Tech News
-
LiveHive Names Jennifer Brandenburg As Chief Revenue Officer
SAN JOSE, CALIF., Nov. 4, 2015 (GLOBE NEWSWIRE) -- LiveHive, Inc., the industry's most comprehensive sales acceleration platform, today announced that it has appointed former Oracle sales executive Jennifer Brandenburg as Chief Revenue Office (CRO). Brandenburg brings with her more than 20 years of deep enterprise sales experience managing sales operations and growing sales organizations in the high technology industry. Brandenburg has led sales organizations at early stage startups to large enterprise companies worldwide, including serving as regional VP, CRM OnDemand sales at Oracle Corporation, where she increased ASP by 100% and closed over $16 million in revenue annually.
"LiveHive's customer base is growing rapidly," said Suresh Balasubramanian, CEO of LiveHive, Inc. "This makes it the perfect time for us to bring Jennifer on board. Her broad experience and proven success at some of the biggest tech companies in Silicon Valley make her the most qualified person to lead our sales organization and drive revenue during this hyper-growth stage."
"I've been in sales and operations my entire professional career and understand first-hand the critical need that LiveHive fills for sales organizations," said Jennifer Brandenburg, CRO of LiveHive, Inc. "LiveHive's analytics and automation give teams a powerful solution to maximize sales productivity. As a sales leader, I look forward to bringing these capabilities to customers and quickly scaling LiveHive."
About LiveHive
Headquartered in San Jose, California, LiveHive, Inc. delivers a complete sales acceleration platform that empowers sales leaders with deep buyer-based engagement analytic insights into the effectiveness of their team's sales efforts. With LiveHive's comprehensive analytics, sales organizations can personalize and automate their follow-up to get more time in the day to focus on building sales relationships and accelerating sales.
LiveHive helps sales leaders get insight into reps' email, calling and follow-up activity, ramp up new reps to full productivity faster, and ensure consistent messaging across the organization, empowering them to build a successful repeatable sales process. LiveHive's SmartPath automated email sequencing, and award-winning engagement analytics let sales reps focus on core selling activity and sales leaders quickly understand the effectiveness of their sales teams' efforts. For more information, visit www.livehive.com and follow us @LiveHive.A photo accompanying this release is available at:
http://www.globenewswire.com/newsroom/prs/?pkgid=37375CONTACT: Media Contact: Jennifer Dignum 650-814-2727 (cell) 408-453-6000 (office) jennifer@livehive.com @LiveHive
-
TubeMogul Launches Select Access to Automate Private Inventory Management for Brands and Agencies
EMERYVILLE, Calif., Nov. 4, 2015 (GLOBE NEWSWIRE) -- Today, TubeMogul (NASDAQ:TUBE), a leading enterprise software company for brand advertising, announced the launch of Select Access, a transparent and controlled programmatic reservation interface that streamlines direct deals between marketers and leading publishers. Select Access enables brands and agencies to express their demand for premium inventory to a select group of publishers and use software to automate the access to that inventory.
Select Access is comprised of two solutions, On Demand and Direct Sales Reservation. On Demand simplifies the non-reserved private deal process for both advertisers and publishers by enabling access to programmatic inventory from premium publishers while ensuring those publishers have full control over the terms of the transaction.
Direct Sales Reservation enables TubeMogul clients to automate their reserved inventory requests to the sales team of a select group of premium publishers and operationalize deals through the TubeMogul platform. In this way, the software brings increased automation to new agreements between brands, agencies and premium publishers.
At launch, over 50 top TV networks and media companies are integrated with Select Access, including A+E Networks, Discovery Communications and Univision. Approximately 2.4 billion video impressions will be available via Select Access in 2015.
"A+E Networks has consistently led the way in delivering television content via A+E digital platforms. Select Access helps us highlight our premium inventory to agency buyers while automating and streamlining many of the direct and ongoing deals we have with top marketers," said Sarah Shriver, VP Digital Ad Sales at A+E Networks.
"With a strong portfolio of powerful brands and premium video offerings, Discovery Communications partners with advertisers to reach highly engaged audiences with impactful solutions," said Harold Morgenstern, Senior Vice President of Digital Ad Sales at Discovery Communications. "TubeMogul's Select Access is a welcome addition, allowing us to deepen existing partnerships with brand advertisers and facilitate new, direct deals."
Over 10 clients have already tested or committed to use Select Access, including Lenovo, Empower MediaMarketing and Trilia Media.
"At Empower it's our constant quest to push the media status quo for our clients," Jim Price, Empower MediaMarketing CEO and president, said. "With Select Access we can deliver premium content to audiences through an agile automated platform that is cost-efficient for our clients."
"While programmatic has indelibly altered the media buying landscape, the reality is that some direct and private deals are still negotiated manually," said Katie Thompson, VP of Platform Media / Group Media at Trilia Media. "This product shows promise because it extends the benefits of automation -- like streamlined buying, optimization and reporting -- to many of these deals."
About TubeMogul
TubeMogul (NASDAQ:TUBE) is an enterprise software company for brand advertising. By reducing complexity, improving transparency and leveraging real-time data, our platform enables advertisers to gain greater control of their global advertising spend and achieve their brand advertising objectives. TubeMogul was incorporated in 2007 and is based in Emeryville, California with operations in Kyiv, London, Mexico City, New York, Paris, Sao Paulo, Shanghai, Singapore, Sydney, Tokyo, Toronto and offices across the United States.
CONTACT: Media Contact: David Burch press@tubemogul.com Investor Relations Contact: Alex Wellins The Blueshirt Group investor@tubemogul.com
-
UBIC Subsidiary RAPPA Launches Kenkojiman.com
To become a valuable, integrated and interactive website connecting users and matching them with their desired information through AI technology
NEW YORK, Nov. 4, 2015 (GLOBE NEWSWIRE) -- Rappa, Inc., a wholly-owned subsidiary of UBIC, Inc. (Nasdaq:UBIC) (TSE:2158) ("UBIC" or "the Company"), a leading provider of artificial intelligence (AI)-based big data analysis services, announced today that on November 4, 2015, it launched Kenkojiman.com, a community website where users can consume and provide information concerning medicine, healthcare and beauty care.
Features of the community website Kenkojiman.com
Provides useful healthcare information mainly authored by in-house editorial staff
Kenkojiman.com provides current information primarily through original articles concerning medicine, healthcare and beauty care that is useful for everyday life. Information collected from around the world is classified into seven categories: beauty, body, exercise, food, mind, medicine and unhealthy behavior.
Facilitates exchanges and consultation through user contributions
Kenkojiman.com provides users with a platform to contribute information and communicate with one another about posted articles and personal experiences concerning health and beauty care. Users can deepen exchanges with each other by posting comments on their own experiences, or by starting new topics. (Note: In order to post comments and add articles to "Favorites," free user registration is required).
User-friendly interface promotes exchanges between users of various age groups
The intuitive website design enables people of various age groups, from those in their 20s to seniors, to use it with ease. This site provides a community forum for consulting with others, giving and receiving advice and exchanging information concerning healthcare among people with similar interests or problems across age groups. Moreover, in February, this site will evolve into a new healthcare community site that matches users with similar interests and preferences by using UBIC's cutting-edge AI technology, thereby making it easy for users to find information best suited to their needs.
Soon to become an AI-enabled website that offers personalized recommendations
In February 2016, Kenkojiman.com will be equipped with UBIC's proprietary AI system that can learn and reproduce human intuition and thinking based on a limited amount of data. It will recommend articles suited to users' preferences or related to their problems as well as to website visitors who may be able to share their thought. Kenkojiman.com will be a new type of site that can help to address individual users' healthcare problems.
By reviewing comments from ordinary users through Kenkojiman.com and by analyzing the opinions and behavior of a broad range of people, UBIC and Rappa aim to develop an AI system capable of offering the best possible user-to-content, matching and enhancing user-to-user relationships. In the future, the two companies will extend the application of the AI system beyond the healthcare field and accelerate its business expansion in the marketing field.
About Rappa, Inc. URL: http://www.rappa.com/
Rappa, Inc. applies UBIC's proprietary AI technology to digital marketing and engages in such businesses as providing digital curation service and operating community sites. It uses AI technology to identify people's interests and preferences and find necessary information from among the mass of data available on the Internet. Through such activity, Rappa aims to contribute to social development by providing people with opportunities to find information valuable for themselves and helping to unlock their creative potential. Rappa was founded on September 1, 2015, as a wholly-owned subsidiary of UBIC with capital of 10 million yen (as of September 2015).
About UBIC, Inc.
UBIC, Inc. (Nasdaq:UBIC) (TSE:2158) supports the analysis of big data based on behavior informatics by utilizing its proprietary AI-based software program, "VIRTUAL DATA SCIENTIST" or VDS. Developed by UBIC based on knowledge acquired through its litigation support services, the VDS program incorporates experts' tacit knowledge, including their experiences and intuitions, and utilizes that knowledge for big data analysis. UBIC continues to expand its business operations by applying VDS to new fields such as healthcare and marketing.
UBIC was founded in 2003 as a provider of e-discovery and international litigation support services. These services include the preservation, investigation and analysis of evidence materials contained in electronic data, and computer forensic investigation. UBIC provides e-discovery and litigation support by making full use of its data analysis platform, "Lit i View®", and its Predictive Coding technology adapted to Asian languages.
For more information about UBIC, contact u-contact@ubic.co.jp or visit http://www.ubicna.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the amount of data that UBIC expects to manage this year and the potential uses for UBIC's new service in intellectual property-related litigation, contain forward-looking statements. UBIC may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about UBIC's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: UBIC's goals and strategies; UBIC's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, UBIC's services; UBIC's expectations regarding keeping and strengthening its relationships with customers; UBIC's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where UBIC provides solutions and services. Further information regarding these and other risks is included in UBIC's reports filed with, or furnished to the Securities and Exchange Commission. UBIC does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and UBIC undertakes no duty to update such information, except as required under applicable law.
CONTACT: UBIC Global PR UBIC North America, Inc. Tel: (212) 924-8242 global_pr@ubic.co.jp
-
TubeMogul Launches Select Access to Automate Private Inventory Management for Brands and Agencies
EMERYVILLE, Calif., Nov. 4, 2015 (GLOBE NEWSWIRE) -- Today, TubeMogul (NASDAQ:TUBE), a leading enterprise software company for brand advertising, announced the launch of Select Access, a transparent and controlled programmatic reservation interface that streamlines direct deals between marketers and leading publishers. Select Access enables brands and agencies to express their demand for premium inventory to a select group of publishers and use software to automate the access to that inventory.
Select Access is comprised of two solutions, On Demand and Direct Sales Reservation. On Demand simplifies the non-reserved private deal process for both advertisers and publishers by enabling access to programmatic inventory from premium publishers while ensuring those publishers have full control over the terms of the transaction.
Direct Sales Reservation enables TubeMogul clients to automate their reserved inventory requests to the sales team of a select group of premium publishers and operationalize deals through the TubeMogul platform. In this way, the software brings increased automation to new agreements between brands, agencies and premium publishers.
At launch, over 50 top TV networks and media companies are integrated with Select Access, including A+E Networks, Discovery Communications and Univision. Approximately 2.4 billion video impressions will be available via Select Access in 2015.
"A+E Networks has consistently led the way in delivering television content via A+E digital platforms. Select Access helps us highlight our premium inventory to agency buyers while automating and streamlining many of the direct and ongoing deals we have with top marketers," said Sarah Shriver, VP Digital Ad Sales at A+E Networks.
"With a strong portfolio of powerful brands and premium video offerings, Discovery Communications partners with advertisers to reach highly engaged audiences with impactful solutions," said Harold Morgenstern, Senior Vice President of Digital Ad Sales at Discovery Communications. "TubeMogul's Select Access is a welcome addition, allowing us to deepen existing partnerships with brand advertisers and facilitate new, direct deals."
Over 10 clients have already tested or committed to use Select Access, including Lenovo, Empower MediaMarketing and Trilia Media.
"At Empower it's our constant quest to push the media status quo for our clients," Jim Price, Empower MediaMarketing CEO and president, said. "With Select Access we can deliver premium content to audiences through an agile automated platform that is cost-efficient for our clients."
"While programmatic has indelibly altered the media buying landscape, the reality is that some direct and private deals are still negotiated manually," said Katie Thompson, VP of Platform Media / Group Media at Trilia Media. "This product shows promise because it extends the benefits of automation -- like streamlined buying, optimization and reporting -- to many of these deals."
About TubeMogul
TubeMogul (NASDAQ:TUBE) is an enterprise software company for brand advertising. By reducing complexity, improving transparency and leveraging real-time data, our platform enables advertisers to gain greater control of their global advertising spend and achieve their brand advertising objectives. TubeMogul was incorporated in 2007 and is based in Emeryville, California with operations in Kyiv, London, Mexico City, New York, Paris, Sao Paulo, Shanghai, Singapore, Sydney, Tokyo, Toronto and offices across the United States.
CONTACT: Media Contact: David Burch press@tubemogul.com Investor Relations Contact: Alex Wellins The Blueshirt Group investor@tubemogul.com
-
UBIC Subsidiary RAPPA Launches Kenkojiman.com
To become a valuable, integrated and interactive website connecting users and matching them with their desired information through AI technology
NEW YORK, Nov. 4, 2015 (GLOBE NEWSWIRE) -- Rappa, Inc., a wholly-owned subsidiary of UBIC, Inc. (Nasdaq:UBIC) (TSE:2158) ("UBIC" or "the Company"), a leading provider of artificial intelligence (AI)-based big data analysis services, announced today that on November 4, 2015, it launched Kenkojiman.com, a community website where users can consume and provide information concerning medicine, healthcare and beauty care.
Features of the community website Kenkojiman.com
Provides useful healthcare information mainly authored by in-house editorial staff
Kenkojiman.com provides current information primarily through original articles concerning medicine, healthcare and beauty care that is useful for everyday life. Information collected from around the world is classified into seven categories: beauty, body, exercise, food, mind, medicine and unhealthy behavior.
Facilitates exchanges and consultation through user contributions
Kenkojiman.com provides users with a platform to contribute information and communicate with one another about posted articles and personal experiences concerning health and beauty care. Users can deepen exchanges with each other by posting comments on their own experiences, or by starting new topics. (Note: In order to post comments and add articles to "Favorites," free user registration is required).
User-friendly interface promotes exchanges between users of various age groups
The intuitive website design enables people of various age groups, from those in their 20s to seniors, to use it with ease. This site provides a community forum for consulting with others, giving and receiving advice and exchanging information concerning healthcare among people with similar interests or problems across age groups. Moreover, in February, this site will evolve into a new healthcare community site that matches users with similar interests and preferences by using UBIC's cutting-edge AI technology, thereby making it easy for users to find information best suited to their needs.
Soon to become an AI-enabled website that offers personalized recommendations
In February 2016, Kenkojiman.com will be equipped with UBIC's proprietary AI system that can learn and reproduce human intuition and thinking based on a limited amount of data. It will recommend articles suited to users' preferences or related to their problems as well as to website visitors who may be able to share their thought. Kenkojiman.com will be a new type of site that can help to address individual users' healthcare problems.
By reviewing comments from ordinary users through Kenkojiman.com and by analyzing the opinions and behavior of a broad range of people, UBIC and Rappa aim to develop an AI system capable of offering the best possible user-to-content, matching and enhancing user-to-user relationships. In the future, the two companies will extend the application of the AI system beyond the healthcare field and accelerate its business expansion in the marketing field.
About Rappa, Inc. URL: http://www.rappa.com/
Rappa, Inc. applies UBIC's proprietary AI technology to digital marketing and engages in such businesses as providing digital curation service and operating community sites. It uses AI technology to identify people's interests and preferences and find necessary information from among the mass of data available on the Internet. Through such activity, Rappa aims to contribute to social development by providing people with opportunities to find information valuable for themselves and helping to unlock their creative potential. Rappa was founded on September 1, 2015, as a wholly-owned subsidiary of UBIC with capital of 10 million yen (as of September 2015).
About UBIC, Inc.
UBIC, Inc. (Nasdaq:UBIC) (TSE:2158) supports the analysis of big data based on behavior informatics by utilizing its proprietary AI-based software program, "VIRTUAL DATA SCIENTIST" or VDS. Developed by UBIC based on knowledge acquired through its litigation support services, the VDS program incorporates experts' tacit knowledge, including their experiences and intuitions, and utilizes that knowledge for big data analysis. UBIC continues to expand its business operations by applying VDS to new fields such as healthcare and marketing.
UBIC was founded in 2003 as a provider of e-discovery and international litigation support services. These services include the preservation, investigation and analysis of evidence materials contained in electronic data, and computer forensic investigation. UBIC provides e-discovery and litigation support by making full use of its data analysis platform, "Lit i View®", and its Predictive Coding technology adapted to Asian languages.
For more information about UBIC, contact u-contact@ubic.co.jp or visit http://www.ubicna.com.
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the amount of data that UBIC expects to manage this year and the potential uses for UBIC's new service in intellectual property-related litigation, contain forward-looking statements. UBIC may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about UBIC's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: UBIC's goals and strategies; UBIC's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, UBIC's services; UBIC's expectations regarding keeping and strengthening its relationships with customers; UBIC's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where UBIC provides solutions and services. Further information regarding these and other risks is included in UBIC's reports filed with, or furnished to the Securities and Exchange Commission. UBIC does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and UBIC undertakes no duty to update such information, except as required under applicable law.
CONTACT: UBIC Global PR UBIC North America, Inc. Tel: (212) 924-8242 global_pr@ubic.co.jp
-
Reflexion Health Digital Medicine Therapy Tool, Vera(TM), Receives FDA 510(k) Clearance
SAN DIEGO, Nov. 4, 2015 (GLOBE NEWSWIRE) -- San Diego based Reflexion Health, a digital medicine company using Microsoft Kinect motion-tracking technology to reimagine rehabilitation medicine; today announced the US Food and Drug Administration (FDA) has cleared its motion-tracking based physical therapy tool, Vera™.
Vera is an easily operated, digital medicine software system using the Microsoft Kinect technology to aid patients with musculoskeletal rehabilitation. Vera projects an avatar onto a screen, coaches and motivates patients to perform exercises at home, all the while tracking and reporting back data to the physical therapist who monitors progress and optimizes therapy in real time. Vera provides next generation therapy for patients in an engaging, affordable and convenient platform.
"We are thrilled to be one of a growing number of digital medicine companies to receive FDA clearance to use innovative tools and methods, such as Vera, to deliver care in a more engaging and efficient way," said Spencer Hutchins, CEO and co-founder of Reflexion Health. "We look forward to continuing to demonstrate Vera's positive impact on patients, doctors, and therapists."
Reflexion is currently partnering with the Cleveland Clinic and the Brooks Rehabilitation Center in Jacksonville, Florida to deliver Vera to patients recovering from joint replacement surgery. Reflexion has also received a $1 million grant from the Centers for Disease Control to use Vera in fall prevention for seniors. As part of this grant the technology is currently employed in two senior populations in San Diego, California and Fearrington, North Carolina.
About Reflexion HealthReflexion Health is a digital medicine company using motion-tracking technologies to reimagine rehabilitation medicine. The first product, Vera™, is an FDA cleared, easily operated digital medicine software system using the Microsoft Kinect technology to project the avatar onto a screen, help patients perform exercises at home and report the results back to the physical therapist so the therapy can be adjusted to patient needs. Vera provides 21st century therapy for patients by improving rehab affordability, convenience, data driven evidence and an engaging platform. Vera is currently used by patients preparing for, and recovering from, joint replacement surgery and used as a preventative therapy to reduce falls. For more information, visit www.reflexionhealth.com.
CONTACT: Holly Hitchcock Holly@CruxPartners.com 805.801.9798
-
Reflexion Health Digital Medicine Therapy Tool, Vera(TM), Receives FDA 510(k) Clearance
SAN DIEGO, Nov. 4, 2015 (GLOBE NEWSWIRE) -- San Diego based Reflexion Health, a digital medicine company using Microsoft Kinect motion-tracking technology to reimagine rehabilitation medicine; today announced the US Food and Drug Administration (FDA) has cleared its motion-tracking based physical therapy tool, Vera™.
Vera is an easily operated, digital medicine software system using the Microsoft Kinect technology to aid patients with musculoskeletal rehabilitation. Vera projects an avatar onto a screen, coaches and motivates patients to perform exercises at home, all the while tracking and reporting back data to the physical therapist who monitors progress and optimizes therapy in real time. Vera provides next generation therapy for patients in an engaging, affordable and convenient platform.
"We are thrilled to be one of a growing number of digital medicine companies to receive FDA clearance to use innovative tools and methods, such as Vera, to deliver care in a more engaging and efficient way," said Spencer Hutchins, CEO and co-founder of Reflexion Health. "We look forward to continuing to demonstrate Vera's positive impact on patients, doctors, and therapists."
Reflexion is currently partnering with the Cleveland Clinic and the Brooks Rehabilitation Center in Jacksonville, Florida to deliver Vera to patients recovering from joint replacement surgery. Reflexion has also received a $1 million grant from the Centers for Disease Control to use Vera in fall prevention for seniors. As part of this grant the technology is currently employed in two senior populations in San Diego, California and Fearrington, North Carolina.
About Reflexion HealthReflexion Health is a digital medicine company using motion-tracking technologies to reimagine rehabilitation medicine. The first product, Vera™, is an FDA cleared, easily operated digital medicine software system using the Microsoft Kinect technology to project the avatar onto a screen, help patients perform exercises at home and report the results back to the physical therapist so the therapy can be adjusted to patient needs. Vera provides 21st century therapy for patients by improving rehab affordability, convenience, data driven evidence and an engaging platform. Vera is currently used by patients preparing for, and recovering from, joint replacement surgery and used as a preventative therapy to reduce falls. For more information, visit www.reflexionhealth.com.
CONTACT: Holly Hitchcock Holly@CruxPartners.com 805.801.9798
-
Kornit Digital Reports Third Quarter 2015 Results
Highlights
- Third quarter 2015 sales of $22.2 million, an increase of 20.0% over the prior year
- Non-GAAP operating margin of 13.5%, or $3 million; GAAP operating margin of 10%, or $2.2 million
- Third quarter non-GAAP net income of $2.9 million, or $0.09 per diluted share; GAAP net income of $2.1 million or $0.07 per diluted share.
- Key customer places fourth order for Allegro R2R system
ROSH-HA'AYIN, Israel, Nov. 3, 2015 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (NASDAQ:KRNT), a leading provider of digital printing solutions for the global printed textile industry, today reported results for the third quarter ended September 30, 2015.
Sales for the third quarter of 2015 increased 20.0% year-over-year to $22.2 million, as a result of incremental revenue associated with the new Allegro roll-to-roll system, combined with continued growth in direct-to-garment (DTG) systems and ink.
Non-GAAP net income in the third quarter of 2015 was $2.9 million, or $0.09 per diluted share, compared to prior-year net income of $3.5 million. On a GAAP basis, the Company reported a net income of $2.1 million, or $0.07 per diluted share, compared to a net income of $3.2 million, in the third quarter of 2014.
Gabi Seligsohn, Kornit Digital's Chief Executive Officer commented, "During the third quarter, we continued to deepen our customer relationships and generate strong interest for our disruptive solutions, particularly of our recently introduced high throughput systems. To that point, throughout the quarter we hosted multiple demonstrations for our newly introduced Allegro and pre-beta Vulcan systems, which generated strong customer interest. For the Allegro, several customer interactions have led to system orders which will be installed during the fourth quarter. For Vulcan, we successfully executed on multiple pre-beta customer demos, all of which have led to firm demand for systems by those customers."
Seligsohn continued, "We are pleased with the growth in our business through the first nine-months of 29% vs. the same period last year, although third quarter growth came in at the lower end of our guided range due to the timing of system volume. As we have seen in the past, quarter-to-quarter growth is not linear at this stage in our evolution. Looking to the balance of the year, we anticipate revenue from our recently introduced high throughput systems and volume from several new customers to provide a tailwind as we close out 2015."
Results of Operations
In the third quarter of 2015, Kornit reported sales of $22.2 million, an increase of 20.0% compared with the prior-year level of $18.5 million. Higher sales were the result of contributions from all product categories including systems, ink and consumables, and services.
Non-GAAP gross margin as a percentage of sales in the third quarter of 2015 was 48.3%, compared with 50.6% in the prior-year period. Lower gross margin compared to the prior year resulted from two large customer orders of multiple high-end systems in the third quarter of 2014, which provided a favorable margin rate during the period. Excluding the impact of these orders, our gross margin run rate continued to expand as a result of the ongoing mix shift to higher throughput systems, incremental ink sales, and a stronger contribution from services. On a GAAP basis, gross margin was $10.6 million, or 47.6% of sales.
Non-GAAP operating expenses in the third quarter increased to $7.7 million, compared to $5.6 million in the prior year. The increase in total operating expenses is consistent with the previously stated growth strategy, as the Company continues to execute to its global infrastructure build out. As a percent of sales, non-GAAP operating expenses for the third quarter were 34.8% of sales, an increase from 30.4% of sales in the prior year. On a GAAP basis, operating expenses were $8.4 million, or 37.7% during the quarter.
Non-GAAP research and development expenses were $2.9 million, compared to $2.2 million in the prior-year. On a GAAP basis, research and development expenses were $3.1 million, or 13.8% of sales during the quarter.
Non-GAAP operating profit in the third quarter declined to $3.0 million, compared to $3.7 million in the prior year. As a percent of sales, non-GAAP operating profit for the third quarter was 13.5% of sales, a decrease from 20.2% of sales in the prior year.
Non-GAAP net income for the third quarter of 2015 were $2.9 million, or $0.09 per diluted share, compared with Non-GAAP net income of $3.5 million, or $0.31 in the prior year period.
On a GAAP basis, the Company reported net earnings of $2.1 million, or $0.07 per diluted share, compared to a net income of $3.2 million, or $0.3 per diluted share in the third quarter of 2014.
2015 Third Quarter Guidance
The Company will discuss the details of its guidance live during its earnings conference call, which will be available for replay via webcast at ir.kornit.com.
Conference Call Information
Kornit will host a conference call today at 5:00 p.m. ET, or 12:00 a.m. Israel time, to discuss the results, followed by a question and answer session for the investment community. A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-888-427-9411 or +1-719-325-2458. The toll-free Israeli number is 1-809-24 5906. The confirmation code is 8335584.
To listen to a telephonic replay of the conference call, dial toll-free 1-877-870-5176 or +1-858-384-5517 (international) and enter confirmation code 8335584. The telephonic replay will be available beginning at 8:00 p.m. ET on Tuesday, November 3, 2015, and will last through 11:59 p.m. ET November 17, 2015. The call will also be available for replay via the webcast link on Kornit's Investor Relations website.
Forward Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as "will," "expects," "anticipates," "continue," "believes," "should," "intended," "guidance," "preliminary," "future," "planned," or other words. These forward-looking statements include, but are not limited to, statements relating to the company's objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events or developments that the company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: development of the market for digital textile printing, availability of alternative ink, competition, sales concentration, changes to our relationships with suppliers, our success in developing, introducing and selling new or improved products, our success in marketing, our success in effectively increasing our field presence and those factors referred to under "Risk Factors" in the company's final prospectus filed with the U.S. Securities and Exchange Commission. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude acquisition related expenses, share-based compensation expenses, amortization of acquired intangible assets and compensation related to the IPO. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures 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. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
About Kornit
Kornit develops, designs and markets innovative digital printing solutions for the global printed textile industry. Kornit's solution includes its proprietary digital printing systems, ink and other consumables, associated software and value added services. Kornit's vision is to revolutionize the textile industry by facilitating the transition from analog processes that have not evolved for decades to digital methods of production that address contemporary supply, demand and environmental dynamics. Kornit is a global company headquartered in Rosh-Ha`Ayin, Israel, with U.S. offices in Mequon, Wisconsin and additional sales, support and marketing offices in Germany and Hong Kong.
KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands, except share and per share data) Nine Months Ended Three Months Ended September 30, September 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) Revenues $ 61,077 $ 47,495 $ 22,201 $ 18,494 Cost of revenues 32,547 26,855 11,624 9,196 Gross profit 28,530 20,640 10,577 9,298 Operating expenses: Research and development 8,573 6,851 3,067 2,263 Selling and marketing 9,175 7,569 3,264 2,195 General and administrative 7,213 3,716 2,028 1,393 Total operating expenses 24,961 18,136 8,359 5,851 Operating income 3,569 2,504 2,218 3,447 Financial income (expenses), net (170) (199) 279 (105) Income before taxes on income 3,399 2,305 2,497 3,342 Taxes on income 739 476 354 173 Net income 2,660 1,829 2,143 3,169 Basic net income per share $ 0.12 $ 0.20 $ 0.07 $ 0.35 Weighted average number of shares used in computing basic net income per share 22,814,312 8,968,343 29,779,017 8,968,343 Diluted net income per share $ 0.11 $ 0.18 $ 0.07 $ 0.30 Weighted average number of shares used in computing diluted net income per share 24,734,519 10,139,704 31,743,307 10,663,649 KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands, except per share data) Nine Months Ended Three Months Ended September 30, September 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) GAAP net income as reported $ 2,660 $ 1,829 $ 2,143 $ 3,169 Non-GAAP adjustments Expenses recorded for share-based compensation Cost of revenues 197 59 85 20 Research and development 209 43 85 29 Selling and marketing 338 122 174 41 General and administrative 882 289 307 159 Acquisition related expenses Research and development 188 -- 62 -- General and administrative 550 -- -- -- Intangible assets amortization Cost of revenues 169 94 56 32 Compensation in relation to the IPO Separation payment to shareholder 750 -- -- -- IPO bonuses to employees 270 -- -- -- Total adjustments 3,553 607 769 281 Non-GAAP net income $ 6,213 $ 2,436 $ 2,912 $ 3,450 Non- GAAP diluted net income per share $ 0.25 $ 0.23 $ 0.09 $ 0.31 Weighted average number of shares used in computing diluted net income per share 25,111,776 10,431,433 32,096,739 11,125,629 KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) September 30, December 31, 2015 2014 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 37,377 $ 4,993 Short term bank deposits 11,000 -- Available for sale marketable securities 3,543 -- Trade receivables, net 17,319 9,770 Other accounts receivables and prepaid expenses 3,473 1,775 Inventory 14,729 11,986 Total current assets 87,441 28,524 LONG-TERM ASSETS: Available for sale long-term marketable securities 22,305 -- Severance pay fund 1,121 1,187 Property and equipment, net 4,097 3,660 Intangible assets, net 1,079 245 Deferred issuance costs -- 849 Other assets 292 249 Total long-term assets 28,894 6,190 Total assets $ 116,335 $ 34,714 LIABILITIES AND EQUITY CURRENT LIABILITIES: Trade payables $ 9,028 $ 5,901 Employees and payroll accruals 4,442 2,968 Deferred revenues and advances from customers 552 1,863 Other payables and accrued expenses 3,116 2,606 Total current liabilities 17,138 13,338 LONG-TERM LIABILITIES: Accrued severance pay 1,829 1,903 Deferred taxes 153 122 Total long-term liabilities 1,982 2,025 SHAREHOLDERS' EQUITY 97,215 19,351 Total liabilities and shareholders' equity $ 116,335 $ 34,714 KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Nine Months Ended Three Months Ended September 30, September 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) Cash flows from operating activities: Net income $ 2,660 $ 1,829 $ 2,143 $ 3,169 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 1,279 1,004 613 360 Share-based compensation 1,626 513 651 249 Increase in accrued interest and amortization of premium on marketable securities (43) -- (43) -- Increase (decrease) in accrued severance pay, net (8) 289 (50) 68 Decrease (increase) in trade receivables (7,726) (1,541) (6,235) 57 Decrease (increase) in other receivables and prepaid expenses (1,556) 55 (304) 645 Increase in inventories (3,361) (1,961) (1,802) (426) Changes in deferred taxes, net (76) -- (18) -- Increase (decrease) in other long term assets (49) 4 51 11 Increase (decrease) in trade payables 3,101 (2,029) (23) (1,606) Increase in employees and payroll accruals 1,486 302 799 26 Increase (decrease) in deferred revenues (1,281) 374 (1,006) (2,796) Increase (decrease) in other payables and accrued expenses 729 (720) 391 266 Interest on short-term bank deposit (30) (1) (30) (1) Gain from sale of property and equipments -- (5) -- -- Foreign currency translation loss on inter company balances with foreign subsidiaries 409 174 6 124 Net cash (used in) provided by operating activities (2,840) (1,713) (4,857) 146 Cash flows from investing activities: Purchase of property and equipment (1,052) (1,407) (279) (515) Cash paid in connection with acquisition (1,000) -- -- -- Proceeds from (investment in) bank deposits, net (11,000) 2,094 (11,000) 1,076 Proceeds from redemption or sale of marketable securities 1,500 -- 1,500 -- Proceeds from sale of property and equipment 8 6 8 -- Purchase of marketable securities (27,428) -- (27,428) -- Net cash provided by (used in) investing activities (38,972) 693 (37,199) 561 Cash flows from financing activities: Payment of issuance costs -- -- -- -- Proceeds from initial public offering, net (Payment of issuance costs) 74,180 (6) (1,052) (6) Exercise of employee stock options 60 6 60 -- Net cash provided by (used in) financing activities 74,240 -- (992) (6) Foreign currency translation adjustments on cash and cash equivalents (44) (36) 1 (31) Increase (decrease) in cash and cash equivalents 32,428 (1,020) (43,048) 701 Cash and cash equivalents at the beginning of the period 4,993 5,329 80,424 3,603 Cash and cash equivalents at the end of the period 37,377 4,273 37,377 4,273 (a)
Non-cash investing activities:Non-cash investing activities: Purchase of property and equipment on credit 145 52 145 52 Non-cash issuance expenses -- 56 -- 56 Inventory transferred to be used as property and equipment 592 69 306 69 Property and equipment transferred to be used as inventory 106 -- -- -- CONTACT: Investor Contact: Michael Callahan, ICR (203) 682-8311 Michael.Callahan@icrinc.com
-
Kornit Digital Reports Third Quarter 2015 Results
Highlights
- Third quarter 2015 sales of $22.2 million, an increase of 20.0% over the prior year
- Non-GAAP operating margin of 13.5%, or $3 million; GAAP operating margin of 10%, or $2.2 million
- Third quarter non-GAAP net income of $2.9 million, or $0.09 per diluted share; GAAP net income of $2.1 million or $0.07 per diluted share.
- Key customer places fourth order for Allegro R2R system
ROSH-HA'AYIN, Israel, Nov. 3, 2015 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (NASDAQ:KRNT), a leading provider of digital printing solutions for the global printed textile industry, today reported results for the third quarter ended September 30, 2015.
Sales for the third quarter of 2015 increased 20.0% year-over-year to $22.2 million, as a result of incremental revenue associated with the new Allegro roll-to-roll system, combined with continued growth in direct-to-garment (DTG) systems and ink.
Non-GAAP net income in the third quarter of 2015 was $2.9 million, or $0.09 per diluted share, compared to prior-year net income of $3.5 million. On a GAAP basis, the Company reported a net income of $2.1 million, or $0.07 per diluted share, compared to a net income of $3.2 million, in the third quarter of 2014.
Gabi Seligsohn, Kornit Digital's Chief Executive Officer commented, "During the third quarter, we continued to deepen our customer relationships and generate strong interest for our disruptive solutions, particularly of our recently introduced high throughput systems. To that point, throughout the quarter we hosted multiple demonstrations for our newly introduced Allegro and pre-beta Vulcan systems, which generated strong customer interest. For the Allegro, several customer interactions have led to system orders which will be installed during the fourth quarter. For Vulcan, we successfully executed on multiple pre-beta customer demos, all of which have led to firm demand for systems by those customers."
Seligsohn continued, "We are pleased with the growth in our business through the first nine-months of 29% vs. the same period last year, although third quarter growth came in at the lower end of our guided range due to the timing of system volume. As we have seen in the past, quarter-to-quarter growth is not linear at this stage in our evolution. Looking to the balance of the year, we anticipate revenue from our recently introduced high throughput systems and volume from several new customers to provide a tailwind as we close out 2015."
Results of Operations
In the third quarter of 2015, Kornit reported sales of $22.2 million, an increase of 20.0% compared with the prior-year level of $18.5 million. Higher sales were the result of contributions from all product categories including systems, ink and consumables, and services.
Non-GAAP gross margin as a percentage of sales in the third quarter of 2015 was 48.3%, compared with 50.6% in the prior-year period. Lower gross margin compared to the prior year resulted from two large customer orders of multiple high-end systems in the third quarter of 2014, which provided a favorable margin rate during the period. Excluding the impact of these orders, our gross margin run rate continued to expand as a result of the ongoing mix shift to higher throughput systems, incremental ink sales, and a stronger contribution from services. On a GAAP basis, gross margin was $10.6 million, or 47.6% of sales.
Non-GAAP operating expenses in the third quarter increased to $7.7 million, compared to $5.6 million in the prior year. The increase in total operating expenses is consistent with the previously stated growth strategy, as the Company continues to execute to its global infrastructure build out. As a percent of sales, non-GAAP operating expenses for the third quarter were 34.8% of sales, an increase from 30.4% of sales in the prior year. On a GAAP basis, operating expenses were $8.4 million, or 37.7% during the quarter.
Non-GAAP research and development expenses were $2.9 million, compared to $2.2 million in the prior-year. On a GAAP basis, research and development expenses were $3.1 million, or 13.8% of sales during the quarter.
Non-GAAP operating profit in the third quarter declined to $3.0 million, compared to $3.7 million in the prior year. As a percent of sales, non-GAAP operating profit for the third quarter was 13.5% of sales, a decrease from 20.2% of sales in the prior year.
Non-GAAP net income for the third quarter of 2015 were $2.9 million, or $0.09 per diluted share, compared with Non-GAAP net income of $3.5 million, or $0.31 in the prior year period.
On a GAAP basis, the Company reported net earnings of $2.1 million, or $0.07 per diluted share, compared to a net income of $3.2 million, or $0.3 per diluted share in the third quarter of 2014.
2015 Third Quarter Guidance
The Company will discuss the details of its guidance live during its earnings conference call, which will be available for replay via webcast at ir.kornit.com.
Conference Call Information
Kornit will host a conference call today at 5:00 p.m. ET, or 12:00 a.m. Israel time, to discuss the results, followed by a question and answer session for the investment community. A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-888-427-9411 or +1-719-325-2458. The toll-free Israeli number is 1-809-24 5906. The confirmation code is 8335584.
To listen to a telephonic replay of the conference call, dial toll-free 1-877-870-5176 or +1-858-384-5517 (international) and enter confirmation code 8335584. The telephonic replay will be available beginning at 8:00 p.m. ET on Tuesday, November 3, 2015, and will last through 11:59 p.m. ET November 17, 2015. The call will also be available for replay via the webcast link on Kornit's Investor Relations website.
Forward Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as "will," "expects," "anticipates," "continue," "believes," "should," "intended," "guidance," "preliminary," "future," "planned," or other words. These forward-looking statements include, but are not limited to, statements relating to the company's objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events or developments that the company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: development of the market for digital textile printing, availability of alternative ink, competition, sales concentration, changes to our relationships with suppliers, our success in developing, introducing and selling new or improved products, our success in marketing, our success in effectively increasing our field presence and those factors referred to under "Risk Factors" in the company's final prospectus filed with the U.S. Securities and Exchange Commission. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude acquisition related expenses, share-based compensation expenses, amortization of acquired intangible assets and compensation related to the IPO. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures 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. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
About Kornit
Kornit develops, designs and markets innovative digital printing solutions for the global printed textile industry. Kornit's solution includes its proprietary digital printing systems, ink and other consumables, associated software and value added services. Kornit's vision is to revolutionize the textile industry by facilitating the transition from analog processes that have not evolved for decades to digital methods of production that address contemporary supply, demand and environmental dynamics. Kornit is a global company headquartered in Rosh-Ha`Ayin, Israel, with U.S. offices in Mequon, Wisconsin and additional sales, support and marketing offices in Germany and Hong Kong.
KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands, except share and per share data) Nine Months Ended Three Months Ended September 30, September 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) Revenues $ 61,077 $ 47,495 $ 22,201 $ 18,494 Cost of revenues 32,547 26,855 11,624 9,196 Gross profit 28,530 20,640 10,577 9,298 Operating expenses: Research and development 8,573 6,851 3,067 2,263 Selling and marketing 9,175 7,569 3,264 2,195 General and administrative 7,213 3,716 2,028 1,393 Total operating expenses 24,961 18,136 8,359 5,851 Operating income 3,569 2,504 2,218 3,447 Financial income (expenses), net (170) (199) 279 (105) Income before taxes on income 3,399 2,305 2,497 3,342 Taxes on income 739 476 354 173 Net income 2,660 1,829 2,143 3,169 Basic net income per share $ 0.12 $ 0.20 $ 0.07 $ 0.35 Weighted average number of shares used in computing basic net income per share 22,814,312 8,968,343 29,779,017 8,968,343 Diluted net income per share $ 0.11 $ 0.18 $ 0.07 $ 0.30 Weighted average number of shares used in computing diluted net income per share 24,734,519 10,139,704 31,743,307 10,663,649 KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF INCOME (U.S. dollars in thousands, except per share data) Nine Months Ended Three Months Ended September 30, September 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) GAAP net income as reported $ 2,660 $ 1,829 $ 2,143 $ 3,169 Non-GAAP adjustments Expenses recorded for share-based compensation Cost of revenues 197 59 85 20 Research and development 209 43 85 29 Selling and marketing 338 122 174 41 General and administrative 882 289 307 159 Acquisition related expenses Research and development 188 -- 62 -- General and administrative 550 -- -- -- Intangible assets amortization Cost of revenues 169 94 56 32 Compensation in relation to the IPO Separation payment to shareholder 750 -- -- -- IPO bonuses to employees 270 -- -- -- Total adjustments 3,553 607 769 281 Non-GAAP net income $ 6,213 $ 2,436 $ 2,912 $ 3,450 Non- GAAP diluted net income per share $ 0.25 $ 0.23 $ 0.09 $ 0.31 Weighted average number of shares used in computing diluted net income per share 25,111,776 10,431,433 32,096,739 11,125,629 KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (U.S. dollars in thousands) September 30, December 31, 2015 2014 (Unaudited) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 37,377 $ 4,993 Short term bank deposits 11,000 -- Available for sale marketable securities 3,543 -- Trade receivables, net 17,319 9,770 Other accounts receivables and prepaid expenses 3,473 1,775 Inventory 14,729 11,986 Total current assets 87,441 28,524 LONG-TERM ASSETS: Available for sale long-term marketable securities 22,305 -- Severance pay fund 1,121 1,187 Property and equipment, net 4,097 3,660 Intangible assets, net 1,079 245 Deferred issuance costs -- 849 Other assets 292 249 Total long-term assets 28,894 6,190 Total assets $ 116,335 $ 34,714 LIABILITIES AND EQUITY CURRENT LIABILITIES: Trade payables $ 9,028 $ 5,901 Employees and payroll accruals 4,442 2,968 Deferred revenues and advances from customers 552 1,863 Other payables and accrued expenses 3,116 2,606 Total current liabilities 17,138 13,338 LONG-TERM LIABILITIES: Accrued severance pay 1,829 1,903 Deferred taxes 153 122 Total long-term liabilities 1,982 2,025 SHAREHOLDERS' EQUITY 97,215 19,351 Total liabilities and shareholders' equity $ 116,335 $ 34,714 KORNIT DIGITAL LTD. AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) Nine Months Ended Three Months Ended September 30, September 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) Cash flows from operating activities: Net income $ 2,660 $ 1,829 $ 2,143 $ 3,169 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 1,279 1,004 613 360 Share-based compensation 1,626 513 651 249 Increase in accrued interest and amortization of premium on marketable securities (43) -- (43) -- Increase (decrease) in accrued severance pay, net (8) 289 (50) 68 Decrease (increase) in trade receivables (7,726) (1,541) (6,235) 57 Decrease (increase) in other receivables and prepaid expenses (1,556) 55 (304) 645 Increase in inventories (3,361) (1,961) (1,802) (426) Changes in deferred taxes, net (76) -- (18) -- Increase (decrease) in other long term assets (49) 4 51 11 Increase (decrease) in trade payables 3,101 (2,029) (23) (1,606) Increase in employees and payroll accruals 1,486 302 799 26 Increase (decrease) in deferred revenues (1,281) 374 (1,006) (2,796) Increase (decrease) in other payables and accrued expenses 729 (720) 391 266 Interest on short-term bank deposit (30) (1) (30) (1) Gain from sale of property and equipments -- (5) -- -- Foreign currency translation loss on inter company balances with foreign subsidiaries 409 174 6 124 Net cash (used in) provided by operating activities (2,840) (1,713) (4,857) 146 Cash flows from investing activities: Purchase of property and equipment (1,052) (1,407) (279) (515) Cash paid in connection with acquisition (1,000) -- -- -- Proceeds from (investment in) bank deposits, net (11,000) 2,094 (11,000) 1,076 Proceeds from redemption or sale of marketable securities 1,500 -- 1,500 -- Proceeds from sale of property and equipment 8 6 8 -- Purchase of marketable securities (27,428) -- (27,428) -- Net cash provided by (used in) investing activities (38,972) 693 (37,199) 561 Cash flows from financing activities: Payment of issuance costs -- -- -- -- Proceeds from initial public offering, net (Payment of issuance costs) 74,180 (6) (1,052) (6) Exercise of employee stock options 60 6 60 -- Net cash provided by (used in) financing activities 74,240 -- (992) (6) Foreign currency translation adjustments on cash and cash equivalents (44) (36) 1 (31) Increase (decrease) in cash and cash equivalents 32,428 (1,020) (43,048) 701 Cash and cash equivalents at the beginning of the period 4,993 5,329 80,424 3,603 Cash and cash equivalents at the end of the period 37,377 4,273 37,377 4,273 (a)
Non-cash investing activities:Non-cash investing activities: Purchase of property and equipment on credit 145 52 145 52 Non-cash issuance expenses -- 56 -- 56 Inventory transferred to be used as property and equipment 592 69 306 69 Property and equipment transferred to be used as inventory 106 -- -- -- CONTACT: Investor Contact: Michael Callahan, ICR (203) 682-8311 Michael.Callahan@icrinc.com
-
Epiq Systems Reports Third Quarter 2015 Results and Updates Fiscal Year 2015 Outlook
KANSAS CITY, Kan., Nov. 3, 2015 (GLOBE NEWSWIRE) -- Epiq Systems, Inc. (NASDAQ:EPIQ), a leading global provider of integrated technology solutions for the legal profession, today announced results for its third quarter ended September 30, 2015 and updated its full year financial outlook for 2015. Epiq will hold a conference call today at 4:30 pm ET to review its results (details below).
Summary Results (Unaudited) Three months ended Sept. 30 Nine months ended Sept. 30 (In millions, except share count and per share data) 2015 2014 2015 2014 Segment Operating Revenue Technology $91.8 $69.1 $255.0 $228.8 Bankruptcy & Settlement Administration $39.5 $34.8 $114.6 $106.8 Total Operating Revenue $131.3 $103.9 $369.6 $335.6 Net Income (Loss)(1) ($19.2) $5.0 ($20.7) ($0.7) Net Income (Loss) Per Diluted Share(1) ($0.52) $0.14 ($0.57) ($0.02) Adjusted EBITDA(2) $29.7 $23.7 $75.9 $71.8 Adjusted Net Income(2) $9.0 $6.5 $21.4 $20.7 Adjusted Earnings Per Diluted Share(2) $0.24 $0.18 $0.58 $0.59 Adjusted Diluted Shares (in thousands) 37,055 36,288 36,995 35,339 Net Cash from Operating Activities $18.9 $18.6 $46.8 $37.4 (1) Includes impact of a GAAP net non-cash tax charge of $19.0 million related to establishing a full valuation allowance against U.S. deferred tax assets. The impact of this charge to net loss per diluted share is $0.52 for the three and nine months ended September 30, 2015. The valuation allowance is included in "Provision for (benefit from) income taxes" in the Condensed Consolidated Statements of Operations. (2) Adjusted net income, adjusted EBITDA and adjusted earnings per share are all non-GAAP financial measures. See the accompanying tables herein for information regarding these measures and reconciliation to the most comparable GAAP measure. Q3 Financial Overview
Third quarter 2015 operating revenue increased 26%, or 16% excluding operating revenue from recently acquired Iris Data Services, compared to the third quarter 2014 driven by both of Epiq's operating segments. Technology segment operating revenues increased 33%, or 17% excluding operating revenue from Iris, compared to the prior year quarter while Bankruptcy and Settlement Administration operating revenue increased 14%. Consolidated adjusted EBITDA increased 25% from $23.7 million in the third quarter 2014 and rose 20% from $24.7 million in Q2 2015 and 39% from $21.4 million in Q1 2015. Quarterly adjusted EPS of $0.24 per diluted share increased 33% compared to the prior year quarter and rose 33% from $0.18 in Q2 2015 and 60% from $0.15 in Q1 2015.
Recent Company Highlights
- Launch of a full-service eDiscovery office in Frankfurt, including managed services through Iris Data Services, a comprehensive document review center, and data processing and hosting in a world-class data center.
- Retained as call center provider to support the U.S. Office of Personnel Management's (OPM) response to cybersecurity incidents earlier this year impacting 21.5 million individuals.
- Recently elected independent directors, Kevin L. Robert and Douglas M. Gaston, have been newly appointed as chairs of the Audit Committee and Compensation Committee, respectively, and the Board of Directors is exploring the addition of new independent directors.
- Declared dividend of $0.09 per share, Epiq's 22nd consecutive quarterly dividend, payable November 16, 2015 to shareholders of record at the close of business October 15, 2015.
"Epiq delivered a strong quarter of growth in operating revenue, adjusted EBITDA and adjusted EPS reflecting both organic growth and the first full quarter of Iris Data Services revenue as we finalize the integration of that organization into Epiq's global footprint. We see Iris's leading managed services offering being a key part of our eDiscovery growth strategy and market differentiation," said Tom W. Olofson, chairman and CEO, Epiq Systems.
"Epiq continues to be a preferred strategic partner for complex legal matters. The pace of data breaches, regulatory investigations and a healthy environment for corporate M&A provide favorable indicators of global demand for our services. While Epiq continues to gain market share and achieve revenue growth, we are very focused on improving margins and profitability in 2015. We have identified and are implementing a range of initiatives to better leverage our global resources, optimize efficiency and improve our cost structure."
Segment Review
Technology Segment (eDiscovery) Three months ended Sept. 30 Nine months ended Sept. 30 (In millions)(Unaudited) 2015 2014 2015 2014 Operating Revenue $91.8 $69.1 $255.0 $228.8 Adjusted EBITDA $26.3 $20.5 $68.6 $63.3 Operating Revenue Mix By Service Type Electronically Stored Information (ESI) 62% 63% 60% 57% Document Review 38% 37% 40% 43% By Region North America 78% 74% 78% 80% Europe and Asia 22% 26% 22% 20% Epiq's Technology segment provides integrated technology solutions for electronic discovery (eDiscovery), including global electronically stored information (ESI, which includes Iris eDiscovery managed services) and global document review. Revenue growth within Technology (excluding Iris) was 17% for the third quarter and 33% for the segment including Iris. Operating revenue from international eDiscovery increased by $2.4 million compared to the prior year quarter reflecting growth in both document review and ESI service revenues from new and existing clients. On a pro forma basis and excluding Iris Data Services, international eDiscovery represented 25% of Technology segment operating revenue compared to 26% in the prior year quarter. While pricing pressure in North American ESI services continued to impact operating margins, Technology segment adjusted EBITDA increased 28% compared to the third quarter 2014 primarily due to increased demand for ESI and document review services worldwide in addition to initiatives to drive cost control and increased efficiency.
Bankruptcy and Settlement Administration Segment Three months ended Sept. 30 Nine months ended Sept. 30 (In millions)(Unaudited) 2015 2014 2015 2014 Operating Revenue $39.5 $34.8 $114.6 $106.8 Adjusted EBITDA $13.9 $12.7 $36.1 $38.5 Bankruptcy and Settlement Administration segment third quarter operating revenue increased 14% compared to the prior year period, driven primarily by 29% growth in Settlement Administration. A low level of Chapter 11 bankruptcy filings persisted in the third quarter, a trend that is expected to continue for the remainder of 2015. Epiq continues to secure non-traditional work and ongoing projects from current clients to supplement operating revenue in this segment. Segment Adjusted EBITDA increased 9% from the prior year quarter due to increased revenue from Settlement Administration services and activity from existing Bankruptcy engagements and non-traditional clients.
GAAP Non-Cash Tax Charge
For the third quarter 2015, Epiq recorded a net non-cash tax charge of $19 million as a valuation allowance against deferred tax assets related to its U.S. operations. The impact of this charge to net loss per diluted share is $0.52 for the three and nine months ended September 30, 2015. Third quarter 2015 tax expense was $22 million, which includes the discrete impact of establishing a full valuation allowance against U.S net deferred tax assets. The establishment of a valuation allowance does not impact cash flows, nor does Epiq expect it to preclude the use of loss carryforwards or other deferred tax assets in the future, including the expected realization of approximately $23 million related to the April 2015 acquisition of Iris Data Services.
2015 Financial Guidance Update
Based on Epiq's current assessment, the Company is updating full year 2015 operating revenue to range between $495 million and $505 million, adjusted EBITDA between $105 million to $108 million and adjusted EPS between $0.82 and $0.85.
Management will provide a more detailed discussion of its 2015 outlook and a general 2016 outlook during the earnings conference call today at 4:30 p.m. ET (3:30 p.m. CT).
CONFERENCE CALL INFORMATION Call Dial in: (877) 303-6311 or (631) 813-4730 Webcast URL: http://www.epiqsystems.com/investors/corporate-overview/ Audio replay: (855) 859-2056, ID# 59972387, available through Nov. 10, 2015 About Epiq Systems
Epiq Systems is a leading global provider of integrated technology solutions for the legal profession, including electronic discovery, bankruptcy, and class action and mass tort administration. We offer full-service capabilities to support litigation, investigations, financial transactions, regulatory compliance and other legal matters. Our innovative technology and services, deep subject-matter expertise and global presence spanning 45 countries served from 20 locations allow us to provide secure, reliable solutions to the worldwide legal community. Visit us at www.epiqsystems.com.
Use of Non-GAAP Financial Measures
This press release includes the following non-GAAP financial measures: (i) adjusted net income (net income adjusted for amortization of acquisition intangibles, share-based compensation, intangible asset impairment expense, acquisition and related expense, one-time technology expense, loan fee amortization, litigation expense, timing of recognition of expense, reorganization expense, gain or loss on disposition of assets, strategic review expense, and the effect of tax adjustments that are outside of Epiq Systems' anticipated effective tax rate, all net of tax), (ii) adjusted earnings per share, calculated as adjusted net income on a fully diluted per share basis, and (iii) adjusted EBITDA (net income adjusted for depreciation and amortization, share-based compensation, intangible asset impairment expense, acquisition and related expense, one-time technology expense, net expense related to financing, litigation expense, timing of recognition of expense, reorganization expense, gain or loss on disposition of assets, strategic review expense, and provision for (benefit from) income taxes). Income taxes typically represent a complex element of a company's income statement and effective tax rates can vary widely between different periods. Epiq Systems uses an approximate statutory tax rate of 40% to reflect income tax effects in the presentation of its adjusted net income and adjusted net income per share. Utilization of an approximate statutory tax rate for presentation of the non-GAAP measures is done to allow a consistent basis for investors to understand financial performance of the company across historical periods.
Although Epiq Systems reports its results using GAAP, Epiq Systems also uses non-GAAP financial measures when management believes those measures provide useful information for its shareholders. These non-GAAP financial measures are intended to supplement the GAAP financial information by providing additional insight regarding results of operations and to allow a comparison with other companies, many of whom use similar non-GAAP financial measures to supplement their GAAP results. Certain items are excluded from these non-GAAP financial measures to provide additional comparability measures from period to period. These non-GAAP financial measures will not be defined in the same manner by all companies and may not be comparable to other companies. These non-GAAP financial measures are reconciled in the accompanying tables to the most directly comparable measures as reported in accordance with GAAP, and should be viewed in addition to, and not in lieu of, such comparable financial measures.
Forward-looking and Cautionary Statements
This press release includes forward-looking statements. These forward-looking statements include, but are not limited to any projection or expectation of earnings, revenue or other financial items; the plans, strategies and objectives of management for future operations; factors that may affect our operating results; new products or services; the demand for our products and services; our ability to consummate acquisitions, successfully integrate them into our operations and achieve expected synergies; future capital expenditures; effects of current or future economic conditions or performance; industry trends and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. These forward-looking statements are based on our current expectations. In this press release, we make statements that plan for or anticipate the future. Forward-looking statements may be identified by words or phrases such as "believe," "expect," "anticipate," "should," "planned," "may," "estimated," "goal," "objective," "seeks," and "potential" and variations of these words and similar expressions or negatives of these words. Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, provide a "safe harbor" for forward-looking statements. Because forward-looking statements involve future risks and uncertainties, listed below are a variety of factors that could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in our forward-looking statements. These factors include (1) failure to keep pace with technological changes and significant changes in the competitive environment, (2) risks associated with cyber-attacks, interruptions or delays in services at data centers, (3) risks of errors or failures of software or services, (4) interruptions or delays in service at data centers we utilize for delivery of our services, (5) undetected errors in, and failure of operation of, software products releases, (6) our reliance on third-party hardware and software, (7) failure of our financial, operating and information systems to operate as intended, (8) our inability to attract, develop and retain executives and other qualified employees, (9) risks associated with the integration of acquisitions into our existing business operations, (10) risks associated with our international operations, (11) lack of protection of our intellectual property through patents and formal copyright registration, (12) risks of litigation against us for infringement of proprietary rights, (13) material changes in the number of bankruptcy filings, class action filings or mass tort actions each year, or changes in government legislation or court rules affecting these filings, (14) any material non-cash write-downs based on impairment of our goodwill, (15) fluctuations in our quarterly results that could cause fluctuations in the market price of our common stock, (16) our inability to maintain compliance with debt covenant ratios, (17) risks associated with indebtedness and interest rate fluctuations, (18) risks associated with provisions of our articles of incorporation that prevent a takeover of Epiq, (19) overall strength and stability of general economic conditions, both in the United States and in the global markets, (20) the impact of our current review process of strategic alternatives, and (21) other risks detailed from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. In addition, there may be other factors not included in our Securities and Exchange Commission filings that may cause actual results to differ materially from any forward-looking statements. We undertake no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.
EPIQ SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 REVENUE: Operating revenue $131,325 $103,955 $369,637 $335,626 Reimbursable expenses 11,210 7,051 29,936 23,707 Total Revenue 142,535 111,006 399,573 359,333 OPERATING EXPENSE: Direct cost of operating revenue (exclusive of depreciation and amortization shown separately below) 64,420 48,193 183,350 163,361 Reimbursable expenses 10,712 6,827 28,506 23,064 Selling, general and administrative expense 42,267 35,332 126,104 125,870 Depreciation and software and leasehold amortization 9,787 9,693 28,050 27,648 Amortization of identifiable intangible assets 5,831 3,184 13,326 9,470 Impairment of goodwill and identifiable intangible assets -- -- 1,162 -- Fair value adjustment to contingent consideration 19 -- (1,182) 1,142 Other operating expense, net 1,308 215 4,306 792 Total Operating Expense 134,344 103,444 383,622 351,347 OPERATING INCOME 8,191 7,562 15,951 7,986 INTEREST EXPENSE (INCOME): Interest expense 5,374 3,945 15,083 12,674 Interest income (17) (4) (22) (17) Net Interest Expense 5,357 3,941 15,061 12,657 INCOME (LOSS) BEFORE INCOME TAXES 2,834 3,621 890 (4,671) PROVISION FOR (BENEFIT FROM) INCOME TAXES 22,014 (1,389) 21,578 (3,964) NET INCOME (LOSS) ($19,180) $5,010 ($20,688) ($707) NET INCOME (LOSS) PER COMMON SHARE INFORMATION: Basic ($0.52) $0.14 ($0.57) ($0.02) Diluted ($0.52) $0.14 ($0.57) ($0.02) WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: Basic 36,706 35,780 36,509 35,339 Diluted 36,706 36,288 36,509 35,339 Cash dividends declared per common share $0.09 $0.09 $0.27 $0.27 EPIQ SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) September 30, December 31, 2015 2014 ASSETS: Cash and cash equivalents $12,616 $54,226 Trade accounts receivable, net 146,260 117,854 Property and equipment, net 80,493 70,579 Internally developed software, net 15,742 14,713 Goodwill 478,773 404,187 Other intangibles, net 49,964 29,605 Other 42,658 47,088 Total Assets $826,506 $738,252 LIABILITIES: Current liabilities, excluding debt $59,469 $53,395 Indebtedness 398,925 313,481 Other non-current liabilities 67,754 46,439 Total Equity 300,358 324,937 Total Liabilities and Equity $826,506 $738,252 EPIQ SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Nine Months Ended September 30, 2015 2014 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss ($20,688) ($707) Non-cash adjustments to loss: Depreciation and amortization 41,376 37,118 Other, net 37,357 7,445 Changes in operating assets and liabilities, net Trade accounts receivable (13,413) 11,469 Other, net 2,164 (17,961) Net cash provided by operating activities 46,796 37,364 CASH FLOWS FROM INVESTING ACTIVITIES: Property and equipment; and internally developed software (22,449) (28,815) Cash paid for business acquisitions, net of cash acquired (124,550) (302) Other 110 597 Net cash used in investing activities (146,889) (28,520) CASH FLOWS FROM FINANCING ACTIVITIES: Net change in indebtedness 71,042 (8,942) Common stock repurchases (4,151) (3,982) Cash dividends paid (9,929) (9,544) Payment of acquisition-related liabilities (92) (4,963) Debt issuance costs (1,681) (837) Other, net 3,760 11,356 Net cash provided by (used in) financing activities 58,949 (16,912) Effect of exchange rate changes on cash (466) (137) NET DECREASE IN CASH AND CASH EQUIVALENTS ($41,610) ($8,205) EPIQ SYSTEMS, INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (Unaudited) (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 NET INCOME (LOSS) ($19,180) $5,010 ($20,688) ($707) Plus: Depreciation and amortization expense 15,619 12,877 41,375 37,118 Share-based compensation expense 3,557 703 10,483 4,979 Intangible asset impairment expense -- -- 1,162 -- Acquisition and related expense (1) 1,325 454 3,240 2,254 One-time technology expense (2) -- 639 -- 4,284 Expense related to financing, net (3) 5,331 3,788 14,825 12,425 Litigation (recovery) expense, net (4) 29 12 (475) 1,581 Timing of recognition of expense (5) -- -- (290) -- Reorganization expense (6) 479 1,230 2,451 13,152 (Gain) Loss on disposition of assets -- (175) (13) 176 Strategic review expense 530 527 2,209 527 Provision for (benefit from) income taxes 22,014 (1,389) 21,578 (3,964) 48,884 18,666 96,545 72,532 ADJUSTED EBITDA $29,704 $23,676 $75,857 $71,825 (1) Acquisition and related expense includes one-time costs associated with acquisitions and fair value adjustments to contingent consideration. (2) One-time technology related costs associated with security and consolidation of data centers from acquisitions. (3) Expense related to financing is net of interest income. (4) Litigation expense and recovery related to significant one-time matters. (5) Adjustment to match timing of expenses to be consistent with timing of GAAP revenue and recoveries for settlement administration matters. (6) Expenses primarily related to one-time charges for post-employment benefits. EPIQ SYSTEMS, INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (Unaudited) (In thousands, except per share data) Three months ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 NET INCOME (LOSS) ($19,180) $5,010 ($20,688) ($707) Plus (net of tax) (1) : Amortization of acquisition intangibles 3,499 1,910 7,996 5,682 Share-based compensation 2,134 421 6,290 2,987 Intangible asset impairment expense -- -- 697 -- Acquisition and related expense (2) 795 304 1,970 1,453 One-time technology expense (3) -- 383 -- 2,570 Loan fee amortization and write-off 279 217 1,272 1,117 Litigation (recovery) expense, net (4) 17 150 (7) 1,375 Timing of recognition of expense (5) -- -- (174) -- Reorganization expense (6) 287 738 1,470 7,891 (Gain) Loss on disposition of assets -- (104) (8) 106 Strategic review expense 318 316 1,325 316 Effective tax rate adjustment (7) 20,882 (2,837) 21,222 (2,095) 28,211 1,498 42,053 21,402 ADJUSTED NET INCOME $9,031 $6,508 $21,365 $20,695 ADJUSTED EARNINGS PER SHARE – DILUTED $0.24 $0.18 $0.58 $0.59 (1) Individual adjustments are calculated using a tax rate of 40%. (2) Acquisition and related expense includes one-time costs associated with acquisitions and fair value adjustments to contingent consideration. (3) One-time technology related costs associated with security and consolidation of data centers from acquisitions. (4) Litigation expense or recovery related to significant one-time matters. (5) Adjustment to match timing of expenses to be consistent with timing of GAAP revenue and recoveries for settlement administration matters. (6) Expenses primarily related to one-time charges for post-employment benefits. (7) The effective tax rate adjustment reflects a non-GAAP provision for income taxes at a tax rate of 40%. EPIQ SYSTEMS, INC. OPERATING REVENUE (Unaudited) (In thousands) Three months ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Technology $91,847 $69,139 $255,029 $228,831 Bankruptcy 21,047 20,538 58,758 61,793 Settlement Administration 18,431 14,278 55,850 45,002 Total Bankruptcy and Settlement Administration 39,478 34,816 114,608 106,795 TOTAL OPERATING REVENUE $131,325 $103,955 $369,637 $335,626 EPIQ SYSTEMS, INC. ADJUSTED EBITDA (Unaudited) (In thousands) Three months ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Technology $26,308 $20,487 $68,559 $63,322 Bankruptcy and Settlement Administration 13,938 12,675 36,119 38,529 Unallocated Corporate (1) (10,542) (9,486) (28,821) (30,026) TOTAL ADJUSTED EBITDA $29,704 $23,676 $75,857 $71,825 (1) Unallocated corporate adjusted EBITDA excludes expenses related to share-based compensation, impairment expense related to acquired intangible assets, acquisition and related expense, including fair value adjustments to contingent consideration, one-time technology expense, non-routine litigation expense or recovery, timing of recognition of expense, gain or loss on disposition of assets, strategic review expense, and one-time reorganization expense. EPIQ SYSTEMS, INC. CALCULATION OF NET LOSS PER SHARE AND DILUTED ADJUSTED EARNINGS PER SHARE (Unaudited) (In thousands, except per share data) Three months ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 NET INCOME (LOSS) ($19,180) $5,010 ($20,688) ($707) BASIC WEIGHTED AVERAGE SHARES 36,706 35,780 36,509 35,339 Adjustment to reflect share-based awards -- 508 -- -- DILUTED WEIGHTED AVERAGE SHARES 36,706 36,288 36,509 35,339 NET INCOME (LOSS) PER SHARE – DILUTED ($0.52) $0.14 ($0.57) ($0.02) ADJUSTED NET INCOME $9,031 $6,508 $21,365 $20,695 BASIC WEIGHTED AVERAGE SHARES 36,706 35,780 36,509 35,339 Adjustment to reflect share-based awards 349 508 486 -- DILUTED WEIGHTED AVERAGE SHARES(1) 37,055 36,288 36,995 35,339 ADJUSTED EARNINGS PER SHARE - DILUTED $0.24 $0.18 $0.58 $0.59 (1) Diluted weighted average shares outstanding for the three and nine months ended September 30, 2015 and 2014 include the dilutive impact of share-based awards due to adjusted net income reported for the respective periods. CONTACT: Investor Contacts Kelly Bailey Epiq Systems 913-621-9500 ir@epiqsystems.com Chris Eddy Catalyst Global 212-924-9800 epiq@catalyst-ir.com
- Launch of a full-service eDiscovery office in Frankfurt, including managed services through Iris Data Services, a comprehensive document review center, and data processing and hosting in a world-class data center.
