AuthenTec Reports Second Quarter 2012 Financial Results






AuthenTec, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Table 1
			Three months ended									Six months ended
			June 29,			March 30,			July 1,			June 29,			July 1,
			2012			2012			2011			2012			2011

Revenue			$	20,547		$	17,460		$	16,211		$	38,007		$	31,687

Cost of revenue				8,755			7,421			8,464			16,176			16,515

Gross profit				11,792			10,039			7,747			21,831			15,172
				57.4	%		57.5	%		47.8	%		57.4	%		47.9	%
Operating expenses:
Research and development				6,047			5,729			6,477			11,776			12,364
Selling and marketing				4,333			3,898			4,077			8,231			8,067
General and administrative				2,442			1,758			1,740			4,201			4,198
Restructuring and impairment related charges				-			-			39			-			322
		Total operating expenses		12,822			11,385			12,333			24,208			24,951

Operating loss				(1,030	)		(1,346	)		(4,586	)		(2,377	)		(9,779	)

Other income (expenses)				105			(71	)		(117	)		34			(391	)

Income before Taxes				(925	)		(1,417	)		(4,703	)		(2,343	)		(10,170	)

Provision for income taxes				306			100			141			406			276
Net loss			$	(1,231	)	$	(1,517	)	$	(4,844	)	$	(2,749	)	$	(10,446	)

Net loss per share:
	Basic		$	(0.03	)	$	(0.03	)	$	(0.11	)	$	(0.06	)	$	(0.24	)
	Diluted		$	(0.03	)	$	(0.03	)	$	(0.11	)	$	(0.06	)	$	(0.24	)

Shares used in computing net income (loss) per common share:
	Basic			44,608			44,401			43,753			44,505			43,677
	Diluted			44,608			44,401			43,753			44,505			43,677


			Three months ended									Six months ended
			June 29,			March 30,			July 1,			June 29,			July 1,
			2012			2012			2011			2012			2011
Other Financial Metrics:
	Stock-based compensation expense:
	Cost of revenue			25			29			21			54			174
	Research and development			153			158			164			311			503
	Selling and marketing			133			156			135			289			409
	General and administrative			148			156			90			304			468
	Costs related to reduction in workforce
	Cost of revenue			-			-			50			-			50
	Research and development			-			-			370			-			370
	Selling and marketing			-			-			102			-			102
	Legal and acquisition related costs
	Research and development			171			171			-			342			-
	Selling and marketing			99			100			72			199			155
	General and administrative			696			34			309			730			558
	Provision for income taxes			85			-			-			85			-
	Amortization of purchased tangible and intangible assets
	Cost of revenue			177			177			895			354			1,464
	Research and development			300			300			234			600			470
	Selling and marketing			499			499			464			998			929

	Restructuring and impairment related charges			-			-			39			-			322







AuthenTec, Inc.
Non-GAAP Financial Information - Consolidated
(In thousands, except per share amounts)
(Unaudited)
Table 2
	Three months ended									Six months ended
	June 29,			March 30,			July 1,			June 29,			July 1,
	2012			2012			2011			2012			2011

Net loss on GAAP basis:	$	(1,231	)	$	(1,517	)	$	(4,844	)	$	(2,749	)	$	(10,446	)
Stock-based compensation expense		459			499			410			958			1,554
Costs related to reduction in workforce		-			-			522			-			522
Legal and acquisition related costs		966			305			381			1,271			713
Amortization of purchased tangible and intangible assets		976			976			1,593			1,952			2,863
Restructuring and impairment related charges		-			-			39			-			322
Tax Provision		85			-			-			85			-
Net income (loss) on non-GAAP basis:	$	1,255		$	263		$	(1,899	)	$	1,517		$	(4,472	)

Non-GAAP basic earnings per share	$	0.03		$	0.01		$	(0.04	)	$	0.03		$	(0.10	)
Non-GAAP diluted earnings per share	$	0.03		$	0.01		$	(0.04	)	$	0.03		$	(0.10	)



	Three months ended									Six months ended
	June 29,			March 30,			July 1,			June 29,			July 1,
	2012			2012			2011			2012			2011

Gross profit on GAAP basis:	$	11,792		$	10,039		$	7,747		$	21,831		$	15,172
Stock-based compensation expense		25			29			21			54			174
Costs related to reduction in workforce		-			-			50			-			50
Amortization of purchased tangible and intangible assets		177			177			895			354			1,464
Gross profit on non-GAAP basis:	$	11,994		$	10,245		$	8,713		$	22,239		$	16,860

Non-GAAP gross margin		58.4	%		58.7	%		53.7	%		58.5	%		53.2	%



	Three months ended									Six months ended
	June 29,			March 30,			July 1,			June 29,			July 1,
	2012			2012			2011			2012			2011

Operating expenses on GAAP basis:	$	12,822		$	11,385		$	12,333		$	24,208		$	24,951
Stock-based compensation expense		(434	)		(470	)		(389	)		(904	)		(1,380	)
Costs related to reduction in workforce		-			-			(472	)		-			(472	)
Legal and acquisition related costs		(966	)		(305	)		(381	)		(1,271	)		(713	)
Amortization of purchased tangible and intangible assets		(799	)		(799	)		(698	)		(1,598	)		(1,399	)
Restructuring and impairment related charges		-			-			(39	)		-			(322	)
Operating expenses on non-GAAP basis:	$	10,623		$	9,811		$	10,354		$	20,435		$	20,665







AuthenTec, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
Table 3
				As of
				June 29,			December 30,
				2012			2011
Assets
Current assets
	Cash and cash equivalents			$	21,316		$	17,200
	Restricted Cash				750			-
	Accounts receivable				9,617			9,444
	Inventory				9,704			8,111
	Other current assets				1,690			1,716
		Total current assets			43,077			36,471
Long-term investments					3,236			3,249
Purchased intangibles					18,413			20,287
Goodwill					3,501			3,501
Property and equipment, net					3,452			3,640
		Total assets		$	71,679		$	67,148

Liabilities and stockholders’ equity
Current liabilities
	Accounts payable			$	7,920		$	3,539
	Accrued compensation and benefits				3,163			4,399
	Deferred revenue				5,970			4,145
	Accrued litigation related legal fees				-			114
	Other accrued liabilities				4,256			2,634
		Total current liabilities			21,309			14,831

Long-term liabilities
	Deferred rent				308			398
	Other liabilities				354			768
		Total long-term liabilities			662			1,166

		Total liabilities			21,971			15,997



Stockholders’ equity
	Common stock				448			443
	Additional paid-in capital				194,022			192,694
	Accumulated other comprehensive income				23			50
	Accumulated deficit				(144,785	)		(142,036	)
		Total stockholders’ equity		$	49,708		$	51,151
			Total liabilities and stockholders’ equity	$	71,679		$	67,148

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