Restructuring: The restructuring charge in the second quarter related to exiting our headquarters in Needham was $27 million.
Other information – Q2’19 subscription bookings: Bookings include a $7.5 million IoT booking for which the contract terms were approved on March 30, but for which the electronic signature process was not fully complete until the morning of March 31.
Management's 2019 Financial Outlook:
The Company's third
quarter and fiscal year 2019 revenue and diluted earnings per share
guidance is provided below. The revenue and diluted earnings per share
guidance is provided on both a GAAP and a non-GAAP basis, and in
accordance with both ASC 606 and ASC 605. Non-GAAP financial measures
exclude the income statement effects of acquisition adjustments to
deferred revenue, stock-based compensation, amortization of acquired
intangible assets, acquisition-related transaction costs, restructuring
charges and measurement-period adjustments related to the Tax Cuts and
Jobs Act.
Fiscal 2019 Business Outlook – ASC 606
For the third quarter
and fiscal year ending September 30, 2019, the company expects:
| In millions except per share amounts | ||||||||||
| Operating Measures (1) |
Q3’19
|
Q3’19
|
FY’19
|
FY’19
|
||||||
| Subscription ACV | $51 | $55 | $ 207 | $ 217 | ||||||
| License and Subscription Bookings | $110 | $120 | $ 485 | $ 505 | ||||||
| Subscription % of Bookings | 92% | 92% | 86% | 86% | ||||||
| (1) An explanation of the metrics included in this table is provided below. | ||||||||||
| Financial Measures (1) |
Q3’19
|
Q3’19
|
FY’19
|
FY’19
|
||||||
| Total Subscription Revenue | $138 | $147 | $ 596 | $ 616 | ||||||
| Perpetual Support Revenue | $100 | $103 | $419 | $424 | ||||||
| Total Recurring Revenue | $238 | $250 | $1,015 | $1,040 | ||||||
| Perpetual License Revenue | $9 | $10 | $70 | $73 | ||||||
| Total Software Revenue | $247 | $260 | $1,084 | $1,112 | ||||||
| Professional Services Revenue | $41 | $43 | $166 | $168 | ||||||
| Total Revenue | $288 | $303 | $ 1,250 | $ 1,280 | ||||||
| Operating Expense (GAAP) | $211 | $212 | $ 886 | $ 890 | ||||||
| Operating Expense (Non-GAAP) | $180 | $182 | $715 | $718 | ||||||
| Operating Margin (GAAP) | (1%) | 4% | 3% | 6% | ||||||
| Operating Margin (Non-GAAP) | 13% | 17% | 20% | 22% | ||||||
| Tax Rate (GAAP) | (50%) | (50%) | (60%) | (60%) | ||||||
| Tax Rate (Non-GAAP) | 18% | 18% | 19% | 18% | ||||||
| Shares Outstanding | 118 | 118 | 118 | 118 | ||||||
| EPS (GAAP) | ($0.15) | $0.03 | $ 0.02 | $ 0.44 | ||||||
| EPS (Non-GAAP) | $0.20 | $0.30 | $1.45 | $ 1.70 | ||||||
| Free Cash Flow | $ 265 | $ 275 | ||||||||
| Adjusted Free Cash Flow | $ 290 | $ 300 | ||||||||
