“Our revenue was above the guidance range we provided and profitability was consistent with our investment plan,” said Ron Hovsepian, Intralinks’ president and CEO. “We have seen increased awareness and concern from senior executives around information security and compliance due to the recent proliferation of new consumer and prosumer-based content sharing offerings. Intralinks is a clear leader in inter-enterprise collaboration providing corporations with an easy to use, secure, and compliant platform for sharing and managing content between businesses and is well positioned to capitalize on this emerging opportunity.”
First Quarter 2012
Total revenue was $50.8 million, compared to $52.4 million for the corresponding quarter last year.
- Enterprise revenue was $23.3 million, compared to $24.0 million for the corresponding quarter last year.
- M&A revenue was $20.0 million, compared to $20.4 million for the corresponding quarter last year.
- DCM revenue was $7.5 million, compared to $8.0 million for the corresponding quarter last year.
GAAP gross margin was 69.5%, compared to 74.0% for the corresponding quarter last year. Non-GAAP gross margin was 76.2%, compared to 80.5% for the corresponding quarter last year.
GAAP operating loss was ($5.7) million, compared to a GAAP operating income of $1.7 million for the corresponding quarter last year. Non-GAAP adjusted operating income was $2.8 million, compared to $10.8 million for the corresponding quarter last year.
GAAP net loss was ($5.6) million, compared to a GAAP net income of $0.5 million for the corresponding quarter last year. GAAP net loss per share for the first quarter was ($0.10) on the basis of 54,191,872 shares outstanding. In the prior year comparable period, diluted GAAP net income per share was $0.01on the basis of 53,711,457 shares outstanding.
Non-GAAP adjusted net income was $1.1 million, compared to $6.1 million for the corresponding quarter last year. Non-GAAP adjusted net income per share was $0.02 on the basis of 54,717,422 shares outstanding. In the corresponding quarter for the prior year, non-GAAP net income per share was $0.10 on the basis of 53,711,457 shares outstanding.
Non-GAAP adjusted EBITDA was $7.1 million, compared to $15.8 million for the corresponding quarter last year.
Cash flow from operations was $1.5 million, compared to $5.3 million in the corresponding quarter last year.
Based on information available as of May 9, 2012, Intralinks is providing guidance for the second quarter 2012 as follows:
Second Quarter 2012
Revenue: $47 million to $50 million
GAAP operating loss: ($6.0) million to ($8.0) million
Non-GAAP operating income: $0.5 million to $2.5 million
Non-GAAP adjusted EBITDA: $5.5 million to $7.5 million
GAAP net loss per share: ($0.14) to ($0.16)
Non-GAAP net (loss) income per share: ($0.01) to $0.01
Full Year 2012
Revenue: $195 million to $205 million
Quarterly Conference Call
In conjunction with this announcement, Intralinks will host a conference call on Wednesday, May 9, 2012, at 5:00 p.m. Eastern Time (ET) to discuss the company’s financial results and its business outlook. To access this call, dial 866-524-3160 (domestic) or 412-317-6760 (international). A passcode is not required. The call will also be webcast live on the investor relations section on the Intralinks website at www.intralinks.com/ir.
Following the conference call, a replay will be available until May 16, 2012, at 877-870-5176 (domestic) or 858-384-5517 (international). The passcode for the replay is 10012835. An archived webcast of the call will also be available on the investor relations section on the Intralinks website at www.intralinks.com/ir.
Non-GAAP Financial Measures
The press release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP” or “U.S. GAAP”), including non-GAAP gross profit and gross margin, non-GAAP adjusted operating income and margin, non-GAAP adjusted net income, non-GAAP adjusted net income per share, and non-GAAP adjusted EBITDA. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies.
Management defines its non-GAAP financial measures as follows:
- Non-GAAP gross margin represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense and (2) amortization of intangible assets.
- Non-GAAP adjusted operating income represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets, and (3) costs related to public stock offerings.
- Non-GAAP adjusted net income represents the corresponding GAAP measure adjusted to exclude (1) stock-based compensation expense, (2) amortization of intangible assets, and (3) costs related to public stock offerings. Non-GAAP adjusted net income is calculated using an estimated long-term effective tax rate.
- Non-GAAP net income per share represents non-GAAP adjusted net income defined above divided by shares outstanding.
- Non-GAAP adjusted EBITDA represents net (loss) income adjusted to exclude (1) interest expense, (2) income tax provision (benefit), (3) depreciation and amortization, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) amortization of debt issuance costs, (7) other income, net and (8) costs related to public stock offerings.
Management believes that these non-GAAP financial measures, when viewed with our results under U.S. GAAP and the accompanying reconciliations, provide useful information about our period-over-period growth and provide additional information that is useful for evaluating our operating performance and manage the cash needs of our business. Additionally, management believes that these non-GAAP financial measures provide a more meaningful comparison of our operating results against those of other companies in our industry, as well as on a period to-period basis, because these measures exclude items that are not representative of our operating performance, such as amortization of intangible assets, interest expense and fair value adjustments to the interest rate swap. Management believes that including these costs in our results of operations results in a lack of comparability between our operating results and those of our peers in the industry, the majority of which are not highly leveraged and do not have comparable amortization costs related to intangible assets. However, non-GAAP gross margin, non-GAAP adjusted operating income, non-GAAP adjusted net income, non-GAAP adjusted net income per share and non-GAAP adjusted EBITDA are not measures of financial performance under U.S. GAAP and, accordingly, should not be considered as alternatives to gross margin, operating income, net income (loss), and cash flows provided by operations as indicators of operating performance.
A reconciliation of GAAP to Non-GAAP financial measures has been provided in the financial statement tables included in the press release.
Forward Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release contains express or implied forward-looking statements that are not based on historical information relating to, among other things, expectations and assumptions concerning management's forecast of financial performance, future business growth, and management's plans, objectives, and strategies. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. In particular, the risks and uncertainties include, among other things: the uncertainty of our future profitability; our ability to sustain positive cash flow; periodic fluctuations in our operating results; risks related to our substantial debt balances; our ability to maintain the security and integrity of our systems; our ability to increase our penetration in our principal existing markets and expand into additional markets; our dependence on the volume of financial and strategic business transactions; our dependence on customer referrals; our ability to maintain and expand our direct sales capabilities; our ability to develop and maintain strategic relationships to sell and deliver our solutions; customer renewal rates; our ability to maintain the compatibility of our services with third-party applications; competition and our ability to maintain our average sales prices; our ability to adapt to changing technologies; interruptions or delays in our service; international risks; our ability to protect our intellectual property; costs of being a public company; and risks related to changes in laws, regulations or governmental policy including tax regulations. Further information on these and other factors that could affect our financial results is contained in our public filings with the Securities and Exchange Commission (the “SEC”) from time to time, including our Annual Report on Form 10-K for the year-ended December 31, 2011 and subsequent reports. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
Intralinks undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.
Intralinks and the Intralinks logo are registered trademarks of Intralinks Holdings, Inc. All rights reserved.