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Section 1: 8-K (8-K)

Document


 
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)
February 6, 2019  
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, California 95035
(Address of Principal Executive Offices including Zip Code)
(408) 510-6100
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last 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 x

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 February 6, 2019, Aerohive Networks, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter of 2018. In the press release, the Company also announced that it would be holding a conference call on February 6, 2019 to discuss its financial results for the fourth quarter and fiscal year of 2018 and outlook for its first quarter of fiscal year 2019. 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 9.01
Financial Statements and Exhibits.
 
(d)
Exhibits.
Exhibit No.
  
Description
 
 
99.1

  
Press release issued by Aerohive Networks, Inc., dated February 6, 2019.


EXHIBIT INDEX
 
Exhibit No.
  
Description
 
 
  

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: February 6, 2019



(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit


Exhibit 99.1
Aerohive Networks Reports Q4 2018 Results, with Third Consecutive Quarter of Non-GAAP Profitability
MILPITAS, CA — February 6, 2019 — Aerohive Networks (NYSE: HIVE), a Cloud Networking Leader, today announced financial results for its fourth quarter and fiscal year ended December 31, 2018.
"The fourth quarter continued our return to growth and non-GAAP profitability, while also capping a year of innovation as we released several major new products, strengthening our overall offering and re-positioning us as an innovator in the space,” stated David Flynn, President and Chief Executive Officer. “We are poised for a successful 2019 with our improved operational discipline and positioning for revenue growth."
Financial Summary
Total revenue for the fourth quarter of fiscal year 2018 was $38.1 million, an increase of 7% compared with $35.7 million for the fourth quarter of 2017. Subscription and support revenue was $12.5 million, or 33% of total revenue, for the fourth quarter of fiscal year 2018, an increase of 16% compared with $10.8 million, or 30% of total revenue, for the fourth quarter of 2017.
On a GAAP basis, net loss was $5.8 million for the fourth quarter of fiscal year 2018, compared with a net loss of $4.1 million for the fourth quarter of 2017. GAAP gross margin was 65.6% for the fourth quarter of fiscal year 2018, compared with 68.5% for the fourth quarter of 2017.
On a non-GAAP basis, net income was $0.4 million for the fourth quarter of fiscal year 2018, compared with a net loss of $0.4 million for the fourth quarter of 2017. Non-GAAP gross margin was 66.3% for the fourth quarter of fiscal year 2018, compared with 69.3% for the fourth quarter of 2017.
Total revenue for fiscal year 2018 was $154.9 million, compared with $153.6 million for fiscal year 2017. Subscription and support revenue was $46.2 million, or 30% of total revenue for the year, compared with $40.4 million, or 26% of total revenue, for fiscal year 2017.
On a GAAP basis, net loss for fiscal year 2018 was $18.3 million, compared with $22.1 million in fiscal year 2017. GAAP gross margin was 65.8% for fiscal year 2018, compared with 67.4% in the year-ago period.
On a non-GAAP basis, net loss for fiscal year 2018 was $0.8 million, compared with $4.0 million in fiscal year 2017. Non-GAAP gross margin was 66.5% for fiscal year 2018, compared with 68.3% in the year-ago period.
New Accounting Standard
Effective January 1, 2018, the Company adopted ASC 606, the new accounting standard related to revenue recognition. The Company has adjusted prior-period information to reflect the adoption of this new standard.
Conference Call Information
Aerohive Networks will host a conference call and webcast for analysts and investors to discuss its fourth quarter and fiscal year 2018 results and outlook for its first quarter of fiscal year 2019 at 2:00 pm Pacific Time today, February 6, 2019. The call may be accessed by dialing 646-828-8143 and providing the passcode 7188272. A live and archived audio webcast of the conference call will be accessible from the “Investor Relations” section of the Company’s website at https://ir.aerohive.com.
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 sales execution issues, our ability to introduce and deliver innovative solutions as a full-stack cloud networking company, our ability to strengthen our overall offering and re-position ourselves as an innovator in the space, and our ability to strengthen our financial position including our ability to manage operational discipline and 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,

1



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 resolve challenges related to sales execution and improve our operating and sales execution, general demand for wireless networking in the industry verticals we target or demand for Aerohive® products in particular, the unpredictability in any period of our ability to benefit from our participation in the E-Rate program, the impact to the revenue we recognize in any period pursuant to ASC 606 due to the level of inventory we deliver during the period to our channel partners, 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 https://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 fourth quarter of fiscal year 2018 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;
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, impairment of certain investments and certain charges related to litigation 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 investors frequently use non-GAAP financial measures 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:
 
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 the non-GAAP measures do not reflect any future cash requirement for such replacements;
impairment of investment is a non-cash charge which does not directly impact the Company's current cash position; however, the charge which we exclude represents the declining value of our investment;
excluding certain expenses associated with litigation in the quarter or fiscal year does not reflect the impact on our ongoing operations over these periods of the cash requirement to defend such or other litigation;
restructuring charges excluded in the quarter or fiscal year primarily relate to employee termination costs and benefits and do not reflect the cash requirement relating to the costs associated with such restructuring; and
other companies, including companies in our industry, may not exclude these as non-GAAP financial measures or may include them but calculate them differently, which reduces their usefulness as a comparative measure.

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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.
We have provided a description of these non-GAAP financial measures and a reconciliation of the Company's historical non-GAAP financial measures to their most-directly comparable GAAP measures in the financial statement tables included in this press release, and we encourage investors to review the reconciliation.
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 we exclude from these non-GAAP measures.
About Aerohive Networks
Aerohive uses Cloud Management, Machine Learning, and Artificial Intelligence to radically simplify and secure the Access Network. Our Cloud-Managed Wireless, Switching, Routing, and Security technologies provide unrivalled flexibility in deployment, management, and licensing. Credited with pioneering Controller-less Wi-Fi and Cloud Management, Aerohive delivers continuous innovation at Cloud-speed that constantly challenges the industry norm, allowing customers to rethink what's possible. Our innovations and global cloud footprint radically simplify Access Network operation for 30,000+ customers and 10+ million daily users. See how at www.aerohive.com/customers.
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, or become a fan on our Facebook page.
“Aerohive” is a registered trademark and "Aerohive Networks" is a 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:
Melanie Solomon
The Blueshirt Group
(408) 769-6720
ir@aerohive.com

3



AEROHIVE NETWORKS, INC.
Condensed Consolidated Statements of Operations
(unaudited) (in thousands, except share and per share data)

 
Three Months Ended December 31,
 
Year Ended December 31,
 
2018
 
2017
 
2018
 
2017
Revenue:
 
 
(As Adjusted*)
 
 
 
(As Adjusted*)
Product
$
25,587

 
$
24,899

 
$
108,738

 
$
113,133

Subscription and support
12,528

 
10,828

 
46,171

 
40,425

Total revenue
38,115

 
35,727

 
154,909

 
153,558

Cost of revenue (1):
 
 
 
 
 
 
 
Product
9,648

 
7,950

 
39,293

 
37,115

Subscription and support
3,481

 
3,320

 
13,612

 
12,893

Total cost of revenue
13,129

 
11,270

 
52,905

 
50,008

Gross profit
24,986

 
24,457

 
102,004

 
103,550

Operating expenses:
 
 
 
 
 
 
 
Research and development (1)
9,257

 
8,386

 
35,646

 
36,418

Sales and marketing (1)
14,837

 
14,385

 
61,687

 
65,386

General and administrative (1)
6,039

 
5,608

 
22,508

 
23,094

Total operating expenses
30,133

 
28,379

 
119,841

 
124,898

Operating loss
(5,147
)
 
(3,922
)
 
(17,837
)
 
(21,348
)
Interest income
505

 
236

 
1,568

 
720

Interest expense
(205
)
 
(155
)
 
(748
)
 
(567
)
Other expense, net
(950
)
 
(40
)
 
(1,160
)
 
(308
)
Loss before income taxes
(5,797
)
 
(3,881
)
 
(18,177
)
 
(21,503
)
Provision for (benefit from) income taxes
(42
)
 
234

 
160

 
603

Net loss
$
(5,755
)
 
$
(4,115
)
 
$
(18,337
)
 
$
(22,106
)
Net loss per share, basic and diluted
$
(0.10
)
 
$
(0.08
)
 
$
(0.33
)
 
$
(0.42
)
Weighted-average shares used in computing net loss per share, basic and diluted
55,639,692

 
53,782,676

 
55,050,119

 
53,227,342

 
 
 
 
 
 
 
 
(1) Includes stock-based compensation as follows:
 
 
 
 
 
 
 
Cost of revenue
$
241

 
$
272

 
$
913

 
$
1,132

Research and development
1,070

 
1,089

 
4,178

 
4,171

Sales and marketing
1,066

 
742

 
4,325

 
5,103

General and administrative
1,420

 
1,611

 
5,467

 
6,269

Total stock-based compensation
$
3,797

 
$
3,714

 
$
14,883

 
$
16,675

 
 
 
 
 
 
 
 
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.



4



AEROHIVE NETWORKS, INC.
Condensed Consolidated Balance Sheets
(unaudited) (in thousands)
 
December 31,
 
December 31,
 
2018
 
2017
ASSETS
 
 
(As Adjusted*)
CURRENT ASSETS:
 
 
 
Cash and cash equivalents
$
26,049

 
$
27,249

Short-term investments
66,052

 
57,675

Accounts receivable, net
16,185

 
17,662

Inventories
16,117

 
13,495

Prepaid expenses and other current assets
6,399

 
6,396

Total current assets
130,802

 
122,477

Property and equipment, net
5,947

 
6,381

Goodwill
513

 
513

Other assets
4,255

 
4,900

Total assets
$
141,517

 
$
134,271

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
CURRENT LIABILITIES:
 
 
 
Accounts payable
$
16,129

 
$
11,946

Accrued liabilities
8,937

 
8,602

Debt, current
20,000

 

Deferred revenue, current
38,786

 
33,279

Total current liabilities
83,852

 
53,827

Debt, non-current

 
20,000

Deferred revenue, non-current
38,475

 
33,761

Other liabilities
1,582

 
1,769

Total liabilities
123,909

 
109,357

Stockholders’ equity:
 
 
 
Preferred stock

 

Common stock
56

 
55

Additional paid–in capital
293,910

 
278,528

Treasury stock
(10,584
)
 
(6,216
)
Accumulated other comprehensive loss
(14
)
 
(30
)
Accumulated deficit
(265,760
)
 
(247,423
)
Total stockholders’ equity
17,608

 
24,914

Total liabilities and stockholders’ equity
$
141,517

 
$
134,271

 
 
 
 
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.

5



AEROHIVE NETWORKS, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited) (in thousands)

 
Year Ended December 31,
 
2018
 
2017
Cash flows from operating activities
 
 
(As Adjusted*)
Net loss
$
(18,337
)
 
$
(22,106
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
Depreciation and amortization
3,034

 
3,083

Stock-based compensation
14,883

 
16,675

Impairment of investment in a privately held company
750

 

Other
(786
)
 
(134
)
Changes in operating assets and liabilities:
 
 
 
Accounts receivable, net
1,477

 
8,528

Inventories
(2,622
)
 
(866
)
Prepaid expenses and other current assets
(3
)
 
(494
)
Other assets
(105
)
 
87

Accounts payable
4,027

 
1,322

Accrued liabilities
344

 
(701
)
Other liabilities
(8
)
 
126

Deferred revenue
10,221

 
3,799

Net cash provided by operating activities
12,875

 
9,319

Cash flows from investing activities
 
 
 
Purchases of property and equipment
(2,444
)
 
(595
)
Maturities of short-term investments
86,652

 
60,150

Purchases of short-term investments
(94,227
)
 
(75,282
)
Net cash used in investing activities
(10,019
)
 
(15,727
)
Cash flows from financing activities
 
 
 
Proceeds from exercise of vested stock options and employee stock purchase plan
3,096

 
4,760

Payment for shares withheld for tax withholdings on vesting of restricted stock units
(2,596
)
 
(1,190
)
Payment to repurchase common stock
(4,368
)
 
(4,077
)
Payment on capital lease obligations
(188
)
 
(182
)
Net cash used in financing activities
(4,056
)
 
(689
)
Net decrease in cash and cash equivalents
(1,200
)
 
(7,097
)
Cash and cash equivalents at beginning of period
27,249

 
34,346

Cash and cash equivalents at end of period
$
26,049

 
$
27,249

 
 
 
 
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.


6



AEROHIVE NETWORKS, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited) (in thousands, except share and per share data)
 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
(As Adjusted*)
 
 
 
 
(As Adjusted*)
 
 
Amount
Margin
 
Amount
Margin
 
Amount
Margin
 
Amount
Margin
Gross Profit and Gross Margin Reconciliations:
 
 
 
 
 
 
 
 
 
 
GAAP gross profit
 
$
24,986

65.6
 %
 
$
24,457

68.5
 %
 
$
102,004

65.8
 %
 
$
103,550

67.4
 %
Stock-based compensation
 
241

0.6
 %
 
272

0.7
 %
 
913

0.6
 %
 
1,132

0.8
 %
Amortization of internal-use software
 
35

0.1
 %
 
35

0.1
 %
 
140

0.1
 %
 
140

0.1
 %
Restructuring charges
 

 %
 

 %
 

 %
 
51

 %
Non-GAAP gross profit
 
$
25,262

66.3
 %
 
$
24,764

69.3
 %
 
$
103,057

66.5
 %
 
$
104,873

68.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Product Gross Profit and Product Gross Margin Reconciliations:
 
 
 
 
 
 
 
 
 
 
GAAP product gross margin
 
$
15,939

62.3
 %
 
$
16,949

68.1
 %
 
$
69,445

63.9
 %
 
$
76,018

67.2
 %
Stock-based compensation
 
27

0.1
 %
 
25

0.1
 %
 
117

0.1
 %
 
190

0.2
 %
Restructuring charges
 

 %
 

 %
 

 %
 
51

 %
Non-GAAP product gross margin
 
$
15,966

62.4
 %
 
$
16,974

68.2
 %
 
$
69,562

64.0
 %
 
$
76,259

67.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Subscription and Support Gross Profit and Subscription and Support Gross Margin Reconciliations:
 
 
 
 
 
 
 
 
 
 
GAAP subscription and support gross margin
 
$
9,047

72.2
 %
 
$
7,508

69.3
 %
 
$
32,559

70.5
 %
 
$
27,532

68.1
 %
Stock-based compensation
 
214

1.7
 %
 
247

2.3
 %
 
796

1.7
 %
 
942

2.4
 %
Amortization of internal-use software
 
35

0.3
 %
 
35

0.3
 %
 
140

0.3
 %
 
140

0.3
 %
Non-GAAP subscription and support gross margin
 
$
9,296

74.2
 %
 
$
7,790

71.9
 %
 
$
33,495

72.5
 %
 
$
28,614

70.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income (Loss) and Operating Margin Reconciliations:
 
 
 
 
 
 
 
 
 
 
GAAP operating loss
 
$
(5,147
)
(13.5
)%
 
$
(3,922
)
(11.0
)%
 
$
(17,837
)
(11.5
)%
 
$
(21,348
)
(13.9
)%
Stock-based compensation
 
3,797

10.0
 %
 
3,714

10.4
 %
 
14,883

9.6
 %
 
16,675

10.9
 %
Amortization of internal-use software
 
35

0.1
 %
 
35

0.1
 %
 
140

0.1
 %
 
140

0.1
 %
Restructuring charges
 
1,183

3.1
 %
 

 %
 
1,183

0.7
 %
 
1,327

0.8
 %
Charges related to securities litigation
 
366

0.9
 %
 

 %
 
564

0.4
 %
 

 %
Non-GAAP operating income (loss)
 
$
234

0.6
 %
 
$
(173
)
(0.5
)%
 
$
(1,067
)
(0.7
)%
 
$
(3,206
)
(2.1
)%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
$
(5,755
)
$
(0.10
)
 
$
(4,115
)
$
(0.08
)
 
$
(18,337
)
$
(0.33
)
 
$
(22,106
)
$
(0.42
)
Stock-based compensation
 
3,797

0.07

 
3,714

0.07

 
14,883

0.28

 
16,675

0.32

Amortization of internal-use software
 
35


 
35


 
140


 
140


Restructuring charges
 
1,183

0.02

 


 
1,183

0.02

 
1,327

0.03

Charges related to securities litigation
 
366

0.01

 


 
564

0.01

 


Impairment of investment in a privately held company
 
750

$
0.01

 


 
750

0.01

 


Non-GAAP net income (loss), basic and diluted
 
$
376

$
0.01

 
$
(366
)
$
(0.01
)
 
$
(817
)
$
(0.01
)
 
$
(3,964
)
$
(0.07
)
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
55,639,692

 
 
53,782,676

 
 
55,050,119

 
 
53,227,342

 
Weighted average shares used in computing net income (loss) per share, diluted
 
56,865,117

 
 
53,782,676

 
 
55,050,119

 
 
53,227,342

 
 
 
 
 
 
 
 
 
 
 
 
 
 
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.

7




AEROHIVE NETWORKS, INC.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited) (in thousands, except share and per share data)
 
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
 
 
 
(As Adjusted*)
 
 
 
 
(As Adjusted*)
 
 
Amount
% of Revenue
 
Amount
% of Revenue
 
Amount
% of Revenue
 
Amount
% of Revenue
Operating and Functional Expenses and Expenses Percentages Reconciliations:
 
 
 
 
 
 
 
 
 
 
 
 
GAAP research and development
 
$
9,257

24.3
 %
 
$
8,386

23.5
 %
 
$
35,646

23.0
 %
 
36,418

23.7
 %
Stock-based compensation
 
(1,070
)
(2.8
)%
 
(1,089
)
(3.1
)%
 
(4,178
)
(2.7
)%
 
(4,171
)
(2.7
)%
Restructuring charges
 
(608
)
(1.6
)%
 

 %
 
(608
)
(0.4
)%
 
(838
)
(0.5
)%
Non-GAAP research and development
 
$
7,579

19.9
 %
 
$
7,297

20.4
 %
 
$
30,860

19.9
 %
 
$
31,409

20.5
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP sales and marketing
 
$
14,837

38.9
 %
 
$
14,385

40.3
 %
 
$
61,687

39.8
 %
 
$
65,386

42.6
 %
Stock-based compensation
 
(1,066
)
(2.8
)%
 
(742
)
(2.1
)%
 
(4,325
)
(2.8
)%
 
(5,103
)
(3.3
)%
Restructuring charges
 
(387
)
(1.0
)%
 

 %
 
(387
)
(0.2
)%
 
(243
)
(0.2
)%
Non-GAAP sales and marketing
 
$
13,384

35.1
 %
 
$
13,643

38.2
 %
 
$
56,975

36.8
 %
 
$
60,040

39.1
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP general and administrative
 
$
6,039

15.8
 %
 
$
5,608

15.7
 %
 
$
22,508

14.5
 %
 
$
23,094

15.0
 %
Stock-based compensation
 
(1,420
)
(3.7
)%
 
(1,611
)
(4.5
)%
 
(5,467
)
(3.5
)%
 
(6,269
)
(4.1
)%
Restructuring charges
 
(188
)
(0.5
)%
 

 %
 
(188
)
(0.1
)%
 
(195
)
(0.1
)%
Charges related to securities litigation
 
(366
)
(0.9
)%
 

 %
 
(564
)
(0.4
)%
 

 %
Non-GAAP general and administrative
 
$
4,065

10.7
 %
 
$
3,997

11.2
 %
 
$
16,289

10.5
 %
 
$
16,630

10.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
GAAP operating expenses
 
$
30,133

79.1
 %
 
$
28,379

79.4
 %
 
$
119,841

77.4
 %
 
$
124,898

81.3
 %
Stock-based compensation
 
(3,556
)
(9.3
)%
 
(3,442
)
(9.6
)%
 
(13,970
)
(9.0
)%
 
(15,543
)
(10.1
)%
Restructuring charges
 
(1,183
)
(3.1
)%
 

 %
 
(1,183
)
(0.8
)%
 
(1,276
)
(0.8
)%
Charges related to securities litigation
 
(366
)
(1.0
)%
 

 %
 
(564
)
(0.4
)%
 

 %
Non-GAAP operating expenses
 
$
25,028

65.7
 %
 
$
24,937

69.8
 %
 
$
104,124

67.2
 %
 
$
108,079

70.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
* The Company has adjusted certain amounts for the retrospective change in accounting policy for revenue recognition.












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