Casa Systems, Inc. (Nasdaq:CASA), a leading provider of converged
broadband infrastructure technology solutions for mobile, cable and
fixed networks, today announced its financial results for the
fourth quarter and year ended December 31, 2018.
Fourth Quarter 2018 Financial
Highlights
- Revenue of $67.8 million
- Gross margin of 73.2%
- GAAP net income of $14.9 million
- Non-GAAP net income of $17.3 million
- GAAP net income per fully diluted share of $0.17
- Non-GAAP net income per fully diluted share of $0.20
- Adjusted EBITDA of $21.6 million
2018 Financial Highlights
- Revenue of $297.1 million
- Gross margin of 73.4%
- GAAP net income of $73.0 million
- Non-GAAP net income of $81.5 million
- GAAP net income per fully diluted share of $0.79
- Non-GAAP net income per fully diluted share of $0.88
- Adjusted EBITDA of $98.1 million
“Our fourth quarter results were impacted by lower than expected
spending by a few MSO customers, particularly with respect to
hardware, which led to lower than expected hardware volumes. We
also experienced wireless product certification delays, which
affected the timing of our wireless revenue recognition,” said
Jerry Guo, Casa’s President and CEO. “While we are disappointed
with our financial performance, we are encouraged by several
positive developments in our business in the quarter that included
a high percentage of software sales in our revenue mix, a material
DAA deal representing 17% of our revenue, an expanded footprint in
wireless, and lower customer concentration. Looking out to 2019,
wireless will be a key focus for our business. To ensure that we
remain at the cutting edge of wireless with innovative and
differentiated products, we intend to accelerate our investment in
this area both organically and through opportunistic complementary
acquisitions, such as the NetComm Wireless transaction we announced
today. As network transformation continues and service provider
investments in 5G and DAA begin to ramp, we remain confident in the
strategic direction of the company. We believe that Casa’s
converged solutions for broadband networks position the company to
benefit from these material technology inflection points.”
Maurizio Nicolelli, Casa’s CFO added, “While our cable customers
continue to digest recent hardware purchases and expansions, we see
ongoing software-based capacity expansions, which accounted for 57%
of product revenue during the fourth quarter and contributed to a
healthy 73.2% GAAP gross margin. As we move into 2019, our
guidance reflects both the digestion we see in our cable business
and the investment that we believe will enable us to capitalize on
the significant wireless opportunity ahead of us.”
To supplement our financial results presented in accordance with
Generally Accepted Accounting Principles (GAAP), we are presenting
non-GAAP financial measures in this press release. A reconciliation
of GAAP to non-GAAP measures has been provided in the financial
statement tables included in this press release. An explanation of
these measures is also included below under the heading “Non-GAAP
Financial Measures”.
Financial Outlook
For the fiscal year 2019, we expect:
- Revenue between $250 million and $300 million
- Gross Margin in a range of 65% and 70%
- Adjusted EBITDA between $50 million and $60 million
- Effective income tax rate between 0% and 10%
- GAAP diluted net income per share between $0.20 and $0.30 and
Non-GAAP diluted net income per share between $0.30 and $0.40
Guidance above for fiscal 2019 does not include results from the
expected acquisition of NetComm Wireless.
Guidance for non-GAAP financial measures excludes stock-based
compensation, which is a non-cash charge, and the resulting tax
effect of these excluded items. We have not reconciled the non-GAAP
metrics as to which we provide guidance to their most directly
comparable GAAP metrics because certain items that impact these
excluded measures are uncertain, out of our control and/or cannot
be reasonably calculated or predicted at this time. Accordingly, a
reconciliation of the non-GAAP financial metrics included in our
guidance to the corresponding GAAP measures is not available
without unreasonable effort.
Stock Repurchase Program
Casa Systems announced today that its board of directors has
authorized the repurchase of up to $75 million of the Company’s
common stock under a stock repurchase program. The Company’s
management will determine the amount and timing of repurchases
under the program based on its evaluation of market conditions,
stock price and other factors. Repurchases may also be made under a
Rule 10b5-1 plan, which would permit the Company to repurchase
shares when it would otherwise be precluded from doing so under
insider trading laws. The repurchase program may be superseded or
discontinued at any time and has no expiration date.
Conference Call Information
Casa Systems is hosting a conference call for analysts and
investors to discuss the financial results for its fourth quarter
ended and year ended December 31, 2018, and its business
outlook at 5:00 p.m. Eastern Standard Time today, February 21,
2019. The conference call can be heard via webcast in the investor
relations section of our website at
http://investors.casa-systems.com, or by dialing 877-407-4019 in
the United States or 201-689-8337 from international locations.
Callers should ask to be joined to the Casa Systems call. Shortly
after the conclusion of the conference call, a replay of the audio
webcast will be available in the investor relations section of our
website at http://investors.casa-systems.com for 90 days after the
event.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact
contained in this press release, including statements regarding the
projected results of operations and financial position of Casa
Systems, Inc. (“Casa” or the “Company”), including financial
targets, business strategy, and plans and objectives for future
operations, are forward-looking statements. The words “anticipate”,
“believe”, “continue”, “could”, “estimate”, “expect”, “intend”,
“may”, “plan”, “potential”, “predict”, “project”, “target”,
“should”, “would”, and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. We have based these
forward-looking statements on our estimates and assumptions of our
financial results and our current expectations and projections
about future events and financial trends that we believe may affect
our financial condition, results of operations, business strategy,
short-term and long-term business operations and objectives and
financial needs as of the date of this press release. A number of
important risk factors could cause actual results to differ
materially from the results described, implied or projected in
these forward-looking statements. These factors include, without
limitation: (1) any failure by us to successfully anticipate
technological shifts, market needs and opportunities, and develop
new products and product enhancements that meet those technological
shifts, needs and opportunities; (2) the concentration of a
substantial portion of our revenue in our CCAP solutions and in
certain customers; (3) fluctuations in our revenue due to timing of
large orders and seasonality; (4) the length and lack of
predictability of our sales cycle; (5) any difficulties we may face
in expanding our platform into the wireless market; and (6) other
factors discussed in the “Risk Factors” section of our public
reports filed with the SEC, including our most recent Quarterly
Report on Form 10-Q, which is on file with the SEC and available in
the investor relations section of our website at
http://investors.casa-systems.com and on the SEC’s website at
www.sec.gov. In addition, we operate in a very competitive and
rapidly changing environment. New risks emerge from time to time.
It is not possible for our management to predict all risks, nor can
we assess the impact of all factors on our business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements that we may make. In light of these
risks, uncertainties and assumptions, the forward-looking events
and circumstances discussed in this press release are inherently
uncertain and may not occur, and actual results could differ
materially and adversely from those anticipated or implied in the
forward-looking statements. Accordingly, you should not rely upon
forward-looking statements as predictions of future events. We
disclaim any obligation to update publicly or revise any
forward-looking statements for any reason after the date of this
press release. Any reference to our website address in this press
release is intended to be an inactive textual reference only and
not an active hyperlink.
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
Generally Accepted Accounting Principles (GAAP), we are presenting
the following non-GAAP financial measures in this press release and
the related earnings conference call: non-GAAP net income,
non-GAAP diluted net income per share, adjusted EBITDA and free
cash flow. These non-GAAP financial measures are not based on any
standardized methodology prescribed by GAAP and are not necessarily
comparable to similarly titled measures presented by other
companies.
Non-GAAP net income and non-GAAP diluted net income per
share. We define non-GAAP net income as net income as
reported in our consolidated statements of operations, excluding
the impact of stock-based compensation expense, which is a non-cash
charge, the follow-on public offering expenses, which is a one-time
non-recurring charge, and the tax effect on these excluded items,
and excluding the impact of the U.S. Tax Cuts and Jobs Act of 2017,
which is a one-time non-recurring charge, and the actual tax charge
for this excluded item. The tax effect of the excluded items is
calculated using our effective income tax rate for the period,
excluding the discrete tax benefits generated from the exercise of
non-qualified stock options and the disqualifying disposition of
incentive stock options. We believe that excluding these discrete
tax benefits from our effective income tax rate results in more
useful disclosure to investors and others regarding income tax
effects of the excluded items as these amounts may vary from period
to period independent of the operating performance of our business.
We define non-GAAP diluted net income per share as diluted net
income per share attributable to common stockholders reported in
our consolidated statements of operations, excluding the impact of
cumulative dividends on convertible preferred stock, which are no
longer applicable following the conversion to common stock of all
of our outstanding preferred stock in December 2017 in connection
with our initial public offering, excluding the impact of dividends
declared on convertible preferred stock, as we do not intend to
declare any dividends for the foreseeable future, and excluding the
impact of items that we exclude in calculating non-GAAP net income.
For periods in which convertible preferred stock was excluded from
GAAP diluted net income per share attributable to common
stockholders, we calculate non-GAAP diluted net income per share
using a non-GAAP weighted-average share count in which the impact
of dilutive convertible preferred stock is added to the GAAP
weighted-average share count. We have presented non-GAAP net income
and non-GAAP diluted net income per share because they are key
measures used by our management and board of directors to
understand and evaluate our operating performance, to establish
budgets and to develop operational goals for managing our business.
The presentation of non-GAAP net income and non-GAAP diluted net
income per share also allows our management and board of directors
to make additional comparisons of our results of operations to
other companies in our industry.
Adjusted EBITDA. We define adjusted EBITDA as
our net income, excluding the impact of stock-based compensation
expense; the follow-on public offering expenses; other income
(expense), net; depreciation and amortization expense; and our
provision for (benefit from) income taxes. We have presented
adjusted EBITDA because it is a key measure used by our management
and board of directors to understand and evaluate our operating
performance, to establish budgets and to develop operational goals
for managing our business. In particular, we believe that excluding
the impact of these expenses in calculating adjusted EBITDA can
provide a useful measure for period-to-period comparisons of our
core operating performance.
Free cash flow. We define free cash flow as net
cash provided by operating activities minus capital expenditures.
We believe free cash flow to be a liquidity measure that provides
useful information to management and investors about the amount of
cash generated by our business that, after purchases of property
and equipment, can be used for strategic opportunities, including
investing in our business, making strategic acquisitions and
strengthening our balance sheet.
We use these non-GAAP financial measures to evaluate our
operating performance and trends and make planning decisions. We
believe that each of these non-GAAP financial measures helps
identify underlying trends in our business that could otherwise be
masked by the effect of the expenses that we exclude in the
calculations of each non-GAAP financial measure. Accordingly, we
believe that these financial measures provide useful information to
investors and others in understanding and evaluating our operating
results, enhancing the overall understanding of our past
performance and future
prospects. Our
non-GAAP financial measures are not prepared in accordance with
GAAP, and should not be considered in isolation of, or as an
alternative to, measures prepared in accordance with GAAP. There
are a number of limitations related to the use of these non-GAAP
financial measures rather than the most directly comparable
financial measures calculated and presented in accordance with
GAAP. Some of these limitations
are:
- we exclude stock-based compensation expense from each of
non-GAAP net income, non-GAAP diluted net income per share and
adjusted EBITDA as it has recently been, and will continue to be
for the foreseeable future, a significant recurring non-cash
expense for our business and an important part of our compensation
strategy;
- we exclude the impact of the U.S. Tax Cuts and Jobs Act of 2017
from non-GAAP net income and non-GAAP diluted net income per share,
although it represents a significant cash expense, because it is a
one-time non-recurring charge;
- we exclude the discrete tax benefits generated from the
exercise of non-qualified stock options and the disqualifying
disposition of incentive stock options, which are not related to
the operating performance of our business, in calculating the
effective tax rate used to determine the tax effect of the items
excluded from our non-GAAP net income and non-GAAP diluted net
income per share; these discrete tax benefits will result in a
reduction in our income taxes and cash paid for income
taxes;
- we exclude the follow-on public offering expenses from non-GAAP
net income, non-GAAP diluted net income per share and adjusted
EBITDA because it is a one-time non-recurring charge, although this
is a use of our cash and included in our operating
expenses;
- adjusted EBITDA excludes depreciation and amortization expense
and, although this is a non-cash expense, the assets being
depreciated and amortized may have to be replaced in the
future;
- adjusted EBITDA does not reflect the cash requirements
necessary to service interest on our debt or the cash received from
our interest-bearing financial assets, both of which impact the
cash available to us, and does not reflect foreign currency
transaction gains and losses, all of which are reflected in other
income (expense), net;
- adjusted EBITDA does not reflect income tax payments that
reduce cash available to us;
- free cash flow may not represent our residual cash flow
available for discretionary expenditures, since we may have other
non-discretionary expenditures that are not deducted from this
measure;
- free cash flow may not represent the total increase or decrease
in the cash and cash equivalents for any given period because it
excludes cash provided by or used for other investing and financing
activities; and
- other companies, including companies in our industry, may not
use non-GAAP net income, non-GAAP diluted net income per share,
adjusted EBITDA or free cash flow, or may calculate such non-GAAP
financial measures in a different manner than we do, or may use
other non-GAAP financial measures to evaluate their performance,
all of which could reduce the usefulness of these non-GAAP
financial measures as comparative measures.
For the reconciliations of these non-GAAP financial measures to
the most directly comparable GAAP financial measures, please see
the section of the accompanying tables titled, “Reconciliation of
Selected GAAP and Non-GAAP Financial Measures”.
About Casa Systems, Inc.
Casa Systems, Inc. (Nasdaq: CASA) delivers converged broadband
solutions that enable mobile, cable and fixed network service
providers to meet the growing demand for gigabit bandwidth and
services. Our suite of distributed and virtualized solutions for
fixed and mobile 5G ultra-broadband networks are engineered for
performance, flexibility and scale. Commercially deployed in over
70 countries, Casa serves more than 475 Tier 1 and regional service
providers worldwide.
For more information, visit our website at
http://www.casa-systems.com.
Source: Casa Systems, Inc.
IR ContactMonica Gould
212-871-3927investorrelations@casa-systems.com Lindsay Savarese
212-331-8417investorrelations@casa-systems.com
CASA SYSTEMS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(unaudited)(in thousands,
except per share amounts)
|
|
Three Months
EndedDecember 31, |
|
|
Year Ended
December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
67,825 |
|
|
$ |
117,962 |
|
|
$ |
297,127 |
|
|
$ |
351,575 |
|
Cost of revenue |
|
|
18,146 |
|
|
|
27,009 |
|
|
|
79,161 |
|
|
|
93,511 |
|
Gross
profit |
|
|
49,679 |
|
|
|
90,953 |
|
|
|
217,966 |
|
|
|
258,064 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development |
|
|
17,345 |
|
|
|
16,765 |
|
|
|
70,974 |
|
|
|
60,677 |
|
Sales and
marketing |
|
|
10,063 |
|
|
|
12,619 |
|
|
|
41,186 |
|
|
|
39,602 |
|
General and
administrative |
|
|
5,439 |
|
|
|
7,176 |
|
|
|
26,840 |
|
|
|
21,563 |
|
Total
operating expenses |
|
|
32,847 |
|
|
|
36,560 |
|
|
|
139,000 |
|
|
|
121,842 |
|
Income from
operations |
|
|
16,832 |
|
|
|
54,393 |
|
|
|
78,966 |
|
|
|
136,222 |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
|
1,663 |
|
|
|
765 |
|
|
|
6,259 |
|
|
|
2,439 |
|
Interest
expense |
|
|
(5,184 |
) |
|
|
(4,529 |
) |
|
|
(19,763 |
) |
|
|
(17,466 |
) |
Gain (loss)
on foreign currency, net |
|
|
(466 |
) |
|
|
113 |
|
|
|
(911 |
) |
|
|
886 |
|
Other
income, net |
|
|
409 |
|
|
|
105 |
|
|
|
1,387 |
|
|
|
737 |
|
Total other
income (expense), net |
|
|
(3,578 |
) |
|
|
(3,546 |
) |
|
|
(13,028 |
) |
|
|
(13,404 |
) |
Income before provision
for (benefit from) income taxes |
|
|
13,254 |
|
|
|
50,847 |
|
|
|
65,938 |
|
|
|
122,818 |
|
Provision for (benefit
from) income taxes |
|
|
(1,662 |
) |
|
|
21,984 |
|
|
|
(7,068 |
) |
|
|
34,318 |
|
Net income |
|
|
14,916 |
|
|
|
28,863 |
|
|
|
73,006 |
|
|
|
88,500 |
|
Cumulative
dividends on convertible preferred stock |
|
|
— |
|
|
|
(1,273 |
) |
|
|
— |
|
|
|
(5,674 |
) |
Dividends
declared on convertible preferred stock |
|
|
— |
|
|
|
(23,430 |
) |
|
|
— |
|
|
|
(70,977 |
) |
Net income attributable to
common stockholders, basic and diluted |
|
$ |
14,916 |
|
|
$ |
4,160 |
|
|
$ |
73,006 |
|
|
$ |
11,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.18 |
|
|
$ |
0.10 |
|
|
$ |
0.87 |
|
|
$ |
0.34 |
|
Diluted |
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
$ |
0.79 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used to compute net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
83,060 |
|
|
|
40,407 |
|
|
|
83,539 |
|
|
|
35,359 |
|
Diluted |
|
|
87,971 |
|
|
|
50,236 |
|
|
|
91,877 |
|
|
|
44,972 |
|
CASA SYSTEMS,
INC.RECONCILIATION OF SELECTED GAAP AND NON-GAAP
FINANCIAL
MEASURES(unaudited) (in thousands,
except percentages and per share amounts)
|
|
Three Months
EndedDecember 31, |
|
|
Year Ended
December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Non-GAAP Net Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
14,916 |
|
|
$ |
28,863 |
|
|
$ |
73,006 |
|
|
$ |
88,500 |
|
Stock-based
compensation |
|
|
2,352 |
|
|
|
3,243 |
|
|
|
8,894 |
|
|
|
9,136 |
|
Follow-on
public offering expenses |
|
|
— |
|
|
|
— |
|
|
|
815 |
|
|
|
— |
|
Impact of
the U.S. Tax Cuts and Jobs Act(1) |
|
|
— |
|
|
|
14,098 |
|
|
|
— |
|
|
|
14,098 |
|
Tax effect
of excluded items |
|
|
2 |
|
|
|
(503 |
) |
|
|
(1,217 |
) |
|
|
(1,504 |
) |
Non-GAAP net
income |
|
$ |
17,270 |
|
|
$ |
45,701 |
|
|
$ |
81,498 |
|
|
$ |
110,230 |
|
Non-GAAP net
income margin |
|
|
25.5 |
% |
|
|
38.7 |
% |
|
|
27.4 |
% |
|
|
31.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Diluted Net Income Per Share Attributable to
Common Stockholders to Non-GAAP Diluted Net
Income Per Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share attributable to common stockholders |
|
$ |
0.17 |
|
|
$ |
0.08 |
|
|
$ |
0.79 |
|
|
$ |
0.26 |
|
Cumulative
dividends on convertible preferred stock |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.07 |
|
Dividends
declared on convertible preferred stock |
|
|
— |
|
|
|
0.28 |
|
|
|
— |
|
|
|
0.85 |
|
Non-GAAP
adjustments to net income |
|
|
0.03 |
|
|
|
0.20 |
|
|
|
0.09 |
|
|
|
0.25 |
|
Dilutive
convertible preferred stock |
|
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.12 |
) |
Non-GAAP diluted net
income per share |
|
$ |
0.20 |
|
|
$ |
0.54 |
|
|
$ |
0.88 |
|
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in computing diluted net income per share |
|
|
87,971 |
|
|
|
50,236 |
|
|
|
91,877 |
|
|
|
44,972 |
|
Dilutive
effect of convertible preferred stock |
|
|
— |
|
|
|
34,676 |
|
|
|
— |
|
|
|
38,944 |
|
Weighted-average shares
used in computing non-GAAP diluted net income per share |
|
|
87,971 |
|
|
|
84,912 |
|
|
|
91,877 |
|
|
|
83,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Income to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
14,916 |
|
|
$ |
28,863 |
|
|
$ |
73,006 |
|
|
$ |
88,500 |
|
Stock-based
compensation |
|
|
2,352 |
|
|
|
3,243 |
|
|
|
8,894 |
|
|
|
9,136 |
|
Follow-on
public offering expenses |
|
|
— |
|
|
|
— |
|
|
|
815 |
|
|
|
— |
|
Depreciation
and amortization |
|
|
2,417 |
|
|
|
2,162 |
|
|
|
9,454 |
|
|
|
7,738 |
|
Other
income, net |
|
|
3,578 |
|
|
|
3,546 |
|
|
|
13,028 |
|
|
|
13,404 |
|
Provision
for (benefit from) income taxes |
|
|
(1,662 |
) |
|
|
21,984 |
|
|
|
(7,068 |
) |
|
|
34,318 |
|
Adjusted
EBITDA |
|
$ |
21,601 |
|
|
$ |
59,798 |
|
|
$ |
98,129 |
|
|
$ |
153,096 |
|
Adjusted
EBITDA margin |
|
|
31.8 |
% |
|
|
50.7 |
% |
|
|
33.0 |
% |
|
|
43.5 |
% |
(1) |
|
|
During the fiscal quarter
ended December 31, 2017, we recorded provisional tax amounts for
the one-time transition tax on the accumulated earnings of certain
foreign subsidiaries and the re-measurement of certain deferred tax
assets and liabilities as a result of the enactment of the U.S. Tax
Cuts and Jobs Act of 2017. Our accounting for the impacts of the
U.S. Tax Cuts and Jobs Act of 2017 were completed as of December
31, 2018, and we have not recorded any material adjustments to the
provisional amounts recorded in the fourth quarter of 2017 related
to the U.S. Tax Cuts and Jobs Act of 2017. |
|
|
|
|
CASA SYSTEMS,
INC.RECONCILIATION OF SELECTED GAAP AND NON-GAAP
FINANCIAL MEASURES
(Continued)(unaudited) (in thousands,
except percentages and per share amounts)
|
|
Three Months
EndedDecember 31, |
|
|
Year Ended
December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Reconciliation
of Net Cash Provided by Operating Activities
to Free Cash Flow: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities |
|
$ |
4,443 |
|
|
$ |
45,954 |
|
|
$ |
98,545 |
|
|
$ |
95,008 |
|
Purchases of
property and equipment |
|
|
(1,742 |
) |
|
|
(2,311 |
) |
|
|
(7,966 |
) |
|
|
(7,014 |
) |
Free cash
flow |
|
$ |
2,701 |
|
|
$ |
43,643 |
|
|
$ |
90,579 |
|
|
$ |
87,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Stock-Based Compensation Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
|
$ |
61 |
|
|
$ |
104 |
|
|
$ |
249 |
|
|
$ |
306 |
|
Research and
development |
|
|
447 |
|
|
|
1,329 |
|
|
|
1,864 |
|
|
|
2,864 |
|
Sales and
marketing |
|
|
341 |
|
|
|
310 |
|
|
|
1,229 |
|
|
|
1,112 |
|
General and
administrative |
|
|
1,503 |
|
|
|
1,500 |
|
|
|
5,552 |
|
|
|
4,854 |
|
Total |
|
$ |
2,352 |
|
|
$ |
3,243 |
|
|
$ |
8,894 |
|
|
$ |
9,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales of
broadband products |
|
$ |
24,625 |
|
|
$ |
56,347 |
|
|
$ |
133,386 |
|
|
$ |
198,147 |
|
Capacity
expansions |
|
|
32,820 |
|
|
|
50,394 |
|
|
|
123,603 |
|
|
|
113,749 |
|
Product |
|
|
57,445 |
|
|
|
106,741 |
|
|
|
256,989 |
|
|
|
311,896 |
|
Service |
|
|
10,380 |
|
|
|
11,221 |
|
|
|
40,138 |
|
|
|
39,679 |
|
Total
revenue |
|
$ |
67,825 |
|
|
$ |
117,962 |
|
|
$ |
297,127 |
|
|
$ |
351,575 |
|
CASA SYSTEMS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(unaudited) (in thousands)
|
|
December 31, |
|
|
December 31, |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
280,587 |
|
|
$ |
260,820 |
|
Accounts
receivable, net |
|
|
81,782 |
|
|
|
122,634 |
|
Inventory |
|
|
50,997 |
|
|
|
36,148 |
|
Prepaid
expenses and other current assets |
|
|
3,755 |
|
|
|
5,151 |
|
Prepaid
income taxes |
|
|
390 |
|
|
|
538 |
|
Total
current assets |
|
|
417,511 |
|
|
|
425,291 |
|
Property and equipment,
net |
|
|
29,879 |
|
|
|
29,363 |
|
Accounts receivable, net
of current portion |
|
|
2,388 |
|
|
|
4,710 |
|
Deferred tax assets |
|
|
21,578 |
|
|
|
9,718 |
|
Other assets |
|
|
3,293 |
|
|
|
615 |
|
Total
assets |
|
$ |
474,649 |
|
|
$ |
469,697 |
|
Liabilities and
Stockholders’
Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
17,776 |
|
|
$ |
15,833 |
|
Accrued
expenses and other current liabilities |
|
|
36,992 |
|
|
|
48,250 |
|
Accrued
income taxes |
|
|
958 |
|
|
|
118 |
|
Deferred
revenue |
|
|
31,206 |
|
|
|
34,224 |
|
Current
portion of long-term debt, net of unamortized debt issuance
costs |
|
|
2,179 |
|
|
|
2,156 |
|
Total
current liabilities |
|
|
89,111 |
|
|
|
100,581 |
|
Accrued income taxes, net
of current portion |
|
|
4,923 |
|
|
|
8,810 |
|
Deferred revenue, net of
current portion |
|
|
12,479 |
|
|
|
14,691 |
|
Long-term debt, net of
current portion and unamortized debt issuance costs |
|
|
293,280 |
|
|
|
295,459 |
|
Total
liabilities |
|
|
399,793 |
|
|
|
419,541 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
83 |
|
|
|
81 |
|
Additional paid-in capital |
|
|
156,939 |
|
|
|
128,798 |
|
Accumulated other comprehensive income (loss) |
|
|
(1,158 |
) |
|
|
194 |
|
Accumulated deficit |
|
|
(81,008 |
) |
|
|
(78,917 |
) |
Total
stockholders’ equity |
|
|
74,856 |
|
|
|
50,156 |
|
Total
liabilities and stockholders’ equity |
|
$ |
474,649 |
|
|
$ |
469,697 |
|
CASA SYSTEMS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (unaudited)(in thousands)
|
|
Year Ended
December 31, |
|
|
|
2018 |
|
|
2017 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
73,006 |
|
|
$ |
88,500 |
|
Adjustments to reconcile
net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation
and amortization |
|
|
9,454 |
|
|
|
7,738 |
|
Stock-based
compensation |
|
|
8,894 |
|
|
|
9,136 |
|
Deferred
income taxes |
|
|
(11,517 |
) |
|
|
11,422 |
|
Decrease in
provision for doubtful accounts |
|
|
(282 |
) |
|
|
6 |
|
Excess and
obsolete inventory valuation adjustment |
|
|
(5,883 |
) |
|
|
4,115 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
34,716 |
|
|
|
(25,750 |
) |
Inventory |
|
|
(11,051 |
) |
|
|
21,859 |
|
Prepaid
expenses and other assets |
|
|
(1,084 |
) |
|
|
3,519 |
|
Prepaid
income taxes |
|
|
146 |
|
|
|
(486 |
) |
Accounts
payable |
|
|
4,197 |
|
|
|
(6,475 |
) |
Accrued
expenses and other current liabilities |
|
|
6,124 |
|
|
|
10,267 |
|
Accrued
income taxes |
|
|
(3,088 |
) |
|
|
(3,212 |
) |
Deferred
revenue |
|
|
(5,087 |
) |
|
|
(25,631 |
) |
Net cash
provided by operating activities |
|
|
98,545 |
|
|
|
95,008 |
|
Cash flows (used
in) provided by investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(7,966 |
) |
|
|
(7,014 |
) |
Proceeds from maturities
of marketable securities |
|
|
— |
|
|
|
14,589 |
|
Net cash
(used in) provided by investing activities |
|
|
(7,966 |
) |
|
|
7,575 |
|
Cash flows used in
financing activities: |
|
|
|
|
|
|
|
|
Principal repayments of
debt |
|
|
(3,304 |
) |
|
|
(3,292 |
) |
Proceeds from exercise of
stock options |
|
|
14,730 |
|
|
|
274 |
|
Payments of dividends and
equitable adjustments |
|
|
(7,325 |
) |
|
|
(246,634 |
) |
Follow-on offering selling
shareholders profit disgorgement |
|
|
3,811 |
|
|
|
— |
|
Repurchases of common
stock |
|
|
(75,102 |
) |
|
|
— |
|
Payments of initial public
offering costs |
|
|
(1,148 |
) |
|
|
(2,384 |
) |
Proceeds from initial
public offering, net of commissions |
|
|
— |
|
|
|
83,421 |
|
Employee taxes paid
related to net share settlement of equity awards |
|
|
(13 |
) |
|
|
(4,046 |
) |
Net cash
used in financing activities |
|
|
(68,351 |
) |
|
|
(172,661 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
|
(1,442 |
) |
|
|
1,344 |
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash |
|
|
20,786 |
|
|
|
(68,734 |
) |
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
260,820 |
|
|
|
329,554 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
281,606 |
|
|
$ |
260,820 |
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for
interest |
|
$ |
18,348 |
|
|
$ |
16,275 |
|
Cash paid for income
taxes |
|
$ |
7,268 |
|
|
$ |
26,297 |
|
Supplemental
disclosures of non-cash operating, investing
and financing activities: |
|
|
|
|
|
|
|
|
Purchases of property and
equipment included in accounts payable |
|
$ |
1,255 |
|
|
$ |
1,018 |
|
Prepaid expenses and other
current assets included in accounts payable |
|
$ |
607 |
|
|
$ |
1,394 |
|
Deferred public offering
costs included in accounts payable and accrued expenses and
other current liabilities |
|
$ |
— |
|
|
$ |
1,193 |
|
Unpaid equitable
adjustments included in accrued expenses and other current
liabilities |
|
$ |
3,336 |
|
|
$ |
10,661 |
|
Release of customer
incentives included in accounts receivable and accrued
expenses and other current liabilities |
|
$ |
8,556 |
|
|
$ |
15,468 |
|
Casa Systems (NASDAQ:CASA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Casa Systems (NASDAQ:CASA)
Historical Stock Chart
From Sep 2023 to Sep 2024