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Total revenue for the quarter was
"The strength of our fourth quarter was a fitting conclusion to a
remarkably strong year for our business. Our investments to expand our
geographic sales footprint and add sales people with targeted industry
and product knowledge has accelerated our growth," stated
GAAP operating income for the fourth quarter and the full fiscal year
2012 was
GAAP net income for the fourth quarter was
For the full year, GAAP net income was
Operating cash flow totaled
"We experienced impressive breadth and depth of demand for our
technologies this quarter whether by geography or by industry vertical.
This resulted in record financial metrics for both the fourth quarter
and the full fiscal year 2012," stated
Additional information on
About
Forward-Looking Statements
Certain statements contained in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
provide current expectations of future events based on certain
assumptions and include any statement that does not directly relate to
any historical or current fact. Actual results may differ materially
from those indicated by such forward-looking statements as a result of
various important factors, including: risks related to delays or
reductions in information technology spending; the effects of industry
consolidation; the ability of the Company to compete effectively;
uncertainty and adverse results in litigation and related settlements;
the integration of acquisitions and the ability to market successfully
acquired technologies and products; the inability to adequately protect
Company intellectual property and the potential for infringement or
breach of license claims of or relating to third party intellectual
property; the ability to deliver and stimulate demand for new products
and technological innovations on a timely basis; risks related to data
and information security vulnerabilities; ineffective management of, and
control over, the Company's growth and international operations;
fluctuations in exchange rates; and changes in and a dependence on key
personnel, as well as other factors contained in our most recent
Quarterly Report on Form 10-Q (copies of which may be accessed through
the
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (In thousands - except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
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February 28, | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 (1) | |||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Subscriptions | $ | 255,167 | $ | 209,303 | $ | 965,575 | $ | 773,404 | ||||||||||||
| Training and services | 41,844 | 35,493 | 167,528 | 135,873 | ||||||||||||||||
| Total subscription, training and services revenue | 297,011 | 244,796 | 1,133,103 | 909,277 | ||||||||||||||||
| Cost of revenue: | ||||||||||||||||||||
| Subscriptions | 17,360 | 14,742 | 66,237 | 52,997 | ||||||||||||||||
| Training and services | 26,912 | 26,862 | 112,311 | 97,290 | ||||||||||||||||
| Total cost of subscription, training and services revenue | 44,272 | 41,604 | 178,548 | 150,287 | ||||||||||||||||
| Total gross profit | 252,739 | 203,192 | 954,555 | 758,990 | ||||||||||||||||
| Operating expense: | ||||||||||||||||||||
| Sales and marketing | 115,018 | 88,273 | 419,635 | 327,408 | ||||||||||||||||
| Research and development | 55,147 | 45,150 | 208,662 | 171,253 | ||||||||||||||||
| General and administrative | 34,069 | 30,359 | 126,345 | 114,653 | ||||||||||||||||
| Total operating expense | 204,234 | 163,782 | 754,642 | 613,314 | ||||||||||||||||
| Income from operations | 48,505 | 39,410 | 199,913 | 145,676 | ||||||||||||||||
| Interest income | 2,279 | 1,697 | 8,418 | 6,743 | ||||||||||||||||
| Other income (expense), net | (155 | ) | (866 | ) | (322 | ) | 1,275 | |||||||||||||
| Income before provision for income taxes | 50,629 | 40,241 | 208,009 | 153,694 | ||||||||||||||||
| Provision for income taxes | 14,661 | 6,707 | 61,383 | 46,416 | ||||||||||||||||
| Net income | $ | 35,968 | $ | 33,534 | $ | 146,626 | $ | 107,278 | ||||||||||||
| Net income per share: | ||||||||||||||||||||
| Basic | $ | 0.19 | $ | 0.17 | $ | 0.76 | $ | 0.56 | ||||||||||||
| Diluted | $ | 0.18 | $ | 0.17 | $ | 0.75 | $ | 0.55 | ||||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||
| Basic | 193,117 | 192,996 | 193,151 | 190,294 | ||||||||||||||||
| Diluted | 195,879 | 197,878 | 196,451 | 196,353 | ||||||||||||||||
| (1) Derived from audited financial statements | ||||||||||||||||||||
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| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (In thousands) | ||||||||||
| ASSETS | ||||||||||
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February 28, | |||||||||
| 2012 | 2011 (1) | |||||||||
| (Unaudited) | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 549,217 | $ | 642,630 | ||||||
| Investments in debt and equity securities | 264,298 | 217,970 | ||||||||
| Accounts receivable, net | 255,180 | 184,741 | ||||||||
| Deferred tax assets, net | 69,765 | 75,720 | ||||||||
| Prepaid expenses | 81,266 | 62,364 | ||||||||
| Other current assets | 1,629 | 1,133 | ||||||||
| Total current assets | 1,221,355 | 1,184,558 | ||||||||
| Property and equipment, net | 92,065 | 75,558 | ||||||||
| Goodwill | 591,563 | 463,673 | ||||||||
| Identifiable intangibles, net | 100,638 | 109,932 | ||||||||
| Investments in debt securities | 446,838 | 331,791 | ||||||||
| Other assets, net | 38,640 | 33,810 | ||||||||
| Total assets | $ | 2,491,099 | $ | 2,199,322 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued expenses | $ | 114,078 | $ | 106,514 | ||||||
| Deferred revenue | 711,408 | 572,637 | ||||||||
| Other current obligations | 819 | 650 | ||||||||
| Total current liabilities | 826,305 | 679,801 | ||||||||
| Long term deferred revenue | 235,328 | 199,617 | ||||||||
| Other long term obligations | 30,649 | 29,205 | ||||||||
| Stockholders' equity: | ||||||||||
| Common stock | 23 | 22 | ||||||||
| Additional paid-in capital | 1,709,082 | 1,610,238 | ||||||||
| Retained earnings | 391,676 | 245,050 | ||||||||
| Treasury stock, at cost | (696,012 | ) | (562,792 | ) | ||||||
| Accumulated other comprehensive (loss) income | (5,952 | ) | (1,819 | ) | ||||||
| Total stockholders' equity | 1,398,817 | 1,290,699 | ||||||||
| Total liabilities and stockholders' equity | $ | 2,491,099 | $ | 2,199,322 | ||||||
| (1) Derived from audited financial statements | ||||||||||
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| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
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February 28, | ||||||||||||||
| 2012 | 2011 | 2012 | 2011 (1) | ||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||
| Net income | $ | 35,968 | $ | 33,534 | $ | 146,626 | $ | 107,278 | |||||||||
|
Adjustments to reconcile net income to net cash provided by operating activities: |
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| Depreciation and amortization | 13,094 | 12,757 | 51,372 | 47,997 | |||||||||||||
| Share-based compensation expense | 23,557 | 16,408 | 79,267 | 60,597 | |||||||||||||
| Deferred income taxes | 9,477 | 4,151 | 45,702 | 33,848 | |||||||||||||
| Excess tax benefits from share-based payment arrangements | (5,633 | ) | (10,292 | ) | (29,931 | ) | (42,291 | ) | |||||||||
| Gain on sale of available-for-sale equity securities | (617 | ) | (903 | ) | (1,924 | ) | (3,746 | ) | |||||||||
| Other | (19 | ) | 716 | 738 | 1,505 | ||||||||||||
| Changes in operating assets and liabilities net of effects of acquisitions: | |||||||||||||||||
| Accounts receivable | (46,981 | ) | (30,481 | ) | (70,410 | ) | (41,512 | ) | |||||||||
| Prepaid expenses | (12,866 | ) | (7,863 | ) | (19,190 | ) | (17,220 | ) | |||||||||
| Accounts payable and accrued expenses | (9,090 | ) | 2,277 | 12,504 | 29,534 | ||||||||||||
| Deferred revenue | 120,688 | 73,540 | 176,855 | 112,724 | |||||||||||||
| Other | 433 | 1,157 | 274 | 2,034 | |||||||||||||
| Net cash provided by operating activities | 128,011 | 95,001 | 391,883 | 290,748 | |||||||||||||
| Cash flows from investing activities: | |||||||||||||||||
| Purchase of available-for-sale debt securities | (231,958 | ) | (216,327 | ) | (962,974 | ) | (751,420 | ) | |||||||||
| Proceeds from sales and maturities of available-for-sale debt securities | 213,318 | 165,472 | 791,585 | 770,860 | |||||||||||||
| Proceeds from sales of available-for-sale equity securities | 633 | 939 | 1,979 | 3,938 | |||||||||||||
| Acquisitions of businesses, net of cash acquired | - | - | (135,210 | ) | (31,381 | ) | |||||||||||
| Net purchase of strategic equity investments | - | - | (2,622 | ) | - | ||||||||||||
| Purchase of developed technologies and other intangible assets | (1,104 | ) | (1,667 | ) | (5,349 | ) | (14,093 | ) | |||||||||
| Purchase of property and equipment | (14,974 | ) | (7,588 | ) | (46,269 | ) | (32,759 | ) | |||||||||
| Net cash used in investing activities | (34,085 | ) | (59,171 | ) | (358,860 | ) | (54,855 | ) | |||||||||
| Cash flows from financing activities: | |||||||||||||||||
| Excess tax benefits from share-based payment arrangements | 5,633 | 10,292 | 29,931 | 42,291 | |||||||||||||
| Proceeds from exercise of common stock options | 1,259 | 4,090 | 16,812 | 84,443 | |||||||||||||
| Purchase of treasury stock | (76,268 | ) | (10,791 | ) | (133,220 | ) | (90,146 | ) | |||||||||
| Payments related to net settlement of employee share-based compensation awards | (4,229 | ) | (3,162 | ) | (36,332 | ) | (26,250 | ) | |||||||||
| Payments on other borrowings | (319 | ) | (16 | ) | (1,145 | ) | (876 | ) | |||||||||
| Proceeds from other borrowings | 52 | - | 118 | 318 | |||||||||||||
| Net cash provided by (used in) financing activities | (73,872 | ) | 413 | (123,836 | ) | 9,780 | |||||||||||
| Effect of foreign currency exchange rates on cash and cash equivalents | 2,498 | 11,473 | (2,600 | ) | 8,839 | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | 22,552 | 47,716 | (93,413 | ) | 254,512 | ||||||||||||
| Cash and cash equivalents at beginning of the period | 526,665 | 594,914 | 642,630 | 388,118 | |||||||||||||
| Cash and cash equivalents at end of period | $ | 549,217 | $ | 642,630 | $ | 549,217 | $ | 642,630 | |||||||||
| (1) Derived from audited financial statements | |||||||||||||||||
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| RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands - except per share amounts) | ||||||||||||||||
| Non cash share-based compensation expense included in Consolidated Statements of Operations: | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
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February 28, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Cost of revenue | $ | 2,003 | $ | 1,884 | $ | 7,880 | $ | 6,053 | ||||||||
| Sales and marketing | 6,231 | 5,502 | 25,060 | 18,971 | ||||||||||||
| Research and development | 7,126 | 4,244 | 21,570 | 15,639 | ||||||||||||
| General and administration | 8,197 | 4,778 | 24,757 | 19,934 | ||||||||||||
| Total share-based compensation expense | $ | 23,557 | $ | 16,408 | $ | 79,267 | $ | 60,597 | ||||||||
| Amortization of intangible assets expense included in Consolidated Statements of Operations: | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
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February 28, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Cost of revenue | $ | 670 | $ | 979 | $ | 3,533 | $ | 3,274 | ||||||||
| Sales and marketing | 2,473 | 2,085 | 8,348 | 8,322 | ||||||||||||
| Research and development | 940 | 1,250 | 4,194 | 4,025 | ||||||||||||
| General and administration | 1,058 | 846 | 3,674 | 3,340 | ||||||||||||
| Total amortization of intangible assets expense | $ | 5,141 | $ | 5,160 | $ | 19,749 | $ | 18,961 | ||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
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February 28, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| GAAP net income | $ | 35,968 | $ | 33,534 | $ | 146,626 | $ | 107,278 | ||||||||
| Provision for income taxes | 14,661 | 6,707 | 61,383 | 46,416 | ||||||||||||
| GAAP income before provision for income taxes | $ | 50,629 | $ | 40,241 | $ | 208,009 | $ | 153,694 | ||||||||
| Add: Non-cash share-based compensation expense | 23,557 | 16,408 | 79,267 | 60,597 | ||||||||||||
| Add: Amortization of intangible assets | 5,141 | 5,160 | 19,749 | 18,961 | ||||||||||||
| Non-GAAP adjusted income before provision for income taxes | $ | 79,327 | $ | 61,809 | $ | 307,025 | $ | 233,252 | ||||||||
| Provision for income taxes (1) | 22,082 | 10,437 | 90,603 | 70,442 | ||||||||||||
| Non-GAAP adjusted net income (basic and diluted) | $ | 57,245 | $ | 51,372 | $ | 216,422 | $ | 162,810 | ||||||||
| Non-GAAP adjusted net income per share: | ||||||||||||||||
| Basic | $ | 0.30 | $ | 0.27 | $ | 1.12 | $ | 0.86 | ||||||||
| Diluted | $ | 0.29 | $ | 0.26 | $ | 1.10 | $ | 0.83 | ||||||||
| (1) Provision for income taxes: | ||||||||||||||||
| Non-GAAP adjusted net income before income tax provision | $ | 79,327 | $ | 61,809 | $ | 307,025 | $ | 233,252 | ||||||||
| Estimated annual effective tax rate | 27.8 | % | 16.9 | % | 30.2 | % | 30.2 | % | ||||||||
| Non-GAAP provision for income taxes before discrete tax benefit | $ | 22,082 | $ | 10,437 | $ | 92,668 | $ | 70,442 | ||||||||
| Discrete tax benefit | - | - | 2,065 | - | ||||||||||||
| Provision for income taxes on Non-GAAP adjusted net income | $ | 22,082 | $ | 10,437 | $ | 90,603 | $ | 70,442 | ||||||||
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||||||||||||||||
| RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (In thousands - except per share amounts) | ||||||||||||||||
| Reconciliation of GAAP results to non-GAAP adjusted results | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
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February 28, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| GAAP gross profit | $ | 252,739 | $ | 203,192 | $ | 954,555 | $ | 758,990 | ||||||||
| Add: Non-cash share-based compensation expense | 2,003 | 1,884 | 7,880 | 6,053 | ||||||||||||
| Add: Amortization of intangible assets | 670 | 979 | 3,533 | 3,274 | ||||||||||||
| Non-GAAP gross profit | $ | 255,412 | $ | 206,055 | $ | 965,968 | $ | 768,317 | ||||||||
| Non-GAAP gross margin | 86.0 | % | 84.2 | % | 85.2 | % | 84.5 | % | ||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
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February 28, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| GAAP operating expenses | $ | 204,234 | $ | 163,782 | $ | 754,642 | $ | 613,314 | ||||||||
| Deduct: Non-cash share-based compensation expense | (21,554 | ) | (14,524 | ) | (71,387 | ) | (54,544 | ) | ||||||||
| Deduct: Amortization of intangible assets | (4,471 | ) | (4,181 | ) | (16,216 | ) | (15,687 | ) | ||||||||
| Non-GAAP adjusted operating expenses | $ | 178,209 | $ | 145,077 | $ | 667,039 | $ | 543,083 | ||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
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February 28, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| GAAP operating income | $ | 48,505 | $ | 39,410 | $ | 199,913 | $ | 145,676 | ||||||||
| Add: Non-cash share-based compensation expense | 23,557 | 16,408 | 79,267 | 60,597 | ||||||||||||
| Add: Amortization of intangible assets | 5,141 | 5,160 | 19,749 | 18,961 | ||||||||||||
| Non-GAAP adjusted operating income | $ | 77,203 | $ | 60,978 | $ | 298,929 | $ | 225,234 | ||||||||
| Non-GAAP adjusted operating margin | 26.0 | % | 24.9 | % | 26.4 | % | 24.8 | % | ||||||||
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