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Acme Packet Reports Strong Results for Fourth Quarter of 2008

^{Published on 2009-02-05 13:31:17, Last Modified on 2009-02-05 13:35:02 - Market Wire}
 

BURLINGTON, Mass.--([ BUSINESS WIRE ])--Acme Packet, Inc. (NASDAQ: APKT):

• Company Posts Revenues of $30.6 Million, an Increase of 8% Sequentially from Third Quarter of 2008
• Company Posts Non-GAAP¹ EPS of $0.09; Issues Business Outlook for 2009

Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, today announced results for the fourth quarter and year ended December 31, 2008. The Company also issued its business outlook for 2009. Summary financial results for the fourth quarter of 2008 are as follows:

• Revenues of $30.6 million, an increase of 8% sequentially from third quarter of 2008;
• Non-GAAP¹ EPS of $0.09, compared to $0.05 in the third quarter of 2008;
• Cash flow from operations of $7.0 million, compared to $2.5 million in the third quarter of 2008.

Results for the Fourth Quarter of 2008

Total revenues for the fourth quarter of 2008 were $30.6 million, compared to $31.4 million in the fourth quarter of last year and $28.4 million in the third quarter of 2008. Net income for the fourth quarter of 2008 was $3.7 million, or $0.06 per share on a diluted basis, compared to $5.2 million, or $0.08 per share on a diluted basis, in the same period last year, and $2.0 million, or $0.03 per share on a diluted basis, in the third quarter of 2008. Net income on a non-GAAP¹ basis for the fourth quarter of 2008 was $5.6 million, or $0.09 per share on a diluted basis, compared to $6.5 million, or $0.10 per share on a diluted basis, in the same period last year, and $3.4 million, or $0.05 per share on a diluted basis, in the third quarter of 2008. Non-GAAP net income¹ differs from GAAP net income as it excludes stock-based compensation expense, net of tax, of approximately $1.9 million, or $0.03 per share, in the fourth quarter of 2008; approximately $1.3 million, or $0.02 per share, in the fourth quarter of 2007; and approximately $1.3 million, or $0.02 per share, in the third quarter of 2008. A reconciliation of GAAP to non-GAAP¹ results is included at the end of this press release.

Results for 2008

Total revenues for 2008 were $116.4 million, an increase of 3% compared to $113.1 million in 2007. Net income was $11.6 million, or $0.18 per share on a diluted basis, compared to $19.6 million, or $0.30 per share on a diluted basis, in 2007. Net income on a non-GAAP basis¹ was $17.1 million, or $0.27 per share on a diluted basis, compared to $23.9 million, or $0.36 per share on a diluted basis, in 2007. Non-GAAP net income¹ differs from GAAP net income as it excludes stock-based compensation expense, net of tax, of approximately $5.5 million, or $0.09 per share, in 2008, and approximately $4.3 million, or $0.06 per share, in 2007. A reconciliation of GAAP to non-GAAP¹ results is included at the end of this press release.

Company Introduces Business Outlook for 2009

The Company expects total revenues in 2009 to range between $120.0 million to $125.0 million. The Company expects non-GAAP¹ net income in 2009 to range between $0.22 and $0.26 per share on a diluted basis and GAAP net income in 2009 to range between $0.12 and $0.16 per share on a diluted basis. Non-GAAP¹ net income is expected to differ from GAAP net income in 2009 as it is expected to exclude estimated stock-based compensation expense of approximately $6.3 million, or $0.10 per share. The Company currently expects other income, net (primarily interest income), to be approximately $1.0 million in 2009. The Company's business outlook for 2009 assumes weighted average shares outstanding of approximately 61 million and a non-GAAP¹ effective tax rate of 37%.

Company Announces Update on Common Stock Repurchase Program

The Company previously announced that its Board of Directors has authorized a $55.0 million common stock repurchase program. During the fourth quarter of 2008, the Company repurchased approximately 1.9 million shares of its common stock for an aggregate purchase price of $8.2 million. Since announcing the common stock repurchase program in February 2008 and through December 31, 2008, the Company repurchased approximately 6.8 million shares of its common stock for an aggregate purchase price of $37.5 million. The Company did not repurchase any additional shares from the end of 2008 through and including February 5, 2009. The common stock repurchase program will remain effective through February 28, 2009 unless terminated earlier by the Board of Directors.

Company to Host Live Conference Call and Webcast

The Company's management team will host a live conference call and webcast at 5:00 p.m. eastern time today to discuss the financial results as well as management's outlook for the business. The conference call may be accessed in the United States by dialing (800) 230-1096 and using access code "APKT". The conference call may be accessed outside of the United States by dialing (612) 332-0226 and using access code "APKT". The conference call will be simultaneously webcast on the Company's investor relations website, which can be accessed at [ www.ir.acmepacket.com ]. A replay of the conference call will be available approximately two hours after the call by dialing (800) 475-6701 and using access code 979267 or by accessing the webcast replay on the Company's investor relations website.

About Acme Packet, Inc.

Acme Packet, Inc. (NASDAQ: APKT), the leader in session border control solutions, enables the delivery of trusted, first-class interactive communications--voice, video and multimedia sessions--and data services across IP network borders. Our Net-Net family of session border controllers, multiservice security gateways and session routing proxies supports multiple applications in service provider, large enterprise and contact center networks--from VoIP trunking to hosted enterprise and residential services to fixed-mobile convergence. They satisfy critical security, service assurance and regulatory requirements in wireline, cable and wireless networks; and support multiple protocols--SIP, H.323, MGCP/NCS and H.248--and multiple border points--interconnect, access and data center. Our products have been selected by more than 635 customers in 92 countries, including 29 of the top 30, and 89 of the top 100 service providers in the world. For more information, contact us at +1 781.328.4400, or visit [ www.acmepacket.com ].

Acme Packet, Inc. Safe Harbor Statement

Statements contained herein that are not historical fact (including those in the section "Company Introduces Business Outlook for 2009") may be 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. Such forward-looking statements may relate, among other things, to expected financial and operating results and to future business prospects and market conditions. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those anticipated. These include, but are not limited to: difficulties expanding its customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; poor product sales; long sales cycles; difficulty developing new products; difficulty in relationships with vendors and partners; higher risk in international operations; difficulty managing rapid growth; difficulty managing its financial performance; its ability to hire and retain employees and appropriately staff its operations; the spending of the proceeds of its capital raising activities; its cash needs; and the impact of new accounting pronouncements and increased competition. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in the Company's recent filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in such filings.

¹ The Company uses the financial measures "non-GAAP net income" and "non-GAAP net income per share" to supplement its consolidated financial statements, which are presented in accordance with accounting principles generally accepted in the United States ("GAAP"). The presentation of non-GAAP net income and non-GAAP net income per share is not meant to be a substitute for "net income" or "net income per share", presented in accordance with GAAP, but rather should be evaluated in conjunction with net income and net income per share. The Company's management believes that the presentation of non-GAAP net income and non-GAAP net income per share provides useful information to investors because this financial measure excludes stock-based compensation expense which is a non-cash charge. Management does not consider this item to be part of the Company's on-going operating activities or meaningful in evaluating the Company's past financial performance or future prospects. Management believes that excluding stock-based compensation expense is useful to investors because it is more representative of ongoing costs and therefore more comparable to historical operations. Non-GAAP net income and non-GAAP net income per share are primary financial indicators that the Company's management uses to evaluate the Company's financial results and forecast anticipated financial results for future periods. Management also uses these non-GAAP figures to make financial and operational decisions as these numbers exclude non-operational activities. These non-GAAP measures should not be considered measures of the Company's liquidity. The Company's definition of "non-GAAP net income" and/or "non-GAAP net income per share" may differ from similar measures used by other companies and may differ from period to period. Subject to the review and approval of the audit committee of the Board of Directors, management may make other adjustments for expenses and gains that it does not consider reflective of core operating performance in a particular period and may modify "non-GAAP net income" and/or "non-GAAP net income per share" by excluding these expenses and gains.