For the first quarter of 2018, the Company expects revenue under ASC 606
to be between $41 million and $47 million. The Company expects royalty
revenue to be between $21 million and $27 million, and roughly $20
million from product, contract and other revenue. Revenue is not without
risk and achieving revenue in this range will require that the Company
sign customer agreements for patent licensing, various product sales,
mobile payments software and solutions licensing among other matters.
The Company also expects operating costs and expenses to be between $86
million and $82 million, and diluted net loss per share to be between
$0.34 and $0.27. Additionally, the Company expects non-GAAP operating
costs and expenses to be between $67 million and $63 million, and
non-GAAP diluted net loss per share to be between $0.19 and $0.12. These
expectations also assume non-GAAP interest and other income and expense
of $2 million, tax rate of 24% (refer to non-GAAP financial information
below - income tax adjustments) and diluted share count of 110 million,
and exclude stock-based compensation expense ($8 million), amortization
expense ($11 million), and non-cash interest expense on convertible
notes ($3 million).
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2018 First Quarter Outlook under ASC 605
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(In millions, except per share amounts)
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GAAP
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Non-GAAP (1)
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Revenue
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$94 - $100
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$94 - $100
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Total operating costs and expenses
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$86 - $82
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$67 - $63
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Operating income
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$9 - $19
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$27 - $37
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Diluted net income per share
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$0.03 - $0.09
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$0.17 - $0.23
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(1)
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See “Reconciliation of GAAP Forward Looking Estimates to Non-GAAP
Forward Looking Estimates” tables included below. Note that the
applicable non-GAAP measures are presented and that revenue is
solely presented on a GAAP basis.
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