Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced financial results for its fiscal year 2012 third quarter ended November 30, 2011. Total revenue for the quarter was $290.0 million, an increase of 23% from the year ago quarter. Subscription revenue for the quarter was $246.5 million, up 24% year-over-year. "Red Hat continues to benefit from enterprise customers that are seeking to leverage their IT infrastructure to drive significant productivity gains and agility across their organizations. The combination of strong sales execution, market demand and market share gains contributed to organic billings and revenue growth of 23% for the quarter," stated Jim Whitehurst, President and Chief Executive Officer of Red Hat. "We also recently completed the acquisition and integration of Gluster, including the launch of our first Red Hat branded storage product for unstructured data. We will continue to expand our storage solutions in cloud computing and big data storage, and believe that Red Hat is well positioned to deliver disruptive solutions in the large and growing storage market." GAAP operating income for the third quarter was $53.6 million, or 18.5% operating margin. After adjusting for stock compensation and amortization expenses, as detailed in the tables below, non-GAAP operating income for the third quarter was $78.8 million, up 36% year-over-year. Non-GAAP operating margin was 27.2%, up 260 basis points from the year ago quarter. Net income for the quarter was $38.2 million, or $0.19 per diluted share, compared with $26.0 million, or $0.13 per diluted share, in the year ago quarter. After adjusting for stock compensation and amortization expenses, as detailed in the tables below, non-GAAP net income for the quarter was $55.7 million, or $0.28 per diluted share, as compared to $39.1 million, or $0.20 per diluted share, in the year ago quarter. Operating cash flow was $96.6 million for the third quarter, as compared to $70.8 million in the year ago quarter. At quarter end, the company's total deferred revenue balance was $819.6 million, an increase of 20% on a year-over-year basis. Total cash, cash equivalents and investments as of November 30, 2011 was $1.2 billion. "We continued to deliver consistent performance across our business which resulted in strong growth in our key financial metrics. At the same time, we continued to invest in strategic growth initiatives." stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. "When compared to the first three quarters of last fiscal year, our year-to-date revenue, non-GAAP operating income and operating cash flow are up 26%, 35% and 35%, respectively." Additional information on Red Hat's reported results, including a reconciliation of the non-GAAP adjusted results, are included in the financial tables below. A live webcast of Red Hat's results will begin at 5:00 pm ET today and can be accessed by the general public at Red Hat's investor relations website at http://investors.redhat.com. A replay of the webcast will be available shortly after the live event has ended. About Red Hat, Inc. Red Hat, the world's leading provider of open source solutions and an S&P 500 company, is headquartered in Raleigh, NC with more than 70 offices spanning the globe. Red Hat provides high-quality, affordable technology with its operating system platform, Red Hat Enterprise Linux, together with cloud, virtualization, management, storage and service-oriented architecture (SOA) solutions, including Red Hat Enterprise Virtualization and JBoss Enterprise Middleware. Red Hat also offers support, training and consulting services to its customers worldwide. Learn more: http://www.redhat.com. Forward-Looking Statements Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; uncertainty and adverse results in litigation and related settlements; the integration of acquisitions and the ability to market successfully acquired technologies and products; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company's growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission's website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as the earthquakes and floods, including events in Japan. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release. Red Hat Inc., Red Hat, the Shadowman logo and JBoss are registered trademarks of Red Hat in the U.S. and other countries. Linux is a registered trademark of Linus Torvalds.
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| RED HAT, INC. | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (In thousands - except per share amounts) | |||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||
| November 30, | November 30, | November 30, | November 30, | ||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
| Revenue: | |||||||||||||||||||||
| Subscriptions | $ | 246,538 | $ | 198,842 | $ | 710,408 | $ | 564,101 | |||||||||||||
| Training and services | 43,488 | 36,734 | 125,684 | 100,380 | |||||||||||||||||
| Total subscription, training and services revenue | 290,026 | 235,576 | 836,092 | 664,481 | |||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||
| Subscriptions | 17,041 | 13,336 | 48,876 | 38,256 | |||||||||||||||||
| Training and services | 28,148 | 26,408 | 85,399 | 70,427 | |||||||||||||||||
| Total cost of subscription, training and services revenue | 45,189 | 39,744 | 134,275 | 108,683 | |||||||||||||||||
| Total gross profit | 244,837 | 195,832 | 701,817 | 555,798 | |||||||||||||||||
| Operating expense: | |||||||||||||||||||||
| Sales and marketing | 107,561 | 85,138 | 304,617 | 239,136 | |||||||||||||||||
| Research and development | 53,739 | 43,083 | 153,515 | 126,102 | |||||||||||||||||
| General and administrative | 29,965 | 29,655 | 92,277 | 84,294 | |||||||||||||||||
| Total operating expense | 191,265 | 157,876 | 550,409 | 449,532 | |||||||||||||||||
| Income from operations | 53,572 | 37,956 | 151,408 | 106,266 | |||||||||||||||||
| Interest income | 2,075 | 1,608 | 6,138 | 5,046 | |||||||||||||||||
| Other income (loss), net | (227 | ) | 462 | (167 | ) | 2,140 | |||||||||||||||
| Income before provision for income taxes | 55,420 | 40,026 | 157,379 | 113,452 | |||||||||||||||||
| Provision for income taxes | 17,180 | 14,009 | 46,722 | 39,708 | |||||||||||||||||
| Net income | $ | 38,240 | $ | 26,017 | $ | 110,657 | $ | 73,744 | |||||||||||||
| Net income-diluted | $ | 38,240 | $ | 26,017 | $ | 110,657 | $ | 73,744 | |||||||||||||
| Net income per share: | |||||||||||||||||||||
| Basic | $ | 0.20 | $ | 0.14 | $ | 0.57 | $ | 0.39 | |||||||||||||
| Diluted | $ | 0.19 | $ | 0.13 | $ | 0.56 | $ | 0.38 | |||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||
| Basic | 193,393 | 191,296 | 193,162 | 189,410 | |||||||||||||||||
| Diluted | 196,468 | 196,908 | 196,493 | 195,723 | |||||||||||||||||
| RED HAT, INC. | |||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| (In thousands) | |||||||||||||||
| ASSETS | |||||||||||||||
| November 30, | February 28, | ||||||||||||||
| 2011 | 2011 (1) | ||||||||||||||
| (Unaudited) | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 526,665 | $ | 642,630 | |||||||||||
| Investments in debt and equity securities | 281,647 | 217,970 | |||||||||||||
| Accounts receivable, net | 206,449 | 184,741 | |||||||||||||
| Deferred tax assets, net | 69,460 | 75,720 | |||||||||||||
| Prepaid expenses | 67,422 | 62,364 | |||||||||||||
| Other current assets | 2,175 | 1,133 | |||||||||||||
| Total current assets | 1,153,818 | 1,184,558 | |||||||||||||
| Property and equipment, net | 83,925 | 75,558 | |||||||||||||
| Goodwill | 591,061 | 463,673 | |||||||||||||
| Identifiable intangibles, net | 104,566 | 109,932 | |||||||||||||
| Investments in debt securities | 408,455 | 331,791 | |||||||||||||
| Other assets, net | 38,449 | 33,810 | |||||||||||||
| Total assets | $ | 2,380,274 | $ | 2,199,322 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable | $ | 22,405 | $ | 16,285 | |||||||||||
| Accrued expenses | 101,107 | 90,229 | |||||||||||||
| Deferred revenue | 609,746 | 572,637 | |||||||||||||
| Other current obligations | 632 | 650 | |||||||||||||
| Total current liabilities | 733,890 | 679,801 | |||||||||||||
| Deferred lease credits | 5,058 | 5,215 | |||||||||||||
| Long term deferred revenue | 209,869 | 199,617 | |||||||||||||
| Other long term obligations | 24,060 | 23,990 | |||||||||||||
| Stockholders' equity: | |||||||||||||||
| Common stock | 23 | 22 | |||||||||||||
| Additional paid-in capital | 1,679,955 | 1,610,238 | |||||||||||||
| Retained earnings | 355,707 | 245,050 | |||||||||||||
| Treasury stock, at cost | (619,744 | ) | (562,792 | ) | |||||||||||
| Accumulated other comprehensive loss | (8,544 | ) | (1,819 | ) | |||||||||||
| Total stockholders' equity | 1,407,397 | 1,290,699 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 2,380,274 | $ | 2,199,322 | |||||||||||
| (1) derived from audited financial statements | |||||||||||||||
| RED HAT, INC. | ||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| November 30, | November 30, | November 30, | November 30, | |||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||||||
| Net income | $ | 38,240 | $ | 26,017 | $ | 110,657 | $ | 73,744 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by | ||||||||||||||||||||||||||
| Depreciation and amortization | 12,392 | 11,829 | 38,278 | 35,240 | ||||||||||||||||||||||
| Share-based compensation expense | 20,770 | 15,340 | 55,710 | 44,189 | ||||||||||||||||||||||
| Deferred income taxes | 17,015 | 7,911 | 36,225 | 29,697 | ||||||||||||||||||||||
| Excess tax benefits from share-based payment arrangements | (7,626 | ) | (10,800 | ) | (24,298 | ) | (31,999 | ) | ||||||||||||||||||
| Gain on sale of available-for-sale equity securities | - | (1,726 | ) | (1,307 | ) | (2,843 | ) | |||||||||||||||||||
| Other | (233 | ) | 673 | 757 | 789 | |||||||||||||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||||||||
| Accounts receivable | (35,014 | ) | (23,762 | ) | (23,429 | ) | (11,030 | ) | ||||||||||||||||||
| Prepaid expenses | (3,096 | ) | (4,613 | ) | (6,324 | ) | (9,357 | ) | ||||||||||||||||||
| Accounts payable | 6,585 | 5,544 | 6,209 | 2,662 | ||||||||||||||||||||||
| Accrued expenses | 15,621 | 16,343 | 15,386 | 24,595 | ||||||||||||||||||||||
| Deferred revenue | 32,046 | 26,803 | 56,167 | 39,184 | ||||||||||||||||||||||
| Other | (144 | ) | 1,261 | (159 | ) | 877 | ||||||||||||||||||||
| Net cash provided by operating activities | 96,556 | 70,820 | 263,872 | 195,748 | ||||||||||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||||||
| Purchase of available-for-sale debt securities | (329,730 | ) | (314,729 | ) | (731,016 | ) | (535,093 | ) | ||||||||||||||||||
| Proceeds from sales and maturities of available-for-sale debt securities | 196,991 | 191,259 | 578,267 | 605,388 | ||||||||||||||||||||||
| Proceeds from sales of available-for-sale equity securities | - | 1,843 | 1,346 | 3,000 | ||||||||||||||||||||||
| Acquisition of business, net of cash acquired | (135,210 | ) | (31,381 | ) | (135,210 | ) | (31,381 | ) | ||||||||||||||||||
| Purchase of strategic equity investments | (1,622 | ) | - | (2,622 | ) | - | ||||||||||||||||||||
| Purchase of developed technologies and other intangible assets | (643 | ) | (9,481 | ) | (4,245 | ) | (12,426 | ) | ||||||||||||||||||
| Purchase of property and equipment | (11,115 | ) | (10,079 | ) | (31,294 | ) | (25,171 | ) | ||||||||||||||||||
| Net cash provided by (used in) investing activities | (281,329 | ) | (172,568 | ) | (324,774 | ) | 4,317 | |||||||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||||||
| Excess tax benefits from share-based payment arrangements | 7,626 | 10,800 | 24,298 | 31,999 | ||||||||||||||||||||||
| Proceeds from exercise of common stock options | 7,139 | 24,654 | 15,552 | 80,353 | ||||||||||||||||||||||
| Purchase of treasury stock | - | - | (56,952 | ) | (79,355 | ) | ||||||||||||||||||||
| Payments related to net settlement of employee share-based compensation awards | (20,118 | ) | (14,899 | ) | (32,103 | ) | (23,089 | ) | ||||||||||||||||||
| Proceeds from other borrowings | 66 | 335 | 66 | 335 | ||||||||||||||||||||||
| Payments on other borrowings | (136 | ) | - | (825 | ) | (877 | ) | |||||||||||||||||||
| Net cash provided by (used in) financing activities | (5,423 | ) | 20,890 | (49,964 | ) | 9,366 | ||||||||||||||||||||
| Effect of foreign currency exchange rates on cash and cash equivalents | (20,597 | ) | 6,545 | (5,099 | ) | (2,635 | ) | |||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | (210,793 | ) | (74,313 | ) | (115,965 | ) | 206,796 | |||||||||||||||||||
| Cash and cash equivalents at beginning of the period | 737,458 | 669,227 | 642,630 | 388,118 | ||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 526,665 | $ | 594,914 | $ | 526,665 | $ | 594,914 | ||||||||||||||||||
| RED HAT, INC. | |||||||||||||||||||||||||
| RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| (In thousands - except per share amounts) | |||||||||||||||||||||||||
| Non cash share-based compensation expense included in Consolidated Statements of Operations: | |||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| November 30, | November 30, | November 30, | November 30, | ||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
| Cost of revenue | $ | 2,245 | $ | 1,607 | $ | 5,877 | $ | 4,168 | |||||||||||||||||
| Sales and marketing | 7,157 | 4,922 | 18,829 | 13,469 | |||||||||||||||||||||
| Research and development | 5,368 | 3,960 | 14,445 | 11,395 | |||||||||||||||||||||
| General and administration | 6,000 | 4,851 | 16,559 | 15,157 | |||||||||||||||||||||
| Total share-based compensation expense | $ | 20,770 | $ | 15,340 | $ | 55,710 | $ | 44,189 | |||||||||||||||||
| Amortization of intangible assets expense included in Consolidated Statements of Operations: | |||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| November 30, | November 30, | November 30, | November 30, | ||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
| Cost of revenue | $ | 669 | $ | 887 | $ | 2,864 | $ | 2,295 | |||||||||||||||||
| Sales and marketing | 1,957 | 2,076 | 5,874 | 6,237 | |||||||||||||||||||||
| Research and development | 940 | 925 | 3,254 | 2,775 | |||||||||||||||||||||
| General and administration | 905 | 839 | 2,616 | 2,494 | |||||||||||||||||||||
| Total amortization of intangible assets expense | $ | 4,471 | $ | 4,727 | $ | 14,608 | $ | 13,801 | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
| November 30, | November 30, | November 30, | November 30, | ||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||
| GAAP net income | $ | 38,240 | $ | 26,017 | $ | 110,657 | $ | 73,744 | |||||||||||||||||
| Provision for income taxes | 17,180 | 14,009 | 46,722 | 39,708 | |||||||||||||||||||||
| GAAP income before provision for income taxes | $ | 55,420 | $ | 40,026 | $ | 157,379 | $ | 113,452 | |||||||||||||||||
| Add: Non-cash share-based compensation expense | 20,770 | 15,340 | 55,710 | 44,189 | |||||||||||||||||||||
| Add: Amortization of intangible assets | 4,471 | 4,727 | 14,608 | 13,801 | |||||||||||||||||||||
| Non-GAAP adjusted income before provision for income taxes | $ | 80,661 | $ | 60,093 | $ | 227,697 | $ | 171,442 | |||||||||||||||||
| Provision for income taxes (1) | 25,005 | 21,033 | 68,521 | 60,005 | |||||||||||||||||||||
| Non-GAAP adjusted net income | $ | 55,656 | $ | 39,060 | $ | 159,176 | $ | 111,437 | |||||||||||||||||
| Non-GAAP adjusted net income-diluted | $ | 55,656 | $ | 39,060 | $ | 159,176 | $ | 111,437 | |||||||||||||||||
| Non-GAAP adjusted net income per share: | |||||||||||||||||||||||||
| Basic | $ | 0.29 | $ | 0.20 | $ | 0.82 | $ | 0.59 | |||||||||||||||||
| Diluted | $ | 0.28 | $ | 0.20 | $ | 0.81 | $ | 0.57 | |||||||||||||||||
| (1) Provision for income taxes: | |||||||||||||||||||||||||
| Non-GAAP adjusted net income before income tax provision | $ | 80,661 | $ | 60,093 | $ | 227,697 | $ | 171,442 | |||||||||||||||||
| Estimated annual effective tax rate | 31 | % | 35 | % | 31 | % | 35 | % | |||||||||||||||||
| Non-GAAP provision for income taxes before discrete tax benefit | $ | 25,005 | $ | 21,033 | $ | 70,586 | $ | 60,005 | |||||||||||||||||
| Discrete tax benefit | - | - | 2,065 | - | |||||||||||||||||||||
| Provision for income taxes on Non-GAAP adjusted net income | $ | 25,005 | $ | 21,033 | $ | 68,521 | $ | 60,005 | |||||||||||||||||
| RED HAT, INC. | ||||||||||||||||||||||
| RECONCILIATION OF CERTAIN GAAP RESULTS TO NON-GAAP ADJUSTED RESULTS | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In thousands - except per share amounts) | ||||||||||||||||||||||
| Reconciliation of GAAP results to non-GAAP adjusted results | ||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| November 30, | November 30, | November 30, | November 30, | |||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| GAAP gross profit | $ | 244,837 | $ | 195,832 | $ | 701,817 | $ | 555,798 | ||||||||||||||
| Add: Non-cash share-based compensation expense | 2,245 | 1,607 | 5,877 | 4,168 | ||||||||||||||||||
| Add: Amortization of intangible assets | 669 | 887 | 2,864 | 2,295 | ||||||||||||||||||
| Non-GAAP gross profit | $ | 247,751 | $ | 198,326 | $ | 710,558 | $ | 562,261 | ||||||||||||||
| Non-GAAP gross margin | 85 | % | 84 | % | 85 | % | 85 | % | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| November 30, | November 30, | November 30, | November 30, | |||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| GAAP operating expenses | $ | 191,265 | $ | 157,876 | $ | 550,409 | $ | 449,532 | ||||||||||||||
| Deduct: Non-cash share-based compensation expense | (18,525 | ) | (13,733 | ) | (49,833 | ) | (40,021 | ) | ||||||||||||||
| Deduct: Amortization of intangible assets | (3,802 | ) | (3,840 | ) | (11,744 | ) | (11,506 | ) | ||||||||||||||
| Non-GAAP adjusted operating expenses | $ | 168,938 | $ | 140,303 | $ | 488,832 | $ | 398,005 | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| November 30, | November 30, | November 30, | November 30, | |||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
| GAAP operating income | $ | 53,572 | $ | 37,956 | $ | 151,408 | $ | 106,266 | ||||||||||||||
| Add: Non-cash share-based compensation expense | 20,770 | 15,340 | 55,710 | 44,189 | ||||||||||||||||||
| Add: Amortization of intangible assets | 4,471 | 4,727 | 14,608 | 13,801 | ||||||||||||||||||
| Non-GAAP adjusted operating income | $ | 78,813 | $ | 58,023 | $ | 221,726 | $ | 164,256 | ||||||||||||||
| Non-GAAP adjusted operating margin | 27.2 | % | 24.6 | % | 26.5 | % | 24.7 | % | ||||||||||||||
Media Contact:
Red Hat Inc.
Leigh Day, 919-754-4369
lday@redhat.com
or
Investor Relations:
Red Hat Inc.
Tom McCallum, 919-754-4630
tmccallum@redhat.com
- About Red Hat
Red Hat is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers award-winning support, training, and consulting services. As the connective hub in a global network of enterprises, partners, and open source communities, Red Hat helps create relevant, innovative technologies that liberate resources for growth and prepare customers for the future of IT. Learn more at http://www.redhat.com.
- Forward-Looking Statements
Certain statements contained in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: risks related to delays or reductions in information technology spending; the effects of industry consolidation; the ability of the Company to compete effectively; the integration of acquisitions and the ability to market successfully acquired technologies and products; uncertainty and adverse results in litigation and related settlements; the inability to adequately protect Company intellectual property and the potential for infringement or breach of license claims of or relating to third party intellectual property; the ability to deliver and stimulate demand for new products and technological innovations on a timely basis; risks related to data and information security vulnerabilities; ineffective management of, and control over, the Company’s growth and international operations; fluctuations in exchange rates; and changes in and a dependence on key personnel, as well as other factors contained in our most recent Quarterly Report on Form 10-Q (copies of which may be accessed through the Securities and Exchange Commission’s website at http://www.sec.gov), including those found therein under the captions "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations". In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic and political conditions, governmental and public policy changes and the impact of natural disasters such as earthquakes and floods. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.
