HOLBROOK, N.Y., May 21, 2018 /PRNewswire/ — Future Tech Enterprise, Inc. an award-winning IT solutions provider, today announced that CEO & Founder, Bob Venero, has been accepted into the Forbes Technology Council, an invitation-only community for world-class CIOs, CTOs and technology executives.

Bob Venero, CEO and Founder Future Tech Enterprise, Inc.

Venero now joins other industry leaders who are hand-selected to become part of a curated network of successful peers and get access to a variety of exclusive benefits and resources, including the opportunity to submit thought leadership articles and short tips on industry-related topics for publishing on Forbes.com.

“Being part of the Forbes Technology Council will help support Future Tech’s mission of always bringing the latest innovations to our customers, like Artificial Intelligence (AI), Internet of Things (IoT), Virtual Reality (VR), and 3D Print,” Venero said. “I look forward to sharing my experiences and learning from other successful entrepreneurs and technology experts who make the Forbes Technology Council such a valued, connected community.”   

Venero started Future Tech Enterprise, Inc. in 1996 from the basement of his Long Island home. Since then, he has driven the company’s exceptional growth and positioned Future Tech as a valued IT solutions provider for leading companies in the aerospace, defense, education, energy, healthcare, and manufacturing sectors.

He has also made ‘community giving’ a central component of Future Tech’s culture, with the company supporting numerous local and national charities, including the American Cancer Society, St Jude’s Children Research Hospital, National Foundation for Cancer Research, Northwell Health, Bayport-Blue Point High School (Bayport, NY), North Shore Animal League and Good Samaritan Hospital Medical Center.

Scott Gerber, founder of Forbes Councils, says, “We are honored to welcome Bob Venero into the community. Our mission with Forbes Councils is to curate successful professionals from every industry, creating a vetted, social capital-driven network that helps every member make an even greater impact on the business world.”

Forbes Councils combines an innovative, high-touch approach to community management perfected by the team behind Young Entrepreneur Council (YEC) with the extensive resources and global reach of Forbes. As a result, Forbes Council members get access to the people, benefits and expertise they need to grow their businesses — and a dedicated member concierge who acts as an extension of their own team, providing personalized one-on-one support.

About Forbes Councils                  
Forbes partnered with the founders of Young Entrepreneur Council (YEC) to launch Forbes Councils, invitation-only communities for world-class business professionals in a variety of industries. Members, who are hand-selected by each Council’s community team, receive personalized introductions to each other based on their specific needs and gain access to a wide range of business benefits and services, including best-in-class concierge teams, personalized connections, peer-to-peer learning, a business services marketplace, and the opportunity to share thought leadership content on Forbes.com. For more information about Forbes Councils, visit forbescouncils.com.

About Future Tech Enterprise, Inc. 
Future Tech Enterprise, Inc. is an award-winning, IT solutions provider with capabilities in 170 countries. Future Tech serves leading companies and organizations in the aerospace, defense, education, energy, healthcare and manufacturing sectors.  The company specializes in delivering cost-effective and customized IT solutions. Through its team of experts and offering of 700 manufacturer product lines, Future Tech helps companies solve their most demanding IT challenges, including: Security, Storage, Infrastructure, Collaboration, Disaster Prevention, Disaster Recovery and Business Continuity, Power Solutions and Asset Life.

Contact: Mark Savage, 1-631-472-8637, [email protected]

Future Tech Enterprise, Inc.

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SOURCE Future Tech Enterprise, Inc.

SEATTLE, May 21, 2018 /PRNewswire/ — EnCirca and Pandorabots announced a new service for brand owners to help them develop artificially intelligent conversational bots using the new .BOT top-level-domain from Amazon Registry.  The announcement occurred at the 140th Annual Meeting of the International Trademark Association (INTA) being held this week in Seattle, Washington and attended by over 10,000 trademark lawyers from 150 countries.

dotbot domains

.BOT is designed to be more than just another alternative to .COM domain names.  Instead, .BOT is intended to serve as the ultimate discovery space for artificial intelligence (AI) applications, also known as bots, linking bot creators with their end-users, as well as providing bot creators with information and resources to help them with their own development.

“There is a shift occurring in how customers want to interact with businesses. Bots can provide the personalization and direct interaction that most static websites and mobile apps haven’t been able to deliver.  As a result, more and more businesses are embracing conversational marketing and customer support to help customers discover and connect with a brand, as well as obtain quick answers to common queries,” says Stacey King, General Manager of Amazon Registry Services.

Currently, eligibility for .BOT domain names is limited to software developers using one of six bot frameworks, including Pandorabots.  After a developer has satisfied the eligibility requirement, they are then directed to an ICANN-accredited Registrar, such as EnCirca, to secure their .BOT domain names.

“EnCirca is teaming up with Pandorabots to simplify the .BOT registration process for brand owners and trademark lawyers,” says Tom Barrett, president of EnCirca.  “Every brand who is present in one of the mobile app marketplaces, such as Apple’s App Store or Google’s PlayStore, should now secure their trademarks in .BOT.”

Pandorabots is the leading chatbot development and hosting platform with over 250,000 developers and top global brands using the service to provide automated customer interactions at scale on popular voice and messaging channels. As part of a special promotion for INTA attendees, Pandorabots is offering starter kits for brand owners who reserve their .BOT domain with EnCirca to kickstart bot development for their business.

“We believe that every business will have a chatbot facilitating instant, personalized customer interactions,” says Lauren Kunze, CEO of Pandorabots, “and that .BOT can be the point of entry and destination on the web to signal that you, the customer, can now have a conversation with our brand.”

Representatives from EnCirca and Pandorabots will be available to discuss .BOT and bot development for the duration of the INTA Annual Meeting this week from exhibit booth number 323.  Trademark lawyers unable to visit the booth can learn more at www.pandorabots.bot or www.encirca.bot.

About EnCirca:

Formed in 2001, EnCirca (www.encirca.bot) is an ICANN-Accredited registrar and registry validation provider based in Boston.  EnCirca specializes in complex and custom registrar solutions for the domain name industry. Contact [email protected] to request a consultation.

About Pandorabots:

Based in San Francisco, Pandorabots (www.pandorabots.bot) is the largest, most established chatbot platform. Visit pandorabots.com to build a free DIY chatbot or learn more about the Enterprise offerings and services by contacting [email protected].

Media Contacts:

Debbie Muzarol
[email protected]
+1.7819429975  

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SOURCE EnCirca, Inc

SAN JOSE, Calif., May 21, 2018 /PRNewswire/ — Leaders have followers, and nowhere is that more evident than the global eCommerce market, where giant digital shopping destinations like eBay, Amazon and Alibaba now account for more than 50 percent of the nearly $500 billion spent by North American consumers online.

 (PRNewsfoto/CMO Council)

Large, global eCommerce communities are disrupting the retail marketplace by bringing together vast numbers of buyers and sellers in frictionless transactional environments. Inspired by their success, brand marketers are rethinking go-to-market strategies to better integrate digital advertising with personalized shopper engagement and more effective conversion programs.

New research by the Chief Marketing Officer (CMO) Council—entitled “Ingenuity in the Global eCommerce Community“—explores how the massive scale, data quality and customization capability of online marketplaces are bringing new levels of customer insight, enriched experiences and added value to brands. Digital commerce accounts for about 10 percent of the $5 trillion in total annual sales across all retail channels.

Download the report at: https://cmocouncil.org/thought-leadership/reports/ingenuity-in-the-global-ecommerce-community-detailed-findings 

According to a CMO Council survey of nearly 200 brand marketers, well over 50 percent believe that large eCommerce communities are revolutionizing and reinventing the global retail marketplace. It was also forcing them to rethink every aspect of how they go to market. In a telling self-assessment, 60 percent report that they need to embrace a more cohesive, integrated, multi-channel digital retail strategy to improve their own eCommerce business.

The CMO Council study, conducted in collaboration with eBay, revealed the top five ways in which big eCommerce channels were impacting the go-to-market planning and strategies of major product marketers. According to the marketers surveyed, these included:

o   Putting pressure on us to lower pricing
o   Rethinking our monetization and customer revenue models
o   Forcing us to seek greater brand differentiation
o   Recalibrating and allocating our digital marketing spend
o   Shifting us into an agile, real-time marketing mode

“The millennial-driven shift to digital retail shopping is prompting the evolution of the old 4P model of marketing—now, more notably, we need Precision, Personalization, Persuasion and Perfection of execution to multiply purchases,” notes Donovan Neale-May, Executive Director of the CMO Council. “Exemplifying this are innovations in customer attraction, convenience, conversion and consistency of experience that are behind the success of eBay, Amazon and other digital commerce communities.”

For its part, eBay is using advances in technology, such as augmented reality (AR),artificial intelligence (AI) and machine learning, to improve search relevancy and make buying and selling on eBay much more gratifying.

“eBay has made it even easier to shop and sell on the platform by leveraging new technology to redefine what online shopping means today,” notes Bridget Davies, eBay’s VP of Advertising and Marketing Activation. “We use AI and big data to learn how people move at a granular scale to better connect with consumers, brands and businesses.”

Davies points to eBay’s AI-powered, personalized homepage and over 1.1B listings using structured data. “Over 80 percent of eBay users are logged in when they access our platform, allowing us to deterministically identify users across channels, browsers, and devices rather than relying on cookie-based probability models,” she adds.

The CMO Council report notes that marketers today are challenged to evidence how they are using data and real-time insights to “gain greater satisfaction from every customer interaction” and determine whether they have the ability to “scale the way they track the digital buying trail.”

The CMO Council’s new thought leadership initiative gathered insights from nearly 200 global brands and their physical and digital retail partners. This included category leaders like Lenovo, LEGO, Puma, Casio, Serta, Bosch, Brooks, PERRIN PARIS and Fruit of the Loom/Spalding. The resulting best-practice report (available here) accents how brands are using proprietary data and insights to execute smarter customer acquisition campaigns that key off of seasonal, event-related, price-based and more personalized offers and promotions.

Areas of exploration covered by the CMO Council research included:

  • How marketers view the disruptive and transformative nature of global eCommerce communities and online marketplaces like eBay, Alibaba, Amazon and others
  • To what degree these always-open, price-driven shopping, trading and auctioning channels are impacting and influencing go-to-market strategies, transactional margins and traditional retail distribution models
  • The percentage of manufacturer revenue that now comes from online commerce and how marketers expect this will shift in the year ahead in terms of resource allocation and business results
  • The benefits that global eCommerce communities offer in terms of how a brand or channel partner can reach, engage, convert, support, satisfy and repeatedly sell to target customers
  • What might worry brands about the enormous economic clout and market-making capacity of giant online retailers and large, aggregated communities of predisposed buyers and motivated sellers
  • How well product advertisers are sourcing “shoppergraphic” insights, mass-customizing and localizing digital ad messages, and evaluating campaign effectiveness

About the CMO Council
The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide-range of global industries. The CMO Council’s 15,000-plus members control more than $500 billion in aggregated annual marketing expenditures and run complex, distributed marketing and sales operations worldwide. In total, the CMO Council and its strategic interest communities include more than 65,000 global marketing and sales executives in more than 110 countries covering multiple industries, segments and markets. Regional chapters and advisory boards are active in the Americas, Europe, Asia-Pacific, Middle East and Africa. The CMO Council’s strategic interest groups include the Customer Experience Board, Digital Marketing Performance Center, Brand Inspiration Center, Marketing Supply Chain Institute, GeoBranding Center, and the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE).

About eBay Advertising
eBay Advertising, a division of eBay Inc., helps brands understand and in influence the shopping journey of 171M active buyers worldwide. With 1B live listing consisting of the most diverse selection of new, luxury, rare and collective items in the world, eBay offers unrivaled insights into the shopper’s motivation and intent. eBay advertising data tells a story about what fuels users’ actions during each stage of the shopping journey, from product research to purchase. A powerful suite of tools combined with scientific shopping data translates into actionable insights that help brands influence their target market’s path-to-purchase and achieve brand and sales goals.

 

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SOURCE CMO Council

LONDON, and AUSTIN, Texas, May 21, 2018 /PRNewswire/ — Bank of the West, ATB Financial, Henkel Global, and Mashreq Bank are transforming their approach to modern business operations by delivering the Digital Workforce of the future with Blue Prism (AIM: PRSM). Since deploying Blue Prism these leading global companies have optimized numerous mission critical processes including HR, banking, compliance and customer care functions by up to a 5x increase in productivity through automation.

Blue Prism logo (PRNewsfoto/Blue Prism)

Blue Prism’s reusable, modular software objects can be configured with minimal intervention from developers, allowing business users, process excellence engineers and subject matter experts at leading global enterprises to quickly deploy software robots that automate and complete increasingly complex tasks through a single platform. At Bank of the West, they are creating the Digital Workforce to support functions across the business, including its wealth management operations.

“Our partnership with Blue Prism has taught us – to use an old metaphor – how to fish when it comes to our software robot program and automation,” said John Finley, Head of Innovation and Customer Journeys at Bank of the West. “Their platform has enabled our software robotics organization to quickly scale a number of advanced bots across our enterprise that allows our client-facing team members to spend more time doing what they want to do – work with clients – and less on rote tasks.”

Blue Prism complements the workplace with an elastic, multi-faceted and multi-talented digital workforce, helping organizations automate and scale business processes via AI, machine learning, intelligent automation and sentiment analysis. The Digital Workforce Platform eliminates vendor lock-in by providing access to the best of breed AI technologies and Intelligent Automation skills through Blue Prism’s Technology Alliance Program (TAP) that transform how organizations can leverage technology to deliver true operational agility.  

The open nature of the platform also enables organizations to equip their Digital Workers with Artificial Intelligence, where meaningful and accessible AI from world leading technology providers can be easily consumed using Blue Prism’s and the industry’s first Intelligent Automation Skills. Unlike uncontrolled desktop scripting and macro recorders, Blue Prism is driving enterprise Robotic Process Automation (RPA) adoption through a business led and IT-endorsed, methodology and architecture that enables long-term success, true digital transformation and overall lower TCO.

“As the inventor of enterprise RPA, we have understood from the start the value of code-free reusable business objects. In order to enable scalability of automated business processes it must be easy for non-technical business users to create, deploy, and manage digital workers,” said Dave Moss, CTO and Co-Founder at Blue Prism. “Our conversations with existing and new customers have reinforced the fact that reusability is a key feature and differentiator of Blue Prism’s enterprise-grade RPA and is an essential part of a scalable Digital Workforce. Blue Prism’s drag and drop capabilities ensure that once a process is automated, customers can build out a library of software objects that can be reused and accessed anytime, making it simple to build-out and scale their RPA implementations.”

Achieving Greater Productivity While Lowering TCO
Blue Prism’s RPA configuration is code-free, logical and highly visual—processes can be created, maintained and managed by Centers of Excellence hosted in the business organization and do not require teams of dedicated coders. Unlike other RPA platforms that require software developers to rework the script for it to be reused, Blue Prism was designed to enable a “build once, use many times” approach to process automation, empowering enterprises to digitize with true operational agility.

For example, Mashreq Bank has seen more than 150,000 secure and error free transactions executed daily running on Blue Prism. Automation at Mashreq has delivered a better issue TAT (Turn Around Time) by 65 percent on manual processes, and reduced customer complaints by 90 percent. In addition, individual branch productivity is up by 60 percent while human worker costs are down by almost 87 percent due to the bolstering of human workers with RPA tools that boost productivity.

“Blue Prism is helping to accelerate the development of new RPA processes while lowering the overall costs of maintenance with this capability,” said Dave Mayer, principal analyst, AI & RPA for NelsonHall. “By helping to standardize operating procedures across business areas and operational teams, Blue Prism is empowering enterprises to use automation as the cornerstone for new digital process models.”

The Importance of Reusability
One-time automation processes are inexpensive to implement, but their costs can quickly increase when deployed at scale due to their lack of extensibility and inability to manage change. Integrating reusability from the start precludes the need for costly process rework as the program matures and allows teams to focus instead on developing a pipeline of new processes, leveraging existing objects. This results in considerably lower TCO and increased support for a greater number of complex business processes. It simplifies the creation, modification and management of existing and new software robots with the following features:

  • Easier adaptability to changes in processes: Since all interactions with applications are done through a business object layer, changes in a user interface only require changes to be made to the business object that interacts directly with that application. This is simpler than finding and changing all of the scripts that work with the changed application.
  • Simplified automation of new business processes: New business processes can be automated more quickly because the same business objects can be reused by multiple processes. Over time, organizations using Blue Prism build up a library of business objects for communicating with their applications. Once done, automating a new business process requires the user to simply create new logic to drive these objects.
  • Integration with applications: Blue Prism’s reusable software objects allow the Digital Workforce to directly integrate with different applications including legacy mainframe, SAP, Oracle, browser and virtual desktop applications like Salesforce.
  • Comprehensive dependency tracking and reporting: One of the biggest challenges with business-led automation is efficient management of process changes. Blue Prism’s reusable software objects reduce and simplify the requirement for regression testing as a result of process changes, providing a targeted, structured approach to change management. In addition, it allows comprehensive tracking of all script changes.

To find out more about how Blue Prism’s Digital Workforce can help your organization click here.

About Blue Prism
As the pioneer, innovator and market leader in Robotic Process Automation (RPA), Blue Prism delivers the world’s most successful Digital Workforce. The company’s software robots automate repetitive administrative tasks while meeting the requirements of the most demanding IT environments, where security, compliance and scalability are paramount.

Blue Prism provides a scalable and robust execution platform for best-of-breed AI and cognitive technologies and has emerged as the trusted and secure RPA platform of choice for the Fortune 500. Billions of transactions and hundreds of millions of hours of work are executed on Blue Prism robots from renowned companies including Aegon, BNY Mellon, Coca-Cola, Commerzbank, IBM, ING, Maersk, Nokia, Nordea, Procter & Gamble, Raiffeisen Bank, Siemens, Westpac and Zurich. For more information about Blue Prism (AIM: PRSM), visit www.blueprism.com and follow the company on LinkedIn and Twitter.

 

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SOURCE Blue Prism

SCOTTSDALE, Ariz., May 21, 2018 /PRNewswire/ — Axon (Nasdaq: AAXN), the global leader in connected law enforcement technologies, today announced the completion of the industry’s first center for artificial intelligence (AI) training on public safety data. The AI center is the first of its kind for analyzing police-specific data and is designed to comply with the FBI’s Criminal Justice Information Services (CJIS) Security Policy. Public safety agencies must opt-in to share data with the center, where it will be used to train AI models that will automate workflows to make the public safety community more efficient. The center’s heightened level of security will enable law enforcement to take advantage of the benefits of artificial intelligence through Axon products while ensuring the data used to develop these systems is secure.

The team of specialists at the AI training center will work on developing a range of future capabilities to help increase police efficiency and efficacy, including software to enable vehicle, speech and critical event recognition. Initially, the team will focus on training the AI algorithm for automatic license plate recognition to aid law enforcement in automated data analysis. Today, without the purchase of expensive, specialized hardware, officers must go through the process of manually viewing license plates and physically typing them into a system to match against a database.

“Officers spend, on average, two-thirds of each shift sitting behind a keyboard doing paperwork,” says Moji Solgi, Axon’s Director of AI and Machine Learning. “Our team is applying AI, machine learning and data science to common policing problems and eliminating pain points for agencies, including manual paperwork. The ultimate goal of the AI training center is to help accelerate the introduction of AI-powered capabilities for public safety.”

Axon formed its AI Research Team in February 2017 after acquiring two AI research and engineering groups, Dextro and Misfit (previously part of Fossil Group, Inc.). Additional AI solutions the team is currently working on includes:

  • Vehicle recognition: The ability to recognize the make, model, year, and color of vehicles on the road will help law enforcement in situations such as finding missing children.
  • Speech transcription: Automatically converting speech to text is a step toward automating record keeping and data entry by police officers, eliminating manual paperwork.
  • Critical event recognition: Developing an AI solution to detect officers’ actions, such as foot chases, could help notify other officers that a critical event is unfolding.

With more than 24 petabytes of customer data currently active on Evidence.com, Axon is calling upon agencies who are willing to participate in the AI training program. Agencies interested in becoming a data partner can email [email protected] to learn more.

About Axon

Axon is a network of devices, apps, and people that helps law enforcement become smarter and safer. Our mission is to protect life. Our technologies give law enforcement the confidence, focus and time they need to keep their communities safe. Our products impact every aspect of an officer’s day-to-day experience:

  • In the field – Our Smart Weapons offer a less-lethal intermediate use of force response and our body-worn and in-car cameras collect video evidence to capture the truth of an incident; and our mobile applications enable simple evidence collection.
  • At the station – Our secure, cloud-based digital evidence management solution allows officers and command staff to manage, review, share, and process digital evidence using forensic, redaction, transcription, and other tools.
  • In the courtroom – Our solutions for prosecutors make collaborating across jurisdictions and agencies easy so that cases can be resolved quickly.

We work hard for those who put themselves in harm’s way for all of us. To date, there are more than 226,900 software seats booked on the Axon Network around the world and about 200,000 lives and countless dollars have been saved with the Axon Network of devices, apps, and people. Learn more at www.axon.com or by calling (800) 978-2737.

Facebook is a trademark of Facebook, Inc., Misfit is a trademark of Fossil Group, Inc., and Twitter is a trademark of Twitter, Inc.

Axon, Axon Network, Axon Signal, Evidence.com, the “Axon Delta” logo, “Protect Life,” and Smart Weapons are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved.

Follow Axon here:

Note to Investors

Please visit http://investor.axon.com, https://www.axon.com/press, www.twitter.com/axon_us and https://www.facebook.com/Axon.ProtectLife/ where Axon discloses information about the company, its financial information, and its business.

Visit our Investor Relations Safe Harbor Statement at: http://investor.axon.com/safeHarbor.cfm

For investor relations information please contact Andrea James via email at [email protected].

CONTACT:
Sydney Siegmeth
VP Communications
[email protected]

TASER's Axon brand includes a growing suite of connected products and services from body cameras and digital evidence management tools to mobiles apps.

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SOURCE Axon

BANGKOK, May 21, 2018 /PRNewswire/ — The Thailand Board of Investment (BOI) has approved investment incentive schemes for “Smart City,” an initiative that will employ advanced IT systems and innovations to improve quality of life. The board has also agreed to promote high standard housing for better quality of life of workers, and agreed to extend the promotion period for investments in 10 Special Economic Zones (SEZs) to the end of 2020.

Thailand Board of Investment (BOI)

Ms. Duangjai Asawachintachit, BOI Secretary General, revealed after the BOI board meeting chaired by Prime Minister General Prayut Chan-o-cha that several important investment promotion measures approved by the board will have positive impacts on people and the entire country, from quality of life improvements for workers to the promotion and development of technological advances and innovations.

Smart City Promotion Incentives

At the meeting, the board approved investment promotion incentive schemes for the development of the “Smart City” project. Smart City is designed to upgrade people’s quality of life in 6 intelligent platforms, namely efficient transport (Smart Mobility), education and social equitability (Smart People), life security (Smart Living), ease of doing business (Smart Economy), efficient public services (Smart Governance) and green energy, clean, and safe environment (Smart Energy & Environment).

The main area of investment promotion for the Smart City comprises two key activities. 1) Smart City development: BOI will provide incentives for investors planning to develop Smart City infrastructure systems, including such telecommunication infrastructure as fiber optics, public Wi-Fi provision, and Open Data Platform schemes. The project’s basic infrastructure must include the 6 aforementioned intelligent platforms. 2) An incentive scheme to support intelligent network developers: The incentive scheme has been designed to benefit IT system developers who create, install and provide at least one out of the six areas of targeted services to support the Smart City system. Investment projects under these two categories will be granted 8-year of corporate income tax exemption (100 per cent of the total investment without land cost and working capital is eligible for an exemption from corporate income tax).

“The government’s goal is to improve the quality of life of the people in six key areas and therefore promote investments in basic infrastructure development for Smart City,” Ms. Asawachintachit said. “In the end, we are aspired to see more benefits for the people, such as efficient and well-connected air, sea and land transport routes; improved social equality for all citizens including the disabled and the elderly; enhanced safety and security; improved ease of doing business; as well as more efficient public services, energy consumption and better management of natural resources.”

Technology and innovation enhancement

BOI board also approved the amendment of incentive schemes for investments in science and technology, and in the Eastern Economic Corridor (EEC). More tax incentives will be given to science and technology development activities in order to attract more investments in this area. Such incentives are 1) an up to 13-year corporate income tax exemption for projects in the Eastern Economic Corridor of Innovation (EECi) and the Digital Park Thailand (EECd); and 2) an up to 12-year corporate income tax exemption for projects in the Science and Technology Park outside the EEC.

Quality of life improvement

Considering people as a valuable asset that drive business and economic transformation, the board initiated a new investment incentive category for “international-standard housing project development” for both Thai and foreign workers. Such housing projects must meet the standards set by the International Labor Organization (ILO). In addition to ensuring that workers have access to international standard housing, the government aims to increase the quality of life of workers.

This measure is applicable for projects nationwide but incentive schemes will vary. The eligible housing projects located in 10 Special Economic Zones (SEZ) in 10 border provinces will receive a 6-year corporate income tax exemption while those located in other areas will be eligible for a 3-year CIT exemption (based on incomes from rental fees and a 100 per cent cap of the investment value, excluding land and working capital). Applications must be submitted by 30 December 2019.

Promoting the regional trading center

The board also initiated the “Smart Distribution Center” category as a tool to make Thailand the regional trading center supporting the rapid growth in e-commerce and e-logistics businesses and the development of digital economy. Such development is a key to enhance national competitiveness in terms of trade and investment.

Being considered a targeted industry, “Smart Distribution Center” projects located in EEC’s specific promoted zones, namely EECi, EECd, and EEC Aerotropolis, Promoted Zones for Specific Targeted Industries, and other Industrial Estates or Industrial Parks, will receive incentives in addition to 8-year corporate income tax exemption (with maximum corporate investment cap of 100 percent, excluding cost of land and working capital) on income derived from international distribution services.

Some of the requirements for investors in “Smart Distribution Center” are to hire Thai personnel with good knowledge and experience in science and technology related fields such as engineering, artificial intelligence and data science, etc.; to implement data analytics or manage digital transactions based on advanced economy; and to provide training courses on advanced digital technology, especially Big Data and data analytics. More importantly, these investors must work closely with local educational institutes or research institutes on R&D projects.

SEZ investment application period extended to 2020

BOI board has agreed to extend the SEZs investment promotion measure, which covers the 10 border provinces (namely Tak, Trat, Mukdahan, Sa Kaew, Songklah, Chiang Rai, Nongkhai, Nakhon Panom, Kanchanaburi and Narathiwas) until 30 December 2020 (from 30 December 2018). The decision aims to encourage more investment in the targeted areas, given there is a number of investors considering to invest in infrastructure development projects in SEZs. Extension of the measure will increase confidence among investors who plan to develop targeted areas and establish businesses there.

For more information, please contact:

Thailand Board of Investment
Email: [email protected] 
Tel. +66 (0) 2553 8111
Website: www.boi.go.th

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SOURCE Thailand Board of Investment (BOI)

BEIJING, May 21, 2018 /PRNewswire/ — Cheetah Mobile Inc. (NYSE: CMCM) (“Cheetah Mobile” or the “Company”), a leading mobile internet company with strong global vision, today announced its unaudited consolidated financial results for the first quarter ended March 31, 2018.

First Quarter 2018 Financial Highlights

  • Total revenues[1] were RMB1,145.1 million (US$182.6 million), exceeding the Company’s previous guidance range of RMB1,100 million to RMB1,140 million.
  • Gross profit increased by 2.9% year over year to RMB753.9 million (US$120.2 million). Gross margin was 65.8% in the first quarter of 2018 compared to 61.5% in the same period last year.
  • Operating profit increased to RMB136.4 million (US$21.7 million) from RMB26.3 million in the same period last year. Operating margin expanded to 11.9% from 2.2% in the same period last year.
  • Operating profit for utility products and related services increased by 47.8% year over year to RMB264.7 million (US$42.2 million) in the first quarter of 2018. Operating margin for utility products and related services expanded to 35.5% in the first quarter of 2018 from 21.7% in the same period last year.

First Quarter 2018 Operating Metrics

  • The average number of global mobile monthly active users (“Mobile MAUs”) was 574 million in the first quarter of 2018. The number of Mobile MAUs from markets outside of China, or overseas markets, accounted for 75.4% of the total number of Mobile MAUs in the first quarter of 2018.  

Artificial Intelligence Technology

  • In March 2018, Beijing OrionStar Technology, an investee of Cheetah Mobile, achieved a record-setting 98.355% recognition rate in the MegaFace challenge (Challenge1/FaceScrub identification), an internationally recognized facial recognition test managed by the Paul G. Allen School of Computer Science & Engineering at the University of Washington. Cheetah Mobile holds approximately 30% equity interest in Beijing OrionStar Technology and has a two-year warrant to subscribe for additional equity interest to achieve a controlling position.

Mr. Sheng Fu, Cheetah Mobile’s Chairman and Chief Executive Officer, stated, “We began 2018 on a solid note with total revenues exceeding the high-end of our guidance. In the first quarter of 2018, our utility product business continued to generate strong profits and cash flow. We also solidified our leading position in the mobile casual game market by further enriching our game pipeline. Our artificial intelligence (“AI”) powered businesses made steady progress as well. In March, Cheetah Mobile and Beijing OrionStar jointly launched five practical and easy-to-use robotics products, which are powered by Orion OS, an open platform for robotics, which has been developed by Beijing OrionStar. Going forward, we aim to drive steady and healthy profit from our core businesses while simultaneously leveraging our extensive technology and product experience to expand our robotic product offerings.”

Mr. Vincent Jiang, Cheetah Mobile’s Chief Financial Officer, commented, “We continued to expand our profits and margins in the first quarter of 2018 as a result of our strategic efforts to optimize the cost and expense structure for our utility products business and our initiative to dispose of News Republic. Looking ahead, we will continue to drive higher operational efficiency for our core businesses, which in turn will fund our investment in AI-powered business and build long-term growth for Cheetah Mobile and its shareholders.”

 

[1] Starting from January 1, 2018, Cheetah Mobile adopted a new revenue accounting standard (ASC 606), which reclassifies value added tax from the cost of
revenues to net against revenues. To increase comparability of operating results and help investors better understand our business performance and operating
trends, 2017 net revenues have been used to calculate all percentage changes in revenues. 2017 net revenues are defined as gross revenues under legacy GAAP
after the deduction of value added taxes, which is presented on the same basis as 2018 and going forward.

 

First Quarter 2018 Consolidated Financial Results

REVENUES

Total revenues were RMB1,145.1 million (US$182.6 million) in the first quarter of 2018. 

  • Revenues from utility products and related services decreased by 7.7% year over year to RMB744.8 million (US$118.7 million) in the first quarter of 2018. The year-over-year change was primarily due to (i) a decline in revenues from mobile utility products and related services business in the overseas markets as certain ad formats, i.e., ads on mobile phone lock screens, have been discontinued by our overseas third-party advertising partners, and (ii) a decline in PC revenues. This decrease was largely offset by an increase in mobile utility products and related services business in China.
  • Revenues from the mobile entertainment business increased by 8.0% year over year to RMB392.5 million (US$62.6 million). The year-over-year increase was driven by the Company’s mobile game business, which grew by 25.3% year over year to RMB174.7 million (US$27.9 million) in the quarter. The increase in the mobile game operation was a result of the Company’s continued efforts to expand its mobile game portfolio by introducing some new mobile games in early 2017. In the first quarter of 2018, revenues from content-driven product decreased by 2.7% year over year to RMB217.7 million (US$34.7 million). The decrease was a result of a year-over-year growth in revenues from Live.me, which was offset by a decline in revenues from the News Republic application as the Company disposed of this operation in the fourth quarter of 2017.

By platform, revenues generated from the mobile business were 88.9% of total revenues in the first quarter of 2018, up from 85.3% in the same period last year.

By region, revenues generated from the Chinese market constituted 39.1% of total revenues in the first quarter of 2018, up from 27.6% in the same period last year. The growth of the Company’s revenues in the Chinese market was attributable to a ramp-up of mobile utility products and related services businesses in China and increased mobile game revenues in the Chinese market, where the Company’s mobile games continue to gain popularity.

Revenues generated from the overseas market constituted 60.9% of total revenues in the first quarter of 2018, a 17.6% decrease year over year to RMB697.5 million (US$111.2 million), mainly due to the impact of lock screen ads. Excluding the foreign exchange impact, revenues from the overseas market decreased by 11.4% year over year.  

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 14.6% year over year to RMB391.2 million (US$62.4 million) in the first quarter of 2018. The year-over-year decrease resulted from reduced bandwidth and IDC costs associated with the Company’s mobile utility applications in the overseas markets as well as lower amortization of acquired intangible assets. Non-GAAP cost of revenues decreased by 14.4% year over year to RMB391.3 million (US$62.4 million) in the first quarter of 2018.

Gross profit increased by 2.9% year over year to RMB753.9 million (US$120.2 million) in the first quarter of 2018. Non-GAAP gross profit increased by 2.7% year over year to RMB753.8 million (US$120.2 million) in the first quarter of 2018.

OPERATING INCOME AND EXPENSES

Total operating expenses decreased by 12.6% year over year to RMB617.6 million (US$98.5 million) in the first quarter of 2018. Total non-GAAP operating expenses decreased by 10.9% year over year to RMB608.5 million (US$97.0 million) in the first quarter of 2018.

  • Research and development (R&D) expense decreased by 23.0% year over year to RMB147.3 million (US$23.5 million) in the first quarter of 2018. The decreases were due to lower share-based compensation expenses and reduced R&D headcount resulting from the Company’s mobile utility application business in the overseas markets, and the disposal of News Republic. Non-GAAP R&D expenses, which exclude share-based compensation expenses, decreased by 15.6% year over year to RMB153.4 million (US$24.5 million) in the first quarter of 2018.
  • Selling and marketing expenses decreased by 5.5% year over year to RMB391.4 million (US$62.4 million) in the first quarter of 2018. The decreases were mainly due to decreased promotional activities for the Company’s mobile products in the overseas markets. Non-GAAP selling and marketing expenses, which exclude share-based compensation expenses, decreased by 5.6% year over year to RMB391.1 million (US$62.3 million) in the first quarter of 2018.
  • General and administrative expenses decreased by 12.5% year over year to RMB90.6 million (US$14.4 million) in the first quarter of 2018. The year-over-year decrease was primarily due to lower professional service fees and employee benefits. Non-GAAP general and administrative expenses, which exclude share-based compensation expenses, decreased by 15.4% year over year to RMB75.8 million (US$12.1 million) in the first quarter of 2018.

Operating profit increased to RMB136.4 million (US$21.7 million) in the first quarter of 2018 from RMB26.3 million in the same period last year. Non-GAAP operating profit increased to RMB145.3 million (US$23.2 million) in the first quarter of 2018 from RMB50.7 million in the same period last year. 

The Company has reported its operating profit along the following segments since the second quarter of 2017:

  • Operating profit for utility products and related services increased by 47.8% year over year to RMB264.7 million (US$42.2 million) in the first quarter of 2018 due to the optimization of the cost and expense structure for this segment.   
  • Operating loss for the mobile entertainment business was RMB75.0 million (US$12.0 million) in the first quarter of 2018, compared to operating loss of RMB128.5 million in the same period last year. The reduced loss was mainly a result of increased revenues generated from the Company’s mobile game businesses and reduced costs and expenses from the News Republic business, partially offset by the Company’s increased investments in the Live.me operation.

Share-based compensation expenses decreased by 63.4% year over year to RMB8.9 million (US$1.4 million) in the first quarter of 2018. The decrease resulted from a combination of several factors. The Company employed an accelerated method to recognize share-based compensation expenses. In addition, a significant number of share-based awards that were granted by the Company during its IPO in 2014 approached the end of their vesting periods in 2017. Furthermore, fewer share-based awards were granted in the first quarter of 2018 than in the same period last year.

IMPAIRMENT OF INVESTMENTS

Impairment of investments were RMB58.0 million (US$9.2 million) in the first quarter of 2018 primarily due to a one-time non-cash write-down of certain convertible loans to a third-party. The loss was recorded as a non-operating item since the loans were provided for investment purposes, which is outside of the Company’s main business activity.

NET INCOME ATTRIBUTABLE TO CHEETAH MOBILE SHAREHOLDERS

Net income attributable to Cheetah Mobile shareholders was RMB70.0 million (US$11.2 million) in the first quarter of 2018. Non-GAAP net income attributable to Cheetah Mobile shareholders was RMB78.9 million (US$12.6 million) in the first quarter of 2018.

NET INCOME PER ADS

Diluted income per ADS was RMB0.42 (US$0.07) in the first quarter of 2018. Non-GAAP diluted income per ADS was RMB0.48 (US$0.08) in the first quarter of 2018.

ADJUSTED EBITDA

Adjusted EBITDA (Non-GAAP) increased by 93.3% year over year to RMB168.8 million (US$26.9 million) in the first quarter of 2018.

CASH AND CASH EQUIVALENTS, RESTRICTED CASH AND SHORT-TERM INVESTMENTS BALANCE

As of March 31, 2018, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB3,355.8 million (US$535.0 million). 

SHARES ISSUED AND OUTSTANDING

As of March 31, 2018, the Company had a total of 1,421,649,639 Class A and Class B ordinary shares issued and outstanding. One ADS represents 10 Class A ordinary shares.

Business Outlook

For the second quarter of 2018, the Company expects its total revenues to be between RMB1,020 million (US$163 million) and RMB1,080 million (US$172 million). This estimate represents management’s preliminary view as of the date of this release, which is subject to change.

Conference Call Information

The Company will hold a conference call on Monday, May 21, 2018 at 8:00 a.m. Eastern Time or 8:00 p.m. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

 

International:

+1-412-902-4272

United States Toll Free:

+1-888-346-8982

China Toll Free:

4001-201-203

Hong Kong Toll Free:

800-905-945

Conference ID:

Cheetah Mobile

 

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.cmcm.com/.

A presentation for the Company’s earnings call is available at the Company’s investor relations website.

Exchange Rate

This press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars in this press release were made at a rate of RMB6.2726 to US$1.00, the exchange rate in effect as of March 31, 2018, as set forth in the H.10 statistical release of the Federal Reserve Board.  Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under accounting principles generally accepted in the United States of America (“U.S. GAAP”).

About Cheetah Mobile Inc.

Cheetah Mobile is a leading mobile Internet company with strong global vision. It has attracted hundreds of millions of monthly active users through its mobile utility products such as Clean Master and Cheetah Keyboard, casual games such as Piano Tiles 2, and live streaming product Live.me. The Company provides its advertising customers, which include direct advertisers and mobile advertising networks through which advertisers place their advertisements, with direct access to highly targeted mobile users and global promotional channels. The Company also provides value-added services to its mobile application users through the sale of in-app virtual items on selected mobile products and games. Cheetah Mobile is committed to leveraging its cutting-edge artificial intelligence technologies to power its products and make the world smarter. It has been listed on the New York Stock Exchange since May 2014. 

Safe Harbor Statement

This press release contains forward-looking statements. These statements, including management quotes and business outlook, constitute forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Such statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in the forward-looking statements, including but are not limited to the following: Cheetah Mobile’s growth strategies; Cheetah Mobile’s ability to retain and increase its user base and expand its product and service offerings; Cheetah Mobile’s ability to monetize its platform; Cheetah Mobile’s future business development, financial condition and results of operations; competition with companies in a number of industries including internet companies that provide online marketing services and internet value-added services; expected changes in Cheetah Mobile’s revenues and certain cost or expense items; and general economic and business condition globally and in China. Further information regarding these and other risks is included in Cheetah Mobile’s filings with the U.S. Securities and Exchange Commission. Cheetah Mobile does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Use of Non-GAAP Financial Measures

To supplement Cheetah Mobile’s consolidated financial information presented in accordance with U.S. GAAP, Cheetah Mobile uses the following non-GAAP financial measures:

  • Non-GAAP cost of revenues reflects cost of revenues excluding the portion of share-based compensation expenses allocated to cost of revenues.
  • Non-GAAP gross profit reflects gross profit excluding the portion of share-based compensation expenses allocated to gross profit.
  • Non-GAAP operating income and expenses reflect operating income and expenses excluding the portion of share-based compensation expenses allocated to operating expenses.
  • Non-GAAP operating profit reflects operating profit excluding share-based compensation expenses.
  • Non-GAAP net income attributable to Cheetah Mobile shareholders is net income attributable to Cheetah Mobile shareholders excluding share-based compensation expenses.
  • Non-GAAP diluted earnings per ADS is non-GAAP net income attributable to Cheetah Mobile shareholders excluding net income attributable to redeemable noncontrolling interests, divided by weighted average number of diluted ADSs.
  • Adjusted EBITDA is earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses.

The Company believes that separate analysis and exclusion of share-based compensation expenses and the use of Adjusted EBITDA add clarity to the constituent parts of its performance from the cash perspective. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance without the effect of share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Cheetah Mobile Inc. Reconciliations of GAAP and Non-GAAP Results” and “Cheetah Mobile Inc. Reconciliation of Net Income Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)” at the end of this release.

Investor Relations Contact
Cheetah Mobile Inc.
Helen Jing Zhu
Tel: +86 10 6292 7779 ext. 1600
Email: [email protected]

ICR, Inc.
Jack Wang
Tel: +1 (646) 417-5395
Email: [email protected]

 

CHEETAH MOBILE INC.

Condensed Consolidated Balance Sheets

(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”)

As of

 December 31, 2017

March 31, 2018

March 31, 2018

RMB

RMB

USD

ASSETS

Current assets:

Cash and cash equivalents

2,317,488

1,580,591

251,983

Restricted cash

90,149

9,494

1,514

Short-term investments

1,395,694

1,765,758

281,503

Accounts receivable

621,272

585,810

93,392

Prepayments and other current assets

918,243

881,568

140,544

Due from related parities

54,052

47,049

7,501

Total current assets

5,396,898

4,870,270

776,437

Non-current assets:

Property and equipment, net

89,137

81,468

12,988

Intangible assets, net 

70,225

67,548

10,769

Goodwill

634,157

615,947

98,196

Investment in equity investees

149,969

147,833

23,568

Other long term investments

1,002,721

982,797

156,681

Due from related parities

5,216

8,148

1,299

Deferred tax assets

57,642

65,267

10,405

Other non-current assets

42,966

42,020

6,699

Total non-current assets

2,052,033

2,011,028

320,605

Total assets

7,448,931

6,881,298

1,097,042

LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS’ EQUITY

Current liabilities: 

Bank loans

336,304

Accounts payable

164,537

174,520

27,823

Accrued expenses and other current liabilities

1,532,489

1,356,612

216,276

Due to related parties

81,810

45,535

7,259

Income tax payable

50,614

55,980

8,925

Total current liabilities

2,165,754

1,632,647

260,283

Non-current liabilities: 

Deferred tax liabilities

73,393

74,427

11,865

Other non-current liabilities

54,574

52,806

8,419

Total non-current liabilities

127,967

127,233

20,284

Total liabilities

2,293,721

1,759,880

280,567

Mezzanine equity:

Redeemable noncontrolling interests

649,246

658,247

104,940

Shareholders’ equity:

Ordinary shares

229

230

37

Additional paid-in capital

2,644,043

2,656,818

423,559

Retained earnings

1,564,883

1,637,837

261,110

Accumulated other comprehensive income (loss)

84,206

(48,983)

(7,809)

Total Cheetah Mobile shareholders’ equity

4,293,361

4,245,902

676,897

Noncontrolling interests

212,603

217,269

34,638

Total equity

4,505,964

4,463,171

711,535

Total liabilities, mezzanine equity and equity

7,448,931

6,881,298

1,097,042

   

CHEETAH MOBILE INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share (or ADS) data)

For The Three Months Ended

March 31, 2017

December 31, 2017

March 31, 2018

March 31, 2018

RMB

RMB

RMB

USD

Revenues (a)

1,190,703

1,387,806

1,145,097

182,555

Utility products and related services 

827,225

967,232

744,763

118,732

Mobile entertainment

363,468

399,493

392,452

62,566

Others

10

21,081

7,882

1,257

Cost of revenues (b)

(457,953)

(461,383)

(391,182)

(62,364)

Gross profit

732,750

926,423

753,915

120,191

Operating income and expenses: 

Research and development (b)

(191,367)

(151,867)

(147,278)

(23,480)

Selling and marketing (b) 

(414,264)

(420,080)

(391,355)

(62,391)

General and administrative (b) 

(103,588)

(115,089)

(90,600)

(14,444)

Impairment of goodwill and intangible assets

(38,690)

Other operating income

2,784

21,307

11,679

1,862

Total operating income and  expenses

(706,435)

(704,419)

(617,554)

(98,453)

Operating profit

26,315

222,004

136,361

21,738

Other income (expense):

Interest income, net

1,616

10,227

16,652

2,655

Foreign exchange gain (loss), net

1,213

(5,943)

(12,829)

(2,045)

Impairment of investments

(209,565)

(58,000)

(9,247)

(Losses) Gain from equity method investments, net

(367)

1,921

(2,739)

(437)

Other income, net

66,685

1,088,965

500

80

Income before taxes

95,462

1,107,609

79,945

12,744

Income tax expenses

(4,912)

(40,259)

(5,042)

(804)

Net income

90,550

1,067,350

74,903

11,940

Less: net (loss) income attributable to noncontrolling interests 

(679)

20,264

4,906

782

Net income attributable to Cheetah Mobile shareholders

91,229

1,047,086

69,997

11,158

Earnings per share

Basic 

0.07

0.74

0.04

0.01

Diluted 

0.06

0.73

0.04

0.01

Earnings per ADS

Basic 

0.66

7.43

0.43

0.07

Diluted 

0.64

7.27

0.42

0.07

Weighted average number of shares outstanding

Basic 

1,387,446,596

1,400,420,814

1,403,597,719

1,403,597,719

Diluted 

1,422,443,105

1,432,849,633

1,452,802,118

1,452,802,118

Weighted average number of ADSs outstanding

Basic 

138,744,660

140,042,081

140,359,772

140,359,772

Diluted 

142,244,310

143,284,963

145,280,212

145,280,212

Other comprehensive loss, net of tax of nil

Foreign currency translation adjustments

(8,517)

(52,267)

(134,774)

(21,486)

Unrealized losses on available-for-sale securities, net

(433)

Other comprehensive loss

(8,517)

(52,700)

(134,774)

(21,486)

Total comprehensive income (loss)

82,033

1,014,650

(59,871)

(9,546)

Less: Total comprehensive income attributable to noncontrolling interests

119

18,568

3,321

529

Total comprehensive income (loss) attributable to Cheetah Mobile shareholders

81,914

996,082

(63,192)

(10,075)

 

CHEETAH MOBILE INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited, amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share
(or ADS) data)

  (a) On January 1, 2018, The Group adopted ASC 606, applying the modified retrospective method to contracts that were not completed as of January 1, 2018. Adoption did not have a material impact as of January 1, 2018. Results for reporting periods beginning on or after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting under ASC 605. As ASC 605 has been superseded by ASC 606 on this subject, value added tax was reclassified from the cost of revenues to net against revenues. Advertising-for-advertising barter transactions should be recorded at the fair value of the advertising received by reference to the fair value of advertising services provided to other customers. Revenues are recognized in the same amount with costs and  expenses. Previously, such transactions were recorded at  cost which was nil as no consideration was exchanged. The following table illustrates the effect of the adoption of ASC 606 by presenting a comparison of revenues for the three months ended March 31, 2018, as actually reported and as they would have been reported under ASC 605, without the adoption of ASC 606:  

For The Three Months Ended

March 31, 2018

March 31, 2018

RMB

USD

As reported

1,145,097

182,555

Add: value added taxes

28,314

4,514

Less: barter transactions

3,801

606

Without adoption of ASC 606

1,169,610

186,463

For The Three Months Ended

March 31, 2017

December 31, 2017

March 31, 2018

March 31, 2018

(b) Share-based compensation expenses

RMB

RMB

RMB

USD

Cost of revenues

934

(981)

(90)

(14)

Research and development

9,571

4,471

(6,143)

(979)

Selling and marketing

(188)

(3,049)

302

48

General and administrative

14,051

2,933

14,850

2,367

Total

24,368

3,374

8,919

1,422

 

CHEETAH MOBILE INC.

Information about Segment 

(Unaudited, in’000, except for percentage)

For The Three Months Ended March 31, 2018

Utility Products and
Related Services

Mobile Entertainment

Others 

Unallocated*

Consolidated

RMB

RMB

RMB

RMB

RMB

USD

Revenue

744,763

392,452

7,882

1,145,097

182,555

Operating profit (loss)

264,706

(75,046)

(44,380)

(8,919)

136,361

21,738

Operating margin

35.5%

(19.1)%

(563.1)%

11.9%

11.9%

For The Three Months Ended December 31, 2017

Utility Products and

Related Services

Mobile Entertainment

Others 

Unallocated*

Consolidated

RMB

RMB

RMB

RMB

RMB

Revenue

967,232

399,493

21,081

1,387,806

Operating profit (loss)

326,950

(61,846)

(39,726)

(3,374)

222,004

Operating margin

33.8%

(15.5)%

(188.4)%

16.0%

For The Three Months Ended March 31, 2017

Utility Products and 
Related Services

Mobile Entertainment

Others 

Unallocated*

Consolidated

RMB

RMB

RMB

RMB

RMB

Revenue

827,225

363,468

10

1,190,703

Operating profit (loss)

179,158

(128,478)

3

(24,368)

26,315

Operating margin

21.7%

(35.3)%

30.0%

2.2%

* Unallocated expenses refer to SBC expenses that are not allocated to individual segments.

 

CHEETAH MOBILE INC.

Reconciliation of GAAP and Non-GAAP Results

(Unaudited, in’000, except for per share data and percentage)

For The Three Months Ended March 31, 2018

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Non-GAAP

Result

Revenues

Compensation

Revenues

Result

Revenues

Result ($)

Revenues

1,145,097

1,145,097

182,555

Cost of revenues

(391,182)

34.2%

(90)

0.0%

(391,272)

34.2%

(62,378)

Gross profit

753,915

65.8%

(90)

0.0%

753,825

65.8%

120,177

Research and development 

(147,278)

12.9%

(6,143)

0.5%

(153,421)

13.4%

(24,459)

Selling and marketing 

(391,355)

34.2%

302

0.0%

(391,053)

34.2%

(62,343)

General and administrative 

(90,600)

7.9%

14,850

1.3%

(75,750)

6.6%

(12,077)

Other operating income

11,679

1.0%

0.0%

11,679

1.0%

1,862

Total operating income and expenses

(617,554)

53.9%

9,009

0.8%

(608,545)

53.1%

(97,017)

Operating profit 

136,361

11.9%

8,919

0.8%

145,280

12.7%

23,160

Net income attributable to

Cheetah Mobile shareholders

69,997

6.1%

8,919

0.8%

78,916

6.9%

12,581

Diluted earnings per ordinary share (RMB)

0.04

0.01

0.05

Diluted earnings per ADS (RMB)

0.42

0.06

0.48

Diluted earnings per ADS (USD)

0.07

0.01

0.08

For The Three Months Ended December 31, 2017

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Result

Revenues

Compensation

Revenues

Result

Revenues

Revenues

1,387,806

1,387,806

Cost of revenues

(461,383)

33.2%

(981)

0.1%

(462,364)

33.3%

Gross profit

926,423

66.8%

(981)

0.1%

925,442

66.7%

Research and development 

(151,867)

10.9%

4,471

0.3%

(147,396)

10.6%

Selling and marketing 

(420,080)

30.3%

(3,049)

0.2%

(423,129)

30.5%

General and administrative 

(115,089)

8.3%

2,933

0.2%

(112,156)

8.1%

Impairment of goodwill and intangible assets

(38,690)

2.8%

0.0%

(38,690)

2.8%

Other operating income

21,307

1.5%

0.0%

21,307

1.5%

Total operating income and expenses

(704,419)

50.8%

4,355

0.3%

(700,064)

50.4%

Operating profit

222,004

16.0%

3,374

0.2%

225,378

16.2%

Net income attributable to Cheetah Mobile shareholders

1,047,086

75.4%

3,374

0.2%

1,050,460

75.7%

Diluted earnings per ordinary share (RMB)

0.73

0.00

0.73

Diluted earnings per ADS (RMB)

7.27

0.02

7.29

For The Three Months Ended March 31, 2017

GAAP

% of Net

Share-based 

% of Net

Non-GAAP

% of Net

Result

Revenues

Compensation

Revenues

Result

Revenues

Revenues

1,190,703

1,190,703

Cost of revenues

(457,953)

38.5%

934

0.1%

(457,019)

38.4%

Gross profit

732,750

61.5%

934

0.1%

733,684

61.6%

Research and development 

(191,367)

16.1%

9,571

0.8%

(181,796)

15.3%

Selling and marketing 

(414,264)

34.8%

(188)

0.0%

(414,452)

34.8%

General and administrative 

(103,588)

8.7%

14,051

1.2%

(89,537)

7.5%

Other operating income

2,784

0.2%

0.0%

2,784

0.2%

Total operating income and expenses

(706,435)

59.3%

23,434

2.0%

(683,001)

57.4%

Operating profit

26,315

2.2%

24,368

2.0%

50,683

4.3%

Net income attributable to

Cheetah Mobile Shareholders

91,229

7.7%

24,368

2.0%

115,597

9.7%

Diluted earnings per ordinary share (RMB)

0.06

0.02

0.08

Diluted earnings per ADS (RMB)

0.64

0.17

0.81

 

CHEETAH MOBILE INC.

Reconciliation from Net Income Attributable to Cheetah Mobile Shareholders to Adjusted EBITDA (Non-GAAP)

(Unaudited, in ‘000)

For The Three Months Ended

March 31, 2017

December 31, 2017

March 31, 2018

March 31, 2018

RMB

RMB

RMB

USD

Net income attributable to Cheetah Mobile shareholders

91,229

1,047,086

69,997

11,158

Add:

Income tax expenses

4,912

40,259

5,042

804

Interest income, net

(1,616)

(10,227)

(16,652)

(2,655)

Depreciation and amortization

36,595

30,377

23,472

3,742

Net (loss) income attributable to noncontrolling interests 

(679)

20,264

4,906

782

Other non-operating  (income) expense, net

(67,531)

(875,378)

73,068

11,649

Share-based compensation 

24,368

3,374

8,919

1,422

Adjusted EBITDA

87,278

255,755

168,752

26,902

 

CHEETAH MOBILE INC.

Revenues Generated from PC-based and Mobile-based Applications and Services

(Unaudited, in ‘000)

For The Three Months Ended

March 31, 2017

December 31, 2017

March 31, 2018

March 31, 2018

RMB

RMB

RMB

USD

PC

182,337

170,259

127,094

20,262

Mobile

1,008,366

1,217,547

1,018,003

162,293

Total

1,190,703

1,387,806

1,145,097

182,555

 

CHEETAH MOBILE INC.

Revenues Generated from Domestic and Overseas Markets

(Unaudited, in ‘000)

For The Three Months Ended

March 31, 2017

December 31, 2017

March 31, 2018

March 31, 2018

RMB

RMB

RMB

USD

Domestic

342,383

543,974

447,620

71,361

Overseas

848,320

843,832

697,477

111,194

Total

1,190,703

1,387,806

1,145,097

182,555

 

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SOURCE Cheetah Mobile

BEIJING, May 21, 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 SFbest.com (“SFbest”), a subsidiary of SF Holding Company Limited (SZ:002352), as a new client.

SFbest is an online e-commerce platform for selling high quality fresh food in China. SFbest will leverage Gridsum’s cutting edge Marketing Automation Suite to further drive uptake of its mobile application. Gridsum’s Marketing Automation suite leverages cloud-based big-data analytics and AI capabilities to analyze SFbest consumer behavior across multiple marketing channels, including social media, search, newsfeeds, and app stores, to create highly-targeted marketing content that focuses on individuals rather than broader demographics and optimizes digital marketing spending.

Mr. Guosheng Qi, Chief Executive Officer of Gridsum, commented, “I’m pleased to welcome SFbest.com to our growing portfolio of clients. By integrating and analyzing media and user data across a broad range of digital marketing environments, our Marketing Automation suite will help SFbest.com to automate a greater share of their digital marketing spending and further promote the uptake of its mobile application. The number of mobile application downloads for e-commerce platforms such as SFbest is critical to their success and we are proud to have been selected to help them with this. I believe our Marketing Automation Suite will be a key facilitator in helping SFbest increase mobile application uptake rates and marketing and sales efficiency.”

About SFbest.com

Sfbest.com, a subsidiary of SF Holding Company Limited (SZ:002352), is an online e-commerce platform for selling high quality fresh food in China. It directly imports food from more than 60 countries and regions and provides household delivery services.

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,” 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. Forward-looking statements involve inherent risks and uncertainties. Many 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; unexpected difficulties and potential delays in filing annual or other reports with the SEC; 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. 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 
[email protected]

Christensen

In China 
Mr. Christian Arnell 
Phone: +86-10-5900-1548 
Email: [email protected] 

In U.S. 
Mr. Tip Fleming 
Phone: +1 917 412 3333 
Email: [email protected]

Cision View original content:http://www.prnewswire.com/news-releases/gridsum-signs-sfbestcom-as-new-client-300651669.html

SOURCE Gridsum Holding Inc.

SAN FRANCISCO, May 21, 2018 /PRNewswire-PRWeb/ — Clovity Inc., an industry recognized end-to-end IoT solution provider, the creator of CSensorNet and CDatainsights, who is leading the designing and building of intelligent solutions, today announced expanded capabilities which include Connected Devices capabilities, Big data, Analystics & data management and Cloud Migration including Cloud native development. Clovity is also fostering innovation ‘center’ – dedicated space within Clovity Development Center and Innovation Hub located in New Delhi, India where Cloud & DevOps specialists from Clovity work together to build intelligent solutions.

With Clovity’s extensive experience in leading transformations in IoT, Cloud, Digital and Data, the clients looking for NexGen Cloud solutions benefit from customized, powerful and scalable enterprise Cloud migrations and deployments to deliver such innovation lead transformations for Financial, Retail, Healthcare, Health-tech and High-Tech industries.

In addition, Clovity’s dedicated Cloud Practice provides full-stack delivery and software engineering on AWS & Azure Cloud. These focused services, coupled with certified software engineers, solution and technical architects help deliver full-stack on Enterprise Cloud needs.

$1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years” said Srinivasan Rangarajan, Head of Solutions of Clovity. He added “Through 2020, public cloud infrastructure workloads will suffer at least 60% fewer security incidents than those in traditional data centers and this would be a direct result of right partners, tools and solutions which can accelerate the time-to-cloud by upto 60%”

According to the results of a recent IDG study based on a survey of 600 cloud-using companies, organizations in the cloud report more quantifiable benefits coupled with deeper transformative value, including improved customer satisfaction.

“Our aim is to bring best-of-the-breed services together and demonstrate harnessing the possibilities through Cloud,” said Gaurav Mohan, Sr. Vice President and Client Partner at Clovity. “Our clients are experiencing Connected Devices & Big Data lead digital transformation which are best supported by the cloud, and developing end-to-end solutions on Cloud helps them to bring innovation and agility to the core of their digital transformation journeys.”

About Clovity
As a Global Top 20 IoT Solutions Provider for 2017 & 2018 by CIO Magazine. Thinking “Agile | IoT | Embedded | Data | ML | AI | Cloud | DevOps | Digital” – Clovity a global Solutions Partner and Systems Integrator focused on transforming enterprises worldwide.

Clovity’s technology and teams are helping Fortune 500 enterprises and high growth mid-market technology enterprises with fully integrated device-to-cloud-to-enterprise integration solutions with the outcome to simplify building your Internet of Things (IoT), Data, Cloud & Digital platforms to power tomorrow’s Enterprise world.

Clovity’s cognitive strength lies in the amalgamation of two powerful ideas – collaboration and transformity.

Clovity emphasizes on combining thought leadership, innovation and passion for technology together to achieve successful transformation and ‘disruptive solutions’ for Banking Finance, Healthcare and Retail industries that are IoT, Cloud, Consumerization and Big Data’ focused.

Clovity’s commitment to innovation has led to many Plug and Play solutions and frameworks in IoT (CSensorNet), Predictive Analytics (CDataInsights), DevOps, Mobility etc. that enables customers for faster time to market product launches.

Clovity underpins its solutions with ‘deep Agile expertise’ by leveraging its Agile Framework: Synthesis in every aspect of customer journey to ensure complete collaboration and transparency. Clovity’s key is to work in absolute synchrony with customers to deliver solutions and projects to create scalable technology foundation and architecture for all future advancements.

 

SOURCE Clovity

MOUNTAIN VIEW, Calif., May 21, 2018 /PRNewswire/ — Pure Storage (NYSE: PSTG), the all-flash storage platform that helps innovators build a better world with data, today announced financial results for its first quarter ended April 30, 2018.

www.purestorage.com (PRNewsFoto/Pure Storage) (PRNewsfoto/Pure Storage)

Key quarterly financial highlights include:

  • Revenue: $255.9 million, up 40% Y/Y, exceeding the high end of our guidance;
  • Operating margin: -24.2% GAAP; -6.0% non-GAAP, up 7.7 ppts and 7.9 ppts Y/Y, respectively;
  • Operating cash flow: $18.6 million, free cash flow without ESPP impact: $8.6 million.

“Pure has delivered another strong quarter as we lead the industry in delivering new data-centric architectures that enable enterprises to succeed both today and tomorrow,” said Pure Storage CEO Charles Giancarlo. “The combination of our innovative business model, first-to-market technology innovations, and focus on customer success drove continued momentum in Q1.”

Approximately 300 new customers joined Pure Storage in the quarter, increasing the total to more than 4,800 organizations. New customer wins in the quarter include: ALDI International, Barnes & Noble Education, Inc., U.S. Department of Energy, Paige.AI, and Panasonic Taiwan.

“Q1 marked a great start to fiscal 2019, growing 40% year-over-year in revenue and exceeding our operating margin goal,” said Tim Riitters, CFO of Pure Storage. “We are focused on driving industry-leading growth and profitability in our business.”

New Revenue Accounting Standard

Pure Storage adopted ASC 606, the new standard related to revenue recognition effective February 1, 2018. Prior period financial information in this press release has been adjusted to reflect the adoption of this new standard. Please also refer to our earnings presentation on investor.purestorage.com for further information. 

First Quarter Fiscal 2019 Financial Highlights

The following tables summarize our consolidated financial results for the fiscal quarters ended April 30, 2018 and 2017 (in millions except percentages, per share amounts and headcount, unaudited):

GAAP Quarterly Financial Information

Three Months Ended
April 30, 2018

Three Months Ended
April 30, 2017

Y/Y Change

Revenue

$255.9

$182.6

40%

Gross Margin

65.0%

65.2%

-0.2 ppts

Product Gross Margin

66.0%

67.3%

-1.3 ppts

Support Subscription Gross Margin

61.6%

57.5%

4.1 ppts

Operating Loss

-$61.9

-$58.2

-$3.7

Operating Margin

-24.2%

-31.9%

7.7 ppts

Net Loss

-$64.3

-$57.2

-$7.1

Net Loss per Share (Basic and Diluted)

-$0.29

-$0.28

-$0.01

Weighted-Average Shares

223.8

205.8

18.0

Headcount

>2,300

>1,800

~500

Non-GAAP Quarterly Financial Information

Three Months Ended
April 30, 2018

Three Months
Ended April 30, 2017

Y/Y Change

Gross Margin

66.3%

66.4%

-0.1 ppts

Product Gross Margin

66.3%

67.6%

-1.3 ppts

Support Subscription Gross Margin

66.3%

62.1%

4.2 ppts

Operating Loss

-$15.3

-$25.3

$10.0

Operating Margin

-6.0%

-13.9%

7.9 ppts

Net Loss

-$16.2

-$24.3

$8.1

Net Loss per Share

-$0.07

-$0.12

$0.05

Weighted-Average Shares

223.8

205.8

18.0

A reconciliation between GAAP and non-GAAP information is provided at the end of this release.

Financial Outlook

Pure Storage’s second quarter fiscal 2019 guidance is as follows:

  • Revenue in the range of $296 million to $304 million
  • Non-GAAP gross margin in the range of 63.5% to 66.5%
  • Non-GAAP operating margin in the range of -7.0% to -3.0%

Pure Storage’s full year fiscal 2019 guidance is as follows:

  • Revenue in the range of $1.320 billion to $1.370 billion
  • Non-GAAP gross margin in the range of 63.5% to 66.5%
  • Non-GAAP operating margin in the range of 0% to 4%

All forward-looking non-GAAP financial measures contained in this section titled “Financial Outlook” exclude stock-based compensation expense, payroll tax expense related to stock-based activities, amortization of debt discount and debt issuance costs and any applicable anti-dilutive share count impact of the convertible debt hedge agreements and, as applicable, other special items. We have not reconciled guidance for non-GAAP gross margin and non-GAAP operating margin to their most directly comparable GAAP measures because such items that impact these measures are not within our control and/or cannot be reasonably predicted. Accordingly, a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures is not available without unreasonable effort.

Conference Call Information

Pure Storage will host a teleconference to discuss the first quarter fiscal 2019 results at 2:00 p.m. (PT) on May 21, 2018. Pure Storage will post its supplemental earnings presentation to the investor relations website at investor.purestorage.com following the conference call.

Teleconference details are as follows:

  • To Listen via Telephone: (877) 201-0168 or (647) 788-4901 (for international callers).
  • To Listen via the Internet: A live and replay audio broadcast of the conference call with corresponding slides will be available at investor.purestorage.com.
  • Replay: A telephone playback of this conference call is scheduled to be available two hours after the call ends on Monday, May 21, 2018, through June 4, 2018. The replay will be accessible by calling (800) 585-8367 or (416) 621-4642 (for international callers), with conference ID 9572519. The call runs 24 hours per day, including weekends.

2018 Annual Meeting of Stockholders

Pure Storage will hold its 2018 annual meeting of stockholders on Thursday, June 21, 2018 at 10:00 a.m. (PT). The meeting will be held virtually, via live webcast at www.virtualshareholdermeeting.com/PSTG2018. The record date for the meeting was April 25, 2018, and only stockholders of record on that date are eligible to participate in the meeting. Other interested persons may listen to the live webcast of the meeting and can view the 2018 proxy statement and Annual Report on Form 10-K at investor.purestorage.com.

Upcoming Events

Pure Storage will host an investor session at its annual conference, Pure//Accelerate 2018, on May 23, 2018 at 2:00 p.m. (PT). The event will be a live webcast on the investor relations website at investor.purestorage.com. Pure Storage will also be participating in financial conferences on June 6th,7th, and 12th of 2018.

About Pure Storage
Pure Storage (NYSE: PSTG) helps innovators build a better world with data. Pure’s data solutions enable SaaS companies, cloud service providers, and enterprise and public sector customers to deliver real-time, secure data to power their mission-critical production, DevOps, and modern analytics environments in a multi-cloud environment. One of the fastest growing enterprise IT companies in history, Pure Storage enables customers to quickly adopt next-generation technologies, including artificial intelligence and machine learning, to help maximize the value of their data for competitive advantage. And with a Satmetrix-certified NPS customer satisfaction score in the top one percent of B2B companies, Pure’s ever-expanding list of customers are among the happiest in the world.

Analyst Recognition:
Gartner Magic Quadrant for Solid-State Arrays
IDC MarketScape for All-Flash Arrays

Pure Storage, Evergreen, FlashBlade, FlashStack and the “P” Logo mark are trademarks of Pure Storage, Inc. All other trademarks or names referenced in this document are the property of their respective owners.

Forward Looking Statements
This press release contains forward-looking statements regarding our products, business and operations, including our growth prospects and expectations regarding technology differentiation, and our outlook for the second quarter and full year fiscal 2019, and statements regarding our products, business, operations and results. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the captions “Risk Factors” and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, including, which are available on our investor relations website at investor.purestorage.com and on the SEC website at www.sec.gov. Additional information is also available in our Annual Report on Form 10-K for the year ended January 31, 2018. All information provided in this release and in the attachments is as of May 21, 2018,and we undertake no duty to update this information unless required by law.

Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, free cash flow, free cash flow as a percentage of revenue, free cash flow without ESPP impact, and free cash flow without ESPP impact as a percentage of revenue. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense and amortization of debt discount and debt issuance costs that may not be indicative of our ongoing core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and planning, forecasting, and analyzing future periods. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned “Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures” and “Reconciliation from net cash provided by (used in) operating activities to free cash flow and free cash flow without ESPP impact,” included at the end of this release.

PURE STORAGE, INC.

Condensed Consolidated Balance Sheets

(in thousands, unaudited)

As of
April 30, 2018

As of
January 31, 2018

(As Adjusted*)

Assets

Current assets:

Cash and cash equivalents

$

735,140

$

244,057

Marketable securities

362,817

353,289

Accounts receivable, net of allowance of $999 and $1,062

195,926

243,001

Inventory

38,540

34,497

Deferred commissions, current

20,122

21,088

Prepaid expenses and other current assets

35,652

47,552

Total current assets

1,388,197

943,484

Property and equipment, net

94,280

89,142

Intangible assets, net

4,681

5,057

Deferred income taxes, non-current

1,175

1,060

Restricted cash

16,499

14,763

Deferred commissions, non-current

65,922

66,225

Other assets, non-current

5,305

4,264

Total assets

$

1,576,059

$

1,123,995

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

63,994

$

84,420

Accrued compensation and benefits

30,778

59,898

Accrued expenses and other liabilities

25,629

26,829

Deferred revenue, current

199,622

191,229

Liability related to early exercised stock options

320

Total current liabilities

320,023

362,696

Long term debt

430,253

Deferred revenue, non-current

188,992

182,873

Other liabilities, non-current

5,171

4,025

Total liabilities

944,439

549,594

Stockholders’ equity:

Common stock and additional paid-in capital

1,602,144

1,479,905

Accumulated other comprehensive loss

(2,633)

(1,917)

Accumulated deficit

(967,891)

(903,587)

Total stockholders’ equity

631,620

574,401

Total liabilities and stockholders’ equity

$

1,576,059

$

1,123,995

* Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.

PURE STORAGE, INC.

Condensed Consolidated Statements of Operations

(in thousands, except per share data, unaudited)

Three Months Ended April 30,

2018

2017

(As Adjusted*)

Revenue:

Product

$

195,449

$

142,850

Support subscription

60,496

39,795

Total revenue

255,945

182,645

Cost of revenue:

Product (1)

66,420

46,645

Support subscription(1)

23,210

16,903

Total cost of revenue

89,630

63,548

Gross profit

166,315

119,097

Operating expenses:

Research and development (1)

78,492

65,428

Sales and marketing (1)

122,367

91,763

General and administrative (1)

27,330

20,096

Total operating expenses

228,189

177,287

Loss from operations

(61,874)

(58,190)

Other income (expense), net

(999)

1,995

Loss before provision for income taxes

(62,873)

(56,195)

Provision for income taxes

1,431

964

Net loss

$

(64,304)

$

(57,159)

Net loss per share attributable to common
stockholders, basic and diluted

$

(0.29)

$

(0.28)

Weighted-average shares used in computing net
loss per share attributable to common
stockholders, basic and diluted

223,768

205,783

* Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.

(1) Includes stock-based compensation expense as follows:

Cost of revenue — product

$

608

$

397

Cost of revenue — support subscription

2,684

1,774

Research and development

21,090

15,588

Sales and marketing

13,940

10,626

General and administrative

5,633

3,834

Total stock-based compensation expense

$

43,955

$

32,219

PURE STORAGE, INC.

Condensed Consolidated Statements of Cash Flows

(in thousands, unaudited)

Three Months Ended April 30,

2018

2017

(As Adjusted*)

Cash flows from operating activities

Net loss

$

(64,304)

$

(57,159)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

16,417

14,825

Amortization of debt discount and debt issuance costs

1,455

Stock-based compensation expense

43,955

32,219

Other

152

451

Changes in operating assets and liabilities:

Accounts receivable, net

47,143

36,571

Inventory

(4,429)

(16,105)

Deferred commissions

1,269

(1,367)

Prepaid expenses and other assets

11,111

(3,944)

Accounts payable

(18,802)

(3,982)

Accrued compensation and other liabilities

(29,881)

(24,194)

Deferred revenue

14,510

8,384

Net cash provided by (used in) operating activities

18,596

(14,301)

Cash flows from investing activities

Purchases of property and equipment

(22,296)

(12,769)

Purchases of marketable securities

(81,702)

(55,976)

Sales of marketable securities

10,454

5,384

Maturities of marketable securities

61,023

46,321

Net cash used in investing activities

(32,521)

(17,040)

Cash flows from financing activities

Net proceeds from exercise of stock options

9,614

2,257

Proceeds from issuance of common stock under employee stock purchase plan

19,698

14,166

Proceeds from issuance of convertible debt, net of issuance costs

562,062

Payment for purchase of capped call

(64,630)

Repurchase of common stock

(20,000)

Net cash provided by financing activities

506,744

16,423

Net increase (decrease) in cash, cash equivalents and restricted cash

492,819

(14,918)

Cash, cash equivalents and restricted cash, beginning of period

258,820

196,409

Cash, cash equivalents and restricted cash, end of period

$

751,639

$

181,491

* Prior period information has been adjusted to reflect the adoption impact of ASC 606 and ASU 2016-18, which we adopted on February 1, 2018.

 

Reconciliations of non-GAAP results of operations to the nearest comparable GAAP measures

The following table presents non-GAAP gross margins by revenue source before certain items (in thousands except percentages, unaudited):

Three Months Ended April 30, 2018

Three Months Ended April 30, 2017 (As Adjusted*)

GAAP
results

GAAP
gross
margin (a)

Adjustment

Non-
GAAP
results

Non-
GAAP
gross
margin (b)

GAAP
results

GAAP
gross
margin (a)

Adjustment

Non-
GAAP
results

Non-
GAAP
gross
margin (b)

$

608

(c)

$

397

(c)

25

(d)

5

(d)

Gross profit — product

$

129,029

66.0

%

$

633

$

129,662

66.3

%

$

96,205

67.3

%

$

402

$

96,607

67.6

%

$

2,684

(c)

$

1,774

(c)

142

(d)

31

(d)

Gross profit — support subscription

$

37,286

61.6

%

$

2,826

$

40,112

66.3

%

$

22,892

57.5

%

$

1,805

$

24,697

62.1

%

$

3,292

(c)

$

2,171

(c)

167

(d)

36

(d)

Total gross profit

$

166,315

65.0

%

$

3,459

$

169,774

66.3

%

$

119,097

65.2

%

$

2,207

$

121,304

66.4

%

 * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.

(a) GAAP gross margin is defined as gross profit divided by revenue.

(b) Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.

(c) To eliminate stock-based compensation expense.

(d) To eliminate payroll tax expense related to stock-based activities.

 

The following table presents certain non-GAAP consolidated results before certain items (in thousands, except per share amounts and percentages, unaudited):

Three Months Ended April 30, 2018

Three Months Ended April 30, 2017 (As Adjusted*)

GAAP

results

GAAP

operating

margin (a)

Adjustment

Non-

GAAP

results

Non-

GAAP

operating

margin (b)

GAAP

results

GAAP

operating

margin (a)

Adjustment

Non-

GAAP

results

Non-

GAAP

operating

margin (b)

$

43,955

(c)

$

32,219

(c)

2,667

(d)

651

(d)

Loss from operations

$

(61,874)

-24.2

%

$

46,622

$

(15,252)

-6.0

%

$

(58,190)

-31.9

%

$

32,870

$

(25,320)

-13.9

%

$

43,955

(c)

$

32,219

(c)

2,667

(d)

651

(d)

1,455

(e)

Net loss

$

(64,304)

$

48,077

$

(16,227)

$

(57,159)

$

32,870

$

(24,289)

Net loss per share –basic and diluted

$

(0.29)

$

(0.07)

$

(0.28)

$

(0.12)

Weighted-average shares used in per share calculation — basic and diluted

223,768

223,768

205,783

205,783

 * Prior period information has been adjusted to reflect the adoption impact of ASC 606, which we adopted on February 1, 2018.

(a) GAAP operating margin is defined as loss from operations divided by revenue.

(b) Non-GAAP operating margin is defined as non-GAAP loss from operations divided by revenue.

(c) To eliminate stock-based compensation expense.

(d) To eliminate payroll tax expense related to stock-based activities.

(e) To eliminate the amortization expense of debt discount and debt issuance costs related to our convertible debt.

 

Reconciliation from net cash provided by (used in) operating activities to free cash flow and free cash flow without ESPP impact (in thousands except percentages, unaudited):

Three Months Ended April 30,

2018

2017

Net cash provided by (used in) operating activities

$

18,596

$

(14,301)

Less: purchases of property and equipment

(22,296)

(12,769)

Free cash flow (non-GAAP)

$

(3,700)

$

(27,070)

Adjust: ESPP impact

12,252

9,698

Free cash flow without ESPP impact (non-GAAP)

$

8,552

$

(17,372)

Free cash flow as % of revenue

-1.4

%

-14.8

%

Free cash flow without ESPP impact as % of revenue

3.3

%

-9.5

%

 

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SOURCE Pure Storage