Companies news of 2016-11-01 (page 1)

  • Monmouth Real Estate Investment Corporation Launches New Corporate Website
  • Celgene and IBM Watson Health Forge Collaboration Designed to Transform Patient Safety...
  • Match Group Reports Third Quarter 2016 ResultsAnnounces 22% Growth in Dating Revenue and...
  • Celgene and IBM Watson Health Forge Collaboration Designed to Transform Patient Safety...
  • TeleTech Announces New Dates For 2016 Third Quarter Earnings Release And Webcast Of...
  • Rogers Communications Inc. Announces US$500 Million Offering of Debt Securities
  • EnLink Midstream Reports Third Quarter 2016 Results, Refines Guidance, and Provides...
  • TriNet Announces Third Quarter Fiscal 2016 Results15% Growth in Total Revenues and 21%...
  • MDA reports third quarter 2016 results, declares quarterly dividend
  • Airborne Wireless Network Appoints Earle Olson, As Vice President of Industry Relations
  • ClearOne Announces Record Date for 2016 Fourth Quarter Dividend
  • OUTFRONT Media Chief Financial Officer Donald Shassian To Participate In The 2016 Wells...
  • Viavi Announces First Quarter Fiscal 2017 ResultsFirst Quarter- GAAP and Non-GAAP net...
  • Etsy, Inc. Reports 33% Revenue Growth in the Third Quarter 2016 and Raises Full Year...
  • Nimble Storage to Announce Third Quarter 2017 Financial Results on November 22, 2016
  • Sanmina Reports Fourth Quarter And Fiscal Year End Results
  • Blackbaud Announces 2016 Third Quarter Results
  • Jive Software Announces Third Quarter 2016 Results
  • Trimble Reports Third Quarter 2016 Results- Third Quarter 2016 Revenue $584.1 million-...
  • Palo Alto Networks to Announce Fiscal First Quarter 2017 Financial Results on Monday,...
  • YOU On Demand to Report Q3 2016 Results and Host Investor Update Call Monday, November 14
  • iSIGN Media and We Build Apps Announce the Signing of the Definitive Agreement Granting...
  • FARO Reports Third Quarter 2016 Financial Results
  • Flex Appoints Dr. Kal Patel as Senior Vice President of Digital Health
  • Weatherford Confirms it Remains within Debt Covenants
  • Regal Beloit Corporation To Present At Baird's 2016 Global Industrial Conference
  • ViaSat Sets November 8, 2016 for Q2 2017 Fiscal Year Earnings Conference Call and Webcast
  • Cavium Announces Financial Results for Q3 2016
  • Extreme Networks Reports First Quarter Fiscal Year 2017 Financial ResultsQ1 GAAP Revenue...



    Monmouth Real Estate Investment Corporation Launches New Corporate Website

    FREEHOLD, N.J., Nov. 1, 2016 /PRNewswire/ -- Monmouth Real Estate Investment Corporation , is pleased to announce that it has launched a new Corporate Website at www.mreic.reit. The new Corporate Website highlights the Company's best-in-class property portfolio, its cycle-tested business model and its long-term investment philosophy. The new Corporate Website affords the visitor a visual tour of Monmouth's state-of-the-art industrial assets and provides a seamless interface to a vast database of useful information to best serve the investment community.

    Susan M. Jordan, Vice of Investor Relations, stated, "In recognition of the transformative growth that Monmouth has achieved, we are proud to unveil a website that clearly depicts the many positive changes here. We encourage the investment community to visit our new site. Monmouth will soon be celebrating our 50(th) anniversary as a public REIT and we look forward to continuing to deliver enduring value to our shareholders for many years to come."

    Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the U.S. The Company specializes in single-tenant, net-leased industrial properties, subject to long-term leases, primarily to investment grade tenants. Monmouth Real Estate Investment Corporation is a fully integrated and self-managed real estate company, whose property portfolio consists of ninety-nine properties located in thirty states, containing a total of approximately 16.3 million rentable square feet. In addition, the Company owns a portfolio of REIT securities.

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/monmouth-real-estate-investment-corporation-launches-new-corporate-website-300355388.html

    Monmouth Real Estate Investment Corporation

    CONTACT: Susan M. Jordan, 732-577-9996

    Web site: http://mreic.com//




    Celgene and IBM Watson Health Forge Collaboration Designed to Transform Patient Safety Monitoring

    SUMMIT, N.J. and CAMBRIDGE, Mass., Nov. 1, 2016 /PRNewswire/ -- Celgene Corporation and IBM Watson Health today announced a collaboration to co-develop IBM Watson for Patient Safety, a new offering that aims to enhance pharmacovigilance methods used to collect, assess, monitor, and report adverse drug reactions. The new offering will run on the Watson Health Cloud.

    http://photos.prnewswire.com/prnvar/20090416/IBMLOGO

    The collaboration will combine Watson's cognitive computing ability with Celgene's deep history and experience in drug safety and risk management in order to create an outcome- and evidence-based drug safety decision support system for life science companies. Watson's cognitive computing engine continuously learns, so it is expected that Watson for Patient Safety will increasingly be able to help identify potential drug safety signals.

    Watson for Patient Safety is being developed as a first-of-its-kind, highly automated drug-safety offering designed to enable the rapid collection, collation and automated analysis of high volumes of data from diverse sources, including anonymized electronic medical records, medical claims databases and other healthcare information sources. Watson for Patient Safety will be designed to drive pharmaceutical companies' understanding of complex safety questions, and delivery of evidence-based insights to help support ongoing understanding of the safety profiles of drug products by stakeholders.

    This advanced approach is intended to help biopharmaceutical companies and other stakeholders to better manage and interpret large volumes of Individual Case Safety Reports (ICSRs) describing potential side effects associated with drug products. Across the biopharmaceutical industry these reports are increasing in volume and complexity as data sources grow and regulations evolve.

    "With this collaboration, we intend to create a paradigm shift in identifying patient safety data that we hope can be applied across the entire product lifecycle - from early development through to approved medicines," said John Freeman, MSc, JD, Corporate Vice President of Global Drug Safety and Risk Management for Celgene. "The new offering we are co-developing will bring the cognitive computing power of Watson and its growing view of clinical, research and social health data to bear on this critical healthcare challenge."

    "Celgene established one of the first risk management systems, and its commitment to pharmacovigilance continues with this collaboration," said Lauren O'Donnell, Vice President of Life Sciences, IBM Watson Health. "Together we look forward to creating a cognitive solution that can be applied across the industry to help benefit patients everywhere, leveraging our cloud platform."

    Watson for Patient Safety will be developed in phases, with the first module anticipated within the next year. Watson Health Cloud for Life Sciences Compliance offers a health-data enabled infrastructure and is designed to streamline GxP compliance.

    About Celgene

    Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases through next-generation solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. For more information, please visit www.celgene.com. Follow Celgene on Social Media: @Celgene, Pinterest, LinkedIn, Facebook and YouTube.

    About IBM Watson Health

    Watson is the first commercially available cognitive computing capability representing a new era in computing. The system, delivered through the cloud, analyzes high volumes of data, understands complex questions posed in natural language, and proposes evidence-based answers. Watson continuously learns, gaining in value and knowledge over time, from previous interactions. In April 2015, the company launched IBM Watson Health and the Watson Health Cloud platform. The new unit will help improve the ability of doctors, researchers and insurers to innovate by surfacing insights from the massive amount of personal health data being created and shared daily. The Watson Health Cloud can mask individual identities and allow this information to be shared and combined with a dynamic and constantly growing aggregated view of clinical, research and social health data. For more information on IBM Watson, visit: ibm.com/watson. For more information on IBM Watson Health, visit: ibm.com/watsonhealth.

    Forward-Looking Statements

    This press release contains forward-looking statements, which are generally statements that are not historical facts. Forward-looking statements can be identified by the words "expects," "anticipates," "believes," "intends," "estimates," "plans," "will," "outlook" and similar expressions. Forward-looking statements are based on management's current plans, estimates, assumptions and projections, and speak only as of the date they are made. Neither Celgene nor IBM Watson Health undertake any obligation to update any forward-looking statement in light of new information or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and are generally beyond either companies control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in each company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.

    Contacts:

    For Celgene:
    Investors: (908) 673-9628 investors@celgene.com
    Media: (908) 673-2275 media@celgene.com

    For IBM Watson Health:
    IBM Media Relations:
    Kristi Bond - IBM Watson Health
    (802) 345-8313
    kristi.bond@us.ibm.com

    Logo - http://photos.prnewswire.com/prnh/20090416/IBMLOGO

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/celgene-and-ibm-watson-health-forge-collaboration-designed-to-transform-patient-safety-monitoring-300355235.html

    Photo: http://photos.prnewswire.com/prnh/20090416/IBMLOGO IBM Watson Health

    Web site: http://ibm.com/watsonhealth/




    Match Group Reports Third Quarter 2016 ResultsAnnounces 22% Growth in Dating Revenue and 33% Growth in Subscribers

    DALLAS, Nov. 1, 2016 /PRNewswire/ -- Match Group reported third quarter 2016 financial results today and separately released an investor presentation which will be reviewed on the earnings conference call scheduled for 8:30 a.m. Eastern Time on November 2, 2016. The presentation is available on the Investor Relations section of its website at http://ir.mtch.com.

    http://photos.prnewswire.com/prnvar/20160613/378794LOGO

    "Q3 was another strong quarter for Match Group," said Greg Blatt, Chairman and CEO. "We grew revenue 22% and expanded margins in our Dating businesses, delivering results ahead of expectations, driven by great growth at Tinder, as well as PlentyOfFish and Meetic. Our Non-dating business turned a meaningful profit this quarter as expected, and overall, we are meeting or exceeding the marks we have set for ourselves. The outlook for our Dating businesses remains very positive."

    Q3 2016 HIGHLIGHTS

    --  Average PMC grew 33% to 5.5 million over the prior year quarter led by
    continued strength at Tinder, growth at Meetic and Pairs, in Japan, and
    from PlentyOfFish, which was acquired in October 2015.
    --  Tinder's strong subscriber growth continued, ending Q3 with over 1.5
    million PMC.
    --  Dating revenue grew 22% over the prior year quarter to $288 million and
    total revenue grew 18% to $316 million. Total revenue was impacted by a
    revenue decline at Non-dating.
    --  Growth in operating income outpaced revenue growth, increasing 57% over
    the prior year quarter to $92 million, while Adjusted EBITDA grew 34% to
    $111 million.
    --  Operating income margin and Adjusted EBITDA margin for Dating improved
    to 32% and 37%, respectively, compared to 25% and 34%, respectively, in
    the prior year quarter.
    --  ARPPU continues to exhibit stability during 2016 and was $0.54 for the
    quarter.
    --  Operating cash flow for the nine months ended September 30, 2016
    increased 34% to $169 million compared to the prior year period, while
    free cash flow increased 22% to $130 million. Match Group ended Q3 2016
    with $231 million of cash and cash equivalents.
    --  Non-dating generated positive operating income in Q3 2016, while
    Adjusted EBITDA increased 55% to $3.6 million compared to the prior year
    quarter.
    

    Key Financial and Operating Metrics

    (In thousands, except EPS and ARPPU) Q3 2016 Q3 2015 Change ------- ------- ------ Total Revenue $316,447 $268,971 18% Total Dating Revenue $287,530 $235,131 22% Operating Income $91,754 $58,356 57% Net Income $56,410 $35,259 60% Diluted EPS $0.21 $0.20 5% Adjusted EBITDA $110,708 $82,657 34% Adjusted Net Income $62,014 $46,920 32% Adjusted EPS $0.23 $0.27 (15)% Average PMC 5,546 4,167 33% ARPPU $0.54 $0.59 (8)%

    See reconciliations of GAAP to non-GAAP measures below.

    Revenue

    (In thousands) Q3 2016 Q3 2015 Change ------- ------- ------ Direct Revenue: North America $172,441 $148,728 16% International 101,286 75,773 34% ------- ------ Total Direct Revenue 273,727 224,501 22% Indirect Revenue 13,803 10,630 30% Dating Revenue 287,530 235,131 22% Non-dating Revenue 28,917 33,840 (15)% Total Revenue $316,447 $268,971 18% ======== ========

    Revenue growth of 22% at Dating was led by strong contributions from Tinder, Pairs, and the acquisition of PlentyOfFish. Non-dating revenue declined as the new SAT test format continued to impact the test preparation business and we continued to shift our focus to higher margin revenue.

    Dating Average PMC

    (In thousands) Q3 2016 Q3 2015 Change ------- ------- ------ Total Average PMC: North America 3,371 2,676 26% International 2,175 1,491 46% Total 5,546 4,167 33% ===== =====

    Average PMC increased 33% to 5.5 million compared to 4.2 million for the year ago quarter, driven primarily by growth at Tinder and strong contributions from Meetic, Pairs, and the acquisition of PlentyOfFish.

    Dating ARPPU

    Q3 2016 Q3 2015 Change ------- ------- ------ Total Dating ARPPU: North America $0.56 $0.60 (8)% International $0.51 $0.55 (8)% Total $0.54 $0.59 (8)%

    ARPPU was $0.54 for the third quarter of 2016, compared to $0.59 in the year ago quarter, due primarily to growth at Tinder and the acquisition of PlentyOfFish, both of which have lower price points than most of our other brands.

    Operating Costs and Expenses

    (In thousands) Q3 2016 % of Q3 2015 % of Change Revenue Revenue ------- ------- Cost of revenue $61,161 19% $47,636 18% 28% Selling and marketing expense 92,370 29% 89,698 33% 3% General and administrative expense 39,685 13% 45,981 17% (14)% Product development expense 18,539 6% 16,811 6% 10% Depreciation 8,032 3% 6,137 2% 31% Amortization of intangibles 4,906 2% 4,352 2% 13% Total operating costs and expense $224,693 71% $210,615 78% 7% ======== ========

    Operating expenses were $225 million, or 71% of revenue, compared to $211 million, or 78% of revenue, for the prior year quarter as the product mix at Dating increasingly shifts towards brands with lower marketing spend. The absolute increase in operating costs and expense is primarily driven by in-app purchase fees, increased employee costs primarily related to the growth of Tinder, and increased depreciation, partially offset by income in the current year period of $5.1 million from acquisition-related contingent consideration fair value adjustments compared to expense of $0.8 million in the prior year quarter and lower costs of $1.8 million compared to the prior year quarter related to the consolidation and streamlining of our technology systems and European operations at our Dating business.

    Operating Income and Adjusted EBITDA

    (In thousands) Q3 2016 Q3 2015 Change ------- ------- ------ Dating operating income $90,938 $59,071 54% Non-dating operating income (loss) 816 (715) NM --- ---- Total Match Group operating income $91,754 $58,356 57% ======= ======= Dating operating income margin 32% 25% 6.5 pts Total Match Group operating income margin 29% 22% 7.3 pts Dating Adjusted EBITDA $107,101 $80,323 33% Non-dating Adjusted EBITDA 3,607 2,334 55% ----- Total Match Group Adjusted EBITDA $110,708 $82,657 34% ======== ======= Dating Adjusted EBITDA Margin 37% 34% 3.1 pts Total Match Group Adjusted EBITDA Margin 35% 31% 4.3 pts NM = Not meaningful

    Operating income increased 57% and Adjusted EBITDA increased 34% over the prior year quarter as our revenue increased and a higher percentage of our revenue is coming from brands with lower marketing spend. Additionally, we incurred lower costs of $1.8 million in Q3 2016 compared to the prior year quarter related to the consolidation and streamlining of our technology systems and European operations at our Dating business and shifted to an operating profit at our Non-dating business in Q3 2016. Operating income increased at a faster rate than Adjusted EBITDA as a result of income in the current year period of $5.1 million from acquisition-related contingent consideration fair value adjustments compared to expense of $0.8 million in the prior year quarter. Dating operating income margin increased to 32% from 25% in the prior year quarter and Dating Adjusted EBITDA margin increased to 37% from 34% in the prior year quarter.

    OTHER ITEMS

    The effective tax rates in Q3 2016 and Q3 2015 were 26% and 38%, respectively. In Q3 2016, the effective rate was lower than the statutory rate of 35% due primarily to foreign income taxed at lower rates and the non-taxable gain on contingent consideration fair value adjustments. The effective tax rates for Adjusted Net Income in Q3 2016 and Q3 2015 were 29% and 38%, respectively. The Q3 2016 effective tax rate for Adjusted Net Income is lower than the prior year quarter primarily due to an increase in foreign income taxed at lower rates.

    LIQUIDITY AND CAPITAL RESOURCES

    As of September 30, 2016, Match Group had 254.6 million common and class B common shares outstanding.

    As of September 30, 2016, the Company had $231 million in cash and cash equivalents. Additionally, the Company had $1.2 billion of long-term debt. Match Group has a $500 million revolving credit facility. The credit facility was undrawn as of September 30, 2016 and currently remains undrawn.

    As of September 30, 2016, IAC's ownership interest and voting interest in Match Group were 82.8% and 98.0%, respectively.

    DILUTIVE SECURITIES

    Match Group has various tranches of dilutive securities. The table below details these securities as well as potential dilution at various stock prices (shares in millions; rounding differences may occur).

    As of Dilution at: 10/28/2016 ---------- Share Price $18.44 $19.00 $20.00 $21.00 $22.00 Absolute Shares as of 10/28/2016 254.6 254.6 254.6 254.6 254.6 Vested Options and Awards ------------------------- Subsidiary Equity Plans 7.8 7.6 7.2 6.9 6.6 Match Options 2.5 2.6 2.7 2.8 3.0 IAC Equity 0.1 0.1 0.1 0.1 0.1 --- --- --- --- --- Total Dilution - Vested Options and Awards 10.4 10.3 10.1 9.8 9.6 Unvested Options and Awards --------------------------- Subsidiary Equity Plans 3.8 3.7 3.5 3.3 3.2 Match Options 4.1 4.4 4.8 5.2 5.6 Match RSUs 0.6 0.6 0.6 0.6 0.6 IAC Equity 0.1 0.1 0.1 0.1 0.1 --- --- --- --- Total Dilution - Unvested Options and Awards 8.6 8.8 9.0 9.3 9.5 Total Dilution 19.1 19.1 19.1 19.1 19.1 % Dilution 7.0% 7.0% 7.0% 7.0% 7.0% Total Diluted Shares Outstanding 273.7 273.7 273.7 273.7 273.7

    The dilution calculation above assumes that all exercise proceeds from Match Group options, and all expected tax benefits associated with the vesting and exercise of all awards, are used to purchase Match Group shares at the time of such vesting or exercise (as the case may be), whether or not such repurchases actually occur. This methodology differs from the treasury stock method used for GAAP because it: (i) excludes from the assumed proceeds the impact of future non-cash compensation of all unvested stock-based awards; (ii) includes in assumed proceeds the entire estimated tax benefit received upon the exercise of options or the vesting of restricted and performance-based stock awards rather than only the excess tax benefit; and (iii) includes the shares related to performance- and market-based awards that are considered probable of vesting, if dilutive. This reflects the way the Company's management generally thinks about dilution and we believe it is the best reflection of the true economic costs of our equity compensation programs.

    The Subsidiary Equity Plans line item includes stock options, stock appreciation rights and warrants denominated in the equity of Tinder and The Princeton Review. These awards will ultimately be settled by granting shares of our common stock to the holders of the awards equal in value at the time of exercise to the spread on the awards, net of withholding taxes which will be paid in cash by Match Group at the time of settlement. The IAC equity awards represent options, restricted stock units, and performance-based stock units denominated in the shares of IAC which were issued to employees of Match Group prior to our public offering. When exercised, IAC will settle the awards with shares of IAC and Match Group will issue additional shares to IAC as consideration. The number of common shares reflected in the dilution table above reflects the current market price of IAC and our estimates of the fair value of Tinder and The Princeton Review, each at various market prices of our common stock. The number of shares of our common stock ultimately required to settle these awards will fluctuate from the number of shares reflected in the table above based upon changes in our stock price, changes in IAC's stock price, and any differences between the estimates of fair value of Tinder and The Princeton Review used to compute dilution in the table above and the ultimate fair values of these businesses determined in connection with any future liquidity events related to the associated equity awards.

    CONFERENCE CALL

    Match Group will audiocast a conference call to answer questions regarding its third quarter financial results on Wednesday, November 2, 2016 at 8:30 a.m. Eastern Time. This call will include the disclosure of certain information, including forward-looking information, which may be material to an investor's understanding of Match Group's business. The live audiocast will be open to the public at, and the investor's presentation reviewing the results has been posted on, http://ir.mtch.com.

    GAAP FINANCIAL STATEMENTS MATCH GROUP CONSOLIDATED AND COMBINED STATEMENT OF OPERATIONS Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- (In thousands, except per share data) Revenue $316,447 $268,971 $902,849 $752,857 Operating costs and expenses: Cost of revenue (exclusive of depreciation shown separately below) 61,161 47,636 171,385 131,118 Selling and marketing expense 92,370 89,698 294,061 289,844 General and administrative expense 39,685 45,981 138,261 121,303 Product development expense 18,539 16,811 62,346 50,740 Depreciation 8,032 6,137 22,609 19,804 Amortization of intangibles 4,906 4,352 19,577 14,130 Total operating costs and expenses 224,693 210,615 708,239 626,939 ------- ------- ------- Operating income 91,754 58,356 194,610 125,918 Interest expense-third party (20,751) - (61,828) - Interest expense-related party - (2,318) - (6,879) Other income, net 6,045 1,535 4,410 8,341 ----- ----- ----- ----- Earnings before income taxes 77,048 57,573 137,192 127,380 Income tax provision (20,344) (22,136) (39,168) (42,632) ------- ------- ------- ------- Net earnings 56,704 35,437 98,024 84,748 Net (earnings) loss attributable to noncontrolling interests (294) (178) (384) 42 Net earnings attributable to Match Group, Inc. shareholders $56,410 $35,259 $97,640 $84,790 ======= ======= Net earnings per share attributable to Match Group, Inc. shareholders: Basic $0.22 $0.21 $0.39 $0.52 Diluted $0.21 $0.20 $0.36 $0.49 Basic shares outstanding 253,176 168,313 250,316 163,733 Diluted shares outstanding 270,024 176,359 268,710 172,182 Stock-based compensation expense by function: Cost of revenue $378 $133 $1,093 $342 Selling and marketing expense 873 1,522 2,585 4,883 General and administrative expense 7,719 10,096 26,570 22,076 Product development expense 2,175 1,306 11,093 3,681 Total stock-based compensation expense $11,145 $13,057 $41,341 $30,982 ======= ======= ======= =======

    MATCH GROUP CONSOLIDATED BALANCE SHEET September 30, 2016 December 31, 2015 ------------------ ----------------- (In thousands) ASSETS Cash and cash equivalents $231,154 $88,173 Marketable securities - 11,622 Accounts receivable, net 67,575 65,851 Other current assets 67,786 39,049 Total current assets 366,515 204,695 Property and equipment, net 67,280 48,067 Goodwill 1,311,626 1,292,775 Intangible assets, net 261,524 276,408 Long-term investments 55,355 55,569 Other non-current assets 29,576 31,878 TOTAL ASSETS $2,091,876 $1,909,392 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Current maturities of long-term debt $ - $40,000 Accounts payable 20,224 25,767 Deferred revenue 196,678 169,321 Accrued expenses and other current liabilities 145,621 118,556 Total current liabilities 362,523 353,644 Long-term debt, net of current maturities 1,215,546 1,176,871 Income taxes payable 8,720 9,670 Deferred income taxes 35,438 34,947 Other long-term liabilities 18,014 49,542 Redeemable noncontrolling interests 5,588 5,907 Commitments and contingencies SHAREHOLDERS' EQUITY Total Match Group, Inc. shareholders' equity 446,047 278,811 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,091,876 $1,909,392 ========== ==========

    MATCH GROUP CONSOLIDATED AND COMBINED STATEMENT OF CASH FLOWS Nine Months Ended September 30, ------------------------------- 2016 2015 ---- ---- (In thousands) Cash flows from operating activities: Net earnings $98,024 $84,748 Adjustments to reconcile net earnings to net cash provided by operating activities: Stock-based compensation expense 41,341 30,982 Depreciation 22,609 19,804 Amortization of intangibles 19,577 14,130 Excess tax benefits from stock-based awards (25,929) (31,285) Deferred income taxes (1,463) (8,646) Acquisition-related contingent consideration fair value adjustments (2,723) (11,479) Other adjustments, net (1,762) (11,274) Changes in assets and liabilities, excluding effects of acquisitions: Accounts receivable 282 (25,116) Other assets (10,079) (7,447) Accounts payable and accrued expenses and other current liabilities 2 20,834 Income taxes payable 2,884 26,993 Deferred revenue 26,139 23,997 ------ ------ Net cash provided by operating activities 168,902 126,241 ------- ------- Cash flows from investing activities: Acquisitions, net of cash acquired (2,303) (40,712) Capital expenditures (39,106) (19,916) Proceeds from the sale of a marketable security 11,716 - Purchase of investment (500) - Other, net 5,100 (8,402) Net cash used in investing activities (25,093) (69,030) ------- ------- Cash flows from financing activities: Proceeds from bond offering 400,000 - Principal payments on long-term debt (410,000) - Debt issuance costs (5,048) - Issuance of common stock pursuant to stock-based awards, net of withholding taxes 467 - Excess tax benefits from stock-based awards 25,929 31,285 Transfers from IAC - 75,945 Purchase of noncontrolling interests (1,129) (557) Acquisition-related contingent consideration payments - (5,510) Other, net (12,181) - ------- --- Net cash (used in) provided by financing activities (1,962) 101,163 ------ ------- Effect of exchange rate changes on cash and cash equivalents 1,134 (3,461) Net increase in cash and cash equivalents 142,981 154,913 Cash and cash equivalents at beginning of period 88,173 127,630 Cash and cash equivalents at end of period $231,154 $282,543 ======== ========

    RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES MATCH GROUP RECONCILIATION OF OPERATING CASH FLOW TO FREE CASH FLOW Nine Months Ended September 30, ------------------------------- (In millions) 2016 2015 ---- ---- Net cash provided by operating activities $168.9 $126.2 Capital expenditures (39.1) (19.9) Free Cash Flow $129.8 $106.3 ====== ======

    MATCH GROUP RECONCILIATION OF GAAP EPS TO ADJUSTED EPS Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- (In thousands, except per share data) 2016 2015 2016 2015 ---- ---- ---- ---- Net earnings attributable to Match Group, Inc. shareholders $56,410 $35,259 $97,640 $84,790 Stock-based compensation expense 11,145 13,057 41,341 30,982 Amortization of intangibles 4,906 4,352 19,577 14,130 Acquisition-related contingent consideration fair value adjustments (5,129) 755 (2,723) (11,479) Impact of income taxes and noncontrolling interests (5,318) (6,503) (18,970) (16,660) Adjusted Net Income $62,014 $46,920 $136,865 $101,763 ======= ======= ======== ======== GAAP Basic weighted average shares outstanding 253,176 168,313 250,316 163,733 Subsidiary denominated equity, stock options and RSUs, treasury method 16,848 8,046 18,394 8,449 ------ ----- ------ ----- GAAP Diluted weighted average shares outstanding 270,024 176,359 268,710 172,182 Impact of RSUs and other 991 186 773 141 Adjusted EPS weighted average shares outstanding 271,015 176,545 269,483 172,323 ======= ======= ======= ======= GAAP Diluted earnings per share $0.21 $0.20 $0.36 $0.49 Adjusted EPS $0.23 $0.27 $0.51 $0.59 For Adjusted EPS purposes, the impact of RSUs on shares outstanding is based on the weighted average number of RSUs outstanding, including performance-based RSUs outstanding that the Company believes are probable of vesting. For GAAP diluted EPS purposes, RSUs, including performance-based RSUs for which the performance criteria have been met, are included on a treasury method basis.

    MATCH GROUP RECONCILIATION OF SEGMENT GAAP MEASURE TO NON-GAAP MEASURE Three Months Ended September 30, 2016 ------------------------------------- Operating Stock-based Amortization of Acquisition- Income compensation Intangibles related Contingent Consideration Fair Value Depreciation Adjustment Adjusted EBITDA ---------- ------------ ------------ --------------- ------------- --------------- (In millions, rounding differences may occur) Dating $90.9 $10.7 $7.2 $3.4 $(5.1) $107.1 Non-dating 0.8 0.4 0.8 1.5 - 3.6 --- Total $91.8 $11.1 $8.0 $4.9 $(5.1) $110.7 ===== ===== ==== ==== ===== ====== Three Months Ended September 30, 2015 ------------------------------------- Operating Stock-based Amortization of Acquisition- Income (Loss) compensation Intangibles related Contingent Consideration Fair Value Depreciation Adjustment Adjusted EBITDA -------------- ------------ ------------ --------------- ------------- --------------- (In millions, rounding differences may occur) Dating $59.1 $12.8 $5.0 $2.7 $0.8 $80.3 Non-dating (0.7) 0.2 1.2 1.7 - 2.3 Total $58.4 $13.1 $6.1 $4.4 $0.8 $82.7 ===== ===== ==== ==== ==== ===== Nine Months Ended September 30, 2016 ------------------------------------ Operating Stock-based Amortization of Acquisition- Income (Loss) compensation Intangibles related Contingent Consideration Fair Value Depreciation Adjustment Adjusted EBITDA -------------- ------------ ------------ --------------- ------------- --------------- (In millions, rounding differences may occur) Dating $202.6 $40.8 $20.1 $15.0 $(2.7) $275.8 Non-dating (8.0) 0.5 2.5 4.6 - (0.4) Total $194.6 $41.3 $22.6 $19.6 $(2.7) $275.4 ====== ===== ===== ===== ===== ====== Nine Months Ended September 30, 2015 ------------------------------------ Operating Stock-based Amortization of Acquisition- Income (Loss) compensation Intangibles related Contingent Consideration Fair Value Depreciation Adjustment Adjusted EBITDA -------------- ------------ ------------ --------------- ------------- --------------- (In millions, rounding differences may occur) Dating $142.9 $30.2 $14.3 $9.1 $(11.5) $185.1 Non-dating (17.0) 0.7 5.5 5.0 - (5.7) Total $125.9 $31.0 $19.8 $14.1 $(11.5) $179.4 ====== ===== ===== ===== ====== ======

    MATCH GROUP RECONCILIATION OF SEGMENT GAAP MEASURE TO NON-GAAP MEASURE (CONTINUED) (In thousands) Q3 2016 Q3 2015 ------- ------- Dating revenue $287,530 $235,131 Non-dating revenue 28,917 33,840 ------ ------ Total Match Group revenue $316,447 $268,971 ======== ======== Dating operating income $90,938 $59,071 Non-dating operating income (loss) 816 (715) --- ---- Total Match Group operating income $91,754 $58,356 ======= ======= Dating operating income margin 32% 25% Total Match Group operating income margin 29% 22% Dating Adjusted EBITDA $107,101 $80,323 Non-dating Adjusted EBITDA 3,607 2,334 ----- Total Match Group Adjusted EBITDA $110,708 $82,657 ======== ======= Dating Adjusted EBITDA Margin 37% 34% Total Match Group Adjusted EBITDA Margin 35% 31% See preceding tables for reconciliation of segment operating income (loss) to segment Adjusted EBITDA.

    MATCH GROUP'S PRINCIPLES OF FINANCIAL REPORTING

    Match Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted EPS and Free Cash Flow, all of which are supplemental measures to GAAP. These measures are among the primary metrics by which we evaluate the performance of our businesses, on which our internal budgets are based and by which management is compensated. We believe that investors should have access to, and we are obligated to provide, the same set of tools that we use in analyzing our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Match Group endeavors to compensate for the limitations of the non-GAAP measures presented by providing the comparable GAAP measures with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measures. We encourage investors to examine the reconciling adjustments between the GAAP and non-GAAP measures, which are included in this release. Interim results are not necessarily indicative of the results that may be expected for a full year.

    Definitions of Non-GAAP Measures

    Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) is defined as operating income excluding: (1) stock-based compensation expense; (2) depreciation; and (3) acquisition-related items consisting of (i) amortization of intangible assets and impairments of goodwill and intangible assets and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. We believe Adjusted EBITDA is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, and we believe that by excluding these items, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA has certain limitations in that it does not take into account the impact to our consolidated statement of operations of certain expenses.

    Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenues. We believe Adjusted EBITDA margin is useful for analysts and investors as this measure allows a more meaningful comparison between our performance and that of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. Adjusted EBITDA margin corresponds more closely to the cash operating income margin generated from our business, from which capital investments are made and debt is serviced. Adjusted EBITDA margin has certain limitations in that it does not take into account the impact to our consolidated statement of operations of certain expenses.

    Adjusted Net Income generally captures all items on the statement of operations that have been, or ultimately will be, settled in cash and is defined as net earnings attributable to Match Group, Inc. shareholders excluding, net of tax effects and noncontrolling interests, if applicable: (1) stock-based compensation expense, and (2) acquisition-related items consisting of (i) amortization of intangibles and impairments of goodwill and intangible assets and (ii) gains and losses recognized on changes in the fair value of contingent consideration arrangements. We believe Adjusted Net Income is useful to investors because it represents Match Group's consolidated results taking into account depreciation, which management believes is an ongoing cost of doing business, as well as other charges that are not allocated to the operating businesses such as interest expense, income taxes and noncontrolling interests, but excluding the effects of any other non-cash expenses.

    Adjusted EPS is defined as Adjusted Net Income divided by fully diluted weighted average shares outstanding for Adjusted EPS purposes. We include dilution from options in accordance with the treasury stock method and include all restricted stock units ("RSUs") in shares outstanding for Adjusted EPS, with performance-based RSUs included based on the number of shares that the Company believes are probable of vesting. This differs from the GAAP method for including RSUs, which are treated on a treasury method, and performance-based RSUs, which are included for GAAP purposes only to the extent the performance criteria have been met (assuming the end of the reporting period is the end of the contingency period). Shares outstanding for Adjusted EPS purposes are therefore higher than shares outstanding for GAAP EPS purposes. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, Match Group's consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other charges, which are not allocated to the operating businesses such as interest expense, income taxes and noncontrolling interests, but excluding the effects of any other non-cash expenses. Adjusted Net Income and Adjusted EPS have the same limitations as Adjusted EBITDA. Therefore, we think it is important to evaluate these measures along with our consolidated statement of operations.

    Free Cash Flow is defined as net cash provided by operating activities, less capital expenditures. We believe Free Cash Flow is useful to investors because it represents the cash that our operating businesses generate, before taking into account non-operational cash movements. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, we think it is important to evaluate Free Cash Flow along with our consolidated statement of cash flows.

    Non-Cash Expenses That Are Excluded From Our Non-GAAP Measures

    Stock-based compensation expense consists principally of expense associated with the grants of stock options, RSUs, and performance-based RSUs. These expenses are not paid in cash, and we include the related shares in our fully diluted shares outstanding using the treasury stock method; however, performance-based RSUs are included only to the extent the performance criteria have been met (assuming the end of the reporting period is the end of the contingency period). We view the true cost of stock options, RSUs and performance-based RSUs as the dilution to our share base, and such awards are included in our shares outstanding for Adjusted EPS purposes as described above under the definition of Adjusted EPS. Upon the exercise of certain stock options and vesting of RSUs and performance-based RSUs, the awards are settled, at the Company's discretion, on a net basis, with the Company remitting the required tax-withholding amount from its current funds.

    Depreciation is a non-cash expense relating to our property and equipment and is computed using the straight-line method to allocate the cost of depreciable assets to operations over their estimated useful lives.

    Amortization of intangible assets and impairments of goodwill and intangible assets are non-cash expenses related primarily to acquisitions. At the time of an acquisition, the identifiable definite-lived intangible assets of the acquired company, such as customer lists, content, trade names, and technology, are valued and amortized over their estimated lives. Value is also assigned to acquired indefinite-lived intangible assets, which comprise trade names and trademarks, and goodwill that are not subject to amortization. An impairment is recorded when the carrying value of an intangible asset or goodwill exceeds its fair value. We believe that intangible assets represent costs incurred by the acquired company to build value prior to acquisition and the related amortization and impairment charges of intangible assets or goodwill, if applicable, are not ongoing costs of doing business.

    Gains and losses recognized on changes in the fair value of contingent consideration arrangements are accounting adjustments to report contingent consideration liabilities at fair value. These adjustments can be highly variable and are excluded from our assessment of performance because they are considered non-operational in nature and, therefore, are not indicative of current or future performance or ongoing costs of doing business.

    Free Cash Flow

    We look at Free Cash Flow as a measure of the strength and performance of our businesses, not for valuation purposes. In our view, applying "multiples" to Free Cash Flow is inappropriate because it is subject to timing, seasonality and one-time events. We manage our business for cash and we think it is of utmost importance to maximize cash - but our primary valuation metrics are Adjusted EBITDA and Adjusted EPS.

    OTHER INFORMATION

    Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

    This press release and our conference call, which will be held at 8:30 a.m. Eastern Time on November 2, 2016, may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipates," "estimates," "expects," "plans" and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: Match Group's future financial performance, Match Group's business prospects and strategy, anticipated trends and other similar matters. These forward-looking statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including, among others: competition, our ability to maintain user rates on our higher monetizing dating products, our ability to attract users to our dating products through cost-effective marketing and related efforts, foreign currency exchange rate fluctuations, our ability to distribute our dating products through third parties and offset related fees, the integrity and scalability of our systems and infrastructure (and those of third parties) and our ability to adapt ours to changes in a timely and cost-effective manner, our ability to protect our systems from cyberattacks and to protect personal and confidential user information, risks relating to certain of our international operations and acquisitions and certain risks relating to our relationship with IAC/InterActiveCorp, among other risks. Certain of these and other risks and uncertainties are discussed in Match Group's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors that could also adversely affect Match Group's business, financial condition and results of operations may arise from time to time. In light of these risks and uncertainties, these forward-looking statements may not prove to be accurate. Accordingly, you should not place undue reliance on these forward-looking statements, which only reflect the views of Match Group management as of the date of this press release. Match Group does not undertake to update these forward-looking statements.

    About Match Group

    Match Group is the world's leading provider of dating products. We operate a portfolio of over 45 brands, including Match, OkCupid, PlentyOfFish, Tinder, Meetic, Twoo, OurTime, BlackPeopleMeet and LoveScout24 (formerly known as FriendScout24), each designed to increase our users' likelihood of finding a romantic connection. Through our portfolio of trusted brands, we provide tailored products to meet the varying preferences of our users. We currently offer our dating products in 38 languages across more than 190 countries. In addition to our dating business, we also operate The Princeton Review, which provides a variety of test preparation, academic tutoring and college counseling services.

    Logo - http://photos.prnewswire.com/prnh/20160613/378794LOGO

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/match-group-reports-third-quarter-2016-results-300355284.html

    Photo: http://photos.prnewswire.com/prnh/20160613/378794LOGO Match Group

    CONTACT: Lance Barton, Match Group Investor Relations, (212) 314-7400;
    Matt David, Match Group Corporate Communications, (202) 507-1758; Match
    Group , 8750 North Central Expressway, Dallas, TX 75321, (214) 576-9352
    http://mtch.com

    Web site: http://www.matchgroupinc.com/




    Celgene and IBM Watson Health Forge Collaboration Designed to Transform Patient Safety Monitoring

    SUMMIT, New Jersey and CAMBRIDGE, Massachusetts, Nov. 1, 2016 /PRNewswire/ -- Celgene Corporation and IBM Watson Health today announced a collaboration to co-develop IBM Watson for Patient Safety, a new offering that aims to enhance pharmacovigilance methods used to collect, assess, monitor, and report adverse drug reactions. The new offering will run on the Watson Health Cloud.

    Logo - http://photos.prnewswire.com/prnh/20090416/IBMLOGO [http://photos.prnewswire.com/prnh/20090416/IBMLOGO]

    The collaboration will combine Watson's cognitive computing ability with Celgene's deep history and experience in drug safety and risk management in order to create an outcome- and evidence-based drug safety decision support system for life science companies. Watson's cognitive computing engine continuously learns, so it is expected that Watson for Patient Safety will increasingly be able to help identify potential drug safety signals.

    Watson for Patient Safety is being developed as a first-of-its-kind, highly automated drug-safety offering designed to enable the rapid collection, collation and automated analysis of high volumes of data from diverse sources, including anonymized electronic medical records, medical claims databases and other healthcare information sources. Watson for Patient Safety will be designed to drive pharmaceutical companies' understanding of complex safety questions, and delivery of evidence-based insights to help support ongoing understanding of the safety profiles of drug products by stakeholders.

    This advanced approach is intended to help biopharmaceutical companies and other stakeholders to better manage and interpret large volumes of Individual Case Safety Reports (ICSRs) describing potential side effects associated with drug products. Across the biopharmaceutical industry these reports are increasing in volume and complexity as data sources grow and regulations evolve.

    "With this collaboration, we intend to create a paradigm shift in identifying patient safety data that we hope can be applied across the entire product lifecycle - from early development through to approved medicines," said John Freeman, MSc, JD, Corporate Vice President of Global Drug Safety and Risk Management for Celgene. "The new offering we are co-developing will bring the cognitive computing power of Watson and its growing view of clinical, research and social health data to bear on this critical healthcare challenge."

    "Celgene established one of the first risk management systems, and its commitment to pharmacovigilance continues with this collaboration," said Lauren O'Donnell, Vice President of Life Sciences, IBM Watson Health. "Together we look forward to creating a cognitive solution that can be applied across the industry to help benefit patients everywhere, leveraging our cloud platform."

    Watson for Patient Safety will be developed in phases, with the first module anticipated within the next year. Watson Health Cloud for Life Sciences Compliance offers a health-data enabled infrastructure and is designed to streamline GxP compliance.

    About Celgene

    Celgene Corporation, headquartered in Summit, New Jersey, is an integrated global biopharmaceutical company engaged primarily in the discovery, development and commercialization of innovative therapies for the treatment of cancer and inflammatory diseases through next-generation solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. For more information, please visit www.celgene.com [http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.celgene.com&esheet=51256376&newsitemid=20160111005545&lan=en-US&anchor=www.celgene.com&index=2&md5=8a75c0971fd449a1e190bfaca6c5ecc8]. Follow Celgene on Social Media: @Celgene [https://twitter.com/celgene], Pinterest [https://www.pinterest.com/celgene/], LinkedIn [https://www.linkedin.com/company/celgene], Facebook [https://www.facebook.com/Celgene/] and YouTube [https://www.youtube.com/celgene].

    About IBM Watson Health

    Watson is the first commercially available cognitive computing capability representing a new era in computing. The system, delivered through the cloud, analyzes high volumes of data, understands complex questions posed in natural language, and proposes evidence-based answers. Watson continuously learns, gaining in value and knowledge over time, from previous interactions. In April 2015, the company launched IBM Watson Health and the Watson Health Cloud platform. The new unit will help improve the ability of doctors, researchers and insurers to innovate by surfacing insights from the massive amount of personal health data being created and shared daily. The Watson Health Cloud can mask individual identities and allow this information to be shared and combined with a dynamic and constantly growing aggregated view of clinical, research and social health data. For more information on IBM Watson, visit: ibm.com/ [http://ibm.com/watson]watson [http://ibm.com/watson]. For more information on IBM Watson Health, visit: ibm.com/ [http://ibm.com/watsonhealth]watsonhealth [http://ibm.com/watsonhealth].

    Forward-Looking Statements

    This press release contains forward-looking statements, which are generally statements that are not historical facts. Forward-looking statements can be identified by the words "expects," "anticipates," "believes," "intends," "estimates," "plans," "will," "outlook" and similar expressions. Forward-looking statements are based on management's current plans, estimates, assumptions and projections, and speak only as of the date they are made. Neither Celgene nor IBM Watson Health undertake any obligation to update any forward-looking statement in light of new information or future events, except as otherwise required by law. Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and are generally beyond either companies control. Actual results or outcomes may differ materially from those implied by the forward-looking statements as a result of the impact of a number of factors, many of which are discussed in more detail in each company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.

    Contacts:

    For Celgene:
    Investors: (908) 673-9628 investors@celgene.com [mailto:investors@celgene.com]
    Media: (908) 673-2275 media@celgene.com [mailto:media@celgene.com]

    For IBM Watson Health:
    IBM Media Relations:
    Kristi Bond - IBM Watson Health
    (802) 345-8313
    kristi.bond@us.ibm.com [mailto:kristi.bond@us.ibm.com]


    Photo: http://photos.prnewswire.com/prnh/20090416/IBMLOGO IBM Watson Health

    Web site: http://ibm.com/watsonhealth/




    TeleTech Announces New Dates For 2016 Third Quarter Earnings Release And Webcast Of Investor Conference Call

    DENVER, Nov. 1, 2016 /PRNewswire/ -- TeleTech Holdings, Inc. , a leading global provider of customer experience, engagement and growth solutions, announced that it will release 2016 third quarter results after the market close on Wednesday, November 9, 2016, when a press release and its Quarterly Report on Form 10-Q will be filed with the Securities and Exchange Commission.

    The third quarter results release, originally scheduled for November 2, 2016, is delayed to allow the Company the additional time necessary to finalize its quarterly financial results.

    The Company will also host a related conference call and webcast at 8:30 a.m. ET on Thursday, November 10, 2016, initially scheduled for November 3, 2016.

    You are invited to join a live webcast of the conference call by visiting the "Investors" section of the TeleTech website at www.teletech.com. If you are unable to participate during the live webcast, a replay will be available on the TeleTech website.

    ABOUT TELETECH

    TeleTech is a leading global provider of customer experience, engagement and growth solutions. Founded in 1982, the Company helps its clients acquire, retain and grow profitable customer relationships. Using customer-centric strategy, technology, processes and operations, TeleTech partners with business leadership across marketing, sales and customer care to design and deliver a simple, more human customer experience across every interaction channel. Servicing over 80 countries, TeleTech's 41,500 employees live by a set of customer-focused values that guide relationships with clients, their customers, and each other. To learn more about how TeleTech is bringing humanity to the customer experience, visit TeleTech.com.

    FORWARD-LOOKING STATEMENTS

    Statements in this press release contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, relating to our operations, expected financial position, results of operation, and other business matters that are based on our current expectations, assumptions, and projections with respect to the future, and are not a guarantee of performance. We use words such as "may," "believe," "plan," "will," "anticipate," "estimate," "expect," "intend," "project," "would," "could," "target," or similar expressions, or when we discuss our strategy, plans, goals, initiatives, or objectives, we are making forward-looking statements.

    We caution you not to rely unduly on any forward-looking statements. Actual results may differ materially from what is expressed in the forward-looking statements, and you should review and consider carefully the risks, uncertainties and other factors that affect our business and may cause such differences as outlined but are not limited to factors discussed in the sections entitled "Risk Factors" included in TeleTech's filings with the US Securities and Exchange Commission (the "SEC"), including our most recent Annual Report on Form 10-K and subsequent quarterly financial reports on Form 10-Q. TeleTech's filings with the SEC are available in the "Investors" section of TeleTech's website, www.teletech.com and at the SEC's public website at www.sec.gov. Our forward looking statements speak only as of the date of the press release and we undertake no obligation to update them, except as may be required by applicable laws.

    Investor Contact Media Contact Paul Miller Elizabeth Grice 303.397.8641 303.397.8507

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    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/teletech-announces-new-dates-for-2016-third-quarter-earnings-release-and-webcast-of-investor-conference-call-300355500.html

    Photo: https://photos.prnewswire.com/prnh/20140717/127860 TeleTech Holdings, Inc.

    Web site: http://www.teletech.com/




    Rogers Communications Inc. Announces US$500 Million Offering of Debt Securities

    TORONTO, Nov. 1, 2016 /PRNewswire/ - Rogers Communications Inc. ("RCI") announced today that it has priced a US$500 million underwritten public offering of 2.90% senior notes due 2026. The net proceeds from the issuance of the debt securities will be approximately US$487 million and are expected to be used to repay outstanding advances under RCI's bank credit facilities and for general corporate purposes. The sale of the debt securities is expected to close on November 4, 2016. The debt securities will be issued by RCI and guaranteed by its wholly owned subsidiary, Rogers Communications Canada Inc. ("RCCI").

    RCI has filed a shelf registration statement on Form F-10 (including a prospectus) with the SEC for this offering. Interested parties should read the prospectus in that registration statement together with the preliminary and final prospectus supplements for this offering and other documents RCI has filed with the SEC that have been incorporated by reference into the prospectus for more complete information about RCI and this offering. These documents are available at no charge by visiting EDGAR on the SEC website at www.sec.gov. A written prospectus and prospectus supplement relating to the offering of the debt securities may also be obtained from RCI by contacting Glenn Brandt as described below.

    The debt securities are not being offered in Canada or to any resident of Canada. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

    Caution Concerning Forward-Looking Statements
    This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological, strategic and/or regulatory factors, and other factors affecting the operations of RCI.

    More detailed information about these factors may be found in filings by RCI with the SEC, including its most recent Annual Report on Form 40-F. RCI is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

    About Rogers

    Rogers Communications Inc. is a leading diversified public Canadian communications and media company. We are Canada's largest provider of wireless communications services and one of Canada's leading providers of cable television, high-speed Internet and telephony services to consumers and businesses. Through Rogers Media, we are engaged in radio and television broadcasting, televised shopping, magazines and trade publications, sports entertainment, and digital media. Our stock is publicly traded on the Toronto Stock Exchange and on the New York Stock Exchange .

    Rogers Communications Canada Inc. - English

    CONTACT: Glenn Brandt, 416.935.3571, glenn.brandt@rci.rogers.com.

    Web site: http://www.rogers.com/
    http://www.rogers.com/




    EnLink Midstream Reports Third Quarter 2016 Results, Refines Guidance, and Provides Operational Update

    DALLAS, Nov. 1, 2016 /PRNewswire/ -- The EnLink Midstream companies (EnLink or EnLink Midstream), EnLink Midstream Partners, LP (the Partnership or ENLK) and EnLink Midstream, LLC (the General Partner or ENLC), today reported financial results for the third quarter of 2016, further refined guidance outlook for full-year 2016, and provided an operational update.

    http://photos.prnewswire.com/prnvar/20160404/350984LOGO

    Highlights:

    --  Achieved net income attributable to the Partnership of $18.8 million for
    the three months ended September 30, 2016, and achieved net cash
    provided by operating activities of $209.6 million for the quarter. The
    Partnership also achieved approximately $201 million of adjusted EBITDA
    before non-controlling interest for the same period.
    --  Refined full-year 2016 consolidated adjusted EBITDA guidance to a range
    of $760 million to $790 million, from the previous range of $750 million
    to $800 million. Adjusted EBITDA is a non-GAAP measure and it, as well
    as the availability or unavailability of a full-year comparable GAAP
    measure, is explained in greater detail under "Non-GAAP Financial
    Information."
    --  Commenced operations at the Lobo II facility in the Delaware Basin, with
    60 million cubic feet per day (MMcf/d) of processing capacity coming
    on-line in late October 2016.
    --  Significantly increased volumes into our Central Oklahoma system
    directly related to the recently acquired assets. Volumes from the STACK
    acreage during the third quarter 2016 increased by an average of 33
    percent compared to the second quarter of 2016, and 87 percent compared
    to the first quarter of 2016. STACK and SCOOP rig count on EnLink's
    dedicated acreage increased from seven to 11 total rigs.
    --  Increased processing capacity in Central Oklahoma at the Chisholm I
    plant by 20 MMcf/d, to 120 MMcf/d of capacity with minimal capital
    outlay.
    --  Achieved record throughput on the Louisiana gas transmission system
    during the third quarter of 2016. Volumes increased 16 percent from the
    third quarter of 2015, with strengthening primarily due to increased
    Gulf Coast industrial demand, fuel supply to power generation markets,
    and liquefied natural gas (LNG) export activity around EnLink's
    footprint, all of which are expected to drive long-term volume growth.
    

    "EnLink achieved another strong quarter of solid operating and financial results as we continue to execute on our strategic plan," said Barry E. Davis, EnLink's Chairman and Chief Executive Officer. "We remained proactive over the last 24 months, purposefully acquiring and building premier platforms in the best basins and are poised to continue capturing growth opportunities. With the benefits of another strong quarter of earnings, we tightened our guidance and are confident in achieving results in the upper end of that range."

    "We expect the momentum of recent volume growth to serve as a catalyst for growth in 2017 and beyond. Our outlook for Central Oklahoma has us considering the next 200 MMcf/d plant, and if present trends continue, production forecasts could support yet another follow-on 200 MMcf/d plant during the next two to three years."

    Consolidated Guidance Update

    EnLink refined its full-year 2016 consolidated adjusted EBITDA guidance to a range of $760 million to $790 million from a range of $750 million to $800 million previously.

    Projected net cash outlay related to consolidated growth capital expenditures for full-year 2016 has increased to a range of $475 million to $540 million, up from the previously expected range of $430 million to $515 million. The increase is primarily due to additional infrastructure build-out in Central Oklahoma to support the accelerating volume trajectory.

    Third Quarter 2016 -- EnLink Midstream Partners, LP Financial Results

    The Partnership's reported net income was $18.8 million and net cash provided by operating activities was $209.6 million in the third quarter of 2016, compared with net loss attributable to the Partnership of $754.9 million and net cash provided by operating activities of $215.7 million in the third quarter of 2015. The Partnership's operating income was $66.9 million in the third quarter of 2016 compared with an operating loss of $730.5 million in the third quarter of 2015. The net loss in the third quarter of 2015 was primarily due to a non-cash expense of $799.2 million related to goodwill and intangible asset impairments.

    The Partnership's gross operating margin was $316.4 million in the third quarter of 2016 compared with gross operating margin of $308.8 million in the third quarter of 2015. Realized adjusted EBITDA net to the Partnership was $197.5 million and the Partnership's distributable cash flow was $154.4 million in the third quarter of 2016, compared with adjusted EBITDA net to the Partnership of $187.3 million and distributable cash flow of $147.8 million in the third quarter of 2015. The resulting distribution coverage ratio for the third quarter of 2016 was approximately 1.04x on the declared distribution of $0.39 per Partnership unit. Adjusted EBITDA, distributable cash flow and gross operating margin are non-GAAP measures and are explained in greater detail under "Non-GAAP Financial Information." Reconciliations of these measures to their most directly comparable GAAP measures are included in the tables at the end of this news release.

    The Partnership's operating and reporting segments are based principally upon geographic regions served and consist of the following: the Texas segment, which includes natural gas gathering, processing, transmission, and fractionation operations located in North Texas and West Texas; the Louisiana segment, which includes pipelines, processing plants, and natural gas liquids (NGL) assets located in Louisiana; the Oklahoma segment, which includes natural gas gathering and processing operations located in Oklahoma; the Crude and Condensate segment, which includes rail, truck, pipeline, and barge facilities to deliver crude and condensate in Texas, Louisiana, and the Ohio River Valley and brine disposal wells in the Ohio River Valley; and the corporate segment, which includes operating activity for intersegment eliminations and gains or losses from derivative activities.

    Each business segment's contribution to the third quarter 2016 gross operating margin compared with that of the third quarter 2015, and the factors affecting those contributions, is described below:

    --  Texas Segment. Gross operating margin in the Texas segment decreased by
    $3.5 million for the three months ended September 30, 2016, compared to
    the three months ended September 30, 2015. The decrease was primarily
    attributable to an $8.7 million decline in gross operating margin from
    our north Texas processing, gathering and transmission assets due
    primarily to volume declines and the expiration of certain higher margin
    contracts. This decrease was partially offset by gross operating margin
    contributions totaling $3.7 million during 2016 from the Matador and
    Deadwood assets acquired in the fourth quarter of 2015. In addition,
    volume growth in the Midland Basin resulted in an additional increase in
    gross operating margin of $1.6 million between periods.
    --  Louisiana Segment. Gross operating margin in the Louisiana segment
    increased by $1.1 million for the three months ended September 30, 2016,
    compared to the three months ended September 30, 2015. The gross
    operating margin from our NGL business increased by $2.6 million due to
    integrating higher-margin services into the value chain, while the gross
    operating margin for the Louisiana gas business declined by $1.5 million
    due to lower processing margins. Both the NGL and gas businesses
    benefited from lower operating costs during the quarter.
    --  Oklahoma Segment. Gross operating margin in the Oklahoma segment
    increased by $22.8 million for the three months ended September 30,
    2016, compared to the three months ended September 30, 2015. This
    increase was driven by a gross operating margin contribution of $24.8
    million from the EnLink Oklahoma T.O. assets acquired in January 2016.
    This increase was partially offset by a decline in gross operating
    margin of $2.5 million at the Northridge gathering and processing assets
    as a result of a decline in volumes and a rate reduction on a
    third-party contract.
    --  Crude and Condensate Segment. Gross operating margin in the Crude and
    Condensate segment decreased by $7.1 million for the three months ended
    September 30, 2016, compared to the three months ended September 30,
    2015. The decrease is primarily the result of volume declines throughout
    the Crude and Condensate segment. The decrease in gross operating margin
    was offset by lower operating costs during the quarter.
    --  Corporate Segment. The Corporate segment included a loss from derivative
    activity of $0.5 million for the three months ended September 30, 2016,
    compared to a gain of $5.2 million for the three months ended September
    30, 2015 due primarily to realized gains on our commodity swaps during
    the three months ended September 30, 2015.
    

    The Partnership's third quarter 2016 operating expenses were $98.0 million, a decrease of $7.0 million from the third quarter of 2015. General and administrative expenses for the third quarter of 2016 decreased by $5.2 million from the third quarter of 2015. Depreciation and amortization expense for the third quarter of 2016 increased by $27.8 million from the third quarter of 2015. This increase was primarily due to the Chisholm and Battle Ridge assets acquired in January 2016 and the Lobo assets acquired in October 2015. Net interest expense for the third quarter of 2016 increased by $17.8 million from the third quarter of 2015 primarily due to an increase in senior notes outstanding and amortization of installment note discount.

    Net loss per limited partner common unit for the third quarter of 2016 was $0.03 per common unit compared with net loss of $2.32 per common unit for the third quarter of 2015.

    Third Quarter 2016 -- EnLink Midstream, LLC Financial Results

    The General Partner reported net income attributable to EnLink Midstream, LLC of $0.7 million for the third quarter of 2016 compared with a net loss attributable to EnLink Midstream, LLC of $193.4 million in the third quarter of 2015. As previously mentioned, the net loss in the third quarter of 2015 was primarily due to the non-cash expense of $799.2 million related to goodwill and intangible asset impairments. The General Partner's cash available for distribution was $51.1 million in the third quarter of 2016 compared with cash available for distribution of $47.5 million in the third quarter of 2015. The resulting distribution coverage ratio for the third quarter of 2016 was approximately 1.10x on the declared distribution of $0.255 per General Partner unit. Cash available for distribution is a non-GAAP measure and is explained in greater detail under "Non-GAAP Financial Information". A reconciliation of cash available for distribution to its most directly comparable GAAP measure is included in the tables at the end of this news release.

    Third Quarter Operational Update

    --  Central Oklahoma Expansion:
    --  Devon's recent announcement of improved type-curves, record setting
    well results and 2017 transition from evaluation to full-field
    development in the STACK bolstered the Partnership's confidence in
    volume growth for 2017, and expanded the scope of infrastructure
    needed in 2016. The Partnership plans to spend approximately $300
    million to $320 million of total growth capital in the STACK and
    SCOOP basins during 2016.
    --  Additionally, during the third quarter, EnLink expanded the capacity
    of the Chisholm I plant from 100 MMcf/d to 120 MMcf/d with minimal
    capital outlay and initiated construction of the Chisholm II plant
    such that costs and schedule remain in-line with the Partnership's
    previously announced expectations.
    --  Delaware Basin Joint Venture Processing Expansion:
    --  The Partnership formed a strategic joint venture with an affiliate
    of NGP Natural Resources XI, L.P. (NGP) during the quarter, with
    aggregate contributions and commitments of $800 million. The first
    joint project involves the completion of the Lobo II plant which
    includes the installation of a cryogenic natural gas processing
    facility with capacity up to 120 MMcf/d and approximately 80 miles
    of natural gas and liquids gathering pipeline infrastructure in
    Loving County, Texas, and Lea and Eddy Counties, New Mexico. The
    expansion is progressing well, and the first 60 MMcf/d of processing
    capacity is currently operational, with additional infrastructure
    becoming operational by year-end.
    --  EnLink's Delaware Basin joint venture is ideally positioned to
    pursue additional transactions provided they drive value to
    unitholders.
    --  The Greater Chickadee Crude Oil Gathering Project:
    --  The Partnership previously announced plans to construct a new crude
    oil gathering system in the Midland Basin called the Greater
    Chickadee Crude Oil Gathering Project. The project is progressing
    very well and has expanded in scope due to the addition of new
    customers, volumes and acreage. The aggregate revised capital cost
    of the original project and bolt-on opportunities increased to
    approximately $90 million, up from an original announcement of $70
    million to $80 million, with $60 million still expected to be
    incurred during 2016.
    --  The initial phase of the Greater Chickadee project will become
    operational in early November 2016, and full-service is on-track for
    first quarter 2017. There are currently three rigs running on
    EnLink's dedicated acreage, with a fourth rig expected by year-end.
    --  Louisiana:
    --  Record volumes were achieved on the Partnership's Louisiana gas
    system during the quarter, as demand across the footprint remained
    strong and the Partnership continued to enhance operational capacity
    and capture new demand through asset integration and customer
    connection efforts.
    --  NGL volumes continued to experience a short-term trough. This
    trough, however, is expected to reverse in early 2017 as NGL output
    increases on the Partnership's Central Oklahoma system. Current
    forecasts suggest that throughput on the Partnership's Cajun-Sibon
    pipeline should reach capacity in the second quarter of 2017,
    coinciding with the expansion of the Chisholm complex, which is
    expected to benefit the entirety of the company's Louisiana NGL
    footprint.
    --  Barnett Shale:
    --  Devon recently announced that it had identified thousands of
    low-risk opportunities in the Barnett, and has commented that as the
    strip price for gas rises, the potential for resumption of Barnett
    Shale refrac activity also rises, which could unlock significant
    value for EnLink.
    --  Combined actions taken by Devon and the Partnership to date have
    muted 2016 volume declines to 5 percent to 7 percent annually, and
    developmental activity undertaken in future years will assist in
    mitigating ongoing declines.
    --  Howard Energy Partners (HEP):
    --  In August 2016, HEP successfully closed a third-party preferred
    equity investment. The completion of the preferred equity investment
    reduces capital contributions required to be made by the Partnership
    to HEP for the remainder of 2016 in addition to capital calls that
    HEP previously scheduled for 2017.
    --  The Partnership previously disclosed the potential for increased
    liquidity as a result of non-core asset sales, including its 31
    percent interest in HEP's common units. The Partnership continues to
    evaluate a potential monetization of its HEP interest and will
    provide updates when available.
    

    EnLink Midstream to Hold Earnings Conference Call on November 2, 2016

    The General Partner and the Partnership will hold a conference call to discuss third quarter financial results on Wednesday, November 2, 2016, at 9 a.m. Central time (10 a.m. Eastern time). The dial-in number for the call is 1-855-656-0924. Callers outside the United States should dial 1-412-542-4172. Participants can also preregister for the conference call by navigating to http://dpregister.com/10092382 where they will receive their dial-in information upon completion of their preregistration.

    Interested parties can access an archived replay of the call on the Investors page of EnLink's website at www.enlink.com.

    About the EnLink Midstream Companies

    EnLink Midstream is a leading, integrated midstream company with a diverse geographic footprint and a strong financial foundation, delivering tailored customer solutions for sustainable growth. EnLink Midstream is publicly traded through two entities: EnLink Midstream, LLC , the publicly traded general partner entity, and EnLink Midstream Partners, LP , the master limited partnership entity.

    EnLink Midstream's assets are located in many of North America's premier oil and gas regions, including Oklahoma's Midcontinent, the Permian Basin, and the Gulf Coast region. Based in Dallas, Texas, EnLink Midstream's assets include approximately 11,000 miles of gathering and transportation pipelines, 21 processing plants with approximately 4.4 billion cubic feet per day of processing capacity, seven fractionators with approximately 260,000 barrels per day of fractionation capacity, as well as barge and rail terminals, product storage facilities, purchase and marketing capabilities, brine disposal wells, an extensive crude oil trucking fleet and equity investments in certain private midstream companies.

    References in this press release to "EnLink Midstream Partners, LP," the "Partnership," "ENLK" or like terms refer to EnLink Midstream Partners, LP itself or EnLink Midstream Partners, LP together with its consolidated subsidiaries, including EnLink Midstream Operating, LP, EnLink Midstream Holdings, LP ("Midstream Holdings") and EnLink Oklahoma Gas Processing, LP (formerly known as EnLink TOM Holdings, LP) and its consolidated subsidiaries (collectively, "EnLink Oklahoma T.O."). EnLink Oklahoma T.O. is sometimes used to refer to EnLink Oklahoma Gas Processing, LP itself or EnLink Oklahoma Gas Processing, LP together with its consolidated subsidiaries.

    Additional information about the EnLink companies can be found at www.enlink.com.

    Non-GAAP Financial Information

    This press release contains non-generally accepted accounting principle financial measures that we refer to as adjusted EBITDA, distributable cash flow, gross operating margin, and the General Partner's cash available for distribution. We define adjusted EBITDA as net income (loss) plus interest expense, provision for income taxes, depreciation and amortization expense, impairment expense, unit-based compensation, (gain) loss on non-cash derivatives, (gain) loss on disposition of assets, successful transaction costs, accretion expense associated with asset retirement obligations, reimbursed employee costs, non-cash rent and distributions from unconsolidated affiliate investments less payments under onerous performance obligations, non-controlling interest, the General Partner's interest in the adjusted EBITDA of Midstream Holdings prior to the EMH drop downs and income (loss) from unconsolidated affiliate investments. We define distributable cash flow as adjusted EBITDA (defined above), net to the Partnership, less interest expense (excluding amortization of the Tall Oak acquisition installment payable discount), adjustments for the mandatorily redeemable non-controlling interest, interest rate swaps, cash taxes and other, and maintenance capital expenditures. We define gross operating margin, as revenues less cost of sales. The General Partner's cash available for distribution is defined as net income (loss) of the General Partner less the net income (loss) of the Partnership, which is consolidated into the General Partner's net income (loss), plus the General Partner's share of distributions from the Partnership, the General Partner's share of EnLink Oklahoma Gas Processing, LP (together with its subsidiaries, "EnLink Oklahoma T.O.") depreciation expense, the General Partner's deferred income tax expense, the General Partner's interest in the adjusted EBITDA of Midstream Holdings prior to the EMH drop downs, the General Partner's corporate goodwill impairment and the General Partner's acquisition transaction costs attributable to its share of the EnLink Oklahoma T.O. acquisition, and less the General Partner's interest in maintenance capital expenditures of Midstream Holdings prior to the EMH drop downs. Growth capital expenditures generally include capital expenditures made for acquisitions or capital improvements that we expect will increase our asset base, operating income or operating capacity over the long-term. Adjusted EBITDA of Midstream Holdings is defined as Midstream Holdings' net income plus taxes, depreciation and amortization and distributions from unconsolidated affiliate investments less income from unconsolidated affiliate investments. EnLink Oklahoma T.O.'s adjusted EBITDA means EnLink Oklahoma T.O.'s net income plus depreciation and amortization

    Coverage ratio is calculated by dividing distributable cash flow by distributions paid to the General Partner and the unitholders. Growth capital expenditures generally include capital expenditures made for acquisitions or capital improvements that we expect will increase our asset base, operating income or operating capacity over the long-term. Maintenance capital expenditures are capital expenditures made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and to extend their useful lives.

    The Partnership and General Partner believe these measures are useful to investors because they may provide users of this financial information with meaningful comparisons between current results and prior-reported results and a meaningful measure of the Partnership's and the General Partner's cash flow after it has satisfied the capital and related requirements of its operations. In addition, adjusted EBITDA achievement is a primary metric used in the Partnership's credit facility and short-term incentive program for compensating its employees.

    Gross operating margin, adjusted EBITDA, distributable cash flow, and cash available for distribution, as defined above, are not measures of financial performance or liquidity under GAAP. They should not be considered in isolation or as an indicator of the Partnership's and the General Partner's performance. Furthermore, they should not be seen as a substitute for metrics prepared in accordance with GAAP. Reconciliations of these measures to their most directly comparable GAAP measures are included in the following tables. See ENLK's and ENLC's filings with the SEC for more information.

    EnLink Midstream does not provide GAAP financial measures on a forward-looking basis because the companies are unable to predict with reasonable certainty impairments, depreciation and amortization, gains and losses on derivative activities and acquisition-related expenses without unreasonable effort. These items are uncertain, depend on various factors, and could be material to EnLink Midstream's results computed in accordance with GAAP.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the federal securities laws. Although these statements reflect the current views, assumptions and expectations of our management, the matters addressed herein involve certain assumptions, risks and uncertainties that could cause actual activities, performance, outcomes and results to differ materially from those indicated. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, operational results of our customers, results in certain basins, future rig count information, objectives, project timing, expectations and intentions and other statements that are not historical facts. Factors that could result in such differences or otherwise materially affect our financial condition, results of operations and cash flows include, without limitation,(a) the dependence on Devon for a substantial portion of the natural gas that we gather, process and transport, (b) developments that materially and adversely affect Devon or our other customers, (c) adverse developments in the midstream business may reduce our ability to make distributions, (d) our vulnerability to having a significant portion of our operations concentrated in the Barnett Shale, (e) the amount of hydrocarbons transported in our gathering and transmission lines and the level of our processing and fractionation operations, (f) impairments to goodwill, long-lived assets and equity method investments, (g) our ability to balance our purchases and sales, (h) fluctuations in oil, natural gas and NGL prices, (i) construction risks in our major development projects, (j) reductions in our credit ratings, (k) our debt levels and restrictions contained in our debt documents, (l) our ability to consummate future acquisitions, successfully integrate any acquired businesses, realize any cost savings and other synergies from any acquisition, (m) changes in the availability and cost of capital, (n) competitive conditions in our industry and their impact on our ability to connect hydrocarbon supplies to our assets, (o) operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control, (p) a failure in our computing systems or a cyber-attack on our systems, and (q) the effects of existing and future laws and governmental regulations, including environmental and climate change requirements and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in EnLink Midstream Partners, LP's and EnLink Midstream, LLC's filings with the Securities and Exchange Commission, including EnLink Midstream Partners, LP's and EnLink Midstream, LLC's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Neither EnLink Midstream Partners, LP nor EnLink Midstream, LLC assumes any obligation to update any forward-looking statements.

    The assumptions and estimates underlying the forecasted financial information included in the guidance information in this press release are inherently uncertain and, though considered reasonable by the EnLink Midstream management team as of the date of its preparation, are subject to a wide variety of significant business, economic, and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the forecasted financial information. Accordingly, there can be no assurance that the forecasted results are indicative of EnLink Midstream's future performance or that actual results will not differ materially from those presented in the forecasted financial information. Inclusion of the forecasted financial information in this press release should not be regarded as a representation by any person that the results contained in the forecasted financial information will be achieved.

    EnLink Midstream Partners, LP Selected Financial Data (All amounts in millions except per unit amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- (Unaudited) (In millions, except per unit amounts) ------------------------------------- Total revenues $1,104.6 $1,170.6 $3,027.5 $3,385.6 Cost of sales (1) 788.2 861.8 2,106.8 2,487.4 ----- ----- ------- ------- Gross operating margin 316.4 308.8 920.7 898.2 Operating costs and expenses: Operating expenses (2) 98.0 105.0 296.3 312.6 General and administrative (3) 28.3 33.5 90.6 102.3 (Gain) loss on disposition of assets (3.0) 3.2 (2.9) 3.2 Depreciation and amortization 126.2 98.4 373.0 289.1 Impairments - 799.2 566.3 799.2 Total operating costs and expenses 249.5 1,039.3 1,323.3 1,506.4 ----- ------- ------- ------- Operating income (loss) 66.9 (730.5) (402.6) (608.2) Other income (expense): Interest expense, net of interest income (48.0) (30.2) (137.9) (71.5) Income (loss) from unconsolidated affiliates 1.1 6.4 (0.5) 16.1 Other income 0.1 0.1 0.1 0.7 --- --- --- --- Total other expense (46.8) (23.7) (138.3) (54.7) ----- ----- ------ ----- Income (loss) before non-controlling interest and income taxes 20.1 (754.2) (540.9) (662.9) Income tax provision (2.6) (1.0) (1.3) (2.9) ---- ---- Net income (loss) 17.5 (755.2) (542.2) (665.8) Net loss attributable to the non- controlling interest (1.3) (0.3) (5.6) (0.3) Net income (loss) attributable to EnLink Midstream Partners, LP $18.8 $(754.9) $(536.6) $(665.5) ===== ======= ======= ======= General partner interest in net income $10.8 $6.3 $28.8 $50.2 ===== ==== ===== ===== Limited partners' interest in net loss attributable to EnLink Midstream Partners, LP $(11.4) $(745.2) $(602.1) $(700.5) ====== ======= ======= Class C partners' interest in net loss attributable to EnLink Midstream Partners, LP $ - $(16.0) $(12.5) $(15.2) === === ====== ====== ====== Preferred interest in net income attributable to EnLink Midstream Partners, LP $19.4 $ - $49.2 $ - ===== === === ===== === === Net loss attributable to EnLink Midstream Partners, LP per limited partners' unit: Basic common unit $(0.03) $(2.32) $(1.82) $(2.38) ====== ====== ====== ====== Diluted common unit unit $(0.03) $(2.32) $(1.82) $(2.38) ====== ====== ====== ======

    (1) Includes affiliate cost of sales of $33.7 million and $51.9 million for the three months ended September 30, 2016 and 2015, respectively, and $126.0 million and $91.7 million for the nine months ended September 30, 2016 and 2015, respectively. (2) Includes affiliate operating expenses of $0.1 million and $0.1 million for the three months ended September 30, 2016 and 2015, respectively, and $0.4 million and $0.3 million for the nine months ended September 30, 2016 and 2015, respectively. (3) Includes affiliate general and administrative expenses of $0.1 and $0.2 million for the three and nine months ended September 30, 2015, respectively.

    EnLink Midstream Partners, LP Reconciliation of Operating Income (Loss) to Gross Operating Margin (All amounts in millions except ratios and per unit amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- (in millions) Operating income (loss) $66.9 $(730.5) $(402.6) $(608.2) Add (deduct): Operating expenses 98.0 105.0 296.3 312.6 General and administrative expenses 28.3 33.5 90.6 102.3 (Gain) loss on disposition of assets (3.0) 3.2 (2.9) 3.2 Depreciation and amortization 126.2 98.4 373.0 289.1 Impairments - 799.2 566.3 799.2 Gross operating margin $316.4 $308.8 $920.7 $898.2 ====== ====== ====== ======

    EnLink Midstream Partners, LP Reconciliation of Net Income (Loss) to Adjusted EBITDA and Distributable Cash Flow and Calculation of Coverage Ratio (All amounts in millions except ratios and per unit amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- (in millions) Net income (loss) $17.5 $(755.2) $(542.2) $(665.8) Interest expense 48.0 30.2 137.9 71.5 Depreciation and amortization 126.2 98.4 373.0 289.1 Impairments - 799.2 566.3 799.2 (Income) loss from unconsolidated affiliate investments (1.1) (6.4) 0.5 (16.1) Distribution from unconsolidated affiliate investments (1) 4.7 12.2 19.6 31.4 (Gain) loss on disposition of assets (3.0) 3.2 (2.9) 3.2 Unit-based compensation 7.3 7.3 22.5 28.6 Income taxes 2.6 1.0 1.3 2.9 Loss on non-cash derivatives 1.6 0.2 16.0 6.4 Payments under onerous performance obligation offset to other current and long- term liabilities (4.5) (4.5) (13.5) (13.5) Other (2) 1.5 1.4 7.5 10.8 --- --- --- ---- Adjusted EBITDA before non- controlling interest $200.8 $187.0 $586.0 $547.7 ------ ------ ------ ------ Non-controlling interest share of adjusted EBITDA (3) (3.3) 0.3 (6.1) 0.3 Transferred interest adjusted EBITDA (4) - - - (55.8) --- --- --- ----- Adjusted EBITDA, net to EnLink Midstream Partners, LP $197.5 $187.3 $579.9 $492.2 ------ ------ ------ ------ Interest expense (48.0) (30.2) (137.9) (71.5) Amortization of Tall Oak installment payable discount included in interest expense (5) 13.3 - 39.0 - Non-cash adjustment for mandatorily redeemable non- controlling interest - 1.3 0.3 (2.1) Interest Rate Swap (6) 0.4 - 0.4 (3.6) Cash taxes and other (2.6) (1.0) (1.6) (2.5) Maintenance capital expenditures (6.2) (9.6) (19.3) (32.0) ----- Distributable cash flow $154.4 $147.8 $460.8 $380.5 ====== ====== ====== ====== $0.390 $0.390 $1.17 $1.155 Distributions declared per limited partner unit Actual declared distribution (7) $148.7 $140.2 $437.7 $379.2 Distribution Coverage 1.04x 1.05x 1.05x 1.00x

    (1) Distributions for the three and nine months ended September 30, 2016 do not include $32.7 million of distributions received from HEP during the third quarter of 2016 attributable to the redemption of preferred units in HEP that ENLK previously held. The preferred units were issued to us by HEP during the second and third quarters of 2016 for contributions of $29.5 million and $3.2 million, respectively. (2) Includes the following: accretion expense associated with asset retirement obligations; reimbursed employee costs from Devon and LPC, which are costs reimbursed to us by previous employer pursuant to acquisition or merger; successful acquisition transaction costs which we do not consider in determining adjusted EBITDA because operating cash flows are not used to fund such costs; and non-cash rent which relates to lease incentives pro- rated over the lease term. (3) Non-controlling interest share of adjusted EBITDA includes ENLC's 16% share of adjusted EBITDA from EnLink Oklahoma T.O., NGP's 49.9% share of adjusted EBITDA from the Delaware Basin JV and the NCI share of adjusted EBITDA from the E2 entities. (4) Represents recast adjusted EBITDA from assets acquired from ENLC and Devon in drop down transactions during the first half of 2015 for the period prior to the date of the drop down transactions. (5) Amortization of the Tall Oak acquisition installment payable discount is considered non-cash interest under our credit facility since the payment under the payable is consideration for the acquisition of the Tall Oak assets. (6) During the second quarter of 2015 and third quarter of 2016, ENLK entered into interest rate swap arrangements to mitigate ENLK's exposure to interest rate movements prior to ENLK's note issuances. The gain on settlement of the interest rate swaps was considered excess proceeds for the note issuance and is therefore excluded from distributable cash flow. (7) The actual declared distribution does not assume full quarter distributions on the Class D units in the first quarter of 2015 or Class E units in the second quarter of 2015.

    EnLink Midstream Partners, LP Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDA and Distributable Cash Flow (All amounts in millions) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- (in millions) Net cash provided by operating activities $209.6 $215.7 $509.2 $508.0 Interest expense, net (1) 34.5 28.8 98.7 73.5 Current income tax 2.6 1.0 1.6 2.9 Distributions from unconsolidated affiliate investment in excess of earnings (2) 4.1 5.4 18.9 14.3 Other (3) 1.0 1.8 6.3 10.4 Changes in operating assets and liabilities which provided cash: Accounts receivable, accrued revenues, inventories and other (0.2) (66.9) 14.2 (105.9) Accounts payable, accrued gas and crude oil purchases and other (4) (50.8) 1.2 (62.9) 44.5 ----- --- ----- ---- Adjusted EBITDA before non- controlling interest $200.8 $187.0 $586.0 $547.7 Non-controlling interest share of adjusted EBITDA (5) (3.3) 0.3 (6.1) 0.3 Transferred interest adjusted EBITDA (6) - - - (55.8) --- --- --- ----- Adjusted EBITDA, net to EnLink Midstream Partners, LP $197.5 $187.3 $579.9 $492.2 ------ ------ ------ ------ Interest expense (48.0) (30.2) (137.9) (71.5) Amortization of Tall Oak installment payable discount included in interest expense (7) 13.3 - 39.0 - Non-cash adjustment for mandatorily redeemable non- controlling interest - 1.3 0.3 (2.1) Interest Rate Swap (8) 0.4 - 0.4 (3.6) Cash taxes and other (2.6) (1.0) (1.6) (2.5) Maintenance capital expenditures (6.2) (9.6) (19.3) (32.0) ---- ---- ----- ----- Distributable cash flow $154.4 $147.8 $460.8 $380.5 ====== ====== ====== ======

    (1) Net of amortization of debt issuance costs, discount and premium, and valuation adjustment for mandatorily redeemable non- controlling interest included in interest expense but not included in net cash provided by operating activities. (2) Distributions for the three and nine months ended September 30, 2016 do not include $32.7 million of distributions received from HEP during the third quarter of 2016 attributable to the redemption of preferred units in HEP that ENLK previously held. The preferred units were issued to us by HEP during the second and third quarters of 2016 for contributions of $29.5 million and $3.2 million, respectively. (3) Includes the following: reimbursed employee costs from Devon and LPC, which are costs reimbursed to us by previous employer pursuant to acquisition or merger; and successful acquisition transaction costs which we do not consider in determining adjusted EBITDA because operating cash flows are not used to fund such costs. (4) Net of payments under onerous performance obligation offset to other current and long-term liabilities. (5) Non-controlling interest share of adjusted EBITDA includes ENLC's 16% share of adjusted EBITDA from EnLink Oklahoma T.O., NGP's 49.9% share of adjusted EBITDA from the Delaware Basin JV and the NCI share of adjusted EBITDA from the E2 entities. (6) Represents recast adjusted EBITDA from assets acquired from ENLC and Devon in drop down transactions during the first half of 2015 for the period prior to the date of the drop down transactions. (7) Amortization of the Tall Oak installment payable discount is considered non-cash interest under our credit facility since the payment under the payable is consideration for the acquisition of the Tall Oak assets. (8) During the second quarter of 2015 and third quarter of 2016, we entered into interest rate swap arrangements to mitigate our exposure to interest rate movements prior to our note issuances. The gain on settlement of the interest rate swaps was considered excess proceeds for the note issuance and is therefore excluded from distributable cash flow.

    EnLink Midstream Partners, LP Operating Data Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- Midstream Volumes: Texas Gathering and Transportation (MMBtu/d) 2,580,300 2,640,300 2,657,600 2,705,900 Processing (MMBtu/d) 1,172,900 1,244,100 1,188,100 1,214,500 Louisiana Gathering and Transportation (MMBtu/d) 1,754,400 1,516,400 1,602,400 1,444,700 Processing (MMBtu/d) 493,900 509,100 496,400 488,200 NGL Fractionation (Gals/d) 5,259,400 6,370,600 5,194,664 5,957,000 Oklahoma Gathering and Transportation (MMBtu/d) 633,000 391,100 620,300 411,800 Processing (MMBtu/d) 583,200 348,900 571,800 325,500 Crude and Condensate Crude Oil Handling (Bbls/d) 72,800 147,300 98,300 130,800 Brine Disposal (Bbls/d) 3,700 4,200 3,500 3,900

    EnLink Midstream, LLC Selected Financial Data (All amounts in millions except per unit amounts) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 (Unaudited) (In millions, except per unit amounts) ------------------------------------- Total revenues $1,104.6 $1,170.6 $3,027.5 $3,385.6 Cost of sales (1) 788.2 861.8 2,106.8 2,487.4 ----- ----- ------- ------- Gross operating margin 316.4 308.8 920.7 898.2 Operating costs and expenses: Operating expenses (2) 98.0 105.0 296.3 312.6 General and administrative (3) 29.3 34.8 94.7 105.6 (Gain) loss on disposition of assets (3.0) 3.2 (2.9) 3.2 Depreciation and amortization 126.2 98.4 373.0 289.1 Impairments - 799.2 873.3 799.2 Total operating costs and expenses 250.5 1,040.6 1,634.4 1,509.7 ----- ------- ------- ------- Operating income (loss) 65.9 (731.8) (713.7) (611.5) Other income (expense): Interest expense, net of interest income (48.4) (30.4) (138.9) (72.1) Income (loss) from unconsolidated affiliates 1.1 6.4 (0.5) 16.1 Other income 0.1 0.1 0.1 0.6 --- --- Total other expense (47.2) (23.9) (139.3) (55.4) ----- ----- ------ ----- Income (loss) before non-controlling interest and income taxes 18.7 (755.7) (853.0) (666.9) Income tax provision (7.6) (0.2) (6.0) (21.1) ---- ---- Net income (loss) 11.1 (755.9) (859.0) (688.0) Net income (loss) attributable to the non-controlling interest 10.4 (562.5) (402.9) (526.1) Net income (loss) attributable to EnLink Midstream, LLC $0.7 $(193.4) $(456.1) $(161.9) ==== ======= ======= ======= Devon investment interest in net income $ - $ - $ - $0.7 === === === === === === ==== EnLink Midstream, LLC interest in net income (loss) $0.7 $(193.4) $(456.1) $(162.6) ==== ======= ======= ======= Net income (loss) attributable to EnLink Midstream, LLC per unit: Basic common unit $ - $(1.18) $(2.54) $(0.99) --- --- ------ Diluted common unit $ - $(1.18) $(2.54) $(0.99) === === ====== ====== ======

    (1) Includes affiliate cost of sales of $33.7 million and $51.9 million for the three months ended September 30, 2016 and 2015, respectively, and $126.0 million and $91.7 million for the nine months ended September 30, 2016 and 2015, respectively. (2) Includes affiliate operating expenses of $0.1 million and $0.1 million for the three months ended September 30, 2016 and 2015, respectively, and $0.4 million and $0.3 million for the nine months ended September 30, 2016 and 2015, respectively. (3) Includes affiliate general and administrative expenses of $0.1 million and $0.3 million for the three and nine months ended September 30, 2015, respectively.

    EnLink Midstream, LLC Cash Available for Distribution and Calculation of Coverage Ratio (All amounts in millions except ratios and per unit amounts) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Distribution declared by ENLK associated with (1): General partner interest $0.5 $0.6 $1.6 $1.8 Incentive distribution rights 14.4 13.6 42.4 33.7 ENLK common units owned 34.6 33.4 103.6 70.0 ---- ---- ----- ---- Total share of ENLK distributions declared $49.5 $47.6 $147.6 $105.5 Transferred interest EBITDA (2) - - - 53.7 Adjusted EBITDA of EnLink Oklahoma T.O. (3) 2.9 $ - 5.9 - Transaction costs (4) - $ - 0.6 - --- Total cash available $52.4 $47.6 $154.1 $159.2 ----- ----- ------ ------ Uses of cash: General and administrative expenses (0.9) (1.1) (3.8) (3.0) Current income taxes (5) - 1.2 - - Interest expense (0.4) (0.2) (1.0) (0.7) Maintenance capital expenditures (6) - - - (4.0) Total cash used $(1.3) $(0.1) $(4.8) $(7.7) ENLC cash available for distribution $51.1 $47.5 $149.3 $151.5 ===== ===== ====== ====== Distribution declared per ENLC unit $0.255 $0.255 $0.765 $0.750 Cash distribution declared $46.4 $42.2 $139.4 $124.1 Distribution coverage 1.10x 1.12x 1.07x 1.22x

    (1) Represents distributions to be paid to ENLC on November 11, 2016 and distributions paid on August 11, 2016, May 12, 2016, November 12, 2015, August 14, 2015 and May 14, 2015. (2) Represents ENLC's interest in EnLink Midstream Holdings, LP's ("Midstream Holdings") adjusted EBITDA, which was disbursed to ENLC by Midstream Holdings on a monthly basis prior to the transfer of all interests in Midstream Holdings to the Partnership in drop down transactions (the "EMH Drop Downs"). Midstream Holdings' adjusted EBITDA is defined as net income (loss) plus interest expense, provision for income taxes, depreciation and amortization expense, impairment expense, unit-based compensation, (gain) loss on non-cash derivatives, (gain) loss on disposition of assets, successful transaction costs, accretion expense associated with asset retirement obligations, reimbursed employee costs, non-cash rent, and distributions from unconsolidated affiliate investments, less payments under onerous performance obligations, non-controlling interest, and income (loss) from unconsolidated affiliate investments. (3) Represents ENLC's interest in EnLink Oklahoma T.O. adjusted EBITDA, which is disbursed to ENLC by EnLink Oklahoma T.O. on a monthly basis. EnLink Oklahoma T.O. adjusted EBITDA is defined as earnings before depreciation and amortization and provision for income taxes. (4) Represents acquisition transaction costs attributable to the Company's 16% interest in EnLink Oklahoma T.O., which are considered growth capital expenditures as part of the cost of the assets acquired. (5) Represents ENLC's stand-alone current tax expense. (6) Represents ENLC's interest in Midstream Holdings' maintenance capital expenditures prior to the EMH Drop Downs which is netted against the monthly disbursement of Midstream Holdings' adjusted EBITDA per (2) above. There are no maintenance capital expenditures attributable to ENLC's share of EnLink Oklahoma T.O. during 2016. All of EnLink Oklahoma T.O. capital expenditures during 2016 are growth related which are not considered in determining cash flow available for distribution.

    EnLink Midstream, LLC Reconciliation of Net Income (Loss) of ENLC to ENLC Cash Available for Distribution (All amounts in millions) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Net income (loss) of ENLC $11.1 $(755.9) $(859.0) $(688.0) Less: Net income (loss) attributable to ENLK 18.8 (754.9) (536.6) (665.5) ---- ------ ------ ------ Net loss of ENLC excluding ENLK $(7.7) $(1.0) $(322.4) $(22.5) ENLC's share of distributions from ENLK (1) 49.4 47.6 147.5 105.5 ENLC's interest in EnLink Oklahoma T.O. depreciation 3.6 - 10.4 - ENLC deferred income tax (benefit) expense (2) 5.0 0.5 4.7 18.3 Maintenance capital expenditures (3) - - - (4.0) Transferred interest EBITDA (4) - - - 53.7 ENLC corporate goodwill impairment - - 307.0 - Other items (5) 0.8 0.4 2.1 0.5 --- --- ENLC cash available for distribution $51.1 $47.5 $149.3 $151.5 ===== ===== ====== ======

    (1) Represents distributions declared by ENLK and to be paid to ENLC on November 11, 2016 and distributions paid by ENLK to ENLC on August 11, 2016, May 12, 2016, November 12, 2015, August 14, 2015 and May 14, 2015. (2) Represents ENLC's stand-alone deferred taxes. (3) There are no maintenance capital expenditures attributable to ENLC's share of EnLink Oklahoma T.O. during 2016. All of EnLink Oklahoma T.O. capital expenditures during 2016 are growth related which are not considered in determining cash flow available for distribution. For the three and nine month periods ended September 30, 2015, the amounts represent ENLC's interest in maintenance capital expenditures of Midstream Holdings prior to the EMH Drop Downs during the first half of 2015. (4) Represents ENLC's interest in the adjusted EBITDA of Midstream Holdings prior to the EMH Drop Downs. Adjusted EBITDA of Midstream Holdings' is defined as maintenance capital expenditures prior to the EMH Drop Downs netted against the monthly disbursement of Midstream Holdings' adjusted EBITDA. (5) Represents transaction costs attributable to ENLC's share of acquisition of EnLink Oklahoma T.O. and other non-cash items not included in cash available for distributions.

    Investors Contact: Kate Walsh, Vice President of Investor Relations, 214-721-9696, kate.walsh@enlink.com
    Media Contact: Jill McMillan, Vice President of Public Relations, 214-721-9271, jill.mcmillan@enlink.com

    Logo - http://photos.prnewswire.com/prnh/20160404/350984LOGO

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/enlink-midstream-reports-third-quarter-2016-results-refines-guidance-and-provides-operational-update-300355442.html

    Photo: http://photos.prnewswire.com/prnh/20160404/350984LOGO EnLink Midstream

    Web site: http://www.enlink.com/




    TriNet Announces Third Quarter Fiscal 2016 Results15% Growth in Total Revenues and 21% growth in Net Service Revenues for the Third Quarter6% Increase in Worksite Employees (WSEs), to approximately 334,000

    SAN LEANDRO, Calif., Nov. 1, 2016 /PRNewswire/ -- TriNet Group, Inc. , a leading provider of comprehensive human resources solutions for small to midsize businesses, today announced financial results for the third quarter ended September 30, 2016.

    Third quarter highlights include:

    --  Total revenues increased 15% to $770.5 million, while Net Service
    Revenues increased 21% to $161.0 million, each as compared to the same
    period last year.
    --  Total WSEs at September 30, 2016 increased 6% from September 30, 2015,
    to approximately 334,000.
    --  Net income was $14.6 million, or $0.20 per diluted share, compared to
    net income of $3.1 million, or $0.04 per diluted share, in the same
    period last year.
    --  Adjusted Net Income was $20.8 million, or $0.29 per diluted share,
    compared to Adjusted Net Income of $13.3 million, or $0.19 per diluted
    share, in the same period last year.
    --  Adjusted EBITDA was $45.4 million, a 47% increase from the same period
    last year.
    

    "Our third quarter results reflect continued progress on our strategic growth initiatives," said Burton M. Goldfield, TriNet's President and CEO. "During the quarter, we launched a new vertical product, TriNet Technology, and today we announced the availability of our fourth industry specific product, TriNet Financial Services, strengthening our ability to serve our key vertical markets. We believe we are well positioned to end the year with strong momentum."

    TriNet's total revenues for the third quarter of 2016 increased 15% from the third quarter of 2015 to $770.5 million, while Net Service Revenues increased 21% from the third quarter of 2015 to $161.0 million. Net Service Revenues consisted of professional service revenues of $110.5 million and Net Insurance Service Revenues of $50.5 million. Net Insurance Service Revenues consisted of insurance service revenues of $660.0 million, less insurance costs of $609.4 million. Professional service revenues for the third quarter of 2016 increased 11%, and Net Insurance Service Revenues increased 48%, compared to the third quarter of 2015. Results for the third quarter of 2016 reflect a net increase of 18,848 WSEs since September 30, 2015 representing 6% growth. TriNet ended the third quarter with 406 Total Sales Representatives, down from 479 at the end of the third quarter of 2015, a decrease of 15%.

    At September 30, 2016, TriNet had cash and cash equivalents of $160.6 million and total debt of $472.5 million.

    Earnings Conference Call and Audio Webcast
    TriNet will host a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its quarterly results and the outlook for the 2016 fourth quarter. TriNet encourages participants to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. To pre-register, go to: http://dpregister.com/10094164. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the "TriNet Conference Call." The live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at http://investor.trinet.com. A replay of the webcast will be available on this site for approximately one year. A telephonic replay will be available for one week following the conference call at +1 (412) 317-0088 conference ID: 10094164.

    About TriNet
    TriNet is a leading provider of comprehensive human resources solutions for small to midsize businesses, or SMBs. We enhance business productivity by enabling our clients to outsource their human resources, or HR, function to one strategic partner, allowing our clients to focus on operating and growing their core businesses. Our HR solutions include services such as multi-state payroll processing and tax administration, employee benefits programs (including health insurance and retirement plans), workers compensation insurance and claims management, federal, state and local labor, employment and benefit law compliance, risk mitigation, expense and time management, and other human capital consulting services, as well as our proprietary, cloud-based HR software systems. Our services are delivered by our expert team of HR professionals and enabled by our proprietary, cloud-based technology platform, which allows our clients and their employees to efficiently conduct their HR transactions anytime and anywhere. For more information, please visit http://www.trinet.com.

    Use of Non-GAAP Financial Measures
    Reconciliations of non-GAAP financial measures to TriNet's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Non-GAAP Financial Measures."

    Forward-Looking Statements
    This press release contains, and statements made during the above referenced conference call will contain, forward-looking statements including, among other things, TriNet's expectations regarding: the growth of its customer base, its ability to deepen its presence across a range of industry sectors, its ability to roll out additional product offerings as and when planned, its ability to make enhancements to its technology platform, its ability to execute on its vertical market strategy and penetrate the market for HR solutions for small to midsize businesses, and other expectations, outlooks and forecasts on its future business, operational and financial performance. These statements are not guarantees of future performance, but are based on management's expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. 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 our current expectations and any past results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: risks associated with the market acceptance of outsourcing the HR function, and the anticipated benefits associated with the use of a bundled HR solution; our ability to continue to expand our direct sales force and the efficacy of our sales and marketing efforts; our ability to gain new clients, and our clients' ability to grow and gain more employees; our ability to effectively acquire and integrate new businesses; the effects of seasonal trends on our results of operations; the unpredictable nature of our costs and operating expenses, in particular our insurance costs; changes to and our ability to comply with laws and regulations, including both those applicable to the co-employment relationship as well as those applicable to our clients' businesses and their employees; the continuing implementation of the Affordable Care Act, including its application to the co-employer relationship; our ability to effectively manage our growth; the effects of increased competition and our ability to compete effectively; and our ability to comply with the restrictions of our credit facility and meet our debt obligations.

    Further information on risks that could affect TriNet's results is included in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K filed with the Commission on April 1, 2016, which could cause actual results to vary from expectations. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements, and we do not assume any obligation, and do not intend, to update any of our forward-looking statements, whether as a result of new information or otherwise.

    Contacts: Investors: Media: Alex Bauer Jock Breitwieser TriNet TriNet Investorrelations@TriNet.com Jock.Breitwieser@TriNet.com ---------------------------- --------------------------- (510) 875-7201 (510) 875-7250

    TriNet, Ambitions Realized and the TriNet logo are registered trademarks of TriNet.


    TriNet Group, Inc. and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Professional service revenues $110,493 $99,473 $332,489 $294,288 Insurance service revenues 659,964 568,535 1,916,753 1,639,305 ------- ------- --------- --------- Total revenues 770,457 668,008 2,249,242 1,933,593 ------- ------- --------- --------- Costs and operating expenses: Insurance costs 609,422 534,481 1,775,784 1,535,678 Cost of providing services (exclusive of depreciation and amortization of intangible assets) 50,142 37,540 139,881 111,582 Sales and marketing 41,470 44,997 133,978 123,740 General and administrative 22,477 17,726 69,078 48,991 Systems development and programming costs 8,124 6,991 20,970 21,849 Amortization of intangible assets 4,662 10,459 14,647 32,284 Depreciation 5,188 4,132 13,663 10,761 ----- ----- ------ ------ Total costs and operating expenses 741,485 656,326 2,168,001 1,884,885 ------- ------- --------- --------- Operating income 28,972 11,682 81,241 48,708 Other income (expense): Interest expense and bank fees (5,597) (4,685) (15,677) (14,653) Other, net 313 355 434 873 --- --- --- --- Income before provision for income taxes 23,688 7,352 65,998 34,928 Provision for income taxes 9,107 4,255 27,558 17,328 ----- ----- ------ ------ Net income $14,581 $3,097 $38,440 $17,600 ======= ====== ======= ======= Net income per share: Basic $0.21 $0.04 $0.55 $0.25 Diluted $0.20 $0.04 $0.53 $0.24 Weighted average shares: Basic 70,187,989 70,237,737 70,478,266 70,247,035 Diluted 71,964,603 72,087,917 72,126,060 72,757,277


    TriNet Group, Inc. and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) September 30, December 31, 2016 2015 ---- ---- Assets Current assets: Cash and cash equivalents $160,558 $166,178 Restricted cash 14,563 14,557 Prepaid income taxes 6,310 4,105 Prepaid expenses 13,018 8,579 Other current assets 2,173 1,359 Worksite employee related assets 847,545 1,373,386 ------- --------- Total current assets 1,044,167 1,568,164 Workers compensation receivable 40,578 29,204 Restricted cash and available for sale investments 122,378 101,806 Property and equipment, net 53,141 37,844 Goodwill 289,207 289,207 Other intangible assets, net 32,424 46,772 Other assets 18,431 19,452 ------ ------ Total assets $1,600,326 $2,092,449 ========== ========== Liabilities and stockholders' equity Current liabilities: Accounts payable $18,461 $12,904 Accrued corporate wages 29,039 28,963 Current portion of notes payable and borrowings under capital leases, net 36,497 32,970 Other current liabilities 11,960 11,402 Worksite employee related liabilities 842,552 1,369,497 ------- --------- Total current liabilities 938,509 1,455,736 Notes payable and borrowings under capital leases, net, less current portion 431,638 460,965 Workers compensation liabilities 138,912 105,481 Deferred income taxes 54,411 54,641 Other liabilities 7,941 7,545 Total liabilities 1,571,411 2,084,368 Commitments and contingencies Stockholders' equity: Preferred stock, $0.000025 per share stated value; 20,000,000 shares authorized; - - no shares issued and outstanding at September 30, 2016 and December 31, 2015 Common stock, $0.000025 per share stated value; 750,000,000 shares authorized; 522,910 494,397 69,659,283 and 70,371,425 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively Accumulated deficit (493,574) (485,595) Accumulated other comprehensive loss (421) (721) ---- ---- Total stockholders' equity 28,915 8,081 ------ ----- Total liabilities and stockholders' equity $1,600,326 $2,092,449 ========== ==========

    TriNet Group, Inc. and Subsidiaries CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended September 30, ------------------------------- 2016 2015 ---- ---- Operating activities Net income $38,440 $17,600 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 27,810 42,036 Deferred income taxes (346) 1,835 Stock-based compensation 20,169 12,991 Excess tax credits received from equity incentive plan activity (2,591) (20,327) Changes in operating assets and liabilities: Restricted cash and available for sale investments (31,409) (21,198) Prepaid expenses and other current assets (5,253) (3,201) Workers compensation receivables (11,374) 3,294 Other assets 438 (14,585) Accounts payable 4,538 2,522 Prepaid income taxes 386 27,574 Accrued corporate wages and other current liabilities 4,548 9,103 Workers compensation and other liabilities 33,856 47,419 Worksite employee related assets 525,841 768,010 Worksite employee related liabilities (526,945) (768,552) -------- -------- Net cash provided by operating activities 78,108 104,521 Investing activities Acquisitions of businesses (300) (4,750) Purchases of restricted investments (14,959) (14,989) Proceeds from maturities of restricted investments 25,790 1,275 Purchase of property and equipment (27,942) (14,747) ------- ------- Net cash used in investing activities (17,411) (33,211) Financing activities Proceeds from issuance of notes payable 57,978 - Payments for extinguishment of debt (57,563) - Payment of debt issuance costs (1,376) - Repayment of notes payable and capital leases (27,506) (40,493) Proceeds from issuance of common stock on exercised options 3,584 6,464 Proceeds from issuance of common stock on employee stock purchase plan 2,304 2,723 Repurchase of common stock (43,747) (48,364) Awards effectively repurchased for required employee withholding taxes (2,672) (576) Excess tax credits received from equity incentive plan activity 2,591 20,327 Tax credit received for deductible IPO transaction costs - 822 --- --- Net cash used in financing activities (66,407) (59,097) Effect of exchange rate changes on cash and cash equivalents 90 (239) --- ---- Net increase in cash and cash equivalents (5,620) 11,974 ------ ------ Cash and cash equivalents at beginning of period 166,178 134,341 Cash and cash equivalents at end of period $160,558 $146,315 ======== ========

    Key Financial and Operating Metrics

    We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. Our key financial and operating metrics for the periods presented were as follows:

    Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- Key Financial and Operating Metrics 2016 2015 2016 2015 ---- ---- ---- ---- Net Insurance Service Revenues (in thousands) $50,542 $34,054 $140,969 $103,627 Net Service Revenues (in thousands) $161,035 $133,527 $473,458 $397,915 Total WSEs 333,778 314,930 Total Sales Representatives 406 479

    Non-GAAP Financial Measures

    We use Net Insurance Service Revenues, Net Service Revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share - diluted to provide an additional view of our operational performance. Net Insurance Service Revenues, Net Service Revenues, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share - diluted are financial measures that are not prepared in accordance with GAAP. We define Net Insurance Service Revenues as insurance service revenues less insurance costs, which include the premiums we pay to insurance carriers for the health and workers compensation insurance coverage provided to our clients and WSEs and the reimbursements we pay to the insurance carriers for claim payments within our insurance deductible layer. We define Net Service Revenues as the sum of professional service revenues and Net Insurance Service Revenues. We define Adjusted EBITDA as net income, excluding the effects of our income tax provision, interest expense, depreciation, amortization of intangible assets and stock-based compensation. We define Adjusted Net Income as net income, excluding the effects of our effective income tax rate, stock-based compensation, amortization of intangible assets, non-cash interest expense, debt prepayment premium, and the income tax effect of these pre-tax adjustments at our effective tax rate. For purposes of our non-GAAP financial presentation, as a result of a 2015 increase in New York City tax rates and an increase in blended state rates, we have adjusted the effective tax rate to 42.5% for the periods ended September 30, 2016, from 41.5% for the periods ended September 30, 2015. Each of these effective tax rates exclude income tax on non-deductible stock-based compensation and discrete items including the cumulative effect of state law changes. Non-cash interest expense represents amortization and write-off of our debt issuance costs.

    We believe that Net Insurance Service Revenues, Net Service Revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Net Income per share - diluted are useful for our stockholders and board of directors by helping them to identify trends in our business and understand how our management evaluates our business. We believe that Net Insurance Service Revenues provides a useful measure of revenues from our provision of cost effective insurance services to our clients. We believe that Net Service Revenues provides a useful measure of total revenues for the two main components of our revenues calculated on a consistent basis. We believe that the use of Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share - diluted provides useful period-to-period comparisons and analysis of trends in our business, as they exclude certain non-cash expenses. We use Net Insurance Service Revenues, Net Service Revenues, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share - diluted to monitor and evaluate our operating results and trends on an ongoing basis and internally for operating, budgeting and financial planning purposes, in addition to allocating our resources to enhance the financial performance of our business and evaluating the effectiveness of our business strategies. We also use Net Service Revenues and Adjusted EBITDA in determining the incentive compensation for management.

    Net Insurance Service Revenues, Net Service Revenues, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share - diluted are not prepared in accordance with, and should not be considered in isolation of, or as an alternative to, measurements required by GAAP. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. As non-GAAP measures, Net Insurance Service Revenues, Net Service Revenues, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share - diluted have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. In particular:

    --  Net Insurance Service Revenues and Net Service Revenues are reduced by
    the insurance costs that we pay to insurance carriers;
    --  Adjusted EBITDA does not reflect interest expense, or the cash
    requirements necessary to service interest or principal payments on our
    debt;
    --  Adjusted EBITDA does not reflect the amounts we paid in taxes or other
    components of our tax provision;
    --  Adjusted EBITDA does not reflect our cash expenditures or future
    requirements for capital expenditures or contractual commitments;
    --  Adjusted EBITDA and Adjusted Net Income do not reflect changes in, or
    cash requirements for, our working capital needs;
    --  Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share -
    diluted do not reflect the non-cash component of employee compensation;
    --  Although depreciation and amortization of intangible assets are non-cash
    charges, the assets being depreciated and amortized often will have to
    be replaced in the future, and Adjusted EBITDA does not reflect any cash
    requirements for such replacements; and
    --  Other companies in our industry may calculate these measures or similar
    measures differently than we do, limiting their usefulness as a
    comparative measure.
    

    Because of these limitations, you should consider Net Insurance Service Revenues, Net Service Revenues, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income per share - diluted alongside other financial performance measures, including total revenues, net income and our other financial results presented in accordance with GAAP.

    The table below sets forth a reconciliation of GAAP insurance service revenues to Net Insurance Service Revenues:

    Three Months Ended Change Nine Months Ended Change September 30, 2016 vs. 2015 September 30, 2016 vs. 2015 ------------- ------------- ------------- ------------- 2016 2015 $ % 2016 2015 $ % ---- ---- --- --- ---- ---- --- --- (in thousands, except percentages) Insurance service revenues $659,964 $568,535 $91,429 16% $1,916,753 $1,639,305 $277,448 17% Less: Insurance costs 609,422 534,481 74,941 14% 1,775,784 1,535,678 240,106 16% ------- ------- ------ --------- --------- ------- Net Insurance Service Revenues $50,542 $34,054 $16,488 48% $140,969 $103,627 $37,342 36% ======= ======= ======= ======== ======== =======

    The table below sets forth a reconciliation of GAAP total revenues to Net Service Revenues:

    Three Months Ended Change Nine Months Ended Change September 30, 2016 vs. 2015 September 30, 2016 vs. 2015 ------------- ------------- ------------- ------------- 2016 2015 $ % 2016 2015 $ % ---- ---- --- --- ---- ---- --- --- (in thousands, except percentages) Total revenues $770,457 $668,008 $102,449 15% $2,249,242 $1,933,593 $315,649 16% Less: Insurance costs 609,422 534,481 74,941 14% 1,775,784 1,535,678 240,106 16% ------- ------- ------ --------- --------- ------- Net Service Revenues $161,035 $133,527 $27,508 21% $473,458 $397,915 $75,543 19% ======== ======== ======= ======== ======== =======

    The table below sets forth a reconciliation of GAAP net income to Adjusted EBITDA:

    Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- (in thousands) Net income $14,581 $3,097 $38,440 $17,600 Provision for income taxes 9,107 4,255 27,558 17,328 Stock-based compensation 6,264 4,188 20,169 12,991 Interest expense and bank fees 5,597 4,685 15,677 14,653 Depreciation 5,188 4,132 13,663 10,761 Amortization of intangible assets 4,662 10,459 14,647 32,284 Adjusted EBITDA $45,399 $30,816 $130,154 $105,617 ======= ======= ======== ========

    The table below sets forth a reconciliation of GAAP net income to Adjusted Net Income and Adjusted Net Income per share - diluted:

    Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- (in thousands) Net income $14,581 $3,097 $38,440 $17,600 Effective income tax rate adjustment (960) 1,204 (491) 2,833 Stock-based compensation 6,264 4,188 20,169 12,991 Amortization of intangible assets 4,662 10,459 14,647 32,284 Non-cash interest expense 1,559 799 3,183 2,820 Income tax impact of pre-tax adjustments (5,306) (6,410) (16,150) (19,959) Adjusted Net Income $20,800 $13,337 $59,798 $48,569 ======= ======= ======= ======= GAAP Weighted average shares of common stock - 71,965 72,088 72,126 72,757 diluted Adjusted Net Income per share - diluted $0.29 $0.19 $0.83 $0.67 ===== ===== ===== =====

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/trinet-announces-third-quarter-fiscal-2016-results-300355364.html

    TriNet Group, Inc.

    Web site: http://www.trinet.com/




    MDA reports third quarter 2016 results, declares quarterly dividend

    VANCOUVER, BC, Nov. 1, 2016 /CNW/ - MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") , a global communications and information company, today reported financial results for the third quarter ended September 30, 2016.

    For the third quarter of 2016, consolidated revenues were $495.9 million compared to $515.4 million for the same period of 2015. The decrease reflected lower revenues from the Communications segment, partially offset by higher revenues from the Surveillance and Intelligence segment.

    Operating EBITDA(1) for the third quarter of 2016 was $84.3 million compared to $93.9 million for the same period of 2015. Operating EBITDA this quarter included a contract loss provision of $10.0 million on a program in the Surveillance and Intelligence segment. The Company considers this provision to be an isolated incident.

    Operating earnings(1) were $46.1 million, or $1.26 per share(1), compared to $54.6 million, or $1.50 per share, for the same period of last year.

    Net earnings under IFRS for the third quarter of 2016 were $41.8 million compared to $55.3 million for the corresponding period of 2015.

    The Company had total funded order backlog of $2.6 billion as at September 30, 2016, increasing slightly from the balance at the end of June 2016. Notable bookings announced during the third quarter included a contract with SiriusXM to build SXM-7 and SXM-8, two high power satellites.

    Since the start of the third quarter, three geostationary satellites and four low earth orbit (LEO) satellites built by the Company were successfully launched.

    The Company continued to make substantive progress to obtain facility security clearance for its operations in California, through which the Company can effectively pursue and execute the broad range of U.S. government contracts including defence and intelligence work. In addition to investments in organizational and required regulatory structure, the Company has also started building out a government business development and management team.

    During the quarter, the Company signed a US$400 million revolving securitization facility agreement with an international financial institution. On September 30, 2016, as an initial drawdown under the facility, the Company completed a transaction for net proceeds of $90.2 million (US$68.8 million).

    The Company has declared a quarterly dividend of $0.37 per common share payable on December 30, 2016 to shareholders of record at the close of business on December 15, 2016.

    Financial Highlights

    Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 ---- ---- ---- ---- ($ millions, except per common share amounts) Consolidated revenues 495.9 515.4 1,560.9 1,573.0 Operating EBITDA(1) 84.3 93.9 277.9 282.0 Operating earnings(1) 46.1 54.6 159.2 166.3 Operating earnings per share(1) 1.26 1.50 4.36 4.58 Net earnings 41.8 55.3 107.7 137.1 Net earnings per share, basic 1.15 1.53 2.96 3.79 Net earnings per share, diluted 1.12 1.41 2.92 3.64 Weighted average number of common shares outstanding: (millions) Basic 36.4 36.3 36.4 36.2 Diluted 36.6 36.5 36.5 36.3 ======= ==== ==== ==== ====

    (1) See section "Non-IFRS Financial Measures" in this earnings release.

    MDA's condensed consolidated interim financial statements and management's discussion and analysis (MD&A) for the three and nine months ended September 30, 2016 are available at: http://mdacorporation.com/corporate/investor/financial-reports

    About MDA

    MDA is a global communications and information company providing operational solutions to commercial and government organizations worldwide.

    MDA's business is focused on markets and customers with strong repeat business potential, primarily in the Communications sector and the Surveillance and Intelligence sector. In addition, the Company conducts a significant amount of advanced technology development.

    MDA's established global customer base is served by more than 4,800 employees operating from 15 locations in the United States, Canada, and internationally.

    The Company's common shares trade on the Toronto Stock Exchange under the symbol MDA.

    Investor/Analyst Conference Call

    MDA President and CEO Howard Lance and Executive Vice President and CFO Anil Wirasekara will host a Conference Call today, November 1, 2016 at 2:30 p.m. Pacific (5:30 p.m. Eastern) to discuss the financial results and to answer questions.

    To participate, dial toll free North America: 1-888-390-0546
    Toronto: 1-416-764-8688
    Vancouver: 1-778-383-7413

    The Conference Call will also be Webcast live at: http://mdacorporation.com/corporate/investor/events

    Telephone replay will be available from November 1, 2016, 5:00 p.m. Pacific (8:00 p.m. Eastern) to
    November 15, 2016, 2:30 p.m. Pacific (5:30 p.m. Eastern) at the following numbers:

    Toll free North America: 1-888-390-0541
    Toronto: 1-416-764-8677
    Passcode: 001201#

    Related Websites:
    www.mdacorporation.com

    Non-IFRS Financial Measures

    In addition to results reported in accordance with IFRS, the Company discloses operating earnings, operating earnings per share and operating EBITDA as supplemental indicators of its financial and operating performance.

    The Company defines operating earnings as net earnings excluding the impact of specified items affecting comparability, including, where applicable, non-operational income and expenses, amortization of acquisition related intangible assets, share-based compensation, and other gains or losses. The use of the term "non-operational income and expenses" is defined by the Company as those that do not impact operating decisions taken by the Company's management and is based upon the way the Company's management evaluates the performance of the Company's business for use in the Company's internal management reports. Income tax expense on operating earnings is computed using an estimated annual tax rate, adjusted to account for the specified items affecting comparability. Operating earnings per share is calculated using diluted weighted average shares outstanding and does not represent actual earnings per share attributable to shareholders. The Company believes that the disclosure of operating earnings and operating earnings per share allows investors to evaluate the operational and financial performance of the Company's ongoing business using the same evaluation measures that its management uses, and is therefore a useful indicator of the Company's performance or expected performance of recurring operations.

    The Company defines operating EBITDA as earnings before interest, taxes, depreciation and amortization, and adjusted for certain corporate expenses and items affecting comparability as specified in the calculation of operating earnings. Operating EBITDA is presented on a basis consistent with the Company's internal management reports. The Company discloses operating EBITDA to capture the profitability of its business before the impact of items not considered in management's evaluation of operating unit performance.

    Operating earnings, operating earnings per share and operating EBITDA do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other companies. The Company cautions readers to consider these non-IFRS financial measures in addition to, and not as an alternative for, measures calculated in accordance with IFRS.

    Three months Nine months ended ended September 30, September 30, 2016 2015 2016 2015 ---- ---- ---- ---- ($ millions) Operating EBITDA 84.3 93.9 277.9 282.0 Corporate expense (3.9) (2.9) (12.4) (8.2) Net finance expense (11.4) (11.6) (36.0) (34.6) Depreciation and amortization(1) (14.9) (15.6) (44.4) (43.2) Income tax expense on operating earnings (8.0) (9.2) (25.9) (29.7) ----------- ---- ---- ----- ----- Operating earnings 46.1 54.6 159.2 166.3 Items affecting comparability: Share-based compensation recovery (expense) 3.0 9.3 (24.5) (0.3) Amortization of acquisition related intangible assets (11.1) (10.5) (32.3) (29.9) Executive compensation settlement - - (3.0) - Enterprise improvement costs - (4.4) (4.8) (2.5) Foreign exchange differences 2.0 2.4 3.6 2.4 Income tax expense adjustment 1.8 3.9 9.5 1.1 ----------- --- --- --- --- Net earnings 41.8 55.3 107.7 137.1 ============ ==== ==== ===== =====

    (1) Excludes amortization of acquisition related intangible assets.

    The Company's MD&A for the three and nine months ended September 30, 2016 provides additional information regarding these financial metrics and the specified items affecting the comparability of net earnings.

    Forward-Looking Statements
    This earnings release and the associated conference call and webcast, which includes a business update, discussion of third quarter 2016 financial results, and question and answer session, may contain certain forward-looking statements and information, which reflect the current view of MacDonald, Dettwiler and Associates Ltd. ("MDA" or the "Company") with respect to future events and financial performance. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "would", "could", "should", "expect", "intend", "estimate", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of such terms or variations of them or similar terminology. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and represent management's best judgment based on facts and assumptions that management considers reasonable.

    Any such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. MDA cautions readers that should certain risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. The risks that could cause actual results to differ materially from current expectations include, but are not limited to: changes in government policies, priorities, funding levels, contracts or regulations and the failure to obtain necessary regulatory approvals and licenses; growth in the commercial satellite market is dependent on the growth in the businesses of the Company's customers and the ability of its customers to develop new services; failure of third party subcontractors to complete contracts for which the Company is the prime contractor and the limited number of suppliers for some components; inherent risks of performance on firm fixed price construction contracts and termination of contracts by customers for convenience; changes in estimates of total revenues and costs on contracts and non-receipt of payments on failure of the Company's satellites and products to perform successfully; potential for product liability or the occurrence of defects in products or systems and resulting loss of revenue and harm to the Company's reputation; quality issues and failure of systems to meet performance requirements or to be accepted by a customer; inclusion of construction performance incentives in many of the Company's customer contracts; potential for component failure or performance issues on the Company's on-orbit satellites and resulting loss of revenue and harm to MDA's reputation and failure of the Company to receive data for sales or of customers to purchase data; failure of the Company to manage its acquisitions and breaches of contract and indemnities and related risks on divestitures; certain customers are highly leveraged and may not fulfil their contractual payment obligations, including vendor financing; MDA's ability to obtain certain satellite construction contracts depends, in part, on its ability to provide the customer with partial financing of working capital and any financing provided by the Company may not be repaid or the Company may be called upon to make payments; many of the Company's costs are fixed and MDA may not be able to cut costs sufficiently to maintain profitability in the event of a downturn in its business; the availability of facility space and qualified personnel may affect MDA's ability to perform its contracts as efficiently as planned; dependence on electronic systems may be subject to data and system security threats and malfunctions; detrimental reliance on third parties for data; dependence on key employees, potential for work stoppages, and lack of oversight over a U.S. proxy board and management; failure to anticipate changes in technology, technical standards and offerings or comply with the requisite standards; failure to maintain technological advances and offer new products to retain customers and market position; significant competition with competitors that are larger or have greater resources and foreign currency fluctuations may increase competition from the Company's non-U.S. competitors; potential infringement of the intellectual property rights of others through licensed software or otherwise; inadequate protection of the Company's intellectual property rights; exposure to foreign currency fluctuations; changes in economic and political conditions; inability of suppliers or subcontractors to effect technology transfer; failure to maintain business alliances; uncertainty in financing arrangements and failure to obtain required financing on acceptable terms; changes in regulations, telecommunication standards and laws due to political and economic instability in the countries in which MDA conducts business; changes in U.S. and foreign laws and regulations, including U.S. export control and economic sanctions laws, governing MDA's business; wrongful call on letters of credit, guarantees and performance bonds; insufficient insurance against material claims or losses; exposure to fines and/or legal sanctions under anti-corruption laws; changes in customer security requirements and the resulting cancellation of contracts; reliance on information technology systems and threats of disruption from security breaches and cyber-attacks; and failure to comply with environmental regulations.

    You are referred to the risk factors described in MDA's most recent annual Management's Discussion and Analysis, Annual Information Form and other documents on file with the Canadian securities regulatory authorities, available on SEDAR, www.sedar.com or www.mdacorporation.com. The forward-looking statements and information contained in this earnings release and the associated conference call and webcast represent MDA's views only as of today's date. MDA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law, rule or regulation. You should not place undue reliance on forward-looking statements.

    The Toronto Stock Exchange has neither approved nor disapproved the form or content of the earnings release or the associated conference call and webcast.

    MacDonald, Dettwiler and Associates Ltd.

    CONTACT: Wendy Keyzer, MDA External Relations, (604) 231-2743,
    wendy@mdacorporation.com

    Web site: http://www.mda.ca/




    Airborne Wireless Network Appoints Earle Olson, As Vice President of Industry Relations

    SIMI VALLEY, Calif., Nov. 1, 2016 /PRNewswire/ -- Airborne Wireless Network is pleased to announce that it has appointed Mr. Earle Olson, Vice President of Industry Relations. Airborne Wireless Network has entered into a written employment agreement with Mr. Olson.

    Mr. Olson brings to Airborne Wireless Network more than 35 years experience in business development (most recently with TE Connectivity for the past 24 years ) with specialty experience in global commercial and military industries and a significant background in airborne applications from inflight entertainment and networking, to flight controls, sensors and more.

    Mr. Olson's acceptance of this position with Airborne Wireless Network complements its executive team's experience, as Mr. Olson's experience will be useful regarding connecting the aerial part of the Infinitus Super Highway to ground stations and related activity.

    Airborne Wireless Network
    www.airbornewirelessnetwork.com
    info@airbornewirelessnetwork.com
    805-583-4302

    This release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company's management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

    Risks and uncertainties include, but are not limited to, availability of capital, general industry conditions and competition; general economic factors; the impact of industry regulation; technological advances; new products and patents attained by competitors; challenges in new product development; manufacturing difficulties or delays; dependence on the effectiveness of the company's patents; and the exposure to litigation, including patent litigation, and/or regulatory actions.

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/airborne-wireless-network-appoints-earle-olson-as-vice-president-of-industry-relations-300355164.html

    Airborne Wireless Network

    Web site: http://www.airbornewirelessnetwork.com/




    ClearOne Announces Record Date for 2016 Fourth Quarter Dividend

    SALT LAKE CITY, Nov. 1, 2016 /PRNewswire/ -- ClearOne today announced that the quarterly cash dividend for the fourth quarter of 2016 at $0.05 per share will be paid on November 30, 2016 to shareholders of record as of November 16, 2016.

    About ClearOne
    ClearOne is a global company that designs, develops and sells conferencing, collaboration, and network streaming & signage solutions for voice and visual communications. The performance and simplicity of its advanced, comprehensive solutions offer unprecedented levels of functionality, reliability and scalability. Visit ClearOne at www.clearone.com.

    http://investors.clearone.com

    Contact:
    Investor Relations
    +1-801-975-7200
    Investor_relations@clearone.com

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/clearone-announces-record-date-for-2016-fourth-quarter-dividend-300355296.html

    ClearOne

    Web site: http://www.clearone.com/




    OUTFRONT Media Chief Financial Officer Donald Shassian To Participate In The 2016 Wells Fargo Technology, Media And Telecom Conference

    NEW YORK, Nov. 1, 2016 /PRNewswire/ -- OUTFRONT Media Inc. , announced today that Donald Shassian, Executive Vice President & Chief Financial Officer, is scheduled to present at the Wells Fargo Technology, Media and Telecom Conference in New York, New York on Wednesday, November 9, 2016 at 3:30 p.m. Eastern Time. A live and replay audio webcast will be available on the investor relations section of the Company's website at www.OUTFRONTmedia.com.

    http://photos.prnewswire.com/prnvar/20150108/167799LOGO

    About OUTFRONT Media Inc.
    OUTFRONT Media is one of the largest out-of-home media companies in North America with a leading presence in top markets throughout the United States and Canada. We have a diverse portfolio of billboard, transit and digital displays reaching mass audiences, as well as a distinct offering of prime assets impacting select markets. As part of our recently launched ON Smart Media platform, we are developing hardware and software solutions for enhanced demographic and location targeting, and engaging ways to connect with consumers on-the-go.

    Contacts: Investors: Media: Gregory Lundberg Carly Zipp (212) 297-6441 (212) 297-6479 greg.lundberg@OUTFRONTmedia.com carly.zipp@OUTFRONTmedia.com

    Logo - http://photos.prnewswire.com/prnh/20150108/167799LOGO

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/outfront-media-chief-financial-officer-donald-shassian-to-participate-in-the-2016-wells-fargo-technology-media-and-telecom-conference-300355236.html

    Photo: http://photos.prnewswire.com/prnh/20150108/167799LOGO OUTFRONT Media Inc.

    Web site: http://www.outfrontmedia.com/




    Viavi Announces First Quarter Fiscal 2017 ResultsFirst Quarter- GAAP and Non-GAAP net revenue of $210.8 million, down $18.9 million or (8.2)% year-over-year- GAAP operating margin of 4.8%, up 610 bps year-over-year- Non-GAAP operating margin of 13.0%, up 50 bps year-over-year- GAAP EPS from continuing operations of $0.33, up 0.40 or 571.4% year-over-year- Non-GAAP EPS from continuing operations of $0.09, up $0.01 or 12.5% year-over-year

    MILPITAS, Calif., Nov. 1, 2016 /PRNewswire/ -- Viavi today reported results for its first fiscal quarter ended October 1, 2016. Amounts presented below are on a continuing operations basis unless otherwise noted.

    http://photos.prnewswire.com/prnvar/20160706/386858LOGO

    GAAP net revenue was $210.8 million, with net income of 78.0 million, or $0.33 per share. Prior quarter GAAP net revenue was $224.1 million, with net loss of (64.5) million or $(0.28) per share which included a non-cash goodwill impairment charge of $91.4 million related to our Service Enablement segment. GAAP net revenue for the first quarter of fiscal 2016 was $229.7 million, with net loss of $(15.7) million, or $(0.07) per share.

    Non-GAAP net revenue was $210.8 million, with net income of $21.7 million, or $0.09 per share. Prior quarter non-GAAP net revenue was $224.1 million, with net income of $23.8 million, or $0.10 per share. Non-GAAP net revenue for the first quarter of fiscal 2016 was $229.7 million, with net income of $19.6 million, or $0.08 per share.

    "We executed well in fiscal Q1 2017 as our results were driven by solid profitability execution from NSE and OSP as both segments exceeded their operating margin guidance range," said Oleg Khaykin, Viavi's President and Chief Executive Officer. "This led to an overall non-GAAP operating margin at 13.0% and non-GAAP EPS at $0.09, both above a year ago levels despite a revenue decline of (8.2)% versus last year."

    Khaykin added, "During our recent September Analyst Day event, we outlined our corporate strategy which included three-year profitability targets. We plan to continue to strengthen our market leadership in NE along with a more focused, scaled down SE. In OSP, we plan to leverage our optical coatings technologies into new markets while maintaining our leadership position in the core anti-counterfeiting business."

    Financial Overview:

    The tables below (in millions, except percentage data) provide comparisons of quarterly result to prior periods, including sequential quarterly and year-over-year changes. A reconciliation between GAAP and non-GAAP measures is contained in this release under the section titled "Use of Non-GAAP (Adjusted) Financial Measures."

    First Quarter Ended October 1, 2016

    GAAP Results ------------ Q1 Q4 Q1 Change ------ FY 2017 FY 2016 FY 2016 Q/Q Y/Y ------- ------- ------- --- --- Net revenue $210.8 $224.1 $229.7 (5.9)% (8.2)% Gross margin 59.3% 60.7% 61.2% (140) bps (190) bps Operating margin 4.8% (43.6)% (1.3)% 4,840 bps 610 bps Non-GAAP Results ---------------- Q1 Q4 Q1 Change ------ FY 2017 FY 2016 FY 2016 Q/Q Y/Y ------- ------- ------- --- --- Net revenue $210.8 $224.1 $229.7 (5.9)% (8.2)% Adj. Gross margin 61.8% 63.3% 63.6% (150) bps (180) bps Adj. Operating margin 13.0% 13.5% 12.5% (50) bps 50 bps

    GAAP and Non-GAAP Net Revenue by Segment ---------------------------------------- Q1 % of Net Q4 Q1 Change ------ FY 2017 revenue FY 2016 FY 2016 Q/Q Y/Y ------- ------- ------- ------- --- --- Network Enablement $118.6 56.3% $127.5 $117.6 (7.0)% 0.9% Service Enablement 36.4 17.3% 33.6 47.9 8.3% (24.0)% Optical Security and Performance Products 55.8 26.5% 63.0 64.2 (11.4)% (13.1)% ---- Total $210.8 100.0% $224.1 $229.7 (5.9)% (8.2)% ====== ===== ====== ====== ===== =====

    --  Americas, Asia-Pacific and EMEA customers represented 48.5%, 22.0% and
    29.5%, respectively, of total net revenue for the quarter ended October
    1, 2016.
    --  As of October 1, 2016, the Company held $1,044.2 million in total cash
    and investments, which also includes marketable equity investments.
    During the fiscal quarter ended October 1, 2016 the Company sold 3.9
    million shares of the 11.7 million shares of Lumentum common stock
    retained as part of the spin-off of Lumentum. The Company generated net
    proceeds from these sales of $114.6 million and had 3.4 million shares
    remaining valued at $141.1 million at October 1, 2016.
    --  During the fiscal quarter ended October 1, 2016, the Company generated
    $10.3 million of cash from operations.
    --  The Company adjusted its current and historical Condensed Consolidated
    Statements of Operations, Condensed Consolidated Balance Sheets and
    reportable segment information to reflect the spin-off of the Lumentum
    business (formerly the Company's communications and commercial optical
    products business segment and WaveReady product line) on August 1, 2015.
    The Lumentum business' adjusted results are reflected as discontinued
    operations for the periods reported in the Company's GAAP Condensed
    Consolidated Statement of Operations and reportable segment information.
    

    Business Outlook for the Second Quarter of Fiscal 2017

    For the second quarter of fiscal 2017 ending December 31, 2016, the Company expects non-GAAP net revenue to be $187 million to $207 million and non-GAAP earnings per share to be $0.05 to $0.08. With respect to our expectations above, the Company has not reconciled non-GAAP net income per share to GAAP net income (loss) per share in this press release because it is unable to provide a meaningful or accurate estimate of certain reconciling items described in the "Use of Non-GAAP (Adjusted) Financial Measures" section below and the information is not available without unreasonable effort as a result of the inherent difficulty of forecasting the timing and/or amounts of certain items, including restructuring and related charges and gain on sale of investments. In addition, the Company believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.

    Conference Call

    The Company will discuss these results and other related matters at 1:30 p.m. Pacific Time on November 1, 2016 in a live webcast, which will also be archived for replay on the Company's website at www.viavisolutions.com/investors. The Company will post supplementary slides outlining the Company's latest financial results on www.viavisolutions.com/investors under the "Quarterly Results" section concurrently with this earnings press release. This press release is being furnished as a Current Report on Form 8-K with the Securities and Exchange Commission, and will be available at www.sec.gov.

    About Viavi Solutions

    Viavi is a global provider of network test, monitoring and assurance solutions to communications service providers, enterprises and their ecosystems, supported by a worldwide channel community including Viavi Velocity Solution Partners. We deliver end-to-end visibility across physical, virtual and hybrid networks, enabling customers to optimize connectivity, quality of experience and profitability. Viavi is also a leader in high performance thin film optical coatings, providing light management solutions to anti-counterfeiting, consumer electronics, automotive, defense and instrumentation markets. Learn more about Viavi at www.viavisolutions.com. Follow us on Viavi Perspectives, LinkedIn, Twitter, YouTube and Facebook.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include any anticipation or guidance as to future financial performance, including future revenue, gross margin, operating expense, operating margin, profitability targets, cash flow and other financial metrics, as well as the impact and duration of certain trends and market position and conditions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. In particular, the Company's ability to predict future financial performance continues to be difficult due to, among other things: (a) continuing general limited visibility across many of our product lines; (b) quarter-over-quarter product mix fluctuations, which can materially impact profitability measures due to the broad gross margin ranges across our portfolio; (c) consolidations in our customer base; (d) customer purchasing delays as they assess or transition to new technologies and/or new architectures, which limit near-term demand visibility, and could negatively impact potential revenue; (e) continued decline of average selling prices across our businesses; (f) notable seasonality and a significant level of in-quarter book-and-ship business; (g) various product and manufacturing transfers, site consolidations and product discontinuances that have caused and may cause short-term disruptions; (h) the ability of our suppliers and contract manufacturers to meet production and delivery requirements to our forecasted demand; and (i) inherent uncertainty related to global markets and the effect of such markets on demand for our products. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. For more information on these risks, please refer to the "Risk Factors" section included in the Company's Annual Report on Form 10-K for the fiscal year ended July 2, 2016 filed with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date thereof and the Company assumes no obligation to update such statements.

    Contact Information

    Investors:
    Bill Ong
    408-404-4512
    bill.ong@viavisolutions.com

    Press:
    Amit Malhotra
    202-341-8624
    amit.malhotra@viavisolutions.com

    The following financial tables are presented in accordance with GAAP, unless otherwise specified.

    -SELECTED PRELIMINARY FINANCIAL DATA -

    VIAVI SOLUTIONS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (unaudited) PRELIMINARY Three Months Ended ------------------ October 1, 2016 October 3, 2015 --------------- --------------- Net revenue $210.8 $229.7 Cost of revenues 81.9 84.9 Amortization of acquired technologies 3.8 4.3 Gross profit 125.1 140.5 ----- ----- Operating expenses: Research and development 36.1 44.3 Selling, general and administrative 75.4 94.9 Amortization of other intangibles 3.5 3.8 Restructuring and related charges - 0.4 Total operating expenses 115.0 143.4 ----- ----- Income (loss) from operations 10.1 (2.9) Interest and other income (expense), net 1.3 (1.1) Gain (loss) on sale of investments 81.5 - Interest expense (9.2) (8.8) Income (loss) from continuing operations before taxes 83.7 (12.8) Provision for income taxes 5.7 2.9 Income (loss) from continuing operations, net of taxes $78.0 $(15.7) (Loss) income from discontinued operations, net of taxes - (53.4) Net income (loss) $78.0 $(69.1) ===== ====== Net income (loss) per share from -basic: Continuing operations $0.34 $(0.07) Discontinued operations - (0.22) Net income (loss) $0.34 $(0.29) ===== ====== Net income (loss) per share from -diluted: Continuing operations $0.33 $(0.07) Discontinued operations - (0.22) Net income (loss) $0.33 $(0.29) ===== ====== Shares used in per share calculation - basic 232.4 236.0 Shares used in per- share calculation - diluted 236.8 236.0

    The preliminary financial statements are estimated based on our current information.

    VIAVI SOLUTIONS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) PRELIMINARY October 1, 2016 July 2, 2016 --------------- ------------ ASSETS Current assets: Cash and cash equivalents $474.3 $482.9 Short-term investments 558.8 484.7 Restricted cash 11.1 12.2 Accounts receivable, net 165.8 148.4 Inventories, net 47.2 51.4 Prepayments and other current assets 41.5 32.1 Total current assets 1,298.7 1,211.7 Property, plant and equipment, net 137.0 133.0 Goodwill 151.7 152.1 Intangibles, net 52.2 59.9 Deferred income taxes 111.1 108.8 Other non- current assets 12.5 12.6 Total assets $1,763.2 $1,678.1 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $37.1 $47.0 Accrued payroll and related expenses 43.3 44.9 Deferred revenue 69.9 78.6 Accrued expenses 33.7 24.9 Other current liabilities 59.0 31.0 Total current liabilities 243.0 226.4 Long-term debt 590.8 583.3 Other non- current liabilities 174.6 179.1 Total stockholders' equity 754.8 689.3 ----- ----- Total liabilities and stockholders' equity $1,763.2 $1,678.1 ======== ========

    The preliminary financial statements are estimated based on our current information.

    VIAVI SOLUTIONS INC. REPORTABLE SEGMENT INFORMATION (in millions, unaudited) PRELIMINARY Three Months Ended October 1, 2016 ---------------------------------- Network and Service Enablement ------------------------------ Network Service Network and Optical Total Segment Reconciling Consolidated Enablement Enablement Service Security and Measures Items GAAP Measures Enablement Performance Products ----------- ----------- ------------ ------------- -------------- ------------ ------------- Net revenue $118.6 $36.4 $155.0 $55.8 $210.8 $ - $210.8 Gross profit 77.4 21.3 98.7 31.6 130.3 (5.2) 125.1 Gross margin 65.3% 58.5% 63.7% 56.6% 61.8% 59.3% Operating (loss) income 4.1 23.4 27.5 (17.4) 10.1 Operating margin 2.6% 41.9% 13.0% 4.8% Three Months Ended October 3, 2015 ---------------------------------- Network and Service Enablement ------------------------------ Network Service Network and Optical Total Segment Reconciling Consolidated Enablement Enablement Service Security and Measures Items GAAP Measures Enablement Performance Products ----------- ----------- ------------ ------------- -------------- ------------ ------------- Net revenue $117.6 $47.9 $165.5 $64.2 $229.7 $ - $229.7 Gross profit 75.7 33.4 109.1 37.0 146.1 (5.6) 140.5 Gross margin 64.4% 69.7% 65.9% 57.6% 63.6% 61.2% Operating income (loss) 2.4 26.3 28.7 (31.6) (2.9) Operating margin 1.5% 41.0% 12.5% (1.3)%

    Three Months Ended ------------------ October 1, 2016 October 3, 2015 --------------- --------------- Corporate reconciling items impacting gross profit: Total segment gross profit $130.3 $146.1 Stock- based compensation (1.0) (1.2) Amortization of intangibles (3.8) (4.3) Other charges unrelated to core operating performance (1) (0.4) (0.1) ---- GAAP gross profit $125.1 140.5 ====== ===== Corporate reconciling items impacting operating income (loss): Total segment operating income $27.5 $28.7 Stock- based compensation (8.7) (16.0) Amortization of intangibles (7.3) (8.1) Other charges unrelated to core operating performance (1) (1.4) (7.1) Restructuring and related charges - (0.4) GAAP operating income (loss) from continuing operations $10.1 $(2.9) ===== =====

    (1) During the three months ended October 1, 2016 and October 3, 2015, other charges unrelated to core operating performance primarily consisted of Viavi-specific incremental charges for professional fees and additional personnel costs to complete the separation as well as transformational initiatives such as the implementation of simplified automated processes, site consolidations, reorganizations, and the insourcing or outsourcing of activities. The preliminary financial schedules are estimated based on our current information.

    Use of Non-GAAP (Adjusted) Financial Measures

    The Company provides non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating income, non-GAAP net income (loss), non-GAAP net income (loss) per share, EBITDA and adjusted EBITDA financial measures as supplemental information regarding the Company's operational performance. The Company uses the measures disclosed in this release to evaluate the Company's historical and prospective financial performance, as well as its performance relative to its competitors. Specifically, management uses these items to further its own understanding of the Company's core operating performance, which the Company believes represent its performance in the ordinary, ongoing and customary course of its operations. Accordingly, management excludes from core operating performance items such as those relating to amortization of acquisition-related intangibles, stock-based compensation, restructuring, separation costs, and certain investing expenses and non-cash activities that management believes are not reflective of such ordinary, ongoing and customary course activities. Additionally, the Company excludes the results of discontinued operations in calculating non-GAAP net income (loss), non-GAAP net income (loss) per share, EBITDA and adjusted EBITDA for all periods reported. The Company believes excluding these items enables investors to evaluate more clearly and consistently the Company's core operational performance as the Company is no longer active in its discontinued operations.

    The Company believes providing this additional information allows investors to see Company results through the eyes of management. The Company further believes that providing this information allows investors to better understand the Company's financial performance and, importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance.

    The non-GAAP adjustments described in this release have historically been excluded by the Company from its non-GAAP financial measures. The non-GAAP adjustments, and the basis for excluding them, are outlined below.

    Cost of revenues, costs of research and development and costs of selling, general and administrative: The Company's GAAP presentation of gross margin and operating expenses may include (i) additional depreciation and amortization from changes in estimated useful life and the write-down of certain property, equipment and intangibles that have been identified for disposal but remained in use until the date of disposal, (ii) workforce related charges such as severance, retention bonuses and employee relocation costs related to formal restructuring plans (iii) costs for facilities not required for ongoing operations, and costs related to the relocation of certain equipment from these facilities and/or contract manufacturer facilities, (iv) stock-based compensation, and (v) other charges unrelated to our core operating performance comprising mainly of one-time acquisition, integration, litigation and other costs and contingencies unrelated to current and future operations, including Viavi-specific incremental charges for professional fees and additional personnel costs to complete the separation as well as transformational initiatives such as the implementation of simplified automated processes, site consolidations, reorganizations, and the insourcing or outsourcing of activities and severance related costs related to the exit of key executives. The Company excludes these items in calculating non-GAAP gross margin, non-GAAP operating income, non-GAAP net income (loss), non-GAAP net income (loss) per share, EBITDA and adjusted EBITDA. The Company believes excluding these items enables investors to evaluate more clearly and consistently the Company's core operational performance.

    Amortization of intangibles: The Company includes amortization expense related to intangibles in its GAAP presentation of cost of revenues and operating expense. The Company excludes these significant non-cash items in calculating non-GAAP gross margin, non-GAAP operating income, non-GAAP net income (loss), non-GAAP net income (loss) per share, EBITDA and adjusted EBITDA, because it believes doing so provides investors a clearer and more consistent view of the Company's core operating performance in terms of cost of revenues and operating expenses.

    Impairment of goodwill: The Company incurred cost related to the impairment of goodwill in accordance with the authoritative guidance included in its GAAP presentation of operating expense. These adjustments typically occur when the financial performance of the business utilizing the affected assets falls below certain thresholds. Accordingly, the related asset's value impairments are infrequent and generally unpredictable. The Company believes that eliminating this item, for the purposes of calculating non-GAAP net income (loss), non-GAAP net income (loss) per share and adjusted EBITDA, is useful to investors. We believe this non-GAAP adjustment will assist investors to compare current versus past performance. The Company's historical adjustments to the carrying value of certain of its assets under authoritative guidance, as well as the methodology used by the Company in assessing the same, are more particularly described in its quarterly reports on Form 10-Q and annual reports on Form 10-K.

    Non-cash interest expense and other income: The Company incurred non-cash interest expense accretion of the debt discount on its convertible debt instruments. The Company from time to time recognizes certain non-operating income in its GAAP presentation of other income (expense), net. The Company eliminates these items in calculating non-GAAP net income (loss), non-GAAP net income (loss) per share, EBITDA and adjusted EBITDA, because it believes that in so doing, it can provide investors a clearer and more consistent view of the Company's core operating performance.

    Gain or loss on sale of available for-sale investments: The Company has sold available-for-sale investments and includes the impact of these activities in its GAAP presentation of net income (loss) and net income (loss) per share. The Company's core business does not include making financial investments in third parties. Moreover, the amount and timing of gains and losses on the sale of available-for-sale investments are unpredictable. Consequently, the Company excludes these items in calculating non-GAAP net income (loss), non-GAAP net income (loss) per share, EBITDA and adjusted EBITDA because it believes gains or losses on these sales are not related to the Company's ongoing core business and operating performance.

    Income tax expense or benefit: The Company excludes certain non-cash tax expense items, such as the utilization of net operating losses where valuation allowances were released, intra-period tax allocation benefit and other significant one-time events, such as the spin-off of Lumentum. The Company believes excluding these items enables investors to evaluate more clearly and consistently the Company's core operational performance.

    Interest, taxes, depreciation, amortization and other adjustments: The Company's EBITDA calculation primarily excludes interest, taxes, depreciation and amortization, and other items that are not part of its core operating performance described above. The Company's adjusted EBITDA excludes items in addition to the items excluded from the EBITDA calculation such as stock-based compensation, impairment of goodwill, restructuring and related charges (benefits), and other charges related to activities that are not part of its core operating performance described above. Management believes adjusted EBITDA is a good indicator of the Company's core operational cash flow.

    Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most directly comparable to non-GAAP net income (loss) is net income (loss). The GAAP measure most directly comparable to non-GAAP net income (loss) per share is net income (loss) per share. The Company believes these GAAP measures alone are not indicative of its core operating expenses and performance.

    VIAVI SOLUTIONS INC. RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS TO NON-GAAP MEASURES (in millions, except per share data) (unaudited) PRELIMINARY The following tables reconcile GAAP measures from continuing operations to non-GAAP measures: Three Months Ended ------------------ October 1, 2016 October 3, 2015 --------------- --------------- Net income Diluted Net income (loss) (loss) Diluted EPS EPS ---- GAAP measures from continuing operations $78.0 $0.33 $(15.7) $(0.07) Items reconciling GAAP net loss and EPS from continuing operations to non-GAAP net income and EPS: Related to cost of revenues: Stock-based compensation 1.0 - 1.2 0.01 Other charges unrelated to core operating performance (1) 0.4 - 0.1 - Amortization of acquired technologies 3.8 0.02 4.3 0.02 Total related to gross profit 5.2 0.02 5.6 0.02 --- ---- --- ---- Related to operating expenses: Research and development: Stock-based compensation 1.7 0.01 2.8 0.01 Other charges unrelated to core operating performance (1) 0.7 - 1.3 0.01 Selling, general and administrative: Stock-based compensation 6.0 0.03 12.0 0.05 Other charges unrelated to core operating performance (1) 0.3 - 5.7 0.02 Amortization of other intangibles 3.5 0.01 3.8 0.02 Restructuring and related charges - - 0.4 - Total related to operating expenses 12.2 0.05 26.0 0.11 ---- ---- ---- ---- Gain on sale of investments (2) (81.5) (0.34) - - Non-cash interest expense and other income 6.9 0.03 6.5 0.03 Income taxes 0.9 - (2.8) (0.01) Total related to net income and EPS (56.3) (0.24) 35.3 0.15 ----- ----- ---- ---- Non-GAAP measures from continuing operations $21.7 $0.09 $19.6 $0.08 ===== ===== ===== ===== Shares used in per share calculation for Non-GAAP EPS 236.8 238.7 Note: Certain totals may not add due to rounding

    (1) During the three months ended October 1, 2016 and October 3, 2015, other charges unrelated to core operating performance primarily consisted of Viavi-specific incremental charges for professional fees and additional personnel costs to complete the separation as well as transformational initiatives such as the implementation of simplified automated processes, site consolidations, reorganizations, and the insourcing or outsourcing of activities. (2) During the three months ended October 1, 2016, the Company sold 3.9 million shares of the 11.7 million shares of Lumentum common stock which was retained as part of the separation of Lumentum. The Company recognized a realized gain of $81.5 million on the sale. The preliminary financial schedules are estimated based on our current information.

    VIAVI SOLUTIONS INC. RECONCILIATION OF GAAP MEASURES FROM CONTINUING OPERATIONS TO ADJUSTED EBITDA (in millions, unaudited) PRELIMINARY Three Months Ended ------------------ October 1, 2016 October 3, 2015 ----------- GAAP measures from continuing operations $78.0 $(15.7) Interest and other income (expense), net (1.3) 1.1 Gain on sale of investments (1) (81.5) - Interest expense 9.2 8.8 Income taxes 5.7 2.9 Depreciation 7.9 9.3 Amortization 7.3 8.1 --- EBITDA from continuing operations 25.3 14.5 Costs related to restructuring and related charges - 0.4 Costs related to stock- based compensation 8.7 16.0 Other charges unrelated to core operating performance (2) 1.4 7.1 Adjusted EBITDA from continuing operations $35.4 $38.0 ===== =====

    (1) During the three months ended October 1, 2016, the Company sold 3.9 million shares of the 11.7 million shares of Lumentum common stock which was retained as part of the separation of Lumentum. The Company recognized a realized gain of $81.5 million on this sale. (2) During the three months ended October 1, 2016 and October 3, 2015, other charges unrelated to core operating performance primarily consisted of Viavi-specific incremental charges for professional fees and additional personnel costs to complete the separation as well as transformational initiatives such as the implementation of simplified automated processes, site consolidations, reorganizations, and the insourcing or outsourcing of activities. The preliminary financial schedules are estimated based on our current information.

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    Web site: http://www.viavisolutions.com/




    Etsy, Inc. Reports 33% Revenue Growth in the Third Quarter 2016 and Raises Full Year Guidance2016 Guidance Increased for GMS, Revenue, Gross Margin and Adjusted EBITDA MarginAnnounces Plan for 5-Month CFO Transition

    BROOKLYN, N.Y., Nov. 1, 2016 /PRNewswire/ -- Etsy, Inc., which operates markets where people around the world connect, both online and offline, to make, sell and buy unique goods, today announced financial results for its third quarter, ended September 30, 2016.

    "Our third quarter results reflect the strength of our markets that connect people around the world and our seller services platform that is specifically focused on helping creative entrepreneurs start, scale and manage their businesses," said Chad Dickerson, Etsy, Inc. CEO and Chair. "Based on our year-to-date performance, which has been strong across all of our key metrics, we are raising our full year guidance. We're excited about our progress this quarter and that we are laying more groundwork to deliver long-term results that will benefit our community, including our shareholders."

    Third Quarter 2016 Financial Summary (in thousands, unaudited) Three Months Ended % Growth Nine Months Ended % Growth September 30, September 30, Y/Y Y/Y --- --- 2015 2016 2015 2016 ---- ---- ---- ---- GMS $568,787 $677,221 19.1% $1,646,899 $1,976,092 20.0% Revenue $65,696 $87,562 33.3% $185,604 $254,758 37.3% Marketplace revenue $32,232 $38,133 18.3% $92,852 $111,268 19.8% Seller Services revenue $32,329 $48,511 50.1% $89,378 $139,113 55.6% Net loss $(6,891) $(2,399) (65.2)% $(49,831) $(8,518) (82.9)% Adjusted EBITDA $6,224 $13,056 109.8% $16,958 $41,847 146.8% Active sellers 1,533 1,706 11.3% 1,533 1,706 11.3% Active buyers 22,603 27,140 20.1% 22,603 27,140 20.1% Percent mobile visits 60% 65% 500 bps 60% 64% 400 bps Percent mobile GMS 44% 49% 500 bps 43% 48% 500 bps Percent international GMS 29.3% 30.4% 110 bps 30% 30.4% 40 bps

    For information about how we define our key operating and financial metrics, see our Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 filed with the SEC on August 4, 2016.


    Third Quarter 2016 Operational Highlights

    GMS was $677.2 million, up 19.1% compared with the third quarter of 2015. On a currency-neutral basis (excluding the direct impact of currency translation on GMS from goods that are not listed in U.S. dollars) GMS growth in the third quarter of 2016 would have been 20.1%, or approximately one percentage point higher than reported. Growth in GMS was supported by 11.3% year-over-year growth in active sellers and 20.1% year-over-year growth in active buyers.

    Continuing the trend we've seen for multiple quarters, mobile visits once again grew faster than desktop visits. Percent mobile visits was approximately 65% compared with approximately 60% in the third quarter of 2015, and approximately 64% in the second quarter of 2016. Percent mobile GMS was approximately 49% compared with 44% in the third quarter of 2015, and 47% in the second quarter of 2016. Year-over-year conversion rates increased across desktop, mobile web, and mobile app for the fourth consecutive quarter. During the third quarter, the mobile app conversion rate expanded more than mobile web and desktop conversion rates resulting in a slight narrowing of the gap between mobile visits and mobile GMS. Mobile app and mobile web GMS each continued to grow significantly faster than desktop GMS during the third quarter.

    Percent international GMS was 30.4% in the third quarter of 2016, up from 29.3% in the third quarter of 2015, and down sequentially from 30.7% in the second quarter of 2016. We continue to believe that we can grow international GMS, over time, to represent 50% of our total GMS.

    The improved year-over-year performance in percent international GMS was largely driven by continued robust GMS growth between U.S. buyers and international sellers and GMS growth between buyers and sellers outside of the U.S., both in the same country and cross-border. GMS also improved between U.S. sellers and international buyers, for the third consecutive quarter, although GMS between U.S. sellers and international buyers decreased 7% in the third quarter. We continue to believe that the decline in this segment is indicative of the indirect impact of fluctuating currency exchange rates on international buyer behavior, which is difficult to estimate. GMS growth between international buyers and sellers in the same country remains the fastest growing category of international GMS. Excluding our French marketplace ALM, GMS between international buyers and sellers in the same country grew 65% year-over-year during the third quarter. This category has grown to be more similar in size to GMS between U.S. sellers and international buyers and GMS between international buyers and sellers in different countries, although it remains our smallest category of international GMS. We believe the robust growth in this segment demonstrates the progress we are making on our strategy to build local marketplaces, globally.

    Recent Operational Highlights:

    We remain focused on supporting creative entrepreneurs as they start, scale and manage their businesses and on enhancing the Etsy buyer experience. Recent developments include:

    --  Acquired Blackbird Technologies, a machine learning company that
    complements and augments our existing search capabilities and also adds
    to our world-class team of talent. We believe that leveraging
    Blackbird's technology, which combines image recognition and natural
    language processing using advanced Deep Learning and Artificial
    Intelligence techniques, will help us improve the quality and relevance
    of search on Etsy.com.
    --  Expanded marketing services options so that Etsy sellers can now easily
    set up and run Google Shopping Ad campaigns. This tool, launched in
    October, enables sellers to market their listings and target shoppers
    off of the Etsy marketplace at key moments when they are searching for
    items on Google.
    --  Launched Direct Checkout in Hong Kong and Singapore, making it easier
    for sellers to streamline the payment process and transact with buyers
    around the world. Direct Checkout is now available in 36 countries and
    12 currencies.
    --  Further enhanced Pattern by Etsy, with new capabilities including guest
    checkout and new content features such as blogging and e-newsletter
    sign-up.
    --  Entered a new partnership with Intuit that allows Etsy sellers in the
    U.S. and the U.K. to seamlessly export their Etsy sales and expenses
    directly into QuickBooks Self-Employed(TM), enabling them to spend less
    time on accounting-related tasks.
    --  Launched our first-ever brand campaign, Difference Makes Us, to
    highlight Etsy.com as a go-to shopping destination across a wide variety
    of retail categories for buyers around the world.
    

    Third Quarter 2016 Financial Highlights

    Total revenue was $87.6 million, up 33.3% year-over-year, driven by growth in both Marketplace and Seller Services revenue. Marketplace revenue grew 18.3%, driven by growth in transaction fee revenue and, to a lesser extent, growth in listing fee revenue. Seller Services revenue grew 50.1% year-over-year and was driven primarily by revenue growth in Direct Checkout, which continued to benefit from the integration of PayPal. During the fourth quarter, we will anniversary the integration of Paypal into Direct Checkout, which has been a substantial driver of year-over-year Direct Checkout and overall seller services revenue growth, and therefore, we expect seller services revenue growth to decelerate. Seller Services revenue also benefited from revenue growth from Promoted Listings and to a lesser extent, Shipping Labels, as well as a modest contribution from Pattern by Etsy, our seller service that we launched in April. We continue to expect only modest contributions to GMS and revenue from Pattern over the next three years. Direct Checkout, Promoted Listings and Shipping Labels revenue each continued to grow faster than Marketplace revenue in the third quarter.

    Gross profit for the third quarter was $58.2 million, up 40.3% year-over-year, and gross margin was 66.5%, up 330 bps compared with 63.2% in the third quarter of 2015. Gross margin was positively impacted by a one-time payment from a third-party payment processor of $1.1 million during the third quarter of 2016. Gross profit grew faster than revenue in the third quarter due to the leverage we achieved in technology infrastructure, the aforementioned one-time payment and employee-related costs.

    Total operating expenses were $55.6 million in the third quarter, up 28.7% year-over-year, and represented 63.5% of revenue, down from 65.8% of revenue in the third quarter of 2015. The decrease in operating expenses as a percent of revenue is primarily due to leverage in digital marketing spend, which excludes brand marketing-related spend on YouTube and Facebook. Digital Marketing spend declined 6.2% year-over-year while paid GMS grew close to three times our overall GMS growth rate. The decrease was also driven, to a lesser extent, by leverage in employee-related costs.

    During the third quarter, we continued to gain leverage in our marketing expenses, which, for the third quarter in a row, grew more slowly than revenue. Marketing expenses grew 13.3% year-over-year and were driven by brand marketing spend, particularly on YouTube and Facebook and, to a lesser extent, employee-related costs.

    Product development expenses grew 30.6% year-over-year, primarily due to higher employee-related costs. Product development slightly decreased as a percentage of revenue to 17.0% compared with 17.4% in the third quarter of 2015.

    G&A expenses increased 43.9% year-over-year driven by increased employee-related costs and overhead expenses, including depreciation expense related to our new Brooklyn headquarters. G&A expenses increased as a percentage of revenue to 25.1% compared with roughly 23.2% in the third quarter of 2015.

    Based on build-to-suit accounting requirements, we recognized $0.8 million and $2.0 million in incremental depreciation and non-cash interest expense, respectively, in the third quarter related to our new headquarters, as expected. For more information on the cash impact of our build-to-suit lease agreement, please refer to "Note 14--Commitments and Contingencies" in the Notes to Consolidated Financial Statements in our 2015 Form 10-K filing with the Securities and Exchange Commission. The build out of our new Brooklyn headquarters is complete and we invested approximately $40 million, lower than our original planned investment of up to $50 million in build-out costs.

    Net loss for the third quarter of 2016 was $2.4 million, compared with a net loss of $6.9 million in the third quarter of 2015. Etsy's net loss in the third quarter of 2016 included an income tax provision of $4.4 million, a $1.3 million foreign exchange gain, and interest expense associated with the build-to-suit lease accounting related to our new headquarters, all primarily non-cash.

    Non-GAAP Adjusted EBITDA for the third quarter was $13.1 million, and grew 109.8% year-over-year. Non-GAAP Adjusted EBITDA margin (i.e., non-GAAP Adjusted EBITDA divided by revenue) was 14.9%, up from 9.5% in the third quarter of 2015. Non-GAAP Adjusted EBITDA performance was driven by revenue growth, and leverage in digital marketing expenses, which excludes brand marketing-related spend on YouTube and Facebook, employee related costs, and technology infrastructure.

    Net cash provided by operating activities was $9.2 million in the third quarter of 2016 compared with net cash generated of $5.4 million in the third quarter of 2015. The increase in net cash from operations for the quarter was mainly driven by revenue growth and leverage in operating expenses.

    Cash, marketable securities and short-term investments were $270.4 million as of September 30, 2016.

    Increasing 2016 Financial Guidance

    We are raising our 2016 guidance and reiterating our three-year guidance:

    2016-2018 CAGR Range 2016 Guidance GMS Growth 13-17% at least 17% Revenue Growth 20-25% at least 30% Gross Margin Mid 60s (%) at least 65% (by end of 2018) Adjusted EBITDA Margin High teens (%) at least 14% (by end of 2018)

    --  Based on year-to-date growth and our expectations for the fourth
    quarter, we now expect to achieve the following for 2016:
    --  GMS growth of at least 17%
    --  Revenue growth of at least 30%
    --  Gross margin of at least 65%
    --  Adjusted EBITDA margin of at least 14%
    
    --  We continue to anticipate that the key factors impacting revenue and GMS
    growth over the next three years will include:
    --  Further narrowing of the gap between mobile visits and mobile GMS
    --  Stable percent international GMS, assuming that currency remains
    stable compared to average levels in December 2015
    --  Continued revenue growth from our existing Seller Services, driven
    by both adoption and product enhancements
    --  Modest contributions from new product launches, such as Google
    Shopping Ads, which launched in early October, and new Seller
    Services, including Pattern by Etsy which we launched in April.
    
    --  We continue to anticipate that the key factors impacting our gross
    margin forecast over the next three years will include:
    --  Continued revenue growth from our existing Seller Services, driven
    by both adoption and product enhancements,
    --  The impact from new Seller Services, including Pattern by Etsy
    
    --  We also continue to expect to gain leverage in our operating expense
    structure over the next three years, particularly within marketing
    spend.
    --  In 2016, we expect operating expenses as a percent of revenue to
    decline.
    --  We expect marketing expense as a percent of revenue to decrease in
    2016.
    --  We now expect G&A expense to decline as a percent of revenue for the
    full year.
    --  Also, as a result of the acquisition of Blackbird Technologies,
    product development expense as a percent of revenue will be in line
    with 2015. We will recognize additional product development expenses
    of approximately $2 million per quarter over the next three years
    related to the acquisition. This amount will consist of contingent
    consideration, in the form of both stock and cash compensation
    expense, of approximately $1.4 million and amortization expense
    related to the acquired intangible asset of approximately $0.6
    million, which is subject to change upon finalization of our
    purchase price allocation.
    
    --  In the fourth quarter of 2016, we will anniversary our integration of
    PayPal into our Direct Checkout seller service. This enhancement, which
    we launched in October 2015, has been a primary driver for Direct
    Checkout revenue growth this year and Seller Services revenue growth
    overall. We expect Direct Checkout revenue to grow solidly in the fourth
    quarter, but with the anniversary of the integration, growth is expected
    to decelerate. Based on this and other contributing factors, we expect
    to deliver the following fourth quarter results:
    --  GMS growth of at least 15%
    --  Revenue growth of at least 20%
    --  Gross margin of at least 65%
    --  Adjusted EBITDA margin of at least 13%
    

    Etsy is not able, at this time, to provide GAAP targets for net income margin for the fourth quarter and full year 2016 and 2016-2018 because of the difficulty of estimating certain items that are excluded from non-GAAP Adjusted EBITDA margin, including provision for income taxes, acquisition-related stock-based compensation expense and foreign exchange gain or loss, the effect of which may be significant.

    Chief Financial Officer Transition

    Etsy also announced today that CFO, Kristina Salen, has decided to leave the company at the end of March 2017. Kristina intends to pursue other professional opportunities following a 5-month transition period during which Etsy will focus on recruiting her successor. Etsy intends to launch a formal search immediately.

    "As our first-ever CFO, Kristina has been an incredible partner to me and the rest of the Etsy team over the past four years," said Chad. "Not only has she built and scaled the finance function here at Etsy, but she also led us through our IPO as well as several other important milestones during our first year as a public company. We support her desire to pursue new opportunities and adventures as she continues to grow professionally. We will miss her after she completes the transition in March 2017. Over the next five months we look forward to her continued leadership during our search for her successor."

    For additional information about the planned transition, please see Kristina's post on Etsy's news blog.

    Webcast and Conference Call Replay Information

    Etsy will host a webcast to discuss these results at 5:30 p.m. ET today. To access the live webcast, please visit the Etsy Investor Relations website, investors.etsy.com and go to the Investor Events section.

    A replay will be available following the live webcast and may be accessed on the same website. A telephonic replay will also be available through midnight ET on November 15, 2016 at (855) 859-2056 or (404) 537-3406; conference ID 95201314.

    About Etsy

    Etsy operates markets where millions of people around the world connect, both online and offline, to make, sell and buy unique goods. Etsy also offers a wide range of seller services and tools that help creative entrepreneurs start, scale and manage their businesses. The Etsy community includes creative entrepreneurs who sell on our platform, thoughtful consumers looking to buy unique goods in our marketplace, retailers and manufacturers who partner with Etsy sellers to help them scale their businesses and Etsy employees who maintain our platform and nurture our ecosystem. Our mission is to reimagine commerce in ways that build a more fulfilling and lasting world, and we're committed to using the power of business to strengthen communities and empower people.

    Etsy was founded in 2005 and is headquartered in Brooklyn, New York.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include information related to our possible or assumed future results of operations and expenses, our financial guidance, our mission, business strategies and plans, business environment and future growth. Forward-looking statements include all statements that are not historical facts. In some cases, forward-looking statements can be identified by terms such as "anticipates," "believes," "expects," "may," "plans," "will," "intends," or similar expressions and the negatives of those terms.

    Forward-looking statements involve substantial risks and uncertainties that may cause actual results to differ materially from those that we expect. These risks and uncertainties include (i) our history of operating losses; (ii) the fluctuation of our quarterly operating results; (iii) adherence to our values and our focus on long-term sustainability, which may negatively influence our short- or medium-term financial performance; (iv) the importance to our success of the trustworthiness of our marketplace and the connections within our community; (v) our ability to expand successfully into markets outside of the United States; (vi) increases in our marketing efforts to help grow our business, which may not be effective at attracting and retaining Etsy sellers and Etsy buyers; (vii) our payments system, which depends on third-party providers and is subject to evolving laws and regulations; (viii) our ability to add new members to our community, grow our ecosystem and open new sales channels for Etsy sellers; (ix) our ability to develop new offerings to respond to the changing needs of Etsy sellers and Etsy buyers; (x) the effectiveness of our mobile solutions for Etsy sellers and Etsy buyers; and (xi) our ability to compete effectively. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2016.

    Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

    Etsy, Inc. Condensed Consolidated Balance Sheets (in thousands, unaudited) As of As of December 31, September 30, 2015 2016 ---- ---- ASSETS Current assets: Cash and cash equivalents $271,244 $188,030 Short-term investments 21,620 82,338 Accounts receivable, net 20,275 20,886 Prepaid and other current assets 9,521 10,840 Deferred tax charge- current 17,132 17,132 Funds receivable and seller accounts 19,262 34,180 ------ ------ Total current assets 359,054 353,406 Restricted cash 5,341 5,341 Property and equipment, net 105,021 123,708 Goodwill 27,752 37,765 Intangible assets, net 2,871 8,772 Deferred tax charge-net of current portion 51,396 39,169 Other assets 1,626 1,040 ----- ----- Total assets $553,061 $569,201 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $14,382 $7,323 Accrued expenses 31,253 20,037 Capital lease obligations-current 5,610 6,563 Funds payable and amounts due to sellers 19,262 34,180 Deferred revenue 4,712 5,595 Other current liabilities 4,903 3,880 ----- ----- Total current liabilities 80,122 77,578 Capital lease obligations-net of current portion 7,571 5,325 Deferred tax liabilities 61,420 62,882 Facility financing obligation 51,804 55,214 Other liabilities 21,646 23,746 Total liabilities 222,563 224,745 Total stockholders' equity 330,498 344,456 ------- ------- Total liabilities and stockholders' equity $553,061 $569,201 ======== ========

    Etsy, Inc. Condensed Consolidated Statements of Operations (in thousands except share and per share data, unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2015 2016 2015 2016 ---- ---- ---- ---- Revenue $65,696 $87,562 $185,604 $254,758 Cost of revenue 24,165 29,314 66,783 86,323 Gross profit 41,531 58,248 118,821 168,435 Operating expenses: Marketing 16,542 18,736 44,295 51,788 Product development 11,406 14,897 31,487 38,967 General and administrative 15,250 21,942 53,339 63,555 Total operating expenses 43,198 55,575 129,121 154,310 ------ ------ ------- ------- (Loss) income from operations (1,667) 2,673 (10,300) 14,125 Total other expense (1,129) (709) (19,802) (405) ------ ---- ------- ---- (Loss) income before income taxes (2,796) 1,964 (30,102) 13,720 Provision for income taxes (4,095) (4,363) (19,729) (22,238) ------ ------ ------- ------- Net loss $(6,891) $(2,399) $(49,831) $(8,518) ======= ======= ======== ======= Net loss per share-basic and diluted $(0.06) $(0.02) $(0.59) $(0.08) ====== ====== ====== ====== Weighted average common shares outstanding-basic and diluted 111,329,917 113,757,212 84,195,227 112,980,639 =========== =========== ========== ===========

    Etsy, Inc. Condensed Consolidated Statements of Cash Flows (in thousands, unaudited) Nine Months Ended September 30, ------------- 2015 2016 ---- ---- Cash flows from operating activities Net loss $(49,831) $(8,518) Adjustments to reconcile net loss to net cash provided by operating activities: Stock- based compensation expense 6,559 9,008 Stock- based compensation expense- acquisitions 3,158 2,582 Contribution of stock to Good Work Institute (formerly Etsy.org) 3,200 - Depreciation and amortization expense 14,041 15,620 Bad debt expense 1,473 1,215 Foreign exchange loss (gain) 15,727 (3,071) Amortization of debt issuance costs 122 137 Non-cash interest expense - 3,274 Interest on marketable securities - 840 Net unrealized loss on warrant and other liabilities 3,136 - Loss on disposal of assets 476 1,134 Amortization of deferred tax charge 15,093 12,227 Excess tax benefit from exercise of stock options (2,472) (1,609) Changes in operating assets and liabilities 8,325 (4,598) Net cash provided by operating activities 19,007 28,241 ------ ------ Cash flows from investing activities Acquisition of business, net of cash acquired - (7,880) Purchases of property and equipment (9,524) (34,153) Development of internal- use software (7,329) (8,441) Purchases of marketable securities (18,552) (108,652) Sales of marketable securities 17,270 47,136 Net cash used in investing activities (18,135) (111,990) ------- -------- Cash flows from financing activities Repurchase of stock - (633) Proceeds from public offering 199,467 - Proceeds from exercise of stock options 2,285 7,808 Excess tax benefit from the exercise of stock options 2,472 1,609 Payments on capitalized lease obligations (2,262) (4,382) Deferred payments on acquisition of business - (649) Payments relating to public offering (2,919) - Net cash provided by financing activities 199,043 3,753 ------- ----- Effect of exchange rate changes on cash (3,291) (3,218) Net increase (decrease) in cash and cash equivalents 196,624 (83,214) Cash and cash equivalents at beginning of period 69,659 271,244 Cash and cash equivalents at end of period $266,283 $188,030 ======== ========

    Use of Non-GAAP Financial Measures

    In this press release, we provide Adjusted EBITDA, a non-GAAP financial measure that represents our net loss adjusted to exclude: interest and other non-operating expense, net; provision for income taxes; depreciation and amortization; stock-based compensation expense; net unrealized (gain) loss on warrant and other liabilities; foreign exchange loss (gain), acquisition-related expenses and contributions to Good Work Institute (formerly Etsy.org). Below is a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure.

    We have included Adjusted EBITDA in this press release because it is a key measure used by our management and board of directors to evaluate our operating performance and trends, allocate internal resources, prepare and approve our annual budget, develop short- and long-term operating plans, determine incentive compensation and assess the health of our business. As our Adjusted EBITDA increases, we are able to invest more in our platform.

    We believe that Adjusted EBITDA can provide a useful measure for period-to-period comparisons of our business as it removes the impact of certain non-cash items and certain variable charges.

    Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

    --  although depreciation and amortization are non-cash charges, the assets
    being depreciated and amortized may have to be replaced in the future,
    and Adjusted EBITDA does not reflect cash capital expenditure
    requirements for such replacements or for new capital expenditure
    requirements;
    --  Adjusted EBITDA does not consider the impact of stock-based compensation
    expense or changes in the fair value of warrants;
    --  Adjusted EBITDA does not reflect tax payments that may represent a
    reduction in cash available to us;
    --  Adjusted EBITDA does not consider the impact of foreign exchange loss
    (gain);
    --  Adjusted EBITDA does not reflect acquisition-related expenses;
    --  Adjusted EBITDA does not reflect other non-operating expenses, net of
    other non-operating income, including net interest expense;
    --  Adjusted EBITDA does not reflect the impact of our contributions to Good
    Work Institute (formerly Etsy.org); and
    --  other companies, including companies in our industry, may calculate
    Adjusted EBITDA differently, which reduces its usefulness as a
    comparative measure.
    

    Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and our other GAAP results.

    Reconciliation of Net Loss to Non-GAAP Adjusted EBITDA (in thousands, unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2015 2016 2015 2016 ---- ---- ---- ---- Net loss $(6,891) $(2,399) $(49,831) $(8,518) Excluding: Interest and other non-operating expense, net (1) 453 2,046 939 3,476 Provision for income taxes 4,095 4,363 19,729 22,238 Depreciation and amortization (1) 4,968 5,786 14,041 15,620 Stock-based compensation expense (2) 2,204 2,975 6,559 9,008 Stock-based compensation expense-acquisitions (2) 719 1,110 3,158 2,582 Net unrealized (gain) loss on warrant and other liabilities (3) - 3,136 - Foreign exchange loss (gain) 679 (1,337) 15,727 (3,071) Acquisition-related expenses - 512 - 512 Contribution to Good Work Institute (formerly Etsy.org) (3) - - 3,500 - Adjusted EBITDA $6,224 $13,056 $16,958 $41,847 ====== ======= ======= =======

    (1) Included in interest and depreciation expense amounts above, interest and depreciation expense related to our new headquarters under build-to-suit accounting requirements in the three and nine months ended September 30, 2015 and 2016 is as follows (in thousands):

    Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2015 2016 2015 2016 ---- ---- ---- ---- Interest expense $ - $1,989 $ - $3,274 Depreciation - 822 - 1,369

    (2) Total stock-based compensation expense included in the consolidated statements of operations is as follows (in thousands):

    Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2015 2016 2015 2016 ---- ---- ---- ---- Cost of revenue $149 $288 $681 $738 Marketing 120 229 349 628 Product development 756 1,234 1,981 3,117 General and administrative 1,898 2,334 6,706 7,107 Total stock- based compensation expense $2,923 $4,085 $9,717 $11,590 ====== ====== ====== =======

    (3) Etsy made a one-time contribution of 188,235 shares of common stock totaling $3.2 million and cash of $0.3 million to Good Work Institute (formerly Etsy.org) during the first and second quarters of 2015, respectively.

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/etsy-inc-reports-33-revenue-growth-in-the-third-quarter-2016-and-raises-full-year-guidance-300355320.html

    Etsy, Inc.

    CONTACT: Investor Relations Contact: Etsy, Jennifer Beugelmans,
    ir@etsy.com ; Media Relations Contact: Etsy, Kelly Clausen, press@etsy.com




    Nimble Storage to Announce Third Quarter 2017 Financial Results on November 22, 2016

    SAN JOSE, Calif., Nov. 1, 2016 /PRNewswire/ -- Nimble Storage , the leader in predictive flash storage, will report results for its fiscal third quarter on Tuesday, November 22, 2016. The results will be included in a press release with accompanying financial information and Shareholder Letter that will be released after market close and posted on the Nimble Storage Investor Relations website.

    Nimble Storage management will host a conference call and live webcast beginning at 2:00 p.m. PT (5:00 p.m. ET) to discuss the Company's financial results and business highlights. Interested parties may access the call by dialing (877) 719-9801 in the U.S. or (719) 325-4762 from international locations. In addition, a live audio webcast of the conference call will be available on the Nimble Storage Investor Relations website at http://investors.nimblestorage.com.

    A replay of the audio webcast will be available on the Nimble Storage Investor Relations website for 45 days.

    Nimble Storage Resources

    --  Nimble Storage Website
    --  Case Studies and Videos
    --  Follow Nimble Storage on Twitter: @NimbleStorage
    --  Follow Nimble Storage on LinkedIn
    --  Visit Nimble Storage on Facebook
    --  Visit the NimbleConnect Community
    

    About Nimble Storage

    Nimble Storage is the leader in predictive flash storage solutions. Its predictive flash platform gives users the fastest, most reliable access to data. By combining predictive analytics with flash storage, IT teams radically simplify their operations. More than 9,000 customers across 50 countries rely on Nimble to power their businesses, on-premise and in the cloud. For more information, visit www.nimblestorage.com and follow us on Twitter: @nimblestorage.

    Nimble Storage, the Nimble Storage logo, CASL, InfoSight, SmartStack, Timeless Storage, Data Velocity Delivered, Unified Flash Fabric and NimbleConnect are trademarks or registered trademarks of Nimble Storage, Inc. Other trade names or words used in this document are the properties of their respective owners.

    Media Contact:
    Kristalle Cooks
    408-514-3313
    Kristalle@nimblestorage.com

    Investor Relations Contact:
    Elaine Gaudioso
    408-514-3475
    IR@nimblestorage.com

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nimble-storage-to-announce-third-quarter-2017-financial-results-on-november-22-2016-300352080.html

    Nimble Storage

    Web site: http://www.nimblestorage.com/




    Sanmina Reports Fourth Quarter And Fiscal Year End Results

    SAN JOSE, Calif., Nov. 1, 2016 /PRNewswire/ -- Sanmina Corporation ("Sanmina" or the "Company") , a leading integrated manufacturing solutions company, today reported financial results for the fourth quarter and fiscal year ended October 1, 2016.

    Fourth Quarter Fiscal 2016 Summary

    --  Revenue of $1.67 billion
    --  GAAP operating margin of 3.3 percent
    --  GAAP diluted earnings per share of $1.30((1))
    
    --  Non-GAAP((2)) operating margin of 4.2 percent
    --  Non-GAAP diluted earnings per share of $0.72
    

    Fiscal Year 2016 Summary

    --  Revenue of $6.48 billion
    --  GAAP diluted earnings per share of $2.38((1))
    --  Non-GAAP diluted earnings per share of $2.54
    

    Revenue for the fourth quarter was $1.67 billion, compared to $1.67 billion in the prior quarter and $1.64 billion for the same period of fiscal 2015. Revenue for fiscal year ended October 1, 2016 was $6.48 billion, compared to $6.37 billion for the fiscal year ended October 3, 2015.

    GAAP operating income in the fourth quarter was $55.1 million or 3.3 percent of revenue, compared to $52.7 million or 3.2 percent of revenue for the same period a year ago. GAAP operating income for fiscal year 2016 was $224.8 million, compared to $203.1 million in fiscal year 2015. GAAP net income in the fourth quarter was $100.8 million, compared to $315.4 million for the same period a year ago. GAAP diluted earnings per share for the fourth quarter was $1.30, compared to $3.78 in the same period a year ago. GAAP net income for fiscal year 2016 was $187.8 million, compared to $377.3 million in fiscal year 2015. GAAP diluted earnings per share in fiscal year 2016 was $2.38, compared to $4.41 in fiscal year 2015.

    Non-GAAP operating income in the fourth quarter was $69.3 million or 4.2 percent of revenue, compared to $61.7 million or 3.8 percent of revenue for the same period a year ago. Non-GAAP operating income for the full fiscal year was $257.5 million, compared to $245.7 million for fiscal year 2015. Non-GAAP net income in the fourth quarter was $55.7 million, compared to $47.7 million for the same period a year ago. Non-GAAP diluted earnings per share for the fourth quarter was $0.72, compared to $0.57 in the same period a year ago. Non-GAAP net income for fiscal year 2016 was $200.0 million, compared to $189.3 million in fiscal year 2015. Non-GAAP diluted earnings per share in fiscal year 2016 was $2.54, compared to $2.21 in fiscal year 2015.

    Balance Sheet Summary

    --  Ending cash and cash equivalents were $398.3 million
    --  Cash flow from operations was $103.3 million in Q4, and $390.1 million
    for FY'16
    --  Repurchased 1.1 million common shares for $27.8 million in Q4, and 6.8
    million shares for $141.1 million in FY'16
    --  Inventory turns were 6.6x
    --  Cash cycle days were 42.2 days
    

    "We delivered solid financial results for the fourth quarter. Operating margin, EPS and cash flow from operations exceeded our expectations in spite of flat revenue," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation.

    "I am pleased with our performance in fiscal 2016. We delivered margin improvement, EPS expansion and strong cash flow, in a modest growth environment. We continue to diversify our customer base and win new programs which are evident in our financial results and positions us for the future," stated Sola.

    "As we look to fiscal 2017, we remain focused on market diversification, operational excellence and leading edge technology, which offer a distinct advantage to our customers. Our strong cash generation provides the flexibility for investments in markets and technologies where we see the greatest opportunity to create value for our customers. We are confident that our focus on servicing customers and operational discipline will continue to strengthen our operating model and drive shareholder value. We are optimistic that fiscal 2017 will be another solid year," concluded Sola.

    First Quarter Fiscal 2017 Outlook
    The following outlook is for the first fiscal quarter ending December 31, 2016. These statements are forward-looking and actual results may differ materially.

    --  Revenue between $1.675 billion to $1.725 billion
    --  Non-GAAP diluted earnings per share between $0.65 to $0.70
    

    Company Conference Call Information
    Sanmina will hold a conference call regarding financial results for the fourth quarter and fiscal year 2016 on Tuesday, November 1, 2016 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 877-273-6760 and international 706-634-6605. The conference will also be broadcast live over the Internet. You can log on to the live webcast at www.sanmina.com. Additional information in the form of a slide presentation is available by logging onto Sanmina's website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 855-859-2056 and international 404-537-3406, access code is 5523412.

    ((1)) In the fourth quarter of 2015 and 2016, the Company released valuation allowances attributable to certain U.S. and foreign deferred tax assets. As a result of these releases, fourth quarter and full year 2016 GAAP diluted earnings per share include a tax benefit of $1.24 and $1.22 per share, respectively, and fourth quarter and full year 2015 GAAP diluted earnings per share include a tax benefit of $3.45 and $3.37 per share, respectively.

    ((2))In the commentary set forth above and/or in the financial statements included in this earnings release, we present the following non-GAAP financial measures: operating income, operating margin, net income and diluted earnings per share. In computing each of these non-GAAP financial measures, we exclude charges or gains relating to: stock-based compensation expenses, restructuring costs (including employee severance and benefits costs and charges related to excess facilities and assets), acquisition and integration costs (consisting of costs associated with the acquisition and integration of acquired businesses into our operations), impairment charges for goodwill and other assets, amortization expense and charges associated with distressed customers, litigation settlements, gains and losses on sales of assets and redemptions of debt, discrete tax events and deferred tax changes to the extent material in the applicable period. See Schedule 1 below for more information regarding our use of non-GAAP financial measures, including the economic substance behind each exclusion, the manner in which management uses non-GAAP measures to conduct and evaluate the business, the material limitations associated with using such measures and the manner in which management compensates for such limitations. A reconciliation of the non-GAAP results contained in this release to their most directly comparable GAAP measures is included in the financial statements contained in this release. Sanmina provides its first quarter fiscal 2017 outlook for earnings per share only on a non-GAAP basis due to the inherent uncertainties associated with forecasting the timing and amount of acquisitions, restructuring activities, asset impairments and the incurrence of discrete tax events and deferred tax changes.

    About Sanmina
    Sanmina Corporation is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the communications networks, storage, industrial, defense, medical, energy and industries that include embedded computing technologies such as, point of sale devices, casino gaming and automotive. Sanmina has facilities strategically located in key regions throughout the world. More information regarding the company is available at www.sanmina.com.

    Sanmina Safe Harbor Statement
    Certain statements contained in this press release, including the Company's outlook for the first quarter fiscal 2017, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, including adverse changes to the key markets we target; credit problems experienced by our customers; competition that could cause us to lose sales; consolidation among our customers and suppliers that could adversely affect our business; and the other factors set forth in the Company's annual and quarterly reports filed with the Securities Exchange Commission ("SEC").

    The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.

    Sanmina Corporation Condensed Consolidated Balance Sheets (in thousands) (GAAP) October 1, October 3, 2016 2015 ---- ---- (Unaudited) ASSETS ------ Current assets: Cash and cash equivalents $398,288 $412,253 Accounts receivable, net 973,680 936,952 Inventories 946,239 918,728 Prepaid expenses and other current assets 57,445 55,047 Total current assets 2,375,652 2,322,980 --------- --------- Property, plant and equipment, net 617,524 590,844 Deferred tax assets 514,314 497,605 Other 117,732 81,835 ------- ------ Total assets $3,625,222 $3,493,264 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current liabilities: Accounts payable $1,121,135 $1,035,323 Accrued liabilities 124,386 111,416 Accrued payroll and related benefits 127,326 120,402 Short-term debt 28,416 113,416 Total current liabilities 1,401,263 1,380,557 --------- --------- Long-term liabilities: Long-term debt 434,059 423,949 Other 180,097 168,287 Total long- term liabilities 614,156 592,236 ------- ------- Stockholders' equity 1,609,803 1,520,471 --------- --------- Total liabilities and stockholders' equity $3,625,222 $3,493,264 ========== ==========

    Sanmina Corporation Condensed Consolidated Statements of Income (in thousands, except per share amounts) (GAAP) (Unaudited) Three Months Ended Twelve Months Ended ------------------ ------------------- October 1, October 3, October 1, October 3, 2016 2015 2016 2015 ---- ---- ---- ---- Net sales $1,665,819 $1,636,578 $6,481,181 $6,374,541 Cost of sales 1,538,548 1,514,893 5,966,899 5,890,685 --------- --------- --------- --------- Gross profit 127,271 121,685 514,282 483,856 ------- Operating expenses: Selling, general and administrative 61,435 63,111 244,604 239,288 Research and development 8,658 9,116 37,746 33,083 Amortization of intangible assets 918 890 3,446 2,054 Restructuring costs 1,210 1,232 2,701 13,683 Asset impairments - 1,500 1,000 3,454 Gain on sales of long-lived assets - (6,850) - (10,807) Total operating expenses 72,221 68,999 289,497 280,755 ------ Operating income 55,050 52,686 224,785 203,101 Interest income 196 269 680 1,096 Interest expense (6,270) (6,360) (24,911) (25,011) Other income (expense), net 2,654 148 4,063 (2,993) Interest and other, net (3,420) (5,943) (20,168) (26,908) ------ ------ ------- ------- Income before income taxes 51,630 46,743 204,617 176,193 Provision for (Benefit from) income taxes (49,175) (268,639) 16,779 (201,068) ------- -------- ------ -------- Net income $100,805 $315,382 $187,838 $377,261 ======== ======== ======== ======== Basic income per share $1.37 $3.95 $2.50 $4.61 Diluted income per share $1.30 $3.78 $2.38 $4.41 Weighted-average shares used in computing per share amounts: Basic 73,549 79,853 75,094 81,818 Diluted 77,371 83,352 78,787 85,641

    Sanmina Corporation Reconciliation of GAAP to Non-GAAP Measures (in thousands, except per share amounts) (Unaudited) Three Months Ended Twelve Months Ended ------------------ ------------------- October 1, October 3, October 1, October 3, 2016 2015 2016 2015 ---- ---- ---- ---- GAAP Operating Income $55,050 $52,686 $224,785 $203,101 GAAP operating margin 3.3% 3.2% 3.5% 3.2% Adjustments Stock compensation expense (1) 8,948 5,175 26,907 20,653 Amortization of intangible assets 1,820 1,746 7,420 4,440 Reversal of contingent consideration accrual (2) - - (7,558) - Distressed customer charges (3) 2,233 6,177 2,233 10,979 Restructuring costs 1,210 1,232 2,701 13,683 Gain on sales of long-lived assets - (6,850) - (10,598) Asset impairments - 1,500 1,000 3,454 Non-GAAP Operating Income $69,261 $61,666 $257,488 $245,712 ======= ======= ======== ======== Non-GAAP operating margin 4.2% 3.8% 4.0% 3.9% GAAP Net Income $100,805 $315,382 $187,838 $377,261 Adjustments: Operating income adjustments (see above) 14,211 8,980 32,703 42,611 Loss on extinguishment of debt (4) - - - 3,760 Bargain purchase gain (5) - - (1,642) - Litigation settlements (6) (1,023) - (1,023) (273) Deferred and non-recurring tax adjustments (58,316) (276,664) (17,838) (234,078) Non-GAAP Net Income $55,677 $47,698 $200,038 $189,281 ======= ======= ======== ======== GAAP Net Income Per Share: Basic $1.37 $3.95 $2.50 $4.61 Diluted $1.30 $3.78 $2.38 $4.41 Non-GAAP Net Income Per Share: Basic $0.76 $0.60 $2.66 $2.31 Diluted $0.72 $0.57 $2.54 $2.21 Weighted-average shares used in computing per share amounts: Basic 73,549 79,853 75,094 81,818 Diluted 77,371 83,352 78,787 85,641 (1) Stock compensation expense was as follows: Three Months Ended Twelve Months Ended ------------------ ------------------- October 1, October 3, October 1, October 3, 2016 2015 2016 2015 ---- ---- ---- ---- Cost of sales $2,471 $2,132 $7,350 $6,611 Selling, general and administrative 6,246 2,987 18,903 13,859 Research and development 231 56 654 183 Total $8,948 $5,175 $26,907 $20,653

    (2) Represents a reduction in an accrual for contingent consideration related to an acquisition completed in a previous period. (3) Relates to inventory and bad debt reserves associated with distressed customers. (4) Represents a loss, including write- off of unamortized debt issuance costs, on debt redeemed, repurchased or otherwise extinguished prior to maturity. (5) Represents a bargain purchase gain recorded in connection with an acquisition. (6) Represents cash received in connection with certain litigation settlements.

    Schedule I

    The commentary and financial information above includes non-GAAP measures of operating income, operating margin, net income and earnings per share. Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other infrequent items, to the extent material or which we consider to be of a non-operational nature in the applicable period, and as more fully described below.

    Management excludes these items principally because such charges are not directly related to the Company's ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of Company's operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of Company's strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of the ongoing, core business. The material limitations to management's approach include the fact that the charges and expenses excluded are nonetheless charges required to be recognized under GAAP and, in some cases, consume cash which reduces the Company's liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company's performance and by including a reconciliation of non-GAAP results back to GAAP in its earnings releases.

    Additional information regarding the economic substance of each exclusion, management's use of the resultant non-GAAP measures, the material limitations of management's approach and management's methods for compensating for such limitations is provided below.

    Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of stock options and unvested restricted stock units granted to employees, is excluded in order to permit more meaningful period-to-period comparisons of the Company's results since the Company grants different amounts and value of stock options in each quarter. In addition, given the fact that competitors grant different amounts and types of equity award and may use different option valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company's core results with those of its competitors.

    Restructuring, Acquisition and Integration Expenses, which consist of severance, lease termination, exit costs and other charges primarily related to closing and consolidating manufacturing facilities and those associated with the acquisition and integration of acquired businesses, are excluded because such charges (1) can be driven by the timing of acquisitions which are difficult to predict, (2) are not directly related to ongoing business results and (3) do not reflect expected future operating expenses. In addition, given the fact that the Company's competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company's competitors and restructuring and integration expenses include both cash and non-cash expenses. Cash expenses reduce the Company's liquidity. Therefore, management also reviews GAAP results including these amounts.

    Impairment Charges, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company's liquidity. In addition, given the fact that the Company's competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors.

    Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company's liquidity. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors because the Company's competitors complete acquisitions at different times and for different amounts than the Company.

    Other Infrequent Items, which consist of other infrequent or unusual items (including charges associated with distressed customers, litigation settlements, gains and losses on sales of assets and redemptions of debt, discrete tax events and deferred tax changes), to the extent material or non-operational in nature, are excluded because such items are typically non-recurring, difficult to predict or not directly related to the Company's ongoing core operations. However, items excluded by the Company may be different from those excluded by the Company's competitors. In addition, these expenses include both cash and non-cash expenses. Cash expenses reduce the Company's liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts.

    Logo - http://photos.prnewswire.com/prnh/20110707/SF30965LOGO

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sanmina-reports-fourth-quarter-and-fiscal-year-end-results-300355278.html

    Photo: http://photos.prnewswire.com/prnh/20110707/SF30965LOGO Sanmina Corporation

    CONTACT: Paige Bombino, Vice President, Investor Relations, (408) 964-3610

    Web site: http://www.sanmina.com/




    Blackbaud Announces 2016 Third Quarter Results

    GAAP Revenue Growth of 15.3% and Non-GAAP Organic Revenue Growth of 8.1%; Recurring Revenue Increases to 77.5% of Total Revenue

    CHARLESTON, S.C., Nov. 1, 2016 /PRNewswire/ -- Blackbaud , the world's leading cloud software company powering social good, today announced financial results for its third quarter ended September 30, 2016.

    "We posted another very solid quarter, with 77.5% of our total revenue now recurring, and non-GAAP organic revenue growth of 8.1%," said Mike Gianoni, Blackbaud president and CEO. "Our ability to accelerate customer value through innovative new technology is driving our strong financial performance, and will enable us to fuel future growth. We just concluded our annual conference and it's clear that Blackbaud is setting a new technology standard for the social good community."

    Third Quarter 2016 Results Compared to Third Quarter 2015 Results:

    --  Total GAAP revenue was $183.1 million, up 15.3%, with $141.9 million in
    GAAP recurring revenue, representing 77.5% of total revenue.
    --  Total non-GAAP revenue was $183.1 million, up 14.5%, with $141.9 million
    in non-GAAP recurring revenue, representing 77.5% of total non-GAAP
    revenue.
    --  Non-GAAP organic revenue increased 8.1% and non-GAAP organic recurring
    revenue increased 9.6%.
    --  GAAP income from operations decreased 3.1% to $13.5 million, with GAAP
    operating margin decreasing 140 basis points to 7.4%.
    --  Non-GAAP income from operations increased 11.3% to $34.0 million, with
    non-GAAP operating margin decreasing 50 basis points to 18.6%.
    --  GAAP net income increased 12.9% to $8.9 million, with GAAP diluted
    earnings per share up $0.02 to $0.19.
    --  Non-GAAP net income increased 20.8% to $21.3 million, with non-GAAP
    diluted earnings per share up $0.07 to $0.45.
    --  Cash flow from operations was $51.4 million, up from $38.8 million.
    

    "We are maintaining our non-GAAP financial guidance, while increasing cash flow from operations to account for the early adoption of ASU 2016-09," said Tony Boor, Blackbaud's executive vice president and CFO. "Our updated guidance indicates organic revenue growth acceleration, improves profitability, and increases cash flow for the full year when compared to 2015."

    Company Highlights:

    --  Shared the latest insights, trends and innovation to approximately 3,000
    change-makers at bbcon 2016
    --  Appointed Jerry Needle as president of everydayhero(R), Tim Hill as
    president of Higher Education Solutions group, and Russ Cobb as
    president of Healthcare Solutions group
    --  One of the first companies certified under the EU-U.S. Privacy Shield
    --  Adoption of Blackbaud's intuitive cloud accounting solution, Financial
    Edge NXT(TM), continues to surge
    

    Visit www.blackbaud.com/press-room for more information about Blackbaud's recent highlights.

    Dividend

    Blackbaud announced today that its Board of Directors has declared a fourth quarter 2016 dividend of $0.12 per share payable on December 15, 2016 to stockholders of record on November 23, 2016.

    Adoption of New Share-based Compensation Expense Accounting Standard

    During the three months ended September 30, 2016, Blackbaud early adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting which addresses, among other items, the accounting for income taxes and forfeitures, and cash flow presentation of share-based compensation. Under ASU 2016-09, excess tax benefits generated upon the settlement or exercise of stock awards are no longer recognized as additional paid-in capital but are instead recognized as a reduction to income tax expense. This change in accounting for income taxes is effective on a prospective basis as of the beginning of the 2016 fiscal year. Cash flows related to excess tax benefits are required to be presented as an operating activity rather than a financing activity. In addition, all cash tax payments made on an employee's behalf for shares withheld upon vesting or settlement are required to be presented as a financing activity. Blackbaud adopted all amendments related to cash flow presentation on a retrospective basis.

    The early adoption of ASU 2016-09 increased GAAP net income by $1.2 million for both the three months ended March 31, 2016 and June 30, 2016, respectively, and increased net cash provided by operating activities and net cash used in financing activities by $6.7 million and $4.1 million for the three months ended March 31, 2016 and June 30, 2016, respectively. The impacts of adoption are reflected in Blackbaud's guidance and its GAAP results for the nine months ended September 30, 2016. In addition, retrospective application of the amendments related to cash flow presentation resulted in a $4.2 million increase in both net cash provided by operating activities and net cash used in financing activities for the nine months ended September 30, 2015. Blackbaud will provide more detailed information regarding the impact of the early adoption of ASU 2016-09 in its quarterly report on Form 10-Q for the quarter ended September 30, 2016.

    Financial Outlook

    Updated full year financial guidance.

    --  Non-GAAP revenue of $725.0 million to $740.0 million
    --  Non-GAAP income from operations of $141.0 million to $147.0 million
    --  Non-GAAP operating margin of 19.4% to 19.9%
    --  Non-GAAP diluted earnings per share of $1.90 to $1.98
    --  Cash flow from operations of $147 million to $157 million
    

    Blackbaud has not reconciled forward-looking full year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.

    Conference Call Details

    What: Blackbaud's Fiscal 2016 Third Quarter Conference Call
    When: November 2, 2016
    Time: 8:00 a.m. (Eastern Time)
    Live Call: 1-800-324-5531 (domestic) or 1-719-325-2141 (international); passcode 561800.
    Webcast: Blackbaud's Investor Relations Webpage

    About Blackbaud

    Blackbaud is the world's leading cloud software company powering social good. Serving the entire social good community--nonprofits, foundations, corporations, education institutions, and individual change agents--Blackbaud connects and empowers organizations to increase their impact through software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and relationship management, digital marketing, advocacy, accounting, payments, analytics, school management, grant management, corporate social responsibility, and volunteerism. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada, Ireland, and the United Kingdom. For more information, visit www.blackbaud.com.

    Investor Contact: Media Contact: Mark Furlong Nicole McGougan Director of Investor Relations Blackbaud Public Relations 843-654-2097 843-654-3307 Mark.furlong@blackbaud.com Nicole.mcgougan@blackbaud.com

    Forward-Looking Statements

    Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: expectations that our revenue and operating cash flow will continue to grow and that our operating margins will continue to improve, and expectations that we will achieve our projected 2016 full year financial guidance. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; risks related to our dividend policy and stock repurchase program, including the possibility that we might discontinue payment of dividends; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from Blackbaud's investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

    Non-GAAP Financial Measures

    Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP revenue, non-GAAP recurring revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. Blackbaud has acquired businesses whose net tangible assets include deferred revenue. In accordance with GAAP reporting requirements, Blackbaud recorded write-downs of deferred revenue to fair value, which resulted in lower recognized revenue. Both on a quarterly and year-to-date basis, the revenue for the acquired businesses is deferred and typically recognized over a one-year period, so Blackbaud's GAAP revenues for the one-year period after the acquisitions will not reflect the full amount of revenues that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP measures described above reverse the acquisition-related deferred revenue write-downs so that the full amount of revenue booked by the acquired companies is included, which Blackbaud believes provides a more accurate representation of a revenue run-rate in a given period. In addition to reversing write-downs of acquisition-related deferred revenue, non-GAAP financial measures discussed above exclude the impact of certain items that Blackbaud believes are not directly related to its performance in any particular period, but are for its long-term benefit over multiple periods.

    In addition, Blackbaud discusses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth, which it believes provides useful information for evaluating the periodic growth of its business on a consistent basis. Each of these measures of non-GAAP organic revenue growth excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these non-GAAP organic revenue growth measures reflects presentation of full year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period, and it includes the non-GAAP revenue attributable to those companies, as if there were no acquisition-related write-downs of acquired deferred revenue to fair value as required by GAAP. In addition, each of these non-GAAP organic revenue growth measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business' organic revenue growth and revenue run-rate.

    As previously disclosed, beginning in 2016, Blackbaud now applies a non-GAAP effective tax rate of 32.0% in its determination of non-GAAP net income, which represents the GAAP effective tax rate, excluding the discrete tax effect of stock-based compensation. The non-GAAP effective tax rate utilized will be reviewed annually to determine whether it remains appropriate in consideration of Blackbaud's financial results including its periodic effective tax rate calculated in accordance with GAAP, its operating environment and related tax legislation in effect and other factors deemed necessary. All 2015 measures of the tax impact related to non-GAAP adjustments, non-GAAP net income and non-GAAP diluted earnings per share included in this news release are calculated under Blackbaud's historical non-GAAP effective tax rate of 39.0%.

    Blackbaud uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Blackbaud's ongoing operational performance. Blackbaud believes that these non-GAAP financial measures reflect the Blackbaud's ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. In addition, Blackbaud believes that the use of these non-GAAP financial measures provides additional information for investors to use in evaluating ongoing operating results and trends and in comparing its financial results from period-to-period with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to differences in the exact method of calculation between companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.


    Blackbaud, Inc. Consolidated balance sheets (Unaudited) (dollars in thousands) September 30, December 31, 2016 2015 Assets Current assets: Cash and cash equivalents $16,462 $15,362 Restricted cash due to customers 138,106 255,038 Accounts receivable, net of allowance of $4,097 and $4,943 at September 30, 2016 and December 31, 2015, respectively 86,111 80,046 Prepaid expenses and other current assets 52,145 48,666 Total current assets 292,824 399,112 Property and equipment, net 52,466 52,651 Software development costs, net 32,539 19,551 Goodwill 438,450 436,449 Intangible assets, net 264,405 294,672 Other assets 18,102 20,901 ------ ------ Total assets $1,098,786 $1,223,336 Liabilities and stockholders' equity Current liabilities: Trade accounts payable $19,601 $19,208 Accrued expenses and other current liabilities 44,441 57,461 Due to customers 138,106 255,038 Debt, current portion 4,375 4,375 Deferred revenue, current portion 248,152 230,216 ------- ------- Total current liabilities 454,675 566,298 Debt, net of current portion 370,642 403,712 Deferred tax liability 26,688 27,996 Deferred revenue, net of current portion 6,594 7,119 Other liabilities 7,467 7,623 Total liabilities 866,066 1,012,748 ------- --------- Commitments and contingencies Stockholders' equity: Preferred stock; 20,000,000 shares authorized, none outstanding - - Common stock, $0.001 par value; 180,000,000 shares authorized, 57,657,959 and 56,873,817 shares issued at September 30, 2016 and December 31, 2015, respectively 58 57 Additional paid-in capital 302,837 276,340 Treasury stock, at cost; 10,084,745 and 9,903,071 shares at September 30, 2016 and December 31, 2015, respectively (210,357) (199,861) Accumulated other comprehensive loss (942) (825) Retained earnings 141,124 134,877 Total stockholders' equity 232,720 210,588 ------- ------- Total liabilities and stockholders' equity $1,098,786 $1,223,336 ------------------------------------------ ---------- ----------


    Blackbaud, Inc. Consolidated statements of comprehensive income (Unaudited) (dollars in thousands, except per share Three months ended amounts) September 30, Nine months ended September 30, 2016 2015 2016 2015 Revenue Subscriptions $105,440 $80,901 $306,330 $233,423 Maintenance 36,410 38,209 111,019 115,732 Services 36,610 35,905 104,443 100,878 License fees and other 4,603 3,796 10,718 12,030 ----- ----- ------ ------ Total revenue 183,063 158,811 532,510 462,063 Cost of revenue Cost of subscriptions 51,943 39,485 153,772 115,063 Cost of maintenance 5,531 6,708 16,547 21,179 Cost of services 24,102 26,235 73,136 79,121 Cost of license fees and other 1,741 1,745 3,363 4,052 ----- ----- ----- ----- Total cost of revenue 83,317 74,173 246,818 219,415 ------ ------ ------- ------- Gross profit 99,746 84,638 285,692 242,648 ------ ------ ------- ------- Operating expenses Sales, marketing and customer success 40,690 31,139 115,707 89,424 Research and development 22,510 20,561 67,973 62,003 General and administrative 22,319 18,446 62,089 53,244 Amortization 687 524 2,147 1,536 Total operating expenses 86,206 70,670 247,916 206,207 ------ ------ ------- ------- Income from operations 13,540 13,968 37,776 36,441 ------ ------ ------ ------ Interest expense (2,641) (1,816) (8,037) (5,375) Other (expense) income, net (15) 192 (185) (1,369) --- --- ---- ------ Income before provision for income taxes 10,884 12,344 29,554 29,697 Income tax provision 1,950 4,433 5,323 10,459 ----- ----- ----- ------ Net income $8,934 $7,911 $24,231 $19,238 ------ ------ ------- ------- Earnings per share Basic $0.19 $0.17 $0.53 $0.42 Diluted $0.19 $0.17 $0.51 $0.41 Common shares and equivalents outstanding Basic weighted average shares 46,159,956 45,616,832 46,078,306 45,576,029 Diluted weighted average shares 47,394,106 46,596,714 47,268,469 46,403,196 Dividends per share $0.12 $0.12 $0.36 $0.36 Other comprehensive income (loss) Foreign currency translation adjustment 289 168 261 (354) Unrealized gain (loss) on derivative instruments, net of tax 409 (262) (378) (634) --- ---- ---- ---- Total other comprehensive income (loss) 698 (94) (117) (988) --- --- ---- ---- Comprehensive income $9,632 $7,817 $24,114 $18,250 -------------------- ------ ------ ------- -------


    Blackbaud, Inc. Consolidated statements of cash flows (Unaudited) Nine months ended September 30, ------------- (dollars in thousands) 2016 2015 Cash flows from operating activities Net income $24,231 $19,238 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 53,109 41,340 Provision for doubtful accounts and sales returns 3,139 4,573 Stock-based compensation expense 25,005 17,899 Deferred taxes (225) (2,274) Loss on sale of business - 1,976 Amortization of deferred financing costs and discount 718 660 Other non-cash adjustments (634) (159) Changes in operating assets and liabilities, net of acquisition and disposal of businesses: Accounts receivable (9,288) (6,378) Prepaid expenses and other assets (934) (324) Trade accounts payable 267 3,284 Accrued expenses and other liabilities (12,837) (6,299) Restricted cash due to customers 119,291 76,091 Due to customers (119,291) (76,091) Deferred revenue 17,593 15,973 Net cash provided by operating activities 100,144 89,509 Cash flows from investing activities Purchase of property and equipment (15,459) (14,560) Capitalized software development costs (19,078) (10,868) Purchase of net assets of acquired companies, net of cash (3,377) (520) Net cash used in sale of business - (521) Net cash used in investing activities (37,914) (26,469) Cash flows from financing activities Proceeds from issuance of debt 179,000 83,600 Payments on debt (212,581) (122,581) Debt issuance costs - (429) Employee taxes paid for withheld shares upon equity award settlement (10,497) (2,728) Proceeds from exercise of stock options 10 23 Dividend payments to stockholders (17,108) (16,883) Net cash used in financing activities (61,176) (58,998) Effect of exchange rate on cash and cash equivalents 46 (1,222) Net increase in cash and cash equivalents 1,100 2,820 Cash and cash equivalents, beginning of period 15,362 14,735 ------ ------ Cash and cash equivalents, end of period $16,462 $17,555 -------------------- ------- -------


    Blackbaud, Inc. Reconciliation of GAAP to non-GAAP financial measures (Unaudited) (dollars in thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 GAAP Revenue $183,063 $158,811 $532,510 $462,063 Non-GAAP adjustments: Add: Acquisition- related deferred revenue write-down - 1,126 3,639 7,132 Non-GAAP revenue $183,063 $159,937 $536,149 $469,195 -------- -------- -------- -------- GAAP gross profit $99,746 $84,638 $285,692 $242,648 GAAP gross margin 54.5% 53.3% 53.7% 52.5% Non-GAAP adjustments: Add: Acquisition- related deferred revenue write-down - 1,126 3,639 7,132 Add: Stock-based compensation expense 916 769 2,603 2,719 Add: Amortization of intangibles from business combinations 9,862 7,545 29,670 22,750 Add: Employee severance 18 527 160 1,467 Subtotal 10,796 9,967 36,072 34,068 Non-GAAP gross profit $110,542 $94,605 $321,764 $276,716 -------- ------- -------- -------- Non-GAAP gross margin 60.4% 59.2% 60.0% 59.0% GAAP income from operations $13,540 $13,968 $37,776 $36,441 GAAP operating margin 7.4% 8.8% 7.1% 7.9% Non-GAAP adjustments: Add: Acquisition- related deferred revenue write-down - 1,126 3,639 7,132 Add: Stock-based compensation expense 8,818 6,486 25,005 17,899 Add: Amortization of intangibles from business combinations 10,549 8,069 31,817 24,286 Add: Employee severance 72 631 473 2,211 Add: Acquisition- related integration costs 917 53 1,419 725 Add: Acquisition- related expenses 152 257 265 1,045 Subtotal 20,508 16,622 62,618 53,298 Non-GAAP income from operations $34,048 $30,590 $100,394 $89,739 Non-GAAP operating margin 18.6% 19.1% 18.7% 19.1% GAAP net income $8,934 $7,911 $24,231 $19,238 Shares used in computing GAAP diluted earnings per share 47,394,106 46,596,714 47,268,469 46,403,196 GAAP diluted earnings per share $0.19 $0.17 $0.51 $0.41 Non-GAAP adjustments: Add: Total Non-GAAP adjustments affecting income from operations 20,508 16,622 62,618 53,298 Add: Loss on sale of business - - - 1,976 Less: Tax impact related to Non- GAAP adjustments (8,096) (6,863) (24,172) (22,680) ------ ------ Non-GAAP net income $21,346 $17,670 $62,677 $51,832 ------- ------- ------- ------- Shares used in computing Non-GAAP diluted earnings per share 47,394,106 46,596,714 47,268,469 46,403,196 Non-GAAP diluted earnings per share $0.45 $0.38 $1.33 $1.12 ------------------- ----- ----- ----- -----

    Blackbaud, Inc. Reconciliation of GAAP to Non-GAAP financial measures (continued) (Unaudited) (dollars in thousands) Three months ended Nine months ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 Detail of certain Non-GAAP adjustments: Stock-based compensation expense: Included in cost of revenue: Cost of subscriptions $318 $213 $904 $681 Cost of maintenance 137 107 391 353 Cost of services 461 449 1,308 1,685 Total included in cost of revenue 916 769 2,603 2,719 Included in operating expenses: Sales, marketing and customer success 1,055 768 2,972 2,273 Research and development 1,674 1,145 4,874 3,309 General and administrative 5,173 3,804 14,556 9,598 ----- ----- Total included in operating expenses 7,902 5,717 22,402 15,180 ----- ----- Total stock-based compensation expense $8,818 $6,486 $25,005 $17,899 ------ ------ ------- ------- Amortization of intangibles from business combinations: Included in cost of revenue: Cost of subscriptions $7,790 $5,761 $23,454 $17,300 Cost of maintenance 1,332 1,000 3,996 3,160 Cost of services 655 698 1,965 2,007 Cost of license fees and other 85 86 255 283 --- --- Total included in cost of revenue 9,862 7,545 29,670 22,750 Included in operating expenses 687 524 2,147 1,536 --- --- ----- ----- Total amortization of intangibles from business combinations $10,549 $8,069 $31,817 $24,286 -------------------------------------- ------- ------ ------- -------


    Blackbaud, Inc. Reconciliation of GAAP to Non-GAAP financial measures (continued) (Unaudited) Unaudited calculations of non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth for the three and nine months ended September 30, 2016, as well as unaudited reconciliations of those non-GAAP measures to their most directly comparable GAAP measures, are as follows: (dollars in thousands) Three months ended Nine months ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 GAAP revenue $183,063 $158,811 $532,510 $462,063 GAAP revenue growth 15.3% 15.2% Add: Non-GAAP acquisition- related revenue (1) - 10,505 3,639 33,241 Less: Revenue from divested businesses (2) - - - (586) Total Non-GAAP adjustments - 10,505 3,639 32,655 Non-GAAP revenue (3) $183,063 $169,316 $536,149 $494,718 -------- -------- -------- -------- Non-GAAP organic revenue growth 8.1% 8.4% Non-GAAP revenue (3) $183,063 $169,316 $536,149 $494,718 Foreign currency impact on Non- GAAP revenue (4) 963 - 3,377 - Non-GAAP revenue on constant currency basis (4) $184,026 $169,316 $539,526 $494,718 -------- -------- -------- -------- Non-GAAP organic revenue growth on constant currency basis 8.7% 9.1% GAAP subscriptions revenue $105,440 $80,901 $306,330 $233,423 GAAP maintenance revenue $36,410 $38,209 111,019 115,732 GAAP recurring revenue $141,850 $119,110 $417,349 $349,155 GAAP recurring revenue growth 19.1% 19.5% Add: Non-GAAP acquisition- related revenue (1) - 10,335 3,625 32,283 Less: Revenue from divested businesses (2) - - - (378) Total Non-GAAP adjustments - 10,335 3,625 31,905 Non-GAAP recurring revenue $141,850 $129,445 $420,974 $381,060 -------- -------- -------- -------- Non-GAAP organic recurring revenue growth 9.6% 10.5% ---------------- --- ----

    (1) Non-GAAP acquisition- related revenue excludes incremental acquisition- related revenue calculated in accordance with GAAP that is attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, non- GAAP acquisition- related revenue reflects presentation of full- year incremental non-GAAP revenue derived from such companies, as if they were combined throughout the prior period, and it includes the non- GAAP revenue from the acquisition- related deferred revenue write-down attributable to those companies. (2) For businesses divested in the prior fiscal year, non- GAAP organic revenue growth excludes the prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested business within the results of the combined company for the same period of time in both the prior and current periods. (3) Non-GAAP revenue for the prior year periods presented herein will not agree to non- GAAP revenue presented in the respective prior period quarterly financial information solely due to the manner in which non- GAAP organic revenue growth is calculated. (4) To determine non-GAAP organic revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Canadian Dollar, EURO, British Pound and Australian Dollar.

    Additional details of Blackbaud's methodology for calculating non-GAAP organic revenue growth and non-GAAP organic revenue growth on a constant currency basis can be found on Blackbaud's investor relations page.

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    Jive Software Announces Third Quarter 2016 Results

    PALO ALTO, Calif., Nov. 1, 2016 /PRNewswire/ -- Jive Software, Inc. , the leading provider of modern communication and collaboration solutions for business, today announced financial results for its third quarter ended September 30, 2016.

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    "Our performance in the third quarter exceeded guidance across the board," said Elisa Steele, CEO of Jive Software. "GAAP loss from operations for the third quarter was $603,000, which was a strong improvement of $8.2 million compared to one year ago. We delivered non-GAAP operating profitability of $3.8 million, which represents the second quarter in a row that we have accomplished this important milestone as a public company."

    "We were pleased with our consistent sequential performance this quarter as we continued to execute on our strategies, build operational strength and optimize spend. As part of our disciplined go-to-market approach, we continue to target opportunities within the enterprise segment and further leverage Jive's leading Collaboration Hub strategy that increases the value of customers' investment in multiple vendors' business applications. As we position the company for the longer term, we are taking steps to deliver our future product vision of a digital workplace that connects employees, customers and partners in a single, virtual Collaboration Hub," said Steele.

    "Our key focus is on execution for the remainder of the year. We are balancing our investments to lay the foundation for future growth as we maintain a disciplined cost structure to achieve our financial goals, while remaining profitable on a non-GAAP operating basis," concluded Steele.

    Third Quarter 2016 Financial Highlights

    --  Revenue: Total revenue for the third quarter was $50.7 million, an
    increase of 2% on a year-over-year basis. Within total revenue, product
    revenue was $46.6 million for the third quarter, an increase of 2% on a
    year-over-year basis. Professional services revenue for the third
    quarter was $4.1 million, an increase of 3% on a year-over-year basis.
    --  Non-GAAP Billings: Short-term billings, which Jive defines as revenue
    plus the change in short-term deferred revenue, were $48.3 million for
    the third quarter, an increase of 1% year-over-year. Total billings,
    which Jive defines as revenue plus the change in short and long-term
    deferred revenue, was $46.8 million, an increase of 8% on a
    year-over-year basis.
    --  Gross Profit: GAAP gross profit for the third quarter was $34.6 million,
    an increase of 9% year-over-year, and GAAP gross margin was 68%.
    Non-GAAP gross profit was $35.5 million for the third quarter, an
    increase of 6% year-over-year, and non-GAAP gross margin was 70%.
    --  Loss from Operations: GAAP loss from operations for the third quarter
    was $603,000, compared to a loss from operations of $8.8 million for the
    third quarter of 2015. Non-GAAP income from operations was $3.8 million,
    compared to non-GAAP loss from operations of $2.2 million for the third
    quarter of 2015.
    --  Net Loss: GAAP net loss for the third quarter was $745,000, compared to
    a net loss of $8.8 million for the same period last year. GAAP net loss
    per share for the third quarter was $0.01, based on 77.9 million
    weighted-average shares outstanding, compared to a net loss per share of
    $0.12, based on 75.6 million weighted-average shares outstanding, for
    the same period last year.
    

    Non-GAAP net income for the third quarter was $3.7 million, compared to a non-GAAP net loss of $2.3 million for the same period last year. Non-GAAP net income per share for the third quarter was $0.05, based on 80.3 million weighted-average diluted shares outstanding, compared to a non-GAAP net loss per share of $0.03, based on 75.6 million weighted-average shares outstanding, for the same period last year.

    --  Balance Sheet and Cash Flow: As of September 30, 2016, Jive had cash and
    cash equivalents and marketable securities of $102.5 million, compared
    to $112.7 million as of December 31, 2015. Cash used by operations was
    $4.7 million and Jive used $0.4 million to purchase capital expenditures
    and finance capital leases, leading to negative free cash flow of $5.1
    million for the third quarter of 2016, compared to negative free cash
    flow of $6.3 million for the third quarter of 2015. Free cash flow is
    defined as cash flows provided by operating activities minus cash flows
    used to purchase capital expenditures and finance capital leases.
    

    A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

    Third Quarter and Recent Business Highlights

    --  Achieved new customer wins with Close Brothers Group Plc, Clyde and Co.,
    Corning Museum of Glass, First Home Mortgage, Ford Motor Company,
    Fraunhofer IAO, hc1.com, Logicor, M3 Insurance Solutions, National
    Council of Architectural Registration Boards (NCARB), Positivo
    Informatica, SIEMonster Inc., STMicroelectronics, Tampa Bay Sports and
    Entertainment, and Truth Initiative, among others.
    --  Expanded or renewed customer relationships with ADEO Services,
    Athenahealth, Inc., CA Technologies, Credit Suisse, Department of
    Justice, Detroit Diesel Corporation, Driven Brands, Inc., EMC
    Corporation, FICO, Fidelity Investments, FireEye, HomeAway, Leidos, MD
    Anderson Physicians Network, Medidata Solutions, National Archives,
    National Instruments, Pearson Inc., PEO C3T - a division of the U.S.
    Army, Ricoh Group, ServiceNow, Shaw Communications Inc., SolarWinds,
    Starwood Hotels, Swedish Partners Medical Group, Tableau Software, Inc.
    and Windstream Corporation, among others.
    --  Jive's Interactive Intranet solution was named the winner of the Gold
    Stevie Award in the Best New Product category for big data solutions by
    the 13th Annual International Business Awards. The International
    Business Awards is a premier business awards program that honors the
    achievements of organizations and professionals. This year there was a
    record total of more than 3,800 nominations in a wide range of
    categories from more than 60 countries. Jive's Interactive Intranet was
    recognized for specific innovations including analytics, search and
    personalization services that seamlessly pull together the right
    experts, content and interactions across any apps or devices an employee
    prefers. Jive was also recognized for its state-of-the-art recommender
    engine, which helps companies drive employee engagement by leveraging
    machine-learning insights to uncover the most relevant digital workplace
    experiences and content.
    --  Jive was ranked as a Leader in The Aragon Research Globe(TM) for Social
    Software, 2016: Shifting to Work and Outcomes report for the third
    consecutive year. Aragon Research evaluated 21 global enterprise social
    networking (ESN) vendors for this year's report, and recognized Jive for
    its strong partner ecosystem, powerful analytics and continued momentum
    behind new innovation.
    

    Financial Outlook

    As of November 1, 2016, Jive's guidance for its fourth quarter 2016 and full year 2016 is as follows:

    --  Fourth Quarter 2016 Guidance:
    --  Total revenue is expected to be in the range of $49.5 million to
    $50.5 million.
    --  Non-GAAP income from operations is expected to be in the range of
    $2.0 million to $3.0 million.
    --  Non-GAAP earnings per share are expected to be in the range of $0.02
    to $0.04 based on approximately 81.2 million weighted-average
    diluted shares outstanding.
    --  Change in short-term billings is expected to be in the range of 0%
    to 5%.
    --  Free cash flow is expected to be in the range of $3.0 million to
    $5.0 million.
    --  Full Year 2016 Guidance:
    --  Total revenue is expected to be in the range of $201.9 million to
    $202.9 million.
    --  Non-GAAP income from operations is expected to be in the range of
    $5.4 million to $6.4 million.
    --  Non-GAAP earnings per share are expected to be in the range of $0.06
    to $0.07 based on approximately 80.2 million weighted-average
    diluted shares outstanding.
    --  Change in short-term billings is expected to be in the range of
    negative 2% to negative 1%.
    --  Free cash flow is expected to be in the range of negative $4.6
    million to negative $2.6 million.
    

    With respect to the Company's expectations under "Financial Outlook" above, the Company's non-GAAP guidance excludes stock-based compensation, income taxes, amortization of intangible assets, restructuring, capital expenditures, and capital lease payments, which are reconciling items between those non-GAAP measures and their most closely comparable GAAP measures. The Company does not provide reconciliations of non-GAAP income from operations, non-GAAP earnings per share or free cash flow to the corresponding GAAP measures due to the high variability of, and difficulty in making accurate forecasts and projections with respect to, the items excluded from these non-GAAP financial measures. In particular, stock-based compensation and restructuring charges are impacted by the Company's retention needs as well as the future fair market value of its common stock, and free cash flow is impacted by the timing and amounts of capital expenditures, all of which are difficult to predict and subject to constant change. Accordingly, a reconciliation to GAAP loss from operations, GAAP loss per share, and cash flows from operating activities is not available without unreasonable effort. The actual amounts of these excluded items will have a significant impact on the Company's non-GAAP income from operations, non-GAAP earnings per share and free cash flow.

    Quarterly Conference Call

    Jive will host a conference call today at 2:00 p.m. PT (5:00 p.m. ET) to review the Company's financial results for the third quarter and outlook for the fourth quarter and full year 2016. Listeners may access a live webcast of the conference call along with an accompanying slide presentation under "News, Events & Presentations, Quarterly Earnings" on Jive's investor relations website at http://quarterlyearnings.jivesoftware.com. A replay of the webcast will be available on the website following the live event. To listen by phone, dial 844-492-3729 (domestic) or 412-542-4195 (international). A replay of this conference call can be accessed through November 8, 2016 by dialing 877-344-7529 (domestic) or 412-317-0088 (international). The replay pass code is 10095079.

    About Jive Software

    Jive is the leader in accelerating workplace digital transformation for organizations, enabling people to work better together. The company provides industry-leading Interactive Intranet and Customer Community solutions that connect people, information and ideas to help businesses outpace their competitors. With more than 30 million users worldwide and customers in virtually every industry, Jive is consistently recognized as a leader by top analyst firms, including Gartner Inc. and Aragon Research. More information can be found at www.jivesoftware.com or the Jive Blog.

    Non-GAAP Financial Measures

    The Company uses certain non-GAAP financial measures in this release. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles.

    Non-GAAP gross profit, income (loss) from operations, net income (loss) and net income (loss) per share exclude stock-based compensation expenses and amortization of acquisition related intangible assets. Free cash flow is defined by the Company as cash flows provided by operating activities less principal payments on capital leases and purchases of property and equipment. Total billings is defined by the Company as revenue plus the change in total deferred revenue. Short-term billings is defined as revenue plus the change in short-term deferred revenue. Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional meaningful insight for analysts and investors in evaluating the Company's financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool, are not intended to be an alternative to financial measures prepared in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies as non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables.

    Safe Harbor Statement

    "Safe Harbor" statement under Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements, including statements concerning our financial guidance for the fourth fiscal quarter of 2016 and full fiscal year of 2016, expectations regarding our strategy of driving improved financial and operational performance, the timing of sustainable non-GAAP operating profitability, expense reductions and related charges, new business initiatives and changes in product roadmap and development; assumptions related to cost savings, product demand and operating efficiencies; the effectiveness and intended benefits of our product releases; and our belief that we are well positioned to build upon our momentum over time. The achievement of success in the matters covered by such forward-looking statements involves substantial risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results or events could differ materially from the results expressed or implied by the forward-looking statements we make.

    The risk and uncertainties referred to above include, but are not limited to, risks associated with our limited operating history; expectations regarding the widespread adoption of social business platforms by enterprises; uncertainty regarding the market for social business platforms; changes in the competitive dynamics of our market; our ability to increase and predict new subscriptions; subscription renewal or upsell rates and the impact these rates may have on our future revenues; our ability to increase the pace at which we are able to add new customers, our reliance on our own controls and third-party service providers to host some of our products; the risk that our security measures could be breached and unauthorized access to customer data could be obtained; potential third party intellectual property infringement claims; and the price volatility of our common stock.

    More information about potential factors that could affect our business and financial results is contained in our quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We do not intend and undertake no duty to release publicly any updates or revisions to any forward-looking statements contained herein.

    JIVE SOFTWARE, INC. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) For the Three Months Ended For the Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- Revenues: Product $46,659 $45,960 $139,730 $133,628 Professional services 4,062 3,945 12,669 12,014 ----- ------ Total revenues 50,721 49,905 152,399 145,642 Cost of revenues: Product 11,605 12,623 36,620 36,630 Professional services 4,473 5,542 15,237 16,912 ----- ------ Total cost of revenues 16,078 18,165 51,857 53,542 ------ ------ ------ ------ Gross profit 34,643 31,740 100,542 92,100 Operating expenses: Research and development 10,990 13,187 34,565 40,737 Sales and marketing 17,920 20,172 57,021 57,996 General and administrative 6,420 7,141 19,296 20,420 Restructuring (84) - 4,029 - Total operating expenses 35,246 40,500 114,911 119,153 ------ ------ ------- ------- Loss from operations (603) (8,760) (14,369) (27,053) Other income (expense), net: Interest income 143 72 395 192 Interest expense (35) (27) (116) (149) Other, net (25) (1) 218 1,036 Total other income, net 83 44 497 1,079 --- --- --- ----- Loss before provision for income taxes (520) (8,716) (13,872) (25,974) Provision for income taxes 225 113 1,007 330 --- --- Net loss $(745) $(8,829) $(14,879) $(26,304) Basic and diluted net loss per share $(0.01) $(0.12) $(0.19) $(0.35) Shares used in basic and diluted per share calculations 77,902 75,632 77,179 74,922 ====== ====== ====== ======

    JIVE SOFTWARE, INC. Consolidated Balance Sheets (In thousands) (Unaudited) September 30, December 31, 2016 2015 ---- ---- Assets Current assets: Cash and cash equivalents $7,062 $9,870 Short-term marketable securities 94,390 96,410 Accounts receivable 39,365 54,090 Prepaid expenses and other current assets 13,868 13,135 ------ ------ Total current assets 154,685 173,505 Marketable securities, noncurrent 1,004 6,429 Property and equipment 9,878 12,747 Goodwill 29,753 29,753 Intangible assets 2,384 4,546 Other assets 5,635 8,165 ----- ----- Total assets $203,339 $235,145 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,827 $3,684 Accrued payroll and related liabilities 8,833 6,954 Other accrued liabilities 6,435 7,842 Deferred revenue, current 113,775 131,850 Term debt, current 1,800 2,400 ----- Total current liabilities 132,670 152,730 Deferred revenue, less current portion 8,669 16,392 Term debt, less current portion - 1,200 Other long-term liabilities 2,781 2,682 ----- Total liabilities 144,120 173,004 Stockholders' Equity: Common stock 7 7 Less treasury stock at cost (3,352) (3,352) Additional paid-in capital 396,302 384,164 Accumulated deficit (333,416) (318,537) Accumulated other comprehensive loss (322) (141) Total stockholders' equity 59,219 62,141 ------ ------ Total liabilities and stockholders' equity $203,339 $235,145

    JIVE SOFTWARE, INC. Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, ------------- ------------- 2016 2015 2016 2015 ---- ---- ---- ---- Cash flows from operating activities: Net loss $(745) $(8,829) $(14,879) $(26,304) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 2,841 3,907 9,531 11,871 Stock-based compensation 4,090 5,477 11,599 16,765 Change in deferred taxes 180 32 175 95 Non-recurring gain - - - (1,107) Other 101 - 175 - Decrease (increase) in: Accounts receivable, net (5,443) (351) 14,725 19,692 Prepaid expenses and other assets (1,870) (323) (199) (664) Increase (decrease) in: Accounts payable (1,489) 1,698 (1,744) 4,155 Accrued payroll and related liabilities 505 (1,298) 2,471 (779) Other accrued liabilities 923 1,443 (1,586) (207) Deferred revenue (3,929) (6,617) (25,798) (19,265) Other long-term liabilities 173 3 4 282 --- --- --- --- Net cash provided by (used in) operating activities (4,663) (4,858) (5,526) 4,534 Cash flows from investing activities: Payments for purchase of property and equipment (395) (1,440) (2,042) (4,783) Purchases of marketable securities (20,719) (23,688) (60,143) (81,445) Sales of marketable securities - 6,601 1,001 17,903 Maturities of marketable securities 22,700 21,299 66,098 61,101 ------ ------ ------ ------ Net cash provided by (used in) investing activities 1,586 2,772 4,914 (7,224) Cash flows from financing activities: Proceeds from exercise of stock options 13 285 318 1,073 Taxes paid related to net share settlement of equity awards (273) (194) (648) (789) Capital lease payments (49) - (80) - Repayments of term loans (600) (600) (1,800) (1,800) Non-recurring gain - - - 1,107 --- --- ----- Net cash used in financing activities (909) (509) (2,210) (409) ---- ---- ------ ---- Net decrease in cash and cash equivalents (3,986) (2,595) (2,822) (3,099) Effect of exchange rate changes (14) 3 14 (44) Cash and cash equivalents, beginning of period 11,062 20,043 9,870 20,594 ------ ------ ----- ------ Cash and cash equivalents, end of period $7,062 $17,451 $7,062 $17,451

    JIVE SOFTWARE, INC. Reconciliation of Non-GAAP Information (In thousands, except per share data) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Gross profit, as reported $34,643 $31,740 $100,542 $92,100 Add back: Stock-based compensation 487 734 1,676 2,388 Amortization related to acquisitions 406 905 1,966 2,788 Gross profit, non- GAAP $35,536 $33,379 $104,184 $97,276 Gross margin, non-GAAP 70% 67% 68% 67% Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Research and development, as reported $10,990 $13,187 $34,565 $40,737 less: Stock-based compensation 979 1,644 2,819 5,997 Amortization related to acquisitions - 61 52 649 Research and development, non- GAAP $10,011 $11,482 $31,694 $34,091 As percentage of total revenues, non-GAAP 20% 23% 21% 23% Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Sales and marketing, as reported $17,920 $20,172 $57,021 $57,996 less: Stock-based compensation 867 1,164 2,522 2,958 Amortization related to acquisitions 17 129 143 388 Sales and marketing, non-GAAP $17,036 $18,879 $54,356 $54,650 As percentage of total revenues, non-GAAP 34% 38% 36% 38% Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- General and administrative, as reported $6,420 $7,141 $19,296 $20,420 less: Stock-based compensation 1,757 1,937 4,555 5,426 General and administrative, non-GAAP $4,663 $5,204 $14,741 $14,994 As percentage of total revenues, non-GAAP 9% 10% 10% 10% Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Loss from operations, as reported (603) $(8,760) (14,369) $(27,053) Add back: Stock-based compensation 4,090 5,479 11,572 16,769 Amortization related to acquisitions 423 1,095 2,161 3,825 Restructuring (84) - 4,029 - Income (loss) from operations, non- GAAP $3,826 $(2,186) $3,393 $(6,459) As percentage of total revenues, non-GAAP 8% (4)% 2% (4)% Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Loss before provision for income taxes, as reported $(520) $(8,716) $(13,872) $(25,974) Add back: Stock-based compensation 4,090 5,479 11,572 16,769 Amortization related to acquisitions 423 1,095 2,161 3,825 Restructuring (84) - 4,029 - Less: Non-recurring gain - - - (1,107) Income (loss) before provision for income taxes, non-GAAP $3,909 $(2,142) $3,890 $(6,487) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Net loss, as reported $(745) $(8,829) $(14,879) $(26,304) Add back: Stock-based compensation 4,090 5,479 11,572 16,769 Amortization related to acquisitions 423 1,095 2,161 3,825 Restructuring (84) - 4,029 - Less: Non-recurring gain - - - (1,107) Net income (loss), non-GAAP $3,684 $(2,255) $2,883 $(6,817) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- GAAP weighted average diluted shares 77,902 75,632 77,179 74,922 Dilutive equity awards included in non-GAAP earnings per share 2,426 - 2,095 - Non-GAAP weighted average diluted shares 80,328 75,632 79,274 74,922 ====== ====== ====== ====== Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Diluted net loss per share, as reported $(0.01) $(0.12) $(0.19) $(0.35) Add back: Stock-based compensation 0.05 0.07 0.15 0.22 Amortization related to acquisitions 0.01 0.01 0.03 0.05 Restructuring (0.00) - 0.05 - Less: Non-recurring gain - - - (0.01) Diluted net income (loss) per share, non-GAAP (1) $0.05 $(0.03) $0.04 $(0.09) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Total revenues $50,721 $49,905 $152,399 $145,642 Deferred revenue, current, end of period 113,775 121,752 113,775 121,752 Less: Deferred revenue, current, beginning of period (116,218) (123,779) (131,850) (128,592) Short-term billings $48,278 $47,878 $134,324 $138,802 Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Total revenues $50,721 $49,905 $152,399 $145,642 Deferred revenue, end of period 122,444 141,274 122,444 141,274 Less: Deferred revenue, beginning of period (126,373) (147,891) (148,242) (160,539) Total billings $46,792 $43,288 $126,601 $126,377 Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Cash flows provided by (used in) operating activities $(4,663) $(4,858) $(5,526) $4,534 Payments for purchase of property and equipment (395) (1,440) (2,042) (4,783) Capital lease payments (49) - (80) - Free cash flow $(5,107) $(6,298) $(7,648) $(249)

    (1) Per share amounts may not add due to rounding.

    Logo - http://photos.prnewswire.com/prnh/20130827/MM70466LOGO

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jive-software-announces-third-quarter-2016-results-300355283.html

    Photo: http://photos.prnewswire.com/prnh/20130827/MM70466LOGO Jive Software

    CONTACT: Investor Contacts: Cindy Klimstra, Jive Software, (650)
    319-4343, cindy.klimstra@jivesoftware.com, or Brian Denyeau, ICR, (646)
    277-1251, brian.denyeau@icrinc.com, or Media Contact: Jason Khoury, Jive
    Software, (650) 847-8308, jason.khoury@jivesoftware.com

    Web site: http://www.jivesoftware.com/




    Trimble Reports Third Quarter 2016 Results- Third Quarter 2016 Revenue $584.1 million- GAAP Diluted Earnings Per Share $0.15; Non-GAAP Diluted Earnings Per Share $0.33

    SUNNYVALE, Calif., Nov. 1, 2016 /PRNewswire/ -- Trimble today announced financial results for the third quarter of 2016.

    Third Quarter 2016 Financial Summary

    Third quarter 2016 revenue of $584.1 million was up 4 percent as compared to the third quarter of 2015. Engineering and Construction revenue was $332.4 million, up 2 percent. Field Solutions revenue was $77.9 million, up 6 percent. Mobile Solutions revenue was $138.5 million, up 5 percent. Advanced Devices revenue was $35.3 million, up 15 percent.

    GAAP operating income was $55.3 million, up 20 percent as compared to the third quarter of 2015. GAAP operating margin was 9.5 percent of revenue as compared to 8.2 percent of revenue in the third quarter of 2015.

    GAAP net income was $39.2 million, up 6 percent as compared to the third quarter of 2015. Diluted GAAP earnings per share were $0.15 as compared to diluted GAAP earnings per share of $0.14 in the third quarter of 2015.

    Non-GAAP operating income of $110.8 million was up 6 percent as compared to the third quarter of 2015. Non-GAAP operating margin was 19.0 percent of revenue as compared to 18.7 percent of revenue in the third quarter of 2015.

    Non-GAAP net income of $84.0 million was up 8 percent as compared to the third quarter of 2015. Diluted non-GAAP earnings per share were $0.33 as compared to diluted non-GAAP earnings per share of $0.30 in the third quarter of 2015.

    The GAAP tax rate for the quarter was 25 percent as compared to 15 percent in the third quarter of 2015, and the non-GAAP tax rate was 24 percent, unchanged from the third quarter of 2015.

    Operating cash flow for the first three quarters of 2016 was $282.0 million, up 2 percent as compared to the first three quarters of 2015. Deferred revenue for the third quarter of 2016 was $294.3 million, up 7 percent as compared to the third quarter of 2015.

    During the third quarter, Trimble repurchased approximately 0.4 million shares of its common stock for $10.0 million, and year to date has repurchased approximately 4.2 million shares for $102.2 million. Approximately $148 million remains under the current share repurchase authorization as of the end of the third quarter.

    "Our results in the quarter demonstrated progress, both top and bottom line," said Steven W. Berglund, Trimble's president and chief executive officer. "We encountered more challenges than anticipated in the U.S., particularly in the geospatial market. Although we anticipate market ambiguities to persist into 2017, we continue to expect 2017 to be a year of growth and margin expansion."

    Forward Looking Guidance

    For the fourth quarter of 2016 Trimble expects revenue to be between $562 million and $592 million with GAAP earnings per share of $0.11 to $0.16 and non-GAAP earnings per share of $0.27 to $0.32. Non-GAAP guidance excludes the amortization of intangibles of $34 million related to previous acquisitions, anticipated acquisition costs of $1 million, the anticipated impact of stock-based compensation expense of $14 million, and $4 million in anticipated restructuring charges. GAAP guidance assumes a tax rate of 28 percent and non-GAAP guidance assumes a tax rate of 24 percent. Both GAAP and non-GAAP earnings per share assume approximately 254 million shares outstanding.

    Investor Conference Call / Webcast Details

    Trimble will hold a conference call on November 1 at 2:00 p.m. PT to review its third quarter 2016 results. An accompanying slide presentation will be made available on the "Investors" section of the Trimble website, www.trimble.com, under the subheading "Events & Presentations". The call will be broadcast live on the web at http://investor.trimble.com. Investors without Internet access may dial into the call at (800) 528-9198 (U.S.) or (702) 928-6633 (international). The passcode is 3870795. The replay will also be available on the Web at the address above.

    Use of Non-GAAP Financial Information

    To help our investors understand our past financial performance and our future results, as well as our performance relative to competitors, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. These non-GAAP measures can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, and to make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. We believe that these non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Further, we believe some of our investors track our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Core operating performance excludes items that are non-cash, not expected to recur or not reflective of ongoing financial results. Management also believes that looking at our core operating performance provides a supplemental way to provide consistency in period to period comparisons.

    The specific non-GAAP measures, which we use along with a reconciliation to the nearest comparable GAAP measures and the explanation for why these non-GAAP measures provide useful information to investors regarding our financial condition and results of operations and why management chose to exclude selected items can be found at the end of this release. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to this earnings release. Additional financial information about our use of non-GAAP results can be found on the investor relations page of our Web site at: http://investor.trimble.com.

    About Trimble

    Trimble is transforming the way the world works by delivering products and services that connect the physical and digital worlds. Core technologies in positioning, modeling, connectivity and data analytics enable customers to improve productivity, quality, safety and sustainability. From purpose built products to enterprise lifecycle solutions, Trimble software, hardware and services are transforming a broad range of industries such as agriculture, construction, geospatial and transportation and logistics. For more information about Trimble , visit: www.trimble.com.

    Safe Harbor

    Certain statements made in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include expectations for future financial market and economic conditions, the potential for growth and margin expansion in 2017, the impact of acquisitions, the ability to deliver revenue, earnings per share and other financial projections that Trimble has guided for the fourth quarter and full year, including the expected tax rate, anticipated impact of stock-based compensation expense, amortization of intangibles related to previous acquisitions, anticipated acquisition costs, restructuring charges, and the anticipated number of diluted shares outstanding. These forward-looking statements are subject to change, and actual results may materially differ from those set forth in this press release due to certain risks and uncertainties. The Company's results may be adversely affected if the Company is unable to market, manufacture and ship new products, obtain new customers, or integrate new acquisitions. The Company's results would also be negatively impacted by weakening in the macro environment or foreign exchange fluctuations. Any failure to achieve predicted results could negatively impact the Company's revenues, cash flow from operations, and other financial results. The Company's financial results will also depend on a number of other factors and risks detailed from time to time in reports filed with the SEC, including its quarterly reports on Form 10-Q and its annual report on Form 10- K, such as changes in economic conditions, further worsening in the geospatial market, critical part supply chain shortages, and possible write-offs of goodwill. Undue reliance should not be placed on any forward-looking statement contained herein, especially in light of greater uncertainty than normal in the economy in general. These statements reflect the Company's position as of the date of this release. The Company expressly disclaims any undertaking to release publicly any updates or revisions to any statements to reflect any change in the Company's expectations or any change of events, conditions, or circumstances on which any such statement is based.

    FTRMB

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share data) (Unaudited) Third Quarter of First Three Quarters of ---------------- ----------------------- 2016 2015 2016 2015 ---- ---- ---- ---- Revenue: Product $384.9 $373.0 $1,185.5 $1,168.2 Service 105.6 103.9 316.9 310.5 Subscription 93.6 85.4 274.3 252.0 Total revenue 584.1 562.3 1,776.7 1,730.7 ----- ----- ------- ------- Cost of sales: Product 186.6 175.5 576.0 554.0 Service 40.7 39.4 126.3 123.0 Subscription 26.0 26.1 79.3 75.8 Amortization of purchased intangible assets 21.8 23.3 69.9 68.8 Total cost of sales 275.1 264.3 851.5 821.6 ----- ----- ----- ----- Gross margin 309.0 298.0 925.2 909.1 ----- ----- ----- ----- Gross margin (%) 52.9 % 53.0 % 52.1 % 52.5 % Operating expense: Research and development 86.9 79.6 266.6 251.3 Sales and marketing 88.6 89.1 282.7 281.8 General and administrative 59.2 63.2 193.1 192.1 Restructuring charges 3.5 2.7 9.8 9.0 Amortization of purchased intangible assets 15.5 17.4 47.3 53.4 Total operating expense 253.7 252.0 799.5 787.6 ----- ----- ----- ----- Operating income 55.3 46.0 125.7 121.5 Non-operating income (expense), net: Interest expense (6.6) (6.4) (19.8) (19.1) Foreign currency transaction gain (loss), net - 0.1 (1.6) 1.2 Income from equity method investments, net 5.2 4.7 13.9 14.1 Other income (expense), net (1.7) (0.9) 1.7 5.8 Total non-operating income (expense), net (3.1) (2.5) (5.8) 2.0 ---- ---- ---- --- Income before taxes 52.2 43.5 119.9 123.5 Income tax provision 13.0 6.5 25.4 26.7 Net income 39.2 37.0 94.5 96.8 Less: Net loss attributable to noncontrolling interests - (0.1) (0.2) (0.3) Net income attributable to Trimble Navigation Limited $39.2 $37.1 $94.7 $97.1 ===== ===== ===== ===== Earnings per share attributable to Trimble Navigation Limited: Basic $0.16 $0.15 $0.38 $0.38 ----- Diluted $0.15 $0.14 $0.37 $0.37 ------- Shares used in calculating earnings per share: Basic 249.7 254.8 250.5 257.5 ----- Diluted 253.2 257.2 253.7 260.3 -------

    CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) Third Quarter of Fiscal Year End As of 2016 2015 ----- ---- ---- Assets Current assets: Cash and cash equivalents $213.5 $116.0 Short term investments 62.1 - Accounts receivable, net 369.2 361.9 Other receivables 35.4 14.9 Inventories 224.3 261.1 Other current assets 53.4 44.5 Total current assets 957.9 798.4 Property and equipment, net 149.4 159.2 Goodwill 2,111.1 2,106.4 Other purchased intangible assets, net 371.1 487.1 Other non-current assets 141.9 129.6 ----- ----- Total assets $3,731.4 $3,680.7 ======== ======== Liabilities and Shareholders' Equity Current liabilities: Short-term debt $145.3 $118.3 Accounts payable 102.0 99.8 Accrued compensation and benefits 86.8 98.9 Deferred revenue 259.1 234.6 Accrued warranty expense 18.1 18.5 Other current liabilities 82.7 90.8 Total current liabilities 694.0 660.9 Long-term debt 524.5 611.4 Non-current deferred revenue 35.2 29.6 Deferred income tax liabilities 45.4 51.7 Other non-current liabilities 112.6 106.5 Total liabilities 1,411.7 1,460.1 ------- ------- Shareholders' equity: Common stock 1,316.0 1,238.3 Retained earnings 1,159.1 1,148.2 Accumulated other comprehensive loss (155.2) (166.8) Total Trimble Navigation Limited shareholders' equity 2,319.9 2,219.7 Noncontrolling interests (0.2) 0.9 ---- Total shareholders' equity 2,319.7 2,220.6 ------- ------- Total liabilities and shareholders' equity $3,731.4 $3,680.7 ======== ========

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) First Three Quarters of --------------------- 2016 2015 ---- ---- Cash flow from operating activities: Net Income $94.5 $96.8 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 27.9 27.0 Amortization expense 117.2 122.2 Provision for doubtful accounts 2.5 1.7 Deferred income taxes 1.2 (0.5) Stock-based compensation 40.0 37.3 Income from equity method investments (13.9) (14.1) Divestiture (gain) loss, net 0.1 (5.8) Excess tax benefit for stock- based compensation (5.0) (1.4) Provision for excess and obsolete inventories 12.0 5.1 Other non-cash items 3.9 9.0 Decrease (increase) in assets: Accounts receivables (9.9) 12.3 Other receivables (2.7) 6.5 Inventories 25.7 (6.4) Other current and non-current assets (11.1) (9.5) Increase (decrease) in liabilities: Accounts payable 2.7 (6.9) Accrued compensation and benefits (12.8) (15.4) Deferred revenue 32.8 38.6 Accrued warranty (0.5) (1.4) Other liabilities (22.6) (18.7) Net cash provided by operating activities 282.0 276.4 ----- ----- Cash flow from investing activities: Acquisitions of businesses, net of cash acquired (22.3) (101.7) Acquisitions of property and equipment (19.7) (35.7) Purchases of equity method investments (1.5) (3.6) Acquisitions of intangible assets (0.3) (0.1) Purchases of available-for- sale investments (62.1) - Net proceeds from sale of businesses 10.7 12.1 Dividends received from equity method investments 16.5 15.3 Other 0.1 0.3 Net cash used in investing activities (78.6) (113.4) ----- ------ Cash flow from financing activities: Issuance of common stock, net of tax withholdings 50.0 29.1 Repurchases and retirement of common stock (102.2) (234.4) Excess tax benefit for stock-based compensation 5.0 1.4 Proceeds from debt and revolving credit lines 291.0 458.0 Payments on debt and revolving credit lines (351.3) (431.1) Net cash used in financing activities (107.5) (177.0) ------ ------ Effect of exchange rate changes on cash and cash equivalents 1.6 (10.4) --- ----- Net increase (decrease) in cash and cash equivalents 97.5 (24.4) Cash and cash equivalents - beginning of period 116.0 148.0 ----- ----- Cash and cash equivalents - end of period $213.5 $123.6 ====== ======

    REPORTING SEGMENTS (Dollars in millions) (Unaudited) Reporting Segments ------------------ Engineering and Field Mobile Advanced Construction Solutions Solutions Devices ------------ --------- --------- ------- THIRD QUARTER OF FISCAL 2016 : Revenue $332.4 $77.9 $138.5 $35.3 Operating income before corporate allocations $69.1 $22.1 $22.4 $14.3 Operating margin (% of segment external net revenue) 20.8 % 28.4 % 16.2 % 40.5 % THIRD QUARTER OF FISCAL 2015 : Revenue $326.4 $73.5 $131.6 $30.8 Operating income before corporate allocations $68.8 $19.5 $23.1 $10.8 Operating margin (% of segment external net revenue) 21.1 % 26.5 % 17.6 % 35.1 % FIRST THREE QUARTERS OF 2016 : Revenue $993.4 $271.0 $412.9 $99.4 Operating income before corporate allocations $175.0 $81.5 $60.2 $36.1 Operating margin (% of segment external net revenue) 17.6 % 30.1 % 14.6 % 36.3 % FIRST THREE QUARTERS OF 2015 : Revenue $964.2 $275.9 $388.1 $102.5 Operating income before corporate allocations $166.3 $85.0 $62.5 $37.1 Operating margin (% of segment external net revenue) 17.2 % 30.8 % 16.1 % 36.2 %

    GAAP TO NON-GAAP RECONCILIATION (Dollars in millions, except per share data) (Unaudited) Third Quarter of First Three Quarters of ---------------- ----------------------- 2016 2015 2016 2015 ---- ---- Dollar % of Dollar % of Dollar % of Dollar % of Amount Revenue Amount Revenue Amount Revenue Amount Revenue ------ ------- ------ ------- ------ ------- ------ ------- GROSS MARGIN: GAAP gross margin: $309.0 52.9 % $298.0 53.0 % $925.2 52.1 % $909.1 52.5 % Restructuring charges ( A ) 0.5 0.1 % 0.3 0.1 % 1.2 0.1 % 0.8 -% Amortization of purchased intangible assets ( B ) 21.8 3.7 % 23.3 4.1 % 69.9 3.9 % 68.8 4.0 % Stock-based compensation ( C ) 0.9 0.2 % 1.0 0.2 % 2.8 0.1 % 2.9 0.2 % --- --- Non-GAAP gross margin: $332.2 56.9 % $322.6 57.4 % $999.1 56.2 % $981.6 56.7 % ------ ------ ------ ------ OPERATING EXPENSES: GAAP operating expenses: $253.7 43.4 % $252.0 44.8 % $799.5 45.0 % $787.6 45.5 % Restructuring charges ( A ) (3.5) (0.6)% (2.7) (0.5)% (9.8) (0.5)% (9.0) (0.5)% Amortization of purchased intangible assets ( B ) (15.5) (2.7)% (17.4) (3.1)% (47.3) (2.7)% (53.4) (3.1)% Stock-based compensation ( C ) (12.4) (2.1)% (11.8) (2.1)% (37.2) (2.1)% (34.4) (2.0)% Acquisition / divestiture items ( D ) (0.9) (0.1)% (2.4) (0.4)% (3.4) (0.2)% (8.0) (0.4)% Executive transition costs ( E ) - -% - -% (1.0) (0.1)% - -% Non-GAAP operating expenses: $221.4 37.9 % $217.7 38.7 % $700.8 39.4 % $682.8 39.5 % ------ ------ ------ ------ OPERATING INCOME: GAAP operating income: $55.3 9.5 % $46.0 8.2 % $125.7 7.1 % $121.5 7.0 % Restructuring charges ( A ) 4.0 0.7 % 3.0 0.5 % 11.0 0.6 % 9.8 0.6 % Amortization of purchased intangible assets ( B ) 37.3 6.4 % 40.7 7.2 % 117.2 6.6 % 122.2 7.1 % Stock-based compensation ( C ) 13.3 2.3 % 12.8 2.3 % 40.0 2.2 % 37.3 2.1 % Acquisition / divestiture items ( D ) 0.9 0.1 % 2.4 0.5 % 3.4 0.2 % 8.0 0.5 % Executive transition costs ( E ) - -% - -% 1.0 0.1 % - -% Non-GAAP operating income: $110.8 19.0 % $104.9 18.7 % $298.3 16.8 % $298.8 17.3 % ------ ------ ------ ------ NON-OPERATING INCOME (EXPENSE), NET: GAAP non- operating income (expense), net: $(3.1) $(2.5) $(5.8) $2.0 Acquisition / divestiture items ( D ) 2.8 (0.2) 0.1 (5.8) --- --- Non-GAAP non- operating income (expense), net: $(0.3) $(2.7) $(5.7) $(3.8) GAAP and GAAP and GAAP and GAAP and Non-GAAP Non-GAAP Non-GAAP Non-GAAP Tax Rate % ( H ) Tax Rate % ( H ) Tax Rate % ( H ) Tax Rate % ( H ) --------- --------- --------- --------- INCOME TAX PROVISION: GAAP income tax provision: $13.0 25 % $6.5 15 % $25.4 21 % $26.7 22 % Non-GAAP items tax effected ( F ) 14.6 8.8 36.3 37.8 Difference in GAAP and Non-GAAP tax rate ( G ) (1.1) 9.2 8.5 6.3 Non-GAAP income tax provision: $26.5 24 % $24.5 24 % $70.2 24 % $70.8 24 % ----- ----- ----- ----- NET INCOME: GAAP net income attributable to Trimble Navigation Limited $39.2 $37.1 $94.7 $97.1 Restructuring charges ( A ) 4.0 3.0 11.0 9.8 Amortization of purchased intangible assets ( B ) 37.3 40.7 117.2 122.2 Stock-based compensation ( C ) 13.3 12.8 40.0 37.3 Acquisition / divestiture items ( D ) 3.7 2.2 3.5 2.2 Executive transition costs ( E ) - - 1.0 - Non-GAAP tax adjustments ( F ) (13.5) (18.0) (44.8) (44.1) Non-GAAP net income attributable to Trimble Navigation Limited $84.0 $77.8 $222.6 $224.5 DILUTED NET INCOME PER SHARE: GAAP diluted net income per share attributable to Trimble Navigation Limited $0.15 $0.14 $0.37 $0.37 Restructuring charges ( A ) 0.02 0.01 0.05 0.04 Amortization of purchased intangible assets ( B ) 0.15 0.16 0.46 0.47 Stock-based compensation ( C ) 0.05 0.05 0.16 0.14 Acquisition / divestiture items ( D ) 0.01 0.01 0.02 0.01 Executive transition costs ( E ) - - - - Non-GAAP tax adjustments ( F ) (0.05) (0.07) (0.18) (0.17) Non-GAAP diluted net income per share attributable to Trimble Navigation Limited $0.33 $0.30 $0.88 $0.86

    FOOTNOTES TO GAAP TO NON-GAAP RECONCILIATION

    (Unaudited)

    Our non-GAAP measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures. The non-GAAP financial measures included in the previous table as well as detailed explanations to the adjustments to comparable GAAP measures, are set forth below:

    Non-GAAP gross margin

    We believe our investors benefit by understanding our non-GAAP gross margin as a way of understanding how product mix, pricing decisions and manufacturing costs influence our business. Non-GAAP gross margin excludes restructuring costs, amortization of purchased intangible assets and stock-based compensation from GAAP gross margin. We believe that these exclusions offer investors additional information that may be useful to view trends in our gross margin performance.

    Non-GAAP operating expenses

    We believe this measure is important to investors evaluating our non-GAAP spending in relation to revenue. Non-GAAP operating expenses exclude restructuring costs, amortization of purchased intangible assets, stock-based compensation, acquisition/divestiture costs associated with external and incremental costs resulting directly from merger and acquisition activities such as legal, due diligence, and integration costs, and executive transition costs from GAAP operating expenses. We believe that these exclusions offer investors supplemental information to facilitate comparison of our operating expenses to our prior results.

    Non-GAAP operating income

    We believe our investors benefit by understanding our non-GAAP operating income trends which are driven by revenue, gross margin, and spending. Non-GAAP operating income excludes restructuring costs, amortization of purchased intangible assets, stock-based compensation, acquisition/divestiture costs associated with external and incremental costs resulting directly from merger and acquisition activities such as legal, due diligence, and integration costs, and executive transition costs. We believe that these exclusions offer an alternative means for our investors to evaluate current operating performance compared to results of other periods.

    Non-GAAP non-operating income (expense), net

    We believe this measure helps investors evaluate our non-operating income trends. Non-GAAP non-operating income (expense), net excludes acquisition and divestiture gains/losses associated with unusual acquisition related items such as intangible asset impairment charges and gains or losses related to the acquisition or sale of certain businesses and investments. Non-GAAP non-operating income (expense), net also excludes the write-off of debt issuance costs associated with terminated and/or modified credit facilities and costs associated with the issuance of new credit facilities and Senior Notes that were not capitalized as debt issuance costs. We believe that these exclusions provide investors with a supplemental view of our ongoing financial results.

    Non-GAAP income tax provision

    We believe that providing investors with the non-GAAP income tax provision is beneficial because it provides for consistent treatment of the excluded items in our non-GAAP presentation.

    Non-GAAP net income

    This measure provides a supplemental view of net income trends which are driven by non-GAAP income before taxes and our non-GAAP tax rate. Non-GAAP net income excludes restructuring costs, amortization of purchased intangible assets, stock-based compensation, acquisition and divestiture costs, executive transition costs, write-off of debt issuance costs and non-GAAP tax adjustments from GAAP net income. We believe our investors benefit from understanding these exclusions and from an alternative view of our net income performance as compared to our past net income performance.

    Non-GAAP diluted net income per share

    We believe our investors benefit by understanding our non-GAAP operating performance as reflected in a per share calculation as a way of measuring non-GAAP operating performance by ownership in the company. Non-GAAP diluted net income per share excludes restructuring costs, amortization of purchased intangible assets, stock-based compensation, acquisition and divestiture costs, executive transition costs, a write off of debt issuance costs and non-GAAP tax adjustments from GAAP diluted net income per share. We believe that these exclusions offer investors a useful view of our diluted net income per share as compared to our past diluted net income per share.

    These non-GAAP measures can be used to evaluate our historical and prospective financial performance, as well as our performance relative to competitors. We believe some of our investors track our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Core operating performance excludes items that are non-cash, not expected to recur or not reflective of ongoing financial results. Management also believes that looking at our core operating performance provides a supplemental way to provide consistency in period to period comparisons. Accordingly, management excludes from non-GAAP those items relating to restructuring, amortization of purchased intangible assets, stock based compensation, acquisition and divestiture costs, executive transition costs, write-off of debt issuance costs and non-GAAP tax adjustments. For detailed explanations of the adjustments made to comparable GAAP measures, see items (A) - (H) below.

    ( A ) Restructuring costs. Included in our GAAP presentation of cost of sales and operating expenses, restructuring costs recorded are primarily for employee compensation resulting from reductions in employee headcount in connection with our company restructurings. We exclude restructuring costs from our non- GAAP measures because we believe they do not reflect expected future operating expenses, they are not indicative of our core operating performance, and they are not meaningful in comparisons to our past operating performance. We have incurred restructuring expense in each of the periods presented. However the amount incurred can vary significantly based on whether a restructuring has occurred in the period and the timing of headcount reductions. ( B ) Amortization of purchased intangible assets.Included in our GAAP presentation of gross margin and operating expenses is amortization of purchased intangible assets. US GAAP accounting requires that intangible assets are recorded at fair value and amortized over their useful lives. Consequently, the timing and size of our acquisitions will cause our operating results to vary from period to period, making a comparison to past performance difficult for investors. This accounting treatment may cause differences when comparing our results to companies that grow internally because the fair value assigned to the intangible assets acquired through acquisition may significantly exceed the equivalent expenses that a company may incur for similar efforts when performed internally. Furthermore, the useful life that we expense our intangible assets over may be substantially different from the time period that an internal growth company incurs and recognizes such expenses. We believe that by excluding the amortization of purchased intangible assets, which primarily represents technology and/or customer relationships already developed, it provides an alternative way for investors to compare our operations pre-acquisition to those post-acquisitions and to those of our competitors that have pursued internal growth strategies. However, we note that companies that grow internally will incur costs to develop intangible assets that will be expensed in the period incurred, which may make a direct comparison more difficult. ( C ) Stock-based compensation.Included in our GAAP presentation of cost of sales and operating expenses, stock-based compensation consists of expenses for employee stock options and awards and purchase rights under our employee stock purchase plan. We exclude stock-based compensation expense from our non-GAAP measures because some investors may view it as not reflective of our core operating performance as it is a non-cash expense. For the third quarter and the first three quarters of fiscal years 2016 and 2015, stock-based compensation was allocated as follows: Third Quarter of First Three Quarters of ---------------- --------------------- (Dollars in millions) 2016 2015 2016 2015 ---- ---- ---- ---- Cost of sales $0.9 $1.0 $2.8 $2.9 Research and development $2.2 2.1 $6.9 6.4 Sales and Marketing $2.1 2.2 $6.3 6.7 General and administrative $8.1 7.5 $24.0 21.3 ---- ----- $13.3 $12.8 $40.0 $37.3 ----- ----- ----- ----- ( D ) Acquisition / divestiture items. Included in our GAAP presentation of operating expenses, acquisition costs consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal, due diligence, and integration costs, as well as adjustments to the fair value of earn-out liabilities. Included in our GAAP presentation of non-operating income (expense), net, acquisition / divestiture items includes unusual acquisition, investment, or divestiture gains/losses. Although we do numerous acquisitions, the costs that have been excluded from the non-GAAP measures are costs specific to particular acquisitions. These are one-time costs that vary significantly in amount and timing and are not indicative of our core operating performance. ( E ) Executive transition costs. Included in our GAAP presentation of operating expenses are amounts paid to the Company's former CFO upon his departure under the terms of his executive severance agreement. We excluded these payments from our non- GAAP measures because they represent non-recurring expenses and are not indicative of our ongoing operating expenses. We further believe that excluding the executive transition costs from our non-GAAP results is useful to investors in that it allows for period-over-period comparability. ( F ) Non-GAAP items tax effected. This amount adjusts the provision for income taxes to reflect the effect of the non- GAAP items ( A ) - ( F ) on non-GAAP net income. We believe this information is useful to investors because it provides for consistent treatment of the excluded items in this non-GAAP presentation. ( G ) Difference in GAAP and Non-GAAP tax rate. This amount represents the difference between the GAAP and Non-GAAP tax rates applied to the Non-GAAP operating income plus the Non- GAAP non-operating income (expense), net. ( H ) GAAP and non-GAAP tax rate %. These percentages are defined as GAAP income tax provision as a percentage of GAAP income before taxes and non-GAAP income tax provision as a percentage of non-GAAP income before taxes. We believe that investors benefit from a presentation of non-GAAP tax rate percentage as a way of facilitating a comparison to non-GAAP tax rates in prior periods.

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/trimble-reports-third-quarter-2016-results-300355330.html

    Trimble

    CONTACT: James Todd, james_todd@trimble.com

    Web site: http://www.trimble.com/




    Palo Alto Networks to Announce Fiscal First Quarter 2017 Financial Results on Monday, November 21, 2016

    SANTA CLARA, Calif., Nov. 1, 2016 /PRNewswire/ -- Palo Alto Networks(R) , the next-generation security company, today announced that it will release its financial results for its fiscal first quarter 2017 ended October 31, 2016 after U.S. markets close on Monday, November 21, 2016. Palo Alto Networks will host a conference call that day at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the results.

    Interested parties may access the conference call by dialing either 1-877-856-1958 or 1-719-325-4825 and using conference ID 3370101.

    A live audio webcast of the conference call will be accessible from the "Investors" section of the Palo Alto Networks website at investors.paloaltonetworks.com. The webcast will be archived for a period of one year. A telephonic replay of the conference call will be available three hours after the call, will run for ten days, and may be accessed by dialing either 1-888-203-1112 or 1-719-457-0820 and entering the passcode 3370101. The press release will be accessible from the Palo Alto Networks website prior to the commencement of the conference call.

    https://photos.prnewswire.com/prnvar/20160712/388902LOGO

    ABOUT PALO ALTO NETWORKS

    Palo Alto Networks is the next-generation security company, leading a new era in cybersecurity by safely enabling applications and preventing cyber breaches for tens of thousands of organizations worldwide. Built with an innovative approach and highly differentiated cyberthreat prevention capabilities, our game-changing security platform delivers security far superior to legacy or point products, safely enables daily business operations, and protects an organization's most valuable assets. Find out more at www.paloaltonetworks.com.

    Palo Alto Networks and the Palo Alto Networks logo are trademarks of Palo Alto Networks, Inc. in the United States and in jurisdictions throughout the world. All other trademarks, trade names or service marks used or mentioned herein belong to their respective owners.

    Logo - http://photos.prnewswire.com/prnh/20160712/388902LOGO

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/palo-alto-networks-to-announce-fiscal-first-quarter-2017-financial-results-on-monday-november-21-2016-300355214.html

    Photo: https://photos.prnewswire.com/prnh/20160712/388902LOGO
    AP PhotoExpress Network: PRN733047 Palo Alto Networks

    CONTACT: Media, Jennifer Jasper Smith, Head of Corporate Communications,
    Palo Alto Networks, 408-638-3280, jjsmith@paloaltonetworks.com; Investor
    Relations, Kelsey Turcotte, Vice President of Investor Relations, Palo Alto
    Networks, 408-753-3872, kturcotte@paloaltonetworks.com

    Web site: http://www.paloaltonetworks.com/




    YOU On Demand to Report Q3 2016 Results and Host Investor Update Call Monday, November 14

    NEW YORK, Nov. 1, 2016 /PRNewswire/ -- YOU On Demand Holdings, Inc. ("YOU On Demand" or "YOD"), a premium content Video On Demand service provider in China evolving into a global, mobile-driven, consumer management platform for both enterprises and consumers, today announced that it will report its financial results for the third quarter ended September 30, 2016, before the U.S. market opens on Monday, November 14, 2016. YOU On Demand's management, including Chairman Bruno Wu, will host an earnings conference call at 8:00 a.m. on Monday November 14, 2016, U.S. Eastern Standard Time (9:00 p.m. on Monday, Beijing/Hong Kong Time).

    Webcast Link: via 'Webcasts and Events' section of YOD corporate website or http://yod.equisolvewebcast.com/q3-2016

    Dial-in Number: (Toll-Free US & Canada): 877-407-3107; (International): 201-493-6796

    Following the webcast/call, an archived copy will be available in the 'Webcasts and Events' section of YOD's website.

    About YOU On Demand Holdings, Inc. (http://corporate.yod.com)

    YOU On Demand is leveraging and optimizing its current operations as a premium content Video On Demand service provider in China to evolve into a global, B2B2C, mobile-driven, consumer management platform for both enterprises and consumers. By aiming to establish the world's premier multimedia, social networking and e-commerce-enabled network with the largest global effective connected user base, YOU On Demand, through this expanded, cloud-based, ecosystem of connected screens combined with strong partnerships with leading global providers, will be capable of delivering a vast array of YOD-branded products and services to enterprise customers and end-use consumers - anytime and anywhere, across multiple platforms and devices.

    YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal and Twentieth Century Fox Television Distribution, Miramax, as well as a broad selection of the best content from Chinese filmmakers. In addition, the Company has governmental partnerships and licenses as well as numerous JV partnerships and strategic cooperation agreements with an array of distribution and content partners in the global new media space. YOU On Demand is headquartered in both New York, NY and Beijing, China.

    CONTACT:
    Jason Finkelstein
    YOU On Demand
    212-206-1216
    jason.finkelstein@yod.com
    @youondemand

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/you-on-demand-to-report-q3-2016-results-and-host-investor-update-call-monday-november-14-300355281.html

    YOU On Demand

    Web site: http://www.yod.com/




    iSIGN Media and We Build Apps Announce the Signing of the Definitive Agreement Granting Exclusive Territory Rights and Channels

    TORONTO, Nov. 1, 2016 /PRNewswire/ - iSIGN Media Solutions Inc. ("iSIGN" or "Company") , a leading provider of interactive mobile proximity marketing and public security alert solutions that serves brands, commercial locations, retailers and service providers throughout North America is pleased to announce that the final and definitive agreement outlining the working arrangement with its reseller, We Build Apps, LLC ("WBA") has been signed.

    The agreement stipulates that WBA will be iSIGN's exclusive reseller for the State of Ohio, as well as for the military bases within the United States in exchange for the fulfillment of WBA's purchase obligation for 500 Smart Antennas.

    This agreement is for a term of three years and is renewable for additional one year periods. It sets out the responsibilities and obligations of the companies to each other as well as WBA to its end-clients.

    About iSIGN Media
    iSIGN Media, based in Toronto, is a data-focused, software-as-a-service (SaaS) company that is a pioneering leader in gathering point-of-sale data and mobile shopper preferences to generate actionable data and reveal valuable consumer insights. Creators of the Smart suite of products, a patented interactive proximity marketing technology, iSIGN enables brands to deliver targeted messaging, personalized offers and loyalty perks to consumers' mobile devices in proximity and with real-time proof of redemption. iSIGN's data gathering capabilities provide analytics on price points, typical purchases, in-store dwell time and other shopper metrics that identify emerging consumer behaviors. These insights enable smarter business decisions and provide increased ROI metrics for more transparent marketing. iSIGN delivers relevant, timely messages on an opt-in basis at no charge to consumers, transmitting rich media to consumer mobile devices via Bluetooth(R) and WiFi connectivity in complete privacy as opposed to iBeacons, apps, downloads and required surrendering of personal information. Proven to increase brand engagement and customer loyalty, iSIGN generates preference-based, predictive "clean data" without compromising consumer privacy. Partners include: IBM, Keyser Retail Solutions, Baylor University, Verizon Wireless, TELUS and AOpen America Inc. www.isignmedia.com

    About We Build Apps
    We Build Apps is the pioneer of Multiscreen as a Service(TM) (MaaS), the only fully integrated cloud-based services platform that enables brands to engage, manage and monetize their anytime/anywhere users. From security, sports and entertainment to healthcare and retail, WBA has introduced category-defining experiences that challenge the outer limits of the most advanced connected devices for the world's most respected brands and developed next-generation technologies that transform how the world uses these connected devices. WBA's goal is to provide Everything You Need to Succeed on Mobile, regardless of where you are in the mobile application life cycle. WBA's full-stack platform, pre-packaged vertical solutions and custom services empower companies to plan, build, grow and service their mobile experiences. www.webuildappsllc.com

    Forward-Looking Statements
    This news release may include certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with iSIGN Media's business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect iSIGN Media's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. iSIGN Media assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

    (C) 2016 iSIGN Media Solutions Inc. All Rights Reserved. All other trademarks and trade names are the property of their respective owners.

    Neither the TSX Venture Exchange nor Its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility or accuracy of this release.

    iSIGN Media Solutions Inc, Alex Romanov Chief Executive Officer

    CONTACT: Company contacts: Alex Romanov, iSIGN Media Solutions Inc.,
    alex@isignmedia.com; Rodney Colley, We Build Apps, LLC,
    rcolley@webuildappsllc.com




    FARO Reports Third Quarter 2016 Financial Results

    LAKE MARY, Fla., Nov. 1, 2016 /PRNewswire/ -- FARO((R)) , the world's most trusted source for 3D measurement and imaging solutions and services for factory metrology, product design, construction BIM/CIM, and public safety forensics applications, today announced its financial results for the third quarter and nine months ended September 30, 2016.

    http://photos.prnewswire.com/prnvar/20110415/MM84316LOGO

    "FARO continued to execute on its renewal and reorganization initiatives," stated Dr. Simon Raab, President and Chief Executive Officer. "Our new product drumbeat included the launch of the next-generation FARO Focus(S) 150/350 Laser Scanners. Strategically, we completed two important acquisitions: Laser Projection Technologies, Inc. and BuildIT Software & Solutions Ltd. These acquisitions broadened our product lines and added new technologies and capabilities that will enhance our competitive position in certain key vertical markets. Our third quarter financial performance was highlighted by a 9.8% increase in sales. We have made excellent progress on all our renewal initiatives. While year-to-date net income increased by 92.5%, it may continue to be negatively impacted by our reorganization initiatives which we expect to complete by mid-2017."

    Nine months ended September 30, 2016

    Sales at $233.9 million for the nine months ended September 30, 2016, grew 3.4% compared with $226.2 million in the comparable period last year on increased metrology products and global services revenue. New order bookings at $234.9 million, increased by 4.3% compared with $225.2 million in the same prior year period.

    Gross margin was 55.3%, increased by 2.7 percentage points over the comparable prior year period due to higher average selling prices, strong service revenue growth, and the effect of a $7.9 million write-down of inventory in the third quarter of 2015.

    Operating income was $9.7 million, up 52.1% compared with $6.4 million in the same prior year period, reflecting higher sales and gross margin offset partly by an increase in operating expenses arising largely from increased staffing, compensation and acquisition expenses. Operating margin was 4.1% for the first nine months of 2016, compared with 2.8% in the comparable period last year.

    Net income was $7.6 million or $0.45 per diluted share, compared with $3.9 million or $0.22 per diluted share for the first nine months of 2015.

    Cash flow from operations for the first nine months of 2016 was $28.5 million, up $20.6 million compared with $7.9 million in the prior year period reflecting improved inventory and accounts payable management. As of September 30, 2016 cash and short-term investments totaled $153.3 million of which $92.5 million was held by foreign subsidiaries.

    Third quarter 2016

    Sales for the quarter ended September 30, 2016 were $79.6 million, up 9.8% compared with $72.5 million in the third quarter last year reflecting a significant increase in product sales within the Asia region, a modest product sales growth in the Americas region, and a strong global growth in service revenue. New order bookings were $79.8 million for the third quarter of 2016, up 10.5% compared with $72.3 million for the third quarter of 2015.

    Gross margin for the quarter was 53.6%, up 5.5 percentage points compared with 48.1% in the prior year period primarily due to a $7.9 million write-down of inventory recorded in the third quarter of 2015, partially offset by lower average selling prices arising from our initiative to reduce aged service and sales demonstration inventory.

    Operating income for the quarter was $0.8 million compared with a loss of $0.9 million in the prior year period reflecting higher sales and gross margin offset partly by an increase in operating expenses. Operating margin was 1.1% in the third quarter of 2016, compared with (1.3)% in the prior year period.

    Net income for the quarter was $1.1 million or $0.07 per diluted share, compared with a loss of $0.9 million or $0.05 per diluted share in the prior year period.

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties, such as statements about FARO's long-term growth, demand for and customer acceptance of FARO's products, anticipated improvement in the markets in which FARO operates, and FARO's product development and product launches. Statements that are not historical facts or that describe the Company's plans, objectives, projections, expectations, assumptions, strategies, or goals are forward-looking statements. In addition, words such as "is," "are," "expects," "continues," "may," "will," and similar expressions or discussions of FARO's plans or other intentions identify forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to various known and unknown risks, uncertainties, and other factors that may cause actual results, performances, or achievements to differ materially from future results, performances, or achievements expressed or implied by such forward-looking statements. Consequently, undue reliance should not be placed on these forward-looking statements.

    Factors that could cause actual results to differ materially from what is expressed or forecasted in such forward-looking statements include, but are not limited to:

    --  the Company's inability to successfully identify and acquire target
    companies or achieve expected benefits from acquisitions that are
    consummated;
    --  development by others of new or improved products, processes or
    technologies that make the Company's products less competitive or
    obsolete;
    --  the Company's inability to maintain its technological advantage by
    developing new products and enhancing its existing products;
    --  declines or other adverse changes, or lack of improvement, in industries
    that the Company serves or the domestic and international economies in
    the regions of the world where the Company operates and other general
    economic, business, and financial conditions;
    --  the impact of fluctuations of foreign exchange rates; and
    --  Other risks detailed in Part I, Item 1A. Risk Factors in the Company's
    Annual Report on Form 10-K for the year ended December 31, 2015.
    

    Forward-looking statements in this release represent the Company's judgment as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law.

    About FARO

    FARO is the world's most trusted source for 3D measurement technology. The Company develops and markets computer-aided measurement and imaging devices and software. Technology from FARO permits high-precision 3D measurement, imaging and comparison of parts and complex structures within production and quality assurance processes. The devices are used for inspecting components and assemblies, rapid prototyping, documenting large volume spaces or structures in 3D, surveying and construction, as well as for investigation and reconstruction of accident sites or crime scenes.

    FARO's global headquarters are located in Lake Mary, Florida. The Company also has a technology center and manufacturing facility consisting of approximately 90,400 square feet located in Exton, Pennsylvania containing research and development, manufacturing and service operations of our FARO Laser Tracker(TM) and FARO Cobalt Array Imager product lines. The Company's European regional headquarters is located in Stuttgart, Germany and its Asia Pacific regional headquarters is located in Singapore. FARO has other offices in the United States, Canada, Mexico, Brazil, Germany, the United Kingdom, France, Spain, Italy, Poland, Turkey, the Netherlands, Switzerland, India, China, Malaysia, Vietnam, Thailand, South Korea, Japan, and Australia.

    More information is available at http://www.faro.com


    FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Nine Months Ended ------------------ ----------------- (in thousands, except share September 30, September 26, September 30, September 26, and per share data) 2016 2015 2016 2015 -------------- -------------- -------------- -------------- SALES Product $61,280 $57,803 $182,232 $182,284 Service 18,320 14,704 51,654 43,937 ------ ------ ------ ------ Total sales 79,600 72,507 233,886 226,221 ------ ------ ------- ------- COST OF SALES Product 25,870 28,943 74,933 80,652 Service 11,051 8,693 29,665 26,541 ------ ----- ------ ------ Total cost of sales (exclusive of depreciation and amortization, shown separately below) 36,921 37,636 104,598 107,193 ------ ------ ------- ------- GROSS PROFIT 42,679 34,871 129,288 119,028 OPERATING EXPENSES: Selling and marketing 19,729 18,944 56,101 58,112 General and administrative 10,775 8,239 31,483 27,106 Depreciation and amortization 3,381 2,790 9,733 8,022 Research and development 7,953 5,820 22,303 19,430 ----- ----- ------ ------ Total operating expenses 41,838 35,793 119,620 112,670 ------ ------ ------- ------- INCOME (LOSS) FROM OPERATIONS 841 (922) 9,668 6,358 --- ---- ----- ----- OTHER (INCOME) EXPENSE Interest (income) expense, net (21) 7 (119) (36) Other (income) expense, net (167) 131 824 1,521 ---- --- --- ----- INCOME (LOSS) BEFORE INCOME TAX (BENEFIT) EXPENSE 1,029 (1,060) 8,963 4,873 INCOME TAX (BENEFIT) EXPENSE (61) (176) 1,401 945 --- ---- ----- --- NET INCOME (LOSS) $1,090 $(884) $7,562 $3,928 ====== ===== ====== ====== NET INCOME (LOSS) PER SHARE -BASIC $0.07 $(0.05) $0.45 $0.23 ===== ====== ===== ===== NET INCOME (LOSS) PER SHARE -DILUTED $0.07 $(0.05) $0.45 $0.22 ===== ====== ===== ===== Weighted average shares - Basic 16,674,176 17,395,824 16,647,662 17,372,562 ========== ========== ========== ========== Weighted average shares - Diluted 16,701,617 17,395,824 16,669,550 17,496,190 ========== ========== ========== ==========


    FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) September 30, 2016 December 31, 2015 -------------- ----------------- ASSETS Current assets: Cash and cash equivalents $121,349 $107,356 Short-term investments 31,957 42,994 Accounts receivable, net 57,431 69,918 Inventories, net 55,206 45,571 Deferred income tax assets, net 8,619 7,792 Prepaid expenses and other current assets 20,426 18,527 ------ ------ Total current assets 294,988 292,158 ------- ------- Property and equipment: Machinery and equipment 57,197 54,124 Furniture and fixtures 6,291 5,945 Leasehold improvements 18,942 18,471 ------ ------ Property and equipment, at cost 82,430 78,540 Less: accumulated depreciation and amortization (49,671) (42,594) ------- ------- Property and equipment, net 32,759 35,946 ------ ------ Goodwill 41,721 26,371 Intangible assets, net 21,967 15,985 Service and sales demonstration inventory, net 33,661 33,709 Deferred income tax assets, net 4,535 4,050 Other long term assets 971 967 --- --- Total assets $430,602 $409,186 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $11,507 $11,345 Accrued liabilities 24,325 22,574 Current portion of unearned service revenues 27,212 26,114 Customer deposits 2,763 2,998 ----- ----- Total current liabilities 65,807 63,031 Unearned service revenues -less current portion 15,600 15,025 Deferred income tax liabilities 1,163 686 Other long-term liabilities 2,430 2,800 ----- ----- Total liabilities 85,000 81,542 ------ ------ Shareholders' equity: Common stock -par value $.001, 50,000,000 shares authorized; 18,163,850 and 18,077,594 issued; 16,674,374 and 16,588,118 outstanding, respectively 18 18 Additional paid-in capital 211,227 206,996 Retained earnings 179,891 172,329 Accumulated other comprehensive loss (13,696) (19,861) Common stock in treasury, at cost -1,489,476 shares (31,838) (31,838) ------- ------- Total shareholders' equity 345,602 327,644 ------- ------- Total liabilities and shareholders' equity $430,602 $409,186 ======== ========


    FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Nine Months Ended ----------------- (in thousands) September 30, September 26, 2016 2015 -------------- -------------- CASH FLOWS FROM: OPERATING ACTIVITIES: Net income $7,562 $3,928 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 9,733 8,022 Compensation for stock options and restricted stock units 4,068 3,791 Provision for bad debts 727 462 Loss on disposal of assets 814 877 Write-down of inventories 2,937 9,560 Deferred income tax (benefit) expense (734) 556 Income tax benefit from exercise of stock options (354) (292) Change in operating assets and liabilities: Decrease (increase) in: Accounts receivable 12,850 17,205 Inventories (8,689) (21,693) Prepaid expenses and other current assets (995) (5,740) (Decrease) increase in: Accounts payable and accrued liabilities 1,128 (8,779) Customer deposits (1,155) (473) Unearned service revenues 559 467 --- --- Net cash provided by operating activities 28,451 7,891 ------ ----- INVESTING ACTIVITIES: Proceeds from sale of investments 11,000 - Purchases of property and equipment (5,272) (8,462) Payments for intangible assets (1,440) (1,751) Acquisition of business, net of cash received (20,911) (12,066) ------- ------- Net cash used in investing activities (16,623) (22,279) ------- ------- FINANCING ACTIVITIES: Payments on capital leases (6) (6) Payment of contingent consideration for acquisitions (434) - Income tax benefit from exercise of stock options 354 292 Proceeds from issuance of stock, net 519 2,286 --- ----- Net cash provided by financing activities 433 2,572 --- ----- EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 1,732 (1,498) ----- ------ INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 13,993 (13,314) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 107,356 109,289 ------- ------- CASH AND CASH EQUIVALENTS, END OF PERIOD $121,349 $95,975 ======== =======

    FARO TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended Nine Months Ended ------------------ ----------------- (in thousands) September 30, September 26, September 30, September 26, 2016 2015 2016 2015 -------------- -------------- -------------- -------------- Net income (loss) $1,090 $(884) $7,562 $3,928 Currency translation adjustments, net of income tax 1,339 (3,475) 6,165 (8,062) ----- ------ ----- ------ Comprehensive income (loss) $2,429 $(4,359) $13,727 $(4,134) ====== ======= ======= =======

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    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/faro-reports-third-quarter-2016-financial-results-300355340.html

    Photo: http://photos.prnewswire.com/prnh/20110415/MM84316LOGO FARO Technologies, Inc.

    CONTACT: Nancy Setteducati, 1-407-333-9911 ext. 1082,
    nancy.setteducati@faro.com

    Web site: http://www.faro.com/




    Flex Appoints Dr. Kal Patel as Senior Vice President of Digital Health

    SAN JOSE, Calif., Nov. 1, 2016 /PRNewswire/ -- Flex , the Sketch-to-Scale(TM) solutions provider that designs and builds intelligent products for a connected world, today announced the appointment of Dr. Kal Patel to the new role of Senior Vice President of Digital Health.

    Dr. Patel joined Flex from Doctor on Demand, a leading video telemedicine provider, where he served as Chief Commercial Officer, responsible for all business and commercial functions, including marketing, business development, partnerships, implementations, operations and account management.

    Prior to Doctor on Demand, Dr. Patel founded and headed Amgen Digital Health, with responsibility for setting and executing a strategy focused on incubating and commercializing a portfolio of digital health products and programs that supported Amgen's drugs. Previously, he was Global Marketing Lead for Enbrel and Head of Corporate Strategy at Amgen. Prior to joining Amgen, Dr. Patel held leadership positions at Novartis Pharmaceuticals, and as a Principal at The Boston Consulting Group, where he provided consulting services to North American and European healthcare clients.

    Dr. Patel has a bachelor's degree in Economics from the University of Chicago, an MBA from its Booth Graduate School of Business, and an M.D. from its Pritzker School of Medicine.

    Paul Humphries, president of High Reliability Solutions (HRS) at Flex, said, "We are seeing increasing global demand for improved access, quality and affordability of health services and medical care. Flex is extremely well positioned to address this need. By leveraging our vast capabilities in consumer products, medical devices, connectivity and cloud services, we can provide customers unique and differentiating integrated solutions that meet the growing global demand."

    Humphries continued, "Dr. Patel has played a pivotal role as a pioneer in the digital health industry, and he is joining Flex at an opportune time, as we accelerate our own development of Sketch-to-Scale connected health and wellness solutions."

    About Flex
    Flex Ltd. is the Sketch-to-Scale(TM) solutions provider that designs and builds intelligent products for a connected world. With approximately 200,000 professionals across 30 countries, Flex provides innovative design, engineering, manufacturing, real-time supply chain insight and logistics services to companies of all sizes in various industries and end-markets. For more information, visit www.flextronics.com or follow us on Twitter @Flextronics. Flex - Live Smarter(TM)

    Renee Brotherton | Paul Brunato Kevin Kessel Corporate Communications Investor Relations (408) 576-7189 | (408) 576-7534 (408) 576-7985 renee.brotherton@flextronics.com kevin.kessel@flextronics.com paul.brunato@flextronics.com

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    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/flex-appoints-dr-kal-patel-as-senior-vice-president-of-digital-health-300355324.html

    Photo: http://photos.prnewswire.com/prnh/20150504/213717LOGO Flex

    Web site: http://www.flextronics.com/




    Weatherford Confirms it Remains within Debt Covenants

    BAAR, Switzerland, Nov. 1, 2016 /PRNewswire/ -- As of September 30, 2016 Weatherford International plc revolving and term loan credit facility covenant calculations are as follows:

    --  Specified Senior Leverage Ratio of 1.94x (versus a maximum ratio of
    3.0x)
    --  Specified Senior Leverage and Letters of Credit Ratio 3.67x (versus a
    maximum ratio of 4.0x)
    --  Specified Asset Coverage Ratio of 12.7x (versus a minimum ratio of 4.0x)
    

    Based on our current fourth quarter 2016 forecast, we expect to meet all covenants at the end of the year. The relative tightness that we are currently experiencing on the Specified Senior Leverage and Letters of Credit Ratio is expected to be alleviated by improving EBITDA and a declining balance of Letters of Credit. Additionally, given our growing order book, increasing tender flow and the recovering levels of customer activity, we expect to continue to meet all applicable revolving and term loan revolving and credit facility covenants through the remainder of 2017.

    About Weatherford
    Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 100 countries and has a network of approximately 1,000 locations, including manufacturing, service, research and development, and training facilities and employs approximately 31,000 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Twitter, YouTube and Facebook.

    Forward-Looking Statements

    This news release contains forward-looking statements. These forward-looking statements include, among other things, the Company's forecasts and expectations regarding business outlook and performance and are also generally identified by the words "believe," "project," "expect," "anticipate," "estimate," "outlook," "budget," "intend," "strategy," "plan," "guidance," "may," "should," "could," "will," "would," "will be," "will continue," "will likely result," and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford's management, and are subject to significant risks, assumptions and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are also cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results. Forward-looking statements are also affected by the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, the Company's Quarterly Reports on Form 10-Q, and those set forth from time-to-time in the Company's other filings with the Securities and Exchange Commission ("SEC"). We undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.

    Weatherford Contacts
    Krishna Shivram
    Executive Vice President and Chief Financial Officer
    +1.713.836.4610

    Karen David-Green
    Vice President - Investor Relations, Corporate Marketing and Communications
    +1.713.836.7430

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    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weatherford-confirms-it-remains-within-debt-covenants-300355097.html

    Photo: http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO Weatherford International plc

    Web site: http://www.weatherford.com/




    Regal Beloit Corporation To Present At Baird's 2016 Global Industrial Conference

    BELOIT, Wis., Nov. 1, 2016 /PRNewswire/ -- Regal Beloit Corporation will be presenting at Baird's 2016 Global Industrial Conference on November 8, 2016 at 4:30 pm CST.

    The audio of the presentation will be webcast and can be accessed at: http://wsw.com/webcast/baird47/rbc

    An archive of the audio webcast will be available for 90 days following the presentation at the link referenced above or on the Company's investor relations home page at: http://www.regalbeloit.com/rbceventspresentations.htm

    Regal Beloit Corporation is a leading manufacturer of electric motors, electrical motion controls, power generation and power transmission products serving markets throughout the world. The company is comprised of three business segments: Commercial and Industrial Systems, Climate Solutions and Power Transmission Solutions. Regal is headquartered in Beloit, Wisconsin, and has manufacturing, sales and service facilities throughout the United States, Canada, Latin America, Europe and Asia. For more information, visit RegalBeloit.com

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/regal-beloit-corporation-to-present-at-bairds-2016-global-industrial-conference-300355044.html

    Regal Beloit Corporation

    CONTACT: Robert Cherry, VP - Investor Relations, 608-361-7530,
    Robert.Cherry@regalbeloit.com

    Web site: http://www.regalbeloit.com/




    ViaSat Sets November 8, 2016 for Q2 2017 Fiscal Year Earnings Conference Call and Webcast

    CARLSBAD, Calif., Nov. 1, 2016 /PRNewswire/ -- ViaSat Inc. , a global broadband services and technology company, will host a conference call on Tuesday, November 8, 2016, at 5:00 p.m. Eastern Time to discuss the second quarter results for fiscal year 2017.

    The dial-in number is (877) 640-9809 in the U.S. and (914) 495-8528 internationally. Listeners can also access the conference call webcast and other material financial information discussed on the conference call on the Investor Relations section of the ViaSat website at: investors.viasat.com. The call will be archived and available on that site for approximately one month immediately following the conference call.

    A replay of the conference call will be available from 8:00 p.m. Eastern Time on Tuesday, November 8 until 11:59 p.m. Eastern Time on Wednesday, November 9 by dialing (855) 859-2056 for U.S. callers and (404) 537-3406 for international callers, and entering the conference ID 12129423.

    About ViaSat
    ViaSat, Inc. keeps the world connected. As a global broadband services and technology company, ViaSat ensures consumers, businesses, governments and military personnel have communications access - anywhere - whether on the ground or in-flight. The Company's innovations in designing highest-capacity satellites and secure ground infrastructure and terminal technologies coupled with its international network of managed Wi-Fi hotspots enable ViaSat to deliver a best available network that extends the reach and accessibility of broadband internet service, globally. For more information visit ViaSat at: www.viasat.com, or follow the Company on social media: Facebook, Twitter, LinkedIn and YouTube.

    Copyright (C) 2016 ViaSat, Inc. All rights reserved. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners. ViaSat is a registered trademark of ViaSat, Inc.

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/viasat-sets-november-8-2016-for-q2-2017-fiscal-year-earnings-conference-call-and-webcast-300355263.html

    Photo: http://photos.prnewswire.com/prnh/20091216/VIASATLOGO ViaSat, Inc.

    CONTACT: Investor Relations, Heather Ferrante, 760-476-2242,
    Heather.Ferrante@viasat.com, Public Relations, Chris Fallon, 760-476-2322,
    Chris.Fallon@viasat.com

    Web site: http://www.viasat.com/




    Cavium Announces Financial Results for Q3 2016

    SAN JOSE, Calif., Nov. 1, 2016 /PRNewswire/ -- Cavium, Inc. , a leading provider of semiconductor products that enable secure and intelligent processing for enterprise, data center, cloud, wired and wireless networking, today announced financial results for the third quarter ended September 30, 2016.

    https://photos.prnewswire.com/prnvar/20120604/LA18845LOGO

    Cavium completed the acquisition of QLogic Corporation ("QLogic") on August 16, 2016. The financial results for the third quarter of 2016 include results from QLogic from the closing date to the end of the quarter.

    Net revenue in the third quarter of 2016 was $168.1 million, a 56.9% sequential increase from the $107.2 million reported in the second quarter of 2016 and 60.0% from the $105.1 million reported in the third quarter of 2015.

    Generally Accepted Accounting Principles (GAAP) Results

    Net loss for the third quarter of 2016 was $14.4 million, or ($0.23) per diluted share, compared to $7.4 million, or $(0.13) per diluted share in the second quarter of 2016. Gross margins were 28.2% in the third quarter of 2016 compared to 66.9% in the second quarter of 2016. GAAP operating loss (GAAP loss from operations as a percentage of revenue) was 56.1% in the third quarter of 2016 compared to 6.4% in the second quarter of 2016. Total cash and cash equivalents were $192.4 million at September 30, 2016.

    Non-GAAP Results

    Cavium believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Cavium's financial condition and results of operations. Cavium believes that these non-GAAP financial measures provide additional insight into Cavium's ongoing performance and has chosen to provide these measures for more consistent and meaningful comparison between periods. These measures should only be used to evaluate Cavium's results of operations in conjunction with the corresponding GAAP measures. The reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this release.

    In the third quarter of 2016, Non-GAAP net income was $28.0 million, or $0.43 per diluted share. Non-GAAP gross margin was 64.0% and Non-GAAP operating margin (non-GAAP income from operations as a percentage of revenue) was 19.2%.

    Recent News Highlights

    --  October 31, 2016 - Cavium Introduced 1025GbE Adapter Family for Open
    Compute Project Servers
    --  October 27, 2016 - Cavium QLogic Added PowerShell Integrated Management
    Solution for FastLinQ Ethernet Adapters
    --  October 25, 2016 - Cavium Showcased ARMv8 Processor Solutions to
    Accelerate Next Generation Infrastructure at ARM TechCon 2016
    --  October 25, 2016 - Cavium Showcased Highly Optimized Platforms for
    OpenStack Deployments at OpenStack Summit 2016
    --  October 25, 2016 - Cavium QLogic Accelerates Cloud Deployments with
    OpenStack Integration
    --  October 25, 2016 - SUSE Steps Up to Support Innovative ARM Solutions for
    Customers
    --  September 27, 2016 - Cavium QLogic Accelerates Software Defined
    Datacenters with Windows Server 2016
    --  August 30, 2016 - QLogic Showcased Multiple Technologies that Simplify
    and Accelerate Virtualized Server Deployments at VMworld 2016
    --  August 16, 2016 - Cavium Completed the Acquisition of QLogic
    --  August 16, 2016 - Cavium, Inc. Announced Successful Completion of the
    Exchange Offer in Connection with the Proposed Acquisition of QLogic
    Corporation
    --  August 10, 2016 - Cavium, Inc. Announced Extension of the Expiration of
    the Exchange Offer in Connection with the Proposed Acquisition of QLogic
    Corporation
    --  August 2, 2016 - Cavium, Inc. Announced the Expiration of HSR Waiting
    Period for the Acquisition of QLogic Corporation
    --  July 26, 2016 - Cavium Named Raghib Hussain Chief Operating Officer
    --  July 26, 2016 - Cavium Added Industry Veterans Brad W. Buss and Dr.
    Edward H. Frank to Board of Directors
    

    Cavium will broadcast its third quarter of 2016 financial results conference call today, November 1, 2016, at 2 p.m. Pacific time (5 p.m. Eastern time). The conference call will be available via a live web cast on the investor relations section of the Cavium website at http://www.cavium.com. Please access the website at least a few minutes prior to the start of the call in order to download and install any necessary audio software. An archived web cast replay of the call will be available on the web site for a limited period of time.

    About Cavium

    Cavium offers a broad portfolio of integrated, software compatible processors ranging in performance from 1Gbps to 100Gbp that enable secure, intelligent functionality in Enterprise, Data Center, Broadband, Mobile and Service Provider Equipment, highly programmable switches which scale to 3.2Tbps and Ethernet and Fibre Channel adapters up to 100Gbps. Cavium processors are supported by ecosystem partners that provide operating systems, tools and application support, hardware reference designs and other products. Cavium is headquartered in San Jose, CA with design centers in California, Massachusetts, India, Israel, China and Taiwan. For more information, please visit: http://www.cavium.com.


    CAVIUM, INC. Unaudited GAAP Condensed Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended ------------------ September 30, 2016 June 30, 2016 ------------------ ------------- Net revenue $168,123 $107,158 Cost of revenue 120,709 35,499 ------- ------ Gross profit 47,414 71,659 ------ ------ Operating expenses: Research and development 67,752 52,578 Sales, general and administrative 73,904 25,882 ------ ------ Total operating expenses 141,656 78,460 ------- ------ Loss from operations (94,242) (6,801) ------- ------ Other income (expense), net: Interest expense (4,268) (185) Other, net 54 (151) --- ---- Total other expense, net (4,214) (336) ------ ---- Loss before income taxes (98,456) (7,137) Provision for (benefit from) income taxes (84,090) 273 ------- --- Net loss $(14,366) $(7,410) ======== ======= Net loss per common share, basic and diluted $(0.23) $(0.13) Shares used in computing basic and diluted net loss per common share 62,055 57,527

    CAVIUM, INC. Unaudited Reconciliation of Non-GAAP Adjustments (in thousands, except per share data and percentages) Three Months Ended ------------------ September 30, 2016 June 30, 2016 ------------------ ------------- Reconciliation of GAAP gross profit and margin to non-GAAP: Net revenue $168,123 $107,158 GAAP gross profit 47,414 71,659 GAAP gross margin 28.2% 66.9% Stock-based compensation and related payroll taxes from awards granted by the Company 274 261 Stock-based compensation and related payroll taxes from awards assumed from the acquisition 134 - Purchase accounting effect on inventory 9,888 - Manufacturing rights buy-out 37,059 - Amortization of acquisition related assets 12,880 157 ------ --- Non-GAAP gross profit $107,649 $72,077 ======== ======= Non-GAAP gross margin 64.0% 67.3% ==== ==== Reconciliation of GAAP operating expenses to non-GAAP: GAAP research and development expenses $67,752 $52,578 Stock-based compensation and related payroll taxes from awards granted by the Company (9,644) (9,017) Stock-based compensation expense related to employees with change in control provision (956) - Stock-based compensation and related payroll taxes from awards assumed from the acquisition (1,363) - Amortization of acquisition related assets (2,643) (3,523) Non-GAAP research and development expenses 53,146 40,038 ------ ------ GAAP sales, general and administrative expenses 73,904 25,882 Stock-based compensation and related payroll taxes from awards granted by the Company (7,554) (5,263) Stock-based compensation expense related to employees with change in control provision (15,625) - Stock-based compensation and related payroll taxes from awards assumed from the acquisition (1,097) - Acquisition and integration related costs (13,486) (6,339) Amortization of acquisition related assets (524) - Restructuring, severance and other employment charges (13,477) - ------- --- Non-GAAP sales, general and administrative expenses 22,141 14,280 ------ ------ Total Non-GAAP operating expenses $75,287 $54,318 ======= ======= Reconciliation of GAAP non-operating expenses to non-GAAP: GAAP other expense, net $(4,214) $(336) Interest expense and amortization of debt financing cost associated with interim term loan facility 522 - --- --- Non-GAAP other expense, net $(3,692) $(336) ======= ===== Reconciliation of GAAP Income tax to non- GAAP: GAAP provision for (benefit from) income tax $(84,090) $273 Partial reversal of the deferred tax asset valuation allowance due to acquisition 84,792 - ------ --- Non-GAAP provision for income tax $702 $273 ==== ====


    CAVIUM, INC. Unaudited Reconciliation of Non-GAAP Adjustments (in thousands, except per share data and percentages) Three Months Ended ------------------ September 30, 2016 June 30, 2016 ------------------ ------------- Reconciliation of GAAP loss from operations to non-GAAP income from operations: GAAP loss from operations $(94,242) $(6,801) Stock-based compensation and related payroll taxes from awards granted by the Company 17,472 14,541 Stock-based compensation expense related to employees with change in control provision 16,581 - Stock-based compensation and related payroll taxes from awards assumed from the acquisition 2,594 - Purchase accounting effect on inventory 9,888 - Amortization of acquisition related assets 16,047 3,680 Acquisition and integration related costs 13,486 6,339 Manufacturing rights buy-out 37,059 - Restructuring, severance and other employment charges 13,477 - ------ --- Non-GAAP income from operations $32,362 $17,759 ======= ======= Non-GAAP income from operations as a percentage of revenue 19.2% 16.6% ==== ==== Reconciliation of GAAP net loss to non-GAAP net income: GAAP net loss $(14,366) $(7,410) Non-GAAP adjustments: Stock-based compensation and related payroll taxes from awards granted by the Company 17,472 14,541 Stock-based compensation expense related to employees with change in control provision 16,581 - Stock-based compensation and related payroll taxes from awards assumed from the acquisition 2,594 - Purchase accounting effect on inventory 9,888 - Amortization of acquisition related assets 16,047 3,680 Acquisition and integration related costs 13,486 6,339 Manufacturing rights buy-out 37,059 - Restructuring, severance and other employment charges 13,477 - Interest expense and amortization of debt financing cost associated with interim term loan facility 522 - Partial reversal of the deferred tax asset valuation allowance due to acquisition (84,792) - ------- --- Total of non-GAAP adjustments 42,334 24,560 ------ ------ Non-GAAP net income $27,968 $17,150 ======= ======= GAAP net loss per share, diluted $(0.23) $(0.13) ====== ====== Non-GAAP adjustments detailed above 0.66 0.42 Non-GAAP net income per share, diluted $0.43 $0.29 ===== ===== GAAP weighted average shares, diluted 62,055 57,527 Non-GAAP share adjustment 3,062 2,471 ----- ----- Non-GAAP weighted average shares, diluted 65,117 59,998

    CAVIUM, INC. Unaudited GAAP Condensed Consolidated Balance Sheets (in thousands) As of ----- September 30, 2016 June 30, 2016 ------------------ ------------- Assets Current assets Cash and cash equivalents $192,378 $140,419 Accounts receivable, net 144,902 82,137 Inventories 118,936 52,702 Prepaid expenses and other current assets 20,556 10,109 Asset held for sale 38,511 - ------ --- Total current assets 515,283 285,367 Property and equipment, net 122,114 64,917 Intangible assets, net 790,368 36,698 Goodwill 319,021 71,478 Other assets 3,922 1,822 ----- ----- Total assets $1,750,708 $460,282 ========== ======== Liabilities and Stockholders' Equity Current liabilities Accounts payable $55,009 $30,024 Other accrued expenses and other current liabilities 43,163 16,447 Deferred revenue 9,399 7,856 Current portion of long-term debt 53,774 - Capital lease and technology license obligations 27,747 17,380 ------ ------ Total current liabilities 189,092 71,707 Long-term debt 676,372 - Capital lease and technology license obligations, net of current 11,780 4,182 Deferred tax liability 17,270 3,923 Other non-current liabilities 18,266 4,140 ------ ----- Total liabilities 912,780 83,952 ------- ------ Stockholders' equity Common stock 66 58 Additional paid-in capital 1,052,840 576,927 Accumulated deficit (215,021) (200,655) Accumulated other comprehensive loss 43 - --- --- Total stockholders' equity 837,928 376,330 ------- ------- Total liabilities and stockholders' equity $1,750,708 $460,282 ========== ========

    Logo - http://photos.prnewswire.com/prnh/20120604/LA18845LOGO

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/cavium-announces-financial-results-for-q3-2016-300355154.html

    Photo: https://photos.prnewswire.com/prnh/20120604/LA18845LOGO Cavium, Inc.

    CONTACT: Art Chadwick, Vice President of Finance and Administration and
    Chief Financial Officer, Tel: (408) 943-7104, Email:
    art.chadwick@cavium.com; Angel Atondo, Senior Marketing Communications
    Manager, Tel: (408) 943-7417, Email: angel.atondo@cavium.com

    Web site: http://www.cavium.com/




    Extreme Networks Reports First Quarter Fiscal Year 2017 Financial ResultsQ1 GAAP Revenue of $122.6 Million & Non-GAAP Revenue of $122.8 MillionQ1 GAAP Loss Per Share of $0.06 & Non-GAAP Earnings Per Share of $0.07

    SAN JOSE, Calif., Nov. 1, 2016 /PRNewswire/ -- Extreme Networks, Inc. ("Extreme") today released financial results for its fiscal first quarter ended September 30, 2016. First quarter GAAP revenue was $122.6 million and non-GAAP revenue was $122.8 million. GAAP net loss for the first fiscal quarter was $6.5 million, or $0.06 per basic share, and non-GAAP net income was $7.1 million, or $0.07 per diluted share.

    https://photos.prnewswire.com/prnvar/20140602/93419

    "We are pleased to see the positive impacts of our margin initiatives in our first quarter financial results. Our non-GAAP operating income is up 18% year over year and our product gross margins increased by 200 basis points both annually and sequentially highlighting the progress we are making," stated Ed Meyercord, President and CEO of Extreme Networks. "Revenue in the quarter was impacted by a more disciplined approach to our discounting policies and softness in E-Rate."

    "With the recently completed acquisition of the WLAN business from Zebra Technologies Corporation, we have new growth opportunities across existing and new markets. We are excited to bring Zebra's talented employees, advanced technology portfolio and blue chip customers into Extreme," Meyercord added.

    Recent Key Events:

    --  Growth with Close of Zebra WLAN Business.
    --  Establishes Extreme as #3 in WLAN in targeted enterprise verticals.
    --  Expanded offering and network refresh opportunities with Zebra's
    large-scale, multi-location distributed enterprise customers such as
    Walmart, Kroger, FedEx and Loews.
    --  New technology offerings to Extreme customers including Zebra's Wing
    operating system; the industry leading wireless security offering -
    Air Defense; guest management platform and location based services;
    and new in-house managed services capabilities.
    --  Extreme New Product Introductions.  Introduced the industry's first Wave
    2 Integrated Camera Access Point, White Label Cloud Management Solutions
    for partner enablement, Wall Plate Wireless AP and expanded Industrial
    switch portfolio.
    --  Industry Recognition as "Visionary" and "Champion".  For the second
    consecutive year, Extreme is positioned the furthest to the right by
    Gartner, Inc. in the "Visionaries" quadrant in the Magic Quadrant for
    Wired and Wireless LAN Access Infrastructure. In addition, Gartner rated
    Extreme the third highest score of 16 vendors in the annual Critical
    Capabilities for Wired and Wireless Access LAN in the All-Wireless
    Office and IaaS/Managed Service use cases.* This quarter, Info-Tech
    Research Group placed Extreme as a Champion in the Vendor Landscape for
    Wired and Wireless LAN.
    --  Launch of Extreme Partner Network. Extreme introduced new enhancements
    to its Extreme Partner Network ("EPN") program to offer new incentives
    that increase profitability and simplify the way Extreme's channel
    partners do business.  It is the most competitive partner program in the
    industry.
    

    *Gartner, Critical Capabilities for Wired and Wireless LAN Access Infrastructure, 12 September 2016
    Gartner, Magic Quadrant for the Wired and Wireless LAN Access Infrastructure, 30 August 2016
    Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

    Fiscal Q1 2017 Financial Metrics: 2017 2016 Change ---- ---- ------ GAAP Net Revenue Product $90.1 $91.4 $(1.3) (1)% Service 32.5 33.2 (0.7) (2)% ---- ---- ---- Total Net Revenue $122.6 $124.6 $(2.0) (2)% Gross Margin 53.2% 52.3% 0.9% 2% Operating Margin (3.9)% (8.7)% 4.8% 55% Net Loss $(6.5) $(11.5) $5.0 44% Loss per basic share $(0.06) $(0.11) $0.05 45% Non-GAAP Net Revenue Product $90.1 $91.4 $(1.3) (1)% Service 32.7 33.6 (0.9) (3)% ---- ---- ---- Total Net Revenue $122.8 $125.0 $(2.2) (2)% Gross Margin 56.3% 55.2% 1.1% 2% Operating Margin 7.2% 6.0% 1.2% 20% Net Income $7.1 $6.7 $0.4 7% Earnings per diluted share $0.07 $0.07 $ - -

    -- Cash and investments ended the quarter at $102.3 million, as compared to $94.1 million from the prior quarter and an increase of $20.2 million from the prior year amount. -- Accounts receivable balance ending Q1 was $68.2 million, with days sales outstanding ("DSO") of 51. -- Inventory ending Q1 was $43.4 million, an increase of $2.4 million from the prior quarter and down $18.3 million from the prior year amount.

    Business Outlook:

    Extreme's Business Outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially based on market conditions and the factors set forth under "Forward-Looking Statements" below.

    For its second quarter of fiscal 2017 ending December 31, 2016, the Company is targeting GAAP and non-GAAP revenue in a range of $148.0 million to $158.0 million. GAAP gross margin is targeted between 53.4% and 55.3% and non-GAAP gross margin is targeted between 54.5% and 55.5%. Operating expenses are targeted to be between $88.1 million and $90.5 million on a GAAP basis and $72.8 million to $76.3 million on a non-GAAP basis. GAAP earnings are targeted to be between a net loss of $6.4 million to $10.1 million or a loss of $0.06 to $0.09 per share. Non-GAAP earnings are targeted in a range of net income of $5.7 million to $9.4 million, or $0.05 to $0.09 per diluted share. The GAAP and non-GAAP net income (loss) targets are based on an estimated 109 million and 110 million average outstanding shares, respectively.

    Conference Call:

    Extreme will host a conference call at 4:30 p.m. Eastern (1:30 p.m. Pacific) today to review the first fiscal quarter results as well as the second fiscal quarter 2017 business outlook, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the Internet at http://investor.extremenetworks.com and a replay of the call will be available on the website through November 2, 2017. The conference call may also be heard by dialing 1-877-303-9826 (international callers dial 1-224-357-2194). Supplemental financial information to be discussed during the conference call will be posted in the Investor Relations section of the Company's website www.extremenetworks.com including the non-GAAP reconciliation attached to this press release. The encore recording can be accessed by dialing (855) 859-2056 /or international 1 (404) 537-3406 Conference ID # 90330335.

    About Extreme Networks:

    Extreme Networks, Inc. ("EXTR") delivers software-driven networking solutions that help IT departments everywhere deliver the ultimate business outcome: stronger connections with customers, partners and employees. Wired to wireless, desktop to datacenter, we go to extreme measures for our 20,000-plus customers in more than 80 countries, delivering 100% insourced call-in technical support to organizations large and small, including some of the world's leading names in business, education, government, healthcare, manufacturing and hospitality. Founded in 1996, Extreme is headquartered in San Jose, California. For more information, visit Extreme's website or call 1-888-257-3000.

    Extreme Networks and the Extreme Networks logo, ExtremeManagement, ExtremeWireless, ExtremeControl and ExtremeAnalytics are either trademarks or registered trademarks of Extreme Networks, Inc. in the United States and/or other countries.

    Non-GAAP Financial Measures:

    Extreme provides all financial information required in accordance with generally accepted accounting principles ("GAAP"). The Company is providing with this press release non-GAAP revenue, non-GAAP gross margins, non-GAAP operating expenses, and non-GAAP income (loss) per share. In preparing non-GAAP information, the Company has excluded, where applicable, the impact of share-based compensation, acquisition and integration costs, purchase accounting adjustments, amortization of acquired intangibles, restructuring charges, executive transition costs, litigation expenses and overhead adjustments. The Company believes that excluding these items provides both management and investors with additional insight into its current operations, the trends affecting the Company, the Company's marketplace performance, and the Company's ability to generate cash from operations. Please note the Company's non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company's GAAP financial information. The Company has provided a non-GAAP reconciliation of the results for the periods presented in this release, which are adjusted to exclude certain items as indicated. These measures should only be used to evaluate the Company's results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company's ongoing performance as a business. Reconciliation of non-GAAP to corresponding GAAP measures with respect to our business outlook is not possible at this time due to the fact that amortization, stock compensation expense and the impact of the mark-up of inventory to fair value for purchase accounting can only be determined in connection with the post-closing valuation of the assets we acquired in connection with the closing of our transaction with Zebra Technologies Corporation and other post-closing activities of the Company. Extreme Networks uses both GAAP and non-GAAP measures to evaluate and manage its operations.

    Forward Looking Statements:

    Statements in this release, including those concerning the Company's business outlook, future financial and operating results, and overall future prospects are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date of this release. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of certain factors, including: our ability to realize the anticipated benefits of the WLAN business from Zebra Technologies Corporation and to successfully integrate the acquired technologies and operations into our business and operations; failure to achieve targeted revenues and forecasted demand from end customers; a highly competitive business environment for network switching equipment; our effectiveness in controlling expenses; the possibility that we might experience delays in the development or introduction of new technology and products; customer response to our new technology and products; the timing of any recovery in the global economy; risks related to pending or future litigation; and a dependency on third parties for certain components and for the manufacturing of our products.

    More information about potential factors that could affect the Company's business and financial results is included in the Company's filings with the Securities and Exchange Commission, including, without limitation, under the captions: "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Risk Factors". Except as required under the U.S. federal securities laws and the rules and regulations of the U.S. Securities and Exchange Commission, Extreme Networks disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

    EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) September 30, June 30, 2016 2016 ---- ---- ASSETS Current assets: Cash and cash equivalents $102,265 $94,122 Accounts receivable, net of allowances of $2,582 at September 30, 2016 and $3,257 at June 30, 2016 68,246 81,419 Inventories 43,395 40,989 Prepaid expenses and other current assets 11,507 12,438 ------ ------ Total current assets 225,413 228,968 Property and equipment, net 30,058 29,580 Intangible assets, net 11,707 19,762 Goodwill 70,877 70,877 Other assets 25,054 25,236 ------ ------ Total assets $363,109 $374,423 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $19,269 $17,628 Accounts payable 28,332 30,711 Accrued compensation and benefits 19,827 27,145 Accrued warranty 8,620 9,600 Deferred revenue, net 70,697 72,934 Deferred distributors revenue, net of cost of sales to distributors 30,229 26,817 Other accrued liabilities 27,382 26,691 ------ ------ Total current liabilities 204,356 211,526 Deferred revenue, less current portion 21,540 21,926 Long-term debt, less current portion 32,621 37,446 Deferred income taxes 5,129 4,693 Other long-term liabilities 8,728 8,635 Commitments and contingencies Stockholders' equity 90,735 90,197 ------ ------ Total liabilities and stockholders' equity $363,109 $374,423 ======== ========

    EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) For the three months ended -------------------------- September 30, September 30, 2016 2015 ---- ---- Net revenues: Product $90,131 $91,381 Service 32,511 33,200 ------ ------ Total net revenues 122,642 124,581 ------- ------- Cost of revenues: Product 44,927 46,934 Service 12,469 12,529 ------ ------ Total cost of revenues 57,396 59,463 ------ ------ Gross profit: Product 45,204 44,447 Service 20,042 20,671 ------ ------ Total gross profit 65,246 65,118 ------ ------ Operating expenses: Research and development 18,299 20,268 Sales and marketing 36,956 36,062 General and administrative 8,287 9,176 Acquisition and integration costs 2,321 338 Restructuring charge, net of reversals - 5,603 Amortization of intangibles 4,142 4,467 ----- ----- Total operating expenses 70,005 75,914 ------ ------ Operating loss (4,759) (10,796) Interest income 57 27 Interest expense (647) (826) Other income (expense), net (223) 967 ---- --- Loss before income taxes (5,572) (10,628) Provision for income taxes 907 898 --- --- Net loss $(6,479) $(11,526) ======= ======== Basic and diluted net loss per share: Net loss per share - basic $(0.06) $(0.11) Net loss per share - diluted $(0.06) $(0.11) Shares used in per share calculation -basic 105,955 100,985 Shares used in per share calculation -diluted 105,955 100,895

    EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the three months ended -------------------------- September 30, September 30, 2016 2015 ---- ---- Net cash provided by operating activities $9,574 $6,526 ------ ------ Cash flows from investing activities: Capital expenditures (1,635) (633) Net cash used in investing activities (1,635) (633) ------ ---- Cash flows from financing activities: Repayment of debt (3,250) (1,625) Proceeds from issuance of common stock 3,416 1,855 ----- ----- Net cash provided by financing activities 166 230 --- --- Foreign currency effect on cash 38 (323) Net increase in cash and cash equivalents 8,143 5,800 ----- ----- Cash and cash equivalents at beginning of period 94,122 76,225 ------ ------ Cash and cash equivalents at end of period $102,265 $82,025 ======== =======

    Extreme Networks, Inc.
    Non-GAAP Measures of Financial Performance

    To supplement the Company's consolidated financial statements presented in accordance with generally accepted accounting principles, ("GAAP"), Extreme Networks uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP gross margin, non-GAAP operating expenses and free cash flow.

    Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release. In this press release, Extreme Networks also presents its target for non-GAAP expenses, which is expenses less share-based compensation expense, acquisition and integration costs, purchase accounting adjustments, amortization of intangibles, restructuring expenses and overhead adjustments.

    Non-GAAP measures presented in this press release are not in accordance with or alternative measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Extreme Networks' results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate Extreme Networks' results of operations in conjunction with the corresponding GAAP measures.

    Extreme believes these non-GAAP measures when shown in conjunction with the corresponding GAAP measures enhance investors' and management's overall understanding of the Company's current financial performance and the Company's prospects for the future, including cash flows available to pursue opportunities to enhance shareholder value. In addition, because Extreme Networks has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the Company's financial reporting.

    For its internal planning process, and as discussed further below, Extreme's management uses financial statements that do not include share-based compensation expense, acquisition and integration costs, purchase accounting adjustments, amortization of intangibles, restructuring expenses, executive transition costs, litigation expenses and overhead adjustments. Extreme's management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company's financial results.

    As described above, Extreme excludes the following items from one or more of its non-GAAP measures when applicable.

    Share-based compensation. This expense consists of expenses for stock options, restricted stock and employee stock purchases through its ESPP. Extreme Networks excludes share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing cash requirement related to operating results. Extreme Networks expects to incur share-based compensation expenses in future periods.

    Acquisition and integration costs. Acquisition and integration costs consist of legal and professional fees related to the acquisition of Zebra Technologies Corporation's wireless LAN business. Extreme Networks excludes these expenses since they result from an event that is outside the ordinary course of continuing operations.

    Purchase accounting adjustments. Purchase accounting adjustments relating to deferred revenue consists of adjustments to the carrying value of deferred revenue. We have recorded adjustments to the assumed deferred revenue to reflect only a fulfillment margin and thereby excluding the profit margin and revenue which would have been incurred had Extreme Networks entered into the service contract post-acquisition.

    Amortization of acquired intangibles. Amortization of acquired intangibles includes the monthly amortization expense of acquired intangible assets such as developed technology, customer relationships, trademarks and order backlog. The amortization of the developed technology intangible is recorded in product cost of goods sold, while the amortization for the other intangibles are recorded in operating expenses. Extreme Networks excludes these non-cash expenses since they result from an intangible asset and for which the period expense does not impact the operations of the business and are non-cash in nature.

    Restructuring expenses. Restructuring expenses primarily consist of accrued lease costs pertaining to the estimated future obligations for non-cancelable lease payments and accelerated depreciation of leasehold improvements related to excess facilities. Extreme Networks excludes restructuring expenses since they result from events that often occur outside of the ordinary course of continuing operations.

    Executive transition expenses. Executive transition expenses consists of severance and termination benefits and legal transition cash transactions. The expenses are incurred through execution of pre-established employment contracts with senior executives. The Company does not believe these expenses are reflective of ongoing cash requirements related to its operating results.

    Litigation expenses. Litigation expenses consist of legal and professional fees and expenses related to our on-going ligation matter as a result of a securities laws class action lawsuit.

    Overhead adjustments. Overhead adjustment relate to service inventory overhead capitalization, this was a one-time event and was non-cash in nature.

    In addition to the non-GAAP measures discussed above, Extreme uses free cash flow as a measure of operating performance. Free cash flow represents operating cash flows less net purchase of property and equipment on a GAAP basis. Extreme considers free cash flows to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business after the purchases of property and equipment, which can then be used to, among other things, invest in Extreme business, make strategic acquisitions, and strengthen the balance sheet. A limitation of the utility of free cash flows as a measure of financial performance is that it does not represent the total increase or decrease in the Company's cash balance for the period.


    EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS GAAP TO NON-GAAP RECONCILIATION (In thousands, except per share amounts) (Unaudited) Non-GAAP Revenue For the three months ended -------------------------- September 30, September 30, 2016 2015 ---- ---- Revenue - GAAP Basis $122,642 $124,581 Adjustments: Purchase accounting adjustment 133 377 --- --- Revenue - Non-GAAP Basis $122,775 $124,958 Non-GAAP Gross Margin For the three months ended -------------------------- September 30, September 30, 2016 2015 ---- ---- Gross profit -GAAP Basis $65,246 $65,118 Gross margin -GAAP Basis percentage 53.2% 52.3% Adjustments: Stock based compensation expense 300 663 Purchase accounting adjustments 133 377 Amortization of intangibles 3,417 4,292 Service inventory overhead capitalization - (1,493) --- ------ Gross profit - Non- GAAP Basis $69,096 $68,957 Gross margin - Non-GAAP Basis percentage 56.3% 55.2% Non-GAAP Operating Income For the three months ended -------------------------- September 30, September 30, 2016 2015 ---- ---- GAAP operating loss $(4,759) $(10,796) GAAP operating loss percentage (3.9)% (8.7)% Adjustments: Stock based compensation expense 3,475 4,671 Acquisition and integration costs 2,321 338 Restructuring charge, net of reversal - 5,603 Amortization of intangibles 7,559 8,759 Purchase accounting adjustments 133 377 Executive transition costs 34 - Litigation 27 - Service inventory overhead capitalization - (1,493) --- ------ Total adjustments to GAAP operating loss $13,549 $18,255 Non-GAAP operating income $8,790 $7,459 Non-GAAP operating income percentage 7.2% 6.0% Non-GAAP Net Income For the three months ended -------------------------- September 30, September 30, 2016 2015 ---- ---- GAAP net loss $(6,479) $(11,526) Adjustments: Stock based compensation expense 3,475 4,671 Acquisition and integration costs 2,321 338 Restructuring charge, net of reversal - 5,603 Amortization of intangibles 7,559 8,759 Purchase accounting adjustments 133 377 Executive transition costs 34 - Litigation 27 - Service inventory overhead capitalization - (1,493) --- ------ Total adjustments to GAAP net loss $13,549 $18,255 Non-GAAP net income $7,070 $6,729 Earnings per share Non-GAAP diluted net income per share $0.07 $0.07 Shares used in diluted net income per share calculation Non-GAAP shares used 108,637 102,907 Free Cash Flow For the three months ended -------------------------- September 30, September 30, 2016 2015 ---- ---- Cash flow provided by operations $9,574 $6,526 Less: PP&E CapEx spending (1,635) $(633) ------ ----- Total free cash flow $7,939 $5,893

    Logo - http://photos.prnewswire.com/prnh/20140602/93419

    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/extreme-networks-reports-first-quarter-fiscal-year-2017-financial-results-300355332.html

    Photo: https://photos.prnewswire.com/prnh/20140602/93419 Extreme Networks, Inc.

    CONTACT: Investor Relations, Frank Yoshino, 408/579-3456,
    fyoshino@extremenetworks.com, or Media Contact, Ben Haber, 617/624-3200,
    ExtremeUS@racepointglobal.com

    Web site: http://www.extremenetworks.com/

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