2017 Q2 Form 10-Q Financial Statement

#000108622217000215 Filed on August 08, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $608.9M $572.1M
YoY Change 6.43% 5.81%
Cost Of Revenue $214.7M $206.3M
YoY Change 4.05% 14.68%
Gross Profit $394.2M $365.8M
YoY Change 7.77% 1.39%
Gross Profit Margin 64.74% 63.94%
Selling, General & Admin $241.5M $210.8M
YoY Change 14.57% 0.05%
% of Gross Profit 61.25% 57.61%
Research & Development $53.37M $37.69M
YoY Change 41.61% 2.72%
% of Gross Profit 13.54% 10.3%
Depreciation & Amortization $89.20M $85.10M
YoY Change 4.82% 15.16%
% of Gross Profit 22.63% 23.26%
Operating Expenses $294.8M $248.5M
YoY Change 18.67% 0.45%
Operating Profit $85.59M $110.2M
YoY Change -22.32% 3.69%
Interest Expense $4.646M $4.639M
YoY Change 0.15% -0.83%
% of Operating Profit 5.43% 4.21%
Other Income/Expense, Net $563.0K $415.0K
YoY Change 35.66% -125.86%
Pretax Income $85.79M $109.3M
YoY Change -21.54% 6.66%
Income Tax $29.04M $35.71M
% Of Pretax Income 33.85% 32.66%
Net Earnings $56.75M $73.64M
YoY Change -22.93% 9.58%
Net Earnings / Revenue 9.32% 12.87%
Basic Earnings Per Share $0.33 $0.42
Diluted Earnings Per Share $0.33 $0.42
COMMON SHARES
Basic Shares Outstanding 172.7M shares 175.5M shares
Diluted Shares Outstanding 173.4M shares 176.4M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $683.1M $868.7M
YoY Change -21.37% 35.0%
Cash & Equivalents $352.5M $326.6M
Short-Term Investments $330.6M $542.1M
Other Short-Term Assets $159.4M $132.5M
YoY Change 20.3% -19.75%
Inventory
Prepaid Expenses
Receivables $395.9M $364.4M
Other Receivables $0.00 $0.00
Total Short-Term Assets $1.238B $1.366B
YoY Change -9.32% 18.59%
LONG-TERM ASSETS
Property, Plant & Equipment $856.0M $786.8M
YoY Change 8.8% 11.68%
Goodwill $1.357B $1.150B
YoY Change 17.95% 1.25%
Intangibles $184.0M $142.7M
YoY Change 29.0% -13.92%
Long-Term Investments $731.8M $731.2M
YoY Change 0.08% -17.05%
Other Assets $114.8M $90.81M
YoY Change 26.36% 0.86%
Total Long-Term Assets $3.251B $2.904B
YoY Change 11.93% -2.53%
TOTAL ASSETS
Total Short-Term Assets $1.238B $1.366B
Total Long-Term Assets $3.251B $2.904B
Total Assets $4.489B $4.270B
YoY Change 5.14% 3.36%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $91.74M $68.25M
YoY Change 34.42% -20.0%
Accrued Expenses $222.0M $234.0M
YoY Change -5.12% 13.95%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $399.1M $376.5M
YoY Change 5.98% 8.13%
LONG-TERM LIABILITIES
Long-Term Debt $651.4M $629.0M
YoY Change 3.56% 2.36%
Other Long-Term Liabilities $125.8M $99.75M
YoY Change 26.1% 25.09%
Total Long-Term Liabilities $125.8M $99.75M
YoY Change 26.1% 25.09%
TOTAL LIABILITIES
Total Short-Term Liabilities $399.1M $376.5M
Total Long-Term Liabilities $125.8M $99.75M
Total Liabilities $1.202B $1.119B
YoY Change 7.38% 3.08%
SHAREHOLDERS EQUITY
Retained Earnings -$822.0M -$1.128B
YoY Change -27.15% -22.36%
Common Stock $1.751M $1.791M
YoY Change -2.23% -0.78%
Preferred Stock
YoY Change
Treasury Stock (at cost) $177.6M $199.7M
YoY Change -11.06% 58.41%
Treasury Stock Shares 3.122M shares 3.952M shares
Shareholders Equity $3.287B $3.150B
YoY Change
Total Liabilities & Shareholders Equity $4.489B $4.270B
YoY Change 5.14% 3.36%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $56.75M $73.64M
YoY Change -22.93% 9.58%
Depreciation, Depletion And Amortization $89.20M $85.10M
YoY Change 4.82% 15.16%
Cash From Operating Activities $224.7M $244.3M
YoY Change -8.02% -7.5%
INVESTING ACTIVITIES
Capital Expenditures -$97.00M -$78.20M
YoY Change 24.04% -18.54%
Acquisitions
YoY Change
Other Investing Activities -$197.9M -$60.70M
YoY Change 226.03% -68.94%
Cash From Investing Activities -$294.9M -$138.8M
YoY Change 112.46% -52.35%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -105.5M -88.10M
YoY Change 19.75% 72.07%
NET CHANGE
Cash From Operating Activities 224.7M 244.3M
Cash From Investing Activities -294.9M -138.8M
Cash From Financing Activities -105.5M -88.10M
Net Change In Cash -175.7M 17.40M
YoY Change -1109.77% -122.19%
FREE CASH FLOW
Cash From Operating Activities $224.7M $244.3M
Capital Expenditures -$97.00M -$78.20M
Free Cash Flow $321.7M $322.5M
YoY Change -0.25% -10.44%

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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;">Commitments and Contingencies</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Legal Matters</font></div><div style="line-height:120%;text-align:left;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:24px;font-size:10pt;"><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 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. During the three and six months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;">, the Company received </font><font style="font-family:inherit;font-size:10pt;">$4.5 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$9.0 million</font><font style="font-family:inherit;font-size:10pt;">, respectively, under this agreement, of which </font><font style="font-family:inherit;font-size:10pt;">$4.1 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$8.1 million</font><font style="font-family:inherit;font-size:10pt;"> was recorded as a reduction to general and administrative expenses in the consolidated statement of income, respectively, and </font><font style="font-family:inherit;font-size:10pt;">$0.4 million</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$0.9 million</font><font style="font-family:inherit;font-size:10pt;"> was recorded as interest income, respectively. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In November 2015, Limelight filed a complaint in the U.S. District Court for the Eastern District of Virginia against the Company and XO Communications LLC (&#8220;XO&#8221;), alleging patent infringement by the </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> companies.&#160; The complaint alleges that the Company and XO infringed </font><font style="font-family:inherit;font-size:10pt;">six</font><font style="font-family:inherit;font-size:10pt;"> of Limelight&#8217;s content delivery patents.&#160;The complaint seeks to recover from the Company and XO monetary damages based upon lost revenue due to infringing technology used by the companies.&#160; The Company has agreed to indemnify XO for damages it incurs in this matter. The Company has made counterclaims in the action against Limelight alleging that Limelight has infringed </font><font style="font-family:inherit;font-size:10pt;">five</font><font style="font-family:inherit;font-size:10pt;"> of the Company&#8217;s content delivery patents, and the Company is seeking monetary damages based upon lost revenue due to the infringing technology used by Limelight.&#160; </font><font style="font-family:inherit;font-size:10pt;">No</font><font style="font-family:inherit;font-size:10pt;"> provision with respect to this matter has been made in the Company&#8217;s consolidated financial statements.&#160; An estimate of the possible loss or range of loss cannot be made.</font></div></div>

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