Exhibit 1:
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Press Release: Perion reports first quarter 2016 results; Non-GAAP Revenues $73.1 Million, adjusted EBITDA $8.8 Million, dated May 10, 2016.
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Perion Network Ltd.
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By:
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/s/ Limor Gershoni Levy | |
Name: Limor Gershoni Levy | |||
Title: Corporate Secretary & General Counsel |
Exhibit 1:
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Press Release: Perion reports first quarter 2016 results; Non-GAAP Revenues $73.1 Million, adjusted EBITDA $8.8 Million, dated May 10, 2016.
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Non-GAAP Revenues for the first quarter of 2016 and 2015 were $73.1 million and $52.1 million, respectively
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Adjusted EBITDA for the first quarter of 2016 and 2015 was $8.8 million and $22.1 million, respectively
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Non-GAAP Net Income from continuing operations for the first quarter of 2016 and 2015 was $6.7 million and $17.0 million, respectively
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Non-GAAP diluted Earnings Per Share from continuing operations for the first quarter of 2016 and 2015 was $0.09 and $0.23, respectively
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GAAP Net Loss for the first quarter of 2016 was $5.6 million and for the first quarter of 2015, GAAP Net Income was $10.7 million
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Cash provided by continuing operations in the first quarter of 2016 was $6.3 million and as of March 31, 2016, cash and deposits totaled $48.8 million
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Revenue is expected to be in the range of $73 - $75 million.
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Adjusted EBITDA is expected to be in the range of $8 - $9 million.
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Conference ID: 6422640
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Dial-in number from within the United States: 1-888-438-5491
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Dial-in number from Israel: 1-809-245-906
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Dial-in number (other international): 1-719-325-2144
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Playback available until May 17, 2016 by calling 1-877-870-5176 (United States) or 1-858-384-5517 (international). Please use PIN code 6422640 for the replay.
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Live webcast accessible at http://www.perion.com/events/
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PERION NETWORK LTD. AND ITS SUBSIDIARIES
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In thousands (except share and per share data)
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Three months ended
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March 31,
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2015
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2016
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Revenues:
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Search
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$ | 42,909 | $ | 40,500 | ||||
Advertising and other
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9,228 | 35,289 | ||||||
Total Revenues
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52,137 | 75,789 | ||||||
Costs and Expenses:
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Cost of revenues
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1,517 | 4,050 | ||||||
Customer acquisition and media buy costs
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15,669 | 34,291 | ||||||
Research and development
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5,368 | 7,319 | ||||||
Selling and marketing
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4,347 | 15,105 | ||||||
General and administrative
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4,958 | 8,270 | ||||||
Depreciation and amortization
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2,226 | 7,339 | ||||||
Restructuring costs
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- | 728 | ||||||
Total Costs and Expenses
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34,085 | 77,102 | ||||||
Income (Loss) from Operations
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18,052 | (1,313 | ) | |||||
Financial expense, net
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714 | 3,138 | ||||||
Income (Loss) before Taxes on Income
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17,338 | (4,451 | ) | |||||
Taxes on income
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3,819 | (2,428 | ) | |||||
Net Income (Loss) from Continuing Operations
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13,519 | (2,023 | ) | |||||
Net loss from discontinued operations
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(2,780 | ) | (3,585 | ) | ||||
Net Income (Loss)
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$ | 10,739 | $ | (5,608 | ) | |||
Net Earnings (Loss) per Share - Basic:
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Continuing operations
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$ | 0.19 | $ | (0.02 | ) | |||
Discontinued operations
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$ | (0.04 | ) | $ | (0.05 | ) | ||
Net Earnings (Loss) per Share - Diluted:
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Continuing operations
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$ | 0.18 | $ | (0.02 | ) | |||
Discontinued operations
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$ | (0.04 | ) | $ | (0.05 | ) | ||
Weighted average number of shares - Basic:
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Continuing and discontinued operations
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70,278,575 | 76,169,607 | ||||||
Weighted average number of shares - Diluted:
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Continuing and discontinued operations
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74,670,557 | 76,169,607 |
PERION NETWORK LTD. AND ITS SUBSIDIARIES
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In thousands
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December 31,
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March 31,
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2015
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2016
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ASSETS
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Current Assets:
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Cash and cash equivalents
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$ | 17,519 | $ | 38,375 | ||||
Short term bank deposit
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42,442 | 10,381 | ||||||
Accounts receivable, net
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66,662 | 56,015 | ||||||
Prepaid expenses and other current assets
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17,396 | 19,716 | ||||||
Total Current Assets
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144,019 | 124,487 | ||||||
Property and equipment, net
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12,714 | 13,510 | ||||||
Goodwill and intangible assets, net
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269,765 | 261,808 | ||||||
Deferred taxes
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12,344 | 4,999 | ||||||
Other assets
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3,456 | 2,091 | ||||||
Total Assets
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$ | 442,298 | $ | 406,895 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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Current Liabilities:
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Accounts payable
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$ | 40,388 | $ | 33,200 | ||||
Accrued expenses and other liabilities
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22,857 | 18,840 | ||||||
Short-term loans and current maturities of long-term and convertible debt
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23,756 | 24,099 | ||||||
Deferred revenues
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7,731 | 6,438 | ||||||
Payment obligation related to acquisitions
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11,893 | 8,103 | ||||||
Total Current Liabilities
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106,625 | 90,680 | ||||||
Long-Term Liabilities:
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Long-term debt, net of current maturities
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46,920 | 45,757 | ||||||
Convertible debt, net of current maturities
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28,371 | 22,609 | ||||||
Payment obligation related to acquisition
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37,231 | 35,680 | ||||||
Deferred taxes
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19,456 | 10,521 | ||||||
Other long-term liabilities
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3,858 | 4,017 | ||||||
Total Liabilities
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242,461 | 209,264 | ||||||
Shareholders' equity:
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Ordinary shares
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206 | 207 | ||||||
Additional paid-in capital
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227,258 | 230,045 | ||||||
Treasury shares at cost
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(1,002 | ) | (1,002 | ) | ||||
Accumulated other comprehensive loss
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(794 | ) | (180 | ) | ||||
Accumulated deficit
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(25,831 | ) | (31,439 | ) | ||||
Total Shareholders' Equity
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199,837 | 197,631 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 442,298 | $ | 406,895 |
PERION NETWORK LTD. AND ITS SUBSIDIARIES
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In thousands
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Three months ended March 31,
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2015
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2016
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Operating activities:
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Net income (loss)
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$ | 10,739 | $ | (5,608 | ) | |||
Loss from discontinued operations, net
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(2,780 | ) | (3,585 | ) | ||||
Net income (loss) from continuing operations
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13,519 | (2,023 | ) | |||||
Adjustments required to reconcile net income to net cash provided by operating activities:
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Depreciation and amortization
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2,226 | 7,339 | ||||||
Stock based compensation expense
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1,274 | 1,858 | ||||||
Issuance of ordinary shares related to employees retention
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63 | - | ||||||
Foreign currency translation loss on inter-company balances with foreign subsidiaries
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- | 189 | ||||||
Accrued interest, net
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(546 | ) | 83 | |||||
Deferred taxes, net
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395 | (1,649 | ) | |||||
Change in payment obligation related to acquisition
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971 | 567 | ||||||
Fair value revaluation - convertible debt
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(451 | ) | 2,319 | |||||
Net changes in operating assets and liabilities
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(4,787 | ) | (2,423 | ) | ||||
Net cash provided by continuing operating activities
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12,664 | 6,260 | ||||||
Net cash used in discontinued activities
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(2,515 | ) | (2,712 | ) | ||||
Net cash provided by operating activities
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$ | 10,149 | $ | 3,548 | ||||
Investing activities:
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Purchases of property and equipment
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$ | (1,264 | ) | $ | (481 | ) | ||
Capitalization of development costs
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- | (1,461 | ) | |||||
Change in restricted cash, net
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50 | - | ||||||
Investments in short-term deposits, net
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(44,100 | ) | 32,061 | |||||
Cash paid for acquisition, net of cash acquired
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(4,533 | ) | - | |||||
Net cash provided by (used in) investing activities
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$ | (49,847 | ) | $ | 30,119 | |||
Financing activities:
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Exercise of stock options and restricted share units
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2 | 1 | ||||||
Payment made in connection with acquisition
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- | (3,880 | ) | |||||
Repayment of convertible debt
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- | (7,620 | ) | |||||
Repayment of long-term loans
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(575 | ) | (1,365 | ) | ||||
Net cash used in financing activities
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$ | (573 | ) | $ | (12,864 | ) | ||
Effect of exchange rate changes on cash and cash equivalents
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(42 | ) | 53 | |||||
Net increase (decrease) in cash and cash equivalents
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(37,798 | ) | 23,568 | |||||
Net cash used in discontinued activities
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(2,515 | ) | (2,712 | ) | ||||
Cash and cash equivalents at beginning of period
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101,183 | 17,519 | ||||||
Cash and cash equivalents at end of period
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$ | 60,870 | $ | 38,375 |
PERION NETWORK LTD. AND ITS SUBSIDIARIES
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In thousands (except share and per share data)
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Three months ended
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March 31,
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2015
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2016
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GAAP revenues
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52,137 | 75,789 | ||||||
Media buy costs offset from revenues
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- | (2,717 | ) | |||||
Non-GAAP revenues
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$ | 52,137 | $ | 73,072 | ||||
GAAP costs and expenses
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$ | 34,085 | $ | 77,102 | ||||
Acquisition related expenses
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(556 | ) | (179 | ) | ||||
Share based compensation
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(1,274 | ) | (1,858 | ) | ||||
Amortization of acquired intangible assets
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(1,549 | ) | (6,445 | ) | ||||
Media buy costs offset from revenues
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- | (2,717 | ) | |||||
Restructuring costs
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- | (728 | ) | |||||
Non-GAAP costs and expenses
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$ | 30,706 | $ | 65,175 | ||||
GAAP net income (loss) from continuing operations
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$ | 13,519 | $ | (2,023 | ) | |||
Acquisition related expenses
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556 | 179 | ||||||
Share based compensation
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1,274 | 1,858 | ||||||
Amortization of acquired intangible assets
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1,549 | 6,445 | ||||||
Restructuring costs
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- | 728 | ||||||
Fair value revaluation of convertible debt and related derivative
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(106 | ) | 839 | |||||
Accretion of payment obligation related to acquisition
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357 | 567 | ||||||
Taxes related to amortization of acquired intangible assets
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(148 | ) | (1,920 | ) | ||||
Non-GAAP net income from continuing operations
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$ | 17,001 | $ | 6,673 | ||||
Non-GAAP net income from continuing operations
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$ | 17,001 | $ | 6,673 | ||||
Taxes on income
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3,967 | (508 | ) | |||||
Financial expense, net
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463 | 1,732 | ||||||
Depreciation
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677 | 894 | ||||||
Adjusted EBITDA
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$ | 22,108 | $ | 8,791 | ||||
Non-GAAP diluted earnings per share
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$ | 0.23 | $ | 0.09 | ||||
Shares used in computing non-GAAP diluted earnings per share
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74,670,557 | 76,207,450 |