|
(1) |
Adjustment relates to the exclusion of share based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. |
|
(2) |
Adjustment relates to the exclusion of amortization expense from our Non-GAAP-based operating expenses as the timing and frequency of amortization expense is dependent on our acquisitions and is hence excluded from our internal analysis of operating results. |
|
(3) |
GAAP-based and Non-GAAP-based gross profit stated in dollars, and gross margin stated as a percentage of revenue. |
|
(4) |
Adjustment relates to the exclusion of Special charges (recoveries) from our Non-GAAP-based operating expenses as Special charges are generally incurred in the periods following the relevant acquisitions and are not indicative or related to continuing operations and are therefore excluded from our internal analysis of operating results. |
|
(5) |
GAAP-based and Non-GAAP-based income from operations stated in dollars, and operating margin stated as a percentage of revenue. |
|
(6) |
Adjustment relates to the exclusion of Other income (expense) from our Non-GAAP-based operating expenses as Other income (expense) relates primarily to the transactional impact of foreign exchange and is generally not indicative or related to continuing operations and is therefore excluded from our internal analysis of operating results. |
|
(7) |
Adjustment relates to differences between the GAAP-based tax provision rate of approximately 10% and a non-GAAP-based tax rate of 15%; these rate differences are due to the income tax effects of expenses that are excluded for the purpose of calculating non-GAAP-based adjusted net income. Such excluded expenses include amortization, share-based compensation, special charges and other income (expense), net. Also excluded are tax expense items unrelated to current period income such as changes in reserves for tax uncertainties and valuation allowance reserves, tax arising on internal reorganizations, and "book to return" adjustments for tax return filings and tax assessments (in total "adjusted expenses"). In arriving at our non-GAAP-based tax rate of 15%, we analyzed the individual adjusted expenses and took into consideration the impact of statutory tax rates from local jurisdictions incurring the expense. |
|
(8) |
Reconciliation of Non-GAAP-based adjusted net income to GAAP-based net income: |
|
|
Three Months Ended June 30, 2014 | |||||
|
|
|
Per share diluted | ||||
|
Non-GAAP-based net income, attributable to OpenText |
$ |
128,675 |
|
$ |
1.05 |
|
|
Less: |
|
| ||||
|
Amortization |
44,840 |
|
0.37 |
| ||
|
Share-based compensation |
4,199 |
|
0.03 |
| ||
|
Special charges (recoveries) |
5,413 |
|
0.04 |
| ||
|
Other (income) expense, net |
(1,103) |
|
(0.01) |
| ||
|
GAAP-based provision for (recovery of) income taxes |
9,885 |
|
0.08 |
| ||
|
Non-GAAP based provision for income taxes |
(22,670) |
|
(0.18) |
| ||
|
GAAP-based net income, attributable to OpenText |
$ |
88,111 |
|
$ |
0.72 |
|
|
Reconciliation of selected GAAP-based measures to Non GAAP-based measures for the year ended June 30, 2014. (In thousands except for per share amounts) | ||||||||||||||
|
|
Year Ended June 30, 2014 | |||||||||||||
|
|
GAAP-based Measures |
GAAP-based Measures % of Revenue |
Adjustments |
Note |
Non-GAAP-based Measures |
Non-GAAP-based Measures % of Revenue | ||||||||
|
Cost of revenues: |
|
|
|
|
|
| ||||||||
|
Cloud services and subscriptions |
$ |
142,666 |
|
|
$ |
(342) |
|
(1) |
$ |
142,324 |
|
| ||
|
Customer support |
95,979 |
|
|
(754) |
|
(1) |
95,225 |
|
| |||||
|
Professional service and other |
189,947 |
|
|
(855) |
|
(1) |
189,092 |
|
| |||||
|
Amortization of acquired technology-based intangible assets |
69,917 |
|
|
(69,917) |
|
(2) |
— |
|
| |||||
|
GAAP-based gross profit and gross margin (%) /
|
1,113,029 |
|
68.5 |
% |
71,868 |
|
(3) |
1,184,897 |
|
72.9 |
% | |||
|
Operating expenses |
|
|
|
|
|
| ||||||||
|
Research and development |
176,834 |
|
|
(2,356) |
|
(1) |
174,478 |
|
| |||||
|
Sales and marketing |
345,643 |
|
|
(7,312) |
|
(1) |
338,331 |
|
| |||||
|
General and administrative |
142,450 |
|
|
(8,287) |
|
(1) |
134,163 |
|
| |||||
|
Amortization of acquired customer-based intangible assets |
81,023 |
|
|
(81,023) |
|
(2) |
— |
|
| |||||
|
Special charges (recoveries) |
31,314 |
|
|
(31,314) |
|
(4) |
— |
|
| |||||
|
GAAP-based income from operations and operating margin (%) / Non-GAAP-based income from operations and operating margin (%) |
300,528 |
|
18.5 |
% |
202,160 |
|
(5) |
502,688 |
|
30.9 |
% | |||
|
Other income (expense), net |
3,941 |
|
|
(3,941) |
|
(6) |
— |
|
| |||||
|
Provision for (recovery of) income taxes |
58,461 |
|
|
9,569 |
|
(7) |
68,030 |
|
| |||||
|
GAAP-based net income / Non-GAAP-based net income, attributable to OpenText |
218,125 |
|
|
188,650 |
|
(8) |
406,775 |
|
| |||||
|
GAAP-based earnings per share / Non GAAP-based earnings per share-diluted, attributable to OpenText |
$ |
1.81 |
|
|
$ |
1.56 |
|
(8) |
$ |
3.37 |
|
| ||
