(1) For the three months ended April 4, 2015 non-GAAP revenue excludes $1.1 million of a fair value adjustment to acquired deferred revenue of which $1.0 million is included in the Americas and $0.1 million is included in Europe.

• During the quarter, subscription solution bookings were 14% of license and subscription solutions bookings, up from 4% a year ago.
• Viewed on a license mix-adjusted, constant currency basis, Q2 FY’15 software revenue would have increased 10%, total revenue would have increased 5%, and non-GAAP EPS would have increased more than 20% versus Q2 FY’14.
• We added 62 new IoT customers during the quarter.
• We had 13 large deals of greater than $1 million of license and subscription solutions (L&SS) bookings from a customer, down from 17 in the second quarter FY’14. This included one mega deal, or transaction with greater than $5 million of L&SS bookings from a customer, down from three in the second quarter FY’14.
• GAAP operating margin was 1.3% (including $38 million of restructuring charges) and non-GAAP operating margin was 23.4%.
• Cash flow from operations was $92 million, and we ended the quarter with total cash and cash equivalents of $268 million. Total debt was $531 million and DSO was 58 days.

Business Outlook

For the quarter ending July 4, 2015 and fiscal year ending September 30, 2015, the Company expects:

			Q3’15					Q3’15					FY’15					FY’15
($ in millions)			Low					High					Low					High
Subscription Solutions % of L&SS Bookings				18	%				18	%				17	%				17	%
License and Subscription Solutions Revenue			$	85				$	90				$	360				$	375
Support Revenue				168					168					688					688
Total Software Revenue				253					258					1,048					1,063
Professional Services Revenue				54					54					232					232
Total Revenue			$	307				$	312				$	1,280				$	1,295
Operating Margin (GAAP)				12	%				13	%				11	%				12	%
Operating Margin (Non-GAAP)				22	%				23	%				24	%				25	%
Tax Rate (GAAP)				5	%				5	%				1	%				1	%
Tax Rate (Non-GAAP)				15	%				15	%				14	%				14	%
Shares Outstanding				116					116					116					116
EPS (GAAP)			$	0.26				$	0.29				$	1.10				$	1.22
EPS (Non-GAAP)			$	0.47				$	0.50				$	2.18				$	2.30

The third quarter and full year FY’15 non-GAAP revenue, non-GAAP operating margin and non-GAAP EPS guidance exclude the following items and their income tax effects, as well as any discrete tax items, if any: