LOGM 2017 Annual Report

Agreement executed in February 2017. As permitted by FASB issued ASU 2015-15, the Company presents debt issuance costs as an asset and subsequently amortizes the deferred debt issuance costs ratably over the term of the credit facility. 15. Subsequent Events Cash Dividend On February 1, 2018, the Company announced that its Board of Directors declared a cash dividend of $0.30 per share of common stock. The dividend is payable on February 28, 2018 to stockholders of record as of Febru- ary 12, 2018. Agreement to Acquire Jive Communications, Inc. On February 7, 2018, the Company entered into a definitive Agreement and Plan of Merger (the “Jive Merger Agreement”) to acquire all of the outstanding equity of Jive Communications, Inc. (“Jive”), a provider of cloud- based phone systems and Unified Communications services. The transaction is expected to close during the second quarter of 2018, subject to certain regulatory approvals and customary closing conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and consent of the Federal Communications Commission. The Company expects to pay $342 million in cash upon close for all outstanding equity interests in Jive, subject to potential working capital and other adjustments as further described in the Jive Merger Agreement. An additional $15 million in cash is payable in contingent payments which are expected to be paid to certain employees of Jive upon their achievement of speci- fied retention milestones over the two-year period following the closing of the transaction. The Company expects to fund the acquisition through a combination of cash and debt. At the time of signing the Jive Merger Agree- ment, Jive had approximately 600 employees and fiscal year 2017 revenue of approximately $80 million. Divestiture of Xively On February 9, 2018, the Company and certain of its subsidiaries entered into an agreement to sell its Xively busi- ness for approximately $50 million. This transaction is expected to close in the first quarter of 2018, subject to certain customary closing conditions, and is expected to result in a pre-tax gain of approximately $34 mil- lion. The net assets being sold are primarily comprised of $14 million of goodwill allocated to the Xively busi- ness. In fiscal year 2017, the Company recorded $3 million of revenue and $13 million of GAAP expense directly related to its Xively business. The sale of the Xively business does not constitute a significant strategic shift that will have a material impact on the Company’s ongoing operations and financial results. 16. Quarterly Information (Unaudited) For the Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (in thousands, except for per share data) Statement of Operations Data: Revenue . . . . . . . . . . . . . . . . . . $79,734 $83,266 $85,103 $87,965 $187,458 $257,025 $269,267 $276,036 Gross profit . . . . . . . . . . . . . . . . 68,534 71,830 73,618 76,585 148,519 203,789 213,662 220,613 Income (loss) from operations . . . . . . . . . . . . . . . (707) 3,360 (228) 1,988 (34,182) 293 7,161 14,911 Net income (loss) . . . . . . . . . . . (1,073) 2,506 (657) 1,862 (18,564) 14,846 9,920 93,321 Net income (loss) per share-basic . . . . . . . . . . . . . . . $ (0.04) $ 0.10 $ (0.03) $ 0.07 $ (0.43)$ 0.28 $ 0.19 $ 1.77 Net income (loss) per share- diluted . . . . . . . . . . . . . . . . . . $ (0.04) $ 0.10 $ (0.03) $ 0.07 $ (0.43)$ 0.28 $ 0.19 $ 1.74 84