great progress with
IMPACT™ selling, our branded approach to bringing blood management solutions to our customers.
However, slower than expected recovery in Plasma collections and lower surgical procedure volumes
which continue to affect our hospital and blood center customers, are causing us to reevaluate our
near term expectations for revenue growth.”
STRATEGIC AND SEGMENT GROWTH HIGHLIGHTS
Haemonetics continues to make progress expanding its business. The Company reported the following
highlights:
| • | 28 additional IMPACT customers in Q2 fiscal 11 bringing the total number of IMPACT customers to 118, driving acceleration in key product lines evidenced by a 24% Q2 growth rate for TEG® Thrombelastograph® Hemostasis Analyzer disposables. | ||
| • | Platelets grew more than 6%, both in the quarter and year to date, reflecting strong double digit growth in the Company’s emerging markets business units. | ||
| • | In the quarter equipment revenue grew 32% year over year. Equipment sales are a leading indicator of disposables revenue. |
Haemonetics Corporation • 400 Wood Road • Braintree, MA 02184 USA
| • | The Global Med acquisition integration is proceeding well against its planned schedule and operating income targets. |
Mr. Concannon added “We’ve made excellent progress against our goals for blood management with 118
IMPACT accounts by the end of the second quarter. In these challenging economic times, we are
implementing blood management solutions that reduce costs and improve clinical outcomes for our
customers. Year to date revenue from our North American hospital IMPACT accounts was up 64% led by
double digit growth in TEG and OrthoPAT®.”
As noted, Haemonetics’ second quarter fiscal 11 reported revenues were $166.8 million, up 6%.
Reported revenues break down as follows:
Plasma disposables revenue was $56.5 million for the quarter, down 5%, and $112.4 million year to
date, down 5%. Haemonetics expects its plasma business to return to mid single digit growth in Q3,
ramping to low double digit growth in Q4, with full year Plasma revenue growth in a range of
0-3%.
Platelet disposables revenue was $39.7 million for the quarter, up 7%, and $76 million year to
date, up 6%. The platelet business benefited from strong sales in our emerging markets.
Haemonetics continues to expect full year Platelet revenue growth of 0-2%.
Red cell disposables revenue was $11.3 million for the quarter, down 2%, and $22.6 million year to
date, down 3%. Revenue declined due to decreased demand for red cells as a result of declining
surgical volumes. Haemonetics continues to expect full year Red Cell disposable revenue growth
within a range of negative 2% to a 1% increase.
Surgical disposables revenue was $16 million for the quarter, down 4%, and $32.4 million year to
date, down 5%. The surgical business was adversely impacted by trends in surgical volumes.
Haemonetics now expects full year revenue growth within a range of negative 2% to a 1% increase.
OrthoPAT orthopedic perioperative autotransfusion system disposables revenue was $8.3 million for
the quarter, down 4%, and flat at $17.2 million year to date. OrthoPAT sales to IMPACT accounts
grew by 10% in the quarter and 36% year to date. Haemonetics now expects full year revenue growth
within a range of 1-3%.
Diagnostic disposables revenue was $4.6 million for the quarter, up 24% and $9.4 million year to
date, also up 24%. Revenues related to the TEG Thrombelastograph® Hemostasis Analyzer
business are accelerating driven by the Company’s IMPACT accounts. Haemonetics expects full year
revenue growth of approximately 25%.
Software Solutions revenue was $16.1 million for the quarter, up 77% and $32.6million year to date,
up 86%. Software Solutions growth was primarily impacted by our Global Med acquisition. Organic
software growth year to date was 2%. Haemonetics expects full year revenue growth of approximately
95%.
Equipment revenue was $14.2 million for the quarter, up 32%, and $27.2 million year to date, up
26%. Equipment growth was impacted by the SEBRA® acquisition. Organic equipment growth
year to date was 12%. Haemonetics expects full year revenue growth of 6-11%,
Haemonetics reported growth in all geographies for the quarter and year to date. In the quarter,
North American sales were up 5%, European sales were up 4%, Japanese sales were up 3%, and Asian
sales were up 27%. Year to date, North America sales were up 5%, European sales were up 4%,
Japanese sales were up 3% and Asian sales were up 28%.
Haemonetics Corporation • 400 Wood Road • Braintree, MA 02184 USA
CONFERENCE CALL
Haemonetics will host a webcast on Monday, November 1st at 10:00am Eastern to discuss
these results. Interested parties can participate at
http://phx.corporate-ir.net/playerlink.zhtml?c=72118&s=wm&e=3403020
Haemonetics (NYSE: HAE) is a global healthcare company dedicated to providing innovative blood
management solutions for our customers. Together, our devices and consumables, information
technology platforms, and consulting services deliver a suite of business solutions to help our
customers improve clinical outcomes and reduce the cost of healthcare for blood collectors,
hospitals, and patients around the world. Our technologies address important medical markets:
blood and plasma component collection, the surgical suite, and hospital transfusion services. To
learn more about Haemonetics, visit our web site at http://www.haemonetics.com.
This release contains forward-looking statements that involve risks and uncertainties, including
technological advances in the medical field and standards for transfusion medicine and our ability
to successfully implement products that incorporate such advances and standards, product demand,
market acceptance, regulatory uncertainties, , that affect Haemonetics or our customers, the effect
of economic and political conditions, the impact of competitive products and pricing, blood product
reimbursement policies and practices, foreign currency exchange rates, changes in customers’
ordering patterns, the effect of industry consolidation as seen in the plasma market, the effect of
communicable diseases and the effect of uncertainties in markets outside the U.S. (including Europe
and Asia) in which we operate and other risks detailed in the Company’s filings with the Securities
and Exchange Commission. The foregoing list should not be construed as exhaustive. The
forward-looking statements are based on estimates and assumptions made by management of the Company
and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual
results and experience could differ materially from the forward-looking statements.
| 1 | A reconciliation of GAAP to adjusted and constant currency financial results is included at the end of the financial sections of this press release as well as on the web at http://phx.corporate-ir.net/phoenix.zhtml?c=72118&p=irol-news&nyo=0 In the second quarter of fiscal 11, Haemonetics incurred $1.1 million in pre-tax transformation and integration costs and realized $1.9 million in contingent consideration income. Haemonetics incurred no restructuring costs in the second quarter of fiscal 10. |
Haemonetics Corporation • 400 Wood Road • Braintree, MA 02184 USA
Haemonetics Corporation Financial Summary
(Unaudited data in thousands, except per share data)
Consolidated Statements of Income for the Second Quarter of FY11 and FY10
(Unaudited data in thousands, except per share data)
Consolidated Statements of Income for the Second Quarter of FY11 and FY10
| 10/2/2010 | 9/26/2009 | % Inc/(Dec) | ||||||||||
| As Reported | As Reported | vs Prior Year | ||||||||||
NET REVENUES |
$ | 166,833 | $ | 157,070 | 6.2 | % | ||||||
Gross profit |
87,755 | 80,967 | 8.4 | % | ||||||||
R&D |
7,954 | 6,475 | 22.8 | % | ||||||||
S,G&A |
52,790 | 47,469 | 11.2 | % | ||||||||
Contingent consideration income |
(1,894 | ) | — | — | ||||||||
Operating expenses |
58,850 | 53,944 | 9.1 | % | ||||||||
Operating income |
28,905 | 27,023 | 7.0 | % | ||||||||
Interest expense |
(23 | ) | (255 | ) | (91.0 | %) | ||||||
Interest income |
493 | 103 | 378.6 | % | ||||||||
Other (expense)/income, net |
(216 | ) | (801 | ) | (73.1 | %) | ||||||
Income before taxes |
29,159 | 26,070 | 11.9 | % | ||||||||
Tax expense |
7,821 | 8,020 | (2.5 | %) | ||||||||
NET INCOME |
$ | 21,338 | $ | 18,050 | 18.2 | % | ||||||
Net income per common share
assuming dilution |
$ | 0.85 | $ | 0.69 | 23.3 | % | ||||||
Weighted average number of shares |
||||||||||||
Basic |
24,686 | 25,685 | ||||||||||
Diluted |
25,228 | 26,321 | ||||||||||
| Inc/(Dec) vs | ||||||||||||
| prior year | ||||||||||||
| profit margin % | ||||||||||||
Profit Margins: |
||||||||||||
Gross profit |
52.6 | % | 51.5 | % | 1.1 | % | ||||||
R&D |
4.8 | % | 4.1 | % | 0.6 | % | ||||||
S,G&A |
31.6 | % | 30.2 | % | 1.4 | % | ||||||
Operating income |
17.3 | % | 17.2 | % | 0.1 | % | ||||||
Income before taxes |
17.5 | % | 16.6 | % | 0.9 | % | ||||||
Net income |
12.8 | % | 11.5 | % | 1.3 | % | ||||||
Consolidated Statements of Income for Year-to-Date FY11 and FY10
| 10/2/2010 | 9/26/2009 | % Inc/(Dec) vs | ||||||||||
| As Reported | As Reported | Prior Year | ||||||||||
NET REVENUES |
$ | 329,872 | $ | 311,157 | 6.0 | % | ||||||
Gross profit |
174,217 | 163,910 | 6.3 | % | ||||||||
R&D |
15,875 | 13,252 | 19.8 | % | ||||||||
S,G&A |
107,144 | 97,308 | 10.1 | % | ||||||||
Contingent consideration
income |
(1,894 | ) | — | — | ||||||||
Operating expenses |
121,125 | 110,560 | 9.6 | % | ||||||||
Operating income |
53,092 | 53,350 | (0.5 | %) | ||||||||
Interest expense |
(40 | ) | (462 | ) | (91.3 | %) | ||||||
Interest income |
460 | 253 | 81.8 | % | ||||||||
Other (expense)/income, net |
22 | (1,135 | ) | (101.9 | %) | |||||||
Income before taxes |
53,534 | 52,006 | 2.9 | % | ||||||||
Tax expense |
14,277 | 15,882 | (10.1 | %) | ||||||||
NET INCOME |
$ | 39,257 | $ | 36,124 | 8.7 | % | ||||||
Net income per common share
assuming dilution |
$ | 1.54 | $ | 1.37 | 12.1 | % | ||||||
Weighted average number of shares |
||||||||||||
Basic |
24,913 | 25,671 | ||||||||||
Diluted |
25,459 | 26,273 | ||||||||||
| Inc/(Dec) vs | ||||||||||||
| prior year profit | ||||||||||||
| margin % | ||||||||||||
Profit Margins: |
||||||||||||
Gross profit |
52.8 | % | 52.7 | % | 0.1 | % | ||||||
R&D |
4.8 | % | 4.3 | % | 0.6 | % | ||||||
S,G&A |
32.5 | % | 31.3 | % | 1.2 | % | ||||||
Operating income |
16.1 | % | 17.1 | % | (1.1 | %) | ||||||
Income before taxes |
16.2 | % | 16.7 | % | (0.5 | %) | ||||||
Net income |
11.9 | % | 11.6 | % | 0.3 | % | ||||||
Revenue Analysis for the Second Quarter and Year-To-Date FY11 and FY10
| Second Quarter | ||||||||||||
| 10/2/2010 | 9/26/2009 | % Inc/(Dec) vs | ||||||||||
| As Reported | As Reported | Prior Year | ||||||||||
Revenues by geography |
||||||||||||
United States |
$ | 78,740 | $ | 74,856 | 5.2 | % | ||||||
International |
$ | 88,093 | $ | 82,214 | 7.2 | % | ||||||
Net revenues |
$ | 166,833 | $ | 157,070 | 6.2 | % | ||||||
Disposable revenues |
||||||||||||
Plasma disposables |
$ | 56,514 | $ | 59,424 | (4.9 | %) | ||||||
Blood bank disposables |
||||||||||||
Platelet |
$ | 39,746 | $ | 37,250 | 6.7 | % | ||||||
Red cell |
$ | 11,294 | $ | 11,484 | (1.7 | %) | ||||||
| $ | 51,040 | $ | 48,734 | 4.7 | % | |||||||
Hospital disposables |
||||||||||||
Surgical |
$ | 16,011 | $ | 16,631 | (3.7 | %) | ||||||
OrthoPAT |
$ | 8,281 | $ | 8,678 | (4.6 | %) | ||||||
Diagnostics |
$ | 4,647 | $ | 3,745 | 24.1 | % | ||||||
| $ | 28,939 | $ | 29,054 | (0.4 | %) | |||||||
Subtotal |
$ | 136,493 | $ | 137,212 | (0.5 | %) | ||||||
Software solutions |
$ | 16,125 | $ | 9,100 | 77.2 | % | ||||||
Equipment & other |
$ | 14,215 | $ | 10,758 | 32.1 | % | ||||||
Net revenues |
$ | 166,833 | $ | 157,070 | 6.2 | % | ||||||
| Six Months Ended | ||||||||||||
| 10/2/2010 | 9/26/2009 | % Inc/(Dec) vs | ||||||||||
| As Reported | As Reported | Prior Year | ||||||||||
Revenues by geography |
||||||||||||
United States |
$ | 158,049 | $ | 149,869 | 5.5 | % | ||||||
International |
$ | 171,823 | $ | 161,288 | 6.5 | % | ||||||
Net revenues |
$ | 329,872 | $ | 311,157 | 6.0 | % | ||||||
Disposable revenues |
||||||||||||
Plasma disposables |
$ | 112,431 | $ | 118,293 | (5.0 | %) | ||||||
Blood bank disposables |
||||||||||||
Platelet |
$ | 76,063 | $ | 71,557 | 6.3 | % | ||||||
Red cell |
$ | 22,608 | $ | 23,263 | (2.8 | %) | ||||||
| $ | 98,671 | $ | 94,820 | 4.1 | % | |||||||
Hospital disposables |
||||||||||||
Surgical |
$ | 32,362 | $ | 34,056 | (5.0 | %) | ||||||
OrthoPAT |
$ | 17,238 | $ | 17,262 | (0.1 | %) | ||||||
Diagnostics |
$ | 9,355 | $ | 7,556 | 23.8 | % | ||||||
| $ | 58,955 | $ | 58,874 | 0.1 | % | |||||||
Subtotal |
$ | 270,057 | $ | 271,987 | (0.7 | %) | ||||||
Software solutions |
$ | 32,578 | $ | 17,554 | 85.6 | % | ||||||
Equipment & other |
$ | 27,237 | $ | 21,616 | 26.0 | % | ||||||
Net revenues |
$ | 329,872 | $ | 311,157 | 6.0 | % | ||||||
Consolidated Balance Sheets
| Period ending | ||||||||
| 10/2/10 | 4/3/10 | |||||||
Assets |
||||||||
Cash & cash equivalents |
$ | 115,049 | $ | 141,562 | ||||
Accounts receivable, net |
121,767 | 118,684 | ||||||
Inventories, net |
86,009 | 79,953 | ||||||
Other current assets |
39,398 | 45,944 | ||||||
Total current assets |
362,223 | 386,143 | ||||||
Net PP&E |
157,297 | 153,298 | ||||||
Other assets |
218,217 | 221,219 | ||||||
Total assets |
$ | 737,737 | $ | 760,660 | ||||
| Period ending | ||||||||
| 10/2/10 | 4/3/10 | |||||||
Liabilities & Stockholders’
Equity |
||||||||
S/T debt & current maturities |
$ | 11,702 | $ | 16,062 | ||||
Other current liabilities |
102,049 | 120,435 | ||||||
Total current liabilities |
113,751 | 136,497 | ||||||
Long-term debt |
4,423 | 4,589 | ||||||
Other long-term liabilities |
25,171 | 26,450 | ||||||
Stockholders’ equity |
594,392 | 593,124 | ||||||
Total liabilities & equity |
$ | 737,737 | $ | 760,660 | ||||
Free Cash Flow Reconciliation
| Three Months Ended | ||||||||
| 10/2/10 | 9/26/09 | |||||||
GAAP cash flow from operations |
$ | 30,730 | $ | 35,773 | ||||
Capital expenditures |
(8,864 | ) | (11,676 | ) | ||||
Proceeds from sale of property, plant and equipment |
151 | 182 | ||||||
Net investment in property, plant and equipment |
(8,713 | ) | (11,494 | ) | ||||
Free cash flow after transformation and deal costs |
$ | 22,017 | $ | 24,279 | ||||
Transformation and deal costs |
2,325 | — | ||||||
| 2,325 | — | |||||||
Free cash flow before transformation and deal costs |
$ | 24,342 | $ | 24,279 | ||||
| Six Months Ended | ||||||||
| 10/2/10 | 9/26/09 | |||||||
GAAP cash flow from operations |
$ | 44,286 | $ | 61,479 | ||||
Capital expenditures |
(24,088 | ) | (32,880 | ) | ||||
Proceeds from sale of property, plant and equipment |
262 | 383 | ||||||
Net investment in property, plant and equipment |
(23,826 | ) | (32,497 | ) | ||||
Free cash flow |
$ | 20,460 | $ | 28,982 | ||||
Transformation and deal costs |
6,383 | — | ||||||
Global Med employment contracts |
2,122 | |||||||
| 8,505 | — | |||||||
Free cash flow before transformation and deal costs |
$ | 28,965 | $ | 28,982 | ||||
Haemonetics Corporation Financial Summary
Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures
Haemonetics has presented supplemental non-GAAP financial measures as part of this earnings
release. A reconciliation is provided below that reconciles each non-GAAP financial measure with
the most comparable GAAP measure. The presentation of non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, the most directly comparable GAAP measures.
There are material limitations to the usefulness of non-GAAP measures on a standalone basis,
including the lack of comparability to the GAAP financial results of other companies.
These measures are used by management to monitor the financial performance of the business, inform
business decision making, and forecast future results. Performance targets for management are
established based upon these non-GAAP measures. In the reconciliations below, we have removed
restructuring and deal integration costs from our GAAP expenses. Our restructuring is related to
the integration of Global Med Technologies and the repositioning of our sales force. We believe
this information is useful for investors because it allows for an evaluation of the Company with a
focus on the performance of our core operations.
Non-GAAP Gross Profit
The use of these non-GAAP measures allows management to monitor the level of total gross profits
without the costs of our business transformation. We establish our budgets, forecasts, and
performance targets on this basis.
Non-GAAP S,G&A and Non-GAAP Operating Expenses
The use of this non-GAAP measure allows management to monitor the ongoing level of spend that is
necessary to support the business in a period when we are not transforming our business or
completing an acquisition of in-process research and development. We establish our budgets,
forecasts, and performance targets excluding these costs.
Non-GAAP Operating Income and Non-GAAP Income before Income Taxes
The use of these non-GAAP measures allows management to monitor the level of operating and total
pre-tax profits without the costs of our business transformation. We establish our budgets,
forecasts, and performance targets on this basis.
Non-GAAP Net Income and Earnings per Share
The use of these non-GAAP measures allows management to monitor the level of net income and
earnings per share excluding both the costs of our business transformation, as well as any related
tax effects. We establish our budgets, forecasts, and performance targets on this basis.
Reconciliation of Non-GAAP Measures for the Second Quarter of FY11 and FY10
| 10/02/10 | 09/26/09 | |||||||
Non-GAAP gross profit |
||||||||
GAAP gross profit |
$ | 87,755 | $ | 80,967 | ||||
Restructuring costs |
— | — | ||||||
Non-GAAP gross profit |
$ | 87,755 | $ | 80,967 | ||||
Non-GAAP S,G&A |
||||||||
GAAP S,G&A |
$ | 52,790 | $ | 47,469 | ||||
Restructuring and deal integration costs |
(1,120 | ) | — | |||||
Non-GAAP S,G&A |
$ | 51,670 | $ | 47,469 | ||||
Non-GAAP operating expenses |
||||||||
GAAP operating expenses |
$ | 58,850 | $ | 53,944 | ||||
Restructuring and deal integration costs |
(1,120 | ) | — | |||||
Contingent consideration income |
1,894 | — | ||||||
Non-GAAP operating expenses |
$ | 59,624 | $ | 53,944 | ||||
Non-GAAP operating income |
||||||||
GAAP operating income |
$ | 28,905 | $ | 27,023 | ||||
Restructuring and deal integration costs |
1,120 | — | ||||||
Contingent consideration income |
(1,894 | ) | — | |||||
Non-GAAP operating income |
$ | 28,131 | $ | 27,023 | ||||
Non-GAAP income before taxes |
||||||||
GAAP income before taxes |
$ | 29,159 | $ | 26,070 | ||||
Restructuring and deal integration costs |
1,120 | — | ||||||
Contingent consideration income |
(1,894 | ) | — | |||||
Non-GAAP income before taxes |
$ | 28,385 | $ | 26,070 | ||||
Non-GAAP net income |
||||||||
GAAP net income |
$ | 21,338 | $ | 18,050 | ||||
Restructuring and deal integration costs |
1,120 | — | ||||||
Contingent consideration income |
(1,894 | ) | — | |||||
Tax benefit associated with non-GAAP items |
(467 | ) | — | |||||
Non-GAAP net income |
$ | 20,097 | $ | 18,050 | ||||
Non-GAAP net income per common share assuming dilution |
||||||||
GAAP net income per common share assuming dilution |
$ | 0.85 | $ | 0.69 | ||||
Non-GAAP items after tax per common share assuming dilution |
($0.05 | ) | $ | 0.00 | ||||
Non-GAAP net income per common share assuming dilution |
$ | 0.80 | $ | 0.69 | ||||
Presented below are additional Constant Currency performance measures. We measure different
components of our business at constant currency. We believe this information is useful for
investors because it allows for an evaluation of the Company without the effect of changes in
foreign exchange rates. These results convert our local foreign currency operating results to the
US Dollar at constant exchanage rates of $1.20 per Euro, and 110 Yen to the $1.00. They also
exclude the results of our foreign currency hedging program described in Note 7 to our
consolidated financial statements in our Form 10-K.
Non-GAAP revenues |
||||||||
GAAP revenue |
$ | 166,833 | $ | 157,070 | ||||
Foreign currency effects |
(9,736 | ) | (9,724 | ) | ||||
Non-GAAP revenue — constant currency |
$ | 157,097 | $ | 147,346 | ||||
Non-GAAP net income |
||||||||
Non-GAAP net income, adjusted for restructuring and deal integration
costs and contingent consideration income |
$ | 20,097 | $ | 18,050 | ||||
Foreign currency effects |
(3,799 | ) | (3,542 | ) | ||||
Income tax associated with foreign currency effects |
1,112 | 1,092 | ||||||
Non-GAAP net income — constant currency |
17,410 | 15,600 | ||||||
Non-GAAP net income per common share assuming dilution |
||||||||
Non-GAAP net income per common share assuming dilution, adjusted for
restructuring and deal integration costs and contingent
consideration income |
$ | 0.80 | $ | 0.69 | ||||
Foreign currency effects after tax per common share assuming dilution |
($0.11 | ) | ($0.09 | ) | ||||
Non-GAAP net income per common share assuming dilution — constant
currency |
$ | 0.69 | $ | 0.59 | ||||
Reconciliation of Non-GAAP Measures for FY11 and FY10
| 10/02/10 | 09/26/09 | |||||||
Non-GAAP gross profit |
||||||||
GAAP gross profit |
$ | 174,217 | $ | 163,910 | ||||
Restructuring costs |
— | — | ||||||
Non-GAAP gross profit |
$ | 174,217 | $ | 163,910 | ||||
Non-GAAP S,G&A |
||||||||
GAAP S,G&A |
$ | 107,144 | $ | 97,308 | ||||
Restructuring and deal integration costs |
(2,863 | ) | — | |||||
Non-GAAP S,G&A |
$ | 104,281 | $ | 97,308 | ||||
Non-GAAP operating expenses |
||||||||
GAAP operating expenses |
$ | 121,125 | $ | 110,560 | ||||
Restructuring and deal integration costs |
(2,863 | ) | — | |||||
Contingent consideration income |
1,894 | — | ||||||
Non-GAAP operating expenses |
$ | 120,156 | $ | 110,560 | ||||
Non-GAAP operating income |
||||||||
GAAP operating income |
$ | 53,092 | $ | 53,350 | ||||
Restructuring and deal integration costs |
2,863 | — | ||||||
Contingent consideration income |
(1,894 | ) | — | |||||
Non-GAAP operating income |
$ | 54,061 | $ | 53,350 | ||||
Non-GAAP income before taxes |
||||||||
GAAP income before taxes |
$ | 53,534 | $ | 52,006 | ||||
Restructuring and deal integration costs |
2,863 | — | ||||||
Contingent consideration income |
(1,894 | ) | — | |||||
Non-GAAP income before taxes |
$ | 54,503 | $ | 52,006 | ||||
Non-GAAP net income |
||||||||
GAAP net income |
$ | 39,257 | $ | 36,124 | ||||
Restructuring and deal integration costs |
2,863 | — | ||||||
Contingent consideration income |
(1,894 | ) | — | |||||
Tax benefit associated with non-GAAP items |
(1,067 | ) | — | |||||
Non-GAAP net income |
$ | 39,159 | $ | 36,124 | ||||
Non-GAAP net income per common share assuming dilution |
||||||||
GAAP net income per common share assuming dilution |
$ | 1.54 | $ | 1.37 | ||||
Non-GAAP items after tax per common share assuming dilution |
($0.00 | ) | $ | 0.00 | ||||
Non-GAAP net income per common share assuming dilution |
$ | 1.54 | $ | 1.37 | ||||
Presented below are additional Constant Currency performance measures. We measure different
components of our business at constant currency. We believe this information is useful for
investors because it allows for an evaluation of the Company without the effect of changes in
foreign exchange rates. These results convert our local foreign currency operating results to the
US Dollar at constant exchanage rates of $1.20 per Euro, and 110 Yen to the $1.00. They also
exclude the results of our foreign currency hedging program described in Note 7 to our
consolidated financial statements in our Form 10-K.
Non-GAAP revenues |
||||||||
GAAP revenue |
$ | 329,872 | $ | 311,157 | ||||
Foreign currency effects |
(16,419 | ) | (19,324 | ) | ||||
Non-GAAP revenue — constant currency |
$ | 313,453 | $ | 291,833 | ||||
Non-GAAP net income |
||||||||
Non-GAAP net income, adjusted for restructuring and deal integration
costs and contingent consideration income |
$ | 39,159 | $ | 36,124 | ||||
Foreign currency effects |
(7,087 | ) | (11,050 | ) | ||||
Income tax associated with foreign currency effects |
1,999 | 3,370 | ||||||
Non-GAAP net income — constant currency |
34,071 | 28,444 | ||||||
Non-GAAP net income per common share assuming dilution |
||||||||
Non-GAAP net income per common share assuming dilution, adjusted for
restructuring and deal integration costs and contingent
consideration income |
$ | 1.54 | $ | 1.37 | ||||
Foreign currency effects after tax per common share assuming dilution |
($0.20 | ) | ($0.29 | ) | ||||
Non-GAAP net income per common share assuming dilution — constant
currency |
$ | 1.34 | $ | 1.08 | ||||