Veeva Announces Fiscal 2016 Third Quarter Results

Total Revenues of $106.9M, up 28% Year-over-year;

Subscription Services Revenue of $81.7M, up 33% Year-over-year

PLEASANTON, Calif.--(BUSINESS WIRE)--Veeva Systems Inc. (NYSE: VEEV), a leading provider of industry cloud solutions for life sciences, today announced results for its fiscal third quarter ended October 31, 2015.

“We had great execution in the third quarter, fueled by solid growth in our existing markets and significant traction in major new areas. We’re seeing the real benefit of an expanding solution set that addresses multiple large markets,” said CEO Peter Gassner. "Through customer success, product excellence, and strategic solutions spanning R&D to commercial, it's clear Veeva is becoming the go-to vendor for the life sciences industry.”

Fiscal 2016 Third Quarter Results:

• Revenues: Total revenues for the third quarter were $106.9 million, up from $83.8 million one year ago, an increase of 28% year-over-year. Subscription services revenues for the third quarter were $81.7 million, up from $61.4 million one year ago, an increase of 33% year-over-year.
• Operating income and non-GAAP operating income⁽¹⁾: Third quarter operating income was $20.1 million, compared to $19.9 million one year ago, an increase of 1% year-over-year. Non-GAAP operating income for the third quarter was $28.2 million, compared to $24.1 million one year ago, an increase of 17% year-over-year.
• Net income and non-GAAP net income⁽¹⁾: Third quarter net income was $10.5 million, compared to $10.3 million one year ago, an increase of 2% year-over-year. Non-GAAP net income for the third quarter was $16.9 million, compared to $13.7 million one year ago, an increase of 24% year-over-year.
• Net income per share and non-GAAP net income per share⁽¹⁾: For the third quarter, fully diluted net income per share was $0.07, compared to $0.07 one year ago, while non-GAAP fully diluted net income per share was $0.12, compared to $0.09 one year ago.
• Zinc Ahead transaction: Our GAAP and non-GAAP results for the third quarter reflect a $1.6 million revenue reduction due to purchase accounting write-downs and $1.8 million in one-time transaction costs.

“For the first time, our non-CRM offerings accounted for more than 25% of total revenues in the quarter. Our success across the board stems from the reputation we've developed for exceptional quality and consistent delivery,” said CFO Tim Cabral. "We are executing well and setting up for the tremendous opportunity that lies ahead.”

Recent Highlights:

• Acquired Zinc Ahead – Veeva and Zinc bring together exceptional cloud software and the top domain experts to deliver the most complete commercial content management solution to the life sciences industry.
• Commercial Cloud momentum with Veeva Network and Veeva Data wins – Two top 20 pharmaceutical companies began rolling out Veeva Network concurrently with global Veeva CRM deployments. Additionally, Veeva won its first seven-figure deal for Veeva KOL Data as measured by annual contract value.
• Veeva R&D Summit – Veeva hosted more than 100 life sciences companies and drew 50% more attendees than last year for its second annual conference focused on the R&D side of life sciences.
• Launched new Vault products – Announced December 2015 availability of new Vault products and the first customers signed.
  • Expansion in clinical with Vault Study Start-Up for the management of the content and the activities associated with activating sites for clinical trials.
  • Expansion in regulatory with Vault Registrations for managing product registration data worldwide and Vault SubmissionsArchive for storing a complete history of regulatory submissions. Combined with Vault Submissions, the three solutions form a powerful suite for regulatory information management, Veeva Vault RIM.

Financial Outlook:

Veeva is providing guidance for its fiscal fourth quarter ending January 31, 2016 as follows:

• Total revenues between $109.0 and $111.0 million.
• Non-GAAP operating income between $25.5 and $26.5 million.
• Non-GAAP fully diluted net income per share of $0.11

This fourth quarter guidance implies the following results for Veeva’s fiscal year ending January 31, 2016:

• Total revenues between $404.0 and $406.0 million.
• Non-GAAP operating income between $108.7 and $109.7 million.
• Non-GAAP fully diluted net income per share between $0.46 and $0.47.

Conference Call Information:
What:	Veeva’s Fiscal 2016 Third Quarter Results Conference Call
When:	Tuesday, November 24, 2015
Time:	1:30 p.m. PT (4:30 p.m. ET)
Live Call:	1-877-201-0168, domestic
	1-647-788-4901, international
	Conference ID 6506 7916
Webcast:	ir.veeva.com

__________

⁽¹⁾ This press release uses non-GAAP financial metrics that are adjusted for the impact of various GAAP items. See the sections titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of GAAP to Non-GAAP Financial Measures” below for details.

About Veeva Systems

Veeva Systems Inc. is a leader in cloud-based software for the global life sciences industry. Committed to innovation, product excellence, and customer success, Veeva has more than 375 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. Veeva is headquartered in the San Francisco Bay Area, with offices in Europe, Asia, and Latin America. For more information, visit www.veeva.com.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding Veeva's future financial outlook and financial performance, market growth, the benefits from the use of Veeva's solutions, our strategies, and general business conditions. Any forward-looking statements contained in this press release are based upon Veeva's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Veeva's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Veeva disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including (i) our limited operating history, which makes it difficult to predict future results;(ii) our expectation that the future growth rate of our revenues will decline, and that as our costs increase, we may not be able to generate sufficient revenues to sustain the level of profitability we have achieved in the past or achieve profitability in the future; (iii) breaches in our security measures, unauthorized access to our customers’ data, or system availability or performance problems associated with our data centers or computing infrastructure; (iv) dependence on revenues from our Veeva CRM solution, and the rate of adoption of our new products; (v) acceptance of our applications and services by customers, including renewals of existing subscriptions and purchases of subscriptions for additional users and solutions; (vi) our ability to integrate the Zinc Ahead business, retain Zinc Ahead customers and achieve the expected results from our acquisition of Zinc Ahead; (vii) loss of one or more key customers; (viii) adverse changes in general economic or market conditions, particularly in the life sciences industry; (ix) delays or reductions in information technology spending, particularly in the life sciences industry, including as a result of mergers in the life sciences industry; (x) the development of the market for enterprise cloud services, particularly in the life sciences industry; (xi) competitive factors, including but not limited to pricing pressures, industry consolidation, difficulty securing rights to access, host or integrate with complementary third party products or data used by our customers, entry of new competitors and new applications and marketing initiatives by our competitors; (xii) our ability to manage our growth effectively; and (xiii) changes in sales that may not be immediately reflected in our results due to the ratable recognition of our subscription revenue.

Additional risks and uncertainties that could affect Veeva’s financial 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 filing on Form 10-Q for the period ended July 31, 2015. This is available on the company’s website at http://www.veeva.com under the Investors section and on the SEC’s website at www.sec.gov. Further information on potential risks that could affect actual results will be included in other filings Veeva makes with the SEC from time to time.

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
	October 31,		January 31,
	2015		2015
Assets
Current assets:
Cash and cash equivalents	$	108,594	$	129,253
Short-term investments		230,874		268,620
Accounts receivable, net		75,301		92,661
Deferred income taxes		5,124		4,815
Prepaid expenses and other current assets		7,445		6,488
Total current assets		427,338		501,837
Property and equipment, net		47,434		28,203
Capitalized internal-use software, net		871		1,240
Goodwill		93,059		4,850
Intangible assets, net		50,953		4,904
Other long-term assets		5,378		3,856
Total assets	$	625,033	$	544,890
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	7,211	$	3,886
Accrued compensation and benefits		9,928		6,497
Accrued expenses and other liabilities		11,584		8,939
Income tax payable		5,607		3,241
Deferred revenue		102,053		112,960
Total current liabilities		136,383		135,523
Deferred income taxes, noncurrent		11,719		170
Other long-term liabilities		2,953		2,364
Total liabilities		151,055		138,057
Stockholders’ equity:
Class A common stock		1		—
Class B common stock		—		1
Additional paid-in capital		348,157		317,881
Accumulated other comprehensive income (loss)		25		26
Retained earnings		125,795		88,925
Total stockholders’ equity		473,978		406,833
Total liabilities and stockholders’ equity	$	625,033	$	544,890

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
	For the three months ended October 31,						For the nine months ended October 31,
	2015			2014			2015			2014
Revenues:
Subscription services	$	81,736		$	61,435		$	225,910		$	166,528
Professional services and other		25,185			22,390			69,041			59,682
Total revenues		106,921			83,825			294,951			226,210
Cost of revenues^(2):
Cost of subscription services		18,273			14,409			50,965			39,795
Cost of professional services and other		18,739			16,007			51,505			44,707
Total cost of revenues		37,012			30,416			102,470			84,502
Gross profit		69,909			53,409			192,481			141,708
Operating expenses^(2):
Research and development		17,667			10,635			45,879			29,414
Sales and marketing		20,345			14,251			53,898			40,875
General and administrative		11,797			8,582			29,326			22,136
Total operating expenses		49,809			33,468			129,103			92,425
Operating income		20,100			19,941			63,378			49,283
Other income (expense), net		110			(989	)		428			(1,120	)
Income before income taxes		20,210			18,952			63,806			48,163
Provision for income taxes		9,728			8,694			26,936			21,106
Net income	$	10,482		$	10,258		$	36,870		$	27,057
Net income attributable to common stockholders, basic and diluted:	$	10,473		$	10,198		$	36,832		$	26,851
Net income per share attributable to common stockholders:
Basic	$	0.08		$	0.08		$	0.28		$	0.21
Diluted	$	0.07		$	0.07		$	0.25		$	0.19
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		132,413			129,212			131,731			126,836
Diluted		145,063			144,289			144,909			144,082
Other comprehensive income (loss):
Net change in unrealized losses on available-for-sale investments	$	(34	)	$	97		$	(113	)	$	29
Net change in cumulative foreign currency translation gain (loss)		79			(15	)		112			(72	)
Comprehensive income	$	10,527		$	10,340		$	36,869		$	27,014
________________
^(2)Includes stock-based compensation as follows:
Cost of revenues:
Cost of subscription services	$	149		$	74		$	396		$	181
Cost of professional services and other		1,042			549			2,757			1,711
Research and development		2,021			942			5,047			2,703
Sales and marketing		1,933			754			4,808			2,290
General and administrative		1,547			1,266			4,094			3,356
Total stock-based compensation	$	6,692		$	3,585		$	17,102		$	10,241

VEEVA SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	For the three months ended October 31,						For the nine months ended October 31,
	2015			2014			2015			2014
Cash flows from operating activities
Net income	$	10,482		$	10,258		$	36,870		$	27,057
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,481			1,022			4,849			2,943
Amortization of premiums on short-term investments		693			611			2,206			1,344
Stock-based compensation		6,691			3,585			17,101			10,241
Deferred income taxes		(308	)		(76	)		(308	)		(76	)
Bad debt expense		(35	)		(28	)		203			41
Changes in operating assets and liabilities:
Accounts receivable		(2,689	)		16,684			22,842			13,151
Income taxes		2,758			769			2,601			(2,189	)
Other current and long-term assets		6,266			(2,294	)		739			(3,644	)
Accounts payable		1,074			354			874			56
Accrued expenses and other current liabilities		3,300			4,017			3,637			2,791
Deferred revenue		(11,567	)		(635	)		(15,415	)		17,288
Other long-term liabilities		589			(11	)		509			(9	)
Net cash provided by operating activities		19,735			34,256			76,708			68,994
Cash flows from investing activities
Purchases of short-term investments		(94,195	)		(103,836	)		(262,110	)		(333,728	)
Maturities and sales of short-term investments		180,785			52,677			297,537			97,307
Purchases of property and equipment		(4,556	)		(790	)		(19,048	)		(26,072	)
Acquisitions, net of cash acquired		(116,189	)		—			(126,183	)		—
Purchases of intangible assets		—			—			(568	)		—
Capitalized internal-use software development costs		—			(81	)		(194	)		(301	)
Changes in restricted cash and deposits		—			8			3			9
Net cash used in investing activities		(34,155	)		(52,022	)		(110,563	)		(262,785	)
Cash flows from financing activities
Proceeds from early exercise of common stock options		—			—			10			—
Proceeds from exercise of common stock options		1,368			2,102			4,138			4,314
Net proceeds from offerings		—			—			—			34,495
Proceeds from Employee Stock Purchase Plan		—			—			—			5,951
Restricted stock units acquired to settle employee tax withholding liability		—			—			(6	)		—
Excess tax benefits from employee stock plans		1,817			7,698			8,968			18,731
Net cash provided by financing activities		3,185			9,800			13,110			63,491
Effect of exchange rate changes on cash and cash equivalents		53			(15	)		86			(72	)
Net change in cash and cash equivalents		(11,182	)		(7,981	)		(20,659	)		(130,372	)
Cash and cash equivalents at beginning of period		119,776			140,116			129,253			262,507
Cash and cash equivalents at end of period	$	108,594		$	132,135		$	108,594		$	132,135

Non-GAAP Financial Measures

Veeva has provided in this release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. This information primarily includes non-GAAP net income, non-GAAP fully diluted net income per share, non-GAAP operating income, and non-GAAP operating margin. Veeva uses these non-GAAP financial measures internally for budgeting and resource allocation purposes and in analyzing its financial results. Veeva believes these measures are useful to investors, as a supplement to GAAP measures, as a means to evaluate period-to-period comparisons, in evaluating Veeva's ongoing operating results and trends and in comparing its financial measures with other companies in Veeva's industry, many of which present similar non-GAAP financial measures to investors. These non-GAAP measures are adjusted for the impact of expenses associated with stock-based compensation, amortization of purchased intangibles, capitalization of expenses associated with development of internal-use software and the subsequent amortization of the capitalized expenses, and the tax effect of all of these non-GAAP adjustments.

As described above, Veeva may exclude the following items from its non-GAAP measures:

• Stock-based compensation expenses. Veeva excludes stock-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses and management finds it useful to exclude certain non-cash charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, Veeva believes excluding stock-based compensation expenses allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies.
• Amortization of purchased intangibles. Veeva incurs amortization expense for purchased intangible assets in connection with acquisitions of certain businesses and technologies. Amortization of intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of acquisitions. Management finds it useful to exclude these variable charges to assess the appropriate level of various operating expenses to assist in budgeting, planning and forecasting future periods. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of purchased intangible assets will recur in future periods.
• Capitalization of internal-use software development expenses and the subsequent amortization of the capitalized expenses. Veeva capitalizes certain costs incurred for the development of computer software for internal use and then amortizes those costs over the estimated useful life. Capitalization and amortization of software development costs can vary significantly depending on the timing of products reaching technological feasibility and being made generally available. Moreover, because of the variety of approaches taken and the subjective assumptions made by other companies in this area, Veeva believes that excluding the effects of capitalized software costs allows investors to make more meaningful comparisons between our operating results and those of other companies.
• Income tax effects on the difference between GAAP and non-GAAP costs and expenses. The income tax effects that are excluded from the non-GAAP measures relate to the tax impact on the difference between GAAP and non-GAAP costs and expenses due to stock-based compensation, purchased intangibles and capitalized internal-use software for GAAP and non-GAAP measures.

There are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. The non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact upon our reported financial results. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which items are adjusted to calculate our non-GAAP financial measures. Veeva compensates for these limitations by analyzing current and future results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in our public disclosures.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure and not to rely on any single financial measure to evaluate our business. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables below.

Veeva is not able, at this time, to provide GAAP targets for operating income and fully diluted net income per share for the fourth quarter and full year of its fiscal year ending January 31, 2016 because of the difficulty of estimating certain items that are excluded from non-GAAP operating income and non-GAAP fully diluted net income per share, such as charges related to stock-based compensation expense, capitalization of internal-use software development expenses and the subsequent amortization of the capitalized expenses and amortization of acquisition-related intangibles, the effect of which may be significant.

The following table reconciles the specific items excluded from GAAP net income in the calculation of non-GAAP net income and non-GAAP net income per share for the periods shown below:

VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
(Unaudited)
	For the three months ended October 31,						For the nine months ended October 31,
	2015			2014			2015			2014
Cost of subscription services revenues on a GAAP basis	$	18,273		$	14,409		$	50,965		$	39,795
Stock-based compensation expense		(149	)		(74	)		(396	)		(181	)
Amortization of purchased intangibles		(760	)		(369	)		(1,697	)		(1,108	)
Amortization of internal-use software		(207	)		(216	)		(587	)		(632	)
Cost of subscription services revenues on a non-GAAP basis	$	17,157		$	13,750		$	48,285		$	37,874
Gross margin on subscription services revenues on a GAAP basis		77.6	%		76.5	%		77.4	%		76.1	%
Stock-based compensation expense		0.2			0.1			0.2			0.1
Amortization of purchased intangibles		0.9			0.6			0.7			0.7
Amortization of internal-use software		0.3			0.4			0.3			0.4
Gross margin on subscription services revenues on a non-GAAP basis		79.0	%		77.6	%		78.6	%		77.3	%
Cost of professional services and other revenues on a GAAP basis	$	18,739		$	16,007		$	51,505		$	44,707
Stock-based compensation expense		(1,042	)		(549	)		(2,757	)		(1,711	)
Cost of professional services and other revenues on a non-GAAP basis	$	17,697		$	15,458		$	48,748		$	42,996
Gross margin on professional services and other revenues on a GAAP basis		25.6	%		28.5	%		25.4	%		25.1	%
Stock-based compensation expense		4.1			2.5			4.0			2.9
Gross margin on professional services and other revenues on a non-GAAP basis		29.7	%		31.0	%		29.4	%		28.0	%
Gross profit on a GAAP basis	$	69,909		$	53,409		$	192,481		$	141,708
Stock-based compensation expense		1,191			623			3,153			1,892
Amortization of purchased intangibles		760			369			1,697			1,108
Amortization of internal-use software		207			216			587			632
Gross profit on a non-GAAP basis	$	72,067		$	54,617		$	197,918		$	145,340
Gross margin on total revenues on a GAAP basis		65.4	%		63.7	%		65.3	%		62.6	%
Stock-based compensation expense		1.1			0.8			1.0			0.9
Amortization of purchased intangibles		0.7			0.4			0.6			0.5
Amortization of internal-use software		0.2			0.3			0.2			0.3
Gross margin on total revenues on a non-GAAP basis		67.4	%		65.2	%		67.1	%		64.3	%
Research and development expense on a GAAP basis	$	17,667		$	10,635		$	45,879		$	29,414
Stock-based compensation expense		(2,021	)		(942	)		(5,047	)		(2,703	)
Capitalization of internal-use software		—			80			194			300
Research and development expense on a non-GAAP basis	$	15,646		$	9,773		$	41,026		$	27,011
Sales and marketing expense on a GAAP basis	$	20,345		$	14,251		$	53,898		$	40,875
Stock-based compensation expense		(1,933	)		(754	)		(4,808	)		(2,290	)
Amortization of purchased intangibles		(393	)		(43	)		(545	)		(129	)
Sales and marketing expense on a non-GAAP basis	$	18,019		$	13,454		$	48,545		$	38,456
General and administrative expense on a GAAP basis	$	11,797		$	8,582		$	29,326		$	22,136
Stock-based compensation expense		(1,547	)		(1,266	)		(4,094	)		(3,356	)
General and administrative expense on a non-GAAP basis	$	10,250		$	7,316		$	25,232		$	18,780

VEEVA SYSTEMS INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)
(Dollars in thousands, except per share data)
(Unaudited)
	For the three months ended October 31,						For the nine months ended October 31,
	2015			2014			2015			2014
Operating expense on a GAAP basis	$	49,809		$	33,468		$	129,103		$	92,425
Stock-based compensation expense		(5,501	)		(2,962	)		(13,949	)		(8,349	)
Amortization of purchased intangibles		(393	)		(43	)		(545	)		(129	)
Capitalization of internal-use software		—			80			194			300
Operating expense on a non-GAAP basis	$	43,915		$	30,543		$	114,803		$	84,247
Operating income on a GAAP basis	$	20,100		$	19,941		$	63,378		$	49,283
Stock-based compensation expense		6,692			3,585			17,102			10,241
Amortization of purchased intangibles		1,153			412			2,242			1,237
Capitalization of internal-use software		—			(80	)		(194	)		(300	)
Amortization of internal-use software		207			216			587			632
Operating income on a non-GAAP basis	$	28,152		$	24,074		$	83,115		$	61,093
Operating margin on a GAAP basis		18.8	%		23.8	%		21.5	%		21.8	%
Stock-based compensation expense		6.2			4.3			5.8			4.5
Amortization of purchased intangibles		1.1			0.5			0.8			0.5
Capitalization of internal-use software		—			(0.1	)		(0.1	)		(0.1	)
Amortization of internal-use software		0.2			0.2			0.2			0.3
Operating margin on a non-GAAP basis		26.3	%		28.7	%		28.2	%		27.0	%
Net income on a GAAP basis	$	10,482		$	10,258		$	36,870		$	27,057
Stock-based compensation expense		6,692			3,585			17,102			10,241
Amortization of purchased intangibles		1,153			412			2,242			1,237
Capitalization of internal-use software		—			(80	)		(194	)		(300	)
Amortization of internal-use software		207			216			587			632
Income tax effect on non-GAAP adjustments		(1,629	)		(713	)		(4,376	)		(2,450	)
Net income on a non-GAAP basis	$	16,905		$	13,678		$	52,231		$	36,417
Net income allocated to participating securities on a GAAP basis	$	(9	)	$	(60	)	$	(38	)	$	(206	)
Net income allocated to participating securities from non-GAAP adjustments		(6	)		(20	)		(15	)		(71	)
Net income allocated to participating securities on a non-GAAP basis		(15	)		(80	)		(53	)		(277	)
Net income attributable to common stockholders on a non-GAAP basis	$	16,890		$	13,598		$	52,178		$	36,140
Diluted net income per share on a GAAP basis	$	0.07		$	0.07		$	0.25		$	0.19
Stock-based compensation expense		0.05			0.02			0.12			0.07
Amortization of purchased intangibles		0.01			—			0.02			0.01
Capitalization of internal-use software		—			—			—			—
Amortization of internal-use software		—			—			—			—
Income tax effect on non-GAAP adjustments		(0.01	)		—			(0.03	)		(0.02	)
Diluted net income per share on a non-GAAP basis	$	0.12		$	0.09		$	0.36		$	0.25