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): July 26, 2007
VERISIGN, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
| 000-23593 | 94-3221585 | |
| (Commission File Number) | (IRS Employer Identification No.) |
| 487 East Middlefield Road, Mountain View, CA | 94043 | |
| (Address of Principal Executive Offices) | (Zip Code) |
(650) 961-7500
(Registrant’s Telephone Number, Including Area Code)
(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:
| ¨ | 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)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On July 26, 2007, VeriSign, Inc. (“VeriSign” or the “Company”) announced its financial results for the quarter ended June 30, 2007 and certain other information. A copy of this press release is attached hereto as Exhibit 99.1.
The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed 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 filing.
Use of Non-GAAP Financial Information
VeriSign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings releases, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: amortization of intangible assets, stock-based compensation, former CEO severance, non-recurring legal costs and settlements, restructuring and other charges, net loss on sale of investments, change in fair value of Jamba JV call option, and stock option investigation costs.
Management believes that this non-GAAP financial data supplements our GAAP financial by providing investors with additional information which allows them to have a clearer picture of the company’s core recurring operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors’ overall understanding of our financial performance and the comparability of the company’s operating results from period to period. In the press release attached hereto to as Exhibit 99.1, we have provided a reconciliation of the non-GAAP financial information that we provide each quarter with the comparable financial information reported in accordance with GAAP for the given period.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| 99.1 | Text of press release of VeriSign, Inc. issued on July 26, 2007. |
2
SIGNATURE
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.
| VERISIGN, INC. | ||||
| Date: July 26, 2007 | By: | /s/ Richard H. Goshorn | ||
| Richard H. Goshorn | ||||
| Senior Vice President, General Counsel and Secretary | ||||
3
Exhibit Index
| Exhibit No. | Description | |
| Exhibit 99.1 | Text of press release of VeriSign, Inc. issued on July 26, 2007. |
4
Exhibit 99.1
VeriSign Reports Second Quarter Results in Line with Prior Guidance
Domain Name Registrations and SSL Installed Base Reach Record Levels
MOUNTAIN VIEW, CA – July 26, 2007 – VeriSign, Inc. (Nasdaq: VRSN), the leading provider of digital infrastructure for the networked world, today reported financial results for the second quarter ended June 30, 2007.
VeriSign reported total revenue of $368 million for the second quarter of 2007. These results include $4 million of revenue related to the Jamba Services business that is held for sale and which is reported under discontinued operations on the statements of operation. On a GAAP basis, VeriSign reported a net loss of $5 million for the second quarter of 2007 and a net loss per share of $0.02 per fully-diluted share.
On a non-GAAP basis, VeriSign reported net income of $62 million for the second quarter of 2007 and earnings per share of $0.25 per diluted share. A table reconciling the GAAP to non-GAAP net income reported above is appended to this release.
“We are generally pleased with our second quarter performance,” said Bill Roper, president and chief executive officer of VeriSign. “These results indicate that the benefits of the company-wide reorganization initiated at the first of the year are beginning to impact our operational and financial performance. We are focusing on more discipline in our business processes and the growth opportunities that we see for the remainder of this year and into the next.”
“Our second quarter results demonstrate solid financial execution,” said Bert Clement, chief financial officer of VeriSign. “Strong growth in the core registry and SSL businesses continues to strengthen our balance sheet, with Deferred Revenue of $691 million, up 4% from last quarter, and Cash and Investments of $819 million.”
Business Highlights
| • | In May, VeriSign announced that its Board of Directors had elected William A. Roper, Jr. as President and Chief Executive Officer. The Board also elected Edward A. Mueller as Chairman of the Board. |
| • | Earlier this month, the Company announced that its Board of Directors had appointed Albert E. Clement as Chief Financial Officer. |
| • | VeriSign’s Chief Technology Officer, Ari Balogh, was recognized by InfoWorld Magazine as a Top 25 CTO for his continued leadership of Project Titan, a three-year initiative to fortify and expand the capacity of the global Internet infrastructure. |
| • | On July 16, 2007, VeriSign announced that it had become current in its filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2006 as well as Quarterly Reports for the second and third quarters of 2006 and the first quarter of 2007. |
| • | Subsequent to completing its filings, the Company received notification from Nasdaq that the Company had demonstrated compliance with Nasdaq’s filing requirements under the Marketplace Rules, that the matter relating to the company’s listing status had been closed, and that VeriSign’s securities will continue to be listed on the Nasdaq Global Select Market. |
| • | John D. Roach has been appointed to the Company’s Board of Directors, effective July 19, 2007. Mr. Roach will serve on the Audit Committee of the Board of Directors. |
| • | At eBay Live! in June, PayPal announced the general availability of the PayPal Security Key, a two-factor authentication token that generates a unique security code to protect consumers against phishing and online fraud, in the United States, Germany and Australia. The PayPal Security Key is part of the VeriSign Identity Protection (VIP) Network, helping to prevent unauthorized access to consumer accounts on eBay, PayPal and a variety of e-commerce websites. |
| • | VeriSign and Live Earth integrated mobile messaging and online interactivity into events around the globe on 7.7.07 to enable millions of participants to use their mobile phones to personally participate in the broadcasts and live concerts demonstrating their commitment to making a change for the environment. |
| • | VeriSign partnered with AirMagnet in June to launch the VeriSign Wireless Intrusion Prevention Service (IPS), the first comprehensive service designed to effectively shield rapidly growing corporate wireless networks from data theft and other prominent security threats. |
Internet Services Group
| • | The Internet Services Group (ISG) – which includes VeriSign Security Services (VSS) and VeriSign Information Services (VIS) – delivered $225 million of revenue in the second quarter of 2007. |
| • | The VeriSign Information Services business ended the quarter with approximately 73 million active domain names in .com and .net, representing a 5% increase over Q1 2007 and 27% increase year over year. |
| • | The VeriSign website certificate business issued approximately 211,000 new and renewal certificates in Q2, bringing the total base to 883,000, up 4% from Q1 2007. The installed base excluding the GeoTrust certificates grew 13% year over year. |
Communications Services Group
| • | VeriSign Communications Services (VCS) Group – which provides intelligent communications, commerce and content services to telecommunications carriers and next generation service providers – delivered revenues of $143 million in the second quarter of 2007. |
| • | The Communications and Commerce group generated revenues of $90 million. |
| • | The Content group, which includes Messaging Services, generated revenues of $39 million during the quarter. |
Additional Financial Information
| • | Year-to-date capital expenditures were approximately $48 million. |
| • | VeriSign ended the second quarter with Cash, Cash Equivalents, Restricted Cash and Short-term Investments of $819 million, an increase of $80 million from the prior quarter. |
| • | Deferred revenue on the balance sheet was $691 million as of June 30, 2007, an increase of $29 million from the prior quarter. |
| • | Net days sales outstanding (Net DSO), which takes into account the change in deferred revenue balances, was 44 days at the end of Q2, an improvement of one day from Q1. |
Non-GAAP results exclude the following items which are included under GAAP: amortization of intangible assets, stock-based compensation, former CEO severance, non-recurring legal costs and settlements, restructuring and other charges, net loss on sale of investments, unrealized gain on Jamba JV call option, and stock option investigation costs. A table reconciling the GAAP to non-GAAP net income is appended to this release.
Today’s Conference Call
VeriSign will host a live teleconference call today at 2:00 pm (PDT) to review the quarter’s results. The call will be accessible by direct dial at (888) 676-VRSN (US) or (913) 981-4903 (international). A listen-only live web cast and accompanying slide presentation of the earnings conference call will also be available at http://investor.verisign.com. A replay of this call will be available at (888) 203-1112 or (719) 457-0820 (passcode: 7180604) beginning at 5:00 pm (PDT) on July 26 and will run through August 1. This press release and the financial information discussed on today’s conference call are available on the Investor Relations section of the VeriSign website at http://investor.verisign.com.
About VeriSign
VeriSign, Inc. (Nasdaq: VRSN) operates intelligent infrastructure services that enable and protect billions of interactions every day across the world’s voice, video and data networks. Additional news and information about the company is available at www.verisign.com.
VRSNF
Contacts
Investor Relations: Nancy Fazioli, ir@verisign.com, 650-426-5146
Media Relations: Lisa Malloy, emalloy@verisign.com, 202-270-7600
###
Statements in this announcement other than historical data and information constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause VeriSign’s actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, the uncertainty of future revenue and profitability and potential fluctuations in quarterly operating results due to such factors as increasing competition and pricing pressure from competing services offered at prices below our prices and market acceptance of our existing services, the inability of VeriSign to successfully develop and market new services and the uncertainty of whether new services as provided by VeriSign will achieve market acceptance or result in any revenues and the risk acquired businesses will not be integrated successfully and unanticipated costs of such integration. More information about potential factors that could affect the company’s business and financial results is included in VeriSign’s filings with the Securities and Exchange Commission, including in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 and quarterly reports on Form 10-Q and Current Reports on Form 8-K. VeriSign undertakes no obligation to update any of the forward-looking statements after the date of this press release.
VERISIGN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
| June 30, 2007 |
December 31, 2006 |
|||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 656,517 | $ | 478,749 | ||||
| Short-term investments |
94,308 | 198,656 | ||||||
| Accounts receivable, net |
225,296 | 319,305 | ||||||
| Prepaid expenses and other current assets |
100,178 | 217,196 | ||||||
| Deferred tax assets |
80,063 | 84,318 | ||||||
| Current assets of discontinued operations |
34,909 | 34,356 | ||||||
| Total current assets |
1,191,271 | 1,332,580 | ||||||
| Property and equipment, net |
581,140 | 605,292 | ||||||
| Goodwill |
1,261,944 | 1,449,493 | ||||||
| Other intangible assets, net |
242,003 | 333,430 | ||||||
| Restricted cash |
48,361 | 49,437 | ||||||
| Long-term deferred tax assets |
218,050 | 177,805 | ||||||
| Other assets, net |
34,545 | 25,214 | ||||||
| Investment in unconsolidated entities |
105,500 | — | ||||||
| Long-term assets of discontinued operations |
7,055 | 1,217 | ||||||
| Total long-term assets |
2,498,598 | 2,641,888 | ||||||
| Total assets |
$ | 3,689,869 | $ | 3,974,468 | ||||
| Liabilities and Stockholders’ Equity |
||||||||
| Current liabilities: |
||||||||
| Accounts payable and accrued liabilities |
$ | 319,985 | $ | 675,105 | ||||
| Accrued restructuring costs |
12,666 | 3,818 | ||||||
| Deferred revenue |
505,119 | 448,413 | ||||||
| Short-term debt |
— | 199,000 | ||||||
| Deferred tax liabilities |
1,025 | 1,414 | ||||||
| Current liabilities of discontinued operations |
33,798 | 31,743 | ||||||
| Total current liabilities |
872,593 | 1,359,493 | ||||||
| Long-term deferred revenue |
179,666 | 159,439 | ||||||
| Long-term accrued restructuring costs |
624 | 937 | ||||||
| Long-term tax liability |
44,705 | — | ||||||
| Other long-term liabilities |
10,497 | 5,175 | ||||||
| Long-term deferred tax liabilities |
12,953 | 24,815 | ||||||
| Long-term liabilities of discontinued operations |
— | 34 | ||||||
| Total long-term liabilities |
248,445 | 190,400 | ||||||
| Total liabilities |
1,121,038 | 1,549,893 | ||||||
| Commitments and contingencies |
||||||||
| Minority interest in subsidiaries |
47,684 | 47,716 | ||||||
| Stockholders’ equity: |
||||||||
| Preferred stock - par value $.001 per share Authorized shares: 5,000,000 Issued and outstanding shares: none |
— | — | ||||||
| Common stock - par value $.001 per share Authorized shares: 1,000,000,000 Issued and outstanding shares: 243,838,287 and 243,844,122 (excluding 35,493,973 and 35,471,662 shares held in treasury at June 30, 2007 and December 31, 2006, respectively) |
244 | 244 | ||||||
| Additional paid-in capital |
23,362,353 | 23,314,511 | ||||||
| Accumulated deficit |
(20,834,462 | ) | (20,929,498 | ) | ||||
| Accumulated other comprehensive loss |
(6,988 | ) | (8,398 | ) | ||||
| Total stockholders’ equity |
2,521,147 | 2,376,859 | ||||||
| Total liabilities and stockholders’ equity |
$ | 3,689,869 | $ | 3,974,468 | ||||
VERISIGN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Revenues |
$ | 363,217 | $ | 387,832 | $ | 736,266 | $ | 757,941 | ||||||||
| Cost and expenses |
||||||||||||||||
| Cost of revenues |
147,836 | 145,715 | 298,476 | 282,682 | ||||||||||||
| Sales & marketing |
63,890 | 92,808 | 142,840 | 183,358 | ||||||||||||
| Research & development |
36,254 | 31,021 | 81,416 | 59,280 | ||||||||||||
| General & administrative |
77,142 | 59,297 | 128,731 | 119,812 | ||||||||||||
| Restructuring, impairments & other charges |
15,179 | (7,604 | ) | 42,191 | (4,195 | ) | ||||||||||
| Amortization of intangible assets |
29,669 | 31,833 | 61,456 | 59,833 | ||||||||||||
| Acquired in-process R&D |
— | 4,600 | — | 15,500 | ||||||||||||
| Total costs & expenses |
369,970 | 357,670 | 755,110 | 716,270 | ||||||||||||
| Operating (loss) income |
(6,753 | ) | 30,162 | (18,844 | ) | 41,671 | ||||||||||
| Other income, net |
10,849 | 4,946 | 92,236 | 33,667 | ||||||||||||
| Income from continuing operations before income taxes, earnings from unconsolidated entities and minority interest |
4,096 | 35,108 | 73,392 | 75,338 | ||||||||||||
| Income tax expense (benefit) |
11,609 | (341,532 | ) | 20,371 | (317,317 | ) | ||||||||||
| Earnings from unconsolidated entities, net of tax |
1,748 | — | 2,196 | — | ||||||||||||
| Minority interest, net of tax |
82 | (758 | ) | (487 | ) | (1,405 | ) | |||||||||
| Net (loss) income from continuing operations |
(5,683 | ) | 375,882 | 54,730 | 391,250 | |||||||||||
| Net income from discontinued operations, net of tax |
965 | 905 | 2,305 | 2,023 | ||||||||||||
| Net (loss) income |
$ | (4,718 | ) | $ | 376,787 | $ | 57,035 | $ | 393,273 | |||||||
| Basic net income (loss) per share from: |
||||||||||||||||
| Continuing operations |
$ | (0.02 | ) | $ | 1.54 | $ | 0.22 | $ | 1.59 | |||||||
| Discontinued operations |
0.00 | 0.00 | 0.01 | 0.01 | ||||||||||||
| Net (loss) income |
$ | (0.02 | ) | $ | 1.54 | $ | 0.23 | $ | 1.60 | |||||||
| Diluted net (loss) income per share from: |
||||||||||||||||
| Continuing operations |
$ | (0.02 | ) | $ | 1.52 | $ | 0.22 | $ | 1.58 | |||||||
| Discontinued operations |
0.00 | 0.00 | 0.01 | 0.01 | ||||||||||||
| Net (loss) income |
$ | (0.02 | ) | $ | 1.52 | $ | 0.23 | $ | 1.59 | |||||||
| Shares used in per share computation: |
||||||||||||||||
| Basic |
243,846 | 244,744 | 243,849 | 245,171 | ||||||||||||
| Diluted |
243,846 | 247,252 | 246,102 | 247,745 | ||||||||||||
| Stock-based compensation |
||||||||||||||||
| Cost of revenue |
$ | 3,659 | $ | 3,381 | $ | 7,339 | $ | 7,286 | ||||||||
| Sales & marketing |
4,198 | 3,709 | 9,913 | 7,252 | ||||||||||||
| Research & development |
2,298 | 2,596 | 5,322 | 4,873 | ||||||||||||
| General & administrative |
15,118 | 5,647 | 21,071 | 12,588 | ||||||||||||
| Total stock-based compensation |
$ | 25,273 | $ | 15,333 | $ | 43,645 | $ | 31,999 | ||||||||
VERISIGN, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS RECONCILIATION
(In thousands, except per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Revenue reconciliation | ||||||||||||||||
| Revenue from continuing operations |
$ | 363,217 | $ | 387,832 | $ | 736,266 | $ | 757,941 | ||||||||
| Revenue from discontinued operations (1) |
4,407 | 2,938 | 8,804 | 5,598 | ||||||||||||
| Revenue including discontinued operations |
$ | 367,624 | $ | 390,770 | $ | 745,070 | $ | 763,539 | ||||||||
(1) For the three and six months ended June 30, 2007, revenue from discontinued operations represents activity related primarily to the Jamba Services business. VeriSign previously provided investors and analysts forecasts for the period that included revenue up until an estimated disposition date of the business. For the three and six months ended June 30, 2006, revenue from discontinued operations represents activity related to the Payments Gateway business. For GAAP purposes, revenue from these and all periods are reclassified to net income from discontinued operations. |
| |||||||||||||||
| Statements of operations reconciliation |
||||||||||||||||
| Net (loss) income on a GAAP basis |
$ | (4,718 | ) | $ | 376,787 | $ | 57,035 | $ | 393,273 | |||||||
| Amortization of intangible assets |
29,669 | 31,833 | 61,456 | 59,833 | ||||||||||||
| Acquired in-process research and development |
— | 4,600 | — | 15,500 | ||||||||||||
| Stock-based compensation |
25,273 | 15,333 | 43,645 | 31,999 | ||||||||||||
| Former CEO severance |
10,430 | — | 10,430 | — | ||||||||||||
| Non-recurring legal costs and settlements |
487 | 1,300 | 762 | 3,300 | ||||||||||||
| Restructuring, impairments and other charges (reversals) |
15,179 | (7,604 | ) | 42,191 | (4,195 | ) | ||||||||||
| Net (gain) loss on sale of investments |
(55 | ) | 28 | (885 | ) | (20,220 | ) | |||||||||
| Net gain on sale of subsidiary |
— | — | (74,999 | ) | — | |||||||||||
| Unrealized gain on Jamba JV call option |
(3,755 | ) | — | (3,755 | ) | — | ||||||||||
| Stock option investigation costs |
3,787 | — | 6,719 | — | ||||||||||||
| Income tax expense (benefit) (2) |
12,307 | (340,972 | ) | 21,839 | (316,550 | ) | ||||||||||
| Non-GAAP income before income taxes |
88,604 | 81,305 | 164,438 | 162,940 | ||||||||||||
| Non-GAAP tax rate in lieu of the GAAP rate |
(26,581 | ) | (24,392 | ) | (49,331 | ) | (48,882 | ) | ||||||||
| Net income on a non-GAAP basis |
$ | 62,023 | $ | 56,913 | $ | 115,107 | $ | 114,058 | ||||||||
| Statements of operations reconciliation per share | ||||||||||||||||
| Diluted net (loss) income per share on a GAAP basis |
$ | (0.02 | ) | $ | 1.52 | $ | 0.23 | $ | 1.59 | |||||||
| Amortization of intangible assets |
0.12 | 0.13 | 0.25 | 0.24 | ||||||||||||
| Acquired in-process research and development |
— | 0.02 | — | 0.06 | ||||||||||||
| Stock-based compensation |
0.10 | 0.06 | 0.17 | 0.13 | ||||||||||||
| Former CEO severance |
0.04 | — | 0.04 | — | ||||||||||||
| Non-recurring legal costs and settlements |
— | 0.01 | — | 0.01 | ||||||||||||
| Restructuring, impairments and other charges (reversals) |
0.06 | (0.03 | ) | 0.17 | (0.02 | ) | ||||||||||
| Net (gain) loss on sale of investments |
— | — | — | (0.08 | ) | |||||||||||
| Net gain on sale of subsidiary |
— | — | (0.30 | ) | — | |||||||||||
| Unrealized gain on Jamba JV call option |
(0.02 | ) | — | (0.02 | ) | — | ||||||||||
| Stock option investigation costs |
0.02 | — | 0.03 | — | ||||||||||||
| Non-GAAP tax rate of 30% in lieu of the GAAP rate |
(0.05 | ) | (1.48 | ) | (0.11 | ) | (1.47 | ) | ||||||||
| Diluted net income per share on a non-GAAP basis |
$ | 0.25 | $ | 0.23 | $ | 0.46 | $ | 0.46 | ||||||||
| Shares used in calculation of net (loss) income per share |
249,404 | 247,252 | 248,880 | 247,745 | ||||||||||||
| (2) | Includes tax from discontinued operations of $698 and $1,468 for the three and six months ended June 30, 2007, respectively, and $560 and $767 for the three and six months ended June 30, 2006 respectively. |
VeriSign provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). Along with this information, we typically disclose and discuss certain non-GAAP financial information in our quarterly earnings release, on investor conference calls and during investor conferences and related events. This non-GAAP financial information does not include the following types of financial measures that are included in GAAP: amortization of intangible assets, acquired in-process research and development, stock-based compensation, former CEO severance, non-recurring legal costs and settlements, restructuring, impairments and other charges (reversals), net (gain) loss on sale of investments, net gain on sale of subsidiary, unrealized gain on Jamba JV call option and stock option investigation costs. Non-GAAP financial information is also adjusted for a 30% tax rate which differs from the GAAP tax rate.
Management believes that this non-GAAP financial data supplements our GAAP financial data by providing investors with additional information that allows them to have a clearer picture of the company’s core operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP. We believe that the non-GAAP information enhances the investors’ overall understanding of our financial performance and the comparability of the company’s operating results from period to period. Above, we have provided a reconciliation of the non-GAAP financial information that we provide each quarter with the comparable financial information reported in accordance with GAAP for the given period.