2019 Third Quarter Software Product Revenue Increased 21% year-over-year

TROY, Mich., Nov. 07, 2019 (GLOBE NEWSWIRE) -- Altair (Nasdaq:ALTR), a global technology company providing solutions in product development, high-performance computing and data intelligence, today released its financial results for the third quarter ended September 30, 2019.

“Software product revenue grew over 21% from a year ago, as we continued to execute on our vision to provide truly differentiated simulation, data analytics and high-performance cloud computing solutions that enable our customers to compete more effectively in a connected world,” said James Scapa, Founder, Chairman and Chief Executive Officer of Altair.  “Our core simulation and optimization technologies performed well during the quarter and we are highly encouraged by strong demand for our SimSolid product, which has had one of the fastest new product ramps in our history. We are also pleased to see continued strong recurring software subscription revenues.  While we are seeing some macro headwinds in our automotive market and continue to be impacted by foreign exchange challenges, our diversification across multiple verticals and products provides us with optimism that our momentum will continue into 2020 and beyond.”

Third Quarter 2019 Financial Highlights

• Software product revenue was $77.8 million, an increase of 21% from $64.2 million for the third quarter of 2018 highlighted by 29% growth in the Americas region.
• Non-GAAP software product revenue was $80.1 million, an increase of 25% from $64.2 million for the third quarter of 2018. 
• Total revenue was $100.4 million, an increase of 16% from $86.8 million for the third quarter of 2018.
• Non-GAAP total revenue was $102.7 million, an increase of 18% from $86.8 million for the third quarter of 2018. 
• Net loss was $(15.9) million, compared to net income of $0.9 million for the third quarter of 2018. Diluted net loss per share was $(0.22) based on 71.8 million diluted weighted average common shares outstanding, compared to diluted net income per share of $0.01 for the third quarter of 2018, based on 76.7 million diluted weighted average common shares outstanding.
• Adjusted EBITDA was $(2.3) million, compared to $2.4 million for the third quarter of 2018. 
• Modified Adjusted EBITDA was $(0.1) million, compared to $2.4 million for the third quarter of 2018. 
• Non-GAAP net loss was $(7.2) million, compared to $(1.4) million for the third quarter of 2018. Non-GAAP diluted net loss per share was $(0.09) based on 77.8 million non-GAAP diluted common shares outstanding, compared to non-GAAP diluted net loss per share of $(0.02) for the third quarter of 2018, based on 77.0 million non-GAAP diluted common shares outstanding.
• Free cash flow, which consists of cash flow from operations less capital expenditures, was $(3.3) million, compared to $0.9 million for the third quarter of 2018.

Business Outlook
Based on information available as of today, Altair is issuing revised and reduced guidance for the fourth quarter and full year 2019. 

		(Unaudited)
(in millions)		Fourth Quarter 2019							Full Year 2019
Software Product Revenue		$	83.5		to	$	87.5		$	349.0		to	$	353.0
Non-GAAP Software Product Revenue		$	85.8			$	89.8		$	358.0			$	362.0
Total Revenue		$	105.0			$	109.0		$	440.0			$	444.0
Non-GAAP Total Revenue		$	107.3			$	111.3		$	449.0			$	453.0
Net (Loss)		$	(5.4)			$	(3.4)		$	(11.4)			$	(9.4)
Non-GAAP Net Income		$	2.2			$	4.2		$	20.1			$	22.1
Adjusted EBITDA		$	7.3			$	9.3		$	34.0			$	36.0
Modified Adjusted EBITDA		$	9.5			$	11.5		$	43.0			$	45.0

(All figures in millions)

Conference Call Information

What:	Altair’s Third Quarter 2019 Financial Results Conference Call
When:	Thursday, November 7, 2019
Time:	5:00 p.m. ET
Live Call:	(866) 754-5204, Domestic (636) 812-6621, International
Replay:	(855) 859-2056, Conference ID 8382596, Domestic (404) 537-3406, Conference ID 8382596, International
Webcast:	http://investor.altair.com  (live & replay)

Non-GAAP Financial Measures
This press release contains the following non-GAAP financial measures: Non-GAAP Software Product Revenue, Non-GAAP Total Revenue, Adjusted EBITDA, Modified Adjusted EBITDA, Non-GAAP Net Income, Non-GAAP Net Income Per Share and Free Cash Flow.

Altair believes that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. The Company’s management uses these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis, for purposes of determining executive and senior management incentive compensation and for budgeting and planning purposes. The Company also believes that 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 the Company’s financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP software product revenue and Non-GAAP total revenue include revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

Adjusted EBITDA represents net income adjusted for income tax expense, interest expense, interest income and other, depreciation and amortization, stock-based compensation expense, restructuring charges, asset impairment charges and other special items as identified by management and described elsewhere in this press release.

Modified Adjusted EBITDA represents Adjusted EBITDA adjusted for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

Non-GAAP net income excludes stock-based compensation, amortization of intangible assets related to acquisitions, revenue not recognized under GAAP due to acquisition accounting and special items as identified by management and described elsewhere in this press release.

Non-GAAP diluted common shares includes total outstanding shares plus outstanding equity awards under the Altair equity award plans.

Company management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Altair urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate the Company’s business.

Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release.

About Altair
Altair is a global technology company that provides software and cloud solutions in the areas of product design and development, high-performance computing (HPC) and data intelligence. Altair enables organizations across broad industry segments to compete more effectively in a connected world while creating a more sustainable future. To learn more, please visit www.altair.com.

Cautionary Language Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the fourth quarter and full year 2019, statements regarding other future periods and our reconciliations of projected non-GAAP financial measures.  These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Altair’s control. Altair’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in Altair’s quarterly and annual reports filed with the Securities and Exchange Commission as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Altair’s views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Altair undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Altair’s views as of any date subsequent to the date of this press release.

Investor and Media Relations
Dave Simon
Altair
248-614-2400 ext. 332
ir@altair.com

ALTAIR ENGINERING INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

		September 30, 2019				December 31, 2018
(In thousands)		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	246,937			$	35,345
Accounts receivable, net			84,062				96,803
Income tax receivable			11,551				4,431
Prepaid expenses and other current assets			18,398				17,455
Total current assets			360,948				154,034
Property and equipment, net			33,720				30,153
Operating lease right of use assets			26,507				—
Goodwill			210,500				210,532
Other intangible assets, net			60,956				69,836
Deferred tax assets			5,870				5,354
Other long-term assets			18,199				17,288
TOTAL ASSETS		$	716,700			$	487,197
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt		$	437			$	331
Accounts payable			8,286				8,357
Accrued compensation and benefits			28,839				31,740
Current portion of operating lease liabilities			8,891				—
Other accrued expenses and current liabilities			27,426				27,039
Deferred revenue			69,377				59,765
Total current liabilities			143,256				127,232
Long-term debt, net of current portion			175,624				31,417
Operating lease liabilities, net of current portion			18,831				—
Deferred revenue, non-current			7,666				6,754
Other long-term liabilities			25,630				25,756
TOTAL LIABILITIES			371,007				191,159
Commitments and contingencies
MEZZANINE EQUITY			2,352				2,352
STOCKHOLDERS’ EQUITY:
Preferred stock ($0.0001 par value), authorized 45,000 shares, none issued and outstanding			—				—
Common stock ($0.0001 par value)
Class A common stock, authorized 513,797 shares, issued and outstanding 40,354   and 38,349 shares as of September 30, 2019 and December 31, 2018, respectively			4				4
Class B common stock, authorized 41,203 shares, issued and outstanding 31,391   and 32,171 shares as of September 30, 2019 and December 31, 2018, respectively			3				3
Additional paid-in capital			436,197				379,832
Accumulated deficit			(80,903	)			(74,863	)
Accumulated other comprehensive loss			(11,960	)			(11,290	)
TOTAL STOCKHOLDERS’ EQUITY			343,341				293,686
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY		$	716,700			$	487,197

ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except per share data)		2019				2018				2019				2018
Revenue
License		$	46,853			$	40,880			$	180,127			$	154,515
Maintenance and other services			30,963				23,302				85,388				69,943
Total software			77,816				64,182				265,515				224,458
Software related services			7,956				8,692				25,635				26,872
Total software and related services			85,772				72,874				291,150				251,330
Client engineering services			12,803				12,155				37,265				36,652
Other			1,831				1,722				6,623				5,386
Total revenue			100,406				86,751				335,038				293,368
Cost of revenue
License			4,371				2,736				13,146				10,534
Maintenance and other services			9,548				7,095				27,509				22,202
Total software *			13,919				9,831				40,655				32,736
Software related services			6,013				6,352				19,143				19,573
Total software and related services			19,932				16,183				59,798				52,309
Client engineering services			10,160				9,817				29,993				29,977
Other			1,649				1,204				5,858				3,416
Total cost of revenue			31,741				27,204				95,649				85,702
Gross profit			68,665				59,547				239,389				207,666
Operating expenses:
Research and development *			29,667				24,301				87,012				71,748
Sales and marketing *			25,790				19,243				78,462				57,849
General and administrative *			20,706				17,234				60,886				51,636
Amortization of intangible assets			3,545				1,739				10,673				5,665
Other operating income			(536	)			(4,850	)			(1,702	)			(7,433	)
Total operating expenses			79,172				57,667				235,331				179,465
Operating (loss) income			(10,507	)			1,880				4,058				28,201
Interest expense			2,726				31				3,586				92
Other income, net			(588	)			(970	)			(703	)			(2,046	)
(Loss) income before income taxes			(12,645	)			2,819				1,175				30,155
Income tax expense			3,294				1,885				7,215				5,617
Net (loss) income		$	(15,939	)		$	934			$	(6,040	)		$	24,538
Income per share:
Net (loss) income per share attributable to common   stockholders, basic		$	(0.22	)		$	0.01			$	(0.08	)		$	0.37
Net (loss) income per share attributable to common   stockholders, diluted		$	(0.22	)		$	0.01			$	(0.08	)		$	0.33
Weighted average shares outstanding:
Weighted average number of shares used in computing   net (loss) income per share, basic			71,770				70,001				71,313				66,429
Weighted average number of shares used in computing   net (loss) income per share, diluted			71,770				76,709				71,313				74,182

_________________
*          Amounts include stock-based compensation expense as follows (in thousands) (unaudited):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2019				2018				2019				2018
Cost of revenue – software		$	384			$	8			$	727			$	24
Research and development			674				175				1,611				330
Sales and marketing			625				140				1,562				315
General and administrative			609				240				1,684				544
Total stock-based compensation expense		$	2,292			$	563			$	5,584			$	1,213

ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)

		Nine Months Ended September 30,
(In thousands)		2019				2018
OPERATING ACTIVITIES:
Net (loss) income		$	(6,040	)		$	24,538
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization			15,836				10,895
Provision for bad debt			472				455
Amortization of debt discount and issuance costs			3,044				18
Stock-based compensation expense			5,584				1,213
Gain on sale of assets held for sale and other			—				(4,544	)
Impairment of intangibles			—				608
Deferred income taxes			(741	)			706
Other, net			(16	)			(134	)
Changes in assets and liabilities:
Accounts receivable			10,185				15,674
Prepaid expenses and other current assets			(8,718	)			(6,821	)
Other long-term assets			(1,443	)			44
Accounts payable			(420	)			796
Accrued compensation and benefits			(2,111	)			2,650
Other accrued expenses and current liabilities			2,110				(4,781	)
Operating lease right-of-use assets and liabilities, net			188				—
Deferred revenue			12,075				(895	)
Net cash provided by operating activities			30,005				40,422
INVESTING ACTIVITIES:
Capital expenditures			(8,120	)			(5,333	)
Payments for acquisition of developed technology			(473	)			(2,738	)
Payments for acquisition of businesses, net of cash acquired			(709	)			(15,950	)
Proceeds from the sale of assets held for sale and other			—				6,613
Other investing activities, net			16				—
Net cash used in investing activities			(9,286	)			(17,408	)
FINANCING ACTIVITIES:
Proceeds from issuance of convertible senior notes, net of underwriters'   discount and commissions			223,101				—
Payments on revolving commitment			(127,941	)			—
Borrowings under revolving commitment			96,991				—
Proceeds from the exercise of stock options			1,441				1,929
Payments for issuance costs of convertible senior notes			(1,233	)			—
Payments for follow-on public offering and initial public offering costs			—				(541	)
Proceeds from issuance of Class A common stock in follow-on public offering,   net of underwriters' discounts and commissions			—				135,572
Other financing activities			(399	)			(446	)
Net cash provided by financing activities			191,960				136,514
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(1,065	)			(1,354	)
Net increase in cash, cash equivalents and restricted cash			211,614				158,174
Cash, cash equivalents and restricted cash at beginning of year			35,685				39,578
Cash, cash equivalents and restricted cash at end of period		$	247,299			$	197,752
Supplemental disclosure of cash flow:
Interest paid		$	385			$	70
Income taxes paid		$	7,163			$	5,900
Supplemental disclosure of non-cash investing and financing activities:
Finance leases		$	588			$	995
Property and equipment in accounts payable, other current liabilities   and other liabilities		$	1,827			$	228
Follow-on public offering costs in accounts payable		$	—			$	15
Promissory notes issued and deferred payment obligations for acquisitions		$	—			$	278

Financial Results

The following table provides a reconciliation of Non-GAAP net (loss) income and Non-GAAP net (loss) income per share - diluted to net (loss) income and net (loss) income per share – diluted, the most comparable GAAP financial measures:

		(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands, except per share amounts)		2019				2018				2019				2018
Net (loss) income		$	(15,939	)		$	934			$	(6,040	)		$	24,538
Stock-based compensation expense			2,292				563				5,584				1,213
Amortization of intangible assets			3,545				1,739				10,673				5,665
Acquisition related deferred revenue (1)			2,250				—				6,750				—
Special adjustments (2)			1,027				(4,177	)			2,031				(4,400	)
Income tax effect of non-GAAP adjustments			(368	)			(459	)			(1,103	)			(658	)
Non-GAAP net (loss) income		$	(7,193	)		$	(1,400	)		$	17,895			$	26,358
Net (loss) income per share - diluted		$	(0.22	)		$	0.01			$	(0.08	)		$	0.33
Non-GAAP net (loss) income per share - diluted		$	(0.09	)		$	(0.02	)		$	0.23			$	0.34
GAAP diluted shares outstanding:			71,770				76,709				71,313				74,182
Non-GAAP diluted shares outstanding:			77,800				77,000				77,800				77,000

(1)	Represents revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.
(2)	Includes a) nonrecurring severance expenses of $0.4 million and nonrecurring acquisition related costs of $0.6 million, for both the three and nine months ended September 30, 2019, and b) an impairment charge for royalty contracts resulting in $1.0 million of expenses for the nine months ended September 30, 2019.
	Includes a) a gain on the sale of a building of $4.4 million for the three and nine months ended September 30, 2018, b) an impairment charge for royalty contracts resulting in $0.2 million and $2.0 million for the three and nine months ended September 30, 2018, respectively and c) a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income for the nine months ended September 30, 2018.

The following table provides a reconciliation of Adjusted EBITDA and Modified Adjusted EBITDA to net (loss) income, the most comparable GAAP financial measure:

		(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2019				2018				2019				2018
Net (loss) income		$	(15,939	)		$	934			$	(6,040	)		$	24,538
Income tax expense			3,294				1,885				7,215				5,617
Stock-based compensation expense			2,292				563				5,584				1,213
Interest expense			2,726				31				3,586				92
Interest income and other (1)			(76	)			(4,384	)			633				(5,103	)
Depreciation and amortization			5,368				3,370				15,836				10,895
Adjusted EBITDA			(2,335	)			2,399				26,814				37,252
Acquisition related deferred revenue (2)			2,250				—				6,750				—
Modified Adjusted EBITDA		$	(85	)		$	2,399			$	33,564			$	37,252

(1)	Includes a) nonrecurring severance expenses of $0.4 million and nonrecurring acquisition related costs of $0.6 million, for both the three and nine months ended September 30, 2019, and b) impairment charges for royalty contracts resulting in $1.0 million of expense for the nine months ended September 30, 2019.
	Includes a) a gain on the sale of a building of $4.4 million for the three and nine months ended September 30, 2018, b) impairment charges for royalty contracts and trade names resulting in $0.8 million and $2.6 million of expense for the three and nine months ended September 30, 2018, respectively, and c) a non-recurring adjustment for a change in estimated legal expenses resulting in $2.0 million of income for the nine months ended September 30, 2018.
(2)	Represents revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

The following table provides a reconciliation of Non-GAAP total revenue to total revenue, the most comparable GAAP financial measure:

		(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2019				2018				2019				2018
Total revenue		$	100,406			$	86,751			$	335,038			$	293,368
Acquisition related deferred revenue (1)			2,250				—				6,750				—
Non-GAAP total revenue		$	102,656			$	86,751			$	341,788			$	293,368

(1)	Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

The following table provides a reconciliation of Non-GAAP total software product revenue to total software product revenue, the most comparable GAAP financial measure:

		(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2019				2018				2019				2018
Total software product revenue		$	77,816			$	64,182			$	265,515			$	224,458
Acquisition related deferred revenue(1)			2,250				—				6,750				—
Non-GAAP total software product revenue		$	80,066			$	64,182			$	272,265			$	224,458

(1)	Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

The following table provides a recompilation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP financial measure:

		(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(in thousands)		2019				2018				2019				2018
Net cash (used in) provided by operating activities		$	(1,863	)		$	3,109			$	30,005			$	40,422
Capital expenditures			(1,453	)			(2,203	)			(8,120	)			(5,333	)
Free cash flow		$	(3,316	)		$	906			$	21,885			$	35,089

Effective January 1, 2018, we adopted Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASC 606). The following table sets forth selected quarterly information under ASC 606 for 2018:

		(Unaudited)
		Three months ended
		ASC 606
(in thousands)		March 31, 2018				June 30, 2018				September 30, 2018				December 31, 2018
Software product revenue		$	89,670			$	70,606			$	64,182			$	79,903
Total revenue			113,257				93,360				86,751				103,011
Net income (loss)			24,684				(1,080	)			934				(9,003	)
Adjusted EBITDA			29,550				5,303				2,399				12,928

Business Outlook

The following table provides a reconciliation of projected Non-GAAP net income to projected net loss, the most comparable GAAP financial measure:

		(Unaudited)
		Three Months ending December 31, 2019								Year Ending December 31, 2019
(in thousands)		Low				High				Low				High
Net loss		$	(5,350	)		$	(3,350	)		$	(11,400	)		$	(9,400	)
Stock-based compensation expense			2,100				2,100				7,700				7,700
Amortization of intangible assets			3,600				3,600				14,300				14,300
Acquisition related deferred revenue (1)			2,250				2,250				9,000				9,000
Non-recurring adjustments			—				—				2,000				2,000
Income tax effect of non-GAAP adjustments			(370	)			(370	)			(1,500	)			(1,500	)
Non-GAAP net income		$	2,230			$	4,230			$	20,100			$	22,100

(1)	Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

The following table provides a reconciliation of projected Adjusted EBITDA and Modified Adjusted EBITDA to projected net loss, the most comparable GAAP financial measure:

		(Unaudited)
		Three Months ending December 31, 2019								Year Ending December 31, 2019
(in thousands)		Low				High				Low				High
Net loss		$	(5,350	)		$	(3,350	)		$	(11,400	)		$	(9,400	)
Income tax expense			3,200				3,200				10,400				10,400
Stock-based compensation expense			2,100				2,100				7,700				7,700
Interest expense			2,800				2,800				6,300				6,300
Depreciation and amortization			5,400				5,400				21,200				21,200
Interest income and other non-recurring adjustments			(900	)			(900	)			(200	)			(200	)
Adjusted EBITDA			7,250				9,250				34,000				36,000
Acquisition related deferred revenue (1)			2,250				2,250				9,000				9,000
Modified Adjusted EBITDA		$	9,500			$	11,500			$	43,000			$	45,000

(1)	Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

The following table provides a reconciliation of projected Non-GAAP total revenue to projected total revenue, the most comparable GAAP financial measure:

		(Unaudited)
		Three Months ending December 31, 2019								Year Ending December 31, 2019
(in thousands)		Low				High				Low				High
Total revenue		$	105,000			$	109,000			$	440,000			$	444,000
Acquisition related deferred revenue (1)			2,250				2,250				9,000				9,000
Non-GAAP total revenue		$	107,250			$	111,250			$	449,000			$	453,000

(1)	Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.

The following table provides a reconciliation of projected Non-GAAP total software product revenue to projected total software product revenue, the most comparable GAAP financial measure:

		(Unaudited)
		Three Months ending December 31, 2019								Year Ending December 31, 2019
(in thousands)		Low				High				Low				High
Total software product revenue		$	83,500			$	87,500			$	349,000			$	353,000
Acquisition related deferred revenue (1)			2,250				2,250				9,000				9,000
Non-GAAP total software product revenue		$	85,750			$	89,750			$	358,000			$	362,000

(1)	Adjustment for revenue not recognized under GAAP due to acquisition accounting adjustments associated with the accounting for deferred revenue in significant business combinations.