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ARC Document Solutions Reports Results for Second Quarter 2014

WALNUT CREEK, CA -- (Marketwired) -- 08/05/14 -- ARC Document Solutions, Inc. (NYSE: ARC), the nation's leading document solutions provider for the architecture, engineering, and construction (AEC) industry, today reported its financial results for the second quarter ended June 30, 2014.

Quarterly Business Highlights:

  • Q2 Adjusted earnings per share of $0.10 vs. $0.04 in Q2 2013
  • Q2 Gross margin of 36.0%; year-over-year increase of 200 basis points
  • Q2 cash flow from operations increased to $14.0 million from $8.1 million for the same period last year
  • Q2 Adjusted EBITDA margin of 19.1%; year-over-year increase of 160 basis points on higher sales and gross margin
  • Term B Loan principal reduced by $16.5 million as of July 31, 2014; represents payments of $11.5 million more than required
  • Maintains 2014 fully-diluted annual adjusted earnings per share outlook in the range $0.19 to $0.23; outlook for 2014 annual cash provided by operating activities in the range of $51-$56 million, and adjusted EBITDA in the range of $69-73 million

Financial Highlights:
                                     Three Months Ended   Six Months Ended
                                          June 30,            June 30,
                                     ------------------  ------------------
(All dollar amounts in millions,
 except EPS)                           2014      2013      2014      2013
                                     --------  --------  --------  --------
Net Revenue                          $  109.0  $  104.6  $  209.4  $  204.7
Gross Margin                             36.0%     34.0%     34.9%     33.2%
Net Income attributable to ARC       $    4.5  $    0.7  $    5.9  $    1.1
Adjusted Net Income attributable to
 ARC                                 $    4.5  $    1.6  $    6.3  $    2.2
Earnings per share - Diluted         $   0.10  $   0.02  $   0.13  $   0.02
Adjusted earnings per share -
 Diluted                             $   0.10  $   0.04  $   0.13  $   0.05
Adjusted EBITDA                      $   20.9  $   18.3  $   37.0  $   34.3
Cash provided by operating
 activities                          $   14.0  $    8.1  $   21.7  $   20.0
Capital Expenditures                 $    3.0  $    4.4  $    6.6  $   10.0
Debt & Capital Leases (including
 current)                                                $  210.8  $  220.8

Management Commentary

"Our managed print services program continued to perform well in the second quarter, and the rest of the business is stabilizing," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "With exceptional operational performance, we have been able to deliver a strong quarter, generate excellent cash flows, and create an opportunity to aggressively reduce our senior debt."

Chief Operating Officer, Dilo Wijesuriya, said, "We made significant gains with some of our largest prospects and clients during the quarter, and made good progress in placing our technology products and services. The construction market appears to be regaining some of its strength in certain markets, and that will help us in the coming quarters as we leverage the operational improvements we've made since the recession."

"Our revenue improvement was welcome particularly when combined with the fundamental increase in our margins. Ultimately our generation of free cash tells our story best during this period, growing 199% on a year-over-year basis for the quarter," said John Toth, Chief Financial Officer. "We continue to put a high priority on improving our credit quality, and leveraging the upgrade by S&P to pursue further improvements in our capital structure."

2014 Second Quarter Supplemental Information:

Net sales were $109.0 million, a 4.2% increase compared to the second quarter of 2013.

Days sales outstanding in Q2 2014 were 52, compared to 54 days in Q2 2013.

AEC customers comprised approximately 77% of our total net sales, while non-AEC customers made up approximately 23% of our total net sales.

Total number of Onsite Services contracts at the end of the second quarter was approximately 8,000, a gain of nearly 300 contracts from the beginning of the year.

Adjusted EBITDA is EBITDA net of the impact of restructuring costs, stock based compensation, and one-time significant legal expenses.


Sales from Services and Product Lines
 as a Percentage of Net Sales
                                        Three Months Ended  Six Months Ended
                                             June 30,           June 30,
                                       -------------------------------------
Services and Product Line                2014     2013       2014     2013
----------------------------------------------------------------------------
Onsite Services                           31.3%    29.2%      31.3%    29.1%
Traditional Reprographics                 27.8%    29.2%      27.9%    29.4%
Color Services                            21.2%    20.9%      21.2%    20.9%
Digital Services                           8.0%     8.3%       8.0%     8.3%
Equipment and Supplies Sales              11.7%    12.4%      11.6%    12.3%

Outlook:

ARC Document Solutions continues to anticipate annual adjusted earnings per share in 2014 to be in the range of $0.19 to $0.23 on a fully diluted basis. Annual cash flow from operations is expected to be in the range of $51 million to $56 million. Annual adjusted EBITDA is projected to be in the range of $69 million to $73 million.

Teleconference and Webcast:

ARC Document Solutions will host a conference call and audio webcast today at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time) to discuss results for the Company's second quarter of 2014. To access the live audio call, dial 888-505-4375. International callers may join the conference by dialing 719-457-2085. The conference ID number is 2162568. A live webcast will also be made available on the investor relations page of ARC Document Solutions' website at www.e-arc.com.

A replay of the call will be available for five days after the call's conclusion. To access the replay, dial 888-203-1112. International callers may access the replay by dialing 719-457-0820. The conference ID number is 2162568. The webcast will also be made available at www.e-arc.com for approximately 90 days following the call's conclusion.

About ARC Document Solutions (NYSE: ARC)

ARC Document Solutions is a leading document solutions company serving businesses of all types, with an emphasis on the non-residential segment of the architecture, engineering and construction industries. The Company helps more than 90,000 customers reduce costs and increase efficiency in the use of their documents, improve document access and control, and offers a wide variety of ways to print, produce, and store documents. ARC provides its solutions onsite in more than 8,000 of its customers' offices, offsite in service centers around the world, and digitally in the form of proprietary software and web applications. For more information please visit www.e-arc.com.

Forward-Looking Statements

This press release contains forward-looking statements that are based on current opinions, estimates and assumptions of management regarding future events and the future financial performance of the Company. Words such as "continuing growth," "confidence" "sustainable," and similar expressions identify forward-looking statements and all statements other than statements of historical fact, including, but not limited to, any projections regarding earnings, revenues and financial performance of the Company, could be deemed forward-looking statements. We caution you that such statements are only predictions and are subject to certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. In addition to matters affecting the construction, managed print services, document management or reprographics industries, or the economy generally, factors that could cause actual results to differ from expectations stated in forward-looking statements include, among others, the factors described in the caption entitled "Risk Factors" in Item 1A in ARC Document Solution's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, Quarterly Reports on Form 10-Q, and other periodic filings and prospectuses. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.


ARC Document Solutions, Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)
                                                   June 30,    December 31,
Current assets:                                      2014          2013
                                                 ------------  ------------
  Cash and cash equivalents                      $     24,206  $     27,362
  Accounts receivable, net of allowances for
   accounts receivable of $2,506 and $2,517            63,622        56,328
  Inventories, net                                     16,013        14,047
  Deferred income taxes                                   207           356
  Prepaid expenses                                      4,455         4,324
  Other current assets                                  3,275         4,013
                                                 ------------  ------------
    Total current assets                              111,778       106,430
Property and equipment, net of accumulated
 depreciation of $214,115 and $206,636                 57,923        56,181
Goodwill                                              212,608       212,608
Other intangible assets, net                           26,078        27,856
Deferred financing fees, net                            2,866         3,242
Deferred income taxes                                   1,254         1,186
Other assets                                            2,420         2,419
                                                 ------------  ------------
    Total assets                                 $    414,927  $    409,922
                                                 ============  ============
Current liabilities:
  Accounts payable                               $     25,793  $     23,363
  Accrued payroll and payroll-related expenses         11,698        11,497
  Accrued expenses                                     23,096        21,365
  Current portion of long-term debt and capital
   leases                                              13,859        21,500
                                                 ------------  ------------
    Total current liabilities                          74,446        77,725
Long-term debt and capital leases                     196,977       198,228
Deferred income taxes                                  32,724        31,667
Other long-term liabilities                             3,190         3,163
                                                 ------------  ------------
    Total liabilities                                 307,337       310,783
                                                 ------------  ------------
Commitments and contingencies
Stockholders' equity:
ARC Document Solutions, Inc. stockholders'
 equity:
  Preferred stock, $0.001 par value, 25,000
   shares authorized; 0 shares issued and
   outstanding                                             --            --
  Common stock, $0.001 par value, 150,000 shares
   authorized; 46,751 and 46,365 shares issued
   and 46,682 and 46,320 shares outstanding                46            46
  Additional paid-in capital                          108,525       105,806
  Retained deficit                                     (8,687)      (14,628)
  Accumulated other comprehensive income                  655           634
                                                 ------------  ------------
                                                      100,539        91,858
  Less cost of common stock in treasury, 69 and
   45 shares                                              319           168
                                                 ------------  ------------
    Total ARC Document Solutions, Inc.
     stockholders' equity                             100,220        91,690
Noncontrolling interest                                 7,370         7,449
                                                 ------------  ------------
    Total equity                                      107,590        99,139
                                                 ------------  ------------
    Total liabilities and equity                 $    414,927  $    409,922
                                                 ============  ============



ARC Document Solutions, Inc.
Consolidated Statements of
 Operations
(In thousands, except per share
 data)
(Unaudited)                       Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Service sales                    $  96,198  $  91,628  $ 185,129  $ 179,428
Equipment and supplies sales        12,784     12,994     24,226     25,230
                                 ---------  ---------  ---------  ---------
  Total net sales                  108,982    104,622    209,355    204,658
Cost of sales                       69,775     69,011    136,214    136,668
                                 ---------  ---------  ---------  ---------
  Gross profit                      39,207     35,611     73,141     67,990
Selling, general and
 administrative expenses            28,283     24,891     54,389     48,664
Amortization of intangible assets    1,503      1,699      3,001      3,446
Restructuring expense                  271        636        754      1,108
                                 ---------  ---------  ---------  ---------
  Income from operations             9,150      8,385     14,997     14,772
Other income                           (23)       (35)       (49)       (61)
Interest expense, net                3,944      6,076      7,857     12,117
                                 ---------  ---------  ---------  ---------
  Income before income tax
   provision                         5,229      2,344      7,189      2,716
Income tax provision                   607      1,467      1,271      1,156
                                 ---------  ---------  ---------  ---------
  Net income                         4,622        877      5,918      1,560
(Income) loss attributable to
 noncontrolling interest               (77)      (155)        23       (423)
                                 ---------  ---------  ---------  ---------
  Net income attributable to ARC
   Document Solutions, Inc.
   shareholders                  $   4,545  $     722  $   5,941  $   1,137
                                 =========  =========  =========  =========
Earnings per share attributable
 to ARC Document Solutions, Inc.
 shareholders:
  Basic                          $    0.10  $    0.02  $    0.13  $    0.02
                                 =========  =========  =========  =========
  Diluted                        $    0.10  $    0.02  $    0.13  $    0.02
                                 =========  =========  =========  =========
Weighted average common shares
 outstanding:
  Basic                             46,254     45,901     46,122     45,832
  Diluted                           46,834     46,058     46,759     45,884



ARC Document Solutions, Inc.
Non-GAAP Measures Reconciliation of cash flows
 provided by operating activities to EBIT, EBITDA and
 Adjusted EBITDA
(In thousands) (Unaudited)

                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Cash flows provided by operating
 activities (1)                  $  14,024  $   8,110  $  21,738  $  19,991
  Changes in operating assets
   and liabilities, net of
   effect of business
   acquisitions                        930      4,314      5,159      2,558
  Non-cash expenses, including
   depreciation, amortization
   and restructuring               (10,332)   (11,547)   (20,979)   (20,989)
  Income tax provision                 607      1,467      1,271      1,156
  Interest expense, net              3,944      6,076      7,857     12,117
  (Income) loss attributable to
   the noncontrolling interest         (77)      (155)        23       (423)
                                 ---------  ---------  ---------  ---------
EBIT                                 9,096      8,265     15,069     14,410
  Depreciation and amortization      8,532      8,719     17,025     17,421
                                 ---------  ---------  ---------  ---------
EBITDA                              17,628     16,984     32,094     31,831
  Trade secret litigation
   costs(2)                          2,083         --      2,481         --
  Restructuring expense                271        636        754      1,108
  Stock-based compensation             881        729      1,662      1,321
                                 ---------  ---------  ---------  ---------
Adjusted EBITDA                  $  20,863  $  18,349  $  36,991  $  34,260
                                 =========  =========  =========  =========

(1)  Cash flows provided by operating activities for the three and six
     months ended June 30, 2013 includes cash payments related to
     restructuring of $1.0 million and $2.6 million, respectively. Cash
     flows provided by operating activities for the six months ended June
     30, 2013 includes an income tax refund of $3.8 million received in 2013
     related to our 2009 consolidated federal income tax return. Cash flows
     provided by operating activities for the three and six months ended
     June 30, 2014 includes cash payments for trade secret litigation costs
     of $1.1 million and $1.5 million, respectively, and cash payments
     related to restructuring of $0.3 million and $0.6 million,
     respectively.

(2)  On February 1, 2013, we filed a civil complaint against a competitor
     and a former employee in the Superior Court of California for Orange
     County, which alleged, among other claims, the misappropriation of ARC
     trade secrets; namely, proprietary customer lists that were used to
     communicate with our customers in an attempt to unfairly acquire their
     business. In prior litigation with the competitor based on related
     facts, in 2007 the competitor entered into a settlement agreement and
     stipulated judgment, which included an injunction. We instituted this
     suit to stop the defendant from using similar unfair business practices
     against us in the Southern California market. The case proceeded to
     trial in May 2014, and a jury verdict was entered for the defendants.
     We are considering our appeal options. Legal fees associated with the
     litigation totaled $2.1 million and $2.5 million for the three and six
     months ended June 30, 2014, respectively.




ARC Document Solutions, Inc.
Non-GAAP Measures Reconciliation of net income
 attributable to ARC to unaudited adjusted net income
 attributable to ARC (In thousands, except per share
 data) (Unaudited)


                                  Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Net income attributable to ARC
 Document Solutions, Inc.        $   4,545  $     722  $   5,941  $   1,137
  Restructuring expense                271        636        754      1,108
  Trade secret litigation costs      2,083         --      2,481         --
  Income tax benefit related to
   above items                        (917)      (252)    (1,261)      (431)
  Deferred tax valuation
   allowance and other discrete
   tax items                        (1,469)       542     (1,626)       388
                                 ---------  ---------  ---------  ---------
Unaudited adjusted net income
 attributable to ARC Document
 Solutions, Inc.                 $   4,513  $   1,648  $   6,289  $   2,202
                                 =========  =========  =========  =========

Actual:
Earnings per share attributable
 to ARC Document Solutions, Inc.
 shareholders:
  Basic                          $    0.10  $    0.02  $    0.13  $    0.02
                                 =========  =========  =========  =========
  Diluted                        $    0.10  $    0.02  $    0.13  $    0.02
                                 =========  =========  =========  =========
Weighted average common shares
 outstanding:
  Basic                             46,254     45,901     46,122     45,832
  Diluted                           46,834     46,058     46,759     45,884

Adjusted:
Earnings per share attributable
 to ARC Document Solutions, Inc.
 shareholders:
  Basic                          $    0.10  $    0.04  $    0.14  $    0.05
                                 =========  =========  =========  =========
  Diluted                        $    0.10  $    0.04  $    0.13  $    0.05
                                 =========  =========  =========  =========
Weighted average common shares
 outstanding:
  Basic                             46,254     45,901     46,122     45,832
  Diluted                           46,834     46,058     46,759     45,884




ARC Document Solutions, Inc. Non-GAAP Measures
 Reconciliation of net income attributable to ARC
 Document Solutions, Inc. shareholders to EBIT, EBITDA
 and Adjusted EBITDA
(In thousands) (Unaudited)

                                   Three Months Ended     Six Months Ended
                                        June 30,              June 30,
                                  --------------------  --------------------
                                     2014       2013       2014       2013
                                  ---------  ---------  ---------  ---------
Net income attributable to ARC
 Document Solutions, Inc.
 shareholders                     $   4,545  $     722  $   5,941  $   1,137
  Interest expense, net               3,944      6,076      7,857     12,117
  Income tax provision                  607      1,467      1,271      1,156
                                  ---------  ---------  ---------  ---------
EBIT                                  9,096      8,265     15,069     14,410
  Depreciation and amortization       8,532      8,719     17,025     17,421
                                  ---------  ---------  ---------  ---------
EBITDA                               17,628     16,984     32,094     31,831
  Trade secret litigation costs       2,083         --      2,481         --
  Restructuring expense                 271        636        754      1,108
  Stock-based compensation              881        729      1,662      1,321
                                  ---------  ---------  ---------  ---------
Adjusted EBITDA                   $  20,863  $  18,349  $  36,991  $  34,260
                                  =========  =========  =========  =========

ARC Document Solutions, Inc.
Net Sales by Product Line
(In thousands) (Unaudited)
                                   Three Months Ended     Six Months Ended
                                        June 30,              June 30,
                                  --------------------  --------------------
                                     2014       2013       2014       2013
                                  ---------  ---------  ---------  ---------
Service Sales
Traditional reprographics         $  30,181  $  30,516  $  58,506  $  60,074
Color                                23,148     21,846     44,313     42,751
Digital                               8,759      8,690     16,818     17,051
                                  ---------  ---------  ---------  ---------
  Subtotal                           62,088     61,052    119,637    119,876
Onsite services(1)                   34,110     30,576     65,492     59,552
                                  ---------  ---------  ---------  ---------
  Total services sales               96,198     91,628    185,129    179,428
Equipment and supplies sales         12,784     12,994     24,226     25,230
                                  ---------  ---------  ---------  ---------
  Total net sales                 $ 108,982  $ 104,622  $ 209,355  $ 204,658
                                  =========  =========  =========  =========

(1) Represents work done at our customer sites, which includes Facilities Management ("FM") and Managed Print Services ("MPS").

Non-GAAP Financial Measures

EBIT, EBITDA and related ratios presented in this report are supplemental measures of our performance that are not required by or presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). These measures are not measurements of our financial performance under GAAP and should not be considered as alternatives to net income, income from operations, or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating, investing or financing activities as a measure of our liquidity.

EBIT represents net income before interest and taxes. EBITDA represents net income before interest, taxes, depreciation and amortization. EBIT margin is a non-GAAP measure calculated by dividing EBIT by net sales. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by net sales.

We present EBIT, EBITDA and related ratios because we consider them important supplemental measures of our performance and liquidity. We believe investors may also find these measures meaningful, given how our management makes use of them. The following is a discussion of our use of these measures.

We use EBIT and EBITDA to measure and compare the performance of our operating segments. Our operating segments' financial performance includes all of the operating activities except debt and taxation which are managed at the corporate level for U.S. operating segments. As a result, we believe EBIT is the best measure of operating segment profitability and the most useful metric by which to measure and compare the performance of our operating segments. We also use EBIT to measure performance for determining operating segment-level compensation and we use EBITDA to measure performance for determining consolidated-level compensation. In addition, we use EBIT and EBITDA to evaluate potential acquisitions and potential capital expenditures.

EBIT, EBITDA and related ratios have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are as follows:

  • They do not reflect our cash expenditures, or future requirements for capital expenditures and contractual commitments;

  • They do not reflect changes in, or cash requirements for, our working capital needs;

  • They do not reflect the significant interest expense, or the cash requirements necessary, to service interest or principal payments on our debt;

  • Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and

  • Other companies, including companies in our industry, may calculate these measures differently than we do, limiting their usefulness as comparative measures.

Because of these limitations, EBIT, EBITDA, and related ratios should not be considered as measures of discretionary cash available to us to invest in business growth or to reduce our indebtedness. We compensate for these limitations by relying primarily on our GAAP results and using EBIT, EBITDA and related ratios only as supplements. For more information, see our interim Condensed Consolidated Financial Statements and related notes on our 2014 second quarter report on Form 10-Q. Additionally, please refer to our 2013 Annual Report on Form 10-K.

Our presentation of adjusted net income and adjusted EBITDA over certain periods is an attempt to provide meaningful comparisons to our historical performance for our existing and future investors. The unprecedented changes in our end markets over the past several years have required us to take measures that are unique in our history and specific to individual circumstances. Comparisons inclusive of these actions make normal financial and other performance patterns difficult to discern under a strict GAAP presentation. Each non-GAAP presentation, however, is explained in detail in the reconciliation tables above.

Specifically, we have presented adjusted net income attributable to ARC and adjusted earnings per share attributable to ARC shareholders for the three and six months ended June 30, 2014 and 2013 to reflect the exclusion of restructuring expense, trade secret litigation costs, and changes in the valuation allowances related to certain deferred tax assets and other discrete tax items. This presentation facilitates a meaningful comparison of our operating results for the three and six months ended June 30, 2014 and 2013. We believe these charges were the result of the current macroeconomic environment, our capital restructuring, or other items which are not indicative of our actual operating performance.

We presented adjusted EBITDA in the three and six months ended June 30, 2014 and 2013 to exclude stock-based compensation expense, trade secret litigation costs, and restructuring expense. The adjustment of EBITDA for non-cash adjustments is consistent with the definition of adjusted EBITDA in our credit agreement; therefore, we believe this information is useful to investors in assessing our financial performance.


ARC Document Solutions
Consolidated Statements of Cash
 Flows (In thousands) (Unaudited) Three Months Ended     Six Months Ended
                                       June 30,              June 30,
                                 --------------------  --------------------
                                    2014       2013       2014       2013
                                 ---------  ---------  ---------  ---------
Cash flows from operating
 activities
Net income                       $   4,622  $     877  $   5,918  $   1,560
Adjustments to reconcile net
 income to net cash provided by
 operating activities:
  Allowance for accounts
   receivable                          100        301        247        446
  Depreciation                       7,029      7,020     14,024     13,975
  Amortization of intangible
   assets                            1,503      1,699      3,001      3,446
  Amortization of deferred
   financing costs                     214        278        397        561
  Amortization of discount on
   long-term debt                      224        167        449        332
  Stock-based compensation             881        729      1,662      1,321
  Deferred income taxes              2,279      1,145      4,172        736
  Deferred tax valuation
   allowance                        (1,748)       154     (3,037)       174
  Restructuring expense, non-cash
   portion                               7        235        391        293
  Other non-cash items, net           (157)      (181)      (327)      (295)
  Changes in operating assets and
   liabilities:
    Accounts receivable             (4,059)    (2,666)    (7,494)   (11,849)
    Inventory                           85        234     (1,929)       280
    Prepaid expenses and other
     assets                            415       (619)       637      3,090
    Accounts payable and accrued
     expenses                        2,629     (1,263)     3,627      5,921
                                 ---------  ---------  ---------  ---------
Net cash provided by operating
 activities                         14,024      8,110     21,738     19,991
                                 ---------  ---------  ---------  ---------
Cash flows from investing
 activities
Capital expenditures                (3,032)    (4,430)    (6,597)   (10,042)
Payments related to business
 acquisitions                         (342)        --       (342)        --
Other                                  236        182        400        539
                                 ---------  ---------  ---------  ---------
Net cash used in investing
 activities                         (3,138)    (4,248)    (6,539)    (9,503)
                                 ---------  ---------  ---------  ---------
Cash flows from financing
 activities
Proceeds from stock option
 exercises                             568         --      1,009         --
Proceeds from issuance of common
 stock under Employee Stock
 Purchase Plan                          27          9         48          9
Share repurchases, including
 shares surrendered for tax
 withholding                          (151)       (90)      (151)       (90)
Proceeds from borrowings on long-
 term debt agreements                   --        402         --        402
Payments on long-term debt
 agreements and capital leases     (10,477)    (3,075)   (18,440)    (6,407)
Net (repayments) borrowings under
 revolving credit facilities          (697)       929       (295)      (210)
Payment of deferred financing
 costs                                   3         --       (454)        --
                                 ---------  ---------  ---------  ---------
Net cash used in financing
 activities                        (10,727)    (1,825)   (18,283)    (6,296)
                                 ---------  ---------  ---------  ---------
Effect of foreign currency
 translation on cash balances           54        121        (72)       164
                                 ---------  ---------  ---------  ---------
Net change in cash and cash
 equivalents                           213      2,158     (3,156)     4,356
Cash and cash equivalents at
 beginning of period                23,993     30,219     27,362     28,021
                                 ---------  ---------  ---------  ---------
Cash and cash equivalents at end
 of period                       $  24,206  $  32,377  $  24,206  $  32,377
                                 =========  =========  =========  =========
Supplemental disclosure of cash
 flow information
Noncash financing activities
  Capital lease obligations
   incurred                      $   5,315  $   2,992  $   9,403  $   4,246
  Contingent liabilities in
   connection with business
   acquisitions                  $     924  $      --  $     924  $      --

Contact Information:
David Stickney
VP Corporate Communications
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The consumption economy is here and so are cloud applications and solutions that offer more than subscription and flat fee models and at the same time are available on a pure consumption model, which not only reduces IT spend but also lowers infrastructure costs, and offers ease of use and availability. In their session at 15th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed this shifting dynamic with an ...
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackI...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT transformation?
The recent trends like cloud computing, social, mobile and Internet of Things are forcing enterprises to modernize in order to compete in the competitive globalized markets. However, enterprises are approaching newer technologies with a more silo-ed way, gaining only sub optimal benefits. The Modern Enterprise model is presented as a newer way to think of enterprise IT, which takes a more holistic approach to embracing modern technologies.
For better or worse, DevOps has gone mainstream. All doubt was removed when IBM and HP threw up their respective DevOps microsites. Where are we on the hype cycle? It's hard to say for sure but there's a feeling we're heading for the "Peak of Inflated Expectations." What does this mean for the enterprise? Should they avoid DevOps? Definitely not. Should they be cautious though? Absolutely. The truth is that DevOps and the enterprise are at best strange bedfellows. The movement has its roots in t...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Enterprises are fast realizing the importance of integrating SaaS/Cloud applications, API and on-premises data and processes, to unleash hidden value. This webinar explores how managers can use a Microservice-centric approach to aggressively tackle the unexpected new integration challenges posed by proliferation of cloud, mobile, social and big data projects. Industry analyst and SOA expert Jason Bloomberg will strip away the hype from microservices, and clearly identify their advantages and d...
In a world of ever-accelerating business cycles and fast-changing client expectations, the cloud increasingly serves as a growth engine and a path to new business models. Dynamic clouds enable businesses to continuously reinvent themselves, adapting their business processes, their service and software delivery and their operations to achieve speed-to-market and quick response to customer feedback. As the cloud evolves, the industry has multiple competing cloud technologies, offering on-premises ...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
Over the years, a variety of methodologies have emerged in order to overcome the challenges related to project constraints. The successful use of each methodology seems highly context-dependent. However, communication seems to be the common denominator of the many challenges that project management methodologies intend to resolve. In this respect, Information and Communication Technologies (ICTs) can be viewed as powerful tools for managing projects. Few research papers have focused on the way...