SolarWinds Announces Third Quarter 2012 Results
(firmenpresse) - AUSTIN, TX -- (Marketwire) -- 10/25/12 -- SolarWinds® (NYSE: SWI), a leading provider of powerful and affordable , today reported results for its third quarter ended September 30, 2012.
Commercial new license sales grew 39% year-over-year, an acceleration of growth from the second quarter.
Record total revenue for the third quarter of $71.7 million, representing 33% year-over-year growth.
Record license revenue for the third quarter of $34.0 million, representing 33% year-over-year growth.
GAAP operating income of $31.5 million and non-GAAP operating income of $39.6 million, or a non-GAAP operating margin for the third quarter of 55%.
GAAP diluted earnings per share of $0.29 and non-GAAP diluted earnings per share of $0.37.
SolarWinds reported record total revenue for the third quarter of 2012 of $71.7 million, a 33% increase over total revenue for the third quarter of 2011. License revenue was a record $34.0 million for the third quarter of 2012 also representing a 33% increase over license revenue for the third quarter of 2011. Maintenance revenue was a record $37.7 million for the third quarter of 2012, representing a 33% increase over maintenance revenue for the third quarter of 2011.
On a GAAP basis, diluted earnings per share were $0.29 for the third quarter of 2012 compared to $0.28 for the third quarter of 2011. Non-GAAP diluted earnings per share were $0.37 for the third quarter of 2012 compared to $0.31 for the third quarter of 2011.
Net cash provided by operating activities was $35.0 million for the third quarter of 2012 compared to $32.5 million for the third quarter of 2011, representing a year-over-year increase of 8%. Free cash flow was $37.2 million for the third quarter of 2012 compared to $32.4 million for the third quarter of 2011, representing a year-over-year increase of 15%. Cash, cash equivalents, and investments at the end of the third quarter of 2012 were $208.5 million, an increase of $12.3 million from the end of the second quarter of 2012. During the quarter, SolarWinds used approximately $28 million in cash related to acquisitions.
The financial results included in this press release are preliminary and pending final review by the company and its external auditors. Financial results will not be final until SolarWinds files its quarterly report on Form 10-Q for the period. Information about SolarWinds' use of these non-GAAP financial measures is provided below under "Non-GAAP Financial Measures."
"The third quarter marked another strong performance by the entire SolarWinds team. Our results reflect the growing awareness we believe that we are building among IT professionals and the high value our wide range of IT management products provide to customers. Over the past two and a half years, our teams have focused on creating meaningful connections between our products and the IT professionals we serve. We have expanded our product family with products designed to easily and affordably address the problems IT professionals face every day while working to maintain their businesses' critical systems. We believe that this focus has made us a trusted partner to IT professionals worldwide and contributed to SolarWinds recently being named the Best Small Company in America by Forbes Magazine," said Kevin Thompson, SolarWinds' President and Chief Executive Officer.
"Drilling into results for the third quarter, our US Federal business had a solid growth quarter, supported by the investments we have made in expanding awareness within the Federal government. Our commercial business continued to show strong results across each of the major geographic regions we serve delivering an acceleration in growth as compared to the second quarter. And, despite the ongoing difficult macroeconomic environment, our EMEA business produced the strongest growth overall within our global business, demonstrating the compelling value proposition we believe we provide to our users," added Thompson.
SolarWinds' business highlights during the third quarter of 2012 include:
SolarWinds continued to expand its relevance with IT professionals through the release of . The release added one of the industry's most affordable and easy-to-use Web-based products for solving problems like IT-specific ticketing, change management, and asset management, which adds to the list of IT management issues SolarWinds addresses.
SolarWinds also made significant investments in its extensive portfolio of network management products. With the release of SolarWinds added an easy-to-use, multi-vendor product for firewall management. In keeping with the SolarWinds tradition, SolarWinds FSM is one of the most affordable firewall analytics and management solutions available. SolarWinds also released , formerly known as SolarWinds IP SLA, which addresses the increasing need of IT pros for an affordable, easy-to-use tool for VoIP performance monitoring and proactive WAN performance analysis.
SolarWinds launched a fully featured, localized Japanese website during the third quarter. The is part of SolarWinds' ongoing strategy to become the top choice of Japanese IT professionals for IT management software. During the quarter, SolarWinds also released the Japanese version of SolarWinds NetFlow Traffic Analyzer, extending the network management functionality available to the company's Japanese-speaking users.
As part of its ongoing efforts to support the IT community through relevant and valuable content, SolarWinds continued its expansion of the thwack® online community for IT professionals. These enhancements included the , a new resource to gain and share information on the latest Microsoft® and third party updates, as well as valuable content to help IT professionals improve their job performance and knowledge.
"Driven by our solid third quarter results, we are raising our full year outlook for revenue, margins, and earnings per share. Our third quarter results continued to reflect the success of the focused investments we have made in our business to expand our IT management market opportunity, while leveraging SolarWinds' unique business model. In the process, we generated the highest non-GAAP operating margin in three years, overcame the dilutive impact of two acquisitions, and demonstrated that high growth and profitability can go hand-in-hand," said Mike Berry, SolarWinds' Chief Financial Officer.
As of October 25, 2012, SolarWinds is providing its financial outlook for its fourth quarter and full year of 2012. The financial information below represents forward-looking non-GAAP financial information, including an estimate of non-GAAP operating income as a percentage of revenue, and non-GAAP diluted earnings per share, for the fourth quarter of 2012 and for the full year 2012. These non-GAAP financial measures exclude, among other items mentioned below, stock-based compensation expense and related employer-paid payroll taxes. SolarWinds cannot reasonably estimate the expected stock-based compensation expense and related employer-paid payroll taxes for these future periods as the amounts depend upon such factors as the future price of SolarWinds' stock for purposes of computation. In addition, costs related to non-recurring items and acquisitions are not something that SolarWinds can estimate because they are a function of what non-recurring items and acquisitions, if any, occur and the kind of costs incurred in connection with any such non-recurring items or acquisitions.
SolarWinds' management currently expects to achieve the following results for the fourth quarter of 2012:
Total revenue in the range of $69.3-$70.8 million, or 25% to 27% growth over the fourth quarter of 2011.
Non-GAAP operating income representing 50%-51% of revenue.
Non-GAAP diluted earnings per share of $0.31-$0.33.
Weighted average shares outstanding of approximately 77.0 million.
SolarWinds' management is increasing its annual outlook and currently expects to achieve the following results for the full year 2012:
Total 2012 revenue in the range of $264.7-$266.2 million, or 33% to 34% year-over-year growth.
Non-GAAP operating income for the full year representing approximately 53% of revenue.
Non-GAAP diluted earnings per share of $1.31-$1.32.
Weighted average shares outstanding of approximately 76.5 million.
In conjunction with this announcement, SolarWinds will host a conference call today to discuss its financial results and other business at 8:00am CT (9:00am ET/6:00am PT). A live webcast of the event, including any supplemental information, will be available on the SolarWinds Investor Relations website at . A live dial-in will be available domestically at 888-339-3482 and internationally at +1-719-325-2271. To access the live call, please dial in 5-10 minutes before the scheduled start time. A replay of the webcast will be available on a temporary basis shortly after the event on the SolarWinds Investor Relations website.
This press release contains "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including SolarWinds' financial outlook. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as "believe," "continue," "expect," or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the inability to generate significant volumes of sales leads from Internet search engines, marketing campaigns and traffic to our websites; (b) the possibility that general economic conditions or uncertainty cause information technology spending to be reduced or purchasing decisions to be delayed; (c) the presence or absence of occasional large customer orders, including in particular those placed by the U.S. federal government; (d) the inability to increase sales to existing customers and to attract new customers; (e) SolarWinds' ability to successfully identify, complete, and integrate acquisitions; (f) the timing and success of new product introductions and product upgrades by SolarWinds or its competitors; (g) potential foreign exchange gains and losses related to expenses and sales denominated in currencies other than the functional currency of an associated entity; and (h) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the Form 10-Q that SolarWinds anticipates filing on or before November 9, 2012. All information provided in this release is as of the date hereof and SolarWinds undertakes no duty to update this information except as required by law.
In addition to disclosing financial measures prepared in accordance with GAAP, this press release and the accompanying tables contain certain non-GAAP financial measures. The tables below set forth a reconciliation of each of these non-GAAP measures to a GAAP financial measure that we consider to be most comparable. SolarWinds believes that each of these non-GAAP financial measures provides meaningful supplemental information regarding its performance by excluding certain items that may not be indicative of its core business operations. SolarWinds' management and Board of Directors use certain of these non-GAAP measures to assess operational performance, allocate resources, prepare annual budgets, and determine employee incentive compensation. Accordingly, these measures may provide helpful insight to investors into the motivation and decision-making of management in operating the business. SolarWinds considers free cash flow also to be a liquidity measure that provides important information regarding the cash generated by the business after the purchase of property and equipment that can then be used for, among other things, strategic acquisitions and investments in the business, stock repurchases and funding ongoing operations.
SolarWinds also believes that these non-GAAP financial measures are used by investors and security analysts to (a) compare and evaluate its performance from period to period and (b) compare its performance to those of its competitors. These non-GAAP measures exclude certain items that can vary substantially from company to company depending upon their financing and accounting methods, the book value of their assets, their capital structures and the method by which their assets were acquired.
There are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income. In addition, free cash flow does not represent the total increase or decrease in the cash balance for the period.
As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, the most comparable GAAP measures. SolarWinds' management and Board of Directors compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are set forth in the tables below.
SolarWinds (NYSE: SWI) provides powerful and affordable IT management software to customers worldwide from Fortune 500 enterprises to small businesses. In all of our market areas, our approach is consistent. We focus exclusively on IT Pros and strive to eliminate the complexity that they have been forced to accept from traditional enterprise software vendors. SolarWinds delivers on this commitment with unexpected simplicity through products that are easy to find, buy, use and maintain while providing the power to address any IT management problem on any scale. Our solutions are rooted in our deep connection to our user base, which interacts in our online community to solve problems, share technology and best practices, and directly participate in our product development process. Learn more today at .
SolarWinds, the SolarWinds logo, thwack, Web Help Desk, and PatchZone are exclusive trademarks of SolarWinds, are registered with the U.S. patent and trademark office, and may be registered or pending registration in other countries, or may be common law marks or registered or pending registration in the United States or in other countries. All other trademarks or registered trademarks mentioned herein are used for identification purposes only and may be trademarks or registered trademarks of their respective companies.
Copyright © 2012 SolarWinds Worldwide, LLC. All rights reserved.
Dave Hafner
Phone: 512.682.9867
Tiffany Nels
Phone: 512.682.9545
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Datum: 25.10.2012 - 12:00 Uhr
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