The following excerpt is from the company's .
(In thousands, except share and per share information)
(Unaudited)
September 30, 2015
Assets
Current assets:
Cash and cash equivalents
172,591
237,942
Short-term investments
20,945
12,384
Accounts receivable, net of allowances of $513 and $1,088 as of September 30, 2015 and December 31, 2014, respectively
54,268
50,791
Income tax receivable
Deferred taxes
Prepaid and other current assets
Total current assets
265,962
316,087
Property and equipment, net< br>
34,009
23,614
Long-term investments
17,423
Goodwill
432,409
363,585
Intangible assets, net
77,500
93,046
Other assets, net
10,071
10,447
Total assets
827,757
825,032
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
Accrued liabilities and other
24,427
35,276
Income taxes payable
Current portion of deferred revenue
177,727
154,799
Current debt obligations
90,000
Total current liabilities
303,202
199,255
Long-term liabilities:
Deferred revenue, net of current portion
10,806
Non-current deferred taxes
Other long-term liabilities
26,224
22,990
Total liabilities
343,942
236,173
Commitments and Contingencies
Stockholders’ equity:
Common stock, $0.001 par value: 123,000,000 shares authorized and 71,744,028 and 75,911,349 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively
Additional paid-in capital
117,260
279,584
Accumulated other comprehensive loss
(23,339
(13,299
Accumulated earnings
389,822
322,498
Total stockholders’ equity
483,815
588,859
Total liabilities and stockholders’ equity
SolarWinds, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share information)
Three months ended September 30,
Nine months ended
Revenue
License
45,283
42,756
126,236
116,743
Maintenance and other
71,526
61,844
202,811
174,800
Subscription
14,816
38,446
18,732
Total revenue
131,625
112,862
367,493
310,275
Cost of license revenue
12,953
12,321
Cost of maintenance and other revenue
13,015
11,296
Cost of subscription revenue
14,529
Gross profit
117,128
101,284
326,996
277,771
Operating expenses:
Sales and marketing
44,532
37,538
131,117
106,772
Research and development
17,454
13,761
48,957
41,784
General and administrative
18,618
18,274
58,355
57,466
Total operating expenses
80,604
69,573
238,429
206,022
Operating income
36,524
31,711
88,567
71,749
Other income (expense):
Interest income
Interest expense
Other income, net
Total other income
Income before income taxes
36,879
31,892
91,401
71,864
Income tax expense
24,077
16,718
Net income
27,013
24,121
67,324
55,146
Net income per share:
Basic earnings per share
Diluted earnings per share
Weighted average shares used to compute net income per share:
Shares used in computation of basic earnings per share
73,808
75,508
75,496
75,375
Shares used in computation of diluted earnings per share
74,476
76,463
76,354
76,321
Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share amounts and percentages)
GAAP cost of revenue
14,497
11,578
40,497
32,504
Amortization of intangible assets (1)
(6,077
(5,185
(17,778
(15,096
Stock-based compensation expense and related employer-paid payroll taxes (2)
(1,578
(1,047
Non-GAAP cost of revenue
21,141
16,361
GAAP gross profit
Non-GAAP gross profit
123,757
106,836
346,352
293,914
GAAP sales and marketing expense
(4,303
(3,088
(13,300
(10,191
Restructuring charges (4)
Non-GAAP sales and marketing expense
40,229
34,437
117,817
96,568
GAAP research and development expense
(3,270
(1,423
(9,211
(5,407
Non-GAAP research and development expense
14,184
12,299
39,746
36,300
GAAP general and administrative expense
(2,402
(2,796
(7,321
(8,031
(4,678
(3,892
(14,738
(11,526
Acquisition related adjustments (3)
(2,510
(5,233
(3,905
(7,416
Non-GAAP general and administrative expense
11,461
31,390
26,588
GAAP operating expenses
(12,251
(8,403
(37,249
(27,124
(7,506
Non-GAAP operating expenses
65,874
55,839
188,953
159,456
GAAP operating income
25,099
23,127
12,803
38,827
28,171
Non-GAAP operating...