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Section 1: 8-K (FORM 8-K)

Form 8-K

 

 

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)

August 2, 2017

 

 

Aerohive Networks, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-36355   20-4524700

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

1011 McCarthy Boulevard

Milpitas, CA 95035

(Address of Principal Executive Offices including Zip Code)

Steve Debenham, Vice President, General Counsel and Secretary

(408) 510-6100

(Name and telephone number, including area code of the person to contact in connection with this report)

 

 

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 (see General Instruction A.2. below):

 

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On August 2, 2017, Aerohive Networks, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of 2017. In the press release, the Company also announced that it would be holding a conference call on August 2, 2017 to discuss its financial results for the second quarter of 2017. A copy of the press release is furnished as Exhibit 99.1 to this report.

This information furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition,” including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 8.01 Other Events

On August 2, 2017, the Company also announced by separate press release that the Company’s board of directors had extended to June 30, 2018 a stock repurchase program of up to $10.0 million, which program the board of directors had initially approved in February 2016. The repurchase program authorizes stock purchases from time to time in compliance with applicable securities laws in the open market or in privately negotiated transactions. The timing and amounts of any purchases will be based on market conditions and other factors including price, regulatory requirements and capital availability. The authorization does not require the purchase of any minimum number of shares, and the Company may suspend, modify or discontinue the program at any time without prior notice. A copy of this press release is furnished as Exhibit 99.2 to this report.

This information furnished under Item 8.01 of Form 8-K, “Other Events,” including Exhibit 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.

  

Description

99.1    Press release issued by Aerohive Networks, Inc. dated August 2, 2017.
99.2    Press release issued by Aerohive Networks, Inc. dated August 2, 2017.


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.

 

AEROHIVE NETWORKS, INC.
By:  

/s/ Steve Debenham

  Steve Debenham
  Vice President, General Counsel & Secretary

Date: August 2, 2017


EXHIBIT INDEX

 

Exhibit

No.

  

Description

99.1    Press release issued by Aerohive Networks, Inc. dated August 2, 2017.
99.2    Press release issued by Aerohive Networks, Inc. dated August 2, 2017.
(Back To Top)

Section 2: EX-99.1 (EX-99.1)

EX-99.1

Exhibit 99.1

Aerohive Networks Reports Q2 2017 Results; Achieves Record Subscription and Support Revenue and Non-GAAP Profitability

MILPITAS, CA — August 2, 2017 — Aerohive Networks® (NYSE: HIVE), a leader in cloud networking and enterprise Wi-Fi, today announced financial results for its second quarter ended June 30, 2017.

“We are pleased to deliver on our commitment of non-GAAP profitability, exceeding our guidance for gross margin, with revenue within our range and strong deferred revenue growth,” stated David Flynn, President and Chief Executive Officer. “We have made great progress maturing our HiveManager® NG platform, and we are seeing success leveraging our new Connect/Select offering to drive channel recruitment. Our focus over the next few quarters will be to convert these improvements into revenue growth to offset the expected softness in the education market.”

Financial Summary

Total revenue for the second quarter of fiscal year 2017 was $42.3 million, compared with $47.6 million for the second quarter of 2016. Subscription and support revenue was $10.3 million, or 24% of total revenue for the quarter, compared with $8.1 million, or 17% of total revenue, for the second quarter of 2016.

On a GAAP basis, net loss was $3.9 million for the second quarter of fiscal year 2017, compared with a net loss of $7.4 million for the second quarter of 2016. GAAP gross margin was 67.4% for the second quarter of fiscal year 2017, compared with 67.5% for the second quarter of 2016.

On a non-GAAP basis, net income was $0.6 million for the second quarter of fiscal year 2017, compared with a net loss of $1.0 million for the second quarter of 2016. Non-GAAP gross margin was 68.2% for the second quarter of fiscal year 2017, compared with 68.3% for the second quarter of 2016.

Conference Call Information

Aerohive Networks will host a conference call and webcast for analysts and investors to discuss its second quarter 2017 results and outlook for its third quarter of 2017 at 2:00 pm Pacific Time today, August 2, 2017. The call may be accessed by dialing 1-888-596-2581 (toll free) or 1-719-325-4793 (international) and providing the passcode 2696603. A live and archived audio webcast of the conference call will be accessible from the “Investor Relations” section of the Company’s website at http://ir.aerohive.com.

 

1


Safe Harbor Statement

This press release contains forward-looking statements, including statements regarding Aerohive Networks’ financial expectations and operating performance and expectations for continued momentum, including statements regarding the progress we are making to address challenges in our business, including to strengthen our channels and product offerings, diversify our market opportunities and our ability to achieve and maintain non-GAAP operating profitability and resume revenue growth. These forward-looking statements are based on current expectations and are subject to inherent uncertainties, risks and changes in circumstances that are difficult or impossible to predict. The actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of these uncertainties, risk and changes in circumstances, including, but not limited to, risks and uncertainties related to: our ability to continue to attract, integrate, retain and train skilled personnel, especially skilled R&D and sales personnel, in general and in specific regions, our ability to develop and expand our revenue opportunities and sales capacity and improve the effectiveness of our channel, our ability to improve our operating and sales execution, general demand for wireless networking in the industry verticals we target or demand for Aerohive products in particular, our ability to benefit from our participation in the E-Rate program, unpredictable and changing market conditions, risks associated with the deployment, performance and adoption of our new products and services, risks associated with our growth, competitive pressures from existing and new companies, including pricing pressures, changes in the mix and selling prices of Aerohive products, technological change, product development delays, reliance on third parties to manufacture, warehouse and timely deliver Aerohive products, our inability to protect Aerohive intellectual property or to predict or limit exposure to third-party claims relating to its or Aerohive’s intellectual property, Aerohive’s limited operating history, particularly as a public company, uses of Aerohive’s capital and general market, political, regulatory, economic and business conditions in the United States and internationally.

Additional risks and uncertainties that could affect Aerohive’s financial and operating results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the Company’s recent annual report on Form 10-K and quarterly report on Form 10-Q. Aerohive’s SEC filings are available on the Investor Relations section of the Company’s website at http://ir.aerohive.com and on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Aerohive Networks disclaims any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Non-GAAP Financial Measures

Aerohive’s results for its second quarter of fiscal year 2017 reported in this press release and the related earnings conference call include certain non-GAAP financial measures, including:

 

    non-GAAP gross profit and non-GAAP gross margin;

 

2


    non-GAAP product gross profit and non-GAAP product gross margin;

 

    non-GAAP subscription and support gross profit and non-GAAP subscription and support gross margin;

 

    non-GAAP operating income (loss) and non-GAAP operating margin;

 

    non-GAAP net income (loss) and non-GAAP net income (loss) per share;

 

    non-GAAP operating expenses and non-GAAP functional expenses; and

 

    non-GAAP operating expense percentage and non-GAAP functional expense percentage.

The Company defines non-GAAP financial measures to exclude share-based compensation, adjustments to internal-use software amortization, and certain charges related to litigation, headquarter relocation and restructuring.

The Company has included certain non-GAAP financial measures in this press release because the Company believes they are key measures which can be used to evaluate the business, measure performance, identify trends affecting the business, formulate financial projections and make strategic decisions. In particular, the exclusion of certain expenses in calculating these non-GAAP financial measures can provide a useful measure for period-to-period comparisons of the Company’s core business.

Although non-GAAP financial measures are frequently used by investors in their evaluations of companies, these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations, as determined in accordance with GAAP. Some of these limitations are:

 

3


    the non-GAAP measures do not consider the expense related to stock-based compensation, which is an ongoing expense for the Company;

 

    although amortization of internal-use software is a non-cash charge, the assets being amortized often will have to be replaced in the future, and non-GAAP net loss and non-GAAP loss per share do not reflect any cash requirement for such replacements;

 

    excluding certain expenses associated with litigation in the quarter does not reflect the impact on our ongoing operations over this period of the cash requirement to defend such or other litigation;

 

    excluding headquarter relocation expense in the quarter does not reflect the cash requirement relating to the one-time charges related to the lease abandonment costs incurred upon vacating buildings of our prior headquarters and double rent and utilities expense during the transition to our new headquarters facility;

 

    excluding restructuring charges in the quarter does not reflect the cash requirement relating to the costs associated with restructuring and primarily relates to employee termination costs and benefits; and

 

    other companies, including companies in our industry, may calculate these non-GAAP financial measures differently, which reduces their usefulness as a comparative measure.

Because of these and other limitations, you should consider non-GAAP financial measures only together with other financial performance measures, including various cash flow metrics, net loss and other GAAP results.

A reconciliation of non-GAAP guidance measures to corresponding GAAP guidance measures is not available on a forward-looking basis due to the high variability and low visibility with respect to the charges that are excluded from these non-GAAP measures.

About Aerohive Networks

Aerohive (NYSE: HIVE) enables our customers to simply and confidently connect to the information, applications, and insights they need to thrive. Our simple, scalable, and secure platform delivers mobility without limitations. For our customers worldwide, every access point is a starting point. Aerohive was founded in 2006 and is headquartered in Milpitas, CA. For more information, please visit www.aerohive.com, call us at 408-510-6100, follow us on Twitter @Aerohive, subscribe to our blog, join our community, or become a fan on our Facebook page.

“Aerohive” and “HiveManager” are registered trademarks of Aerohive Networks, Inc. All product and company names used herein are trademarks or registered trademarks of their respective owners. All rights reserved.

Investor Relations Contact:

Melanie Solomon

The Blueshirt Group

(408) 769-6720

ir@aerohive.com

 

4


AEROHIVE NETWORKS, INC.

Condensed Consolidated Statements of Operations

(unaudited, in thousands, except share and per share amounts)

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2017     2016     2017     2016  

Revenue:

        

Product

   $ 32,046     $ 39,536     $ 58,916     $ 71,992  

Subscription and support

     10,254       8,095       19,735       15,767  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     42,300       47,631       78,651       87,759  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue (1):

        

Product

     10,616       12,413       19,352       22,852  

Subscription and support

     3,153       3,050       6,329       5,953  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     13,769       15,463       25,681       28,805  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     28,531       32,168       52,970       58,954  

Operating expenses:

        

Research and development (1)

     9,222       10,562       18,772       20,772  

Sales and marketing (1)

     17,420       21,322       34,859       42,390  

General and administrative (1)

     5,489       7,725       11,786       15,620  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     32,131       39,609       65,417       78,782  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (3,600     (7,441     (12,447     (19,828

Interest income

     164       117       304       236  

Interest expense

     (147     (110     (277     (236

Other income (expense), net

     (93     90       (178     106  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (3,676     (7,344     (12,598     (19,722

Provision for income taxes

     197       68       294       213  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (3,873   $ (7,412   $ (12,892   $ (19,935
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share, basic and diluted

   $ (0.07   $ (0.15   $ (0.24   $ (0.40
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares used in computing net loss per share, basic and diluted

     53,175,684       49,798,994       52,808,412       49,467,667  
  

 

 

   

 

 

   

 

 

   

 

 

 

(1) Includes stock-based compensation as follows:

        

Cost of revenue

   $ 276     $ 321     $ 547     $ 593  

Research and development

     1,065       1,366       1,753       2,711  

Sales and marketing

     1,501       2,063       2,795       3,831  

General and administrative

     1,602       1,704       2,902       3,215  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total stock-based compensation

   $ 4,444     $ 5,454     $ 7,997     $ 10,350  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

5


AEROHIVE NETWORKS, INC.

Condensed Consolidated Balance Sheets

(unaudited, in thousands, except share and per share amounts)

 

     June 30,
2017
    December 31,
2016
 

ASSETS

    

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 34,619     $ 34,346  

Short-term investments

     45,613       42,408  

Accounts receivable, net

     22,929       26,190  

Inventories

     14,982       12,629  

Prepaid expenses and other current assets

     7,128       6,289  
  

 

 

   

 

 

 

Total current assets

     125,271       121,862  

Property and equipment, net

     7,638       9,008  

Goodwill

     513       513  

Other assets

     5,375       5,100  
  

 

 

   

 

 

 

Total assets

   $ 138,797     $ 136,483  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

CURRENT LIABILITIES:

    

Accounts payable

   $ 14,663     $ 10,762  

Accrued liabilities

     9,014       9,300  

Debt, current

     —         20,000  

Deferred revenue, current

     32,954       31,727  
  

 

 

   

 

 

 

Total current liabilities

     56,631       71,789  

Debt, non-current

     20,000       —    

Deferred revenue, non-current

     34,957       34,177  

Other liabilities

     1,795       1,829  
  

 

 

   

 

 

 

Total liabilities

     113,383       107,795  

Stockholders’ equity:

    

Preferred stock

     —         —    

Common stock

     54       52  

Additional paid–in capital

     268,929       258,063  

Treasury stock

     (3,159     (2,139

Accumulated other comprehensive loss

     (38     (31

Accumulated deficit

     (240,372     (227,257
  

 

 

   

 

 

 

Total stockholders’ equity

     25,414       28,688  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 138,797     $ 136,483  
  

 

 

   

 

 

 

 

6


AEROHIVE NETWORKS, INC.

Condensed Consolidated Statements of Cash Flows

(unaudited, in thousands)

 

     Six Months Ended June 30,  
     2017     2016  

Cash flows from operating activities

    

Net loss

   $ (12,892   $ (19,935

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     1,631       1,795  

Stock-based compensation

     7,997       10,350  

Other

     (30     224  

Changes in operating assets and liabilities:

    

Accounts receivable, net

     3,261       (6,669

Inventories

     (2,353     (3,877

Prepaid expenses and other current assets

     (839     (4,470

Other assets

     (275     (202

Accounts payable

     4,105       1,095  

Accrued liabilities

     (289     5,097  

Other liabilities

     53       226  

Deferred revenue

     2,007       4,137  
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     2,376       (12,229
  

 

 

   

 

 

 

Cash flows from investing activities

    

Purchases of property and equipment

     (466     (735

Maturities of short-term investments

     18,600       11,400  

Purchases of short-term investments

     (21,782     (4,592

Investment in privately held company

     —         (1,500
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (3,648     4,573  
  

 

 

   

 

 

 

Cash flows from financing activities

    

Proceeds from exercise of vested stock options

     709       353  

Proceeds from employee stock purchase plan

     2,390       2,890  

Payment for shares withheld for tax withholdings on vesting of restricted stock units

     (451     (540

Payment to repurchase common stock

     (1,020     (1,451

Payment on capital lease obligations

     (83     —    
  

 

 

   

 

 

 

Net cash provided by financing activities

     1,545       1,252  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     273       (6,404

Cash and cash equivalents at beginning of period

     34,346       45,741  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 34,619     $ 39,337  
  

 

 

   

 

 

 

 

7


AEROHIVE NETWORKS, INC.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited, in thousands, except share and per share amounts)

 

     Three Months Ended June 30,            Six Months Ended June 30,         
     2017     2016     2017     2016  
     Amount     Margin     Amount     Margin     Amount     Margin     Amount     Margin  

Gross Profit and Gross Margin Reconciliations:

 

GAAP gross profit

   $ 28,531       67.4   $ 32,168       67.5   $ 52,970       67.3   $ 58,954       67.2

Stock-based compensation

     276       0.7     321       0.7     547       0.7     593       0.6

Amortization of internal use software

     35       0.1     35       0.1     70       0.1     70       0.1

Restructuring charges

     —         —         —         —         51       0.1     —         —    

Non-GAAP gross profit

   $ 28,842       68.2   $ 32,524       68.3   $ 53,638       68.2   $ 59,617       67.9

Product Gross Profit and Product Gross Margin Reconciliations:

 

GAAP product gross margin

   $ 21,430       66.9   $ 27,123       68.6   $ 39,564       67.2   $ 49,140       68.3

Stock-based compensation

     52       0.1     62       0.2     103       0.1     114       0.1

Restructuring charges

     —         —         —         —         51       0.1     —         —    

Non-GAAP product gross margin

   $ 21,482       67.0   $ 27,185       68.8   $ 39,718       67.4   $ 49,254       68.4

Subscription and Support Gross Profit and Subscription and Support Gross Margin Reconciliations:

 

GAAP subscription and support margin

   $ 7,101       69.3   $ 5,045       62.3   $ 13,406       67.9   $ 9,814       62.2

Stock-based compensation

     224       2.2     259       3.3     444       2.3     479       3.0

Amortization of internal use software

     35       0.3     35       0.4     70       0.3     70       0.5

Non-GAAP subscription and support gross margin

   $ 7,360       71.8   $ 5,339       66.0   $ 13,920       70.5   $ 10,363       65.7

Operating Income (Loss) and Operating Margin Reconciliations:

 

GAAP operating loss

   $ (3,600     (8.5 )%    $ (7,441     (15.6 )%    $ (12,447     (15.8 )%    $ (19,828     (22.6 )% 

Stock-based compensation

     4,444       10.5     5,454       11.4     7,997       10.1     10,350       11.8

Amortization of internal use software

     35       0.1     35       0.1     70       0.1     70       0.1

Restructuring charges

     —         —         —         —         1,327       1.7     —         —    

Charges related to securities litigation

     —         —         70       0.1     —         —         1,446       1.6

Charges related to headquarter relocation

     —         —         890       1.9     —         —         890       1.0

Non-GAAP operating income (loss)

   $ 879       2.1   $ (992     (2.1 )%    $ (3,053     (3.9 )%    $ (7,072     (8.1 )% 
     Amount     Per share     Amount     Per share     Amount     Per share     Amount     Per share  

Net Income (Loss) and Net Income (Loss) per Share Reconciliations:

 

GAAP net loss

   $ (3,873   $ (0.07   $ (7,412   $ (0.15   $ (12,892   $ (0.24   $ (19,935   $ (0.40

Stock-based compensation

     4,444       0.08       5,454       0.11       7,997       0.15       10,350       0.21  

Amortization of internal use software

     35       —         35       —         70       —         70       —    

Restructuring charges

     —         —         —         —         1,327       0.02       —         —    

Charges related to securities litigation

     —         —         70       —         —         —         1,446       0.03  

Charges related to headquarter relocation

     —         —         890       0.02       —         —         890       0.01  

Non-GAAP net income (loss), basic and diluted

   $ 606     $ 0.01     $ (963   $ (0.02   $ (3,498   $ (0.07   $ (7,179   $ (0.15

 

8


Shares Used in Computing non-GAAP Basic and Diluted Net Income (Loss) per Share:

 

Weighted average shares used in computing net income (loss) per share, basic

    53,175,684         49,798,994         52,808,412         49,467,667    

Weighted average shares used in computing net income (loss) per share, diluted

    54,413,327         49,798,994         52,808,412         49,467,667    
    Amount     % of
Revenue
    Amount     % of
Revenue
    Amount     % of
Revenue
    Amount     % of
Revenue
 

Operating and Functional Expenses and Expenses Percentages Reconciliations:

 

GAAP research and development

  $ 9,222       21.8   $ 10,562       22.2   $ 18,772       23.9   $ 20,772       23.7

Stock-based compensation

    (1,065     (2.5 )%      (1,366     (2.9 )%      (1,753     (2.2 )%      (2,711     (3.1 )% 

Restructuring charges

    —         —         —         —         (838     (1.1 )%      —         —    

Non-GAAP research and development

  $ 8,157       19.3   $ 9,196       19.3   $ 16,181       20.6   $ 18,061       20.6

GAAP sales and marketing

  $ 17,420       41.2   $ 21,322       44.8   $ 34,859       44.3   $ 42,390       48.3

Stock-based compensation

    (1,501     (3.6 )%      (2,063     (4.4 )%      (2,795     (3.6 )%      (3,831     (4.4 )% 

Restructuring charges

    —         —         —         —         (243     (0.2 )%      —         —    

Non-GAAP sales and marketing

  $ 15,919       37.6   $ 19,259       40.4   $ 31,821       40.5   $ 38,559       43.9

GAAP general and administrative

  $ 5,489       13.0   $ 7,725       16.2   $ 11,786       15.0   $ 15,620       17.8

Stock-based compensation

    (1,602     (3.8 )%      (1,704     (3.6 )%      (2,902     (3.7 )%      (3,215     (3.7 )% 

Restructuring charges

    —         —         —         —         (195     (0.3 )%      —         —    

Charges related to securities litigation

    —         —         (70     (0.1 )%      —         —         (1,446     (1.6 )% 

Charges related to headquarter relocation

    —         —         (890     (1.9 )%      —         —         (890     (1.0 )% 

Non-GAAP general and administrative

  $ 3,887       9.2   $ 5,061       10.6   $ 8,689       11.0   $ 10,069       11.5

GAAP operating expenses

  $ 32,131       76.0   $ 39,609       83.2   $ 65,417       83.2   $ 78,782       89.8

Stock-based compensation

    (4,168     (9.9 )%      (5,133     (10.8 )%      (7,450     (9.5 )%      (9,757     (11.1 )% 

Restructuring charges

    —         —         —         —         (1,276     (1.6 )%      —         —    

Charges related to securities litigation

    —         —         (70     (0.1 )%      —         —         (1,446     (1.7 )% 

Charges related to headquarter relocation

    —         —         (890     (1.9 )%      —         —         (890     (1.0 )% 

Non-GAAP operating expenses

  $ 27,963       66.1   $ 33,516       70.4   $ 56,691       72.1   $ 66,689       76.0

 

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Section 3: EX-99.2 (EX-99.2)

EX-99.2

Exhibit 99.2

Aerohive Announces Extension of $10M Share Repurchase Program

MILPITAS, CA — August 2, 2017 — Aerohive Networks® (NYSE: HIVE) today announced that its board of directors has extended its $10 million share repurchase program, which the Company previously announced in February 2016.

Under this program, the Company may make stock purchases from time to time in compliance with applicable securities laws in the open market or in privately negotiated transactions. The timing and amounts of any purchases will be based on market conditions and other factors, including price, regulatory requirements and capital availability. The authorization does not require that the Company purchase any minimum number of shares, and the Company may suspend, modify or discontinue the program at any time without prior notice. Unless modified, or earlier suspended or discontinued, the authorization will expire as of June 30, 2018, without further action of the Company’s board of directors. The Company previously announced this program on February 3, 2016. As of June 30, 2017, approximately $6.8 million remains available for further repurchases under this program.

About Aerohive Networks

Aerohive (NYSE: HIVE) enables our customers to simply and confidently connect to the information, applications, and insights they need to thrive. Our simple, scalable, and secure platform delivers mobility without limitations. For our customers worldwide, every access point is a starting point. Aerohive was founded in 2006 and is headquartered in Milpitas, CA. For more information, please visit www.aerohive.com, call us at 408-510-6100, follow us on Twitter @Aerohive, subscribe to our blog, join our community, or become a fan on our Facebook page.

“Aerohive” is a registered trademark of Aerohive Networks, Inc. All product and company names used herein are trademarks or registered trademarks of their respective owners. All rights reserved.

Investor Relations Contact:

The Blueshirt Group

Melanie Solomon

(408) 769-6720

ir@aerohive.com

 

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