|
Reconciliation of selected GAAP-based measures to Non-GAAP-based measures for the six months ended December 31, 2014. (In thousands except for per share amounts) |
||||||||||||||
|
Six Months Ended December 31, 2014 |
||||||||||||||
|
GAAP-based Measures |
GAAP-based Measures % of Revenue |
Adjustments |
Note |
Non-GAAP-based Measures |
Non-GAAP-based Measures % of Revenue |
|||||||||
|
Cost of revenues |
||||||||||||||
|
Cloud services |
$ |
114,970 |
$ |
(399) |
(1) |
$ |
114,571 |
|||||||
|
Customer support |
47,160 |
(408) |
(1) |
46,752 |
||||||||||
|
Professional service and other |
92,002 |
(598) |
(1) |
91,404 |
||||||||||
|
Amortization of acquired technology-based intangible assets |
36,412 |
(36,412) |
(2) |
— |
||||||||||
|
GAAP-based gross profit and gross margin (%) /
|
624,588 |
67.8 |
% |
37,817 |
(3) |
662,405 |
71.9 |
% |
||||||
|
Operating expenses |
||||||||||||||
|
Research and development |
90,912 |
(1,177) |
(1) |
89,735 |
||||||||||
|
Sales and marketing |
170,109 |
(4,668) |
(1) |
165,441 |
||||||||||
|
General and administrative |
75,605 |
(2,128) |
(1) |
73,477 |
||||||||||
|
Amortization of acquired customer-based intangible assets |
51,248 |
(51,248) |
(2) |
— |
||||||||||
|
Special charges (recoveries) |
(1,590) |
1,590 |
(4) |
— |
||||||||||
|
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%) |
213,597 |
23.2 |
% |
95,448 |
(5) |
309,045 |
33.5 |
% |
||||||
|
Other income (expense), net |
(19,187) |
19,187 |
(6) |
— |
||||||||||
|
Provision for (recovery of) income taxes |
35,710 |
16,165 |
(7) |
51,875 |
||||||||||
|
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText |
138,913 |
98,470 |
(8) |
237,383 |
||||||||||
|
GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText |
$ |
1.13 |
$ |
0.80 |
(8) |
$ |
1.93 |
|||||||
|
(1) |
Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. |
|
(2) |
Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results. |
|
(3) |
GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue. |
|
(4) |
Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results. |
|
(5) |
GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue. |
|
(6) |
Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. |
|
(7) |
Adjustment relates to differences between the GAAP-based tax provision of approximately 20% and a Non-GAAP-based tax rate of 18%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating Non-GAAP-based adjusted net income. |
|
(8) |
Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income: |
|
Six Months Ended December 31, 2014 |
||||||
|
Per share diluted |
||||||
|
Non-GAAP-based net income, attributable to OpenText |
$ |
237,383 |
$ |
1.93 |
||
|
Less: |
||||||
|
Amortization |
87,660 |
0.71 |
||||
|
Share-based compensation |
9,378 |
0.08 |
||||
|
Special charges (recoveries) |
(1,590) |
(0.01) |
||||
|
Other (income) expense, net |
19,187 |
0.16 |
||||
|
GAAP-based provision for (recovery of) income taxes |
35,710 |
0.29 |
||||
|
Non-GAAP based provision for income taxes |
(51,875) |
(0.43) |
||||
|
GAAP-based net income, attributable to OpenText |
$ |
138,913 |
$ |
1.13 |
||
