CST: 30/07/2016 17:35:45   

CallidusCloud Announces Fourth Quarter and Full Year 2015 Total Revenue of $46.8 Million and $173.1 Million

172 Days ago

Reaffirms 2016 Total Revenue Guidance of $210.0 Million to $215.0 Million

DUBLIN, CA--(Marketwired - Feb 9, 2016) - Callidus Software Inc. (NASDAQ: CALD)

  • Q4 SaaS Revenue Increases 34% to $32.6 Million
  • Q4 Non-GAAP Earnings per Share Increases 59% to $0.08
  • Annual Operating Cash Flow Increases 189% to $26.5 Million

Callidus Software Inc. (NASDAQ: CALD), a global leader in cloud-based sales, marketing, learning and customer experience solutions, today announced financial results for the year ended December 31, 2015.

"We finished 2015 with a strong fourth quarter. We had record total revenues, excellent SaaS growth (off a higher base) and we continued to make money," said Leslie Stretch, president and CEO, CallidusCloud. "We expect our sales and marketing investments to continue to drive momentum in 2016 as we focus on delivering a world-class customer experience, and profitable growth."

Financial Highlights for the Fourth Quarter 2015
Total reported revenue was $46.8 million for the fourth quarter, an increase of 23% and includes $0.9 million of revenue from the Bridgefront acquisition. Total recurring revenue was $36.0 million, which includes SaaS revenue of $32.6 million and maintenance revenue of $3.4 million. SaaS revenue increased 34% over the same quarter in the prior year, benefiting from the continued success in our Lead to Money suite and revenue from Bridgefront. Excluding the Bridgefront revenue, SaaS revenue increased 30% over the same quarter last year. Services and license revenue was $10.8 million, consisting of $10.6 million in services revenue, a 10% increase over prior year, and $0.2 million in license revenue. Cash and short-term investments were $97.2 million. Cash flow from operations for the quarter was $5.9 million, compared to cash used for operations of $965 thousand in the same quarter of the prior year.

GAAP Performance

  • Recurring revenue gross margin was 75%, compared to 73% for the same quarter in the prior year.
  • Overall gross margin was 63%, compared to 61% for the same quarter in the prior year.
  • Operating loss was $1.8 million compared to $3.5 million for the same quarter in the prior year.
  • Net loss was $2.1 million, or ($0.04) on a per share basis, compared to net loss of $4.1 million, or ($0.08) on a per share basis for the same quarter in the prior year.

Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

  • Recurring revenue gross margin was 77%, compared to 76% for the same quarter in the prior year.
  • Overall gross margin was 66%, compared to 64%, for the same quarter in the prior year.
  • Operating income was $4.7 million, compared to $2.9 million for the same quarter in the prior year.
  • Net income was $4.4 million, or $0.08 per fully diluted share, compared to $2.3 million, or $0.05 per fully diluted share, for the same quarter in the prior year.

Financial Highlights for the Full Fiscal 2015
Total revenue was $173.1 million for the full fiscal year, an increase of 27% and includes $1.5 million of revenue from the BridgeFront acquisition. Total recurring revenue was $129.9 million, which includes SaaS revenue of $115.5 million and maintenance revenue of $14.4 million. SaaS revenue increased 38% over the prior year, including $1.5 million of SaaS revenue from BridgeFront. Services and license revenue of $43.2 million consisted of $41.5 million in services revenue, a 28% increase over prior year, and $1.7 million in license revenue. Cash flow from operations for the full year was $26.5 million, reflecting a 189% increase over last year.

GAAP Performance

  • Recurring revenue gross margin was 74%, compared to 69% in the prior year.
  • Operating loss was $11.7 million compared to $13.5 million in the prior year.
  • Net loss was $13.1 million, or ($0.24) on a per share basis, compared to a net loss of $11.6 million, or ($0.24) per share in the prior year.

Non-GAAP Performance
The following non-GAAP measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

  • Recurring revenue gross margin was 78% compared to 73% in the prior year.
  • Operating income was $12.7 million compared to $8.7 million in the prior year.
  • Net income was $11.2 million, or $0.20 per fully diluted share, compared to $7.1 million, or $0.14 per fully diluted share in the prior year.

Business Highlights for the Fourth Quarter 2015

  • CallidusCloud unveiled its next-generation version of its multi-award-winning incentive and commissions platform at an exclusive summit for executives from High Tech companies. The packed house, full of top customers and prospects, was treated to a first look at the new innovations in the platform including the new guided UI that makes unlocking the power of incentives easier than ever. President and CEO Leslie Stretch was joined by leaders from the customer and partner community who shared their first hand experiences with the audience.
  • In December, CallidusCloud hosted its first partner summit bringing together thought leaders and industry experts from its partner ecosystem. At the summit a program of incentives and enablement activities was announced to accelerate the adoption of Lead to Money amongst leading systems integrators, consulting partners and independent software vendors.
  • CallidusCloud announced a unique new mobile Configure Price Quote application enabling remote users and field personnel to reduce the time it takes to generate quotes and proposals on the go. The new app provides salespeople the ability to configure value-rich quotes in the field and seamlessly sync them up for sending when back online. The mobile app provides access to critical product, pricing and configuration information in the field and eliminates the need for re-keying between systems, speeding up the sale.
  • The Litmos mobile learning platform joined the ADP marketplace in October, making the award-winning platform available to the thousands of users of ADP's Human Capital Management technologies. Litmos users will now be able to access pre-integrated workforce data in real-time through one intuitive platform.

Financial Outlook for 2016 - First Quarter and Full Year

For the first quarter of 2016, the Company expects total revenue to be between $47.8 million and $48.8 million, including $750 thousand of revenue from BridgeFront. GAAP operating loss is expected to be between $4.5 million and $6.0 million, with GAAP net loss per share between $0.09 and $0.11. Non-GAAP operating income is expected to be between $2.6 million and $3.6 million, with non-GAAP income per diluted share between $0.04 and $0.06.

For the full year of 2016, the Company is maintaining its previous revenue guidance of $210.0 million to $215.0 million, including $3.0 million of revenue from BridgeFront. We are projecting full-year SaaS revenue growth to be 30% to 35%, including $3.0 million from BridgeFront. GAAP operating loss is expected to be between $15.0 million and $18.0 million, with GAAP net loss per share between $0.29 and $0.33. Non-GAAP operating income is expected to be between $17.0 million and $19.0 million, with non-GAAP income per diluted share between $0.25 and $0.29.

Conference Call

In conjunction with this announcement CallidusCloud will host a conference call at 1:30 p.m. Pacific Standard Time (PST) today to discuss the fourth quarter and outlook for the first quarter 2016 and full year 2016. The conference call will be available via live webcast at the Investor Relations section of CallidusCloud's website.

Webcast site: http://www.calliduscloud.com/about-us/investor-relations
Dial-in: 877-280-4960 (International callers: 857-244-7317)
Passcode: 66768068
Replay information: A webcast replay will be available on the Investor Relations section of our website under Calendar of Events.

For more information, please visit: http://www.calliduscloud.com/about-us/investor-relations/

About CallidusCloud
Callidus Software Inc. (NASDAQ: CALD), doing business as CallidusCloud®, is the global leader in cloud-based sales, marketing and learning solutions. CallidusCloud enables organizations to accelerate and maximize their Lead to Money process with a complete suite of solutions that identify the right leads, ensure proper territory and quota distribution, enable sales forces, automate configure price quote, and streamline sales compensation -- driving bigger deals, faster. Approximately 4,600 leading organizations, across all industries, rely on CallidusCloud to optimize the Lead to Money process to close more deals for more money in record time.

For more information, please visit www.calliduscloud.com.

Non-GAAP Financial Measures

In this release, CallidusCloud has provided additional financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP gross margin, non-GAAP recurring revenue gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP net income per diluted share. CallidusCloud uses non-GAAP measures internally in analyzing its financial results and believes that they are useful to investors as a supplement to GAAP measures in evaluating CallidusCloud's operating performance. CallidusCloud believes that the use of these non-GAAP measures provides additional insight for investors to use in evaluation of ongoing operating results and trends and in comparing its financial measures with other companies in CallidusCloud's industry, many of which present non-GAAP financial measures that may resemble our non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Our non-GAAP measures reflect adjustments based on the following items:

Stock-based compensation expense: We have excluded the effect of stock-based compensation expense from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, net income and net income per diluted share. We believe the exclusion of stock-based compensation expense provides a useful comparison of our operating results to our peers.

Restructuring and other expense: We have excluded the effect of restructuring and other expense from our non-GAAP operating expenses, operating income, net income and net income per diluted share. Restructuring and other expense consists of employee severance, facility exit costs, impairment of intangible assets and incremental depreciation expense as a result of the change in the estimated useful life of assets abandoned. We feel it is useful to investors to understand the effects of these items on our financial results.

Patent litigation and settlement costs and patent litigation estimates: We have excluded the effect of patent infringement and litigation defense costs, settlement costs and patent litigation estimates from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, net income and net income per diluted share. We believe patent litigation and settlement costs and patent litigation estimates are not indicative of our ongoing business operations, and are inconsistent in amount and frequency; as such we exclude these costs during our evaluation of our business performance.

Convertible note interest expense, conversion costs and amortization of convertible note issuance costs: We have excluded the costs of convertible note interest expense, redemption inducement and issuance costs from our non-GAAP net income and net income per diluted share. We believe that these costs are not indicative of our continuing operations or meaningful in evaluating current versus past business results.

Amortization and gain on sale of acquired intangible assets: We have excluded the effect of amortization and gain on sale of acquired intangibles which include developed technology, customer relationships, trade names, domain names, patents and licenses from our non-GAAP gross profit, recurring revenue gross profit, operating expenses, operating income, other income and expense, net income and net income per diluted share. Amortization and gain on sale of acquired intangibles are significantly affected by timing, and as such, can be inconsistent in amount and nature.

Acquisition-Related Costs: We have excluded the costs related to acquisitions from our non-GAAP operating expenses, operating income, net income and net income per diluted share. These costs include legal and transactional costs associated with acquisition activities as well as expense related to earnouts that we would not have otherwise incurred in the periods presented as part of our continuing operations. We believe the exclusion of acquisition-related costs provides a useful comparison of our operating results to our peers.

Note on Forward-Looking Statements

The forward-looking statements included in this press release, including for example discussion of our commercial prospects, estimates of future revenues, operating income/loss and expenses, earnings per share, stock-based compensation expenses, amortization of acquired intangible assets, restructuring and other expenses, and patent litigation and settlement costs and estimates reflect management's best judgment based on factors currently known and involve risks and uncertainties. These risks and uncertainties include, but are not limited to, potential disruption of customer purchase decisions resulting from global economic conditions, timing and size of orders, relative growth of our recurring revenue, potential decreases in customer spending, uncertainty regarding purchasing trends in the cloud software market, customer cancellations or non-renewal of maintenance contracts or on-demand services, our potential inability to manage effectively any growth we experience, our ability to develop new products and services, increased competition or new entrants in the marketplace, potential impact of acquisitions and investments, changes in staffing levels, and other risks detailed in periodic reports we file with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K which may be obtained by contacting CallidusCloud's Investor Relations department at 415-445-3238, or from the Investor Relations section of CallidusCloud's website (http://www.calliduscloud.com/about-us/investor-relations/). Actual results may differ materially from those presently reported. We assume no obligation to update the information contained in this release.

©2016 Callidus Software Inc. All rights reserved. Callidus, Callidus Software, the Callidus Software logo, CallidusCloud, the CallidusCloud logo, 6FigureJobs, BridgeFront, Clicktools, iCentera, Lead to Money, LeadFormix, LeadRocket, Learnpass, Litmos, the Litmos logo,  Love Your LMS, Portals for Mortals, Producer Pro, SalesGenius, Surve, Syncfrog, Thunderbridge and TrueComp are trademarks, service marks, or registered trademarks of Callidus Software Inc. and its affiliates in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

   
   
CALLIDUS SOFTWARE INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(In thousands, except per share data)  
                         
                         
    Three Months Ended December 31,     Three Months Ended December 31,     Twelve Months Ended December 31,     Twelve Months Ended December 31,  
    2015     2014     2015     2014  
Revenue:                                
  Recurring   $ 36,004     $ 28,326     $ 129,911     $ 99,807  
  Services and license     10,780       9,800       43,176       36,811  
    Total revenue     46,784       38,126       173,087       136,618  
Cost of revenue:                                
  Recurring     9,073       7,576       34,306       31,282  
  Services and license     8,104       7,288       32,145       24,756  
    Total cost of revenue     17,177       14,864       66,451       56,038  
Gross profit     29,607       23,262       106,636       80,580  
                                 
Operating expenses:                                
  Sales and marketing     15,408       13,352       58,785       47,040  
  Research and development     7,202       5,469       26,088       20,307  
  General and administrative     8,877       8,142       33,290       26,255  
  Income from settlement and patent licensing     (500 )     (500 )     (500 )     (500 )
  Restructuring and other     394       316       628       1,025  
    Total operating expenses     31,381       26,779       118,291       94,127  
Operating loss     (1,774 )     (3,517 )     (11,655 )     (13,547 )
Interest income and other income (expense), net     (108 )     (444 )     (522 )     3,504  
Interest expense     (31 )     (77 )     (180 )     (506 )
Loss before provision for income taxes     (1,913 )     (4,038 )     (12,357 )     (10,549 )
Provision for income taxes     225       71       791       1,012  
Net loss   $ (2,138 )   $ (4,109 )   $ (13,148 )   $ (11,561 )
Net loss per share                                
  Basic and Diluted   $ (0.04 )   $ (0.08 )   $ (0.24 )   $ (0.24 )
                                 
Weighted average shares used in computing net loss per share:                                
  Basic and Diluted     56,390       48,987       54,719       47,457  
                                   
                                   
   
   
CALLIDUS SOFTWARE INC.  
CONSOLIDATED BALANCE SHEETS  
(In thousands)  
             
    December 31,     December 31,  
    2015     2014  
ASSETS  
Current assets:                
  Cash and cash equivalents   $ 77,232     $ 34,200  
  Short-term investments     19,977       2,766  
  Accounts receivable, net     43,461       41,623  
  Prepaid and other current assets     11,385       10,384  
    Total current assets     152,055       88,973  
                 
Property and equipment, net     20,540       18,755  
Goodwill     50,146       46,970  
Intangible assets, net     14,885       17,757  
Deposits and other assets     4,016       3,843  
    Total assets   $ 241,642     $ 176,298  
                 
   
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities:                
  Accounts payable   $ 3,635     $ 2,056  
  Accrued payroll and related expenses     12,510       9,051  
  Accrued expenses     11,018       18,343  
  Deferred revenue     74,644       61,427  
  Capital lease obligations     -       1,001  
    Total current liabilities     101,807       91,878  
                 
Deferred revenue, noncurrent     5,186       10,195  
Deferred income taxes, noncurrent     1,477       561  
Revolving line of credit     -       10,481  
Other noncurrent liabilities     4,371       4,709  
    Total liabilities     112,841       117,824  
                 
Stockholders' equity:                
  Common stock     56       49  
  Additional paid-in capital     428,776       344,312  
  Treasury stock     (14,430 )     (14,430 )
  Accumulated other comprehensive loss     (1,735 )     (739 )
  Accumulated deficit     (283,866 )     (270,718 )
    Total stockholders' equity     128,801       58,474  
    Total liabilities and stockholders' equity   $ 241,642     $ 176,298  
                 
                 
   
   
CALLIDUS SOFTWARE INC.  
CONSOLIDATED STATEMENTS OF CASH FLOWS  
(In thousands)  
             
  Twelve Months Ended December 31,
    2015     2014  
Cash flows from operating activities:                
  Net loss   $ (13,148 )   $ (11,561 )
  Adjustments to reconcile net loss to net cash used in operating activities:                
    Depreciation expense     6,011       5,503  
    Amortization of intangible assets     5,687       4,971  
    Gain on sale of intangible assets     -       (3,862 )
    Provision for doubtful accounts     1,897       852  
    Stock-based compensation     18,592       11,813  
    Deferred income taxes     26       (86 )
    Release of valuation allowance     -       (265 )
    Excess tax benefits from stock-based compensation     (91 )     -  
    Loss on disposal of property and equipment     10       43  
    Amortization of convertible notes issuance cost     -       58  
    Net amortization on investments     133       27  
    Changes in operating assets and liabilities:                
      Accounts receivable     (2,944 )     (11,746 )
      Prepaid and other current assets     (972 )     (3,749 )
      Other noncurrent assets     (549 )     (1,088 )
      Accounts payable     1,413       (794 )
      Accrued expenses and other liabilities     67       6,696  
      Accrued payroll and related expenses     3,459       1,149  
      Accrued restructuring and other expenses     (131 )     (181 )
      Deferred revenue     7,009       11,371  
Net cash provided by operating activities     26,469       9,151  
                 
Cash flows from investing activities:                
  Purchases of investments     (24,479 )     (2,784 )
  Proceeds from maturities and sale of investments     7,119       7,850  
  Purchases of property and equipment (net)     (13,128 )     (7,121 )
  Proceeds from sale of intangible assets, net of expense     -       4,651  
  Purchases of intangible assets     (827 )     (1,112 )
  Acquisitions, net of cash acquired     (4,365 )     (15,488 )
Net cash (used in) investing activities     (35,680 )     (14,004 )
                 
Cash flows from financing activities:                
  Proceeds from follow-on offering, net of issuance costs     64,372       -  
  Proceeds from issuance of common stock     4,484       4,852  
  Restricted stock units acquired to settle employee withholding liability     (3,070 )     (1,723 )
  Excess tax benefits from stock-based compensation     91       -  
  Proceeds (repayment) from/to line of credit     (10,481 )     10,481  
  Payment of consideration related to acquisitions     (1,802 )     (630 )
  Repayment of debt     -       (645 )
  Payment of principal under capital leases     (1,001 )     (1,294 )
Net cash provided by financing activities     52,593       11,041  
Effect of exchange rates on cash and cash equivalents     (350 )     (283 )
Net increase in cash and cash equivalents     43,032       5,905  
Cash and cash equivalents at beginning of period     34,200       28,295  
Cash and cash equivalents at end of period   $ 77,232     $ 34,200  
                 
                 
                   
                   
CALLIDUS SOFTWARE INC.  
GAAP TO NON-GAAP ADJUSTMENT SUMMARY  
(In thousands)  
(unaudited)  
   

GAAP to Non-GAAP adjustments include stock-based compensation, amortization of acquired intangible assets, patent litigation and settlement costs and estimates, interest expense on convertible notes, amortization of convertible note issuance costs, debt conversion expense, restructuring and other expenses, acquisition-related costs and gain on sale of domain names and trademarks as follows:

           
    Three Months Ended December 31,   Twelve Months Ended December 31,  
    2015   2014   2015   2014  
Cost of revenues:                          
  Recurring   $ 1,165   $ 724   $ 3,956   $ 4,234  
  Services and license     304     302     1,191     1,073  
Operating expenses:                          
  Sales and marketing     1,892     1,526     6,818     4,594  
  Research and development     840     619     3,031     2,012  
  General and administrative     1,642     2,953     8,160     9,278  
  Restructuring and other     675     316     1,151     1,025  
Interest income and other income (expense)                       (3,508 )
    Total   $ 6,518   $ 6,440   $ 24,307   $ 18,708  
                               
                               
   
   
CALLIDUS SOFTWARE INC.  
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  
(In thousands, except for percentages and per share data)  
(unaudited)  
                         
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
Non-GAAP gross profit reconciliation:                                
  Gross profit   $ 29,607     $ 23,262     $ 106,636     $ 80,580  
  Gross margin     63 %     61 %     62 %     59 %
Add back:                                
  Non-cash stock-based compensation     725       603       2,386       1,938  
  Non-cash amortization of acquired intangible assets     746       657       2,760       2,413  
  Patent litigation estimate     -       (234 )     -       956  
Non-GAAP gross profit   $ 31,078     $ 24,288     $ 111,782     $ 85,887  
  Gross margin     66 %     64 %     65 %     63 %
Non-GAAP recurring revenue gross profit reconciliation:                                
Recurring revenue gross profit   $ 26,931     $ 20,750     $ 95,605     $ 68,525  
  Recurring revenue gross margin     75 %     73 %     74 %     69 %
Add back:                                
  Non-cash stock-based compensation     431       312       1,237       912  
  Non-cash amortization of acquired intangible assets     735       646       2,719       2,366  
  Patent litigation estimate     -       (234 )     -       956  
Non-GAAP recurring revenue gross profit   $ 28,097     $ 21,474     $ 99,561     $ 72,759  
  Recurring revenue gross margin     78 %     76 %     77 %     73 %
Non-GAAP operating expense reconciliation:                
Operating expenses   $ 31,382     $ 26,779     $ 118,292     $ 94,127  
  Operating expenses, as a % of total revenues     67 %     70 %     68 %     69 %
Subtract:                                
  Non-cash stock-based compensation     (3,943 )     (3,294 )     (16,205 )     (9,875 )
  Non-cash amortization of acquired intangible assets    
(401
)    
(434
)     (1,678 )     (1,387 )
  Patent litigation and settlement costs     (29 )     (753 )     (123 )     (1,925 )
  Acquisition-related costs     (279 )     (449 )     (523 )     (708 )
  Restructuring and other     (394 )     (316 )     (628 )     (1,025 )
  Patent litigation estimate     -       (168 )             (1,989 )
Non-GAAP operating expenses   $ 26,336     $ 21,365     $ 99,135     $ 77,218  
  Non-GAAP operating expenses, as a % of total revenues     56 %     56 %     57 %     57 %
                                 
                         
                         
CALLIDUS SOFTWARE INC.  
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  
(In thousands, except for percentages and per share data)  
(unaudited)  
                         
    Three Months Ended     Twelve Months Ended  
    December 31,     December 31,  
    2015     2014     2015     2014  
Non-GAAP operating income (loss) reconciliation:                                
                                 
Operating loss   $ (1,774 )   $ (3,517 )   $ (11,655 )   $ (13,547 )
  Operating loss, as a % of total revenues     (4 ) %     (9 ) %     (7 ) %     (10 ) %
                                 
Add back:                                
  Non-cash stock-based compensation     4,668       3,897       18,592       11,813  
  Non-cash amortization of acquired intangible assets     1,147       1,091       4,440       3,800  
  Patent litigation and settlement costs     29       753       123       1,925  
  Acquisition-related costs     279       449       523       708  
  Restructuring and other     394       316       628       1,025  
  Patent litigation estimate     -       (66 )     -       2,945  
Non-GAAP operating income   $ 4,743     $ 2,923     $ 12,651     $ 8,669  
  Non-GAAP operating income (loss), as a % of total revenues     10 %     8 %     7 %     6 %
                                 
Non-GAAP net income (loss) reconciliation:                                
                                 
Net loss   $ (2,138 )   $ (4,109 )   $ (13,148 )   $ (11,561 )
  Net loss, as a % of total revenues     (5 ) %     (11 ) %     (8 ) %     (8 ) %
Add back:                                
  Non-cash stock-based compensation     4,668       3,897       18,592       11,813  
  Non-cash amortization of acquired intangible assets     1,147       1,091       4,440       3,800  
  Patent litigation and settlement costs     29       753       123       1,925  
  Acquisition-related costs     279       449       523       727  
  Restructuring and other     394       316       628       1,025  
  Patent litigation estimate     -       (66 )     -       2,945  
  Interest expense on convertible notes     -       -       -       277  
  Amortization of convertible note issuance cost     -       -       -       58  
  Gain on sale of domain names and trademarks     -       -       -       (3,862 )
Non-GAAP net income   $ 4,379     $ 2,331     $ 11,158     $ 7,147  
  Non-GAAP net income (loss), as a % of total revenues     9 %     6 %     6 %     5 %
                                 
Non-GAAP net income (loss) per share reconciliation:                                
                                 
Net loss per basic and diluted share   $ (0.04 )   $ (0.08 )   $ (0.24 )   $ (0.24 )
Add back:                                
  Non-cash stock-based compensation     0.08       0.08       0.34       0.25  
  Non-cash amortization of acquired intangible assets     0.02       0.02       0.08       0.08  
  Patent litigation and settlement costs     -       0.02       -       0.03  
  Acquisition-related costs     0.01       0.01       0.01       0.02  
  Restructuring and other     0.01       -       0.01       0.02  
  Patent litigation estimate     -       -       -       0.06  
  Interest expense on convertible notes     -       -       -       0.01  
  Amortization of convertible note issuance cost     -       -       -       (0.01 )
  Gain on sale of domain names and trademarks     -       -       -       (0.08 )
Non-GAAP net income per diluted share   $ 0.08     $ 0.05     $ 0.20     $ 0.14  
                                 
Basic and fully diluted shares reconciliation:                                
                                 
GAAP Basic shares     56,390       48,987       54,719       47,547  
Add back:                                
  Weighted average effect of diluted securities     1,740       1,909       1,650       2,575  
Diluted shares (a)     58,130       50,896       56,369       50,122  
                                 
(a) Shares used in the per share calculation for reconciling items GAAP and Non-GAAP financial measures
   
 
CALLIDUS SOFTWARE INC.
FINANCIAL OUTLOOK
(unaudited)
(In thousands, except per share data)
 

The guidance figures provided below and elsewhere in this press release are forward-looking statements, reflect a number of estimates, assumptions and other uncertainties, and are approximate in nature because the Company's future performance is difficult to predict. Such guidance is based on information available on the date of this press release, and the company assumes no obligation to update it.

         
         
    Three Months Ended
    March 31, 2016
    GAAP   Non-GAAP
         
Total revenue   $47,800 - $48,800   $47,800 - $48,800
Operating income (loss) (a)   ($4,500) - ($6,000)   $2,600 - $3,600
Net income (loss) per diluted share (c)   ($0.09) - ($0.11)   $0.04 - $0.06
         
         
         
    Twelve Months Ended
    December 31, 2016
    GAAP   Non-GAAP
         
Total revenue   $210,000 - $215,000   $210,000 - $215,000
Operating income (loss) (b)   ($15,000) - ($18,000)   $17,000 - $19,000
Net income (loss) per diluted share (c)   ($0.29) - ($0.33)   $0.25 - $0.29
         
         
(a) Estimated non-GAAP amounts above for the three months ending March 31, 2016 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $1.1 - $1.3 million, estimated stock-based compensation expense of approximately $6.5 - $7.0 million, patent litigation costs and restructuring and other expenses of approximately $0.1 - $0.4 million, and approximately $0.1 million in expense related to BridgeFront acquisition earnout.
   
(b) Estimated non-GAAP amounts above for the twelve months ending December 31, 2016 reflect adjustments that exclude the estimated amortization of acquired intangible assets of approximately $4.7 - $5.2 million, estimated stock-based compensation expense of approximately $27.0 - $28.5 million, patent litigation costs, restructuring and other expenses of approximately $0.7 - $1.5 million, and approximately $0.3 million in expense related to BridgeFront acquisition earnout.
   
(c) Non-GAAP fully diluted share count is between 58.5 million and 61.0 million. GAAP share count is between 56.5 million and 59.0 million.
   
   

Investor Relations Contact
Ed Keaney
Market Street Partners
(415) 445-3238
cald@marketstreetpartners.com