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Acme Packet Reports Record Revenue and Earnings in First Quarter of 2011

^{Published on 2011-04-26 13:15:55 - Market Wire}
 

BEDFORD, Mass.--([ BUSINESS WIRE ])--Acme Packet, Inc. (NASDAQ: APKT), the leader in session delivery network solutions, today announced record results for the quarter ended March 31, 2011 and raised its business outlook for 2011. All earnings per share results are on a fully diluted basis unless otherwise noted.

"net income per share on a non-GAAP basis"

Results for the First Quarter of 2011

Total revenue in the first quarter of 2011 was $74.0 million, compared to $51.1 million in the first quarter of 2010 and $70.2 million in the fourth quarter of last year. Net income in the first quarter of 2011 was $13.7 million, or $0.19 per share, compared to $8.3 million, or $0.13 per share, in the first quarter of 2010 and $14.5 million, or $0.21 per share, in the fourth quarter of last year. Net income on a non-GAAP¹ basis in the first quarter of 2011 was $18.9 million, or $0.27 per share, compared to $10.7 million, or $0.16 per share in the first quarter of last year, and $18.1 million, or $0.26 per share, in the fourth quarter of last year.

Company Raises Business Outlook for 2011

The Company today raised its business outlook for 2011. The Companya™s outlook is based on the current indications for its business, which may change at any time.

The Company expects net income on a non-GAAP¹ basis to differ from net income on a GAAP basis in 2011 as it is expected to exclude estimated stock-based compensation expense and related payroll taxes, net of tax, of approximately $22.0 million, or $0.31 per share, amortization of acquired intangible assets, net of tax, of approximately $1.2 million, or $0.02 per share, and merger and integration-related costs of $0.2 million, or $0.00 per share. A reconciliation of the Companya™s expected GAAP to non-GAAP¹ business outlook, and a statement as to the use of non-GAAP¹ financial measures, is included at the end of this press release.

Company to Host Live Conference Call and Webcast

The Companya™s management team plans to host a live conference call and webcast at 4:30 p.m. eastern time today to discuss the financial results as well as managementa™s outlook for the business. The conference call may be accessed in the United States by dialing 1.800.230.1766 and using access code aAPKTa. The conference call may be accessed outside of the United States by dialing +1.612.332.0226 and using access code aAPKTa. The conference call will be simultaneously webcast on the Companya™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 1.800.475.6701 and using access code 198306 or by accessing the webcast replay on the Companya™s investor relations website.

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¹A reconciliation of GAAP to non-GAAP results, and a statement on the use of non-GAAP financial measures, is included at the end of this press release.

About Acme Packet

Acme Packet (NASDAQ: APKT), the leader in session delivery network solutions, enables the trusted, first-class delivery of next-generation voice, data and unified communications services and applications across IP networks. Our Net-Net product family fulfills demanding security, service assurance and regulatory requirements in service provider, enterprise and contact center networks. Based in Bedford, Massachusetts, Acme Packet designs and manufactures its products in the USA, selling them through over 140 reseller partners worldwide. More than 1,350 customers in 105 countries have deployed over 12,000 Acme Packet systems, including 90 of the top 100 service providers and 32 of the Fortune 100. For more information visit [ www.acmepacket.com ].

Acme Packet, Inc. Safe Harbor Statement

Statements contained herein that are not historical fact (including those in the section aCompany Raises Business Outlook for 2011a) 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 to, among other things, expected financial and operating results, expected growth rates, future stock-based compensation and amortization expenses, 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: the amount of stock-based compensation awarded; the applicable Company stock price used to determine stock-based compensation; the exercise pattern of employee stock options; difficulties expanding the Companya™s customer base; difficulties leveraging market opportunities; difficulties providing solutions that meet the needs of customers; poor product sales; long sales cycles; difficulties developing new products; difficulties in relationships with vendors and partners; higher risks in international operations; difficulties managing rapid growth; difficulties managing the Companya™s financial performance; the ability to hire and retain employees and appropriately staff operations; the Companya™s cash needs; 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 Companya™s recent filings with the Securities and Exchange Commission, including those factors discussed under the caption aRisk Factorsa in such filings.

Acme Packet, Inc.
Statement on Use of Non-GAAP Financial Measures and
Reconciliation of Non-GAAP Net Income and Non-GAAP Net Income Per Share
(in thousands, except per share data)
(unaudited)

Statement on Use of Non-GAAP Financial Measures:

The Company uses the financial measures anon-GAAP net incomea, anet income on a non-GAAP basisa, anon-GAAP net income per sharea and anet income per share on a non-GAAP basisa to supplement its condensed consolidated financial statements, which are presented in accordance with accounting principles generally accepted in the United States (aGAAPa). The presentation of anon-GAAP net incomea, anet income on a non-GAAP basisa, anon-GAAP net income per sharea and anet income per share on a non-GAAP basisa is not meant to be a substitute for anet incomea or anet income per sharea, presented in accordance with GAAP, but rather should be evaluated in conjunction with net income and net income per share. The Companya™s management believes that the presentation of anon-GAAP net incomea, anet income on a non-GAAP basisa, anon-GAAP net income per sharea and anet income per share on a non-GAAP basisa provides useful information to investors because these financial measures exclude stock-based compensation expense which is a non-cash charge and related payroll taxes, as well as amortization of acquired intangible assets and merger and integration-related costs associated with the Companya™s acquisition activities. By excluding stock-based compensation expense and related payroll taxes, amortization of acquired intangible assets, and merger and integration-related costs, management can compare the Companya™s operations to prior periods and to the operations of other companies in its industry who may have materially different unusual charges. Management does not consider any of stock-based compensation expense and related payroll taxes, amortization of acquired intangible assets, and merger and integration-related costs to be part of the Companya™s operating activities or meaningful in evaluating the Companya™s past financial performance or future prospects. Management believes that excluding these items 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 Companya™s management uses to evaluate the Companya™s financial results and forecast anticipated financial results for future periods. Management also uses these non-GAAP measures to make financial and operational decisions as these numbers exclude non-operational activities. These non-GAAP measures should not be considered measures of the Companya™s liquidity. The Companya™s definition of non-GAAP net income and non-GAAP net income per share may differ from similar measures used by other companies and may differ from period to period. 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 non-GAAP net income per share by excluding these expenses and gains.

Reconciliation of Non-GAAP Net Income and Diluted Non-GAAP Net Income Per Share for the Three Months Ended March 31, 2011, December 31, 2010 and March 31, 2010 (unaudited):

Reconciliation of Expected Non-GAAP Net Income and Diluted Non-GAAP Net Income Per Share for the Year Ending December 31, 2011 (Unaudited):