2016 Q2 Form 10-Q Financial Statement

#000108622216000345 Filed on August 08, 2016

View on sec.gov

Income Statement

Concept 2016 Q2 2015 Q2
Revenue $572.1M $540.7M
YoY Change 5.81% 13.59%
Cost Of Revenue $206.3M $179.9M
YoY Change 14.68% 20.49%
Gross Profit $365.8M $360.8M
YoY Change 1.39% 10.44%
Gross Profit Margin 63.94% 66.73%
Selling, General & Admin $210.8M $210.7M
YoY Change 0.05% 21.52%
% of Gross Profit 57.61% 58.38%
Research & Development $37.69M $36.69M
YoY Change 2.72% 14.48%
% of Gross Profit 10.3% 10.17%
Depreciation & Amortization $85.10M $73.90M
YoY Change 15.16% 25.89%
% of Gross Profit 23.26% 20.48%
Operating Expenses $248.5M $247.3M
YoY Change 0.45% 20.43%
Operating Profit $110.2M $106.3M
YoY Change 3.69% -5.42%
Interest Expense $4.639M $4.678M
YoY Change -0.83% 3.59%
% of Operating Profit 4.21% 4.4%
Other Income/Expense, Net $415.0K -$1.605M
YoY Change -125.86% 78.53%
Pretax Income $109.3M $102.5M
YoY Change 6.66% -5.67%
Income Tax $35.71M $35.32M
% Of Pretax Income 32.66% 34.45%
Net Earnings $73.64M $67.20M
YoY Change 9.58% -7.8%
Net Earnings / Revenue 12.87% 12.43%
Basic Earnings Per Share $0.42 $0.38
Diluted Earnings Per Share $0.42 $0.37
COMMON SHARES
Basic Shares Outstanding 175.5M shares 178.7M shares
Diluted Shares Outstanding 176.4M shares 180.7M shares

Balance Sheet

Concept 2016 Q2 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $868.7M $643.5M
YoY Change 35.0% -14.97%
Cash & Equivalents $326.6M $257.4M
Short-Term Investments $542.1M $386.1M
Other Short-Term Assets $132.5M $165.1M
YoY Change -19.75% 40.51%
Inventory
Prepaid Expenses
Receivables $364.4M $342.9M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.366B $1.151B
YoY Change 18.59% -4.02%
LONG-TERM ASSETS
Property, Plant & Equipment $786.8M $704.6M
YoY Change 11.68% 31.29%
Goodwill $1.150B $1.136B
YoY Change 1.25% 8.28%
Intangibles $142.7M $165.7M
YoY Change -13.92% 11.07%
Long-Term Investments $731.2M $881.5M
YoY Change -17.05% 19.83%
Other Assets $90.81M $90.04M
YoY Change 0.86% -6.35%
Total Long-Term Assets $2.904B $2.980B
YoY Change -2.53% 15.98%
TOTAL ASSETS
Total Short-Term Assets $1.366B $1.151B
Total Long-Term Assets $2.904B $2.980B
Total Assets $4.270B $4.131B
YoY Change 3.36% 9.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $68.25M $85.31M
YoY Change -20.0% 20.95%
Accrued Expenses $234.0M $205.4M
YoY Change 13.95% 29.45%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $376.5M $348.2M
YoY Change 8.13% 22.93%
LONG-TERM LIABILITIES
Long-Term Debt $629.0M $614.5M
YoY Change 2.36% 3.21%
Other Long-Term Liabilities $99.75M $79.75M
YoY Change 25.09% 9.55%
Total Long-Term Liabilities $99.75M $79.75M
YoY Change 25.09% 9.55%
TOTAL LIABILITIES
Total Short-Term Liabilities $376.5M $348.2M
Total Long-Term Liabilities $99.75M $79.75M
Total Liabilities $1.119B $1.086B
YoY Change 3.08% 9.02%
SHAREHOLDERS EQUITY
Retained Earnings -$1.128B -$1.453B
YoY Change -22.36% -18.65%
Common Stock $1.791M $1.805M
YoY Change -0.78% -2.11%
Preferred Stock
YoY Change
Treasury Stock (at cost) $199.7M $126.1M
YoY Change 58.41% -32.76%
Treasury Stock Shares 3.952M shares 1.787M shares
Shareholders Equity $3.150B $3.045B
YoY Change
Total Liabilities & Shareholders Equity $4.270B $4.131B
YoY Change 3.36% 9.62%

Cashflow Statement

Concept 2016 Q2 2015 Q2
OPERATING ACTIVITIES
Net Income $73.64M $67.20M
YoY Change 9.58% -7.8%
Depreciation, Depletion And Amortization $85.10M $73.90M
YoY Change 15.16% 25.89%
Cash From Operating Activities $244.3M $264.1M
YoY Change -7.5% 31.92%
INVESTING ACTIVITIES
Capital Expenditures -$78.20M -$96.00M
YoY Change -18.54% 36.17%
Acquisitions
YoY Change
Other Investing Activities -$60.70M -$195.4M
YoY Change -68.94% 207.72%
Cash From Investing Activities -$138.8M -$291.3M
YoY Change -52.35% 117.39%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -88.10M -51.20M
YoY Change 72.07% -17.42%
NET CHANGE
Cash From Operating Activities 244.3M 264.1M
Cash From Investing Activities -138.8M -291.3M
Cash From Financing Activities -88.10M -51.20M
Net Change In Cash 17.40M -78.40M
YoY Change -122.19% -1966.67%
FREE CASH FLOW
Cash From Operating Activities $244.3M $264.1M
Capital Expenditures -$78.20M -$96.00M
Free Cash Flow $322.5M $360.1M
YoY Change -10.44% 33.03%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Contingencies</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the three months ended June 30, 2016, the Company completed an internal investigation, with the assistance of outside counsel, relating to improper sales practices by a former employee. The internal investigation included a review of compliance with the requirements of the U.S. Foreign Corrupt Practices Act ("FCPA") and other applicable laws and regulations. In February 2015, the Company voluntarily contacted the Commission and Department of Justice to advise both agencies of this internal investigation. In June 2016, the Company signed a non-prosecution agreement with the Commission and agreed to disgorge </font><font style="font-family:inherit;font-size:10pt;">$0.7 million</font><font style="font-family:inherit;font-size:10pt;"> to resolve this matter, including interest. The amount was accrued and paid during the six months ended June 30, 2016. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;"></font><font style="font-family:inherit;font-size:10pt;">In July 2016, as part of the resolution of a patent infringement lawsuit filed by the Company against Limelight Networks, Inc. (&#8220;Limelight&#8221;) in 2006, the Company has agreed to license to Limelight technology covered by certain of the Company&#8217;s patents.&#160; The terms of the agreement require Limelight to pay the Company </font><font style="font-family:inherit;font-size:10pt;">$54.0 million</font><font style="font-family:inherit;font-size:10pt;"> in </font><font style="font-family:inherit;font-size:10pt;">12</font><font style="font-family:inherit;font-size:10pt;"> equal installments over </font><font style="font-family:inherit;font-size:10pt;">three years</font><font style="font-family:inherit;font-size:10pt;">, beginning in August 2016.</font></div></div>

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