Aspect Software Parent, Inc.

CIK:0001506545|SEC Filings

Condensed Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Net revenues:
Product revenue	$ 12,810	$ 21,408	$ 45,516	$ 51,189
Recurring revenue	67,930	72,248	207,357	217,756
Services revenue	16,608	19,794	51,769	59,777
Total net revenues	97,348	113,450	304,642	328,722
Cost of revenues:
Cost of product revenue	3,341	6,071	11,277	15,276
Cost of recurring revenue	21,776	22,203	65,868	67,653
Cost of services revenue	15,484	19,198	46,910	56,197
Amortization expense for acquired intangible assets			9,714	9,879
Total cost of revenues	41,828	48,697	127,711	142,800
Gross profit	55,520	64,753	176,931	185,922
Operating expenses:
Research and development	11,514	12,500	34,753	39,191
Selling, general and administrative	27,723	29,561	86,923	94,121
Restructuring charges	88	0	747	0
Total operating expenses	41,310	44,096	128,481	139,517
Income from operations	14,210	20,657	48,450	46,405
Interest and other expense, net	(22,341)	(19,208)	(59,211)	(57,091)
(Loss) income before income taxes	(8,131)	1,449	(10,761)	(10,686)
Provision for (benefit from) income taxes	1,467	(846)	4,047	(1,233)
Net (loss) income	(9,598)	2,295	(14,808)	(9,453)
Less: Net loss attributable to noncontrolling interest	(342)	(509)	(1,167)	(1,255)
Net (loss) income attributable to Aspect Software Parent, Inc.	(9,256)	2,804	(13,641)	(8,198)
Cost of revenues
Cost of revenues:
Amortization expense for acquired intangible assets	1,227	1,225	3,656	3,674
Operating expenses
Cost of revenues:
Amortization expense for acquired intangible assets	$ 1,985	$ 2,035	$ 6,058	$ 6,205

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (14,808)	$ (9,453)
Reconciliation of net loss to net cash and cash equivalents provided by operating activities:
Depreciation	7,747	6,839
Amortization expense for acquired intangible assets	9,714	9,879
Non-cash interest expense	5,404	4,508
Non-cash compensation expense	219	270
Increase to accounts receivable allowances	496	2,284
Deferred income taxes	952	(9,986)
Changes in operating assets and liabilities:
Accounts receivable	8,725	2,090
Receivable due from Aspect Software Group Holdings Ltd.	(67)	1,397
Other current assets and other assets	1,239	1,065
Accounts payable	(5,315)	2,162
Accrued liabilities and other liabilities	(2,249)	4,023
Deferred revenues	(7,596)	4,053
Net cash and cash equivalents provided by operating activities	4,461	19,131
Cash flows from investing activities:
Cash paid for acquisition, net of cash acquired	(1,000)	0
Purchases of property and equipment	(8,109)	(8,660)
Net cash and cash equivalents used in investing activities	(9,109)	(8,660)
Cash flows from financing activities:
Repayment of borrowings	(30,575)	(46,800)
Borrowings under debt facilities	44,000	15,000
Proceeds received from capital contribution	0	7,004
Net cash and cash equivalents provided by (used in) financing activities	13,425	(24,796)
Effect of exchange rate changes on cash	1,051	(126)
Net change in cash and cash equivalents	9,828	(14,451)
Cash and cash equivalents:
Beginning of period	17,030	26,694
End of period	26,858	12,243
Supplemental disclosure of cash flow information
Cash paid for interest	44,853	44,162
Cash paid for income taxes	$ 2,312	$ 1,553