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Gigamon's (GIMO) CEO Paul Hooper on Q1 2016 Results - Earnings Call Transcript

Gigamon, Inc. (NYSE:GIMO)

Q1 2016 Earnings Conference Call

April 28, 2016 5:00 PM ET

Executives

Cynthia Hiponia - Investor Relations

Paul Hooper - Chief Executive Officer

Mike Burns - Chief Financial Officer

Analysts

Kulbinder Garcha - Credit Suisse

Alex Henderson - Needham & Co.

Jason Ader - William Blair & Co.

Simon Leopold - Raymond James & Associates, Inc.

Operator

Good day and welcome to the Gigamon First Quarter 2016 Earnings Conference Call. Today’s call is being recorded. At this time, I would like to turn the conference over to Cynthia Hiponia. Please go ahead.

Cynthia Hiponia

Thank you. This is Cynthia Hiponia, Gigamon Investor Relations. And I am pleased to welcome you to Gigamon’s conference call to discuss its first quarter 2016 earnings results. With me on the call today is Gigamon’s CEO, Paul Hooper; and CFO, Mike Burns.

After the market closed today, Gigamon issued a press release through PRNewswire. The release is also available on the Company’s website at gigamon.com. This call is being webcast live on the Investor Relations page of the Gigamon website and will be available for a period of one-year.

During the course of today’s presentation, our executives will make forward-looking statements within the meaning of the Federal Securities Laws. Forward-looking statements generally relate to future events or future financial or operating performance.

Forward-looking statements in this presentation include, but are not limited to statements related to our business and financial performance and expectations and guidance for future periods, our customer potential and our expectations regarding the market opportunity.

Our expectations and beliefs regarding these matters may not materialize and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include those set forth in the press release that we issued earlier today as well as those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

The forward-looking statements in this presentation are based on information available to us as of the date hereof and we disclaim any obligation to update any forward-looking statements except as required by law.

Please note that other than revenue or as otherwise specifically stated, the financial measures to be discussed on this call will be on a non-GAAP basis. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP.

A discussion of why we present non-GAAP financial measures and a reconciliation of the non-GAAP financial measures discussed in this call to the most directly comparable GAAP financial measures are included in our earnings press release that is available on our website.

On this call, we will give guidance for the second quarter of fiscal 2016 on a non-GAAP basis. We do not make available reconciliation of non-GAAP guidance measures to corresponding GAAP measures on a forward-looking basis due to the high variability and low visibility with respect to the charges, which are excluded from these non-GAAP measures.

Let me now turn the call over to Paul Hooper, Gigamon’s CEO.

Paul Hooper

Thank you, Cynthia. And thank you all for joining our call this afternoon. Accelerating profitable growth, consistent execution and market leadership – these are the hallmarks of our organization that has delivered another set of impressive results, proving that our portfolio and Company are setting the pace in this expanding market.

On the call today, I want to highlight three key themes that underpin our performance, that have delivered a GAAP-profitable first quarter and provide the foundation for our continued growth ahead. First, the demand for our security products continues to accelerate. Wins in this portion of the market represented more than 60% of our transactions this quarter, up from 40% in the year-ago period, with 21 of the largest 25 deals across all customers, and four of the largest five new customers being directly related to security deployments.