There were 1,086 press releases posted in the last 24 hours and 453,846 in the last 365 days.

BroadSoft Reports Second Quarter 2016 Financial Results


/EINPresswire.com/ -- GAITHERSBURG, MD -- (Marketwired) -- 08/01/16 -- BroadSoft, Inc. (NASDAQ: BSFT), a leading global provider of hosted cloud-based enterprise communications software and services to the telecommunications industry, today announced financial results for the quarter ended June 30, 2016.

Financial Highlights for the Second Quarter of 2016

  • Total revenue increased 27% year-over-year to $81.7 million
  • GAAP gross profit equaled 72% of total revenue; non-GAAP gross profit equaled 77% of total revenue
  • GAAP income from operations totaled $0.6 million; non-GAAP income from operations totaled $15.9 million or 19% of revenue
  • GAAP basic and diluted net loss per share equaled $(0.10) per common share; non-GAAP diluted earnings per share equaled $0.49 per common share

Results for the three months ended June 30, 2016

Total revenue rose to $81.7 million in the second quarter of 2016, an increase of 27% compared to $64.5 million in the second quarter of 2015.

Net loss for the second quarter of 2016 was $(2.9) million, or $(0.10) per basic and diluted common share, compared to net loss of $(5.3) million, or $(0.18) per basic and diluted common share in the second quarter of 2015.

On a non-GAAP basis, net income in the second quarter of 2016 was $15.0 million, or $0.49 per diluted common share, compared to non-GAAP net income of $9.7 million, or $0.32 per diluted common share, in the second quarter of 2015. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.

Results for the six months ended June 30, 2016

Total revenue rose to $154.9 million for the first six months of 2016, an increase of 29% compared to $120.2 million for the first six months of 2015.

Net loss for the first six months of 2016 was $(4.4) million, or $(0.15) per basic and diluted common share, compared to a net loss of $(8.2) million, or $(0.28) per basic and diluted common share for the first six months of 2015.

On a non-GAAP basis, net income for the first six months of 2016 was $26.0 million, or $0.87 per diluted common share, compared to non-GAAP net income of $17.0 million, or $0.57 per diluted common share, for the first six months of 2015. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.

Management Commentary

"In the second quarter, we delivered strong results as we achieved robust double-digit revenue growth," said Michael Tessler, president and chief executive officer, BroadSoft. "We see more and more service provider customers around the world launching and promoting truly converged fixed and mobile unified communications services based on BroadSoft solutions. This is a great validation of our products and vision. We will continue to innovate to remain the industry leader as the business communications market continues to evolve."

Guidance

For the third quarter of 2016, BroadSoft anticipates revenue of $78 to $83 million. The company also expects to achieve earnings on a non-GAAP basis of $0.26 to $0.41 per diluted common share. For the full year 2016, BroadSoft expects revenue in the range of $332 million to $340 million and non-GAAP EPS in the range of $1.95 to $2.15.

A reconciliation of non-GAAP earnings per share guidance, as well as projected non-GAAP cost of sales and operating expenses to be discussed on this morning's teleconference, to the closest corresponding GAAP measures, is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of non-cash income taxes and stock-based compensation expense. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Conference Call

BroadSoft will discuss its second quarter 2016 results and its business outlook today via teleconference at 8:30 a.m. Eastern Time. To participate in the teleconference, callers can dial the toll free number 1-877-312-5517 (U.S. callers only) or 1-760-666-3772 (from outside the U.S.). The conference call can also be heard live via audio webcast at http://investors.broadsoft.com/events.cfm. To help ensure the conference begins on time, please dial in or connect via the web five minutes prior to the scheduled start time.

For those unable to participate in the live call, a recording will be available shortly after the conclusion of the call at http://investors.broadsoft.com/events.cfm and will remain available until immediately prior to our next earnings call.

Non-GAAP financial measures:

BroadSoft has provided in this release, and will provide on this morning's teleconference, financial information that has not been prepared in accordance with generally accepted accounting principles, or GAAP. BroadSoft uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating BroadSoft's ongoing operational performance. BroadSoft's management regularly uses these non-GAAP financial measures to understand and manage its business and believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance by excluding certain non-cash expenses, and may include additional adjustments for items that are infrequent in nature. BroadSoft believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in BroadSoft's industry, many of which present similar non-GAAP financial measures to investors. A reconciliation of the non-GAAP financial measures included in this release and to be discussed on this morning's teleconference to the most directly comparable GAAP financial measures is set forth below.

Non-GAAP cost of revenue, license software cost of revenue, subscription and maintenance cost of revenue and professional services and other cost of revenue. We define non-GAAP cost of revenue as a cost of revenue less stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP cost of revenue to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and investors can compare our cost of revenue over multiple periods.

Non-GAAP gross profit, license software gross profit, subscription and maintenance support gross profit and professional services and other gross profit. We define non-GAAP gross profit as gross profit plus stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP gross profit to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and investors can compare our sales margins over multiple periods.

Non-GAAP income from operations. We define non-GAAP operating income as income from operations plus stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP operating income to be a useful metric for management and investors because it excludes the effect of certain non-cash expenses so management and investors can compare our core business operating results over multiple periods.

Non-GAAP operating expenses, sales and marketing expense, research and development expense and general and administrative expense. We define non-GAAP operating expenses as operating expense plus stock-based compensation expense allocated to sales and marketing, research and development and general and administrative expenses. Similarly, we define non-GAAP sales and marketing, research and development and general and administrative expenses as the relevant GAAP measure plus stock-based compensation expense allocated to the particular expense item.

Non-GAAP net income and net income per share. We define non-GAAP net income as net income plus stock-based compensation expense, amortization expense for acquired intangible assets, non-cash interest expense on our convertible senior notes, foreign currency transaction gains and losses, loss on repurchase of our convertible senior notes and non-cash tax expense included in the GAAP tax provision. We define non-GAAP income per share as non-GAAP net income divided by the weighted average shares outstanding.

The presentation of non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP income from operations, and other non-GAAP financial measures in this release and on this morning's teleconference is not meant to be a substitute for "net income," "net income per share," "gross margin," "income from operations" or other financial measures presented in accordance with GAAP, but rather should be evaluated in conjunction with such data. BroadSoft's definition of "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations" and other non-GAAP financial measures may differ from similarly titled non-GAAP measures used by other companies and may differ from period to period. In reporting non-GAAP measures in the future, management may make other adjustments for expenses and gains it does not consider reflective of core operating performance in a particular period and may modify "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations" and such other non-GAAP measures by excluding these expenses and gains.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "anticipate," "expect," "will," "believe," "continue" and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company's future financial performance set forth under the heading "Guidance." The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: the Company's ability to expand its BroadCloud offering geographically and increase the associated recurring service revenue; the Company's dependence on the success of BroadWorks and on its service provider customers to sell services using its applications; the Company's dependence in large part on service providers' continued deployment of, and investment in, their IP-based networks; claims that the Company infringes the intellectual property rights of others; the Company's ability to integrate and achieve the expected benefits from its recent acquisitions; and the Company's ability to expand its product offerings, as well as those factors contained in the "Risk Factors" sections of the Company's Form 10-K for the year ended December 31, 2015 filed with the SEC on February 29, 2016, and in the Company's other filings with the SEC. All information in this release is as of August 1, 2016. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in the Company's expectations.

About BroadSoft

BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services.

Financial Statements

The financial statements set forth below are not the complete set of the Company's financial statements for the quarter and the year and are presented below without footnotes. Readers are encouraged to obtain and carefully review BroadSoft's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, including all financial statements contained therein and the footnotes thereto, once the report is filed with the SEC. Once filed with the SEC, the Form 10-Q may be retrieved from the SEC's website at www.sec.gov or from BroadSoft's website at www.broadsoft.com.


                              BroadSoft, Inc.
                        CONSOLIDATED BALANCE SHEETS
              (in thousands, except share and per share data)

                                                   June 30,    December 31,
                                                     2016          2015
                                                 ------------  ------------
                                                  (Unaudited)
Assets:
Current assets:
  Cash and cash equivalents                      $    138,520  $    175,857
  Short-term investments                              125,592        72,531
  Accounts receivable, net of allowance for
   doubtful accounts of $65 and $85 at June 30,
   2016 and December 31, 2015, respectively           105,775       108,113
  Other current assets                                 14,388        13,155
                                                 ------------  ------------
    Total current assets                              384,275       369,656
                                                 ------------  ------------
Long-term assets:
  Property and equipment, net                          20,483        19,481
  Long-term investments                                92,866       102,385
  Intangible assets, net                               23,567        18,835
  Goodwill                                             80,020        72,275
  Deferred tax assets                                   8,572         1,661
  Other long-term assets                                6,771         8,081
                                                 ------------  ------------
    Total long-term assets                            232,279       222,718
                                                 ------------  ------------
      Total assets                               $    616,554  $    592,374
                                                 ============  ============
Liabilities and stockholders' equity:
Current liabilities:
    Accounts payable and accrued expenses        $     31,177  $     28,667
    Deferred revenue, current portion                 100,712       106,483
                                                 ------------  ------------
        Total current liabilities                     131,889       135,150
                                                 ------------  ------------
    Convertible senior notes                          194,562       188,331
    Deferred revenue                                    6,593         4,571
    Other long-term liabilities                         6,070         7,289
                                                 ------------  ------------
        Total liabilities                             339,114       335,341
                                                 ------------  ------------
Commitments and contingencies
Stockholders' equity:
    Preferred stock, $0.01 par value per share;
     5,000,000 shares authorized at June 30, 2016
     and December 31, 2015; no shares issued and
     outstanding at June 30, 2016 and December
     31, 2015                                              --            --
    Common stock, par value $0.01 per share;
     100,000,000 shares authorized at June 30,
     2016 and December 31, 2015; 29,736,368 and
     29,080,197 shares issued and outstanding at
     June 30, 2016 and December 31, 2015,
     respectively.                                        297           291
    Additional paid-in capital                        359,063       333,153
    Accumulated other comprehensive loss              (16,200)      (13,810)
    Accumulated deficit                               (65,720)      (62,601)
                                                 ------------  ------------
Total stockholders' equity                            277,440       257,033
                                                 ------------  ------------
Total liabilities and stockholders' equity       $    616,554  $    592,374
                                                 ============  ============



                              BroadSoft, Inc.
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                   (in thousands, except per share data)

                               Three Months Ended       Six Months Ended
                                     June 30,                June 30,
                             ----------------------  ----------------------
                                2016        2015        2016        2015
                             ----------  ----------  ----------  ----------
                                   (Unaudited)             (Unaudited)
Revenue:
  License software           $   33,597  $   30,091  $   64,506  $   53,027
  Subscription and
   maintenance support           36,800      27,026      69,839      52,435
  Professional services and
   other                         11,324       7,367      20,512      14,693
                             ----------  ----------  ----------  ----------
    Total revenue                81,721      64,484     154,857     120,155
Cost of revenue:
  License software                2,169       2,869       3,898       5,540
  Subscription and
   maintenance support           11,456      10,227      22,166      19,171
  Professional services and
   other                          8,921       7,125      17,280      11,520
                             ----------  ----------  ----------  ----------
    Total cost of revenue        22,546      20,221      43,344      36,231
                             ----------  ----------  ----------  ----------
Gross profit                     59,175      44,263     111,513      83,924
Operating expenses:
  Sales and marketing            25,951      21,567      49,274      39,114
  Research and development       20,068      16,266      38,189      30,550
  General and administrative     12,603      11,306      23,916      20,411
                             ----------  ----------  ----------  ----------
    Total operating expenses     58,622      49,139     111,379      90,075
                             ----------  ----------  ----------  ----------
Income (loss) from operations       553      (4,876)        134      (6,151)
Other expense:
  Interest expense                3,926       2,027       7,779       4,016
  Interest income                  (664)       (282)     (1,267)       (496)
  Other, net                        185        (484)       (326)      1,223
                             ----------  ----------  ----------  ----------
    Total other expense, net      3,447       1,261       6,186       4,743
                             ----------  ----------  ----------  ----------
Loss before income taxes         (2,894)     (6,137)     (6,052)    (10,894)
  Provision for (benefit
   from) income taxes                 1        (849)     (1,648)     (2,701)
                             ----------  ----------  ----------  ----------
Net loss                     $   (2,895) $   (5,288) $   (4,404) $   (8,193)
                             ==========  ==========  ==========  ==========
Net loss per common share:
  Basic and diluted          $    (0.10) $    (0.18) $    (0.15) $    (0.28)
Weighted average common
 shares outstanding:
  Basic and diluted              29,449      29,230      29,295      29,111
Stock-based compensation
 expense included above:
  Cost of revenue            $    2,171  $    2,347  $    3,893  $    3,386
  Sales and marketing             4,792       4,818       8,348       7,236
  Research and development        4,020       4,067       7,165       6,505
  General and administrative      2,629       2,562       4,880       4,103



                              BroadSoft, Inc.
                 SUMMARY OF CONSOLIDATED CASH FLOW ACTIVITY
                                (Unaudited)

                                                        Six Months Ended
                                                             June 30,
                                                     ----------------------
                                                        2016        2015
                                                     ----------  ----------
                                                         (in thousands)
Cash provided by (used in):
  Operating activities                               $   32,689  $   13,665
  Investing activities                                  (72,802)    (33,822)
  Financing activities                                    3,230      (1,889)



                               BroadSoft, Inc.
           BILLINGS (REVENUE PLUS NET CHANGE IN DEFERRED REVENUE)
                                 (Unaudited)

                                  Three Months Ended     Six Months Ended
                                       June 30,               June 30,
                                --------------------- ----------------------
                                   2016       2015       2016        2015
                                ---------- ---------- ----------  ----------
                                               (in thousands)
Beginning of period deferred
 revenue balance                $  102,725 $  101,367 $  111,054  $  101,456
End of period deferred revenue
 balance                           107,305    107,726    107,305     107,726
                                ---------- ---------- ----------  ----------
  Increase (decrease) in
   deferred revenue                  4,580      6,359     (3,749)      6,270
Revenue                             81,721     64,484    154,857     120,155
                                ---------- ---------- ----------  ----------
  Revenue plus net change in
   deferred revenue             $   86,301 $   70,843    151,108     126,425
                                ========== ========== ==========  ==========



                               BroadSoft, Inc.
                          LICENSE SOFTWARE BILLINGS
                                 (Unaudited)

                                 Three Months Ended      Six Months Ended
                                       June 30,               June 30,
                               ---------------------- ----------------------
                                  2016        2015       2016        2015
                               ----------  ---------- ----------  ----------
                                               (in thousands)
Beginning of period deferred
 license software revenue
 balance                       $   27,853  $   30,771 $   33,200  $   26,495
End of period deferred license
 software revenue balance          26,798      32,582     26,798      32,582
                               ----------  ---------- ----------  ----------
  Increase (decrease) in
   deferred license software
   revenue                         (1,055)      1,811     (6,402)      6,087
License software revenue           33,597      30,091     64,506      53,027
  License software revenue plus
   net change in deferred
   license software revenue    $   32,542  $   31,902 $   58,104  $   59,114
                               ==========  ========== ==========  ==========



                               BroadSoft, Inc.
                SUBSCRIPTION AND MAINTENANCE SUPPORT BILLINGS
                                 (Unaudited)

                                 Three Months Ended      Six Months Ended
                                      June 30,                June 30,
                               ---------------------  ----------------------
                                  2016       2015        2016        2015
                               ---------- ----------  ----------  ----------
                                               (in thousands)
Beginning of period deferred
 subscription and maintenance
 support revenue balance       $   57,464 $   51,204  $   61,399  $   52,764
End of period deferred
 subscription and maintenance
 support revenue balance           60,381     53,951      60,381      53,951
                               ---------- ----------  ----------  ----------
  Increase (decrease) in
   deferred subscription and
   maintenance support revenue      2,917      2,747      (1,018)      1,187
Subscription and maintenance
 support revenue                   36,800     27,026      69,839      52,435
  Subscription and maintenance
   support revenue plus net
   change in deferred
   subscription and maintenance
   support revenue             $   39,717 $   29,773  $   68,821  $   53,622
                               ========== ==========  ==========  ==========



                              BroadSoft, Inc.
                  PROFESSIONAL SERVICES AND OTHER BILLINGS
                                (Unaudited)

                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                --------------------- ---------------------
                                   2016       2015       2016       2015
                                ---------- ---------- ---------- ----------
                                               (in thousands)
Beginning of period deferred
 professional services and other
 revenue balance                $   17,408 $   19,392 $   16,455 $   22,197
End of period deferred
 professional services and other
 revenue balance                    20,126     21,193     20,126     21,193
                                ---------- ---------- ---------- ----------
  Increase (decrease) in
   deferred professional
   services and other revenue        2,718      1,801      3,671     (1,004)
Professional services and other
 revenue                            11,324      7,367     20,512     14,693
  Professional services and
   other revenue plus net change
   in deferred professional
   services and other revenue   $   14,042 $    9,168 $   24,183 $   13,689
                                ========== ========== ========== ==========



                              BroadSoft, Inc.
               RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                (Unaudited)

                               Three Months Ended       Six Months Ended
                                    June 30,                June 30,
                             ---------------------   ---------------------
                                2016        2015        2016        2015
                             ---------   ---------   ---------   ---------
                                             (in thousands)
Non-GAAP cost of revenue:
GAAP license cost of revenue $   2,169   $   2,869   $   3,898   $   5,540
  (percent of related
   revenue)                          6%         10%          6%         10%
Less:
  Stock-based compensation
   expense                         168         374         326         537
  Amortization of acquired
   intangible assets               335         419         669         868
                             ---------   ---------   ---------   ---------
Non-GAAP license cost of
 revenue                     $   1,666   $   2,076   $   2,903   $   4,135
                             =========   =========   =========   =========
  (percent of related
   revenue)                          5%          7%          5%          8%


GAAP subscription and
 maintenance support cost of
 revenue                     $  11,456   $  10,227   $  22,166   $  19,171
  (percent of related
   revenue)                         31%         38%         32%         37%
Less:
  Stock-based compensation
   expense                         833       1,114       1,486       1,721
  Amortization of acquired
   intangible assets             1,183       1,056       2,235       2,111
                             ---------   ---------   ---------   ---------
Non-GAAP subscription and
 maintenance support cost of
 revenue                     $   9,440   $   8,057   $  18,445   $  15,339
                             =========   =========   =========   =========
  (percent of related
   revenue)                         26%         30%         26%         29%


GAAP professional services
 and other cost of revenue   $   8,921   $   7,125   $  17,280   $  11,520
  (percent of related
   revenue)                         79%         97%         84%         78%
Less:
  Stock-based compensation
   expense                       1,170         859       2,081       1,128
    Amortization of acquired
     intangible assets       $     175   $      58   $     350   $      58
                             ---------   ---------   ---------   ---------
Non-GAAP professional
 services and other cost of
 revenue                     $   7,576   $   6,208   $  14,849   $  10,334
                             =========   =========   =========   =========
  (percent of related
   revenue)                         67%         84%         72%         70%

                               Three Months Ended       Six Months Ended
                                    June 30,                June 30,
                             ---------------------   ---------------------
                                2016        2015        2016        2015
                             ---------   ---------   ---------   ---------
                                             (in thousands)
Non-GAAP gross profit:
GAAP gross profit            $  59,175   $  44,263   $ 111,513   $  83,924
  (percent of total revenue)        72%         69%         72%         70%
Plus:
  Stock-based compensation
   expense                       2,171       2,347       3,893       3,386
  Amortization of acquired
   intangible assets             1,693       1,533       3,254       3,037
                             ---------   ---------   ---------   ---------
Non-GAAP gross profit        $  63,039   $  48,143   $ 118,660   $  90,347
                             =========   =========   =========   =========
  (percent of total revenue)        77%         75%         77%         75%


GAAP license gross profit    $  31,428   $  27,222   $  60,608   $  47,487
  (percent of related
   revenue)                         94%         90%         94%         90%
Plus:
  Stock-based compensation
   expense                         168         374         326         537
  Amortization of acquired
   intangible assets               335         419         669         868
                             ---------   ---------   ---------   ---------
Non-GAAP license gross profit$  31,931   $  28,015   $  61,603   $  48,892
                             =========   =========   =========   =========
  (percent of related
   revenue)                         95%         93%         95%         92%


GAAP subscription and
 maintenance support gross
 profit                      $  25,344   $  16,799   $  47,673   $  33,264
  (percent of related
   revenue)                         69%         62%         68%         63%
Plus:
  Stock-based compensation
   expense                         833       1,114       1,486       1,721
  Amortization of acquired
   intangible assets             1,183       1,056       2,235       2,111
                             ---------   ---------   ---------   ---------
Non-GAAP subscription and
 maintenance support gross
 profit                      $  27,360   $  18,969   $  51,394   $  37,096
                             =========   =========   =========   =========
  (percent of related
   revenue)                         74%         70%         74%         71%


GAAP professional services
 and other gross profit      $   2,403   $     242   $   3,232   $   3,173
  (percent of related
   revenue)                         21%          3%         16%         22%
Plus:
  Stock-based compensation
   expense                       1,170         859       2,081       1,128
    Amortization of acquired
     intangible assets       $     175   $      58   $     350   $      58
                             ---------   ---------   ---------   ---------
Non-GAAP professional
 services and other gross
 profit                      $   3,748   $   1,159   $   5,663   $   4,359
                             =========   =========   =========   =========
  (percent of related
   revenue)                         33%         16%         28%         30%

                               Three Months Ended       Six Months Ended
                                    June 30,                June 30,
                             ---------------------   ---------------------
                                2016        2015        2016        2015
                             ---------   ---------   ---------   ---------
                                             (in thousands)
Non-GAAP income from
 operations:
GAAP loss from operations    $     553   $  (4,876)  $     134   $  (6,151)
  (percent of total revenue)         1%         (8)%        --%         (5)%
Plus:
  Stock-based compensation
   expense                      13,612      13,794      24,286      21,230
  Amortization of acquired
   intangible assets             1,693       1,533       3,254       3,037
                             ---------   ---------   ---------   ---------
Non-GAAP income from
 operations                  $  15,858   $  10,451   $  27,674   $  18,116
                             =========   =========   =========   =========
  (percent of total revenue)        19%         16%         18%         15%


GAAP operating expense       $  58,622   $  49,139   $ 111,379   $  90,075
  (percent of total revenue)        72%         76%         72%         75%
Less:
  Stock-based compensation
   expense                      11,441      11,447      20,393      17,844
                             ---------   ---------   ---------   ---------
Non-GAAP operating expense   $  47,181   $  37,692   $  90,986   $  72,231
                             =========   =========   =========   =========
  (percent of total revenue)        58%         58%         59%         60%


GAAP sales and marketing
 expense                     $  25,951   $  21,567   $  49,274   $  39,114
  (percent of total revenue)        32%         33%         32%         33%
Less:
  Stock-based compensation
   expense                       4,792       4,818       8,348       7,236
                             ---------   ---------   ---------   ---------
Non-GAAP sales and marketing
 expense                     $  21,159   $  16,749   $  40,926   $  31,878
                             =========   =========   =========   =========
  (percent of total revenue)        26%         26%         26%         27%


GAAP research and development
 expense                     $  20,068   $  16,266   $  38,189   $  30,550
  (percent of total revenue)        25%         25%         25%         25%
Less:
  Stock-based compensation
   expense                       4,020       4,067       7,165       6,505
                             ---------   ---------   ---------   ---------
Non-GAAP research and
 development expense         $  16,048   $  12,199   $  31,024   $  24,045
                             =========   =========   =========   =========
  (percent of total revenue)        20%         19%         20%         20%


GAAP general and
 administrative expense      $  12,603   $  11,306   $  23,916   $  20,411
  (percent of total revenue)        15%         18%         15%         17%
Less:
  Stock-based compensation
   expense                       2,629       2,562       4,880       4,103
                             ---------   ---------   ---------   ---------
Non-GAAP general and
 administrative expense      $   9,974   $   8,744   $  19,036   $  16,308
                             =========   =========   =========   =========
  (percent of total revenue)        12%         14%         12%         14%

                               Three Months Ended       Six Months Ended
                                    June 30,                June 30,
                             ---------------------   ---------------------
                                2016        2015        2016        2015
                             ---------   ---------   ---------   ---------
                                 (in thousands, except per share data)
Non-GAAP net income and
 income per share:
GAAP net loss                $  (2,895)  $  (5,288)  $  (4,404)  $  (8,193)
  (percent of total revenue)        (4)%        (8)%        (3)%        (7)%
Adjusted for:
  Stock-based compensation
   expense                      13,612      13,794      24,286      21,230
  Amortization of acquired
   intangible assets             1,693       1,533       3,254       3,037
  Non-cash interest expense
   on our convertible senior
   notes                         3,144       1,576       6,231       3,116
  Foreign currency
   transaction losses (gains)      185        (484)       (326)      1,223
  Non-cash tax benefit            (786)     (1,406)     (3,018)     (3,409)
                             ---------   ---------   ---------   ---------
Non-GAAP net income          $  14,953   $   9,725   $  26,023   $  17,004
                             =========   =========   =========   =========
  (percent of total revenue)        18%         15%         17%         14%


GAAP net loss per basic
 common share                $   (0.10)  $   (0.18)  $   (0.15)  $   (0.28)
Adjusted for:
  Stock-based compensation
   expense                        0.46        0.47        0.83        0.73
  Amortization of acquired
   intangible assets              0.06        0.05        0.11        0.10
  Non-cash interest expense
   on our convertible senior
   notes                          0.11        0.05        0.21        0.11
  Foreign currency
   transaction losses (gains)     0.01       (0.02)      (0.01)       0.04
  Non-cash tax benefit           (0.03)      (0.05)      (0.10)      (0.12)
                             ---------   ---------   ---------   ---------
Non-GAAP net income per basic
 common share                $    0.51   $    0.33   $    0.89   $    0.58
                             =========   =========   =========   =========


GAAP net loss per diluted
 common share                $   (0.10)  $   (0.18)  $   (0.15)  $   (0.28)
Adjusted for:
  Stock-based compensation
   expense                        0.44        0.46        0.81        0.71
  Amortization of acquired
   intangible assets              0.06        0.05        0.11        0.10
  Non-cash interest expense
   on our convertible senior
   notes                          0.10        0.05        0.21        0.10
  Foreign currency
   transaction losses (gains)     0.01       (0.02)      (0.01)       0.04
  Non-cash tax benefit           (0.03)      (0.05)      (0.10)      (0.11)
                             ---------   ---------   ---------   ---------
Non-GAAP net income per
 diluted common share        $    0.49   $    0.32   $    0.87   $    0.57
                             =========   =========   =========   =========

* For the three and six months ended June 30, 2016 and 2015, the non-GAAP net income per diluted common share calculation included the dilutive effect of stock-based awards and for the three and six months ended June 30, 2016, the non-GAAP net income per diluted common share calculation included the effect of the premium feature of the 1.00% convertible senior notes due in 2022 (which, in each case, were not reflected in the corresponding GAAP diluted share calculations, as their effect would have been anti-dilutive as a result of the net losses for these periods). Total diluted weighted average common shares outstanding used for calculating non-GAAP net income per diluted common share were 30,629 thousand and 29,930 thousand for the three months ended June 30, 2016 and 2015 and 30,044 thousand and 29,741 thousand for the six months ended June 30, 2016 and 2015, respectively.

BSFT-F

Contact Information

For further information contact:

Investor Relations:
Chris Martin
+1-561-404-2130
cmartin@broadsoft.com

Media Contacts:
Brian Lustig
Bluetext PR for BroadSoft North America
+1 301.775.6203
brian@bluetext.com

Andy Crisp / Jon Bawden / Kate Anderson
Cohesive for BroadSoft UK
+44 (0) 1291 626200
broadsoft@wearecohesive.com

Terry Alberstein
Navigate Communication
+61 (0) 458-484-921
terry@navigatecommunication.com.au


Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.