- On a year over year, constant currency basis, software revenue was up 2% in Q3 FY’15 and is up 5% for the first nine months of FY’15 on a GAAP basis and up 6% for the first nine months of FY’15 on a non-GAAP basis.
- We added 78 new IoT customers during the quarter, bringing our total added through the first nine months of the year to 182.
- During the quarter, subscription solution bookings were 16% of license and subscription solutions bookings, down from 21% a year ago when we had two significant subscription bookings, including one mega deal, in our core business.
- We had 8 large deals of greater than $1 million of license and subscription solutions (L&SS) bookings from a single customer, down from 21 in the third quarter FY’14. We had no mega deals (transactions with greater than $5 million of L&SS bookings from a single customer) in Q3 FY’15, down from one in the third quarter FY’14.
- GAAP operating margin was 7.1% (including a $14 million legal settlement accrual, $4 million of restructuring charges, $3 million of acquisition-related charges, and $2 million of pension plan termination costs). Non-GAAP operating margin was 24.1%.
- Cash flow from operations was $87 million, we repurchased $50 million of shares, and we ended the quarter with total cash and cash equivalents of $275 million. Total debt was $624 million and DSO was 55 days.
Business Outlook
For the quarter and fiscal year ending September 30, 2015, the Company expects:
| ($ in millions) |
Q4’15
Low |
Q4’15
High |
FY’15
Low |
FY’15
High |
|||||||||||||
| Subscription Solutions % of L&SS Bookings | 14 | % | 14 | % | 15 | % | 15 | % | |||||||||
| License and Subscription Solutions Revenue | $ | 90 | $ | 105 | $ | 340 | $ | 355 | |||||||||
| Support Revenue | 164 | 164 | 681 | 681 | |||||||||||||
| Total Software Revenue | 254 | 269 | 1,021 | 1,036 | |||||||||||||
| Professional Services Revenue | 50 | 50 | 229 | 229 | |||||||||||||
| Total Revenue | $ | 304 | $ | 319 | $ | 1,250 | $ | 1,265 | |||||||||
| Operating Margin (GAAP) | 16 | % | 17 | % | 9 | % | 9 | % | |||||||||
| Operating Margin (Non-GAAP) | 26 | % | 26 | % | 24 | % | 24 | % | |||||||||
| Tax Rate (GAAP) | 1 | % | 1 | % | 0 | % | 0 | % | |||||||||
| Tax Rate (Non-GAAP) | 10 | % | 5 | % | 11 | % | 10 | % | |||||||||
| Shares Outstanding | 116 | 116 | 116 | 116 | |||||||||||||
| EPS (GAAP) | $ | 0.37 | $ | 0.43 | $ | 0.83 | $ | 0.89 | |||||||||
| EPS (Non-GAAP) | $ | 0.59 | $ | 0.66 | $ | 2.15 | $ | 2.23 | |||||||||
