SUNNYVALE, Calif., Feb. 1, 2012 /PRNewswire/ -- Meru Networks, Inc.,
(NASDAQ:MERU), today announced its financial results for the
quarter and full year ended December 31,
2011.
(Logo:
http://photos.prnewswire.com/prnh/20100621/SF23611LOGO)
Fourth Quarter 2011 Financial Results
Total revenues for the fourth quarter of 2011 were $23.3 million, up 3% from $22.6 million in the fourth quarter of 2010.
Products and services revenues (excluding ratable revenues) for the
fourth quarter of 2010 were $23.3
million, up 13% from the $20.5
million reported in the fourth quarter of 2010.
Net loss as reported in accordance with U.S. generally accepted
accounting principles (GAAP) was $8.2
million for the fourth quarter of 2011, or $0.46 per basic and diluted share, compared to a
net loss of $0.9 million, or
$0.06 per basic and diluted share,
for the same period of 2010. GAAP results for the fourth quarter of
2011 included stockbased compensation expense of $1.6 million, amortization of acquisitionrelated
intangibles of $0.1 million and chief
executive officer transition costs of $1.1
million. GAAP results for the fourth quarter of 2010
included stockbased compensation expense of $1.2 million.
Meru reported fourth quarter 2011 non-GAAP net loss of
$5.4 million, or $0.30 loss per basic and diluted share, compared
to non-GAAP net income of $305,000,
or $0.02 income per diluted share,
for the fourth quarter of 2010. Please refer to the
reconciliation of GAAP to non-GAAP results provided at the end of
this release.
2011 Financial Results
Revenues for the year ended December 31,
2011 were $90.5 million, an
increase of 6% from $85.0 million in
2010. Products and services revenues (excluding ratable revenues)
for 2011 were $87.2 million, up 18%
from the $73.7 million reported in
2010. GAAP net loss for 2011 was $26.7
million, or $1.54 per basic
and diluted share, compared to a net loss of $36.6 million, or $3.06 per basic and diluted share in 2010. GAAP
results for 2011 included stockbased compensation expense of
$6.2 million, litigation reserve
expense of $7.3 million, amortization
of acquisitionrelated intangibles of $0.1
million and chief executive officer transition costs of
$1.1 million. GAAP results for
2010 included stockbased compensation expense of $3.8 million and $33.6
million for the adjustment to fair value of the warrant
liability. Non-GAAP net loss for 2011 was $12.1 million, or $0.69 loss per basic and diluted share, compared
to non-GAAP net income of $859,000,
or $0.05 income per diluted share in
2010.
"2011 was a year of building for Meru," said Ihab Abu-Hakima, president and chief executive
officer, Meru Networks. "We have doubled our sales headcount from
the end of 2010, with the majority of this headcount joining since
the beginning of the fourth quarter. In addition, we have
significantly expanded our product portfolio, and increased our
marketing investment. We expect to reap the benefit of these
investments beginning in the second half of 2012 as our expanded
sales headcount begins to reach full productivity and the
BYOD-driven, worldwide mobile workforce continues to expand,
increasing the demand for seamless, secure, reliable access to
enterprise wireless networks. Meru's innovative approach is
designed to enable organizations to meet the demands of their high
density mobile environments where business-essential execution
increasingly depends on all wireless mobile edge networks."
Fourth Quarter Business Highlights
- Customer count now over 6,000 worldwide, an increase in the
installed base of approximately 7% from the end of the prior
quarter.
- Announced broad product enhancements that included the new
secure wireless LAN access solution, Smart Connect, and the
next-generation wireless LAN platform that delivers breakthrough
network scalability, capacity and performance.
- Notable fourth quarter wins and production deployments include:
- A large name-brand hotel chain in the Western United States for deployment in 20
hotels.
- A nationwide wireless LAN expansion for a multi-billion dollar
global data center organization.
- Two top 20 universities in the United
Kingdom.
- A multi-site warehouse deal with a logistics company in the
United Kingdom.
- One of the largest port services companies in Saudi Arabia.
- One of the top 10 largest stadiums in the world located in
Australia.
Conference Call Information
Meru will host a conference call for analysts and investors to
discuss its fourth quarter and full year 2011 results, today,
February 1st at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To join the live call,
please dial (877) 852-2926 (domestic) and (253) 237-1123
(international) and reference conference ID 42269912.
A telephone replay will be available two hours following the
conclusion of the call for a period of seven days and can be
accessed by dialing (855) 859-2056 for domestic callers and (404)
537-3406 for international callers. The call ID for the replay is
42269912. The live and archived webcast of the fourth quarter and
full year 2011 financial results conference call will also be
available at the investor relations section of Meru's website at
http://investors.merunetworks.com.
About Meru Networks, Inc.
Founded in 2002, Meru Networks provides a virtualized wireless
LAN architecture that cost-effectively delivers the performance,
reliability, predictability and operational simplicity of a wired
network, with the advantages of mobility. Meru's solution
represents an innovative, yet standards-based approach to wireless
networking that utilizes virtualization technology to create an
intelligent and self-monitoring wireless network, enabling
enterprises to migrate their business-critical applications from
wired networks to wireless networks, to become all-wireless
enterprises. Meru's solutions have been adopted in all major
industry vertical markets, including Fortune 500 enterprises,
healthcare, education, retail, manufacturing, hospitality and
government. Meru is headquartered in Sunnyvale, California, and has operations in
the Americas, Europe, the
Middle East and Asia Pacific. For more information, visit Meru
Investor Information or call (408) 215-5300.
Cautionary Statement Regarding Forward Looking
Statements
This press release contains forward-looking statements and
information. All statements other than statements of historical
facts that address activities, events or developments that we
expect, believe or anticipate will or may occur in the future are
forward- looking statements. Such statements include, but are
not limited to those statements regarding the company's expectation
that it will reap the benefit, beginning in the second half of
2012, of the increases in sales headcount, expanded product
portfolio and marketing investment it made in 2011; the company's
belief that driven by BYOD, the worldwide mobile workforce will
continue to expand, resulting in increasing the demand for
seamless, secure and reliable access to enterprise wireless
networks; Meru's belief that to meet the demands of high
density environments where business-essential execution
applications will continue and depends on all wireless mobile edge
networks and that that the company's approach will enable
organizations to do so. We have identified some of these
forward-looking statements with words like "believe," "may,"
"will," "should," "expect," "intend," "plan," "predict,"
"anticipate," "estimate" or "continue" and other words and terms of
similar meaning. These forward-looking statements involve risks and
uncertainties, including the risk that the market for Meru's
solutions may not grow as the company expects; risks related to a
lengthening customer approval processes, including lengthening of
budget approval processes and funding uncertainty for domestic
education customers; the risk that continuing investment in sales
and marketing coverage and capacity will fail to diversify the
company's customer mix or mitigate against the uncertainty of
governmental funding; and the other risks and uncertainties
described under the caption "Risk Factors" in Meru Networks'
quarterly report on Form 10-Q filed with the Securities and
Exchange Commission, or the SEC, on November
8, 2011, as well as additional reports filed with the SEC.
These forward-looking statements also involve assumptions that, if
they do not fully materialize or prove incorrect, could cause our
results to differ materially from those expressed or implied by
such forward-looking statements. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our financial conditions, results of operations,
business strategy and financial needs. All forward-looking
statements in this press release are based on information available
to us as of the date hereof, and we assume no obligation to update
or revise these forward-looking statements, whether as a result of
new information, new developments or otherwise.
Non-GAAP Financial Measurements
In addition to reporting financial results in accordance with
generally accepted accounting principles, or GAAP, Meru reports
non-GAAP net income (loss),and non-GAAP income (loss) from
operations which both exclude stock-based compensation expense,
amortization of intangible assets related to the company's
acquisition of Identity Networks in the third fiscal quarter of
2011, chief executive officer transition costs, and other items
outside the ordinary course of business such as litigation
reserves expense or adjustment to fair value of the warrant
liability. Meru believes that its non-GAAP net income (loss) and
non-GAAP income (loss) from operations provide useful information
to management and investors regarding financial and business trends
relating to its financial condition and results of operations. Meru
also believes the non-GAAP measures provide useful supplemental
information for investors to evaluate its operating results in the
same manner as the research analysts that follow Meru, all of whom
will present non-GAAP projections in their published reports. As
such, the non-GAAP measures provided by Meru facilitate a more
direct comparison of its performance with the financial projections
published by the analysts as well as its competitors, many of whom
report financial results on a non-GAAP basis. The economic
substance behind Meru's decision to use such non-GAAP measures is
that such measures approximate its controllable operating
performance more closely than the most directly comparable GAAP
financial measures. For example, Meru's management has no control
over certain variables that have a major influence in the
determination of stock-based compensation such as the volatility of
its stock price and changing interest rates. In addition, Meru's
management does not consider the amortization of intangible assets
related to the company's acquisition of Identity Networks relevant
when comparing its performance to prior periods. Meru believes that
all of these excluded expenses do not accurately reflect the
underlying performance of its continuing operations for the period
in which they are incurred, even though these excluded items may be
incurred and reflected in Meru's GAAP financial results.
The material limitation associated with the use of non-GAAP
financial measures is that the non-GAAP measures may not reflect
the full economic impact of Meru's activities. Meru's non-GAAP
measures may be calculated differently than non-GAAP financial
information disclosed by other companies. Accordingly, investors
are cautioned not to place undue reliance on non-GAAP
information.
MERU
NETWORKS, INC.
|
|
Condensed
Consolidated Balance Sheets
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2011
|
|
2010
|
|
ASSETS
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
35,259
|
|
$
62,270
|
|
Short-term
investments
|
5,000
|
|
4,999
|
|
Accounts receivable,
net
|
13,038
|
|
8,796
|
|
Inventory
|
6,548
|
|
4,636
|
|
Deferred inventory costs,
current portion
|
86
|
|
1,273
|
|
Prepaid expenses and other
current assets
|
912
|
|
1,195
|
|
Total current assets
|
60,843
|
|
83,169
|
|
|
|
|
|
|
|
|
Property and equipment,
net
|
1,476
|
|
763
|
|
Goodwill
|
1,658
|
|
-
|
|
Intangible assets,
net
|
693
|
|
-
|
|
Deferred inventory costs, net of
current portion
|
26
|
|
77
|
|
Other assets
|
2,147
|
|
359
|
|
TOTAL ASSETS
|
$
66,843
|
|
$
84,368
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
STOCKHOLDERS’
DEFICIT:
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
$
5,733
|
|
$
4,302
|
|
|
Accrued liabilities
|
12,394
|
|
10,694
|
|
|
Long-term debt, current
portion
|
-
|
|
2,808
|
|
|
Deferred revenue, current
portion
|
11,764
|
|
12,723
|
|
|
|
Total current
liabilities
|
29,891
|
|
30,527
|
|
|
|
|
|
|
|
|
Deferred revenue, net of current
portion
|
4,481
|
|
3,923
|
|
|
|
Total liabilities
|
34,372
|
|
34,450
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY:
|
|
|
|
|
|
Preferred stock
|
-
|
|
-
|
|
|
Common stock
|
9
|
|
8
|
|
|
Additional paid-in
capital
|
254,576
|
|
245,160
|
|
|
Accumulated other comprehensive
loss
|
(197)
|
|
(27)
|
|
|
Accumulated deficit
|
(221,917)
|
|
(195,223)
|
|
|
|
Total stockholders'
equity
|
32,471
|
|
49,918
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
66,843
|
|
$
84,368
|
|
|
|
|
|
|
|
MERU
NETWORKS, INC.
|
|
Condensed
Consolidated Statements of Operations
|
|
(Unaudited)
|
|
(In
thousands, except for share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Years
ended
December
31,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
Products
|
$
19,728
|
|
$
17,470
|
|
$
74,279
|
|
$
63,197
|
|
Support and
services
|
3,542
|
|
3,048
|
|
12,957
|
|
10,479
|
|
Ratable products and
services
|
63
|
|
2,128
|
|
3,235
|
|
11,328
|
|
Total revenues
|
23,333
|
|
22,646
|
|
90,471
|
|
85,004
|
|
|
|
|
|
|
|
|
|
|
COSTS OF REVENUES:
|
|
|
|
|
|
|
|
|
Products
|
6,801
|
|
6,148
|
|
26,415
|
|
22,060
|
|
Support and
services
|
1,450
|
|
715
|
|
4,581
|
|
2,297
|
|
Ratable products and
services
|
39
|
|
1,093
|
|
1,863
|
|
6,021
|
|
Total costs of revenues *
|
8,290
|
|
7,956
|
|
32,859
|
|
30,378
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
15,043
|
|
14,690
|
|
57,612
|
|
54,626
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
Research and development
*
|
3,433
|
|
3,439
|
|
13,966
|
|
12,399
|
|
Sales and marketing
*
|
14,762
|
|
9,315
|
|
47,688
|
|
33,483
|
|
General and administrative
*
|
4,780
|
|
2,646
|
|
14,779
|
|
10,462
|
|
Litigation
reserve
|
-
|
|
-
|
|
7,250
|
|
-
|
|
Total operating expenses
|
22,975
|
|
15,400
|
|
83,683
|
|
56,344
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
(7,932)
|
|
(710)
|
|
(26,071)
|
|
(1,718)
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
(54)
|
|
(153)
|
|
(253)
|
|
(813)
|
|
Other income (expense),
net
|
(45)
|
|
27
|
|
41
|
|
(33,821)
|
|
Loss before provision for income
taxes
|
(8,031)
|
|
(836)
|
|
(26,283)
|
|
(36,352)
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
150
|
|
59
|
|
411
|
|
254
|
|
Net loss
|
$
(8,181)
|
|
$
(895)
|
|
(26,694)
|
|
(36,606)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of common
stock, basic and diluted
|
$
(0.46)
|
|
$
(0.06)
|
|
$
(1.54)
|
|
$
(3.06)
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing net
loss per share of common stock, basic and diluted
|
17,616,664
|
|
16,094,659
|
|
17,377,503
|
|
11,981,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Includes stock-based
compensation expense as follows:
|
|
|
|
|
|
|
|
|
Costs of
revenues
|
$
82
|
|
$
65
|
|
$
346
|
|
$
197
|
|
Research
and development
|
273
|
|
235
|
|
1,131
|
|
767
|
|
Sales and
marketing
|
630
|
|
298
|
|
2,217
|
|
985
|
|
General and
administrative
|
643
|
|
602
|
|
2,480
|
|
1,896
|
|
|
$
1,628
|
|
$
1,200
|
|
$
6,174
|
|
$
3,845
|
|
|
|
|
|
|
|
|
|
|
*Includes amortization of
acquisition-related intangible assets as follows:
|
|
|
|
|
|
|
|
|
Costs of
revenues
|
$
52
|
|
$
-
|
|
$
70
|
|
$
-
|
|
Sales and
marketing
|
21
|
|
-
|
|
27
|
|
-
|
|
|
$
73
|
|
$
-
|
|
$
97
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
*Includes chief executive
officer transition costs as follow:
|
|
|
|
|
|
|
|
|
General and
administrative
|
$
1,115
|
|
$
-
|
|
$
1,115
|
|
$
-
|
|
|
|
|
|
|
|
|
|
MERU
NETWORKS, INC.
|
|
Condensed
Consolidated Statements of Operations
|
|
GAAP to
Non-GAAP Reconciliation
|
|
(Unaudited)
|
|
(In
thousands, except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
December
31,
|
|
Years
ended
December
31,
|
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
|
$
(8,181)
|
|
$
(895)
|
|
$
(26,694)
|
|
$
(36,606)
|
|
|
|
|
.
|
|
|
|
.
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
a) Stock-based
compensation
|
1,628
|
|
1,200
|
|
6,174
|
|
3,845
|
|
|
b) Adjustment of fair value of
warrant liability
|
-
|
|
-
|
|
-
|
|
33,620
|
|
|
c) Litigation reserve
|
-
|
|
-
|
|
7,250
|
|
-
|
|
|
d) Amortization of
acquisition-related intangible assets
|
73
|
|
-
|
|
97
|
|
-
|
|
|
e) Chief executive officer
transition costs
|
1,115
|
|
-
|
|
1,115
|
|
-
|
|
Non-GAAP net (loss)
income
|
$
(5,365)
|
|
$
305
|
|
$
(12,058)
|
|
$
859
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per share of
common stock, basic
|
(0.46)
|
|
$
(0.06)
|
|
$
(1.54)
|
|
$
(3.06)
|
|
|
|
|
|
|
|
|
|
|
|
Plus:
|
|
|
|
|
|
|
|
|
|
a) Stock-based
compensation
|
0.09
|
|
0.08
|
|
0.36
|
|
0.32
|
|
|
b) Adjustment of fair value of
warrant liability
|
-
|
|
-
|
|
-
|
|
2.81
|
|
|
c) Litigation reserve
|
-
|
|
-
|
|
0.42
|
|
-
|
|
|
d) Amortization of
acquisition-related intangible assets
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
|
e) Chief executive officer
transition costs
|
0.06
|
|
-
|
|
0.06
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss) income per
share of common stock, basic
|
$
(0.30)
|
|
$
0.02
|
|
$
(0.69)
|
|
$
0.07
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net (loss) income per
share of common stock, diluted
|
$
(0.30)
|
|
$
0.02
|
|
$
(0.69)
|
|
$
0.05
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic
non-GAAP net (loss) income per share of common stock
|
17,616,664
|
|
16,094,659
|
|
17,377,503
|
|
11,981,170
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted
non-GAAP net (loss) income per share of common stock
|
17,616,664
|
|
18,266,607
|
|
17,377,503
|
|
16,677,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
$
(7,932)
|
|
$
(710)
|
|
$
(26,071)
|
|
$
(1,718)
|
|
|
|
|
|
|
|
|
|
|
|
Plus stock-based
compensation:
|
|
|
|
|
|
|
|
|
|
Costs of revenues
|
$
82
|
|
$
65
|
|
$
346
|
|
$
197
|
|
|
Research and
development
|
273
|
|
235
|
|
1,131
|
|
767
|
|
|
Sales and marketing
|
630
|
|
298
|
|
2,217
|
|
985
|
|
|
General and
administrative
|
643
|
|
602
|
|
2,480
|
|
1,896
|
|
|
|
1,628
|
|
1,200
|
|
6,174
|
|
3,845
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation reserve
|
-
|
|
-
|
|
7,250
|
|
-
|
|
|
Amortization of
acquisition-related intangible assets
|
73
|
|
-
|
|
97
|
|
-
|
|
|
Chief executive officer
transition costs
|
1,115
|
|
-
|
|
1,115
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP (loss) income from
operations
|
$
(5,116)
|
|
$
490
|
|
$
(11,435)
|
|
$
2,127
|
|
|
|
|
|
|
|
|
|
|
MERU
NETWORKS, INC.
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years
ended
December
31,
|
|
|
|
|
|
|
2011
|
|
2010
|
|
CASH FLOWS FROM OPERATING
ACTIVITIES:
|
|
|
|
|
|
Net loss
|
$
(26,694)
|
|
$
(36,606)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net
loss to net cash used in operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
724
|
|
615
|
|
|
|
Stock-based
compensation
|
6,174
|
|
3,845
|
|
|
|
Adjustment of fair value of
warrant liability
|
-
|
|
33,620
|
|
|
|
Amortization of debt issuance
costs
|
44
|
|
107
|
|
|
|
Bad debt expense
|
143
|
|
(61)
|
|
|
|
Changes in operating assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(4,292)
|
|
(2,768)
|
|
|
|
|
Inventory
|
(1,912)
|
|
(1,803)
|
|
|
|
|
Deferred inventory
costs
|
1,238
|
|
4,616
|
|
|
|
|
Prepaid expenses and other
assets
|
(325)
|
|
(560)
|
|
|
|
|
Accounts
payable
|
1,431
|
|
992
|
|
|
|
|
Accrued
liabilities
|
1,483
|
|
4,350
|
|
|
|
|
Deferred
revenue
|
(416)
|
|
(8,466)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating
activities
|
(22,402)
|
|
(2,119)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
|
|
|
|
|
Purchases of property and
equipment
|
(1,360)
|
|
(680)
|
|
|
Purchases of short-term
investments
|
(9,996)
|
|
(4,998)
|
|
|
Proceeds from maturities of
short-term investments
|
10,000
|
|
-
|
|
|
Investment in non-marketable
securities
|
(1,250)
|
|
-
|
|
|
Net cash paid in purchase of
business
|
(2,217)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
(4,823)
|
|
(5,678)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING
ACTIVITIES:
|
|
|
|
|
|
Proceeds from initial public
offering, net
|
-
|
|
57,059
|
|
|
Proceeds from issuance of common
stock
|
3,233
|
|
2,539
|
|
|
Proceeds from exercise of
convertible preferred stock warrants
|
-
|
|
716
|
|
|
Proceeds from long-term debt and
line of credit
|
-
|
|
4,986
|
|
|
Repayment of long-term debt and
line of credit
|
(2,852)
|
|
(16,540)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing
activities
|
381
|
|
48,760
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
(167)
|
|
24
|
|
|
|
|
|
|
|
|
|
|
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS
|
(27,011)
|
|
40,987
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS --
Beginning of period
|
62,270
|
|
21,283
|
|
CASH AND CASH EQUIVALENTS -- End
of period
|
$
35,259
|
|
$
62,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Information
In addition to the reasons stated above, which are generally
applicable to each of the items Meru Networks excludes from its
non-GAAP financial measures, the company believes it is appropriate
to exclude certain items for the following reasons:
Stock-Based Compensation. When evaluating the performance
of its consolidated results, Meru Networks does not consider
stock-based compensation charges. Likewise, the Meru Networks
management team excludes stock-based compensation expense from its
operating plans. In contrast, the Meru Networks management team is
held accountable for cash-based compensation and such amounts are
included in its operating plans. Further, when considering the
impact of equity award grants, Meru Networks places a greater
emphasis on overall stockholder dilution rather than the accounting
charges associated with such grants. Meru Networks believes it is
useful to provide a non-GAAP financial measure that excludes
stock-based compensation in order to better understand the
long-term performance of its business.
Amortization of intangible assets. The company
excludes amortization of acquired intangible assets because it is
non-cash in nature and because the company believes that the
non-GAAP financial measures excluding this item provide meaningful
supplemental information regarding operational performance and
liquidity. In addition, excluding this item from various non-GAAP
measures facilitates internal comparisons to historical operating
results and comparisons to competitors' operating results.
Chief Executive Officer transition costs. The
company excludes the chief executive officer transition costs when
evaluating the performance of its consolidated results. The
company believes these costs are unusual in nature and the company
does not expect them to recur in the ordinary course of its
business. The company further believes these costs are
unrelated to the ongoing operation of the business in the ordinary
course.
Other Items. The company excludes items such as
litigation reserves expense or adjustment to fair value of the
warrant liability when evaluating the performance of its
consolidated results. The company believes these costs are
unusual in nature and the company does not expect them to recur in
the ordinary course of its business. The company further
believes these costs are unrelated to the ongoing operation of the
business in the ordinary course.
Media contact:
|
Investors contact:
|
|
Elyce Ventura or Kelli
Tejada
|
Steve Pasko or Scott
Morgan
|
|
Eastwick
Communications
|
Market Street
Partners
|
|
(650) 480-4054
|
(408) 215-5658
|
|
merunetworksteam@eastwick.com
|
ir@merunetworks.com
|
|
|
|
SOURCE Meru Networks, Inc.