BroadSoft Reports Second Quarter 2016 Financial Results

GAITHERSBURG, MD--(Marketwired - Aug 1, 2016) - BroadSoft, Inc. ( NASDAQ : BSFT ), a leading global provider of hosted cloud-based enterprise communications software and services to the telecommunications industry, today announced financial results for the quarter ended June 30, 2016.

Financial Highlights for the Second Quarter of 2016

• Total revenue increased 27% year-over-year to $81.7 million
• GAAP gross profit equaled 72% of total revenue; non-GAAP gross profit equaled 77% of total revenue
• GAAP income from operations totaled $0.6 million; non-GAAP income from operations totaled $15.9 million or 19% of revenue
• GAAP basic and diluted net loss per share equaled $(0.10) per common share; non-GAAP diluted earnings per share equaled $0.49 per common share

Results for the three months ended June 30, 2016

Total revenue rose to $81.7 million in the second quarter of 2016, an increase of 27% compared to $64.5 million in the second quarter of 2015.

Net loss for the second quarter of 2016 was $(2.9) million, or $(0.10) per basic and diluted common share, compared to net loss of $(5.3) million, or $(0.18) per basic and diluted common share in the second quarter of 2015.

On a non-GAAP basis, net income in the second quarter of 2016 was $15.0 million, or $0.49 per diluted common share, compared to non-GAAP net income of $9.7 million, or $0.32 per diluted common share, in the second quarter of 2015. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.

Results for the six months ended June 30, 2016

Total revenue rose to $154.9 million for the first six months of 2016, an increase of 29% compared to $120.2 million for the first six months of 2015.

Net loss for the first six months of 2016 was $(4.4) million, or $(0.15) per basic and diluted common share, compared to a net loss of $(8.2) million, or $(0.28) per basic and diluted common share for the first six months of 2015.

On a non-GAAP basis, net income for the first six months of 2016 was $26.0 million, or $0.87 per diluted common share, compared to non-GAAP net income of $17.0 million, or $0.57 per diluted common share, for the first six months of 2015. A reconciliation of non-GAAP and GAAP results is included in the financial tables below.

Management Commentary

"In the second quarter, we delivered strong results as we achieved robust double-digit revenue growth," said Michael Tessler, president and chief executive officer, BroadSoft. "We see more and more service provider customers around the world launching and promoting truly converged fixed and mobile unified communications services based on BroadSoft solutions. This is a great validation of our products and vision. We will continue to innovate to remain the industry leader as the business communications market continues to evolve."

Guidance

For the third quarter of 2016, BroadSoft anticipates revenue of $78 to $83 million. The company also expects to achieve earnings on a non-GAAP basis of $0.26 to $0.41 per diluted common share. For the full year 2016, BroadSoft expects revenue in the range of $332 million to $340 million and non-GAAP EPS in the range of $1.95 to $2.15.

A reconciliation of non-GAAP earnings per share guidance, as well as projected non-GAAP cost of sales and operating expenses to be discussed on this morning's teleconference, to the closest corresponding GAAP measures, is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures, in particular, the measures and effects of non-cash income taxes and stock-based compensation expense. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Conference Call

BroadSoft will discuss its second quarter 2016 results and its business outlook today via teleconference at 8:30 a.m. Eastern Time. To participate in the teleconference, callers can dial the toll free number 1-877-312-5517 (U.S. callers only) or 1-760-666-3772 (from outside the U.S.). The conference call can also be heard live via audio webcast at http://investors.broadsoft.com/events.cfm . To help ensure the conference begins on time, please dial in or connect via the web five minutes prior to the scheduled start time.

For those unable to participate in the live call, a recording will be available shortly after the conclusion of the call at http://investors.broadsoft.com/events.cfm and will remain available until immediately prior to our next earnings call.

Non-GAAP financial measures:

BroadSoft has provided in this release, and will provide on this morning's teleconference, financial information that has not been prepared in accordance with generally accepted accounting principles, or GAAP. BroadSoft uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating BroadSoft's ongoing operational performance. BroadSoft's management regularly uses these non-GAAP financial measures to understand and manage its business and believes these non-GAAP financial measures provide meaningful supplemental information regarding the Company's performance by excluding certain non-cash expenses, and may include additional adjustments for items that are infrequent in nature. BroadSoft believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in BroadSoft's industry, many of which present similar non-GAAP financial measures to investors. A reconciliation of the non-GAAP financial measures included in this release and to be discussed on this morning's teleconference to the most directly comparable GAAP financial measures is set forth below.

Non-GAAP cost of revenue, license software cost of revenue, subscription and maintenance cost of revenue and professional services and other cost of revenue. We define non-GAAP cost of revenue as a cost of revenue less stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP cost of revenue to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and investors can compare our cost of revenue over multiple periods.

Non-GAAP gross profit, license software gross profit, subscription and maintenance support gross profit and professional services and other gross profit . We define non-GAAP gross profit as gross profit plus stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP gross profit to be a useful metric for management and our investors because it excludes the effect of certain non-cash expenses so management and investors can compare our sales margins over multiple periods.

Non-GAAP income from operations . We define non-GAAP operating income as income from operations plus stock-based compensation expense and amortization expense for acquired intangible assets. We consider non-GAAP operating income to be a useful metric for management and investors because it excludes the effect of certain non-cash expenses so management and investors can compare our core business operating results over multiple periods.

Non-GAAP operating expenses, sales and marketing expense, research and development expense and general and administrative expense . We define non-GAAP operating expenses as operating expense plus stock-based compensation expense allocated to sales and marketing, research and development and general and administrative expenses. Similarly, we define non-GAAP sales and marketing, research and development and general and administrative expenses as the relevant GAAP measure plus stock-based compensation expense allocated to the particular expense item.

Non-GAAP net income and net income per share . We define non-GAAP net income as net income plus stock-based compensation expense, amortization expense for acquired intangible assets, non-cash interest expense on our convertible senior notes, foreign currency transaction gains and losses, loss on repurchase of our convertible senior notes and non-cash tax expense included in the GAAP tax provision. We define non-GAAP income per share as non-GAAP net income divided by the weighted average shares outstanding.

The presentation of non-GAAP net income, non-GAAP net income per share, non-GAAP gross margin, non-GAAP income from operations, and other non-GAAP financial measures in this release and on this morning's teleconference is not meant to be a substitute for "net income," "net income per share," "gross margin," "income from operations" or other financial measures presented in accordance with GAAP, but rather should be evaluated in conjunction with such data. BroadSoft's definition of "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations" and other non-GAAP financial measures may differ from similarly titled non-GAAP measures used by other companies and may differ from period to period. In reporting non-GAAP measures in the future, management may make other adjustments for expenses and gains it does not consider reflective of core operating performance in a particular period and may modify "non-GAAP net income," "non-GAAP net income per share," "non-GAAP gross margin," "non-GAAP income from operations" and such other non-GAAP measures by excluding these expenses and gains.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "anticipate," "expect," "will," "believe," "continue" and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company's future financial performance set forth under the heading "Guidance." The outcome of the events described in these forward-looking statements is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: the Company's ability to expand its BroadCloud offering geographically and increase the associated recurring service revenue; the Company's dependence on the success of BroadWorks and on its service provider customers to sell services using its applications; the Company's dependence in large part on service providers' continued deployment of, and investment in, their IP-based networks; claims that the Company infringes the intellectual property rights of others; the Company's ability to integrate and achieve the expected benefits from its recent acquisitions; and the Company's ability to expand its product offerings, as well as those factors contained in the "Risk Factors" sections of the Company's Form 10-K for the year ended December 31, 2015 filed with the SEC on February 29, 2016, and in the Company's other filings with the SEC. All information in this release is as of August 1, 2016. Except as required by law, the Company undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in the Company's expectations.

About BroadSoft

BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services.

Financial Statements

The financial statements set forth below are not the complete set of the Company's financial statements for the quarter and the year and are presented below without footnotes. Readers are encouraged to obtain and carefully review BroadSoft's Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, including all financial statements contained therein and the footnotes thereto, once the report is filed with the SEC. Once filed with the SEC, the Form 10-Q may be retrieved from the SEC's website at www.sec.gov or from BroadSoft's website at www.broadsoft.com .

BroadSoft, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
					June 30, 2016				December 31, 2015
					(Unaudited)
Assets:
Current assets:
	Cash and cash equivalents				$	138,520			$	175,857
	Short-term investments					125,592				72,531
	Accounts receivable, net of allowance for doubtful accounts of $65 and $85 at June 30, 2016 and December 31, 2015, respectively					105,775				108,113
	Other current assets					14,388				13,155
		Total current assets				384,275				369,656
Long-term assets:
	Property and equipment, net					20,483				19,481
	Long-term investments					92,866				102,385
	Intangible assets, net					23,567				18,835
	Goodwill					80,020				72,275
	Deferred tax assets					8,572				1,661
	Other long-term assets					6,771				8,081
		Total long-term assets				232,279				222,718
			Total assets		$	616,554			$	592,374
Liabilities and stockholders' equity:
Current liabilities:
		Accounts payable and accrued expenses			$	31,177			$	28,667
		Deferred revenue, current portion				100,712				106,483
				Total current liabilities		131,889				135,150
		Convertible senior notes				194,562				188,331
		Deferred revenue				6,593				4,571
		Other long-term liabilities				6,070				7,289
				Total liabilities		339,114				335,341
Commitments and contingencies
Stockholders' equity:
		Preferred stock, $0.01 par value per share; 5,000,000 shares authorized at June 30, 2016 and December 31, 2015; no shares issued and outstanding at June 30, 2016 and December 31, 2015				--				--
		Common stock, par value $0.01 per share; 100,000,000 shares authorized at June 30, 2016 and December 31, 2015; 29,736,368 and 29,080,197 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively.				297				291
		Additional paid-in capital				359,063				333,153
		Accumulated other comprehensive loss				(16,200	)			(13,810	)
		Accumulated deficit				(65,720	)			(62,601	)
Total stockholders' equity						277,440				257,033
Total liabilities and stockholders' equity					$	616,554			$	592,374

BroadSoft, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
			Three Months Ended  June 30,								Six Months Ended  June 30,
			2016				2015				2016				2015
			(Unaudited)								(Unaudited)
Revenue:
	License software		$	33,597			$	30,091			$	64,506			$	53,027
	Subscription and maintenance support			36,800				27,026				69,839				52,435
	Professional services and other			11,324				7,367				20,512				14,693
		Total revenue		81,721				64,484				154,857				120,155
Cost of revenue:
	License software			2,169				2,869				3,898				5,540
	Subscription and maintenance support			11,456				10,227				22,166				19,171
	Professional services and other			8,921				7,125				17,280				11,520
		Total cost of revenue		22,546				20,221				43,344				36,231
Gross profit				59,175				44,263				111,513				83,924
Operating expenses:
	Sales and marketing			25,951				21,567				49,274				39,114
	Research and development			20,068				16,266				38,189				30,550
	General and administrative			12,603				11,306				23,916				20,411
		Total operating expenses		58,622				49,139				111,379				90,075
Income (loss) from operations				553				(4,876	)			134				(6,151	)
Other expense:
	Interest expense			3,926				2,027				7,779				4,016
	Interest income			(664	)			(282	)			(1,267	)			(496	)
	Other, net			185				(484	)			(326	)			1,223
		Total other expense, net		3,447				1,261				6,186				4,743
Loss before income taxes				(2,894	)			(6,137	)			(6,052	)			(10,894	)
	Provision for (benefit from) income taxes			1				(849	)			(1,648	)			(2,701	)
Net loss			$	(2,895	)		$	(5,288	)		$	(4,404	)		$	(8,193	)
Net loss per common share:
	Basic and diluted		$	(0.10	)		$	(0.18	)		$	(0.15	)		$	(0.28	)
Weighted average common shares outstanding:
	Basic and diluted			29,449				29,230				29,295				29,111
Stock-based compensation expense included above:
	Cost of revenue		$	2,171			$	2,347			$	3,893			$	3,386
	Sales and marketing			4,792				4,818				8,348				7,236
	Research and development			4,020				4,067				7,165				6,505
	General and administrative			2,629				2,562				4,880				4,103

BroadSoft, Inc.
SUMMARY OF CONSOLIDATED CASH FLOW ACTIVITY
(Unaudited)
		Six Months Ended  June 30,
		2016				2015
		(in thousands)
Cash provided by (used in):
	Operating activities	$	32,689			$	13,665
	Investing activities		(72,802	)			(33,822	)
	Financing activities		3,230				(1,889	)

BroadSoft, Inc.
BILLINGS (REVENUE PLUS NET CHANGE IN DEFERRED REVENUE)
(Unaudited)
		Three Months Ended  June 30,						Six Months Ended  June 30,
		2016			2015			2016				2015
		(in thousands)
Beginning of period deferred revenue balance		$	102,725		$	101,367		$	111,054			$	101,456
End of period deferred revenue balance			107,305			107,726			107,305				107,726
	Increase (decrease) in deferred revenue		4,580			6,359			(3,749	)			6,270
Revenue			81,721			64,484			154,857				120,155
	Revenue plus net change in deferred revenue	$	86,301		$	70,843			151,108				126,425

BroadSoft, Inc.
LICENSE SOFTWARE BILLINGS
(Unaudited)
		Three Months Ended  June 30,							Six Months Ended  June 30,
		2016				2015			2016				2015
		(in thousands)
Beginning of period deferred license software revenue balance		$	27,853			$	30,771		$	33,200			$	26,495
End of period deferred license software revenue balance			26,798				32,582			26,798				32,582
	Increase (decrease) in deferred license software revenue		(1,055	)			1,811			(6,402	)			6,087
License software revenue			33,597				30,091			64,506				53,027
	License software revenue plus net change in deferred license software revenue	$	32,542			$	31,902		$	58,104			$	59,114

BroadSoft, Inc.
SUBSCRIPTION AND MAINTENANCE SUPPORT BILLINGS
(Unaudited)
		Three Months Ended  June 30,						Six Months Ended  June 30,
		2016			2015			2016				2015
		(in thousands)
Beginning of period deferred subscription and maintenance support revenue balance		$	57,464		$	51,204		$	61,399			$	52,764
End of period deferred subscription and maintenance support revenue balance			60,381			53,951			60,381				53,951
	Increase (decrease) in deferred subscription and maintenance support revenue		2,917			2,747			(1,018	)			1,187
Subscription and maintenance support revenue			36,800			27,026			69,839				52,435
	Subscription and maintenance support revenue plus net change in deferred subscription and maintenance support revenue	$	39,717		$	29,773		$	68,821			$	53,622

BroadSoft, Inc.
PROFESSIONAL SERVICES AND OTHER BILLINGS
(Unaudited)
		Three Months Ended  June 30,						Six Months Ended  June 30,
		2016			2015			2016			2015
		(in thousands)
Beginning of period deferred professional services and other revenue balance		$	17,408		$	19,392		$	16,455		$	22,197
End of period deferred professional services and other revenue balance			20,126			21,193			20,126			21,193
	Increase (decrease) in deferred professional services and other revenue		2,718			1,801			3,671			(1,004	)
Professional services and other revenue			11,324			7,367			20,512			14,693
	Professional services and other revenue plus net change in deferred professional services and other revenue	$	14,042		$	9,168		$	24,183		$	13,689

BroadSoft, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
			Three Months Ended  June 30,								Six Months Ended  June 30,
			2016				2015				2016				2015
			(in thousands)
Non-GAAP cost of revenue:
GAAP license cost of revenue			$	2,169			$	2,869			$	3,898			$	5,540
	(percent of related revenue)			6	%			10	%			6	%			10	%
Less:
	Stock-based compensation expense			168				374				326				537
	Amortization of acquired intangible assets			335				419				669				868
Non-GAAP license cost of revenue			$	1,666			$	2,076			$	2,903			$	4,135
	(percent of related revenue)			5	%			7	%			5	%			8	%
GAAP subscription and maintenance support cost of revenue			$	11,456			$	10,227			$	22,166			$	19,171
	(percent of related revenue)			31	%			38	%			32	%			37	%
Less:
	Stock-based compensation expense			833				1,114				1,486				1,721
	Amortization of acquired intangible assets			1,183				1,056				2,235				2,111
Non-GAAP subscription and maintenance support cost of revenue			$	9,440			$	8,057			$	18,445			$	15,339
	(percent of related revenue)			26	%			30	%			26	%			29	%
GAAP professional services and other cost of revenue			$	8,921			$	7,125			$	17,280			$	11,520
	(percent of related revenue)			79	%			97	%			84	%			78	%
Less:
	Stock-based compensation expense			1,170				859				2,081				1,128
		Amortization of acquired intangible assets	$	175			$	58			$	350			$	58
Non-GAAP professional services and other cost of revenue			$	7,576			$	6,208			$	14,849			$	10,334
	(percent of related revenue)			67	%			84	%			72	%			70	%
			Three Months Ended  June 30,								Six Months Ended  June 30,
			2016				2015				2016				2015
			(in thousands)
Non-GAAP gross profit:
GAAP gross profit			$	59,175			$	44,263			$	111,513			$	83,924
	(percent of total revenue)			72	%			69	%			72	%			70	%
Plus:
	Stock-based compensation expense			2,171				2,347				3,893				3,386
	Amortization of acquired intangible assets			1,693				1,533				3,254				3,037
Non-GAAP gross profit			$	63,039			$	48,143			$	118,660			$	90,347
	(percent of total revenue)			77	%			75	%			77	%			75	%
GAAP license gross profit			$	31,428			$	27,222			$	60,608			$	47,487
	(percent of related revenue)			94	%			90	%			94	%			90	%
Plus:
	Stock-based compensation expense			168				374				326				537
	Amortization of acquired intangible assets			335				419				669				868
Non-GAAP license gross profit			$	31,931			$	28,015			$	61,603			$	48,892
	(percent of related revenue)			95	%			93	%			95	%			92	%
GAAP subscription and maintenance support gross profit			$	25,344			$	16,799			$	47,673			$	33,264
	(percent of related revenue)			69	%			62	%			68	%			63	%
Plus:
	Stock-based compensation expense			833				1,114				1,486				1,721
	Amortization of acquired intangible assets			1,183				1,056				2,235				2,111
Non-GAAP subscription and maintenance support gross profit			$	27,360			$	18,969			$	51,394			$	37,096
	(percent of related revenue)			74	%			70	%			74	%			71	%
GAAP professional services and other gross profit			$	2,403			$	242			$	3,232			$	3,173
	(percent of related revenue)			21	%			3	%			16	%			22	%
Plus:
	Stock-based compensation expense			1,170				859				2,081				1,128
		Amortization of acquired intangible assets	$	175			$	58			$	350			$	58
Non-GAAP professional services and other gross profit			$	3,748			$	1,159			$	5,663			$	4,359
	(percent of related revenue)			33	%			16	%			28	%			30	%
			Three Months Ended  June 30,								Six Months Ended  June 30,
			2016				2015				2016				2015
			(in thousands)
Non-GAAP income from operations:
GAAP loss from operations			$	553			$	(4,876	)		$	134			$	(6,151	)
	(percent of total revenue)			1	%			(8	)%			--	%			(5	)%
Plus:
	Stock-based compensation expense			13,612				13,794				24,286				21,230
	Amortization of acquired intangible assets			1,693				1,533				3,254				3,037
Non-GAAP income from operations			$	15,858			$	10,451			$	27,674			$	18,116
	(percent of total revenue)			19	%			16	%			18	%			15	%
GAAP operating expense			$	58,622			$	49,139			$	111,379			$	90,075
	(percent of total revenue)			72	%			76	%			72	%			75	%
Less:
	Stock-based compensation expense			11,441				11,447				20,393				17,844
Non-GAAP operating expense			$	47,181			$	37,692			$	90,986			$	72,231
	(percent of total revenue)			58	%			58	%			59	%			60	%
GAAP sales and marketing expense			$	25,951			$	21,567			$	49,274			$	39,114
	(percent of total revenue)			32	%			33	%			32	%			33	%
Less:
	Stock-based compensation expense			4,792				4,818				8,348				7,236
Non-GAAP sales and marketing expense			$	21,159			$	16,749			$	40,926			$	31,878
	(percent of total revenue)			26	%			26	%			26	%			27	%
GAAP research and development expense			$	20,068			$	16,266			$	38,189			$	30,550
	(percent of total revenue)			25	%			25	%			25	%			25	%
Less:
	Stock-based compensation expense			4,020				4,067				7,165				6,505
Non-GAAP research and development expense			$	16,048			$	12,199			$	31,024			$	24,045
	(percent of total revenue)			20	%			19	%			20	%			20	%
GAAP general and administrative expense			$	12,603			$	11,306			$	23,916			$	20,411
	(percent of total revenue)			15	%			18	%			15	%			17	%
Less:
	Stock-based compensation expense			2,629				2,562				4,880				4,103
Non-GAAP general and administrative expense			$	9,974			$	8,744			$	19,036			$	16,308
	(percent of total revenue)			12	%			14	%			12	%			14	%
			Three Months Ended  June 30,								Six Months Ended  June 30,
			2016				2015				2016				2015
			(in thousands, except per share data)
Non-GAAP net income and income per share:
GAAP net loss			$	(2,895	)		$	(5,288	)		$	(4,404	)		$	(8,193	)
	(percent of total revenue)			(4	)%			(8	)%			(3	)%			(7	)%
Adjusted for:
	Stock-based compensation expense			13,612				13,794				24,286				21,230
	Amortization of acquired intangible assets			1,693				1,533				3,254				3,037
	Non-cash interest expense on our convertible senior notes			3,144				1,576				6,231				3,116
	Foreign currency transaction losses (gains)			185				(484	)			(326	)			1,223
	Non-cash tax benefit			(786	)			(1,406	)			(3,018	)			(3,409	)
Non-GAAP net income			$	14,953			$	9,725			$	26,023			$	17,004
	(percent of total revenue)			18	%			15	%			17	%			14	%
GAAP net loss per basic common share			$	(0.10	)		$	(0.18	)		$	(0.15	)		$	(0.28	)
Adjusted for:
	Stock-based compensation expense			0.46				0.47				0.83				0.73
	Amortization of acquired intangible assets			0.06				0.05				0.11				0.10
	Non-cash interest expense on our convertible senior notes			0.11				0.05				0.21				0.11
	Foreign currency transaction losses (gains)			0.01				(0.02	)			(0.01	)			0.04
	Non-cash tax benefit			(0.03	)			(0.05	)			(0.10	)			(0.12	)
Non-GAAP net income per basic common share			$	0.51			$	0.33			$	0.89			$	0.58
GAAP net loss per diluted common share			$	(0.10	)		$	(0.18	)		$	(0.15	)		$	(0.28	)
Adjusted for:
	Stock-based compensation expense			0.44				0.46				0.81				0.71
	Amortization of acquired intangible assets			0.06				0.05				0.11				0.10
	Non-cash interest expense on our convertible senior notes			0.10				0.05				0.21				0.10
	Foreign currency transaction losses (gains)			0.01				(0.02	)			(0.01	)			0.04
	Non-cash tax benefit			(0.03	)			(0.05	)			(0.10	)			(0.11	)
Non-GAAP net income per diluted common share			$	0.49			$	0.32			$	0.87			$	0.57

* For the three and six months ended June 30, 2016 and 2015, the non-GAAP net income per diluted common share calculation included the dilutive effect of stock-based awards and for the three and six months ended June 30, 2016, the non-GAAP net income per diluted common share calculation included the effect of the premium feature of the 1.00% convertible senior notes due in 2022 (which, in each case, were not reflected in the corresponding GAAP diluted share calculations, as their effect would have been anti-dilutive as a result of the net losses for these periods). Total diluted weighted average common shares outstanding used for calculating non-GAAP net income per diluted common share were 30,629 thousand and 29,930 thousand for the three months ended June 30, 2016 and 2015 and 30,044 thousand and 29,741 thousand for the six months ended June 30, 2016 and 2015, respectively.

BSFT-F