[July 17, 2018] |
|
ADTRAN, Inc. Reports Earnings for the Second Quarter 2018 and Declares Quarterly Cash Dividend
ADTRAN, Inc. (NASDAQ: ADTN) reported results for the second quarter
2018. For the quarter, sales were $128.0 million compared to $184.7
million for the second quarter of 2017. Net loss was $7.7 million
compared to net income of $12.4 million for the second quarter of 2017.
Earnings per share, assuming dilution, were a loss of $0.16 compared to
income of $0.26 for the second quarter of 2017. Non-GAAP earnings per
share were a loss of $0.10 compared to income of $0.30 for the second
quarter of 2017. GAAP earnings per share include the expense of
stock-based compensation, acquisition related amortizations and other
expenses, and a restructuring program. The reconciliation between GAAP
earnings per share, diluted, and non-GAAP earnings per share, diluted,
is in the table provided.
ADTRAN Chairman and Chief Executive Officer Tom Stanton stated, "Our
second quarter results showed steady improvement from the previous
quarter. We are pleased with our quarter-over-quarter growth in revenue
and gross margins. Looking ahead, we expect our international business
to remain strong through the second half of the year. We are also
encouraged by what we are seeing in our North American carrier and
cable/MSO business - all of which indicate further momentum as we head
into 2019."
The Company also announced that its Board of Directors declared a cash
dividend for the second quarter of 2018. The quarterly cash dividend is
$0.09 per common share to be paid to holders of record at the close of
business on August 1, 2018. The ex-dividend date is July 31, 2018, and
the payment date is August 15, 2018.
The Company confirmed that it will hold its second quarter conference
call Wednesday, July 18, 2018, at 9:30 a.m. Central Time. ADTRAN will
webcast this conference. To listen, simply visit the Investor Relations
site at www.investors.adtran.com
approximately 10 minutes prior to the start of the call and click on the
conference call link provided.
An online replay of the conference call, as well as the text of the
Company's earnings release, will be available on the Investor Relations
site approximately 24 hours following the call and will remain available
for at least 12 months. For more information, visit www.investors.adtran.com
or via email at [email protected].
ADTRAN, Inc. is the leading global provider of networking and
communications equipment. ADTRAN's products enable voice, data, video
and Internet communications across a variety of network infrastructures.
ADTRAN solutions are currently in use by service providers, private
enterprises, government organizations, and millions of individual users
worldwide. Please visit us at www.adtran.com,
LinkedIn
and Twitter.
This press release contains forward-looking statements which reflect
management's best judgment based on factors currently known. However,
these statements involve risks and uncertainties, including the
successful development and market acceptance of new products, the degree
of competition in the market for such products, the product and channel
mix, component costs, manufacturing efficiencies, and other risks
detailed in our annual report on Form 10-K for the year ended December
31, 2017. These risks and uncertainties could cause actual results to
differ materially from those in the forward-looking statements included
in this press release.
|
|
|
|
|
Condensed Consolidated Balance Sheet (Unaudited) (In
thousands)
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
|
|
2018
|
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
100,319
|
|
|
$
|
86,433
|
Short-term investments
|
|
|
|
|
|
6,069
|
|
|
|
16,129
|
Accounts receivable, net
|
|
|
|
|
|
76,135
|
|
|
|
144,150
|
Other receivables
|
|
|
|
|
|
28,163
|
|
|
|
26,578
|
Inventory, net
|
|
|
|
|
|
120,537
|
|
|
|
122,542
|
Prepaid expenses and other current assets
|
|
|
|
|
|
9,464
|
|
|
|
17,282
|
Total Current Assets
|
|
|
|
|
|
340,687
|
|
|
|
413,114
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
|
|
82,910
|
|
|
|
85,079
|
Deferred tax assets, net
|
|
|
|
|
|
35,615
|
|
|
|
23,428
|
Goodwill
|
|
|
|
|
|
3,492
|
|
|
|
3,492
|
Other assets
|
|
|
|
|
|
32,429
|
|
|
|
13,725
|
Long-term investments
|
|
|
|
|
|
144,437
|
|
|
|
130,256
|
Total Assets
|
|
|
|
|
$
|
639,570
|
|
|
$
|
669,094
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
60,150
|
|
|
$
|
60,632
|
Unearned revenue
|
|
|
|
|
|
14,307
|
|
|
|
13,070
|
Accrued expenses
|
|
|
|
|
|
14,785
|
|
|
|
13,232
|
Accrued wages and benefits
|
|
|
|
|
|
14,913
|
|
|
|
15,948
|
Income tax payable
|
|
|
|
|
|
11,948
|
|
|
|
3,936
|
Total Current Liabilities
|
|
|
|
|
|
116,103
|
|
|
|
106,818
|
|
|
|
|
|
|
|
|
|
|
|
Non-current unearned revenue
|
|
|
|
|
|
3,639
|
|
|
|
4,556
|
Other non-current liabilities
|
|
|
|
|
|
34,601
|
|
|
|
34,209
|
Bonds payable
|
|
|
|
|
|
25,600
|
|
|
|
25,600
|
Total Liabilities
|
|
|
|
|
|
179,943
|
|
|
|
171,183
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
459,627
|
|
|
|
497,911
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
|
|
|
$
|
639,570
|
|
|
$
|
669,094
|
|
|
|
|
|
|
Consolidated Statements of Income (Unaudited) (In
thousands, except per share data)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
$
|
115,063
|
|
|
|
$
|
155,543
|
|
|
|
$
|
220,316
|
|
|
|
$
|
299,140
|
|
Services
|
|
|
|
|
|
12,985
|
|
|
|
|
29,130
|
|
|
|
|
28,538
|
|
|
|
|
55,812
|
|
Total Sales
|
|
|
|
|
|
128,048
|
|
|
|
|
184,673
|
|
|
|
|
248,854
|
|
|
|
|
354,952
|
|
Cost of Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
|
|
|
69,629
|
|
|
|
|
79,663
|
|
|
|
|
138,241
|
|
|
|
|
156,327
|
|
Services
|
|
|
|
|
|
8,423
|
|
|
|
|
20,384
|
|
|
|
|
20,884
|
|
|
|
|
40,290
|
|
Total Cost of Sales
|
|
|
|
|
|
78,052
|
|
|
|
|
100,047
|
|
|
|
|
159,125
|
|
|
|
|
196,617
|
|
Gross Profit
|
|
|
|
|
|
49,996
|
|
|
|
|
84,626
|
|
|
|
|
89,729
|
|
|
|
|
158,335
|
|
Selling, general and administrative expenses
|
|
|
|
|
|
32,080
|
|
|
|
|
34,706
|
|
|
|
|
65,611
|
|
|
|
|
69,495
|
|
Research and development expenses
|
|
|
|
|
|
30,729
|
|
|
|
|
33,557
|
|
|
|
|
63,578
|
|
|
|
|
65,528
|
|
Operating Income (Loss)
|
|
|
|
|
|
(12,813
|
)
|
|
|
|
16,363
|
|
|
|
|
(39,460
|
)
|
|
|
|
23,312
|
|
Interest and dividend income
|
|
|
|
|
|
913
|
|
|
|
|
972
|
|
|
|
|
1,779
|
|
|
|
|
1,905
|
|
Interest expense
|
|
|
|
|
|
(132
|
)
|
|
|
|
(137
|
)
|
|
|
|
(264
|
)
|
|
|
|
(278
|
)
|
Net realized investment gain
|
|
|
|
|
|
990
|
|
|
|
|
1,390
|
|
|
|
|
893
|
|
|
|
|
1,860
|
|
Other expense, net
|
|
|
|
|
|
(217
|
)
|
|
|
|
(719
|
)
|
|
|
|
(274
|
)
|
|
|
|
(585
|
)
|
Gain on bargain purchase of a business
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
11,322
|
|
|
|
|
-
|
|
Income (loss) before provision for income taxes
|
|
|
|
|
|
(11,259
|
)
|
|
|
|
17,869
|
|
|
|
|
(26,004
|
)
|
|
|
|
26,214
|
|
(Provision) benefit for income taxes
|
|
|
|
|
|
3,589
|
|
|
|
|
(5,468
|
)
|
|
|
|
7,520
|
|
|
|
|
(7,162
|
)
|
Net Income (Loss)
|
|
|
|
|
$
|
(7,670
|
)
|
|
|
$
|
12,401
|
|
|
|
$
|
(18,484
|
)
|
|
|
$
|
19,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
|
|
|
|
47,856
|
|
|
|
|
48,036
|
|
|
|
|
48,043
|
|
|
|
|
48,232
|
|
Weighted average shares outstanding - diluted
|
|
|
|
|
|
47,902
|
|
|
|
|
48,413
|
|
|
|
|
48,091
|
|
|
|
|
48,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share - basic
|
|
|
|
|
$
|
(0.16
|
)
|
|
|
$
|
0.26
|
|
|
|
$
|
(0.38
|
)
|
|
|
$
|
0.40
|
|
Earnings (loss) per common share - diluted
|
|
|
|
|
$
|
(0.16
|
)
|
|
|
$
|
0.26
|
|
|
|
$
|
(0.38
|
)
|
|
|
$
|
0.39
|
|
|
(1) Assumes exercise of dilutive stock options
calculated under the treasury stock method.
|
|
|
|
|
|
|
Consolidated Statements of Comprehensive Income (Unaudited) (In
thousands)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
|
|
|
|
$
|
(7,670
|
)
|
|
|
$
|
12,401
|
|
|
|
$
|
(18,484
|
)
|
|
|
$
|
19,052
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized gains (losses) on available-for-sale securities
|
|
|
|
|
|
104
|
|
|
|
|
373
|
|
|
|
|
(3,308
|
)
|
|
|
|
1,708
|
|
Net unrealized losses on cash flow hedges
|
|
|
|
|
|
-
|
|
|
|
|
(417
|
)
|
|
|
|
-
|
|
|
|
|
(338
|
)
|
Defined benefit plan adjustments
|
|
|
|
|
|
5
|
|
|
|
|
86
|
|
|
|
|
67
|
|
|
|
|
141
|
|
Foreign currency translation
|
|
|
|
|
|
(3,424
|
)
|
|
|
|
2,619
|
|
|
|
|
(2,582
|
)
|
|
|
|
3,861
|
|
Other Comprehensive Income (Loss), net of tax
|
|
|
|
|
|
(3,315
|
)
|
|
|
|
2,661
|
|
|
|
|
(5,823
|
)
|
|
|
|
5,372
|
|
Comprehensive Income (Loss), net of tax
|
|
|
|
|
$
|
(10,985
|
)
|
|
|
$
|
15,062
|
|
|
|
$
|
(24,307
|
)
|
|
|
$
|
24,424
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows (Unaudited) (In
thousands)
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
2018
|
|
|
2017
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
(18,484
|
)
|
|
|
$
|
19,052
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
|
7,526
|
|
|
|
|
8,377
|
|
Amortization of net premium on available-for-sale investments
|
|
|
|
|
|
20
|
|
|
|
|
238
|
|
Net realized gain on long-term investments
|
|
|
|
|
|
(893
|
)
|
|
|
|
(1,860
|
)
|
Net (gain) loss on disposal of property, plant and equipment
|
|
|
|
|
|
68
|
|
|
|
|
(11
|
)
|
Gain on bargain purchase of a business
|
|
|
|
|
|
(11,322
|
)
|
|
|
|
-
|
|
Stock-based compensation expense
|
|
|
|
|
|
3,603
|
|
|
|
|
3,739
|
|
Deferred income taxes
|
|
|
|
|
|
(16,384
|
)
|
|
|
|
(2,772
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
|
|
66,931
|
|
|
|
|
13,911
|
|
Other receivables
|
|
|
|
|
|
9
|
|
|
|
|
571
|
|
Inventory
|
|
|
|
|
|
2,063
|
|
|
|
|
(7,547
|
)
|
Prepaid expenses and other assets
|
|
|
|
|
|
10,157
|
|
|
|
|
(9,853
|
)
|
Accounts payable
|
|
|
|
|
|
683
|
|
|
|
|
(10,910
|
)
|
Accrued expenses and other liabilities
|
|
|
|
|
|
2,008
|
|
|
|
|
(2,629
|
)
|
Income tax payable
|
|
|
|
|
|
6,945
|
|
|
|
|
10,273
|
|
Net cash provided by operating activities
|
|
|
|
|
|
52,930
|
|
|
|
|
20,579
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
|
(4,183
|
)
|
|
|
|
(7,509
|
)
|
Proceeds from disposals of property, plant and equipment
|
|
|
|
|
|
-
|
|
|
|
|
16
|
|
Proceeds from sales and maturities of available-for-sale investments
|
|
|
|
|
|
86,436
|
|
|
|
|
81,891
|
|
Purchases of available-for-sale investments
|
|
|
|
|
|
(89,801
|
)
|
|
|
|
(65,140
|
)
|
Acquisition of business
|
|
|
|
|
|
(7,806
|
)
|
|
|
|
-
|
|
Net cash provided by (used in) investing activities
|
|
|
|
|
|
(15,354
|
)
|
|
|
|
9,258
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from stock option exercises
|
|
|
|
|
|
369
|
|
|
|
|
1,722
|
|
Purchases of treasury stock
|
|
|
|
|
|
(12,774
|
)
|
|
|
|
(17,311
|
)
|
Dividend payments
|
|
|
|
|
|
(8,679
|
)
|
|
|
|
(8,719
|
)
|
Net cash used in financing activities
|
|
|
|
|
|
(21,084
|
)
|
|
|
|
(24,308
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
|
|
16,492
|
|
|
|
|
5,529
|
|
Effect of exchange rate changes
|
|
|
|
|
|
(2,606
|
)
|
|
|
|
3,374
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
|
86,433
|
|
|
|
|
79,895
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
|
$
|
100,319
|
|
|
|
$
|
88,798
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of non-cash investing activities:
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment included in accounts
payable
|
|
|
|
|
$
|
209
|
|
|
|
$
|
454
|
|
|
|
|
|
|
|
Supplemental Information Restructuring Expenses (Unaudited) (In
thousands)
|
|
Restructuring expense was recorded in the following Consolidated
Statements of Income categories for the three and six months ended
June 30, 2018 and 2017:
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expense included in cost of sales
|
|
|
|
$
|
391
|
|
|
$
|
|
|
-
|
|
$
|
2,761
|
|
|
$
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense
|
|
|
|
|
634
|
|
|
|
|
|
-
|
|
|
2,400
|
|
|
|
|
|
-
|
Research and development expense
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
1,814
|
|
|
|
|
|
-
|
Restructuring expense included in operating expenses
|
|
|
|
|
634
|
|
|
|
|
|
-
|
|
|
4,214
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total restructuring expense
|
|
|
|
|
1,025
|
|
|
|
|
|
-
|
|
|
6,975
|
|
|
|
|
|
-
|
Provision for income taxes
|
|
|
|
|
(267
|
)
|
|
|
|
|
-
|
|
|
(1,814
|
)
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total restructuring expense, net of tax
|
|
|
|
$
|
758
|
|
|
$
|
|
|
-
|
|
$
|
5,161
|
|
|
$
|
|
|
-
|
|
|
|
|
|
|
Supplemental Information Acquisition Related
Expenses, Amortizations and Adjustments (Unaudited) (In
thousands)
|
|
On August 4, 2011, we closed on the acquisition of Bluesocket,
Inc., on May 4, 2012, we closed on the acquisition of the Nokia
Siemens Networks Broadband Access business (NSN BBA), on September
13, 2016, we closed on the acquisition of CommScope's active fiber
business (CommScope), and on March 19, 2018, we closed on the
acquisition of Sumitomo Electric Lightwave Corp.'s North American
EPON business (Sumitomo). Acquisition related expenses,
amortizations and adjustments for the three and six months ended
June 30, 2018 and 2017 for all four transactions are as follows:
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Bluesocket, Inc. acquisition
|
|
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets
|
|
|
$
|
158
|
|
|
$
|
158
|
|
|
$
|
316
|
|
|
$
|
316
|
|
|
|
|
|
|
|
|
|
|
|
NSN BBA acquisition
|
|
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets
|
|
|
|
90
|
|
|
|
129
|
|
|
|
182
|
|
|
|
337
|
|
Amortization of other purchase accounting adjustments
|
|
|
|
1
|
|
|
|
10
|
|
|
|
1
|
|
|
|
38
|
|
Subtotal - NSN BBA acquisition
|
|
|
|
91
|
|
|
|
139
|
|
|
|
183
|
|
|
|
375
|
|
|
|
|
|
|
|
|
|
|
|
CommScope acquisition
|
|
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets
|
|
|
|
125
|
|
|
|
608
|
|
|
|
250
|
|
|
|
1,294
|
|
Amortization of other purchase accounting adjustments
|
|
|
|
-
|
|
|
|
31
|
|
|
|
1
|
|
|
|
81
|
|
Acquisition related professional fees, travel and other expenses
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8
|
|
Subtotal - CommScope acquisition
|
|
|
|
125
|
|
|
|
639
|
|
|
|
251
|
|
|
|
1,383
|
|
|
|
|
|
|
|
|
|
|
|
Sumitomo acquisition
|
|
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets
|
|
|
|
662
|
|
|
|
-
|
|
|
|
772
|
|
|
|
-
|
|
Amortization of other purchase accounting adjustments
|
|
|
|
79
|
|
|
|
-
|
|
|
|
79
|
|
|
|
-
|
|
Acquisition related professional fees, travel and other expenses
|
|
|
|
27
|
|
|
|
-
|
|
|
|
124
|
|
|
|
-
|
|
Subtotal - Sumitomo acquisition
|
|
|
|
768
|
|
|
|
-
|
|
|
|
975
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total acquisition related expenses, amortizations and adjustments
|
|
|
|
1,142
|
|
|
|
936
|
|
|
|
1,725
|
|
|
|
2,074
|
|
Provision for income taxes
|
|
|
|
(301
|
)
|
|
|
(354
|
)
|
|
|
(457
|
)
|
|
|
(779
|
)
|
Total acquisition related expenses, amortizations and
adjustments, net of tax
|
|
|
$
|
841
|
|
|
$
|
582
|
|
|
$
|
1,268
|
|
|
$
|
1,295
|
|
|
|
The acquisition related expenses, amortizations and adjustments
above were recorded in the following Consolidated Statements of
Income categories for the three and six months ended June 30, 2018
and 2017:
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
$
|
430
|
|
|
$
|
31
|
|
|
$
|
489
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
319
|
|
|
|
52
|
|
|
|
585
|
|
|
|
114
|
|
Research and development expenses
|
|
|
|
393
|
|
|
|
853
|
|
|
|
651
|
|
|
|
1,879
|
|
Total acquisition related expenses, amortizations and
adjustments included in operating expenses
|
|
|
|
712
|
|
|
|
905
|
|
|
|
1,236
|
|
|
|
1,993
|
|
|
|
|
|
|
|
|
|
|
|
Total acquisition related expenses, amortizations and adjustments
|
|
|
|
1,142
|
|
|
|
936
|
|
|
|
1,725
|
|
|
|
2,074
|
|
Provision for income taxes
|
|
|
|
(301
|
)
|
|
|
(354
|
)
|
|
|
(457
|
)
|
|
|
(779
|
)
|
Total acquisition related expenses, amortizations and
adjustments, net of tax
|
|
|
$
|
841
|
|
|
$
|
582
|
|
|
$
|
1,268
|
|
|
$
|
1,295
|
|
|
|
|
|
|
|
Supplemental Information Stock-based Compensation
Expense (Unaudited) (In thousands)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense included in cost of sales
|
|
|
|
|
$
|
102
|
|
|
|
$
|
93
|
|
|
|
$
|
197
|
|
|
|
$
|
184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense
|
|
|
|
|
|
995
|
|
|
|
|
1,008
|
|
|
|
|
2,030
|
|
|
|
|
2,024
|
|
Research and development expense
|
|
|
|
|
|
687
|
|
|
|
|
755
|
|
|
|
|
1,376
|
|
|
|
|
1,531
|
|
Stock-based compensation expense included in operating expenses
|
|
|
|
|
|
1,682
|
|
|
|
|
1,763
|
|
|
|
|
3,406
|
|
|
|
|
3,555
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stock-based compensation expense
|
|
|
|
|
|
1,784
|
|
|
|
|
1,856
|
|
|
|
|
3,603
|
|
|
|
|
3,739
|
|
Tax benefit for expense associated with non-qualified options,
PSUs, RSUs and restricted stock
|
|
|
|
|
|
(340
|
)
|
|
|
|
(433
|
)
|
|
|
|
(724
|
)
|
|
|
|
(813
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stock-based compensation expense, net of tax
|
|
|
|
|
$
|
1,444
|
|
|
|
$
|
1,423
|
|
|
|
$
|
2,879
|
|
|
|
$
|
2,926
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income per share, diluted, to Non-GAAP
net income per share, diluted (Unaudited)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per common share - diluted
|
|
|
|
|
$
|
(0.16
|
)
|
|
|
$
|
0.26
|
|
|
$
|
(0.38
|
)
|
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring expense
|
|
|
|
|
|
0.02
|
|
|
|
|
-
|
|
|
|
0.11
|
|
|
|
|
-
|
Acquisition related expenses, amortizations and adjustments
|
|
|
|
|
|
0.02
|
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
|
0.03
|
Stock-based compensation expense
|
|
|
|
|
|
0.03
|
|
|
|
|
0.03
|
|
|
|
0.06
|
|
|
|
|
0.06
|
Gain on bargain purchase of a business
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(0.24
|
)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per common share - diluted(1)
|
|
|
|
|
$
|
(0.10
|
)
|
|
|
$
|
0.30
|
|
|
$
|
(0.43
|
)
|
|
|
$
|
0.48
|
|
(1) Table may not foot due to rounding
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180717006061/en/
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