Revenue Increased 1% in the Fourth Quarter and 5% for the Full Year Compared to 2008
Adjusted EBITDA Increased 19% in the Fourth Quarter and 8% for the Full Year Compared to 2008
Company Completes the Acquisition of PM Systems Corporation
NORCROSS, Ga., March 4, 2010 (GLOBE NEWSWIRE) -- S1 Corporation (Nasdaq:SONE), a leading global provider of payments and financial services software solutions, today announced financial results for the fourth quarter and the full year ended December 31, 2009:
- Total revenue in the fourth quarter of 2009 increased one percent to $59.5 million from $58.6 million in the fourth quarter of 2008. Total revenue for the year ended December 31, 2009 increased five percent to $238.9 million from $228.4 million in 2008.
- GAAP earnings were $9.9 million or $0.18 per share (diluted) in the fourth quarter of 2009 compared to GAAP earnings of $5.3 million or $0.10 per share (diluted) in the fourth quarter of 2008. GAAP earnings were $30.4 million or $0.55 per share (diluted) for the year ended December 31, 2009, a $0.17 increase over GAAP earnings of $21.9 million or $0.38 per share (diluted) in 2008. These figures include stock-based compensation expense of $1.2 million and $3.5 million in the fourth quarters of 2009 and 2008, respectively, and $1.6 million and $8.1 million for the years ended December 31, 2009 and 2008, respectively.
- Adjusted EBITDA in the fourth quarter of 2009 was $12.5 million compared to $10.5 million in the fourth quarter of 2008. Adjusted EBITDA for the year ended December 31, 2009 was $46.4 million compared to $43.0 million in 2008. Adjusted EBITDA does not include stock-based compensation expense and is described below and reconciled to U.S. GAAP Net income in Tables 4, 5 and 6.
- Total revenue from international operations in the fourth quarter of 2009 increased eight percent to $16.8 million from $15.5 million in the fourth quarter of 2008. Total revenue from international operations for the year ended December 31, 2009 increased seven percent to $68.1 million from $63.8 million in 2008.
- Excluding the State Farm relationship, the Company's revenue and Adjusted EBITDA grew 8% and 21%, respectively, in 2009.
- Under a previously announced stock repurchase program, the Company repurchased 752 thousand shares of its common stock for $4.6 million during the fourth quarter of 2009, and 1.5 million shares for $9.6 million during the year ended December 31, 2009. As of December 31, 2009, the Company had $61.8 million in cash and cash equivalents.
- On March 4, 2010, the Company completed the acquisition of PM Systems Corporation (PMSC), a provider of internet banking, bill pay and security solutions for credit unions in the United States, for approximately $28.9 million in cash, net of cash acquired. PMSC currently serves approximately 900,000 Internet banking subscribers through its credit union clients representing approximately 4.4 million members. The acquisition was funded from the Company's available cash.
- The Company expects PMSC to generate revenue and Adjusted EBITDA of approximately $11.8 million and $3.5 million, respectively, during calendar year 2010. Net of transaction costs and other adjustments, the Company expects PMSC to generate revenue and Adjusted EBITDA of approximately $9.6 million and $2.4 million, respectively, for the Company during the remainder of 2010.
- In 2010, after giving effect to the PMSC acquisition, the Company expects to generate revenue of $248 to $254 million, Adjusted EBITDA of $43 to $47 million, and Cash earnings per share of $0.51 to $0.57. Excluding the State Farm relationship and excluding the acquisition of PMSC, at the mid-point of the Company's guidance, the Company expects revenue and Adjusted EBITDA to increase approximately 7% and 14%, respectively, in 2010 as compared to 2009.
"The Company performed well in 2009 in a difficult marketplace," commented Johann Dreyer, Chief Executive Officer of S1. "As we look ahead, we expect that market conditions will remain challenging in 2010. However, we continue to see excellent sales opportunities globally, particularly with our payments and cash management offerings. As our relationship with State Farm winds-down through the end of 2011, we will be focusing on replacing the professional services revenue generated from that engagement with software license, subscription and other recurring revenue. We will also continue to focus on making investments in product development and customer satisfaction initiatives to further position the Company for sustained growth and success."
"We are excited to welcome PMSC to the S1 family," Dreyer added. "PMSC has built an extremely impressive reputation for providing the highest quality products, services and customer support to credit unions in the U.S. With affordable, best-of-breed technology and a deep understanding of the opportunities and challenges credit unions are facing, PMSC will help S1 more effectively serve the unique needs of this marketplace. In addition, PMSC's recurring revenue model will be a nice addition to our financial profile."
Raymond James & Associates, Inc. served as the Company's financial advisor in connection with the rendering of a fairness opinion as to the acquisition of PMSC.
Non-GAAP Measures and Reconciliation to U.S. GAAP
Our results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). In addition to U.S. GAAP financial measures, we use non-GAAP measures to evaluate our financial performance, assist management decisions, and in communications with our Board of Directors, stockholders, analysts and investors concerning our financial performance. Although we believe that our presentation of non-GAAP financial measures provide useful supplemental information to investors regarding our results of operations, our non-GAAP financial measures should only be considered in addition to, and not as a substitute for or superior to, our financial measures prepared in accordance with U.S. GAAP. The use of non-GAAP financial measures is subject to inherent limitations because they do not include all the expenses that must be included under U.S. GAAP and because they involve the exercise of judgment of which charges should properly be excluded from the non-GAAP financial measure. Management accounts for these limitations by not relying exclusively on non-GAAP financial measures, but only using such information to supplement U.S. GAAP financial results. Our non-GAAP financial measures may be different from such measures used by other companies.
We are presenting Adjusted EBITDA, a non-GAAP financial measure, below and reconciling to the most directly comparable U.S. GAAP equivalent of which is Net income. We define Adjusted EBITDA as Net income plus interest and other expense (income), plus income taxes, depreciation, amortization of intangibles, and stock-based compensation expense. We believe that excluding depreciation, amortization, stock-based compensation expense, net interest income and income tax expense provides supplemental information and an alternative presentation useful to investors understanding our core operating results and trends. Not only are depreciation and amortization expenses based on historical costs of assets that may have little bearing on present or future replacement costs, but they are also based on management estimates of remaining useful lives. Additionally, while stock-based compensation is an important part of overall compensation expense, a portion of our stock-based compensation expense is the result of cash-settled stock appreciation rights that are revalued each quarter for U.S. GAAP earnings based in part on the closing price of our stock on the last day of the quarter. Consequently, fluctuations in our stock price can have a significant impact on our reported U.S. GAAP earnings. See Tables 4, 5 and 6 for reconciliations of non-GAAP Adjusted EBITDA to U.S. GAAP Net income.
We are presenting Cash earnings per share, a non-GAAP financial measure, below and reconciling to the most directly comparable U.S. GAAP equivalent of which is Net income and earnings per share. We define Cash earnings as Net income minus amortization of intangibles, stock-based compensation and deferred income taxes. We calculate Cash earnings per share by adding back the per share impact of adjustments from diluted earnings per share. We believe Cash earnings per share is a useful financial measure which provides supplemental information and an alternative presentation useful to investors understanding trends of our income. Amortization of intangibles are generally expensed over several periods and may not be indicative of current cash expenditures. We believe the exclusion of stock-based compensation provides useful supplemental information to help understand the changes in our earnings per share due to the fluctuations of our cash-settled stock appreciation rights included in stock compensation. We exclude the impact of deferred income taxes on earnings as the temporary differences and the changes in valuation allowances may be misleading for trend analysis. See Table 1 for reconciliation of non-GAAP Cash earnings per share to U.S. GAAP Diluted earnings per share.
Conference Call Information
Company management will host a conference call for interested parties to discuss its fourth quarter and full year 2009 results on Friday, March 5, 2010, at 8:30 a.m. ET. A webcast of the call will be available through the Company's website, www.s1.com. The conference call will contain forward-looking statements and other material information. A replay of the call will be available for two weeks following the call on the Company's website.
About S1 Corporation
Leading banks, credit unions, retailers, and processors need technology that adapts to the complex and challenging needs of their businesses. These organizations want solutions that can respond quickly to changes in the marketplace and help grow their businesses. For more than 20 years, S1 Corporation (Nasdaq:SONE) has been a leader in developing software products that offer flexibility and reliability. Over 3,000 organizations worldwide depend on S1 for payments, online banking, mobile banking, voice banking, branch banking and lending solutions that deliver a competitive advantage. www.s1.com
Forward Looking Statements
This press release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act. These statements include statements with respect to our financial condition, results of operations and business. The words "believes," "expects," "may," "will," "should," "projects," "contemplates," "anticipates," "forecasts," "intends" or similar terminology identify forward-looking statements. Forward-looking statements may include projections of our revenue, expenses, Adjusted EBITDA, capital expenditures, earnings per share, product development projects, future economic performance or management objectives. These statements, including without limitation statements regarding expected revenue and Adjusted EBITDA from PMSC, are based on our beliefs as well as assumptions made using information currently available to us. Because these statements reflect our current views concerning future events, they involve risks, uncertainties and assumptions. Therefore, actual results may differ significantly from the results discussed in the forward-looking statements. The risk factors included in our reports filed with the Securities and Exchange Commission (and available on our web site at www.s1.com or the SEC's web site at www.sec.gov) provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Except as provided by law, we undertake no obligation to update any forward-looking statement for any reason, even if new information becomes available.
S1 Corporation | ||||
Consolidated Statements of Operations | ||||
(In thousands, except share and per share data) | ||||
(Unaudited) | ||||
TABLE 1 | ||||
Three Months Ended | Twelve Months Ended | |||
12/31/2009 | 12/31/2008 | 12/31/2009 | 12/31/2008 | |
Revenue: | ||||
Software licenses | $ 8,978 | $ 9,211 | $ 35,196 | $ 30,230 |
Support and maintenance | 15,905 | 13,906 | 59,602 | 53,779 |
Professional services | 22,013 | 22,673 | 94,965 | 92,470 |
Data center | 12,564 | 12,835 | 49,164 | 51,956 |
Total revenue | 59,460 | 58,625 | 238,927 | 228,435 |
Operating expenses: | ||||
Cost of software licenses (1) | 453 | 911 | 3,188 | 3,986 |
Cost of professional services, support and maintenance (1) | 18,189 | 19,148 | 74,186 | 74,095 |
Cost of data center (1) | 6,978 | 6,707 | 28,147 | 26,408 |
Selling and marketing | 7,582 | 10,513 | 30,725 | 36,432 |
Product development | 8,478 | 7,831 | 34,619 | 29,271 |
General and administrative | 6,675 | 6,914 | 24,864 | 25,826 |
Depreciation and amortization of intangible assets | 2,295 | 2,381 | 9,593 | 9,066 |
Total operating expenses | 50,650 | 54,405 | 205,322 | 205,084 |
Operating income | 8,810 | 4,220 | 33,605 | 23,351 |
Interest income | 99 | 288 | 433 | 2,052 |
Interest expense | (200) | (182) | (721) | (855) |
Other non-operating expenses | (83) | (67) | (930) | (444) |
Interest and other (expense) income, net | (184) | 39 | (1,218) | 753 |
Income before income tax benefit (expense) | 8,626 | 4,259 | 32,387 | 24,104 |
Income tax benefit (expense) | 1,312 | 1,074 | (1,964) | (2,254) |
Net income | $ 9,938 | $ 5,333 | $ 30,423 | $ 21,850 |
Earnings per share: | ||||
Basic | $ 0.18 | $ 0.10 | $ 0.56 | $ 0.38 |
Diluted | $ 0.18 | $ 0.10 | $ 0.55 | $ 0.38 |
Weighted average common shares outstanding - basic | 52,040,660 | 53,220,794 | 52,583,832 | 55,734,103 |
Weighted average common shares outstanding - diluted | 52,692,876 | 53,856,269 | 53,290,836 | 56,449,371 |
Reconciliation to Cash earnings per share: | ||||
Diluted earnings per share | $ 0.18 | $ 0.10 | $ 0.55 | $ 0.38 |
Amortization of intangibles | 0.01 | 0.01 | 0.05 | 0.06 |
Stock based compensation expense | 0.02 | 0.06 | 0.03 | 0.14 |
Deferred income taxes | (0.05) | (0.03) | (0.05) | (0.03) |
Non-GAAP Cash earnings per share | $ 0.16 | $ 0.14 | $ 0.58 | $ 0.55 |
(1) Excludes charges for depreciation. Cost of software licenses includes amortization of acquired technology. | ||||
S1 Corporation | ||
Consolidated Balance Sheets | ||
(In thousands, except share data) | ||
(Unaudited) | ||
TABLE 2 | ||
December 31, | December 31, | |
2009 | 2008 | |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 61,784 | $ 63,840 |
Accounts receivable, net | 64,470 | 42,561 |
Prepaid expenses | 4,729 | 5,123 |
Other current assets | 4,931 | 3,575 |
Total current assets | 135,914 | 115,099 |
Property and equipment, net | 23,018 | 23,015 |
Intangible assets, net | 4,895 | 7,585 |
Goodwill, net | 126,605 | 124,362 |
Other assets | 9,634 | 8,625 |
Total assets | $ 300,066 | $ 278,686 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Accounts payable and accrued expenses | $ 7,707 | $ 7,902 |
Accrued compensation and benefits | 11,569 | 16,147 |
Current portion of debt obligation | 1,170 | 3,917 |
Accrued restructuring | 2,096 | 2,323 |
Income taxes payable | 1,586 | 2,617 |
Deferred revenues | 26,837 | 25,271 |
Other current liabilities | 2,007 | 1,118 |
Total current liabilities | 52,972 | 59,295 |
Debt obligation, excluding current portion | 5,026 | 6,196 |
Accrued restructuring, excluding current portion | 1,381 | 3,443 |
Other liabilities | 2,046 | 1,012 |
Total liabilities | $ 61,425 | $ 69,946 |
Stockholders' equity: | ||
Preferred stock | 10,000 | 10,000 |
Common stock | 517 | 528 |
Additional paid-in capital | 1,787,772 | 1,791,924 |
Accumulated deficit | (1,557,534) | (1,587,957) |
Accumulated other comprehensive loss | (2,114) | (5,755) |
Total stockholders' equity | 238,641 | 208,740 |
Total liabilities and stockholders' equity | $ 300,066 | $ 278,686 |
Preferred shares issued and outstanding | 749,064 | 749,064 |
Common shares issued and outstanding | 51,712,710 | 52,799,310 |
S1 Corporation | ||||
Consolidated Statements of Cash Flows | ||||
(In thousands) | ||||
(Unaudited) | ||||
TABLE 3 | ||||
Three Months Ended | Twelve Months Ended | |||
12/31/2009 | 12/31/2008 | 12/31/2009 | 12/31/2008 | |
Cash flows from operating activities: | ||||
Net income | $ 9,938 | $ 5,333 | $ 30,423 | $ 21,850 |
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
Depreciation and amortization | 2,520 | 2,839 | 11,170 | 11,591 |
Provision for doubtful accounts receivable and billing adjustments | 461 | (183) | 995 | 159 |
Deferred income taxes | (3,052) | (1,895) | (2,812) | (1,895) |
Other than temporary impairments of investments | -- | 468 | -- | 663 |
Stock based compensation expense | 1,181 | 3,487 | 1,602 | 8,092 |
Changes in assets and liabilities | ||||
(Increase) decrease in accounts receivable | (8,470) | 1,199 | (22,396) | (3,095) |
Decrease (increase) in prepaid expenses and other assets | 498 | (1,299) | 792 | (231) |
Decrease in accounts payable and other liabilities | (8) | (4,524) | (920) | (6,250) |
(Decrease) increase in accrued compensation and benefits | (1,584) | 536 | (2,711) | 2,106 |
(Decrease) increase in income taxes payable | (499) | 335 | (1,437) | 2,434 |
(Decrease) increase in deferred revenues | (4,100) | (3,330) | 1,329 | (1,277) |
Net cash (used in) provided by operating activities | (3,115) | 2,966 | 16,035 | 34,147 |
Cash flows from investing activities: | ||||
Maturities of investment securities | 3,224 | 3,591 | 5,728 | 24,244 |
Purchases of investment securities | -- | -- | (3,224) | (3,447) |
Purchases of restricted investment securities | -- | -- | (2,000) | -- |
Amounts released from escrow related to sale of business | -- | -- | -- | 3,712 |
Purchases of property, equipment and technology | (1,828) | (1,471) | (8,192) | (8,744) |
Net cash provided by (used in) investing activities | 1,396 | 2,120 | (7,688) | 15,765 |
Cash flows from financing activities: | ||||
Proceeds from exercise of employee stock awards | 1,149 | 447 | 1,341 | 1,305 |
Payments on capital leases and debt obligations | (996) | (933) | (3,917) | (3,718) |
Repurchase and retirement of common stock | (4,625) | (14,908) | (9,596) | (25,075) |
Net cash used in financing activities | (4,472) | (15,394) | (12,172) | (27,488) |
Effect of exchange rate changes on cash and cash equivalents | 568 | (1,238) | 1,769 | (3,595) |
Net (decrease) increase in cash and cash equivalents | (5,623) | (11,546) | (2,056) | 18,829 |
Cash and cash equivalents at beginning of period | 67,407 | 75,386 | 63,840 | 45,011 |
Cash and cash equivalents at end of period | $ 61,784 | $ 63,840 | $ 61,784 | $ 63,840 |
S1 Corporation | ||||
Consolidated Statements of Operations | ||||
(In thousands) | ||||
(Unaudited) | ||||
TABLE 4 | ||||
Three Months Ended | Twelve Months Ended | |||
12/31/2009 | 12/31/2008 | 12/31/2009 | 12/31/2008 | |
Revenue: | ||||
Software licenses | $ 8,978 | $ 9,211 | $ 35,196 | $ 30,230 |
Support and maintenance | 15,905 | 13,906 | 59,602 | 53,779 |
Professional services | 22,013 | 22,673 | 94,965 | 92,470 |
Data center | 12,564 | 12,835 | 49,164 | 51,956 |
Total revenue | 59,460 | 58,625 | 238,927 | 228,435 |
Operating expenses: | ||||
Cost of software licenses | 453 | 911 | 3,188 | 3,986 |
Cost of professional services, support and maintenance | 18,189 | 19,148 | 74,186 | 74,095 |
Cost of data center | 6,978 | 6,707 | 28,147 | 26,408 |
Selling and marketing | 7,582 | 10,513 | 30,725 | 36,432 |
Product development | 8,478 | 7,831 | 34,619 | 29,271 |
General and administrative | 6,675 | 6,914 | 24,864 | 25,826 |
Depreciation and amortization of intangible assets | 2,295 | 2,381 | 9,593 | 9,066 |
Total operating expenses (1) | 50,650 | 54,405 | 205,322 | 205,084 |
Operating income | 8,810 | 4,220 | 33,605 | 23,351 |
Interest income | 99 | 288 | 433 | 2,052 |
Interest expense | (200) | (182) | (721) | (855) |
Other non-operating expenses | (83) | (67) | (930) | (444) |
Interest and other (expense) income, net | (184) | 39 | (1,218) | 753 |
Income before income tax benefit (expense) | 8,626 | 4,259 | 32,387 | 24,104 |
Income tax benefit (expense) | 1,312 | 1,074 | (1,964) | (2,254) |
Net income | $ 9,938 | $ 5,333 | $ 30,423 | $ 21,850 |
Reconciliation to Adjusted EBITDA: | ||||
Net income | $ 9,938 | $ 5,333 | $ 30,423 | $ 21,850 |
Interest and other (expense) income, net | 184 | (39) | 1,218 | (753) |
Income tax (benefit) expense | (1,312) | (1,074) | 1,964 | 2,254 |
Depreciation | 2,023 | 2,099 | 8,480 | 7,936 |
Amortization | 497 | 740 | 2,690 | 3,655 |
Stock based compensation expense | 1,181 | 3,487 | 1,602 | 8,092 |
Non-GAAP Adjusted EBITDA | $ 12,511 | $ 10,546 | $ 46,377 | $ 43,034 |
(1) Includes stock based compensation expense of: | ||||
Cost of professional services, support and maintenance | $ 94 | $ 240 | $ 161 | $ 344 |
Cost of data center | 37 | 24 | 115 | 100 |
Selling and marketing | 191 | 1,348 | (246) | 2,949 |
Product development | 112 | 435 | 254 | 1,034 |
General and administrative | 747 | 1,440 | 1,318 | 3,665 |
Stock based compensation expense | $ 1,181 | $ 3,487 | $ 1,602 | $ 8,092 |
S1 Corporation | ||||
Enterprise Segment | ||||
Statements of Operations | ||||
(In thousands) | ||||
(Unaudited) | ||||
TABLE 5 | ||||
Three Months Ended | Twelve Months Ended | |||
12/31/2009 | 12/31/2008 | 12/31/2009 | 12/31/2008 | |
Revenue: | ||||
Software licenses | $ 3,150 | $ 3,072 | $ 9,003 | $ 7,848 |
Support and maintenance | 5,745 | 4,845 | 21,299 | 18,196 |
Professional services | 15,605 | 16,590 | 70,770 | 71,525 |
Data center | 7,106 | 7,376 | 28,289 | 28,780 |
Total revenue | 31,606 | 31,883 | 129,361 | 126,349 |
Operating expenses: | ||||
Cost of software licenses | 135 | 351 | 798 | 1,339 |
Cost of professional services, support and maintenance | 9,533 | 11,545 | 42,300 | 44,890 |
Cost of data center | 3,762 | 3,911 | 15,814 | 15,606 |
Selling and marketing | 3,027 | 4,238 | 12,272 | 15,852 |
Product development | 5,180 | 5,075 | 21,071 | 18,229 |
General and administrative | 3,412 | 3,849 | 12,579 | 13,990 |
Depreciation and amortization of intangible assets | 1,128 | 1,222 | 4,833 | 4,614 |
Total operating expenses (1) | 26,177 | 30,191 | 109,667 | 114,520 |
Operating income | $ 5,429 | $ 1,692 | $ 19,694 | $ 11,829 |
Reconciliation to Adjusted EBITDA: | ||||
Operating income | $ 5,429 | $ 1,692 | $ 19,694 | $ 11,829 |
Depreciation | 1,128 | 1,222 | 4,833 | 4,614 |
Amortization | 62 | 61 | 246 | 330 |
Stock based compensation expense | 618 | 2,094 | 746 | 5,028 |
Non-GAAP Adjusted EBITDA | $ 7,237 | $ 5,069 | $ 25,519 | $ 21,801 |
(1) Includes stock based compensation expense of: | ||||
Cost of professional services, support and maintenance | $ 39 | $ 37 | $ 156 | $ 126 |
Cost of data center | 11 | 6 | 30 | 36 |
Selling and marketing | 102 | 932 | (416) | 2,024 |
Product development | 75 | 377 | 80 | 855 |
General and administrative | 391 | 742 | 896 | 1,987 |
Stock based compensation expense | $ 618 | $ 2,094 | $ 746 | $ 5,028 |
S1 Corporation | ||||
Postilion Segment | ||||
Statements of Operations | ||||
(In thousands) | ||||
(Unaudited) | ||||
TABLE 6 | ||||
Three Months Ended | Twelve Months Ended | |||
12/31/2009 | 12/31/2008 | 12/31/2009 | 12/31/2008 | |
Revenue: | ||||
Software licenses | $ 5,828 | $ 6,139 | $ 26,193 | $ 22,382 |
Support and maintenance | 10,160 | 9,061 | 38,303 | 35,583 |
Professional services | 6,408 | 6,083 | 24,195 | 20,945 |
Data center | 5,458 | 5,459 | 20,875 | 23,176 |
Total revenue | 27,854 | 26,742 | 109,566 | 102,086 |
Operating expenses: | ||||
Cost of software licenses | 318 | 560 | 2,390 | 2,647 |
Cost of professional services, support and maintenance | 8,656 | 7,603 | 31,886 | 29,205 |
Cost of data center | 3,216 | 2,796 | 12,333 | 10,802 |
Selling and marketing | 4,555 | 6,275 | 18,453 | 20,580 |
Product development | 3,298 | 2,756 | 13,548 | 11,042 |
General and administrative | 3,263 | 3,065 | 12,285 | 11,836 |
Depreciation and amortization of intangible assets | 1,167 | 1,159 | 4,760 | 4,452 |
Total operating expenses (1) | 24,473 | 24,214 | 95,655 | 90,564 |
Operating income | $ 3,381 | $ 2,528 | $ 13,911 | $ 11,522 |
Reconciliation to Adjusted EBITDA: | ||||
Operating income | $ 3,381 | $ 2,528 | $ 13,911 | $ 11,522 |
Depreciation | 895 | 877 | 3,647 | 3,322 |
Amortization | 435 | 679 | 2,444 | 3,325 |
Stock based compensation expense | 563 | 1,393 | 856 | 3,064 |
Non-GAAP Adjusted EBITDA | $ 5,274 | $ 5,477 | $ 20,858 | $ 21,233 |
(1) Includes stock based compensation expense of: | ||||
Cost of professional services, support and maintenance | $ 55 | $ 203 | $ 5 | $ 218 |
Cost of data center | 26 | 18 | 85 | 64 |
Selling and marketing | 89 | 416 | 170 | 925 |
Product development | 37 | 58 | 174 | 179 |
General and administrative | 356 | 698 | 422 | 1,678 |
Stock based compensation expense | $ 563 | $ 1,393 | $ 856 | $ 3,064 |