SANTA CLARA, Calif.,
Jan. 17, 2017 /PRNewswire/
-- Gigamon (NYSE: GIMO), the industry leader in traffic
visibility solutions, today announced preliminary results for the
fourth quarter and fiscal year ended December 31, 2016.
Gigamon currently expects:
Fiscal Fourth Quarter 2016 Preliminary Results
- Revenue of $84.5 million to $85.0
million, compared to the company's prior guidance of
$91 million to $93 million.
- GAAP gross margin between 83 percent and 84 percent.
- Non-GAAP gross margin between 83 percent and 84 percent,
compared to the company's prior guidance of 82 percent to 83
percent.
- GAAP earnings per share of $0.18 to
$0.20.
- Non-GAAP earnings per share of $0.35 to
$0.37 compared to the company's prior guidance of
$0.36 to $0.38.
Fiscal Year 2016 Preliminary Results
- Revenue of $310.3 million to $310.8
million, an increase of approximately 40 percent
year-over-year.
- GAAP gross margin between 81 percent and 82 percent, at the
fourth quarter midpoint an approximate 280 basis point improvement
year-over-year.
- Non-GAAP gross margin between 82 percent and 83 percent, at the
fourth quarter midpoint an approximate 250 basis point improvement
year-over-year.
- GAAP operating margin between 9 percent and 10 percent, at the
fourth quarter midpoint an approximate 440 basis point expansion
year-over-year.
- Non-GAAP operating margin between 22 percent and 23 percent, at
the fourth quarter midpoint an approximate 340 basis point
expansion year-over-year.
- GAAP earnings per share of $1.32 to
$1.34, at the fourth quarter midpoint an approximate 680
percent year-over-year increase.
- Non-GAAP earnings per share of $1.22 to
$1.25, at the fourth quarter midpoint an approximate 50
percent year-over-year increase.
"We are disappointed our fourth quarter revenue was below our
prior guidance, but we are pleased with our overall financial
performance in 2016, our second consecutive year of 40 percent
year-over-year revenue growth," said Paul
Hooper, CEO of Gigamon. "Fourth quarter revenue fell
short primarily due to lower than expected product bookings in our
North America West region, as several significant existing customer
accounts deferred purchasing decisions into 2017.
"Our business remains fundamentally strong with our performance
in 2016 demonstrating that we continue to capture market share with
our leading technology, solutions and partnerships. Specifically,
in the fourth quarter we saw:
- A record 126 new customer accounts.
- The successful launch of our smaller form-factor new
GigaVUE-HC1 product, specifically designed to create opportunities
with new customers. In the quarter, 30 percent of the customers for
the HC1 were new Gigamon accounts.
- A strong quarter in EMEA, soon followed by the addition of
Gerard Allison, a new leader we
expect will drive stronger Gigamon performance in the region.
- The signing of our first Fortune 1000 customer for the Amazon
Web Services solution we launched in November.
"Looking ahead to 2017, we are convinced this is an exciting
market and we remain focused on the delivery of innovative products
for the enterprise, service provider and federal markets. We will
continue to invest in sales, marketing and research and development
to capitalize on our opportunities in security, mobility and the
cloud," Mr. Hooper said.
These preliminary, unaudited results are based on management's
initial review of operations for the quarter and fiscal year ended
December 31, 2016, and remain subject
to completion of the company's customary closing procedures.
Fourth Quarter and Full Year 2016 Financial Results Conference
Call Scheduled for February 2,
2017
Gigamon also announced today it will issue a press release
reporting financial results for the fourth quarter and fiscal year
ended December 31, 2016 after the
close of market on February 2,
2017. Gigamon will host a conference call and live
webcast at 2:00 p.m. Pacific Time
(5:00 p.m. Eastern Time) on
February 2, 2017. Parties
in the United States and Canada can access the
call by dialing +1 (888)-455-2311, using conference code 6714156.
International parties can access the call by dialing +1
(719)-325-2159, using conference code 6714156. The webcast will be
accessible on Gigamon's investor relations website
at http://investor.gigamon.com for one year. A
telephonic replay of the conference call will be available
through Thursday, February 9, 2017. To access the replay,
parties in the United States and Canada should
call +1 (866)-375-1919 and enter conference code
6714156. International parties should call +1 (719)-457-0820
and enter conference code 6714156.
Non-GAAP Financial Measures
Gigamon reports all financial information required in accordance
with U.S. generally accepted accounting principles (GAAP). To
supplement the Gigamon unaudited condensed consolidated financial
statements presented in accordance with GAAP, Gigamon uses certain
non-GAAP measures of financial performance. The presentation of
these non-GAAP financial 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 financial measures used by
other companies. In addition, these non-GAAP measures have
limitations in that they do not reflect all the amounts associated
with the results of Gigamon operations as determined in accordance
with GAAP. The non-GAAP financial measures used by Gigamon include
historical non-GAAP net income, non-GAAP gross margin, non-GAAP
operating margin, and non-GAAP earnings per share. These non-GAAP
financial measures exclude stock-based compensation and related
payroll taxes, income tax effect of stock-based compensation
expense, and a valuation allowance against deferred tax assets from
the Gigamon unaudited condensed consolidated statement of
operations.
Gigamon believes these non-GAAP financial measures provide
meaningful supplemental information regarding its performance by
excluding certain items that may not be indicative of the company's
core business, operating results or future outlook. Gigamon
management uses, and believes that investors benefit from referring
to, these non-GAAP financial measures in assessing Gigamon's
operating results, as well as when planning, forecasting and
analyzing future periods. These non-GAAP financial measures also
facilitate comparisons of the performance of Gigamon to prior
periods.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements generally relate to future events or our future
financial or operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
"may," "will," "should," "expects," "plans," "anticipates,"
"could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential" or "continue" or
the negative of these words or other similar terms or expressions
that concern our expectations, strategy, plans or intentions.
Forward-looking statements in this press release include, but are
not limited to, our preliminary results for the fourth quarter and
fiscal 2016, our expectations of a stronger Gigamon
performance in EMEA, our expectations regarding the evolution
of our market in 2017 and our expectations regarding continued
investment in sales, marketing and research and development during
the year. Our expectations and beliefs regarding these matters may
not materialize, and actual results in future periods are subject
to risks and uncertainties that could cause actual results to
differ materially from those projected. Our preliminary, unaudited
results are based on management's initial review of operations for
the quarter and fiscal year ended December
31, 2016, and remain subject to completion of the company's
customary closing and review procedures. Additional risks
include our ability to continue to deliver and improve our products
and successfully develop new products; customer acceptance and
purchase of our existing products and new products; our ability to
retain existing customers and generate new customers; the market
for network traffic visibility solutions not continuing to develop;
competition from other products and services; and general market,
political, economic and business conditions. The
forward-looking statements contained in this press release are also
subject to other risks and uncertainties, including those more
fully described in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the period ended December 26, 2015 and our most recently
available Quarterly Report on Form 10-Q. The forward-looking
statements in this press release are based on information available
to Gigamon as of the date hereof,
and Gigamon disclaims any obligation to update any
forward-looking statements, except as required by law.
Gigamon
Gigamon (NYSE: GIMO) provides active visibility into
data-in-motion network traffic, enabling stronger security and
superior performance. Gigamon's Visibility Fabric™ and GigaSECURE®,
the industry's first Security Delivery Platform, deliver advanced
intelligence so that security, network and application performance
management solutions in enterprise, government and service provider
networks operate more efficiently and effectively. See more at
www.gigamon.com, the Gigamon Blog, or follow Gigamon on Twitter,
LinkedIn or Facebook.
|
Three Months Ended
|
|
December 31,
2016
|
December 26,
2015
|
|
GAAP
(1)
|
Adjustments(2) (3)
|
Non-GAAP
(1)
|
GAAP
|
Adjustments
(2) (3)
|
Non-GAAP
|
|
(in
millions)
|
Gross
profit
|
$70.4
|
$0.4
|
$70.8
|
$55.1
|
$0.3
|
$55.4
|
Operating
Income
|
10.5
|
10.0
|
20.5
|
8.0
|
6.1
|
14.1
|
Net income
|
$7.3
|
$6.7
|
$14.0
|
$2.6
|
$8.0
|
$10.6
|
Net income per
share:
|
|
|
|
|
|
|
Basic
|
$0.20
|
$0.19
|
$0.39
|
$0.07
|
$0.24
|
$0.31
|
Diluted
|
$0.19
|
$0.17
|
$0.36
|
$0.07
|
$0.22
|
$0.29
|
Weighted-average
number of shares used in per share amounts:
|
|
|
|
|
|
|
Basic
|
36,257
|
—
|
36,257
|
34,252
|
—
|
34,252
|
Diluted
|
38,444
|
379
|
38,823
|
36,229
|
330
|
36,559
|
|
|
1.
|
For presentation
purposes, the numbers for the three months and fiscal year ended
December 31, 2016 are derived from the midpoints of
the ranges provided in the body of this press
release.
|
2.
|
Includes stock-based
compensation expense and related payroll taxes in the three and
twelve months ended December 31, 2016 and December 26,
2015.
|
3.
|
Includes income tax
effect of non-GAAP adjustments in the three and twelve months ended
December 31, 2016 and December 26, 2015.
|
|
Fiscal Year
Ended
|
|
December 31,
2016
|
December 26,
2015
|
|
GAAP
(1)
|
Adjustments
(2) (3) (4)
|
Non-GAAP
(1)
|
GAAP
|
Adjustments
(2) (3)
|
Non-GAAP
|
|
(in
millions)
|
Gross
profit
|
$255.3
|
$1.9
|
$257.2
|
$176.2
|
$1.9
|
$178.1
|
Operating
income
|
29.9
|
39.9
|
69.8
|
11.6
|
30.7
|
42.3
|
Net income
|
$50.3
|
-$2.6
|
$47.7
|
$6.2
|
$22.8
|
$29.0
|
Net income per
share:
|
|
|
|
|
|
|
Basic
|
$1.42
|
-$0.07
|
$1.35
|
$0.18
|
$0.68
|
$0.86
|
Diluted
|
$1.34
|
-$0.09
|
$1.25
|
$0.17
|
$0.63
|
$0.80
|
Weighted-average
number of shares used in per share amounts:
|
|
|
|
|
|
|
Basic
|
35,431
|
—
|
35,431
|
33,618
|
—
|
33,618
|
Diluted
|
37,643
|
541
|
38,184
|
35,866
|
491
|
36,357
|
|
|
1.
|
For presentation
purposes, the numbers for the three months and fiscal year ended
December 31, 2016 are derived from the midpoints of
the ranges provided in the body of this press
release.
|
2.
|
Includes stock-based
compensation expense and related payroll taxes in the three and
twelve months ended December 31, 2016 and December 26,
2015.
|
3.
|
Includes income tax
effect of non-GAAP adjustments in the three and twelve months ended
December 31, 2016 and December 26, 2015.
|
4
|
Amount for the twelve
months ended December 31, 2016 includes a benefit for the release
of a significant portion of our valuation allowance against
deferred tax assets.
|
INVESTOR
CONTACT:
|
MEDIA
CONTACT:
|
Jennifer
Gianola
|
Judy
Kaneko
|
+1 (408)
831-4452
|
+1 (408)
831-4238
|
jennifer.gianola@gigamon.com
|
judy.kaneko@gigamon.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gigamon-announces-preliminary-fourth-quarter-and-fiscal-year-2016-results-300391992.html
SOURCE Gigamon