Science & Technology 
Science and Technology
Science and Technology 
Mon, September 14, 2009
Sun, September 13, 2009
Fri, September 11, 2009
Thu, September 10, 2009
Finisar: Finisar Corporation Announces First Quarter Financial Results
SUNNYVALE, CA--(Marketwire - September 10, 2009) - Finisar Corporation (
-- During the three months ended August 2, 2009, the Company completed the sale of substantially all of the assets of its Network Tools Division to JDS Uniphase Corporation. Accordingly, the operating results of this business, through the date of its disposition and for all applicable prior periods are reported as discontinued operations in the condensed consolidated financial statements for the period ended August 2, 2009, and the prior period comparative financial statements have been restated to exclude assets, liabilities and results of operations (including revenues, associated cost of goods sold and operating expenses) related to the discontinued operations; and -- Effective at the beginning of the first quarter, the Company adopted FSP APB 14-1 under which the issuer of certain convertible debt instruments that may be settled in cash (or other assets) on conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. The separation of the conversion option creates an original issue discount in the bond component which is to be accreted as interest expense over the term of the instrument using the interest method, resulting in an increase in interest expense and a decrease in net income and earnings per share. Due to the modification of $100 million of the Company's 2.5% convertible notes in October 2006, the Company has accounted for the debt and equity components of the notes to reflect the estimated nonconvertible debt borrowing rate at the date of issuance of 8.59%. Because FSP APB 14-1 requires retrospective application of the financial statement for all periods presented, prior period balances have been restated to effectively record a debt discount equal to the fair value of the equity component and an increase to paid-in capital for the fair value of the equity component as of the date of issuance of the underlying notes. Prior period balances have also been adjusted to provide for the amortization of the debt discount through interest expense (non-cash interest cost).
FINISAR FINANCIAL HIGHLIGHTS - FIRST QUARTER ENDED AUGUST 2, 2009 First First Fourth GAAP Results Quarter Quarter Quarter August 2, August 3, April 30, 2009 2008 2009 --------- ---------- --------- (in thousands, except per share amounts) --------- ---------- --------- Continuing operations Total optics revenues $ 128,725 $ 115,774 $ 107,457 Gross margin 22.8 % 35.2% 21.6 % Before impairment charges Operating expenses $ 38,188 $ 32,929 $ 34,094 Operating income (loss) $ (8,786) $ 7,860 $ (10,871) Operating margin (deficit) (6.8)% 6.8% (10.1)% Goodwill impairment $ - $ - $ 13,205 Income (loss) $ (11,116) $ 2,942 $ (27,004) Income (loss) per share-basic $ (0.02) $ 0.01 $ (0.06) Income (loss) per share-diluted $ (0.02) $ 0.01 $ (0.06) Basic shares 481,444 310,133 476,972 Diluted shares 481,444 311,614 476,972 Discontinued operations Income (loss) $ 37,079 $ (125) $ 1,246 Income (loss) per share-basic $ 0.08 $ (0.00) $ 0.00 Income (loss) per share-diluted $ 0.07 $ (0.00) $ 0.00 Basic shares 481,444 310,133 476,972 Diluted shares 502,106 310,133 482,227 First First Fourth NonGAAP Results (a) Quarter Quarter Quarter August 2, August 3, April 30, 2009 2008 2009 --------- ---------- --------- (in thousands, except per share amounts) --------- ---------- --------- Continuing operations Total optics revenues $ 128,725 $ 115,774 $ 107,457 Gross margin 28.8 % 36.6% 27.2 % Operating expenses $ 33,760 $ 30,953 $ 30,837 Operating income (loss) $ 3,260 $ 11,428 $ (1,633) Operating margin (deficit) 2.5 % 9.9% (1.5)% Income (loss) $ 1,765 $ 8,955 $ (3,426) Income (loss) per share-basic $ 0.00 $ 0.03 $ (0.01) Income (loss) per share-diluted $ 0.00 $ 0.03 $ (0.01) Basic shares 481,444 310,133 476,972 Diluted shares 488,611 311,614 476,972 Discontinued operations Income $ 733 $ 1,964 $ 1,911 Income per share-basic $ 0.00 $ 0.01 $ 0.00 Income per share-diluted $ 0.00 $ 0.01 $ 0.00 Basic shares 481,444 310,133 476,972 Diluted shares 488,611 311,614 482,227
(a) In evaluating the operating performance of Finisar's business, Finisar management utilizes financial measures that exclude certain charges and credits required by U.S. generally accepted accounting principles, or GAAP, that are considered by management to be outside Finisar's core operating results. A reconciliation of Finisar's non-GAAP financial measures to the most directly comparable GAAP measures, as well as additional related information can be found under the heading "Finisar Non-GAAP Financial Measures" below.
Highlights for the quarter per GAAP include the following:
-- Total optics revenues increased to $128.7 million, up $21.3 million, or 19.8%, from $107.5 million in the preceding quarter and up $13.0 million, or 11.2%, from $115.8 million in the first quarter of the prior year; the increase from the first quarter of the prior year includes the impact of the Optium merger completed on August 29, 2008; -- Excluding approximately $28.8 million of additional revenues in the quarter as a result of the Optium merger, optics revenues were $99.9 million, up $17.6 million, or 21.3% from $82.3 million in the preceding quarter and down $15.9 million, or 13.7%, from $115.7 million in the first quarter of the prior year prior to the merger (a revenue record for the Company at that time); Revenues from the sale of products for 10/40 Gbps applications increased to $51.9 million, up $11.3 million, or 27.8%, from $40.6 million in the preceding quarter and up $19.7 million, or 61.1%, from $32.2 million in the first quarter of the prior year primarily due to the Optium merger; -- Gross margin from continuing operations was 22.8%, an increase from 21.6% in the preceding quarter and a decrease from 35.2% in the first quarter of the prior year; -- Operating loss from continuing operations was $8.8 million, or (6.8)% of revenues, compared to an operating loss of $10.9 million, or (10.1)% of revenues in the preceding quarter (before a charge for the impairment of goodwill and current technology) and operating income of $7.9 million, or 6.8% of revenues, in the first quarter of the prior year; -- A loss of $11.1 million, or $(0.02) per share, from continuing operations compared to a loss of $27.0 million, or $(0.06) per share, in the preceding quarter including a $13.2 million charge for the impairment of goodwill and current technology in the preceding quarter, and income of $2.9 million, or $0.01 per share, in the first quarter of the prior year; -- Income net of taxes from discontinued operations was $37.1 million, or $.07 per diluted share, reflecting the gain on the sale of the assets of the Network Tools Division in the quarter and compared to $1.2 million, or $0.00 per share, in the preceding quarter and a loss of $125,000, or $(0.00) per share, in the first quarter of the prior year; and -- Cash and short-term investments, plus other long-term investments that can be readily converted into cash, totaled $60.4 million at the end of the first quarter compared to $37.2 million at the end of the prior quarter reflecting the sale of the Network Tools business in the quarter for $40.6 million in cash and the lack of sales of accounts receivable under the Company's credit accounts receivable credit facility which sales totaled $15.7 million in the prior quarter. The Company continues to maintain a secured credit facility totaling $45.0 million under which $3.4 million was used for letters of credit while no borrowings were outstanding at the end of the quarter. Finisar has classified certain of its investments as long- term based on its intent to hold these securities until maturity, although they can be readily sold if required.
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides supplemental information regarding its operating performance on a non-GAAP basis. Finisar believes this additional information provides investors and management with additional insight into its underlying core operating performance by excluding a number of non-cash and cash charges as well as gains or losses principally related to acquisitions, the sale of minority investments, restructuring or other transition activities, impairments and financing transactions. For the first quarter of fiscal 2010, these excluded items included, among other items described in Finisar Non-GAAP Financial Measures below, a non-cash charge of $5.3 million for slow moving and obsolete inventory; $4.2 million in non-cash stock-based compensation expense; $1.9 million in non-cash amortization charges related to acquired developed technology and purchased intangibles arising from previous acquisitions; and a $1.2 million non-cash charge for imputed interest expense on the Company's debt obligations, offset by non-recurring gains of $36.0 million from the sale of the Network Tools division and $1.6 million from the sale of minority investments in two separate entities.
Excluding these items:
-- Non-GAAP gross margin from continuing operations increased to 28.8% compared to 27.2% in the preceding quarter but decreased from 36.6% in the first quarter of the prior year. The sequential increase in non-GAAP gross margin reflects the impact of higher product shipment levels and the incremental contribution margin thereon, while the decrease compared to the prior year reflects the impact of lower revenues and lower yields associated with making certain of our higher speed components as well as the impact of the Optium merger ahead of additional manufacturing cost synergies expected to be realized over the next three quarters; -- Non-GAAP operating expenses related to continuing operations were $33.8 million in the first quarter, an increase of $2.9 million, or 9.5%, from the preceding quarter and an increase of $2.8 million, or 9.1%, from the first quarter of the prior year. The increase in operating expenses from the preceding quarter reflects $1.3 million in higher research and development expenses, $0.8 million related to higher sales and marketing expense on higher revenue levels and $0.8 million in higher general and administrative expense primarily related to an increase in the estimated allowance for doubtful accounts. The increase as compared to the prior year was primarily a result of the Optium merger, which is not reflected in the prior year results. In this regard, the Company notes that Optium's operating expenses in the same prior year period prior to the merger totaled approximately $11.5 million whereas total Company operating expenses in the most recent quarter increased just $2.8 million from the prior year period; -- Non-GAAP operating income from continuing operations was $3.3 million, or 2.5% of revenues, up $4.9 million from an operating loss of $1.6 million, or (1.5%) of revenues, in the preceding quarter, and down $8.1 million from operating income of $11.4 million, or 9.9% of revenues, in the first quarter of the prior year. The increase in operating income from the previous quarter was due primarily to higher gross profit levels on higher revenues partially offset by higher operating expenses. The decline from the prior year was primarily related to lower gross profit levels and higher operating expenses resulting from the Optium merger; -- Non-GAAP income from continuing operations was $1.8 million, or $0.00 per share, compared to a loss of $3.4 million, or $(0.01) per share, in the preceding quarter and net income of $9.0 million, or $0.03 per share, in the first quarter of the prior year; -- Non-GAAP EBITDA from continuing operations was $10.4 million as compared to$6.1 million in the preceding quarter and $17.5 million in the first quarter of the prior year; and -- Non-GAAP income from discontinued operations was $0.7 million, or $0.00 per share, as compared to $1.9 million, or $0.00 per share in the preceding quarter and $2.0 million, or $0.01 per share, in the first quarter of the prior year.
"Order trends continue to underscore healthy customer demand for ROADMs and products capable of transmitting at 10 Gbps for use in datacom and telecom applications," said Jerry Rawls, Finisar's executive Chairman of the Board. "I was also pleased to see the first orders arrive and revenue recognized for our QuadWire™ product for 40 Gbps parallel optics applications. This product marks our first foray into that new market for us."
"While gross margins for optics were up from last quarter and a little better than we expected, we can look for additional improvement in the near term as our top line continues to improve, product mix turns favorable and additional synergies are realized with respect to manufacturing costs," said Eitan Gertel, Finisar's Chief Executive Officer.
ADDITIONAL CONVERTIBLE NOTE REDUCTIONS FOLLOWING COMPLETION OF EXCHANGE OFFER
The Company also announced that, following the completion of an exchnage offer on August 6, 2009, where it retired $47.5 million in principal amount of its convertible subordinated notes due October 15, 2010, that it had retired an additional $15.2 million principal value of its notes in an all cash, privately negotiated transaction.
CONFERENCE CALL
Finisar will discuss these financial statements and its current business outlook during its regular quarterly conference call scheduled for today, September 10, 2009, at 2:00 p.m. PDT/5:00 EDT. To listen to the call you may connect through the investor page of Finisar at [ www.finisar.com ] or dial 866-393-6455 (domestic) or 706-643-4465 (international) and enter conference ID 23224474.
A replay of the webcast will be available shortly after the conclusion of the call on the Company's website until the next conference call to be held approximately 90 days from today. An audio replay of the call will be accessible to the public by calling (800) 642-1687 (domestic) or (706) 645-9291 (international) and then, following the prompts, enter conference ID 23224474 and record your name, affiliation, and contact number. The audio replay will be available for two weeks following the call.
SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements included in this press release are based upon information available to Finisar as of the date hereof, and Finisar assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those projected. Examples of such risks include those associated with: the uncertainty of customer demand for Finisar's products; the rapidly evolving markets for Finisar's products and uncertainty regarding the development of these markets; Finisar's historical dependence on sales to a limited number of customers and fluctuations in the mix of products and customers in any period; ongoing new product development and introduction of new and enhanced products; the challenges of rapid growth followed by periods of contraction; and intensive competition. Additional risks include the potential impact of pending civil litigation arising from the investigation of Finisar's historical option granting practices. Further information regarding these and other risks relating to Finisar's business is set forth in Finisar's annual report on Form 10-K (filed July 9, 2009).
ABOUT FINISAR
Finisar Corporation (
FINISAR FINANCIAL STATEMENTS
The following financial tables are presented in accordance with GAAP.
Finisar Corporation Consolidated Statements of Operations Three Months Ended August 2, August 3, April 30, 2009 2008 2009 ------------- ------------- ------------- (Unaudited) (Unaudited) (in thousands, except share and per share data) Revenues 128,725 115,774 107,457 Cost of revenues 98,130 74,135 81,636 Impairment of acquired developed technology - - 1,248 Amortization of acquired developed technology 1,193 850 1,350 ------------- ------------- ------------- Gross profit 29,402 40,789 23,223 Gross margin 22.8% 35.2% 21.6% Operating expenses: Research and development 21,047 17,413 19,767 Sales and marketing 6,819 6,876 5,908 General and administrative 9,621 8,511 7,719 Amortization of purchased intangibles 701 129 700 Impairment of goodwill and intangible assets - - 13,205 ------------- ------------- ------------- Total operating expenses 38,188 32,929 47,299 ------------- ------------- ------------- Income (loss) from operations (8,786) 7,860 (24,076) Interest income 10 968 18 Interest expense (2,434) (5,243) (2,517) Other income 253 103 38 ------------- ------------- ------------- Income (loss) from continuing operations before income taxes (10,957) 3,688 (26,537) Provision for income taxes 159 746 467 ------------- ------------- ------------- Income (loss) from continuing operations (11,116) 2,942 (27,004) Income (loss) from discontinued operations, net of taxes 37,079 (125) 1,246 ------------- ------------- ------------- Net income (loss) $ 25,963 $ 2,817 $ (25,758) ============= ============= ============= Income (loss) per share from continuing operations - basic $ (0.02) $ 0.01 $ (0.06) ============= ============= ============= Income (loss) per share from continuing operations - diluted $ (0.02) $ 0.01 $ (0.06) ============= ============= ============= Income (loss) per share from discontinued operations - basic $ 0.08 $ (0.00) $ 0.00 ============= ============= ============= Income (loss) per share from discontinued operations - diluted $ 0.07 $ (0.00) $ 0.00 ============= ============= ============= Shares used in computing net income (loss) per share from continuing operations- basic 481,444 310,133 476,972 Shares used in computing net income (loss) per share from continuing operations- diluted 481,444 311,614 476,972 Shares used in computing net income (loss) per share from discontinued operations- basic 481,444 310,133 476,972 Shares used in computing net income (loss) per share from discontinued operations- diluted 502,106 310,133 482,227 Finisar Corporation Consolidated Balance Sheets (In thousands) August 2, April 30, 2009 2009 ------------ ------------ (unaudited) ASSETS Current assets: Cash and cash equivalents $ 60,327 $ 37,129 Short-term available-for-sale investments 92 92 Accounts receivable, net 99,466 81,820 Accounts receivable, other 8,512 10,033 Inventories 108,686 112,300 Prepaid expenses 5,568 7,122 ------------ ------------ Total current assets 282,651 248,496 Property, plant and improvements, net 79,492 84,040 Purchased technology, net 15,267 16,663 Other intangible assets, net 13,102 14,316 Minority investments 14,289 14,289 Other assets 2,427 2,584 ------------ ------------ Total assets $ 407,228 $ 380,388 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 52,264 $ 48,421 Accrued compensation 9,048 11,428 Other accrued liabilities 25,102 30,713 Deferred revenue 2,073 4,663 Current portion of long-term debt 6,173 6,107 Non-cancelable purchase obligations 657 2,965 ------------ ------------ Total current liabilities 95,317 104,297 Long-term liabilities: Convertible notes 135,490 134,255 Long-term debt 13,737 15,305 Other long-term liabilities 2,352 3,161 Deferred income taxes 973 1,149 ------------ ------------ Total long-term liabilities 152,552 153,870 Stockholders' equity: Common stock 486 477 Additional paid-in capital 1,838,083 1,830,807 Accumulated other comprehensive income 6,552 2,662 Accumulated deficit (1,685,762) (1,711,725) ------------ ------------ Total stockholders' equity 159,359 122,221 ------------ ------------ Total liabilities and stockholders' equity $ 407,228 $ 380,388 ============ ============
FINISAR NON-GAAP FINANCIAL MEASURES
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Finisar provides supplemental information regarding the Company's operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or which occur relatively infrequently and which management considers to be outside our core operating results. Some of these non-GAAP measures also exclude the ongoing impact of historical business decisions made in different business and economic environments. Management believes that tracking non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share provides management and the investment community with valuable insight into our current operations, our ability to generate cash and the underlying business trends which are affecting our performance. These non-GAAP measures are used by both management and our Board of Directors, along with the comparable GAAP information, in evaluating our current performance and planning our future business activities. In particular, management finds it useful to exclude non-cash charges in order to better correlate our operating activities with our ability to generate cash from operations and to exclude non-recurring and infrequently incurred cash charges as a means of more accurately predicting our liquidity requirements. We believe that these non-GAAP measures, when used in conjunction with our GAAP financial information, also allow investors to better evaluate our financial performance in comparison to other periods and to other companies in our industry.
In calculating non-GAAP gross profit, we have excluded the following items from cost of revenues in applicable periods:
-- Changes in excess and obsolete inventory reserve (predominantly non- cash charges or non-cash benefits); -- Amortization of acquired technology (non-cash charges related to technology obtained in acquisitions); -- Duplicate facility costs during facility move (non-recurring charges); -- Stock-based compensation expense (non-cash charges); -- Options investigation costs included in general and administrative expense (non-recurring cash charges related to the special investigation into our historical stock option granting practices) and the cost of covering employee and employer tax liabilities (non-recurring cash charges) arising from that investigation recorded in each line of the income statement; -- Purchase accounting adjustment for sale of acquired inventory (non- cash and non-recurring charges); -- Impairment of acquired developed technology (non-cash charges); and -- Reduction in force costs (non-recurring charges).
In calculating non-GAAP operating income (loss), we have excluded the same items to the extent they are classified as operating expenses, and have also excluded the following items in applicable periods:
-- Disposal of a product line (non-recurring charges); -- Acquired in-process research and development expense (non-recurring and non-cash charges); -- Litigation settlement payments (non-recurring charges); -- Amortization of purchased intangibles (non-cash charges related to prior acquisitions); and -- Impairment charges associated with intangible assets (non-cash and non- recurring).
In calculating non-GAAP net income (loss) and non-GAAP net income (loss) per share, we have also excluded the following items in applicable periods:
-- Amortization of discount on convertible debt (non-cash charges); -- Gains and losses on debt extinguishment (non-recurring and non-cash charges or income); -- Gains and losses on sales of assets (non-recurring or non-cash losses and cash gains related to the periodic disposal of assets no longer required for current activities); -- Gains and losses on minority investments (infrequently occurring and principally non-cash gains and losses related to the disposal of investments in other companies and non-cash income or loss from these investments accounted for under the equity method); -- Foreign exchange transaction loss (non-recurring and non-cash charges); -- Tax charges arising from timing difference related to asset purchases (non-cash provision); and -- Cumulative effect of change in accounting principle (non-recurring and non-cash charges or income).
In calculating non-GAAP net income (loss) and non-GAAP net income (loss) per share, in each case from discontinued operations, we have also excluded gain on disposal of discontinued operations (non-recurring gain).
A reconciliation of this non-GAAP financial information to the corresponding GAAP information is set forth below:
Finisar Corporation Reconciliation of Results of Operations under GAAP and non-GAAP Three Months Ended August 2, August 3, April 30, 2009 2008 2009 ------------ ------------ ------------ (Unaudited) (Unaudited) (Unaudited) (in thousands, except per share data) Reconciliation of GAAP income (loss) to non-GAAP income (loss) from continuing operations Reconciliation of GAAP Gross Profit to non-GAAP Gross Profit: Gross profit per GAAP 29,402 40,789 23,223 Gross margin, GAAP 22.8% 35.2% 21.6% Adjustments: Cost of revenues Change in excess and obsolete inventory reserve 5,254 (285) 2,495 Amortization of acquired technology 1,192 850 1,349 Duplicate facility costs during facility move - 170 - Stock compensation 1,031 821 830 Costs related to options investigation - - (247) Impairment of acquired developed technology - - 1,248 Reduction in force costs 141 36 306 ------------ ------------ ------------ Total cost of revenue adjustments 7,618 1,592 5,981 Gross profit, non-GAAP 37,020 42,381 29,204 Gross margin, non-GAAP 28.8% 36.6% 27.2% Reconciliation of GAAP operating loss to non-GAAP operating income (loss): Operating income (loss) per GAAP (8,786) 7,860 (24,076) Operating margin, GAAP -6.9% 6.8% -22.4% Adjustments: Total cost of revenue adjustments 7,618 1,592 5,981 Research and development Reduction in force costs 29 - 267 Stock compensation 1,525 860 1,546 Costs related to options investigation - - (273) Sales and marketing Reduction in force costs - - 99 Stock compensation 578 327 460 Costs related to options investigation - - (48) General and administrative Reduction in force costs 49 - 111 Stock compensation 1,036 515 824 Costs related to options investigation 183 146 (429) IPO Laddering Settlement 327 - - Amortization of purchased intangibles 701 128 702 Impairment of intangible assets - - 13,205 ------------ ------------ ------------ Total cost of revenue and operating expense adjustments 12,046 3,568 22,445 Operating income (loss), non-GAAP 3,260 11,428 (1,631) Operating margin, non-GAAP 2.2% 9.9% -1.5% Reconciliation of GAAP income (loss) to non-GAAP income (loss) from continuing operations: Income (loss) per GAAP from continuing operations (11,116) 2,942 (27,004) Total cost of revenue and operating expense adjustments 12,046 3,568 22,445 Amortization of discount on convertible debt - 1,146 - Non-cash imputed interest expenses on convertible debt 1,235 1,235 1,185 Other expense, net Loss (gain) on sale of assets 21 413 497 Loss (gain) on minority investments (375) (400) - Other misc income (2) (500) (17) Foreign exchange transaction loss (44) - (532) Provision for income tax Timing difference related to asset purchases - 551 - ------------ ------------ ------------ Total adjustments 12,881 6,013 23,578 Income (loss), non-GAAP, from continuing operations 1,765 8,955 (3,426) Reconciliation of GAAP income (loss) to non-GAAP income (loss) from discontinued operations: Income (loss) per GAAP from discontinued operations 37,079 (125) 1,246 Adjustments: Reduction in force costs 6 100 131 Stock compensation 704 535 359 Payroll taxes related to options investigation - - (184) Amortization of acquired technology 170 396 235 Amortization of purchased intangibles 77 139 124 Disposal of a product line (1,250) 919 - Gain on disposal of discontinued operations (36,053) - - ------------ ------------ ------------ Total adjustments (36,346) 2,089 665 ------------ ------------ ------------ Income from discontinued operations, non-GAAP 733 1,964 1,911 ------------ ------------ ------------ Reconciliation of GAAP net income (loss) to non-GAAP net income (loss): Net income (loss) per GAAP 25,963 2,817 (25,758) Total adjustments from continuing operations 12,881 6,013 23,578 Total adjustments from discontinuing operations (36,346) 2,089 665 ------------ ------------ ------------ Total adjustments (23,465) 8,102 24,243 ------------ ------------ ------------ Net income (loss), non-GAAP $ 2,498 $ 10,919 $ (1,515) ============ ============ ============ Income (loss) per share from continuing operations - basic $ 0.00 $ 0.03 $ (0.01) Income (loss) per share from continuing operations - diluted $ 0.00 $ 0.03 $ (0.01) Income (loss) per share from discontinued operations - basic $ 0.00 $ 0.01 $ 0.00 Income (loss) per share from discontinued operations - diluted $ 0.00 $ 0.01 $ 0.00 Shares used in computing net income (loss) per share from continuing operations- basic 481,444 310,133 476,972 Shares used in computing net income (loss) per share from continuing operations- diluted 488,611 311,614 476,972 Shares used in computing net income (loss) per share from discontinued operations- basic 481,444 310,133 476,972 Shares used in computing net income (loss) per share from discontinued operations- diluted 488,611 311,614 482,227 Continuing operations Net income (loss), non-GAAP $ 1,765 $ 8,955 $ (3,426) Depreciation expense 7,172 6,168 7,626 Amortization 127 256 127 Interest expense 1,189 1,894 1,314 Income tax expense/(benefit) 159 195 468 ------------ ------------ ------------ Non-GAAP EBITDA $ 10,412 $ 17,468 $ 6,109 ------------ ------------ ------------ Discontinued operations Net income (loss), non-GAAP 733 1,964 1,911 Depreciation expense 119 223 207 ------------ ------------ ------------ Non-GAAP EBITDA $ 852 $ 2,187 $ 2,118 ------------ ------------ ------------ ------------ ------------ ------------ Total Non-GAAP EBITDA $ 11,264 $ 19,655 $ 8,227 ============ ============ ============