SHANGHAI, Jan. 31, 2018 /PRNewswire/ — ID Chain Foundation, Ltd., a Singapore-based registered charitable organization backed by a Silicon Valley, Hong Kong and Taiwan blockchain project research team, and DeepBrain Chain (DBC www.DeepBrainChain.org) Foundation, an organization supported by a blockchain technology-driven AI computing platform, jointly announced the establishment of a strategic partnership, whereby both parties will cooperate on artificial intelligence (AI) and marketing outside of their home markets. ID Chain will take advantage of DBC’s neural network computing nodes, and DBC will help ID Chain cut computing costs, while gaining access to ID Chain’s computing competence.

ID Chain aims to use blockchain technology to meet market demand for certification, which remains largely unmet in the internet era yet is becoming even more urgent with the advent and increasing use of IoT and AI. The approach focuses on leveraging blockchain technology to provide high-efficiency, reliable yet low-cost certification of ID, credit or data between two individuals (or groups of individuals), between an individual and an object (a device or a piece of equipment) or between two objects, in a bid to redefine the global certification industry and provide a fast, highly efficient and reliable certification platform and related tools, through the setting up of a platform of co-managed blockchain nodes.

DBC, a blockchain technology-driven AI computing platform, is committed to helping AI firms worldwide solve industry challenges, reduce computing costs and protect data privacy.

The partnership between ID Chain and DBC, a win-win cooperation, will facilitate the healthy development of a blockchain ecosystem and promote wide adoption of blockchain-based apps.

For information, please visit ID Chain website: http://www.IDChain.live, or social media outlets:

Twitter: https://twitter.com/idchainid
Facebook:
https://www.facebook.com/ID-Chain-861061720739487  
Reddit:
https://www.reddit.com/user/idchain

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SOURCE ID Chain Foundation

SAN FRANCISCO, Jan. 30, 2018 /PRNewswire-USNewswire/ — Working Capital, an early-stage venture fund, launched today with the goal of accelerating supply chain innovations to enable corporations to operate more transparently and ethically around the world. It was founded by Humanity United, a foundation that is part of The Omidyar Group, a diverse collection of organizations, each guided by its own approach, but united by a common desire to catalyze social impact.

To create this first-of-its-kind fund, Humanity United teamed up with leading brands, foundations, and impact investors that share a commitment for more responsible supply chains. Working Capital operates on a shared vision of building scalable solutions to improve labor practices in the global operations and extended supply chains of multinational corporations. In addition to Humanity United, partners and supporters in the fund include: Walmart Foundation, C&A Foundation, Stardust Equity, Open Society Foundations (Soros Economic Development Fund), The Ray and Dagmar Dolby Family Fund, and The Walt Disney Company. The unique structure of aligning with leading companies as funders helps leverage innovative solutions for sustainable impact in a way that is good for all – consumers, business, and society.

“There is a growing market demand for more transparent and responsible corporate supply chains,” said Ed Marcum, Managing Director at Working Capital. “We see an opportunity to invest in emerging solutions that will meet the demands of large multinational corporations while also benefiting millions of vulnerable workers at the bottom of the economic pyramid.”

The Fund will also leverage support from the UK’s Department for International Development in “sidecar” grant funding for pre-investment and seed-stage interventions.

Led by an experienced team from Humanity United, the Fund has already invested in promising portfolio companies, further demonstrating both the market opportunity for emerging entrepreneurs to develop more innovative solutions, and demand from leading brands to adopt these solutions. Current portfolio companies include:

  • Provenance, a technology platform that uses blockchain to enable brands, suppliers, and stakeholders to trace products along their journey from producer to consumer; and
  • Ulula, a software and data analytics platform that allows organizations to engage with workers in real time to measure and monitor labor-related risks, creating more responsible global supply chains.

Working Capital’s partners and supporters share the Fund’s commitment to reduce worker vulnerability and ensure greater transparency into working conditions.  

“Our aim is to use our strengths in collaboration with others to transform the supply chain systems we rely on, and we are proud to be part of the Working Capital group of partners,” said Kathleen McLaughlin, President of the Walmart Foundation. “We believe in solutions that benefit everyone – from the workers who make the products to the consumers who purchase them, creating a shared value for business and society.”

“C&A Foundation is proud to be an anchor investor in the Working Capital Fund. This unique partnership furthers our goal to end the worst forms of labour exploitation in the apparel industry, and promote accountability through innovative solutions and collaboration with industry players,” said Brandee Butler, Head of Gender Justice & Human Rights of the C&A Foundation. “We believe that gender justice is fundamental to improve conditions for workers and support the Fund’s commitment to gender lens investing to improve outcomes for women, and economic returns for investors.”

To better tackle the various transparency and ethical labor challenges associated with complex supply chains, the Fund focuses on product traceability, worker engagement, sourcing platforms, risk assessment, and ethical recruiting tools by investing in emerging technologies such as blockchain, machine learning, artificial intelligence, digital identity and Internet of Things (IoT) solutions.

About Working Capital

Working Capital is an early stage venture fund that invests in scalable innovations to meet the growing corporate demand for more transparent and ethical supply chains—addressing the urgent need to protect vulnerable workers and source responsibly. It was created by Humanity United, part of The Omidyar Group, a diverse collection of organizations, each guided by its own approach, but united by a common desire to catalyze social impact.

About Humanity United 

Humanity United is a foundation dedicated to bringing new approaches to global problems that have long been considered intractable. We build, lead, and support efforts to change the systems that contribute to problems like human trafficking, mass atrocities, and violent conflict. HU is part of The Omidyar Group, a diverse collection of organizations, each guided by its own approach, but united by a common desire to catalyze social impact.

Media Contact: Liliana Giffen, lgiffen@humanityunited.org, 650-207-3930

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SOURCE Humanity United

BEIJING, Jan. 31, 2018 /PRNewswire/ — Gridsum Holding Inc. (“Gridsum” or the “Company”) (NASDAQ: GSUM), a leading provider of cloud-based big-data analytics and artificial intelligence (“AI”) solutions in China, today announced that it has signed a strategic cooperation framework agreement with Bee® China (“Bee®“), an energy and facility systems consulting and service firm that offers resource efficiency assessment, intelligence and solutions, to jointly develop and implement optimal operation and management strategies in various energy systems, smart campuses and industrial plants.

According to the terms of the strategic cooperation framework agreement, Gridsum and Bee® will leverage each of their competitive strengths to develop Industrial Internet of Things (“IIoT”) solutions that promote and facilitate energy conservation, emission reduction, big data provision, cloud and fog computation and automation platforms, and modernize/optimize resource management for China’s private and public sectors.

Mr. Guosheng Qi, Chief Executive Officer of Gridsum, commented, “I eagerly look forward to working closely with Bee® on developing IIoT solutions that will leverage our deep experience in cloud-based big-data analytics and extensive AI capabilities. This agreement marks another milestone in our IIoT development. It not only grows our presence in China’s IIoT space following our agreement late last year to jointly develop an IIoT cloud platform with Shandong Province and other IIoT engagements, but also demonstrates our effectiveness and strategy to leverage our core technology competence to build highly scalable big data analytics and AI solutions that can be customized and applied in a number of different areas. Both Bee® and Gridsum share similar philosophies and visions which I believe when combined with our respective technology capabilities, will greatly benefit China’s drive to conserve energy and reduce emissions.”

About Bee®

Bee® (Building energy efficiency) was founded in Austin, Texas in 2009 and is an energy system consulting and service firm that offers energy analyses and solutions based on the most rigorous applications of engineering science and art. Its focus is energy efficiency. Every energy consuming system has an optimum operating range. Bee® strives to detect the most economical balance between efficiency, requirements and reliability. Bee® offers clients on-going technical support through its enterprise platform to help maintain the optimum performance of their energy consuming systems. Performance persistence is as important as the initial identification.

Bee® China advocates data-and-technology-driven full life-cycle energy management by incorporating resource management services throughout a system’s entire life-cycle and breaking barriers among stages from planning, design, construction, to operation and maintenance. Moreover, it focuses on integrated management and optimization to achieve optimum and persistent performance and results.

About Gridsum

Gridsum Holding Inc. (NASDAQ: GSUM) is a leading provider of cloud-based big-data analytics and AI solutions for multinational and domestic enterprises and government agencies in China. Gridsum’s core technology, the Gridsum Big Data Platform, is built on a distributed computing framework and performs real-time multi-dimensional correlation analysis of both structured and unstructured data. This enables Gridsum’s customers to identify complex relationships within their data and gain new insights that help them make better business decisions. The Company is named “Gridsum” to symbolize the combination of distributed computing (Grid) and analytics (sum). As a digital intelligence pioneer, the Company’s mission is to help enterprises and government organizations in China use data in new and powerful ways to make better informed decisions and be more productive.

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 “may,” “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations from management in this announcement as well as Gridsum’s strategic and operational plans contain forward-looking statements. Gridsum 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 Gridsum’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: unexpected difficulties in Gridsum’s pursuit of its goals and strategies; the unexpected developments, including slow growth, in the digital intelligence market; reduced demand for, and market acceptance of, Gridsum’s solutions; difficulties keeping and strengthening relationships with customers; potentially costly research and development activities; competitions in the digital intelligence market; PRC governmental policies relating to media, software, big data, the internet, internet content providers and online advertising; and general economic and business conditions in the regions where Gridsum provides solutions and services. Further information regarding these and other risks is included in Gridsum’s reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Gridsum undertakes no duty to update such information except as required under applicable law.

For more information, please visit http://www.gridsum.com/.

Investor Relations

Gridsum 
ir@gridsum.com

Christensen
In China 
Mr. Christian Arnell 
Phone: +86-10-5900-1548 
Email: carnell@christensenir.com 

In U.S. 
Mr. Tip Fleming 
Phone: +1 917 412 3333 
Email: tfleming@christensenir.com

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SOURCE Gridsum Holding Inc.

NORTH LAS VEGAS, Nev., Jan. 31, 2018 /PRNewswire/ — Gaming Partners International Corporation (NASDAQ: GPIC), a worldwide leading provider of casino table products, currency, and radio frequency identification (RFID) solutions, has entered global licensing and development agreements to develop an advanced Automated Table Solution (ATS) with BrainChip Holdings Ltd. (ASX: BRN), a leading developer of accelerated solutions for artificial intelligence (AI) applications, and with Xuvi, LLC, a data science company that uses immersive data analytics and automation for intelligent data-driven decisions.

“We look forward to partnering with GPI to bring table game automation technology to casino operators,” said Arun Rajaraman, CEO at Xuvi. “The combined technology will empower casinos with predictive analytics, real-time and accurate comp decisions, secure table currency, protect table games from fraud, improve productivity, and optimize revenues, all using immersive data analytics and artificial intelligence.”

BrainChip’s President, Louis DiNardo commented, “GPI has very deep expertise in casino game operations, a broad base of existing customers, and a premier global sales and service team that will bring these products to market. Our Artificial Intelligence expertise is well suited to address the challenges of achieving high quality video analytics in the difficult casino environment. We are very excited about this development.”

Greg Gronau, GPI’s President and CEO commented, “With our new Automated Table Solution (ATS), GPI will leverage BrainChip visioning technologies, Xuvi’s immersive data analytics, and GPI’s radio frequency identification to provide currency security, game protection and trend analysis, accurate comping, and marketing automation. GPI acknowledges this is a major step forward in developing the Automated Table Solution.”

About Gaming Partners International Corporation (NASDAQ:GPIC)
GPIC manufactures and supplies casino table game equipment to licensed casinos worldwide. Under the brand names of Paulson®, Bourgogne et Grasset®, Gemaco®, Dolphin® and Bud Jones®, GPIC provides casino currency, including chips, plaques and jetons; playing cards; table layouts; gaming furniture and table accessories; dice; and roulette wheels. GPIC pioneered the use of security features like radio frequency identification device (RFID) technology in casino currency, and offers RFID solutions including RFID readers, software, and displays. Headquartered in North Las Vegas, Nevada, GPIC also has facilities in Beaune, France; San Luis Rio Colorado, Mexico; Blue Springs, Missouri; Atlantic City, New Jersey; Gulfport, Mississippi; and Macau S.A.R., China. For additional information, please visit www.gpigaming.com.

About Xuvi, LLC:
Xuvi, LLC is a Las Vegas, NV based data science company – empowering gaming, retail and hospitality operators with immersive data analytics & automation to engage consumers, increase operational efficiency, and optimize revenues using artificial intelligence. Xuvi’s easy-to-use BeamStudio™ platform (powered by SpendScore™ – a patent-pending guest valuation scoring index) harnesses big data & machine learning to deliver enterprise-wide predictive insights, prescriptive automation, real-time trend detection and optimizes marketing re-investment, guest valuation, equipment and service yield management, staffing levels, inventory levels and fraud prevention.  For more information, visit www.xuvi.com.

About BrainChip Holdings Ltd (ASX:BRN)
BrainChip Holdings Ltd. is a leading provider of software and hardware-accelerated solutions for Advanced artificial intelligence and machine learning applications.  The Company has developed a revolutionary new spiking neural network technology that can learn autonomously, evolve and associate information just like the human brain. The technology, which is proprietary, is fast, completely digital and consumes very low power. The Company provides software and hardware solutions that address the high-performance requirements in civil surveillance, gaming, facial recognition and visual inspection systems. For more information, visit www.brainchipinc.com.

Safe Harbor Statement:
This release contains “forward-looking statements” based on current expectations inherently subject to known and unknown risks and uncertainties, including statements relating to new product offerings; manufacturing capabilities and operational efficiencies; anticipated future sales; the long-term growth and prospects for our business or any jurisdiction in which we operate; and the long term potential of the RFID casino currency solutions market and our ability to capitalize on any such growth opportunities. Actual results or achievements may be materially different from those expressed or implied. Our plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, the timing of and ability to consummate acquisitions, and future business decisions and other risks and uncertainties identified in “Risk Factors” of our Annual Report on Form 10-K for the period ended December 31, 2016; all of which are difficult or impossible to predict accurately, beyond our control, or subject to change. There is no assurance any forward- looking statement will prove to be accurate.

For Further Information, Contact:                        
Gregory S. Gronau, President and Chief Executive Officer
PH: 702.384.2425
FX: 702.384.1965

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SOURCE Gaming Partners International Corporation

SAN JOSE, Calif., Jan. 31, 2018 /PRNewswire/ — Cavium, Inc. (NASDAQ: CAVM), a leading provider of semiconductor products that enable intelligent processing for enterprise, data center, cloud, wired and wireless networking, today announced financial results for the fourth quarter ended December 31, 2017. Due to the pending merger with Marvell Technology Group Ltd. (“Marvell”), the Company will not schedule an earnings conference call.

Net revenue in the fourth quarter of 2017 was $260.4 million, a 3.3% sequential increase from the $252.0 million reported in the third quarter of 2017 and 15.1% from the $226.2 million reported in the fourth quarter of 2016.

Generally Accepted Accounting Principles (GAAP) Results

Net loss for the fourth quarter of 2017 was $1.1 million, or ($0.02) per diluted share, compared to $6.2 million, or ($0.09) per diluted share in the third quarter of 2017. Gross margins were 53.9% in the fourth quarter of 2017 compared to 54.6% in the third quarter of 2017. As a percentage of revenue, GAAP loss from operations was 4.7% in the fourth quarter of 2017 compared to GAAP operating income of 0.2% in the third quarter of 2017. Total cash and cash equivalents were $140.5 million at December 31, 2017.

The GAAP results of operations in the fourth quarter of 2017 included an income tax benefit of $11.1 million as a result of the Company’s preliminary assessment of the impact of the newly enacted U.S. Tax Reform. On December 22, 2017, the United States enacted tax reform legislation through the Tax Cuts and Jobs Act (the “Act”), which significantly changes the existing U.S. tax laws. Major reforms in the legislation include a reduction in the corporate tax rate from 35.0% to 21.0%, and a move from a worldwide tax system to a territorial system. As a result of enactment of the legislation, the Company recognized a tax benefit mentioned above due to the reduction in its net long term deferred tax liabilities recorded on its consolidated balance sheet. Although the Company believes the amount of recognized tax benefit is a reasonable estimate of the income tax effects of the Act, it should be considered provisional and may differ from the amounts that will be reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as the Company continuously refines its assessment of the impact. Further, the final assessment of the impact of the Act may differ due to and among other things, changes in interpretations, assumptions made by the Company, the issuance of additional guidance, and actions the Company may take as a result of tax reform. The SEC has issued rules which allow for a measurement period of up to one year after the enactment date of the Act to finalize the accounting for the related tax impacts. Any adjustments to these provisional amounts will be reported as a component of income tax expense or benefit in the reporting period in which any such adjustments are determined, which will be no later than the fourth quarter of 2018.

Non-GAAP Results                  

Cavium believes that the presentation of non-GAAP financial measures provides important supplemental information to management and investors regarding financial and business trends relating to Cavium’s financial condition and results of operations. Cavium believes that these non-GAAP financial measures provide additional insight into Cavium’s ongoing performance and core operational activities and has chosen to provide these measures for more consistent and meaningful comparison between periods. These measures should only be used to evaluate Cavium’s results of operations in conjunction with the corresponding GAAP measures. The Non-GAAP results exclude the effect of stock-based compensation and related payroll taxes, amortization of acquisition related assets, acquisition related inventory charges, acquisition and integration related costs, tax reform impact and acquisition related tax adjustment. The acquisition and integration related costs in the fourth quarter of 2017 included various transaction-related charges associated with the pending Merger with Marvell, primarily financial advisory and outside legal fees. The reconciliation between GAAP and non-GAAP financial results is provided in the financial statements portion of this release.

In the fourth quarter of 2017, Non-GAAP net income was $60.8 million, or $0.83 per diluted share, Non-GAAP gross margin was 65.2% and Non-GAAP income from operations as a percentage of revenue was 24.2%.

Recent News Highlights                                           

  • January 23, 2018Cavium FastLinQ® Enables Scalable Networking for HyperConverged Infrastructure
  • December 5, 2017Cavium Partners with IBM for Next Generation Platforms by Joining OpenCAPI
  • November 28, 2017Cavium FastLinQ® Delivers Advanced Networking I/O for HPE Gen 10 Servers
  • November 20, 2017Marvell and Cavium to Combine Creating an Infrastructure Solutions Powerhouse
  • November 14, 2017Microsemi Announces Adaptec Smart Storage Adapter Support for Cavium ThunderX2 ARM-Based CPUs
  • November 13, 2017HPE Helps Businesses Capitalize on High Performance Computing and Artificial Intelligence Applications with New High-Density Compute and Storage
  • November 13, 2017Cray Catapults Arm-Based Processors Into Supercomputing
  • November 13, 2017GIGABYTE Announces Production Availability of Cavium’s ThunderX2-based Server Portfolio
  • November 13, 2017Ingrasys Announces Production Systems Based on Cavium’s ThunderX2 Processor
  • November 13, 2017Cavium and Leading Partners to Showcase ThunderX2™ Arm-based Server Platforms and FastLinQ® Ethernet Adapters for High Performance Computing at SC17
  • November 8, 2017Cavium™ ThunderX2 Motherboard Specification for Microsoft’s Project Olympus Contributed to the Open Compute Project
  • November 7, 2017University of Michigan Partners with Cavium™ on Big Data Computing Platform for U-M Researchers

About Cavium

Cavium, Inc. (NASDAQ: CAVM), offers a broad portfolio of infrastructure solutions for compute, security, storage, switching, connectivity and baseband processing. Cavium’s highly integrated multi-core SoC products deliver software compatible solutions across low to high performance points enabling secure and intelligent functionality in Enterprise, Data Center and Service Provider Equipment. Cavium processors and solutions are supported by an extensive ecosystem of operating systems, tools, application stacks, hardware reference-designs and other products. Cavium is headquartered in San Jose, CA with design centers in California, Massachusetts, India, Israel, China and Taiwan. For further information, please visit the investor relations section of the Cavium web site at http://www.cavium.com.

CAVIUM, INC.

Unaudited GAAP Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

Three Months Ended

December 31, 2017

September 30, 2017

Net revenue

$

260,361

$

251,987

Cost of revenue

119,921

114,455

Gross profit

140,440

137,532

Operating expenses:

     Research and development

98,610

93,860

     Sales, general and administrative

53,963

43,184

        Total operating expenses

152,573

137,044

Income (loss) from operations

(12,133)

488

Other income (expense), net:

    Interest expense

(6,468)

(6,493)

    Other, net

75

277

Total other expense, net

(6,393)

(6,216)

     Loss before income taxes

(18,526)

(5,728)

     Provision for (benefit from) income taxes

(17,476)

486

Net loss

$

(1,050)

$

(6,214)

Net loss per common share, basic and diluted

$

(0.02)

$

(0.09)

Shares used in computing basic and diluted net loss per common share

69,044

68,675

 

CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(in thousands, except per share data and percentages)

Three Months Ended

December 31,
2017

September 30,
2017

Reconciliation of GAAP gross profit and margin to non-GAAP:

Net revenue

$

260,361

$

251,987

GAAP gross profit

140,440

137,532

GAAP gross margin

53.9

%

54.6

%

Stock-based compensation and related payroll taxes

887

879

Inventory charges

543

(18)

Amortization of acquisition related assets

27,947

27,947

Non-GAAP gross profit

$

169,817

$

166,340

Non-GAAP gross margin

65.2

%

66.0

%

Reconciliation of GAAP operating expenses to non-GAAP:

GAAP research and development expenses

$

98,610

$

93,860

Stock-based compensation and related payroll taxes

(16,647)

(17,437)

Amortization of acquisition related assets

(646)

(725)

Acquisition and integration related costs

(3,068)

(743)

Non-GAAP research and development expenses

78,249

74,955

GAAP sales, general and administrative expenses

53,963

43,184

Stock-based compensation and related payroll taxes

(8,909)

(9,035)

Amortization of acquisition related assets

(1,280)

(1,278)

Acquisition and integration related costs

(15,108)

(3,997)

Non-GAAP sales, general and administrative expenses

28,666

28,874

Total Non-GAAP operating expenses

$

106,915

$

103,829

Reconciliation of GAAP Income tax to non-GAAP:

GAAP provision for (benefit from) income tax

$

(17,476)

$

486

Tax reform impact and acquisition related tax adjustment

13,232

Non-GAAP provision for (benefit from) income tax

$

(4,244)

$

486

 

CAVIUM, INC.

Unaudited Reconciliation of Non-GAAP Adjustments

(in thousands, except per share data and percentages)

Three Months Ended

December 31,
2017

September 30,
2017

Reconciliation of GAAP income (loss) from operations to non-GAAP income from operations:

GAAP income (loss) from operations

$

(12,133)

$

488

Stock-based compensation and related payroll taxes

26,443

27,351

Inventory charges

543

(18)

Amortization of acquisition related assets

29,873

29,950

Acquisition and integration related costs

18,176

4,740

Non-GAAP income from operations

$

62,902

$

62,511

Non-GAAP income from operations as a percentage of revenue

24.2

%

24.8

%

Reconciliation of GAAP net loss to non-GAAP net income:

GAAP net loss

$

(1,050)

$

(6,214)

Non-GAAP adjustments:

Stock-based compensation and related payroll taxes

26,443

27,351

Inventory charges

543

(18)

Amortization of acquisition related assets

29,873

29,950

Acquisition and integration related costs

18,176

4,740

Tax reform impact and acquisition related tax adjustment

(13,232)

Total of non-GAAP adjustments

61,803

62,023

Non-GAAP net income

$

60,753

$

55,809

GAAP net loss per share, diluted

$

(0.02)

$

(0.09)

Non-GAAP adjustments detailed above

0.85

0.85

Non-GAAP net income per share, diluted

$

0.83

$

0.76

GAAP weighted average shares, diluted

69,044

68,675

Non-GAAP share adjustment

4,190

4,488

Non-GAAP weighted average shares, diluted

73,234

73,163

 

CAVIUM, INC.

Unaudited GAAP Condensed Consolidated Balance Sheets

(in thousands)

As of

December 31, 2017

September 30, 2017

Assets

Current assets

Cash and cash equivalents

$

140,498

$

152,654

Accounts receivable, net

230,143

186,447

Inventories

93,674

94,879

Prepaid expenses and other current assets

22,794

23,510

Total current assets

487,109

457,490

Property and equipment, net

192,515

169,747

Intangible assets, net

664,769

692,994

Goodwill

237,692

237,692

Other assets

7,240

5,757

Total assets

$

1,589,325

$

1,563,680

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

91,318

$

74,207

Accrued expenses and other current liabilities

38,753

44,898

Deferred revenue

9,236

9,501

Current portion of long-term debt

3,270

3,270

Capital lease and technology license obligations

31,435

27,803

Total current liabilities

174,012

159,679

Long-term debt

592,963

593,770

Capital lease and technology license obligations, net of current

15,370

15,025

Deferred tax liability

2,686

16,824

Other non-current liabilities

25,948

25,436

Total liabilities

810,979

810,734

Stockholders’ equity

Common stock

69

69

Additional paid-in capital

1,183,819

1,157,386

Accumulated deficit

(406,352)

(405,302)

Accumulated other comprehensive income

810

793

Total stockholders’ equity

778,346

752,946

Total liabilities and stockholders’ equity

$

1,589,325

$

1,563,680

                      

Cavium, Inc. Logo. (PRNewsFoto/Cavium Networks)

                                                                                                                   

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SOURCE Cavium, Inc.

CARY, N.C., Jan. 31, 2018 /PRNewswire/ — Increased customer demand for artificial intelligence, machine learning, fraud and risk management and cloud solutions strongly influenced continued revenue growth and profitability for SAS in 2017. The analytics leader posted US$3.24 billion in total operating revenue, up 1.25 percent over 2016.

Continued revenue growth and profitability for SAS in 2017.

“The analytics landscape is rapidly changing as organizations find new value in how they use data to gain insights,” said SAS CEO Jim Goodnight. “We are helping our customers be more competitive with disruptive technologies such as analytics for the Internet of Things and artificial intelligence. Successfully innovating new technology and ways to help our customers is why we continue to be the company people turn to for unrivaled analytics expertise and business solutions.”

Strategic growth areas

Last year, Asia Pacific and Latin America saw the highest growth as customers in those regions adopted more strategic uses of analytics. Government, manufacturing, retail and sectors of financial services saw strong momentum. Globally, customers such as American Honda Motor Company, international food conglomerate Cargill, Germany’s Deutsche Telekom, global communications technology company Ericsson and the Chicago Bears rely on SAS® to gain more insights from their data.

As SAS customers sought to better engage with their own clients, the move to real-time customer engagement became more prominent last year. Targeted solutions like SAS Customer Intelligence 360, SAS Marketing Automation and SAS Marketing Optimization continued helping brands take the next best action with analytics, as highlighted by SAS’ leadership ranking in real-time interaction management in 2017.

Revenue associated with the cloud rose 15 percent as customers sought cost-effective and rapid access to SAS software in a convenient cloud environment. Customers also recognized the value of adding SAS’ expertise without the cost of building their own internal teams.

SAS’ investment in risk management is paying off, as new sales in this area grew by 35 percent – an indicator that more companies see value in creating a risk-aware culture to meet regulatory demands and anticipate the impact of their investments. SAS expected credit loss and stress testing solutions go beyond compliance to help companies orchestrate and manage models and analytics for business benefit.

An uptick in SAS capital management risk solutions was driven by continued banking regulatory stress testing regimes and new financial reporting requirements like IFRS 9 and CECL. An increased need to make real-time credit decisions boosted revenue for SAS credit scoring solutions.

The advanced data governance and data quality capabilities offered by SAS Data Integration, which grew at 11 percent, became increasingly important for customers to contend with data protection regulations like GDPR. Hybrid data landscapes, which combine on-premises and cloud data, also required more sophisticated data integration technologies last year.

Shifts in fraud patterns that require more sophisticated detection methods, like machine learning, led to an 11 percent increase in SAS fraud and security solutions. Modernization of anti-money laundering programs and a need for proactive policing also contributed to this growth.

SAS enhanced the artificial intelligence portfolio with new product releases in machine learning, deep learning and natural language processing, enabling faster insights and simplifying the end-to-end solution for businesses. This focus to make machine learning easy to use and provide quick time to value was well received by SAS customers, and contributed to double-digit growth in machine learning last year.

SAS global partnering efforts again influenced more than one-third of new sales. This includes a growing demand for cloud solutions by midmarket customers with a desire to purchase through trusted local partners.

Looking ahead

To strengthen alignment between product and revenue generating operations and carry out plans for growth and strategic investments, SAS appointed Oliver Schabenberger as Chief Operating Officer effective January 1, 2018. He also retains his role as Chief Technology Officer.

“I’m eager to focus on our strategic global direction and investment areas supporting our continued growth in critical and emerging areas,” said Schabenberger. “This includes targeted investments to accelerate growth in core strengths, including artificial intelligence and machine learning, analytics, fraud, risk management, data management and customer intelligence. In addition, we see incredible growth opportunity in IoT and expansions into the midmarket.”

Last year alone, SAS revenue associated with IoT grew by 60 percent. Industry analyst firm IDC estimates the size of the analytics market in IoT will grow to over $23 billion by 2020. An estimated 20.4 billion connected things are projected to be generating massive data volumes by 2020. Capitalizing on this opportunity will require innovation, like SAS Event Stream Processing, which gained tremendous traction in 2017. And SAS has created an IoT division combining R&D and marketing expertise that will continue SAS’ focus on providing edge analytics that add great value to customers’ IoT investments. SAS plans to build out a similar business unit around fraud management.

Looking further ahead in 2018, SAS will continue heavy investment in embedding artificial intelligence across the SAS portfolio. Plans are also underway for a center of excellence to help SAS customers understand and apply artificial intelligence in ways that can transform their businesses and the world around us. For example, in financial services, artificial-intelligence-enabled natural language processing can help unlock new services for customers and revenue streams for businesses. In the energy sector, deep learning tools enabled by artificial intelligence can help maximize investments in renewable energy by optimizing placement of wind farms.

New offerings to enhance the cloud experience with SAS applications will include managed container services for customer infrastructure in public or private clouds.

Continuous innovation sustains market leadership

Analysts continue to laud the company’s innovation and market dominance, naming SAS a leader in predictive and advanced analytics. According to IDC[1], SAS holds a 30.5 percent share of the advanced and predictive analytics market, well over twice the market share of the next-closest competitor. SAS has led – and grown – in this category since IDC started tracking the market in 1997. In 2017, analysts also named SAS a leader in streaming analytics, machine learning, big data, data science platforms, real-time marketing, data integration, data quality, fraud detection, risk management and retail analytics. 

“When it comes to driving the business on data and analytics, everyone has high expectations,” said SAS Chief Marketing Officer Randy Guard. “SAS delivers a platform that addresses the full analytics life cycle – data, discovery and deployment of decisions. Along with the openness that the SAS Platform offers, we enable our customers to bring their data and analytics together across their entire data science community.”

Maintaining market leadership is heavily dependent upon innovation. Year after year, SAS reinvests about twice the average of major technology firms into R&D – 26 percent in 2017. This investment supported the addition of artificial intelligence capabilities to the SAS Platform. And enhancements to SAS® Viya® extend the SAS Platform to deliver additional capabilities for analytics-driven organizations, including Cisco, the American Red Cross, Munich Re and Lockheed Martin. This modernization appeals to a growing number of SAS Viya adopters seeking to bring together all their analytics assets, and unite SAS with open source interfaces and languages.

Champion for education, sustainability and inclusivity

In addition to business success, SAS has always put a heavy emphasis on making a difference in the world. Last year, efforts around education, sustainability and data for good landed SAS on Fortune’s 2017 list of companies that “Change the World.”

SAS is deeply committed to developing the next generation of innovators through education, and makes it easy to build coveted analytics skills by targeting worldwide education initiatives in STEM. SAS University Edition provides free access to SAS software so anyone can learn how to analyze data. Thousands of professors, students and researchers take advantage of free, cloud-based SAS OnDemand for Academics. Downloads and registrations of these two products have reached nearly 1.5 million.

From helping tackle opioid addiction and safeguarding vulnerable children to protecting fragile species through conservation efforts, SAS’ deep bench of analytics solutions change the world by analyzing data to solve critical humanitarian issues. Expanding on our social innovation efforts, SAS introduced GatherIQ™ – a crowdsourcing initiative bringing together volunteers to solve social challenges. The GatherIQ app has been downloaded by people from 69 countries who want to use data for good.

SAS fosters an award-winning, sustainable workplace that has a positive impact on our future. The company reduces its environmental footprint with programs focused on energy conservation and solar projects, emission management, pollution mitigation, water conservation, waste reduction and recycling, procurement and green building.

Such passion for doing good ignites employees’ creativity and gives them the opportunity to effect change. Continually recognized for providing an enriching work environment, SAS remains a staple on best workplaces lists around the world. SAS is also considered a best workplace for diversity and inclusivity, women and gender equity, as well as a top company for millennials, recent grads and IT professionals.

About SAS 
SAS is the leader in analytics. Through innovative software and services, SAS empowers and inspires customers around the world to transform data into intelligence. SAS gives you THE POWER TO KNOW®.

SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2018 SAS Institute Inc. All rights reserved.

[1]IDC, Worldwide Business Intelligence and Analytics Tools Software Market Shares, 2016: Here Comes the Cloud (Doc # US42072417, June 2017)

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SOURCE SAS

LOS ANGELES, Jan. 31, 2018 /PRNewswire/ — Aurga, an experienced group of engineers, product designers, and photographers from QS-Tech, has announced a crowdfunding campaign for the worldwide launch of Aurga Smart Camera Assistant and Personal Cloud Storage for DSLRs. Aurga is the ultimate camera assistant for everyone. 

With Aurga, photographers can wirelessly control their cameras with an iOS or Android smartphone remotely from up to 100 feet away. The Artificial Intelligence enabled auto-configuration to measure the existing shooting conditions and automatically set optimal camera settings to capture extraordinary photos anytime and every time.  Users can master different types of photography such as HDR, time-lapse, portraits and action photos.

Aurga works by detecting the ambient lighting conditions and then compares thousands of photographs in a database to determine the optimal settings for similar shots and to tune the camera for better images. The advanced AI system learns and improves with each use and has simple modes that help beginners achieve amazing photos with the touch of a single button. For more advanced users, Manual Mode allows for fine-tuning of Shutter, Aperture, ISO and more. 

In addition to helping photographers of all levels improve their results, it adds convenient cloud storage and automatic Wi-Fi transfer and backup to safely and quickly store images on a home computer or in the cloud. Keeping social in mind, Aurga also makes it easy to share photos with friends and family right from the smartphone app.

Aurga is currently being introduced with special deals and discounts on Kickstarter to reward early adopters with prices starting at $69 USD. You can find more details Here.

Media Contact: 

Email: Andy@gadget-labs.com

Related Images

image1.png
Aurga Camera Assistant & Your Personal Cloud Storage

image2.jpg

image3.png

image4.png

Related Video

http://www.youtube.com/watch?v=XMVAL6B4VDk

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SOURCE QS-Tech

Total Revenue of $734 Million, up 35% Y/Y

Operating Cash Flows of $167 Million, up 148% Q/Q, up 56% Y/Y

Madhu Ranganathan to Join OpenText as CFO; John Doolittle to Complete Four Successful Years

WATERLOO, Ontario, Jan. 31, 2018 /PRNewswire/ — Open Text Corporation (NASDAQ: OTEX, TSX: OTEX), “The Information Company,” today announced its financial results for the second quarter ended December 31, 2017.

“OpenText’s Fiscal Year 2018 Q2 results represent the power of the OpenText Business System: our strategic focus on M&A, functional integration, operational excellence and innovation.  The company delivered 35% year-over-year revenue growth, adjusted operating margin of 36.5%, and operating cash flows of $167 million,” said Mark Barrenechea, OpenText Vice Chairman, CEO & CTO.  “Our Annual Recurring Revenues (ARR) were strong at $516 million or 31% year-over-year growth; we also had solid organic growth within the quarter.”

“With ECD now on our adjusted operating model and the integration complete, our energy turns to our go-to-market initiatives for calendar year 2018.  These go-to-market initiatives include cross-selling, expanded partner footprint and new offerings.  We also see increasing demand in our Enterprise Information Management (EIM) product suite, including Security and AI products,” said Barrenechea.  “Mergers and Acquisitions continue to be our leading growth driver and by utilizing the OpenText Business System, we are well positioned for future M&A opportunities within the EIM market.”

Barrenechea further added, “We are introducing a 2021 adjusted operating margin target range of 36% to 40%, up from our previously stated 2020 target range of 34% to 38%.”

Financial Highlights for Q2 Fiscal 2018 with Year Over Year Comparisons

Summary of Quarterly Results

(in millions except per share data)

Q2 FY18

Q2 FY17

$ Change

% Change
(Y/Y)

Q2 FY18 in
CC*

% Change
in CC*

Revenues:

Cloud services and subscriptions

$208.1

$175.1

$33.1

18.9

%

$207.2

18.3

%

Customer support

308.1

219.7

88.4

40.3

%

301.2

37.1

%

Total annual recurring revenues**

$516.2

$394.7

$121.5

30.8

%

$508.4

28.8

%

License

135.2

97.8

37.5

38.3

%

130.6

33.6

%

Professional service and other

83.0

50.2

32.7

65.2

%

80.9

61.0

%

Total revenues

$734.4

$542.7

$191.7

35.3

%

$719.8

32.6

%

GAAP-based operating income

$166.6

$107.2

$59.5

55.5

%

Non-GAAP-based operating income (1)

$267.9

$184.5

$83.4

45.2

%

$262.0

42.0

%

GAAP-based operating margin

22.7

%

19.7

%

n/a

300

bps

Non-GAAP-based operating margin (1)

36.5

%

34.0

%

n/a

250

bps

36.4

%

240

bps

GAAP-based EPS, diluted (2)

$0.32

$0.18

$0.14

77.8

%

Non-GAAP-based EPS, diluted (1)(3)

$0.76

$0.54

$0.22

40.7

%

$0.74

37.0

%

GAAP-based net income attributable to OpenText (2)

$85.1

$45.0

$40.1

89.0

%

Adjusted EBITDA (1)

$290.1

$199.8

$90.3

45.2

%

Operating cash flows

$166.6

$107.0

$59.6

55.7

%

 

Summary of YTD Results

(in millions except per share data)

FY18 YTD

FY17 YTD

$ Change

% Change

(Y/Y)

FY18 YTD in
CC*

% Change
in CC*

Revenues:

Cloud services and subscriptions

$402.0

$344.7

$57.2

16.6

%

$402.0

16.6

%

Customer support

603.5

429.9

173.6

40.4

%

593.5

38.1

%

Total annual recurring revenues**

$1,005.4

$774.6

$230.8

29.8

%

$995.4

28.5

%

License

213.5

158.4

55.1

34.8

%

207.8

31.2

%

Professional service and other

156.2

101.3

54.8

54.1

%

152.5

50.5

%

Total revenues

$1,375.1

$1,034.4

$340.7

32.9

%

$1,355.7

31.1

%

GAAP-based operating income

$253.7

$181.2

$72.5

40.0

%

Non-GAAP-based operating income (1)

$469.0

$335.9

$133.1

39.6

%

$460.9

37.2

%

GAAP-based operating margin

18.5

%

17.5

%

n/a

100

bps

Non-GAAP-based operating margin (1)

34.1

%

32.5

%

n/a

160

bps

34.0

%

150

bps

GAAP-based EPS, diluted (2)

$0.46

$3.89

($3.43)

(88.2)

%

Non-GAAP-based EPS, diluted (1)(3)

$1.30

$0.97

$0.33

34.0

%

$1.27

30.9

%

GAAP-based net income attributable to OpenText (2)

$121.7

$957.9

($836.2)

(87.3)

%

Adjusted EBITDA (1)

$510.1

$366.4

$143.6

39.2

%

Operating cash flows

$233.7

$180.5

$53.3

29.5

%

(1)

Please see note 2 “Use of Non-GAAP Financial Measures” below

(2)

Recorded a significant tax benefit in Q1 FY17 of $876.1 million. This significant tax benefit is specifically tied to the Company’s internal reorganization and applied to Q1 FY17 only and as a result does not continue in future periods.

(3)

Please also see note 14 to the Company’s Condensed Consolidated Financial Statements on Form 10-Q. Reflective of the amount of net tax benefit arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period.

Note:

Individual line items in tables may be adjusted by non-material amounts to enable totals to align to published financial statements.

*CC: Constant currency for this purpose is defined as the current period reported revenues/expenses/earnings represented at the prior comparative period’s foreign exchange rate.

**Annual recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Customer support revenue.

“We delivered very strong margins in the quarter with a significant increase in operating cash flow,” said John Doolittle, OpenText CFO. “Our gross leverage ratio has significantly improved and it is now below 3.0 times.  With a strengthening balance sheet and growing adjusted EBITDA, OpenText is well positioned for future growth initiatives.”

Madhu Ranganathan to Join OpenText as CFO; John Doolittle to Complete Four Successful Years

OpenText also announced today that Madhu Ranganathan, CFO at [24]7.ai (www.247.ai), a leading company for AI and Customer Experience Software, will join OpenText as EVP and CFO, effective April 2, 2018.  John Doolittle will continue as CFO until April 2, 2018, and will remain with the Company until September 2018, ensuring a successful transition. 

“I am very pleased to welcome Madhu Ranganathan to OpenText, a Silicon Valley veteran and a highly experienced global finance executive. Madhu brings over 25 years of strategic and financial leadership experience with deep operational focus in software, hardware & tech-enabled services businesses,” said Mark J. Barrenechea, OpenText Vice Chairman, CEO and CTO. 

Madhu Ranganathan, formerly with PriceWaterhouse LLP, holds an MBA in Finance from the University of Massachusetts, is a Certified Public Accountant and a Chartered Accountant (India).

“I would like to thank John for his four years of great service to OpenText, and recognize his commitment to a significant transition period. I wish him all the best in his continued journey,” added Mark J. Barrenechea.

“After four successful years, I have accomplished the objectives Mark and I initially set out,” said John Doolittle, EVP & CFO of OpenText.  “I will work closely with Mark, Madhu and the senior management team to ensure a successful transition.”

OpenText Quarterly Business Highlights

  • OpenText added to S&P/TSX 60 Index
  • 30 customer transactions over $1 million, 14 OpenText Cloud and 16 on-premise
  • Financial, Consumer Goods, Services, Technology and Public Sector industries saw the most demand in cloud and license
  • Customer wins in the quarter included Tata Consultancy Services, Canon Electronics, WTC Captive Insurance Company, gkv informatik, TAFE Queensland, Peabody, Pandora Media, Helaba Invest, Air France-KLM, ConvaTec, County of Los Angeles, OCHIN, Zurn, US WorldMeds, Syngene, Adif, Informática del Ayuntamiento de Madrid, Transports Metropolitans de Barcelona, OILES Corporation, FreightVerify, Nifco Inc.,Campari Group, Froneri International, Malakoff Médéric, MetaSource, Opel Automobile GmbH, Broadcom Limited, Zodiac Aerospace, A1 and Elcom
  • OpenText expands operations in India and announces on-going investment in people, infrastructure and customers

Dividend Program Highlights

Cash Dividend
As part of our quarterly, non-cumulative cash dividend program, the Board declared on January 30, 2018 a cash dividend of $0.132 per common share. The record date for this dividend is March 2, 2018 and the payment date is March 23, 2018. Future declarations of dividends and the establishment of future record and payment dates are subject to the final determination and discretion of the Board of Directors.

Summary of Quarterly Results

Q2 FY18

Q1 FY18

Q2 FY17

% Change

(Q2 FY18 vs
Q1 FY18)

% Change

(Q2 FY18 vs
Q2 FY17)

Revenue (million)

$734.4

$640.7

$542.7

14.6

%

35.3

%

GAAP-based gross margin

67.3

%

65.1

%

69.0

%

220

bps

(170)

Bps

GAAP-based operating margin

22.7

%

13.6

%

19.7

%

910

bps

300

Bps

GAAP-based EPS, diluted(1)

$0.32

$0.14

$0.18

128.6

%

77.8

%

Non-GAAP-based gross margin (2)

73.9

%

72.2

%

73.8

%

170

bps

10

Bps

Non-GAAP-based operating margin (2)

36.5

%

31.4

%

34.0

%

510

bps

250

Bps

Non-GAAP-based EPS, diluted (2)(3)

$0.76

$0.54

$0.54

40.7

%

40.7

%

 

Summary of Year to Date Results

Q2 FY18 YTD

Q2 FY17 YTD

% Change

Revenue (million)

$1,375.1

$1,034.4

32.9

%

GAAP-based gross margin

66.3

%

67.9

%

(160)

Bps

GAAP-based operating margin

18.5

%

17.5

%

100

Bps

GAAP-based EPS, diluted(1)

$0.46

$3.89

(88.2)

%

Non-GAAP-based gross margin (2)

73.1

%

72.7

%

40

Bps

Non-GAAP-based operating margin (2)

34.1

%

32.5

%

160

Bps

Non-GAAP-based EPS, diluted (2)(3)

$1.30

$0.97

34.0

%

(1)

Recorded a significant tax benefit in Q1 FY17 of $876.1 million. This significant tax benefit is specifically tied to the Company’s internal reorganization and applied to Q1 FY17 only and as a result does not continue in future periods.

(2)

Please see note 2 “Use of Non-GAAP Financial Measures” below

(3)

Please also see note 14 to the Company’s Condensed Consolidated Financial Statements on Form 10-Q. Reflective of the amount of net tax benefit arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period.

Conference Call Information

The public is invited to listen to the earnings conference call today at 5:00 p.m. ET (2:00 p.m. PT) by dialing 1-800-319-4610 (toll-free) or +1-604-638-5340 (international). Please dial-in 10 minutes ahead of time to ensure proper connection. Alternatively, a live webcast of the earnings conference call will be available on the Investor Relations section of the Company’s website at http://investors.opentext.com/investor-events-and-presentations.

A replay of the call will be available beginning January 31, 2018 at 7:00 p.m. ET through 11:59 p.m. on February 14, 2018 and can be accessed by dialing 1-855-669-9658 (toll-free) or +1-604-674-8052 (international) and using passcode 1966 followed by the number sign.

Please see below note (2) for a reconciliation of U.S. GAAP-based financial measures used in this press release, to non-U.S. GAAP-based financial measures.

About OpenText

OpenText, The Information Company™, a market leader in Enterprise Information Management software and solutions, enabling companies to manage, leverage, secure and gain insight into their enterprise information, on premises or in the cloud. For more information about OpenText (NASDAQ/TSX: OTEX) visit www.opentext.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this press release, including statements about the focus of Open Text Corporation (“OpenText” or “the Company”) in our fiscal year ending June 30, 2018 (Fiscal 2018) on growth in earnings and cash flows, creating value through investments in broader Enterprise Information Management (EIM) capabilities, distribution, the Company’s presence in the cloud and in growth markets, expected growth in our revenue lines, expected ECD Business revenue contributions, adjusted operating income and cash flow, its financial condition, the adjusted operating margin target range, results of operations and earnings, announced acquisitions, ongoing tax matters, the integration of the acquired businesses, expected timing, charges and savings related to restructuring activities, declaration of quarterly dividends, future tax rates, new platform and product offerings and other matters, may contain words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “may”, “could”, “would”, “might”, “will” and variations of these words or similar expressions are considered forward-looking statements or information under applicable securities laws. In addition, any information or statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking, and based on our current expectations, forecasts and projections about the operating environment, economies and markets in which we operate. Forward-looking statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances, such as certain assumptions about the economy, as well as market, financial and operational assumptions. Management’s estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. We can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Such forward-looking statements involve known and unknown risks, uncertainties and other factors and assumptions that may cause the actual results, performance or achievements to differ materially. Such factors include, but are not limited to: (i) the future performance, financial and otherwise, of OpenText; (ii) the ability of OpenText to bring new products and services to market and to increase sales; (iii) the strength of the Company’s product development pipeline; (iv) the Company’s growth and profitability prospects; (v) the estimated size and growth prospects of the EIM market including expected growth in the Artificial Intelligence market; (vi) the Company’s competitive position in the EIM market and its ability to take advantage of future opportunities in this market; (vii) the benefits of the Company’s products and services to be realized by customers; (viii) the demand for the Company’s products and services and the extent of deployment of the Company’s products and services in the EIM marketplace; (ix) downward pressure on our share price and dilutive effect of future sales or issuances of equity securities (including in connection with future acquisitions); (x) the Company’s financial condition and capital requirements; and (xi) statements about the impact of product releases. The risks and uncertainties that may affect forward-looking statements include, but are not limited to: (i) integration of acquisitions and related restructuring efforts, including the quantum of restructuring charges and the timing thereof; (ii) the potential for the incurrence of or assumption of debt in connection with acquisitions and the impact on the ratings or outlooks of rating agencies on the Company’s outstanding debt securities; (iii) the possibility that the Company may be unable to meet its future reporting requirements under the U.S. Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder, or applicable Canadian securities regulation; (iv) the risks associated with bringing new products and services to market; (v) fluctuations in currency exchange rates; (vi) delays in the purchasing decisions of the Company’s customers; (vii) the competition the Company faces in its industry and/or marketplace; (viii) the final determination of litigation, tax audits (including tax examinations in the United States and elsewhere) and other legal proceedings; (ix) potential exposure to greater than anticipated tax liabilities or expenses, including with respect to changes in Canadian, U.S. or international tax regimes including the new tax reform legislation enacted through the Tax Cuts and Jobs Act in the United States; (x) the possibility of technical, logistical or planning issues in connection with the deployment of the Company’s products or services; (xi) the continuous commitment of the Company’s customers; and (xii) demand for the Company’s products and services. For additional information with respect to risks and other factors which could occur, see the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the Securities and Exchange Commission (SEC) and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact:

Greg Secord
Vice President, Investor Relations
Open Text Corporation
415-963-0825
investors@opentext.com

OTEX-F

Copyright ©2018 Open Text. OpenText is a trademark or registered trademark of Open Text. The list of trademarks is not exhaustive of other trademarks. Registered trademarks, product names, company names, brands and service names mentioned herein are property of Open Text. All rights reserved. For more information, visit: http://www.opentext.com/who-we-are/copyright-information.

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars, except share data)

December 31, 2017

June 30, 2017

ASSETS

(unaudited)

Cash and cash equivalents

$

476,014

$

443,357

Accounts receivable trade, net of allowance for doubtful accounts of $8,503 as of December 31, 2017 and $6,319 as of June 30, 2017

511,969

445,812

Income taxes recoverable

23,861

32,683

Prepaid expenses and other current assets

101,063

81,625

Total current assets

1,112,907

1,003,477

Property and equipment

260,896

227,418

Goodwill

3,578,976

3,416,749

Acquired intangible assets

1,468,378

1,472,542

Deferred tax assets

1,158,836

1,215,712

Other assets

96,612

93,763

Deferred charges

39,204

42,344

Long-term income taxes recoverable

23,412

8,557

Total assets

$

7,739,221

$

7,480,562

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable and accrued liabilities

$

318,008

$

342,120

Current portion of long-term debt

382,760

182,760

Deferred revenues

557,873

570,328

Income taxes payable

30,084

31,835

Total current liabilities

1,288,725

1,127,043

Long-term liabilities:

Accrued liabilities

47,379

50,338

Deferred credits

4,005

5,283

Pension liability

62,213

58,627

Long-term debt

2,385,709

2,387,057

Deferred revenues

68,934

61,678

Long-term income taxes payable

176,222

162,493

Deferred tax liabilities

77,182

94,724

Total long-term liabilities

2,821,644

2,820,200

Shareholders’ equity:

Share capital and additional paid-in capital

265,625,515 and 264,059,567 Common Shares issued and outstanding at December 31, 2017 and June 30, 2017, respectively; authorized Common Shares: unlimited

1,650,217

1,613,454

Accumulated other comprehensive income

47,521

48,800

Retained earnings

1,949,503

1,897,624

Treasury stock, at cost (714,169 shares at December 31, 2017 and 1,101,612 at June 30, 2017, respectively)

(19,250)

(27,520)

Total OpenText shareholders’ equity

3,627,991

3,532,358

Non-controlling interests

861

961

Total shareholders’ equity

3,628,852

3,533,319

Total liabilities and shareholders’ equity

$

7,739,221

$

7,480,562

 

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. dollars, except share and per share data)

(unaudited)

Three Months Ended December 31,

Six Months Ended December 31,

2017

2016

2017

2016

Revenues:

License

$

135,244

$

97,764

$

213,475

$

158,420

Cloud services and subscriptions

208,121

175,061

401,974

344,748

Customer support

308,070

219,656

603,474

429,862

Professional service and other

82,970

50,228

156,169

101,343

Total revenues

734,405

542,709

1,375,092

1,034,373

Cost of revenues:

License

4,587

2,391

7,547

6,236

Cloud services and subscriptions

90,418

73,150

174,748

143,442

Customer support

33,194

27,349

65,985

53,087

Professional service and other

64,985

40,295

124,444

81,638

Amortization of acquired technology-based intangible assets

47,128

24,848

91,088

47,983

Total cost of revenues

240,312

168,033

463,812

332,386

Gross profit

494,093

374,676

911,280

701,987

Operating expenses:

Research and development

80,304

64,721

157,933

123,293

Sales and marketing

129,142

102,651

251,964

197,799

General and administrative

48,985

39,914

97,900

78,111

Depreciation

22,071

15,301

40,949

30,571

Amortization of acquired customer-based intangible assets

46,268

33,815

90,057

67,423

Special charges

715

11,117

18,746

23,571

Total operating expenses

327,485

267,519

657,549

520,768

Income from operations

166,608

107,157

253,731

181,219

Other income (expense), net

5,547

(3,558)

15,771

3,141

Interest and other related expense, net

(34,092)

(27,743)

(67,380)

(55,018)

Income before income taxes

138,063

75,856

202,122

129,342

Provision for (recovery of) income taxes

53,146

30,822

80,515

(828,603)

Net income for the period

$

84,917

$

45,034

$

121,607

$

957,945

Net (income) loss attributable to non-controlling interests

194

(12)

100

(39)

Net income attributable to OpenText

$

85,111

$

45,022

$

121,707

$

957,906

Earnings per share—basic attributable to OpenText

$

0.32

$

0.18

$

0.46

$

3.92

Earnings per share—diluted attributable to OpenText

$

0.32

$

0.18

$

0.46

$

3.89

Weighted average number of Common Shares outstanding—basic

265,504

245,653

265,153

244,282

Weighted average number of Common Shares outstanding—diluted

266,857

247,501

266,549

246,123

Dividends declared per Common Share

$

0.1320

$

0.1150

$

0.2640

$

0.2300

 

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

(unaudited)

Three Months Ended December 31,

Six Months Ended December 31,

2017

2016

2017

2016

Net income for the period

$

84,917

$

45,034

$

121,607

$

957,945

Other comprehensive income (loss) —net of tax:

Net foreign currency translation adjustments

(1,446)

(11,526)

(540)

(10,307)

Unrealized gain (loss) on cash flow hedges:

Unrealized gain (loss) – net of tax expense (recovery) effect of ($60) and ($252) for the three months ended December 31, 2017 and 2016, respectively; $403 and ($380) for the six months ended December 31, 2017 and 2016, respectively

(168)

(698)

1,117

(1,053)

(Gain) loss reclassified into net income – net of tax (expense) recovery effect of ($141) and ($33) for the three months ended December 31, 2017 and 2016, respectively; ($428) and ($38) for the six months ended December 31, 2017 and 2016, respectively

(391)

(91)

(1,188)

(108)

Actuarial gain (loss) relating to defined benefit pension plans:

Actuarial gain (loss) – net of tax expense (recovery) effect of ($153) and $1,077 for the three months ended December 31, 2017 and 2016, respectively; ($236) and $484 for the six months ended December 31, 2017 and 2016, respectively

(48)

2,823

(163)

4,361

Amortization of actuarial (gain) loss into net income – net of tax (expense) recovery effect of $43 and $57 for the three months ended December 31, 2017 and 2016, respectively; $85 and $119 for the six months ended December 31, 2017 and 2016, respectively

56

134

112

281

Unrealized net gain (loss) on marketable securities – net of tax effect of nil for the three and six months ended December 31, 2017 and 2016, respectively

512

400

Release of unrealized gain on marketable securities – net of tax effect of nil for the three and six months ended December 31, 2017 and 2016, respectively

(617)

Total other comprehensive income (loss) net, for the period

(1,997)

(8,846)

(1,279)

(6,426)

Total comprehensive income

82,920

36,188

120,328

951,519

Comprehensive (income) loss attributable to non-controlling interests

194

(12)

100

(39)

Total comprehensive income attributable to OpenText

$

83,114

$

36,176

$

120,428

$

951,480

 

OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(unaudited)

Three Months Ended December 31,

Six Months Ended December 31,

2017

2016

2017

2016

Cash flows from operating activities:

Net income for the period

$

84,917

$

45,034

$

121,607

$

957,945

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of intangible assets

115,467

73,964

222,094

145,977

Share-based compensation expense

7,158

7,572

15,393

15,712

Excess tax expense (benefits) on share-based compensation expense

(537)

(542)

Pension expense

834

871

1,869

2,061

Amortization of debt issuance costs

1,234

1,331

2,532

2,654

Amortization of deferred charges and credits

1,117

2,146

2,234

4,292

Loss on sale and write down of property and equipment

163

Release of unrealized gain on marketable securities to income

(841)

Deferred taxes

38,427

7,591

44,374

(868,233)

Share in net (income) loss of equity investees

(316)

(464)

196

(5,993)

Other non-cash charges

1,033

Changes in operating assets and liabilities:

Accounts receivable

(54,620)

(15,713)

(49,458)

456

Prepaid expenses and other current assets

(2,575)

13,074

(5,383)

11,885

Income taxes and deferred charges and credits

(7,565)

(12,841)

1,583

(9,620)

Accounts payable and accrued liabilities

(8,023)

6,604

(72,499)

(23,995)

Deferred revenue

(10,366)

(21,633)

(48,846)

(47,742)

Other assets

958

20

(1,269)

(5,420)

Net cash provided by operating activities

166,647

107,019

233,749

180,470

Cash flows from investing activities:

Additions of property and equipment

(25,488)

(11,609)

(55,937)

(32,274)

Proceeds from maturity of short-term investments

9,212

Purchase of Guidance Software,  net of cash acquired

(8,510)

(229,275)

Purchase of Covisint Corporation, net of cash acquired

(71,279)

Purchase of HP Inc. CCM Business

(2,802)

(315,000)

Purchase of Recommind, Inc.

(170,107)

Purchase of HP Inc. CEM Business

(7,289)

Purchase consideration for acquisitions completed prior to Fiscal 2017

143

143

Other investing activities

(3,855)

(440)

(8,061)

(563)

Net cash used in investing activities

(37,853)

(14,708)

(364,552)

(515,878)

Cash flows from financing activities:

Excess tax (expense) benefits on share-based compensation expense

537

542

Proceeds from issuance of long-term debt and revolver

256,875

200,000

256,875

Proceeds from issuance of Common Shares from exercise of stock options and ESPP

7,797

5,391

29,622

10,701

Proceeds from issuance of Common shares under public Equity Offering

604,223

604,223

Repayment of long-term debt and revolver

(1,940)

(2,000)

(3,880)

(4,000)

Debt issuance costs

(2,825)

(4,155)

Equity issuance costs

(18,127)

(18,127)

Payments of dividends to shareholders

(34,811)

(27,859)

(69,828)

(55,650)

Net cash provided by (used in) financing activities

(28,954)

816,215

155,914

790,409

Foreign exchange gain (loss) on cash held in foreign currencies

(216)

(20,979)

7,546

(16,267)

Increase (decrease) in cash and cash equivalents during the period

99,624

887,547

32,657

438,734

Cash and cash equivalents at beginning of the period

376,390

834,944

443,357

1,283,757

Cash and cash equivalents at end of the period

$

476,014

$

1,722,491

$

476,014

$

1,722,491

Notes

(1)

All dollar amounts in this press release are in U.S. Dollars unless otherwise indicated.

(2)

Use of Non-GAAP Financial Measures: In addition to reporting financial results in accordance with U.S. GAAP, the Company provides certain financial measures that are not in accordance with U.S. GAAP (Non-GAAP). These Non-GAAP financial measures have certain limitations in that they do not have a standardized meaning and thus the Company’s definition may be different from similar Non-GAAP financial measures used by other companies and/or analysts and may differ from period to period. Thus it may be more difficult to compare the Company’s financial performance to that of other companies. However, the Company’s management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of these Non-GAAP financial measures both in its reconciliation to the U.S. GAAP financial measures and its consolidated financial statements, all of which should be considered when evaluating the Company’s results.

The Company uses these Non-GAAP financial measures to supplement the information provided in its consolidated financial statements, which are presented in accordance with U.S. GAAP. The presentation of Non-GAAP financial measures are not meant to be a substitute for financial measures presented in accordance with U.S. GAAP, but rather should be evaluated in conjunction with and as a supplement to such U.S. GAAP measures. OpenText strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. The Company therefore believes that despite these limitations, it is appropriate to supplement the disclosure of the U.S. GAAP measures with certain Non-GAAP measures defined below.

Non-GAAP-based net income and Non-GAAP-based EPS, attributable to OpenText, are calculated as GAAP-based net income or earnings per share, attributable to OpenText, on a diluted basis, after giving effect to the amortization of acquired intangible assets, other income (expense), share-based compensation, and Special charges (recoveries), all net of tax and any tax benefits/expense items unrelated to current period income, as further described in the tables below. Non-GAAP-based gross profit is the arithmetical sum of GAAP-based gross profit and the amortization of acquired technology-based intangible assets and share-based compensation within cost of sales. Non-GAAP-based gross margin is calculated as Non-GAAP-based gross profit expressed as a percentage of total revenue. Non-GAAP-based income from operations is calculated as income from operations, excluding the amortization of acquired intangible assets, Special charges (recoveries), and share-based compensation expense. Non-GAAP-based operating margin is calculated as Non-GAAP-based income from operations expressed as a percentage of total revenue.

Adjusted earnings (loss) before interest, taxes, depreciation and amortization (Adjusted EBITDA) is calculated as GAAP-based net income, attributable to OpenText, excluding interest income (expense), provision for income taxes, depreciation and amortization of acquired intangible assets, other income (expense), share-based compensation and Special charges (recoveries).

The Company’s management believes that the presentation of the above defined Non-GAAP financial measures provides useful information to investors because they portray the financial results of the Company before the impact of certain non-operational charges. The use of the term “non-operational charge” is defined for this purpose as an expense that does not impact the ongoing operating decisions taken by the Company’s management and is based upon the way the Company’s management evaluates the performance of the Company’s business for use in the Company’s internal reports. In the course of such evaluation and for the purpose of making operating decisions, the Company’s management excludes certain items from its analysis, including amortization of acquired intangible assets, Special charges (recoveries), share-based compensation, other income (expense), and the taxation impact of these items. These items are excluded based upon the manner in which management evaluates the business of the Company and are not excluded in the sense that they may be used under U.S. GAAP.

The Company believes the provision of supplemental Non-GAAP measures allow investors to evaluate the operational and financial performance of the Company’s core business using the same evaluation measures that management uses, and is therefore a useful indication of OpenText’s performance or expected performance of future operations and facilitates period-to-period comparison of operating performance (although prior performance is not necessarily indicative of future performance). As a result, the Company considers it appropriate and reasonable to provide, in addition to U.S. GAAP measures, supplementary Non-GAAP financial measures that exclude certain items from the presentation of its financial results.

The following charts provide (unaudited) reconciliations of U.S. GAAP-based financial measures to Non-U.S. GAAP-based financial measures for the following periods presented:

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended December 31, 2017.

(In thousands except for per share amounts)

Three Months Ended December 31, 2017

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues

Cloud services and subscriptions

$

90,418

$

(462)

(1)

$

89,956

Customer support

33,194

(327)

(1)

32,867

Professional service and other

64,985

(603)

(1)

64,382

Amortization of acquired technology-based intangible assets

47,128

(47,128)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

494,093

67.3

%

48,520

(3)

542,613

73.9

%

Operating expenses

Research and development

80,304

(1,587)

(1)

78,717

Sales and marketing

129,142

(2,095)

(1)

127,047

General and administrative

48,985

(2,084)

(1)

46,901

Amortization of acquired customer-based intangible assets

46,268

(46,268)

(2)

Special charges (recoveries)

715

(715)

(4)

GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

166,608

22.7

%

101,269

(5)

267,877

36.5

%

Other income (expense), net

5,547

(5,547)

(6)

Provision for (recovery of) income taxes

53,146

(22,095)

(7)

31,051

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

85,111

117,817

(8)

202,928

GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText

$

0.32

$

0.44

(8)

$

0.76

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 38% and a Non-GAAP-based tax rate of approximately 13%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 13%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense. In addition, as a result of the changes in US tax reform legislation that was enacted on December 22, 2017 through the Tax Cuts and Jobs Act, the Company has reassessed its Non-GAAP-based tax rate to be approximately 14% for the six months ended December 31, 2017, down from 15%. Pursuant to this, the Non-GAAP-based tax rate of approximately 13% for the three months ended December 31, 2017 includes a one-time cumulative catch up of recoveries and charges, as though the Company’s Non-GAAP-based tax rate was 14% as of July 1, 2017.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Three Months Ended December 31, 2017

Per share diluted

GAAP-based net income, attributable to OpenText

$

85,111

$

0.32

Add:

Amortization

93,396

0.35

Share-based compensation

7,158

0.03

Special charges (recoveries)

715

Other (income) expense, net

(5,547)

(0.02)

GAAP-based provision for (recovery of ) income taxes

53,146

0.20

Non-GAAP-based provision for income taxes

(31,051)

(0.12)

Non-GAAP-based net income, attributable to OpenText

$

202,928

$

0.76

 

Reconciliation of Adjusted EBITDA

Three Months Ended December 31, 2017

GAAP-based net income, attributable to OpenText

$

85,111

Add:

Provision for (recovery of) income taxes

53,146

Interest and other related expense, net

34,092

Amortization of acquired technology-based intangible assets

47,128

Amortization of acquired customer-based intangible assets

46,268

Depreciation

22,071

Share-based compensation

7,158

Special charges (recoveries)

715

Other (income) expense, net

(5,547)

Adjusted EBITDA

$

290,142

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the six months ended December 31, 2017.

(In thousands except for per share amounts)

Six Months Ended December 31, 2017

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues

Cloud services and subscriptions

$

174,748

$

(984)

(1)

$

173,764

Customer support

65,985

(656)

(1)

65,329

Professional service and other

124,444

(1,200)

(1)

123,244

Amortization of acquired technology-based intangible assets

91,088

(91,088)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

911,280

66.3

%

93,928

(3)

1,005,208

73.1

%

Operating expenses

Research and development

157,933

(3,213)

(1)

154,720

Sales and marketing

251,964

(5,183)

(1)

246,781

General and administrative

97,900

(4,157)

(1)

93,743

Amortization of acquired customer-based intangible assets

90,057

(90,057)

(2)

Special charges (recoveries)

18,746

(18,746)

(4)

GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

253,731

18.5

%

215,284

(5)

469,015

34.1

%

Other income (expense), net

15,771

(15,771)

(6)

Provision for (recovery of) income taxes

80,515

(24,286)

(7)

56,229

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

121,707

223,799

(8)

345,506

GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText

$

0.46

$

0.84

(8)

$

1.30

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 40% and a Non-GAAP-based tax rate of approximately 14%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 14%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense. We also took into consideration changes in US tax reform legislation that was enacted on December 22, 2017 through the Tax Cuts and Jobs Act.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Six Months Ended December 31, 2017

Per share diluted

GAAP-based net income, attributable to OpenText

$

121,707

$

0.46

Add:

Amortization

181,145

0.68

Share-based compensation

15,393

0.06

Special charges (recoveries)

18,746

0.07

Other (income) expense, net

(15,771)

(0.06)

GAAP-based provision for (recovery of) income taxes

80,515

0.30

Non-GAAP based provision for income taxes

(56,229)

(0.21)

Non-GAAP-based net income, attributable to OpenText

$

345,506

$

1.30

 

Reconciliation of Adjusted EBITDA

Six Months Ended December 31, 2017

GAAP-based net income, attributable to OpenText

$

121,707

Add:

Provision for (recovery of) income taxes

80,515

Interest and other related expense, net

67,380

Amortization of acquired technology-based intangible assets

91,088

Amortization of acquired customer-based intangible assets

90,057

Depreciation

40,949

Share-based compensation

15,393

Special charges (recoveries)

18,746

Other (income) expense, net

(15,771)

Adjusted EBITDA

$

510,064

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended September 30, 2017.

(In thousands except for per share amounts)

Three Months Ended September 30, 2017

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues

Cloud services and subscriptions

$

84,330

$

(522)

(1)

$

83,808

Customer support

32,791

(329)

(1)

32,462

Professional service and other

59,459

(597)

(1)

58,862

Amortization of acquired technology-based intangible assets

43,960

(43,960)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

417,187

65.1

%

45,408

(3)

462,595

72.2

%

Operating expenses

Research and development

77,629

(1,626)

(1)

76,003

Sales and marketing

122,822

(3,088)

(1)

119,734

General and administrative

48,915

(2,073)

(1)

46,842

Amortization of acquired customer-based intangible assets

43,789

(43,789)

(2)

Special charges (recoveries)

18,031

(18,031)

(4)

GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

87,123

13.6

%

114,015

(5)

201,138

31.4

%

Other income (expense), net

10,224

(10,224)

(6)

Provision for (recovery of) income taxes

27,369

(2,191)

(7)

25,178

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

36,596

105,982

(8)

142,578

GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText

$

0.14

$

0.40

(8)

$

0.54

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 43% and a Non-GAAP-based tax rate of approximately 15%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 15%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Three Months Ended September 30, 2017

Per share diluted

GAAP-based net income, attributable to OpenText

$

36,596

$

0.14

Add:

Amortization

87,749

0.33

Share-based compensation

8,235

0.03

Special charges (recoveries)

18,031

0.07

Other (income) expense, net

(10,224)

(0.04)

GAAP-based provision for (recovery of ) income taxes

27,369

0.10

Non-GAAP-based provision for income taxes

(25,178)

(0.09)

Non-GAAP-based net income, attributable to OpenText

$

142,578

$

0.54

 

Reconciliation of Adjusted EBITDA

Three months ended September 30, 2017

GAAP-based net income, attributable to OpenText

$

36,596

Add:

Provision for (recovery of) income taxes

27,369

Interest and other related expense, net

33,288

Amortization of acquired technology-based intangible assets

43,960

Amortization of acquired customer-based intangible assets

43,789

Depreciation

18,878

Share-based compensation

8,235

Special charges (recoveries)

18,031

Other (income) expense, net

(10,224)

Adjusted EBITDA

$

219,922

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the three months ended December 31, 2016.

(In thousands except for per share amounts)

Three Months Ended December 31, 2016

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues

Cloud services and subscriptions

$

73,150

$

(211)

(1)

$

72,939

Customer support

27,349

(270)

(1)

27,079

Professional service and other

40,295

(468)

(1)

39,827

Amortization of acquired technology-based intangible assets

24,848

(24,848)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

374,676

69.0

%

25,797

(3)

400,473

73.8

%

Operating expenses

Research and development

64,721

(1,995)

(1)

62,726

Sales and marketing

102,651

(2,329)

(1)

100,322

General and administrative

39,914

(2,299)

(1)

37,615

Amortization of acquired customer-based intangible assets

33,815

(33,815)

(2)

Special charges (recoveries)

11,117

(11,117)

(4)

GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

107,157

19.7

%

77,352

(5)

184,509

34.0

%

Other income (expense), net

(3,558)

3,558

(6)

Provision for (recovery of) income taxes

30,822

(7,319)

(7)

23,503

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

45,022

88,229

(8)

133,251

GAAP-based earnings per share / Non-GAAP-based earnings per share-diluted, attributable to OpenText

$

0.18

$

0.36

(8)

$

0.54

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax provision rate of approximately 41% and a Non-GAAP-based tax rate of approximately 15%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of approximately 15%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Three Months Ended December 31, 2016

Per share diluted

GAAP-based net income, attributable to OpenText

$

45,022

$

0.18

Add:

Amortization

58,663

0.24

Share-based compensation

7,572

0.03

Special charges (recoveries)

11,117

0.04

Other (income) expense, net

3,558

0.01

GAAP-based provision for (recovery of ) income taxes

30,822

0.12

Non-GAAP-based provision for income taxes

(23,503)

(0.08)

Non-GAAP-based net income, attributable to OpenText

$

133,251

$

0.54

 

Reconciliation of Adjusted EBITDA

Three months ended December 31, 2016

GAAP-based net income, attributable to OpenText

$

45,022

Add:

Provision for (recovery of) income taxes

30,822

Interest and other related expense, net

27,743

Amortization of acquired technology-based intangible assets

24,848

Amortization of acquired customer-based intangible assets

33,815

Depreciation

15,301

Share-based compensation

7,572

Special charges (recoveries)

11,117

Other (income) expense, net

3,558

Adjusted EBITDA

$

199,798

 

Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the six months ended December 31, 2016.

(In thousands except for per share amounts)

Six Months Ended December 31, 2016

GAAP-based

Measures

GAAP-based Measures
% of Total Revenue

Adjustments

Note

Non-GAAP-based

Measures

Non-GAAP-based Measures

% of Total Revenue

Cost of revenues:

Cloud services and subscriptions

$

143,442

$

(571)

(1)

$

142,871

Customer support

53,087

(505)

(1)

52,582

Professional service and other

81,638

(913)

(1)

80,725

Amortization of acquired technology-based intangible assets

47,983

(47,983)

(2)

GAAP-based gross profit and gross margin (%) /
Non-GAAP-based gross profit and gross margin (%)

701,987

67.9

%

49,972

(3)

751,959

72.7

%

Operating expenses

Research and development

123,293

(3,738)

(1)

119,555

Sales and marketing

197,799

(5,149)

(1)

192,650

General and administrative

78,111

(4,836)

(1)

73,275

Amortization of acquired customer-based intangible assets

67,423

(67,423)

(2)

Special charges (recoveries)

23,571

(23,571)

(4)

GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%)

181,219

17.5

%

154,689

(5)

335,908

32.5

%

Other income (expense), net

3,141

(3,141)

(6)

Provision for (recovery of) income taxes

(828,603)

870,698

(7)

42,095

GAAP-based net income / Non-GAAP-based net income, attributable to OpenText

957,906

(719,150)

(8)

238,756

GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText

$

3.89

$

(2.92)

(8)

$

0.97

(1)

Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results.

(2)

Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results.

(3)

GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of total revenue.

(4)

Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges (recoveries) are generally incurred in the periods relevant to an acquisition and include one-time, non-recurring charges or recoveries that are not indicative or related to continuing operations, and are therefore excluded from our internal analysis of operating results.

(5)

GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of total revenue.

(6)

Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. Other income (expense) also includes our share of income (losses) from our holdings in non-marketable securities investments as a limited partner. We do not actively trade equity securities in these privately held companies nor do we plan our ongoing operations based around any anticipated fundings or distributions from these investments. We exclude gains and losses on these investments as we do not believe they are reflective of our ongoing business and operating results.

(7)

Adjustment relates to differences between the GAAP-based tax recovery rate of approximately 641% and a Non-GAAP-based tax rate of approximately 15%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. Such excluded expenses include amortization, share-based compensation, Special charges (recoveries) and other income (expense), net. Also excluded are tax benefits/expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves and “book to return” adjustments for tax return filings and tax assessments. Included is the amount of net tax benefits arising from the internal reorganization assumed to be allocable to the current period based on the forecasted utilization period. In arriving at our Non-GAAP-based tax rate of 15%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense.

(8)

Reconciliation of GAAP-based net income to Non-GAAP-based net income:

 

Six Months Ended December 31, 2016

Per share diluted

GAAP-based net income, attributable to OpenText

$

957,906

$

3.89

Add:

Amortization

115,406

0.47

Share-based compensation

15,712

0.06

Special charges (recoveries)

23,571

0.10

Other (income) expense, net

(3,141)

(0.01)

GAAP-based provision for (recovery of) income taxes

(828,603)

(3.37)

Non-GAAP based provision for income taxes

(42,095)

(0.17)

Non-GAAP-based net income, attributable to OpenText

$

238,756

$

0.97

 

Reconciliation of Adjusted EBITDA

Six Months Ended December 31, 2016

GAAP-based net income, attributable to OpenText

$

957,906

Add:

Provision for (recovery of) income taxes

(828,603)

Interest and other related expense, net

55,018

Amortization of acquired technology-based intangible assets

47,983

Amortization of acquired customer-based intangible assets

67,423

Depreciation

30,571

Share-based compensation

15,712

Special charges (recoveries)

23,571

Other (income) expense, net

(3,141)

Adjusted EBITDA

$

366,440

(3)

The following tables provide a composition of our major currencies for revenue and expenses, expressed as a percentage, for the three and six months ended December 31, 2017 and 2016:

 

Three Months Ended December 31, 2017

Three Months Ended December 31, 2016

Currencies

% of Revenue 

% of Expenses* 

% of Revenue 

% of Expenses* 

EURO

23

%

16

%

25

%

16

%

GBP

6

%

6

%

7

%

7

%

CAD

3

%

10

%

4

%

11

%

USD

58

%

52

%

55

%

50

%

Other

10

%

16

%

9

%

16

%

Total

100

%

100

%

100

%

100

%

 

Six Months Ended December 31, 2017

Six Months Ended December 31, 2016

Currencies

% of Revenue 

% of Expenses* 

% of Revenue 

% of Expenses* 

EURO

22

%

15

%

24

%

15

%

GBP

6

%

6

%

7

%

7

%

CAD

4

%

11

%

4

%

11

%

USD

59

%

52

%

56

%

51

%

Other

9

%

16

%

9

%

16

%

Total

100

%

100

%

100

%

100

%

*Expenses include all cost of revenues and operating expenses included within the Condensed Consolidated Statements of Income, except for amortization of intangible assets, share-based compensation and Special charges (recoveries).

 

Cision View original content:http://www.prnewswire.com/news-releases/opentext-reports-second-quarter-fiscal-year-2018-financial-results-300591441.html

SOURCE Open Text Corporation

In the news release, Pareteum Continues Momentum via Highly Successful January 2018, issued 31-Jan-2018 by Pareteum Corporation over PR Newswire, we are advised by the company that contractual revenue backlog growth should read "$162,000,000 and 400% for twelve month growth" rather than, "$167,000,000 and 438% for twelve month growth" as originally issued inadvertently. The complete, corrected release follows:

Pareteum Continues Momentum via Highly Successful January 2018

Awarded New Contracts in Europe, South America, North America and Asia Pacific

36-Month Contractual Revenue Backlog Grows to $162,000,000, Representing 400% Twelve Month Growth

Eliminated Senior Secured Debt in December 2017

NEW YORK, Jan. 31, 2018 /PRNewswire/ —  Pareteum Corporation (NYSE American: TEUM), (“Pareteum” or the “Company”), the rapidly growing Cloud Communications Platform company, today announced that, during the month of January 2018, the Company signed contracts scheduled to add $15,200,000 to its 36-month contractual revenue backlog. The current contractual revenue backlog represents a 400% increase from a year earlier and a 10% month over month increase to the $147,000,000 36-month contractual revenue backlog announced previously on January 3, 2018.

Pareteum Corporation Logo.

Pareteum’s current cash balance is $15.6 million on January 31, 2018, reflecting having fully paid our senior secured loan, in the amount of $8.1 million, and, continuing the improved operations of the business.  Increases in cash balances over prior periods are a result of net equity raised, warrant exercises and continued operational efficiencies. The improved strength of our balance sheet provides the foundation for Pareteum’s focus on accelerated growth in 2018 and beyond.

Contracts executed in January 2018 that have meaningfully contributed to Pareteum’s accelerating growth, as measured by our 36-month contractual revenue backlog, are:

  • $1,000,000 contract from Social Media Provider to Enable Smartphone Services, announced January 4, 2018
  • $5,400,000 contract from Pan European Mobile Operator with African Subscribers, announced January 10, 2018
  • $3,000,000 contract from South America Data Network Provider to Add Mobility, announced January 17, 2018
  • $1,000,000 contract from Brazil Mobile Service Provider, announced January 24, 2018
  • $10,000,000 contract awarded to Pareteum Europe for MSP deployment to EMEA customer, announced January 26, 2018

Of note, two of the awarded contracts mentioned above are 5-year agreements, so we have included only the portion expected over the next 36 months.

Hal Turner, Executive Chairman and Principal Executive Officer at Pareteum commented, “Pareteum’s performance is highlighted by the growth of our 36-month contractual revenue backlog, currently standing over $162,000,000, which represents a Compound Annual Growth Rate (CAGR), measured from the end of 2016’s fourth quarter through 2017 of 400%!  Removing the burden of our senior secured debt materially frees cash to be redeployed into our growth. Our ambition is to deliver a single solution for communications service providers, enterprises, and IoT customers provided from our Managed Services, Global Cloud, and IoT – Application Exchange + Developer’s platforms. Pareteum’s application and service solutions include AI (Artificial Intelligence, Machine Learning), Blockchain, and, our latest IP/PBX solutions.  We expect these achievements to continue our march to profitability and earnings for our shareholders. We are a mission driven business. One clear Pareteum mission is to make it simple for our customers to grow and integrate the latest technologies without having to think about building them.”

About Pareteum:
The mission of Pareteum Corporation (NYSE American: TEUM) is to connect “every person and everything”. Organizations use Pareteum to energize their growth and profitability through cloud communication services and complete turnkey solutions featuring relevant content, applications, and connectivity worldwide. Our platform services partners (technologies integrated into our cloud) include: HPE, IBM, Sonus, Oracle, Microsoft, and other world class technology providers. All of the relevant customer acquired value is derived from Pareteum’s award winning software, developed and enhanced for many years. By harnessing the value of communications, Pareteum serves retail, enterprise and IoT customers. Pareteum currently has offices in New York, Sao Paulo, Madrid, Barcelona, Bahrain and the Netherlands. For more information please visit: www.pareteum.com.

Forward Looking Statements:
Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about Pareteum’s industry, management’s beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Pareteum’s filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from Pareteum Corporation.  

Contractual Revenue Backlog Definition:
Contractual revenue backlog is measured on a forward looking 36 month snapshot view monthly, and, is generated by each of the Company’s Managed Services, Global Mobility Cloud, and Application Exchange & Developer’s Platform customers. The Pareteum multi-year Software-as-a-Service agreements include service establishment and implementation fees, guaranteed minimum monthly recurring fees, as well as contractually scheduled subscribers, in some cases including subscriber usage, during the term of the agreement, and, their resulting monthly recurring revenue.

Pareteum Investor Relations Contacts:
Ted O’Donnell
Chief Financial Officer
(212) 984-1096
InvestorRelations@pareteum.com

Hayden IR
(917) 658-7878

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/pareteum-continues-momentum-via-highly-successful-january-2018-300590862.html

SOURCE Pareteum Corporation

POMPANO BEACH, Fla., Jan. 31, 2018 /PRNewswire-iReach/ — Promero launches free Oracle BOT Assistance Program for customers to receive $300 Free Oracle Mobile Cloud Credits

January 31, 2018Pompano Beach, Florida:  Promero launched its Free Oracle BOT Assistance Program.  Promero will assist users secure $300 in free credits that can be used on Oracle Mobile Cloud Enterprise and help users configure Oracle Intelligent BOTs.  The Oracle Mobile Cloud Enterprise enables businesses the ability to create natural language speaking intelligent bots and interact with your company’s back office systems. Oracle Intelligent Bots can determine the customers’ intent and perform next appropriate actions.  There are clear differences between consumers Bots-vs-Oracle BOTs.  Oracle is not about a general purpose bot that plays video games, entertains your kids, adjusts your thermostat or starts your car. Oracle focuses on what it does best – helping the enterprise operate more efficiently while helping simplify the efforts to adopt new technologies.  Oracle Mobile Cloud Enterprise provides a platform with advanced conversational artificial intelligence and makes it available at your fingertips.

Many times during BOT communications, customers reach a point where the BOT is unable to answer a question.  Intelligent BOTs like Oracle Intelligent Bots can escalate the communication to a live chat agent, or to a voice call if needed.  With Oracle BOTs, conversational details are transferred from the BOT-to-mobile app-to-live agent in a single digital channel.  

“OMCe is the only platform in the world that can deliver an artificial intelligent BOT and instant mobile apps within the single commutation digital channel,’ stated Gregg Troyanowski, president of Promero.   “Promero is ready to assist customers secure their $300 Credit and to help companies gain a competitive advantage with this incredible platform.”  Promero’s services team helps integrate Oracle BOTs to businesses’ call center solution or PBX and back office solutions.

Oracle’s Mobile Cloud Enterprise with Oracle Intelligent Bots is focused on helping your business scale.  Oracle offers a complete solutions stack that includes Integration Cloud Services with integrations to over 75+ enterprise and non-enterprise backend systems.  Promero, an Oracle Gold Partner since 2007, is dedicated to helping companies configure artificial intelligence, chatbots and mobile applications. Discover how Oracle helps customer engagements and improves customer experience. 

About Promero
Promero is a Worldwide Oracle® Gold Partner  in the Oracle® Partner Network and an Oracle® Marketplace Solutions Partner.  Promero offers contact center solutions, managed services and integration services that are used globally in over 26 countries and 12 languages by companies of all sizes.    Visit Promero’s website https://www.promero.com/oracle-intelligent-bots/ . Telephone: (954) 935-8800. Toll free: (888) 204-0822.

About Oracle Partner Network
Oracle® Partner Network (OPN) is Oracle’s partner program that provides partners with a differentiated advantage to develop, sell and implement Oracle® solutions. OPN offers resources to train and support specialized knowledge of Oracle’s products and solutions and has evolved to recognize Oracle’s growing product portfolio, partner base and business opportunity. Key to the latest enhancements to OPN is the ability for partners to be recognized and rewarded for their investment in Oracle Cloud. Partners engaging with Oracle will be able to differentiate their Oracle Cloud expertise and success with customers through the OPN Cloud program – an innovative program that complements existing OPN program levels with tiers of recognition and progressive benefits for partners working with Oracle Cloud. To find out more visit: http://www.oracle.com/partners.

Media Contact: Natalie Morales, Promero, Inc, 954-935-8800, accounting@promero.com

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

SOURCE Promero, Inc