Get Profile for:
Netezza Corporation
200 Crossing Boulevard
5th Floor
Framingham, MA 01702
United States - Map
Phone: 508-665-6800
Fax: 508-665-6811
Web Site: http://www.netezza.com
DETAILS
Index Membership: N/A
Sector: Technology
Industry: Diversified Computer Systems
Full Time Employees: 243
BUSINESS SUMMARY
Netezza Corporation provides data warehouse appliances worldwide. The company offers Netezza Performance Server that integrates database, server, and storage platforms in a purpose-built unit to enable detailed queries and analyses on stored data. This queries and analyses, referred to as business intelligence, provide organizations with actionable information to improve their business operations. It serves companies in telecommunications, e-business, retail, financial services, analytic service providers, government, and healthcare sectors. The company was founded in August 2000 under the name Intelligent Data Engines, Inc. and changed its name to Netezza Corporation in November 2000. Netezza Corporation is headquartered in Framingham, Massachusetts.
-----------------------------------------------------------------------------------------
Financial Results
Wednesday November 28, 8:00 am ET
Third quarter performance driven by revenue increase of 44% over prior year
GAAP diluted EPS increases to $0.02
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Netezza Corporation (NYSE Arca: NZ) today announced its financial results for the third fiscal quarter ended October 31, 2007.
Jit Saxena, Netezza's Chairman and Chief Executive Officer, stated, "We are extremely pleased with Netezza's solid performance in our third quarter with record revenues, new customer growth and increased earnings."
Highlights:
Revenue for the third quarter of fiscal 2008 increased 44% to $33.4 million compared with $23.2 million for the same period one year ago. Revenue for the first three quarters of fiscal 2008 increased 65% to $87.2 million compared with $53.0 million for the same period one year ago.
GAAP net income attributable to common stockholders for the third quarter of fiscal 2008 was $1.6 million compared with a GAAP net loss attributable to common stockholders of $3.0 million for the same period one year ago. Non-GAAP net income attributable to common stockholders for the third quarter of fiscal 2008 was $2.9 million compared with a non-GAAP net loss attributable to common stockholders of $1.2 million for the same period one year ago. Non-GAAP net income (loss) attributable to common stockholders and non-GAAP diluted net income per share (reported below) exclude non-cash stock based compensation and accretion of preferred stock dividends. A reconciliation of GAAP to non-GAAP results has been provided in the financial statements included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."
GAAP diluted net income per share for the third quarter of fiscal 2008 was $0.02 compared with a GAAP diluted net loss per share of $0.20 for the same period one year ago. Non-GAAP diluted net income per share for the third quarter of fiscal 2008 was $0.04 compared with a non-GAAP diluted net loss per share of $0.08 for the same period one year ago.
At October 31, 2007, total cash and marketable securities were $123.2 million, compared with $5.0 million at January 31, 2007. Netezza's initial public offering in July 2007 raised proceeds of $112.9 million, net of expenses. The company had no outstanding debt at October 31, 2007, compared with $6.5 million at January 31, 2007.
Netezza acquired 18 new customers in the third quarter of fiscal 2008, an increase of 100% over the nine new customers acquired in the third quarter of fiscal 2007 and representing the best quarter of new customer growth in Netezza's history.
Financial Guidance:
"We are pleased with the third quarter financial results which demonstrated continued momentum in our business analytics strategy. We continue to invest in sales and research and development to further penetrate targeted vertical markets and expect revenues of approximately $120 million for fiscal 2008 in total. We further estimate revenues for the next fiscal year to be approximately $160 million, while maintaining our goal to continue to increase profitability," said Patrick Scannell, Senior Vice President and Chief Financial Officer of Netezza.
Use of Non-GAAP Financial Measures:
To supplement Netezza's unaudited condensed consolidated financial statements presented in accordance with GAAP, Netezza uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Netezza's results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by Netezza include non-GAAP gross profit, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP net income (loss) attributable to common stockholders and non-GAAP net income (loss) per share. These non-GAAP measures exclude non-cash stock-based compensation and, where applicable, accretion of preferred stock dividends.
Netezza believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding Netezza's performance by excluding certain non-cash items that may not be indicative of Netezza's core business, operating results or future outlook. Because of the varying valuation methodologies and assumptions that companies use under FAS123R, Netezza's management believes that excluding non-cash stock-based compensation allows investors to analyze Netezza's recurring business over multiple periods and provide more meaningful comparison with other companies. Upon the closing of Netezza's public offering, accretion of preferred dividends was no longer applicable due to the conversion of preferred stock to common stock, and is therefore excluded to aid in comparing current and future operating results with those of past periods. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures provided in the financial statements included in this press release.
Third Quarter Conference Call:
Netezza will host a conference call and webcast at 8:30 AM Eastern Time (5:30 AM Pacific Time) on November 28, 2007 to discuss its third fiscal quarter results and business outlook.
The conference call can be accessed by dialing +1 800 561-2731 for participants in the United States and by dialing +1 617 614-3528 for participants outside the United States. The passcode for the conference call is 68188954. A telephonic replay of the conference call will also be available two hours after the call and will run for two weeks. The replay can be accessed by dialing +1 888 286-8010 for participants in the United States and by dialing +1 617 801-6888 for participants outside the United States. The passcode for the replay is 49374446.
The webcast will be accessible from the "Investor Relations" section of Netezza's website (http://www.netezza.com). The webcast will be archived on Netezza's website for a period of one year.
About Netezza Corporation:
Netezza is the global leader in analytic appliances that dramatically simplify high-performance analytics for business users across the extended enterprise, delivering significant competitive and operational advantage in today's information-intensive marketplaces. The Netezza Performance Server® (NPS®) family of streaming analytic™ appliances brings appliance simplicity to a broad range of complex data warehouse and analytic challenges. Based in Framingham, Mass., Netezza has offices in Washington, DC, the United Kingdom and Asia Pacific. For more information about Netezza, please visit www.netezza.com.
For Netezza Investors:
The statements set forth above include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to Netezza's future financial performance and Netezza's business prospects. These statements involve risk and uncertainties, including: market demand for our products; our limited operating history and history of losses; quarterly fluctuation of our business; our ability to attract and retain key personnel; competition in the data warehouse market; our dependence on certain key customers; our ability to protect our patents and intellectual property; our ability to defend against third party infringement claims, other litigation and contingent liabilities; and risks relating to operating internationally. For a further list and description of risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements in this release, we refer you to the "Risk Factors" section of Netezza's Quarterly Report on Form 10-Q for the quarter ended July 31, 2007, which is on file with the SEC and is available in the investor relations section of Netezza's website at http://www.netezza.com and on the SEC website at http://www.sec.gov. In addition, the forward-looking statements included in this press release represent our views as of November 28, 2007. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to November 28, 2007.
Netezza Corporation
Condensed Consolidated Balance Sheet
(in thousands)
October 31, January 31,
2007 2007
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 38,701 $ 5,018
Short term marketable securities 84,480 -
Accounts receivable 23,224 31,834
Inventory 33,659 26,239
Other current assets 4,992 1,370
Total current assets 185,056 64,461
Property and equipment, net 5,051 4,228
Restricted cash 379 379
Other long-term assets 160 131
Total assets $ 190,646 $ 69,199
Liabilities, convertible redeemable preferred stock and stockholders' equity (deficit)
Current liabilities
Accounts payable $
3,565 $
12,683
Accrued expenses 9,386 8,678
Current portion of note payable to bank - 2,436
Refundable exercise price for restricted stock - 24
Deferred revenue 33,562 14,741
Total current liabilities 46,513 38,562
Long-term deferred revenue 12,781 9,765
Note payable to bank, net of current portion - 4,099
Preferred stock warrant liability - 765
Total liabilities 59,294 53,191
Total convertible redeemable preferred stock - 97,131
Total stockholders' equity (deficit) 131,352 (81,123 )
Total liabilities, convertible redeemable preferred stock and stockholders' equity (deficit)
$ 190,646 $ 69,199
Netezza Corporation
Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)
(unaudited)
For the three months ended For the nine months ended
October 31 October 31
2007 2006 2007 2006
Revenue
Product $ 27,319 $ 19,359 $ 70,830 $ 42,637
Services 6,099 3,812 16,330 10,316
Total revenue 33,418 23,171 87,160 52,953
Cost of revenue
Product 11,355 8,127 29,231 17,738
Services 1,969 1,448 5,573 3,882
Total cost of revenue 13,324 9,575 34,804 21,620
Gross Profit 20,094 13,596 52,356 31,333
Operating Expenses
Sales and marketing 11,128 9,281 30,759 22,871
Research and development 5,682 4,667 16,738 13,214
General and administrative 2,661 1,135 6,394 3,234
Total operating expenses 19,471 15,083 53,891 39,319
Operating income (loss) 623 (1,487 ) (1,535 ) (7,986 )
Interest income 1,214 136 1,431 355
Interest expense 2 215 717 503
Other income, net 29 72 249 617
Income (loss) before income taxes $ 1,864 $ (1,494 ) $ (572 ) $ (7,517 )
Provision for income taxes 278 - 843 -
Net income (loss) $ 1,586 $ (1,494 ) $ (1,415 ) $ (7,517 )
Accretion to preferred stock - 1,483 2,853 4,448
Net income (loss) attributable to common stockholders $ 1,586 $ (2,977 ) $ (4,268 ) $ (11,965 )
Net income (loss) per common share:
Basic $ 0.03 $ (0.20 ) $ (0.16 ) $ (0.82 )
Diluted $ 0.02 $ (0.20 ) $ (0.16 ) $ (0.82 )
Shares used in per common share calculations:
Basic 57,434 14,690 26,419 14,538
Diluted 63,804 14,690 26,419 14,538
Netezza Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share amounts and percentages)
(unaudited)
For the three months ended October 31
For the nine months ended October 31
% Change for the three months ended October 31, 2007 as compared with the three months ended October 31, 2006
2007 2006 2007 2006
Non-GAAP financial measures and reconciliation:
GAAP cost of product revenue $ 11,355 $ 8,127 $ 29,231 $ 17,738
Non-cash stock-based compensation (1) 26 3 71 9
Non-GAAP cost of product revenue $ 11,329 $ 8,124 $ 29,160 $ 17,729
GAAP cost of service revenue $ 1,969 $ 1,448 $ 5,573 $ 3,882
Non-cash stock-based compensation (1) 31 6 84 10
Non-GAAP cost of service revenue $ 1,938 $ 1,442 $ 5,489 $ 3,872
GAAP gross profit $ 20,094 $ 13,596 $ 52,356 $ 31,333
Non-cash stock-based compensation (1) 57 9 155 19
Non-GAAP gross profit $ 20,151 $ 13,605 $ 52,511 $ 31,352
GAAP sales and marketing expenses $ 11,128 $ 9,281 $ 30,759 $ 22,871 20 %
Non-cash stock-based compensation (1) 362 63 868 132
Non-GAAP sales and marketing expenses $ 10,766 $ 9,218 $ 29,891 $ 22,739 17 %
GAAP research and development expenses $ 5,682 $ 4,667 $ 16,738 $ 13,214 22 %
Non-cash stock-based compensation (1) 332 34 657 86
Non-GAAP research and development expenses $ 5,350 $ 4,633 $ 16,081 $ 13,128 15 %
GAAP general and administrative expenses $ 2,661 $ 1,135 $ 6,394 $ 3,234 134 %
Non-cash stock-based compensation (1) 515 195 1,401 281
Non-GAAP general and administrative expenses $ 2,146 $ 940 $ 4,993 $ 2,953 128 %
GAAP operating expenses $ 19,471 $ 15,083 $ 53,891 $ 39,319 29 %
Non-cash stock-based compensation (1) 1,209 292 2,926 499
Non-GAAP operating expenses $ 18,262 $ 14,791 $ 50,965 $ 38,820 23 %
GAAP operating income (loss) $ 623 $ (1,487 ) $ (1,535 ) $ (7,986 )
Non-cash stock-based compensation (1) 1,266 301 3,081 518
Non-GAAP operating income (loss) $ 1,889 $ (1,186 ) $ 1,546 $ (7,468 )
GAAP net income (loss) attributable to common
stockholders $ 1,586 $ (2,977 ) $ (4,268 ) $ (11,965 )
Non-cash stock-based compensation (1) 1,266 301 3,081 518
Accretion to preferred stock (2) - 1,483 2,853 4,448
Non-GAAP net income (loss) attributable to common
stockholders $ 2,852 $ (1,193 ) $ 1,666 $ (6,999 )
GAAP net income (loss) per common share - basic $ 0.03 $ (0.20 ) $ (0.16 ) $ (0.82 )
Non-cash stock-based compensation (1) 0.02 0.02 0.12 0.03
Accretion to preferred stock (2) - 0.10 0.10 0.31
Non-GAAP net income (loss) per common share -basic $ 0.05 $ (0.08 ) $ 0.06 $ (0.48 )
GAAP net income (loss) per common share - diluted $ 0.02 $ (0.20 ) $ (0.16 ) $ (0.82 )
Non-cash stock-based compensation (1) 0.02 0.02 0.12 0.03
Accretion to preferred stock (2) - 0.10 0.10 0.31
Non-GAAP net income (loss) per common share - diluted $ 0.04 $ (0.08 ) $ 0.06 $ (0.48 )
Shares used in per common share calculations:
Basic 57,434 14,690 26,419 14,538
Diluted 63,804 14,690 26,419 14,538
Footnotes - Adjustments
(1) Represents non-cash compensation charges associated with stock options granted as follows:
For the three months ended For the nine months ended
October 31 October 31
2007 2006 2007 2006
Cost of product revenue $ 26 $ 3 $ 71 $ 9
Cost of services revenue 31 6 84 10
Sales and marketing 362 63 868 132
Research and development 332 34 657 86
General and administrative 515 195 1,401 281
Total non-cash stock-based compensation expense $ 1,266 $ 301 $ 3,081 $ 518
(2) Represents accretion of preferred stock dividends on Netezza's Series A through D convertible redeemable preferred stock prior to its conversion to common stock on July 24, 2007.
Contact:
Netezza Corporation
Investor Contact:
Patrick J. Scannell, Jr., +1-508-665-4623
Senior Vice President & Chief Financial Officer
[email protected]or
Media Contact:
Virginia Lux, +1-508-665-5794
Director of Marketing Communications
[email protected]--------------------------------------------------------------------------------------------------
http://stockcharts.com/h-sc/ui?s=NZ&p=D&b=5&g=0&id=p59191861522
Netezza Announces Fourth Quarter and Full Fiscal Year 2008 Financial Results
Thursday February 28, 8:00 am ET
Fourth Quarter Performance Driven by Revenue Increase of 48% over Prior Year
Fourth Quarter GAAP Diluted EPS Increases to $0.05
FRAMINGHAM, Mass.--(BUSINESS WIRE)--Netezza Corporation (NYSE Arca: NZ), the global leader in analytic appliances, today announced its financial results for the fourth quarter and fiscal year ended January 31, 2008.
ADVERTISEMENT
Jit Saxena, Netezza's Chairman and Chief Executive Officer, stated, "We are very pleased with our fourth quarter and our fiscal year 2008 results. Throughout the year we saw accelerating momentum in our business both from our current customers and with new customers. This momentum allows us to continue to invest in our product development and distribution channels to better address our customers' needs and the market opportunity in front of us."
Results for the Fourth Quarter of Fiscal Year 2008
Total revenue for the fourth quarter of fiscal 2008 increased 48% to $39.5 million compared with $26.7 million for the same period one year ago. GAAP net income attributable to common stockholders for the fourth quarter of fiscal 2008 was $3.4 million compared with a GAAP net loss attributable to common stockholders of $1.9 million for the same period one year ago. Non-GAAP net income attributable to common stockholders for the fourth quarter of fiscal 2008 was $4.6 million compared with a non-GAAP net loss attributable to common stockholders of $0.1 million for the same period one year ago. GAAP diluted net income per share for the fourth quarter of fiscal 2008 was $0.05 compared with a GAAP diluted net loss per share of $0.26 for the same period one year ago. Non-GAAP diluted net income per share for the fourth quarter of fiscal 2008 was $0.07 compared with a non-GAAP diluted net loss per share of $0.01 for the same period one year ago.
Results for Fiscal Year 2008
Total revenue for fiscal year 2008 increased 59% to $126.7 million compared with $79.6 million for fiscal year 2007. GAAP net loss attributable to common stockholders for fiscal year 2008 was $0.9 million compared with a GAAP net loss attributable to common stockholders of $13.9 million for fiscal year 2007. Non-GAAP net income attributable to common stockholders for fiscal year 2008 was $6.3 million compared with a non-GAAP net loss attributable to common stockholders of $7.1 million for fiscal year 2007. GAAP diluted net loss per share for fiscal year 2008 was $0.03 compared with a GAAP diluted net loss per share of $1.90 for fiscal year 2007. Non-GAAP diluted net income per share for fiscal year 2008 was $0.18 compared with a non-GAAP diluted net loss per share of $0.97 for fiscal year 2007.
Non-GAAP net income (loss) attributable to common stockholders, non-GAAP diluted net income per share and non-GAAP operating income exclude non-cash stock based compensation and, where applicable, accretion of preferred stock dividends. A reconciliation of GAAP to non-GAAP results has been provided in the financial statements included in this press release. An explanation of these measures is also included below under the heading "Use of Non-GAAP Financial Measures."
At January 31, 2008, total cash and marketable securities were $137.1 million, compared with $5.0 million at January 31, 2007. Netezza's initial public offering in July 2007 raised proceeds of $113.0 million, net of expenses. The company had no outstanding debt at January 31, 2008, compared with $6.5 million at January 31, 2007.
Financial Guidance:
"We are extremely pleased with our fourth quarter and fiscal year 2008 financial results, which demonstrated continued momentum across all dimensions of our business," said Patrick Scannell, Senior Vice President and Chief Financial Officer of Netezza. "For fiscal year 2008, we recorded non-GAAP operating income of 4% and GAAP operating income was approximately break-even. Based upon our traction in the marketplace, we are raising our fiscal year 2009 revenue guidance from $160 million to $165 - $168 million. As we continue to accelerate top line revenue growth, while aggressively investing in all disciplines across our business to support this growth, for fiscal year 2009, we are targeting non-GAAP operating income of 7-9% and GAAP operating income of 1-2%."
Use of Non-GAAP Financial Measures:
To supplement Netezza's unaudited condensed consolidated financial statements presented in accordance with GAAP, Netezza is presenting certain non-GAAP measures of financial performance. Netezza believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding Netezza's performance by excluding certain non-cash items that may not be indicative of Netezza's core business or future outlook. The presentation of these non-GAAP measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Netezza's results of operations as determined in accordance with GAAP.
The non-GAAP financial measures presented by Netezza exclude non-cash stock-based compensation and, where applicable, accretion of preferred stock dividends. Because of the varying valuation methodologies and assumptions that companies use under FAS123R, Netezza's management believes that excluding non-cash stock-based compensation allows investors to analyze Netezza's recurring business over multiple periods and provide more meaningful comparison with other companies. Upon the closing of Netezza's public offering, accretion of preferred dividends was no longer applicable due to the conversion of preferred stock to common stock, and is therefore excluded to aid in comparing current and future operating results with those of past periods. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures provided in the financial statements included in this press release.
Fourth Quarter Conference Call:
Netezza will host a conference call and webcast at 8:30 AM Eastern Time (5:30 AM Pacific Time) on February 28, 2008 to discuss its fourth quarter and full fiscal year 2008 results and business outlook.
The conference call can be accessed by dialing +1 866 356-3095 for participants in the United States and by dialing +1 617 597-5391 for participants outside the United States. The passcode for the conference call is 19087295. A telephonic replay of the conference call will also be available two hours after the call and will run for two weeks. The replay can be accessed by dialing +1 888 286-8010 for participants in the United States and by dialing +1 617 801-6888 for participants outside the United States. The passcode for the replay is 73192491.
The webcast will be accessible from the "Investor Relations" section of Netezza's website (http://www.netezza.com). The webcast will be archived on Netezza's website for a period of one year.
About Netezza Corporation:
Netezza is the global leader in analytic appliances that dramatically simplify high-performance analytics for business users across the extended enterprise, delivering significant competitive and operational advantage in today's information-intensive marketplaces. The Netezza Performance Server® (NPS®) family of streaming analytic™ appliances brings appliance simplicity to a broad range of complex data warehouse and analytic challenges. Based in Framingham, Mass., Netezza has offices in Washington, DC, the United Kingdom and Asia Pacific. For more information about Netezza, please visit www.netezza.com.
For Netezza Investors:
The statements set forth above include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements relate to Netezza's future financial performance and Netezza's business prospects. These statements involve risk and uncertainties, including: market demand for our products; our limited operating history and history of losses; quarterly fluctuation of our business; our ability to attract and retain key personnel; competition in the data warehouse market; our dependence on certain key customers; our ability to protect our patents and intellectual property; our ability to defend against third party infringement claims, other litigation and contingent liabilities; and risks relating to operating internationally. For a further list and description of risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements in this release, we refer you to the "Risk Factors" section of Netezza's Quarterly Report on Form 10-Q for the quarter ended October 31, 2007, which is on file with the SEC and is available in the investor relations section of Netezza's website at http://www.netezza.com and on the SEC website at http://www.sec.gov. In addition, the forward-looking statements included in this press release represent our views as of February 28, 2008. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to February 28, 2008.
Netezza Corporation
Condensed Consolidated Balance Sheets
(in thousands)
January 31, January 31,
2008 2007
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 46,184 $ 5,018
Short term marketable securities 90,924 -
Accounts receivable 19,999 31,834
Inventory 31,611 26,239
Restricted cash 379 -
Other current assets 4,038 1,370
Total current assets 193,135 64,461
Property and equipment, net 5,467 4,228
Restricted cash - 379
Other long-term assets 150 131
Total assets $ 198,752 $ 69,199
Liabilities, convertible redeemable preferred stock and stockholders' equity (deficit)
Current liabilities
Accounts payable 5,533 12,683
Accrued expenses 5,494 4,290
Accrued compensation and benefits 5,244 4,388
Current portion of note payable to bank - 2,436
Refundable exercise price for restricted stock - 24
Deferred revenue 30,588 14,741
Total current liabilities 46,859 38,562
Long-term deferred revenue 15,418 9,765
Note payable to bank, net of current portion - 4,099
Preferred stock warrant liability - 765
Total liabilities 62,277 53,191
Total convertible redeemable preferred stock - 97,131
Total stockholders' equity (deficit) 136,475 (81,123 )
Total liabilities, convertible redeemable preferred stock and stockholders' equity (deficit)
$ 198,752 $ 69,199
Netezza Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
For the three months ended For the twelve months ended
January 31 January 31
2008 2007 2008 2007
Revenue
Product $ 32,164 $ 21,995 $ 102,994 $ 64,632
Services 7,362 4,673 23,692 14,989
Total revenue 39,526 26,668 126,686 79,621
Cost of revenue
Product 13,296 8,959 42,527 26,697
Services 2,143 1,521 7,716 5,403
Total cost of revenue 15,439 10,480 50,243 32,100
Gross Profit 24,087 16,188 76,443 47,521
Operating Expenses
Sales and marketing 12,451 10,039 43,210 32,908
Research and development 7,142 4,823 23,880 18,037
General and administrative 2,556 1,591 8,950 4,827
Total operating expenses 22,149 16,453 76,040 55,772
Operating income (loss) 1,938 (265 ) 403 (8,251 )
Interest income 1,540 59 2,971 414
Interest expense - 261 717 765
Other income, net 49 10 298 627
Income (loss) before income taxes $ 3,527 $ (457 ) $ 2,955 $ (7,975 )
Provision for income taxes 118 - 961 -
Net income (loss) $ 3,409 $ (457 ) $ 1,994 $ (7,975 )
Accretion to preferred stock - 1,483 2,853 5,931
Net income (loss) attributable to common stockholders $ 3,409 $ (1,940 ) $ (859 ) $ (13,906 )
Net income (loss) per common share:
Basic $ 0.06 $ (0.26 ) $ (0.03 ) $ (1.90 )
Diluted $ 0.05 $ (0.26 ) $ (0.03 ) $ (1.90 )
Shares used in per common share calculations:
Basic 57,505 7,469 33,989 7,319
Diluted 63,484 7,469 33,989 7,319
Netezza Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share amounts and percentages)
(unaudited)
For the three months ended % Change for For the twelve months ended % Change for
January 31 three months January 31 twelve months
2008 2007 (1) 2008 2007 (2)
Non-GAAP financial measures and reconciliation:
GAAP cost of product revenue $ 13,296 $ 8,959 $ 42,527 $ 26,697
Non-cash stock-based compensation (3) 23 3 94 12
Non-GAAP cost of product revenue $ 13,273 $ 8,956 $ 42,433 $ 26,685
GAAP cost of services revenue $ 2,143 $ 1,521 $ 7,716 $ 5,403
Non-cash stock-based compensation (3) 32 9 116 19
Non-GAAP cost of services revenue $ 2,111 $ 1,512 $ 7,600 $ 5,384
GAAP gross profit $ 24,087 $ 16,188 $ 76,443 $ 47,521
Non-cash stock-based compensation (3) 55 12 210 31
Non-GAAP gross profit $ 24,142 $ 16,200 $ 76,653 $ 47,552
GAAP sales and marketing expenses $ 12,451 $ 10,039 24 % $ 43,210 $ 32,908 31 %
Non-cash stock-based compensation (3) 354
75 1,222 207
Non-GAAP sales and marketing expenses $ 12,097 $ 9,964 21 % $ 41,988 $ 32,701 28 %
GAAP research and development expenses $ 7,142 $ 4,823 48 % $ 23,880 $ 18,037 32 %
Non-cash stock-based compensation (3) 350
74 1,007
160
Non-GAAP research and development expenses $ 6,792
$ 4,749 43 % $ 22,873
$ 17,877 28 %
GAAP general and administrative expenses $ 2,556 $ 1,591 61 % $ 8,950 $ 4,827 85 %
Non-cash stock-based compensation (3) 431 198 1,832 479
Non-GAAP general and administrative expenses $ 2,125 $ 1,393 53 % $ 7,118 $ 4,348 64 %
GAAP operating expenses $ 22,149 $ 16,453 35 % $ 76,040 $ 55,772 36 %
Non-cash stock-based compensation (3) 1,135
347 4,061
846
Non-GAAP operating expenses $ 21,014
$ 16,106 30 % $ 71,979
$ 54,926 31 %
GAAP operating income (loss) $ 1,938 $ (265 ) $ 403 $ (8,251 )
Non-cash stock-based compensation (3) 1,190
359 4,271
877
Non-GAAP operating income (loss) $ 3,128
$ 94 $ 4,674
$ (7,374 )
GAAP net income (loss) attributable to common stockholders
$ 3,409 $ (1,940 ) $ (859 ) $ (13,906 )
Non-cash stock-based compensation (3) 1,190
359 4,271
877
Accretion to preferred stock (4) - 1,483 2,853 5,931
Non-GAAP net income (loss) attributable to common stockholders
$ 4,599
$ (98 ) $ 6,265
$ (7,098 )
GAAP net income (loss) per common share - basic $ 0.06 $ (0.26 ) $ (0.03 ) $ (1.90 )
Non-cash stock-based compensation (3) 0.02 0.05 0.13 0.12
Accretion to preferred stock (4) - 0.20 0.08 0.81
Non-GAAP net income (loss) per common share - basic
$ 0.08 $ (0.01 ) $ 0.18 $ (0.97 )
GAAP net income (loss) per common share - diluted $ 0.05 $ (0.26 ) $ (0.03 ) $ (1.90 )
Non-cash stock-based compensation (3) 0.02 0.05 0.13 0.12
Accretion to preferred stock (4) - 0.20 0.08 0.81
Non-GAAP net income (loss) per common share - diluted $ 0.07 $ (0.01 ) $ 0.18 $ (0.97 )
Shares used in per common share calculations:
Basic 57,505 7,469 33,989 7,319
Diluted 63,484 7,469 33,989 7,319
Notes:
(1) Percentage change for the three months ended January 31, 2008 as compared with the three months ended January 31, 2007.
(2) Percentage change for the twelve months ended January 31, 2008 as compared with the twelve months ended January 31, 2007.
Footnotes - Adjustments:
(3) Represents non-cash compensation charges associated with stock options granted as follows:
For the three months ended For the twelve months ended
January 31 January 31
2008 2007 2008 2007
Cost of product revenue $ 23 $ 3 $ 94 $ 12
Cost of services revenue 32 9 116 19
Sales and marketing 354 75 1,222 207
Research and development 350
74 1,007
160
General and administrative 431 198 1,832 479
Total non-cash stock-based compensation expense $ 1,190
$ 359 $ 4,271
$ 877
(4) Represents accretion of preferred stock dividends on Netezza's Series A through D convertible redeemable preferred stock prior to its conversion to common stock on July 24, 2007.
-------------------------------------------------------------------------