- During the quarter, subscription solution bookings were 14% of license and subscription solutions bookings, up from 4% a year ago.
- Viewed on a license mix-adjusted, constant currency basis, Q2 FY’15 software revenue would have increased 10%, total revenue would have increased 5%, and non-GAAP EPS would have increased more than 20% versus Q2 FY’14.
- We added 62 new IoT customers during the quarter.
- We had 13 large deals of greater than $1 million of license and subscription solutions (L&SS) bookings from a customer, down from 17 in the second quarter FY’14. This included one mega deal, or transaction with greater than $5 million of L&SS bookings from a customer, down from three in the second quarter FY’14.
- GAAP operating margin was 1.3% (including $38 million of restructuring charges) and non-GAAP operating margin was 23.4%.
- Cash flow from operations was $92 million, and we ended the quarter with total cash and cash equivalents of $268 million. Total debt was $531 million and DSO was 58 days.
Business Outlook
For the quarter ending July 4, 2015 and fiscal year ending September 30, 2015, the Company expects:
| Q3’15 | Q3’15 | FY’15 | FY’15 | |||||||||||||||||
| ($ in millions) | Low | High | Low | High | ||||||||||||||||
| Subscription Solutions % of L&SS Bookings | 18 | % | 18 | % | 17 | % | 17 | % | ||||||||||||
| License and Subscription Solutions Revenue | $ | 85 | $ | 90 | $ | 360 | $ | 375 | ||||||||||||
| Support Revenue | 168 | 168 | 688 | 688 | ||||||||||||||||
| Total Software Revenue | 253 | 258 | 1,048 | 1,063 | ||||||||||||||||
| Professional Services Revenue | 54 | 54 | 232 | 232 | ||||||||||||||||
| Total Revenue | $ | 307 | $ | 312 | $ | 1,280 | $ | 1,295 | ||||||||||||
| Operating Margin (GAAP) | 12 | % | 13 | % | 11 | % | 12 | % | ||||||||||||
| Operating Margin (Non-GAAP) | 22 | % | 23 | % | 24 | % | 25 | % | ||||||||||||
| Tax Rate (GAAP) | 5 | % | 5 | % | 1 | % | 1 | % | ||||||||||||
| Tax Rate (Non-GAAP) | 15 | % | 15 | % | 14 | % | 14 | % | ||||||||||||
| Shares Outstanding | 116 | 116 | 116 | 116 | ||||||||||||||||
| EPS (GAAP) | $ | 0.26 | $ | 0.29 | $ | 1.10 | $ | 1.22 | ||||||||||||
| EPS (Non-GAAP) | $ | 0.47 | $ | 0.50 | $ | 2.18 | $ | 2.30 | ||||||||||||
The third quarter and full year FY’15 non-GAAP revenue, non-GAAP
operating margin and non-GAAP EPS guidance exclude the following items
and their income tax effects, as well as any discrete tax items, if any:
