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Form 8-K - Q3 2013



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 25, 2013
 Progress Software Corporation
(Exact name of registrant as specified in its charter)
 
Commission file number: 0-19417
 
 
 
Massachusetts
04-2746201
(State or other jurisdiction of
incorporation or organization)
(I.R.S. employer
identification no.)
14 Oak Park
Bedford, Massachusetts 01730
(Address of principal executive offices, including zip code)
(781) 280-4000
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Section 2 – Financial Information

Item 2.02 Results of Operations and Financial Condition.

On September 25, 2013, Progress Software Corporation issued a press release announcing its financial results for the fiscal third quarter ended August 31, 2013. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not deemed incorporated by reference into any other filing of the company, whether made before or after the date of this report, regardless of any general incorporation language in the filing.
Non-GAAP Financial Measures – We disclosed non-GAAP financial measures in the press release. These non-GAAP measures include expenses, income from operations, income from continuing operations, earnings per share from continuing operations and operating margin. We provide non-GAAP financial measures to enhance the overall understanding of our current financial performance and prospects for the future as well as to enable investors to evaluate our performance in the same way that management does. We use these non-GAAP measures, and we believe that they assist our investors, to make period-to-period comparisons of our operational performance because they provide a view of our operating results without items that are not, in our view, indicative of our core operating results. Management uses these same non-GAAP financial measures to evaluate performance, allocate resources, and determine compensation. These non-GAAP financial measures are also utilized by analysts to calculate consensus estimates. However, non-GAAP information should not be construed as an alternative to GAAP information as the items excluded from the non-GAAP measures often have a material impact on our financial results. Management uses, and investors should consider, non-GAAP measures in conjunction with our GAAP results.

In the noted fiscal periods, we adjusted for the following items from our GAAP financial results to arrive at our non-GAAP financial measures:

•
Amortization of acquired intangibles – In all periods presented, we excluded amortization of acquired intangibles because such expenses are unrelated to our core operating performance and the intangible assets acquired vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses acquired.
•
Stock-based compensation – In all periods presented, we excluded stock-based compensation to be consistent with the way management and the financial community evaluates our performance and the methods used by analysts to calculate consensus estimates.
•
Restructuring expenses – In all periods presented, we excluded restructuring expenses incurred because such expenses distort trends and are not part of our core operating results.
•
Acquisition-related expenses – In the three and nine months ended August 31, 2013, we excluded acquisition-related expenses from our acquisition of Rollbase, Inc. because such expenses distort trends and are not part of our operating results. In the nine months ended August 31, 2012, we excluded acquisition-related expenses from our acquisition of Corticon Technologies, Inc. because such expenses distort trends and are not part of our core operating results.
•
Litigation settlement – In the nine months ended August 31, 2012, we excluded the cost to settle an existing patent infringement action brought by JuxtaComm because such expense distorts trends and is not part of our core operating results.
•
Proxy contest-related costs – In the three and nine months ended August 31, 2012, we excluded the costs incurred for legal and other advice associated with our 2012 Annual Meeting of Shareholders. We excluded these costs because they are not part of our core operating results.
•
Income tax adjustment – In all periods presented, we adjusted our income tax provision by excluding the tax impact of the non-GAAP adjustments discussed above.

Constant Currency – Revenue from our international operations has historically represented more than half of our total revenue. As a result, our revenue results have been impacted, and we expect will continue to be impacted, by fluctuations in foreign currency exchange rates. For example, if the local currencies of our foreign subsidiaries weaken, our consolidated results stated in U.S. dollars are negatively impacted.

As exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of revenue growth rates on a constant currency basis helps improve the ability to understand our revenue results and evaluate our performance in comparison to prior periods. The constant currency information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP.





Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.
Exhibit No.
 
Description
99.1
 
Press release issued by Progress Software Corporation dated September 25, 2013






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
Date:
September 25, 2013
Progress Software Corporation
 
 
 
 
 
 
By:
/s/ CHRIS E. PERKINS
 
 
 
Chris E. Perkins
 
 
 
Senior Vice President, Finance and Administration and Chief Financial Officer


Exhibit 99.1 - Q3 2013
 
Exhibit 99.1


P R E S S A N N O U N C E M E N T
Investor Contact:
 
Press Contact:
Brian Flanagan
 
Rick Lacroix
Progress Software
 
Progress Software
+1 781 280 4817
 
+1 781 280 4604
flanagan@progress.com
 
rlacroix@progress.com

Progress Software Reports 2013 Fiscal Third Quarter Results


BEDFORD, MA, September 25, 2013 (BUSINESSWIRE) — Progress Software Corporation (NASDAQ: PRGS), a global software company that simplifies and enables the development, deployment and management of business applications, today announced results for its fiscal third quarter ended August 31, 2013.

Revenue from continuing operations was $77.6 million compared to $74.4 million in the same quarter last year, a year over year increase of 4% on an actual and constant currency basis.

Additional financial highlights included:

On a GAAP basis in the fiscal third quarter of 2013:

•
Income from operations was $9.7 million compared to $11.3 million in the same quarter last year;
•
Income from continuing operations was $7.2 million compared to $7.7 million in the same quarter last year;
•
Net income was $24.8 million compared to $5.8 million in the same quarter last year, and includes the pre-tax gain on the divestiture of the Apama product line of $35.9 million; and
•
Diluted earnings per share from continuing operations was $0.13 compared to $0.12 in the same quarter last year.

On a non-GAAP basis in the fiscal third quarter of 2013:

•
Income from operations was $21.4 million compared to $17.8 million in the same quarter last year;
•
Operating margin was 28% compared to 24% in the same quarter last year;
•
Income from continuing operations was $14.7 million compared to $12.4 million in the same quarter last year; and
•
Diluted earnings per share from continuing operations was $0.27 compared to $0.19 in the same quarter last year.

Phil Pead, President and Chief Executive Officer of Progress Software, said, “Our third quarter performance continues to demonstrate solid progress as we execute on our strategic plan to be a leading Platform as a Service company. We exceeded our operating margin objectives and the announcement of Progress Pacific is resonating with our customers and partners. Revenue growth for the quarter was also positive as customers and partners continued to upgrade their existing applications and take advantage of new functionality across all of our solutions.”

Other fiscal third quarter 2013 metrics and recent results included:

•
Net cash received from the divestiture of the Apama product line was $37.7 million;
•
Under the previously announced and implemented 10b5-1 plan to repurchase $100.0 million of common stock by December 31, 2013, the company has repurchased 2.7 million shares for $67.9 million through August 31, 2013;
•
Cash, cash equivalents and short-term investments were $242.0 million;
•
Cash outflows from operations were $1.9 million, including $14.6 million in tax payments for the gain realized on the Apama product line divestiture, compared to cash inflows from operations of $22.0 million in the same quarter in fiscal year 2012; and
•
DSO from continuing operations was 62 days, compared to 56 days in the fiscal second quarter of 2013.


1

Business Outlook

Progress Software provides the following guidance for the fiscal fourth quarter ending November 30, 2013:

•
On a constant currency basis, revenue is expected to be between 4% and 6% growth compared to the fiscal fourth quarter of 2012; and
•
Non-GAAP operating margin is expected to be 35%.

The non-GAAP operating margin guidance excludes the items we traditionally exclude from our non-GAAP reporting metrics: amortization of intangible assets of $0.7 million, stock-based compensation of $5.4 million, and $1.0 million of acquisition related costs, for a GAAP operating margin of 27%.

Conference Call

The Progress Software quarterly investor conference call to review its fiscal third quarter of 2013 will be broadcast live at 5:00 p.m. ET on Wednesday, September 25, 2013 on the investor relations section of the company’s website, located at www.progress.com. Additionally, you can listen to the call by telephone by dialing 1-888-428-9480, pass code 9841658. The conference call will include only brief comments followed by questions and answers. An archived version of the conference call and supporting materials will be available on the Progress Software website within the investor relations section after the live conference call.

Legal Notice Regarding Non-GAAP Financial Information

Progress Software provides non-GAAP financial information as additional information for investors. These non-GAAP measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). Progress Software believes that the non-GAAP results described in this release are useful for an understanding of its ongoing operations and provide additional detail and an alternative method of assessing its operating results. Management uses these non-GAAP results to compare the company's performance to that of prior periods for analysis of trends and for budget and planning purposes. A reconciliation of non-GAAP adjustments to the company's GAAP financial results is included in the tables below. Additional information regarding the company's non-GAAP financial information is contained in the company's Current Report on Form 8-K filed with the Securities and Exchange Commission in connection with this press release, which is available on the Progress website at www.progress.com within the investor relations section.

Note Regarding Forward-Looking Statements

This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words like “believe,” “may,” “could,” “would,” “might,” “should,”“expect,” “intend,” “plan,” “target,” “anticipate” and “continue,” the negative of these words, other terms of similar meaning or the use of future dates.

Forward-looking statements in this press release include, but are not limited to, statements regarding
Progress's strategic plan; acquisitions; future revenue growth, operating margin and cost savings; product development, strategic partnering and marketing initiatives; the growth rates of certain markets; and other statements regarding the future operation, direction and success of Progress's business. There are a number of factors that could cause actual results or future events to differ materially from those anticipated by the forward-looking statements, including, without limitation:

(1) Market acceptance of Progress's strategic plan and product development initiatives; (2) pricing pressures and the competitive environment in the software industry and Platform-as-a-Service market; (3) Progress' ability to successfully manage transitions to new business models and markets, including our increased emphasis on a cloud and subscription strategy; (4) Progress's ability to make technology acquisitions and to realize the expected benefits and anticipated synergies from such acquisitions; (5) the continuing uncertainty in the U.S. and international economies, which could result in fewer sales of Progress's products and may otherwise harm Progress's business; (6) business and consumer use of the Internet and the continuing adoption of Cloud technologies; (7) the receipt and shipment of new orders; (8) Progress's ability to expand its relationships with channel partners and to manage the interaction of channel partners with its direct sales force; (9) the timely release of enhancements to Progress's products and customer acceptance of new products; (10) the positioning of Progress's products in its existing and new markets; (11) variations in the demand for professional services and technical support; (12)

2

Progress's ability to penetrate international markets and manage its international operations; and (13) changes in exchange rates. For further information regarding risks and uncertainties associated with Progress's business, please refer to Progress's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended November 30, 2012 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended February 28, 2013 and May 31, 2013. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.

Progress Software Corporation

Progress Software Corporation (NASDAQ: PRGS) is a global software company that simplifies the development, deployment and management of business applications on-premise or in the cloud, on any platform or device, to any data source, with enhanced performance, minimal IT complexity and low total cost of ownership. Progress Software can be reached at www.progress.com or 1-781-280-4000.

Progress is a trademark or registered trademarks of Progress Software Corporation or one of its subsidiaries or affiliates in the U.S. and other countries. Any other trademarks contained herein are the property of their respective owners.






3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

 
Three Months Ended
 
Nine Months Ended
(In thousands, except per share data)
August 31, 2013
 
August 31, 2012
 
% Change
 
August 31, 2013
 
August 31, 2012
 
% Change
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Software licenses
$
25,666

 
$
22,637

 
13
 %
 
$
84,920

 
$
72,816

 
17
 %
Maintenance and services
51,912

 
51,734

 
—
 %
 
158,096

 
158,154

 
—
 %
Total revenue
77,578

 
74,371

 
4
 %
 
243,016

 
230,970

 
5
 %
Costs of revenue:
 
 
 
 
 
 
 
 
 
 
 
Cost of software licenses
1,587

 
1,375

 
15
 %
 
5,033

 
4,117

 
22
 %
Cost of maintenance and services
6,403

 
7,974

 
(20
)%
 
21,043

 
22,013

 
(4
)%
Amortization of acquired intangibles
529

 
139

 
281
 %
 
811

 
522

 
55
 %
Total costs of revenue
8,519

 
9,488

 
(10
)%
 
26,887

 
26,652

 
1
 %
Gross profit
69,059

 
64,883

 
6
 %
 
216,129

 
204,318

 
6
 %
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
24,554

 
24,970

 
(2
)%
 
79,086

 
67,085

 
18
 %
Product development
14,615

 
12,631

 
16
 %
 
42,908

 
33,330

 
29
 %
General and administrative
13,660

 
14,375

 
(5
)%
 
42,390

 
47,789

 
(11
)%
Amortization of acquired intangibles
211

 
207

 
2
 %
 
549

 
622

 
(12
)%
Restructuring expenses
5,401

 
1,411

 
283
 %
 
9,127

 
6,147

 
48
 %
Acquisition-related expenses
957

 
—

 
100
 %
 
2,229

 
215

 
937
 %
Total operating expenses
59,398

 
53,594

 
11
 %
 
176,289

 
155,188

 
14
 %
Income from operations
9,661

 
11,289

 
(14
)%
 
39,840

 
49,130

 
(19
)%
Other (expense) income, net
177

 
357

 
(50
)%
 
(663
)
 
876

 
(176
)%
Income from continuing operations before income taxes
9,838

 
11,646

 
(16
)%
 
39,177

 
50,006

 
(22
)%
Provision for income taxes
2,634

 
3,902

 
(32
)%
 
14,018

 
17,546

 
(20
)%
Income from continuing operations
7,204

 
7,744

 
(7
)%
 
25,159

 
32,460

 
(22
)%
Income (loss) from discontinued operations, net
17,639

 
(1,906
)
 
1,025
 %
 
34,712

 
(21,041
)
 
265
 %
Net income
$
24,843

 
$
5,838

 
326
 %
 
$
59,871

 
$
11,419

 
424
 %
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
 
 
 
Basic:
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$
0.13

 
$
0.12

 
8
 %
 
$
0.45

 
$
0.52

 
(13
)%
Discontinued operations
0.33

 
(0.03
)
 
1,200
 %
 
0.63

 
(0.33
)
 
291
 %
Net income per share
$
0.46

 
$
0.09

 
411
 %
 
1.08

 
$
0.18

 
500
 %
Diluted:
 
 
 
 


 
 
 
 
 


Continuing operations
$
0.13

 
$
0.12

 
8
 %
 
$
0.45

 
$
0.51

 
(12
)%
Discontinued operations
0.32

 
(0.03
)
 
1,167
 %
 
0.62

 
(0.33
)
 
288
 %
Net income per share
$
0.46

 
$
0.09

 
411
 %
 
$
1.06

 
$
0.18

 
489
 %
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic
53,532

 
63,469

 
(16
)%
 
55,451

 
62,888

 
(12
)%
Diluted
54,389

 
64,105

 
(15
)%
 
56,292

 
63,795

 
(12
)%

4


CONDENSED CONSOLIDATED BALANCE SHEETS
 
(In thousands)
August 31,
2013
 
November 30, 2012
Assets
 
 
 
Current assets:
 
 
 
Cash, cash equivalents and short-term investments
$
241,982

 
$
355,217

Accounts receivable, net
53,620

 
70,793

Other current assets
40,035

 
32,779

Assets held for sale
—

 
68,029

Total current assets
335,637

 
526,818

Property and equipment, net
56,889

 
63,071

Goodwill and intangible assets, net
234,980

 
231,229

Other assets
59,084

 
63,859

Total assets
$
686,590

 
$
884,977

Liabilities and shareholders’ equity
 
 
 
Current liabilities:
 
 
 
Accounts payable and other current liabilities
$
67,236

 
$
110,944

Short-term deferred revenue
96,534

 
103,925

Liabilities held for sale
—

 
25,285

Total current liabilities
163,770

 
240,154

Long-term deferred revenue
1,044

 
2,817

Other long-term liabilities
2,421

 
3,607

Shareholders’ equity:
 
 
 
Common stock and additional paid-in capital
214,915

 
300,333

Retained earnings
304,440

 
338,066

Total shareholders’ equity
519,355

 
638,399

Total liabilities and shareholders’ equity
$
686,590

 
$
884,977




5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
 
Three Months Ended
 
Nine Months Ended
(In thousands)
August 31,
2013
 
August 31,
2012
 
August 31,
2013
 
August 31,
2012
Cash flows from operating activities:
 
 
 
 
 
 
 
Net income
$
24,843

 
$
5,838

 
$
59,871

 
$
11,419

Depreciation and amortization
3,897

 
8,390

 
11,374

 
25,369

Stock-based compensation
5,573

 
7,744

 
16,360

 
21,504

Net gains on sales of dispositions
(35,885
)
 
—

 
(70,991
)
 
—

Other non-cash adjustments
2,648

 
759

 
447

 
1,762

Changes in operating assets and liabilities
(2,937
)
 
(706
)
 
(30,340
)
 
15,660

Net cash flows from operating activities
(1,861
)
 
22,025

 
(13,279
)
 
75,714

Capital expenditures
(603
)
 
(465
)
 
(2,989
)
 
(6,606
)
Redemptions and sales of auction-rate-securities
—

 
2,700

 
25

 
2,925

Issuances of common stock, net of repurchases
(47,981
)
 
3,797

 
(192,075
)
 
24,284

Payments for acquisitions, net of cash acquired
—

 
—

 
(9,450
)
 
—

Proceeds from divestitures, net
37,739

 
—

 
111,120

 
—

Other
(1,116
)
 
(4,098
)
 
(6,587
)
 
(5,526
)
Net change in cash, cash equivalents and short-term investments
(13,822
)
 
23,959

 
(113,235
)
 
90,791

Cash, cash equivalents and short-term investments, beginning of period
255,804

 
328,248

 
355,217

 
261,416

Cash, cash equivalents and short-term investments, end of period
$
241,982

 
$
352,207

 
$
241,982

 
$
352,207



SUPPLEMENTAL INFORMATION

Revenue from continuing operations by Type
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Q3 2012
 
Q4 2012
 
Q1 2013
 
Q2 2013
 
Q3 2013
 
YTD 2013
 
YTD 2012
License
$
22,637

 
$
33,810

 
$
29,907

 
$
29,347

 
$
25,666

 
$
84,920

 
$
72,816

Maintenance
50,285

 
50,891

 
51,456

 
50,419

 
49,752

 
151,627

 
151,800

Professional services
1,449

 
1,941

 
2,370

 
1,939

 
2,160

 
6,469

 
6,354

Total revenue
$
74,371

 
$
86,642

 
$
83,733

 
$
81,705

 
$
77,578

 
$
243,016

 
$
230,970

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue from continuing operations by Region
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Q3 2012
 
Q4 2012
 
Q1 2013
 
Q2 2013
 
Q3 2013
 
YTD 2013
 
YTD 2012
North America
$
34,548

 
$
39,179

 
$
39,309

 
$
37,540

 
$
34,596

 
$
111,445

 
$
103,480

EMEA
28,155

 
33,214

 
32,548

 
33,481

 
32,315

 
98,344

 
92,352

Latin America
6,905

 
7,384

 
6,822

 
6,526

 
5,496

 
18,844

 
20,951

Asia Pacific
4,763

 
6,865

 
5,054

 
4,158

 
5,171

 
14,383

 
14,187

Total revenue
$
74,371

 
$
86,642

 
$
83,733

 
$
81,705

 
$
77,578

 
$
243,016

 
$
230,970









6

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES

 
Three Months Ended
 
Nine Months Ended
(In thousands, except per share data)
August 31,
2013
 
August 31,
2012
 
August 31,
2013
 
August 31,
2012
GAAP income from operations
$
9,661

 
$
11,289

 
$
39,840

 
$
49,130

GAAP operating margin
12
%
 
15
%
 
16
%
 
21
%
Amortization of acquired intangibles
740

 
346

 
1,360

 
1,144

Stock-based compensation (1)
4,600

 
4,759

 
14,070

 
14,058

Restructuring expenses
5,401

 
1,411

 
9,127

 
6,147

Acquisition-related expenses
957

 
—

 
2,229

 
215

Litigation settlement
—

 
—

 
—

 
900

Proxy contest-related costs
—

 
21

 
—

 
3,259

Total operating adjustments
11,698

 
6,537

 
26,786

 
25,723

Non-GAAP income from operations
$
21,359

 
$
17,826

 
$
66,626

 
$
74,853

Non-GAAP operating margin
28
%
 
24
%
 
27
%
 
32
%
 
 
 
 
 
 
 
 
GAAP income from continuing operations
$
7,204

 
$
7,744

 
$
25,159

 
$
32,460

Operating adjustments (from above)
11,698

 
6,537

 
26,786

 
25,723

Income tax adjustment
(4,230
)
 
(1,916
)
 
(8,399
)
 
(6,686
)
Total income from continuing operations adjustments
7,468

 
4,621

 
18,387

 
19,037

Non-GAAP income from continuing operations
$
14,672

 
$
12,365

 
$
43,546

 
$
51,497

 
 
 
 
 
 
 
 
GAAP diluted earnings per share from continuing operations
$
0.13

 
$
0.12

 
$
0.45

 
$
0.51

Income from continuing operations adjustments (from above)
0.14

 
0.07

 
0.33

 
0.30

Non-GAAP diluted earnings per share from continuing operations
$
0.27

 
$
0.19

 
$
0.77

 
$
0.81

 
 
 
 
 
 
 
 
Diluted weighted average shares outstanding
54,389

 
64,105

 
56,292

 
63,795

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Stock-based compensation is included in the GAAP statements of income, as follows:
 
 
 
 
 
 
 
 
Cost of revenue
$
133

 
$
157

 
$
500

 
$
589

Sales and marketing
748

 
701

 
2,668

 
2,848

Product development
999

 
861

 
3,687

 
2,375

General and administrative
2,720

 
3,040

 
7,215

 
8,246

Stock-based compensation from continuing operations
$
4,600

 
$
4,759

 
$
14,070

 
$
14,058



 
Three Months Ended
 
Nine Months Ended
(In thousands, except per share data)
August 31, 2013
 
August 31, 2012
 
August 31, 2013
 
August 31, 2012
GAAP costs of revenue
$
8,519

 
$
9,488

 
$
26,887

 
$
26,652

GAAP operating expenses
59,398

 
53,594

 
176,289

 
155,188

GAAP expenses
67,917

 
63,082

 
203,176

 
181,840

Operating adjustments (from above) 
11,698

 
6,537

 
26,786

 
25,723

Non-GAAP expenses
$
56,219

 
$
56,545

 
$
176,390

 
$
156,117

 
 
 
 
 
 
 
 


7