Category Archives: Business & Finance

UN: Israel demolishes 6 EU-funded structures in January, 44 schools awaiting demolition

Jerusalem,Israeli authorities demolished six European Union-funded structures in Area C of the occupied West Bank in January under the pretext of lack of building permit while 44 schools have pending demolition orders, a report on Israeli demolition of Palestinian structures during January by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) said on Friday.

OCHA said in another report also published on Friday on the protection of civilians in the occupied Palestinian territories covering the first two weeks of February that the Israeli authorities demolished or seized 25 structures in Area C and occupied East Jerusalem on the grounds of lack of building permits, including a donor-funded school.

As a result of the latest Israeli measures, 33 Palestinians, including 18 children, were displaced and another 135 were otherwise affected.

OCHA said two classrooms serving 26 Palestinian 3rd and 4th grade school children were demolished in the Bedouin and refugee community of Abu Nuwar, in Area C on the outskirts of Jerusalem on February 4. This is one of the 46 Bedouin communities in the central West Bank at risk of forcible transfer, due to the coercive environment exerted on them, including relocation plans by the Israeli authorities.

It is estimated that at least 44 schools – 36 in Area C and 8 in East Jerusalem – have pending demolition or stop-work orders. Of the other structures targeted during the reporting period, 15 were in East Jerusalem (Silwan, Beit Hanina, and al-Isawiya) and nine were in Area C, including in the herding community of Um al Jmal (Tubas) and in Wadi Qana (Salfit).

The six EU-funded structures demolished in January – two residential and four animal shelters worth about Euros 7,700 – were in the Palestinian Bedouin community of al Jiftlik Abu al Ajaj, in the central Jordan Valley. They were provided in response to a demolition that occurred a year ago.

The demolition affected a family residing in an area of this community, which is designated by the Israeli authorities as a ‘firing zone’; the road leading to that area was also damaged and blocked following the demolitions.

Another eight structures funded by the EU and its member states were served with stop-work orders and face imminent demolition on the ground they were being built without a permit.

OCHA said Israel demolished or seized 32 Palestinian-owned structures across the West Bank in January, approximately the same number of structures as the 2017 monthly average. As a result, 37 people were displaced and another 82 were otherwise affected.

It said nearly 60 percent of the structures, or 19 out of 32, were in East Jerusalem, all demolished on grounds of lack of Israeli-issued building permits, which are nearly impossible to obtain.

The largest incident occurred in the neighborhood of al-Isawiya, where the Israeli municipality of West Jerusalem along with the National Parks Authority demolished 12 commercial and animal-related structures.

Another two structures, two multi-story buildings under construction, were demolished in Bir Onah, a residential area within the municipal boundary of Jerusalem, which is physically severed from the city by the apartheid barrier.

Four incidents took place in Area C in January involving the demolition or seizure of nine structures were also on grounds of lack of Israeli-issued building permits.

In 2017, two EU-funded schools in the communities of Abu Nuwar and Jubbet Adh Dhib, in the Jerusalem and Bethlehem governorates, were affected by seizures on grounds of lack of Israeli permits, and a kindergarten in the Jabal al-Baba community in the Jerusalem governorate, not funded by the EU, was demolished.

Children living in other Area C communities lacking a school often must walk or travel long distances to reach their schools and are exposed to settler harassment or searches at checkpoints. These constraints undermine the quality of education and increase the chances of early dropout.

Meanwhile, during a military operation in Jenin city, reportedly aimed at arresting the suspected perpetrators of a shooting attack in which an Israeli settler was killed, the Israeli military bulldozed and destroyed another four structures, including three homes and a greenhouse.

Source: International Islamic News Agency

Former Pakistani Taliban Spokesman to Face Trial in Military Court

A senior Pakistani official has told the country’s lawmakers that Ehsanullah Ehsan, the former spokesman of the Tehreek-e-Taliban Pakistan (TTP) and Jamaat-ul-Ahrar (JuA), both U.S.-designated terror groups, will be tried in a military court.

Responding to a Senate inquiry regarding the fate and status of Ehsan’s case, Talal Chaudhry, the minister of state for interior affairs, made the announcement Friday to the upper house of parliament.

Military courts were established in 2015 to provide faster and more efficient trials of suspected terrorists and their facilitators following a deadly Taliban attack on an Army Public School in Peshawar, capital of Khyber Pakhtunkhwa province. The attack resulted in the deaths of more than 130 people, the majority of whom were children.

Ehsan was TTP’s spokesman at the time of the attack.

“Relevant institutions have decided not to pardon or release Ehsanullah Ehsan,” Chaudhry reportedly told the Senate. He assured lawmakers that Ehsan would be tried in accordance with Pakistan’s laws.

Chaudhry’s assurance to lawmakers came amid speculation that Ehsan might be pardoned or released. On Friday, though, Chaudry tried to put lawmakers at ease by emphasizing that the government has zero tolerance for terrorists.

This was not the first time that questions had been raised about Ehsan’s fate in government’s custody. Last year in December, a court in Peshawar issued an order, barring Ehsan’s possible release. The court instructed the government to keep the suspect in captivity and continue with his interrogation.

Ehsan’s capture

Ehsan reportedly surrendered himself to Pakistan’s intelligence agency last year in April. He then confessed on a video released by Pakistani authorities that he had been involved in terror activities and took responsibility for orchestrating a series of deadly terror attacks on behalf of JuA and TTP across Pakistan.

In the video, Ehsan also alleged that Indian and Afghan intelligence agencies had provided operational and financial assistance to the TTP and JuA to launch deadly terror attacks inside Pakistan.

Both New Delhi and Kabul denied the allegations at the time and charged that Ehsan’s confession had been orchestrated by Pakistan’s intelligence agency in an effort to shift the blame to India and Afghanistan.

Who is Ehsan?

Ehsan’s real name is Liaqat Ali, and he is from the semiautonomous tribal belt of northwestern Pakistan that shares a border with Afghanistan.

Ehsan reportedly joined Tehreek-e-Taliban in 2008 as a college student and eventually became the mouthpiece of the terror group.

When a faction of TTP parted ways with the terrorist organization and established JuA in 2014, Ehsan became that new group’s spokesman.

JuA has claimed responsibility for numerous deadly attacks in Pakistan, including a suicide bombing in Lahore Park during Easter last year that killed at least 70 people, the majority of them Christians.

The United States placed Jammat-ul-Ahrar on a list of specially designated global terrorist organizations in 2016. TTP was designated a foreign terrorist organization by the U.S. State Department in 2010.

Source: Voice of America

Mimecast Announces Third Quarter 2018 Financial Results

  • Total revenue of $67.3 million grew 39% yoy on a GAAP basis and 36% in constant currency
  • Added 1,100 new customers. Total customers 29,200 globally
  • Revenue retention rate of 111%
  • Gross profit percentage of 74%
  • GAAP EPS of $(0.05) per diluted share, Non-GAAP EPS of $0.03 per diluted share

LEXINGTON, Mass., Feb. 12, 2018 (GLOBE NEWSWIRE) — Mimecast Limited (NASDAQ:MIME), a leading email and data security company, today announced financial results for the third quarter ended December 31, 2017.

“I’m very pleased with our high quality customer growth in the third quarter.  Mimecast’s platform of services is appealing to organizations of all sizes seeking to bolster their cyber resilience,” stated Peter Bauer, CEO of Mimecast.

Mimecast’s CFO Peter Campbell noted, “We executed well against our financial targets in the third quarter.  We delivered results that exceeded our revenue guidance and was at the high end of the guided range for adjusted EBITDA.”

Third Quarter 2018 Financial Highlights

  • Revenue: GAAP revenue for the third quarter of 2018 was $67.3 million, an increase of 39% compared to $48.3 million of GAAP revenue in the third quarter of 2017. Revenue on a constant currency basis increased 36% compared to the third quarter of 2017.
  • Customers: Added 1,100 net new customers in the third quarter of 2018. We now serve over 29,200 organizations globally.
  • Revenue Retention Rate: Revenue retention rate was 111% in the third quarter of 2018, consistent with the prior quarter.
  • Gross Profit Percentage: Gross profit percentage was 74% in the third quarter of 2018, up from 73% in the third quarter of 2017.
  • GAAP Net Loss: GAAP net loss was $2.6 million, or $(0.05) per diluted share, based on 57.5 million weighted-average shares outstanding.
  • Adjusted EBITDA: Adjusted EBITDA was $6.7 million, representing an Adjusted EBITDA margin of 10.0%, up from 7.6% in the third quarter of 2017.
  • Non-GAAP Net Income: Non-GAAP net income was $1.6 million, or $0.03 per share, based on 61.2 million diluted shares outstanding.
  • Free Cash Flow and Cash and Investments: Mimecast generated $4.5 million of free cash flow in the third quarter of 2018, up from $2.2 million in the third quarter of 2017. Cash and investments as of December 31, 2017 were $128.9 million.

Reconciliations of the non-GAAP financial measures provided in this press release to their most directly comparable GAAP financial measures are provided in the financial tables included at the end of this press release. An explanation of these measures and how they are calculated is also included below under the heading “Non-GAAP Financial Measures.”

Third Quarter 2018 Business Highlights                       

  • Sales of Targeted Threat Protection grew rapidly as 1,700 new and existing customers adopted the service in the third quarter.  In total, more than 15,100 customers now use the service.
  • A total of 29% of customers used Mimecast in conjunction with Microsoft® Office 365™ during the third quarter compared to 26% in the second quarter of 2018. Approximately 8,600 customers of all sizes have selected Mimecast to enhance their security, archive their data, and to provide uptime assurance for their Office 365 investments.
  • Stephen Ward joined Mimecast’s Board of Directors. Stephen brings more than 20 years of experience in physical security, personal protection, fraud, cybersecurity and technology risk acquired throughout his career in both the private sector and as a special agent with the U.S. Secret Service.  Currently he serves as the Chief Information Security Officer at TIAA.
  • Mimecast strengthened its leadership team with the additions of Janet Levesque as Senior Vice President of Systems, Risk and Security and Marc French as Chief Trust Officer and Data Protection Officer.
  • In January 2018, Mimecast opened a new North American Headquarters in Lexington, MA. The 79,000 square foot facility doubles the companies available space in the region.
  • Mimecast was named a top place to work in Massachusetts for 2017 by The Boston Globe.

Business Outlook
Mimecast is providing guidance for the fourth quarter and fiscal year 2018. Additionally, we are introducing a range for 2019 revenue growth.

Fourth Quarter 2018 Guidance:
For the fourth quarter of 2018, constant currency revenue growth is expected to be in the range of 28% to 29% and revenue is expected to be in the range of $71.1 million to $71.8 million. Our guidance is based on exchange rates as of January 31, 2018 and includes a positive impact of $3.9 million related to the weakening of the U.S. dollar compared to the prior year.

Adjusted EBITDA for the fourth quarter is expected to be in the range of $5.4 million to $6.4 million.

Full Year 2018 Guidance:
For the full year 2018, revenue is expected to be in the range of $259.6 million to $260.3 million or 36% growth in constant currency.  Foreign exchange rate fluctuations are positively impacting this guidance by an estimated $4.9 million related to the weakening of the U.S. dollar with respect to the British Pound and the South African Rand versus the prior year. Relative to the prior annual guidance we provided in November, foreign exchange rate fluctuations are positively impacting this guidance by an estimated $3.5 million.   Adjusted EBITDA is expected to be in the range of $23.9 million to $24.9 million.

GAAP net loss is the most comparable GAAP measure to Adjusted EBITDA. Adjusted EBITDA differs from GAAP net loss in that it excludes depreciation and amortization, share-based compensation expense, interest income and interest expense, the provision for income taxes and foreign exchange (expense) income. Mimecast is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort. Therefore, Mimecast has not provided guidance for GAAP net loss or a reconciliation of forward-looking Adjusted EBITDA guidance to GAAP net loss.

Conference Call and Webcast Information
Mimecast will host a conference call to discuss these financial results for investors and analysts at 4:30 pm EDT (UTC-05:00) on February 12, 2018.  To access the conference call, dial (844) 815-2878 for the U.S. and Canada and (615) 800-6885 for international callers and enter conference ID# 1575108. The call will also be webcast live on the investor relations section of the Company’s website http://investors.mimecast.com.  An audio replay of the call will be available two hours after the live call ends by dialing (855) 859-2056 for U.S. and Canada or (404) 537-3406 for international callers, and entering conference ID# 1575108.  In addition, an archive of the webcast will be available on the investor relations section of the company’s website http://investors.mimecast.com.

About Mimecast Limited
Mimecast Limited (NASDAQ:MIME) makes business email and data safer for more than 29,200 customers and millions of employees worldwide. Founded in 2003, the Company’s next-generation cloud-based security, archiving and continuity services protect email, and deliver comprehensive email risk management in a single, fully-integrated subscription service. Mimecast reduces email risk and the complexity and cost of managing the array of point solutions traditionally used to protect email and its data. For customers that have migrated to cloud services like Microsoft® Office 365™, Mimecast mitigates single vendor exposure by strengthening security coverage, combating downtime and improving archiving.

Mimecast and the Mimecast logo are registered trademarks of Mimecast. All other third-party marks and logos contained in this press release are the property of their respective owners.

Safe Harbor for Forward-Looking Statements
Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, the statements relating to Mimecast’s future financial performance on both a GAAP and non-GAAP basis under the heading “Business Outlook” above, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words “predicts,” “plan,” “expects,” “anticipates,” “believes,” “goal,” “target,” “estimate,” “potential,” “may,” “might,” “could,” “see,” “seek,” “forecast,” and similar words. Mimecast intends all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors detailed in Mimecast’s filings with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, Mimecast’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. Mimecast is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures
We have provided in this release financial information that has not been prepared in accordance with GAAP. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that 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 our financial results with other companies in our industry, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release.

Revenue Constant Currency Growth Rate. We believe revenue constant currency growth rate is a key indicator of our operating results. We calculate revenue constant currency growth rate by translating revenue from entities reporting in foreign currencies into U.S. dollars using the comparable foreign currency exchange rates from the prior fiscal period. To determine projected revenue growth rates on a constant currency basis for the fourth quarter and full year 2018, expected revenue from entities reporting in foreign currencies will be translated into U.S. dollars using the comparable prior year period’s monthly average foreign currency exchange rates.

Adjusted EBITDA and Adjusted EBITDA margin. We believe that Adjusted EBITDA and Adjusted EBITDA margin are key indicators of our operating results. We define Adjusted EBITDA as net loss, adjusted to exclude: depreciation and amortization, share-based compensation expense, interest income and interest expense, the provision for income taxes and foreign exchange (expense) income predominantly related to the elimination of intercompany balances. We define Adjusted EBITDA margin as Adjusted EBITDA over revenue in the period.

Non-GAAP net income. We define non-GAAP net income as net loss less share-based compensation expense and the related income tax effects of excluding share-based compensation expense. We consider this non-GAAP financial measure to be a useful metric for management and investors because it excludes the effect of share-based compensation expense and related income tax effects so that our management and investors can compare our recurring core business net results over multiple periods. There are a number of limitations related to the use of non-GAAP net income versus net loss calculated in accordance with GAAP. For example, as noted above, non-GAAP net income excludes share-based compensation expense and related income tax effects. In addition, the components of the costs that we exclude in our calculation of non-GAAP net income may differ from the components that our peer companies exclude when they report their non-GAAP results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and evaluating non-GAAP net income together with net loss calculated in accordance with GAAP.

Free cash flow. We define free cash flow as net cash provided by operating activities minus capital expenditures. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the acquisition of property and equipment, can be used for strategic opportunities, including investing in our business, and strengthening the balance sheet. Analysis of free cash flow facilitates management’s comparisons of our operating results to competitors’ operating results. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating our company is that free cash flow does not represent the total increase or decrease in the cash balance from operations for the period because it excludes cash used for capital expenditures during the period. Management compensates for this limitation by providing information about our capital expenditures on the face of the cash flow statement and in the liquidity and capital resources discussion included in our annual and quarterly reports filed with the Securities and Exchange Commission.

MIMECAST LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)

  Three months ended December 31,     Nine months ended December 31,  
    2017     2016       2017     2016  
Revenue $ 67,272 $ 48,333 $ 188,496 $ 134,154
Cost of revenue 17,728 13,144 49,523 36,860
Gross profit 49,544 35,189 138,973 97,294
Operating expenses
Research and development 10,005 5,889 26,188 15,986
Sales and marketing 31,190 25,336 88,904 69,665
General and administrative 9,478 6,994 26,629 20,047
Total operating expenses 50,673 38,219 141,721 105,698
Loss from operations (1,129 ) (3,030 ) (2,748 ) (8,404 )
Other income (expense)
Interest income 301 164 854 307
Interest expense (56 ) (61 ) (156 ) (244 )
Foreign exchange (expense) income (864 ) (81 ) (2,059 ) 6,734
Total other income (expense), net (619 ) 22 (1,361 ) 6,797
Loss before income taxes (1,748 ) (3,008 ) (4,109 ) (1,607 )
Provision for income taxes 845 362 1,723 1,216
Net loss $ (2,593 ) $ (3,370 ) $ (5,832 ) $ (2,823 )
Net loss per ordinary share
Basic and diluted $ (0.05 ) $ (0.06 ) $ (0.10 ) $ (0.05 )
Weighted-average number of ordinary shares outstanding:
Basic and diluted 57,505 54,949 56,944 54,625

MIMECAST LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
 (unaudited)

As of December 31,       As of March 31,  
2017   2017  
Assets  
Current assets
Cash and cash equivalents $ 75,990 $ 51,319
Short-term investments 52,905 60,347
Accounts receivable, net 53,796 44,358
Prepaid expenses and other current assets 10,269 10,054
Total current assets 192,960 166,078
Property and equipment, net 86,894 32,009
Intangible assets, net 10,279 1,590
Goodwill 5,612 5,363
Other assets 1,564 312
Total assets $ 297,309 $ 205,352
Liabilities and shareholders’ equity
Current liabilities
Accounts payable $ 5,989 $ 3,558
Accrued expenses and other current liabilities 28,755 20,713
Deferred revenue 102,740 84,159
Current portion of capital lease obligations 1,180 233
Current portion of long-term debt 187 1,725
Total current liabilities 138,851 110,388
Deferred revenue, net of current portion 16,684 11,189
Long-term capital lease obligations 2,766 245
Construction financing lease obligation 36,776
Other non-current liabilities 5,797 1,538
Total liabilities 200,874 123,360
Commitments and contingencies
Shareholders’ equity
Ordinary shares, $0.012 par value, 300,000,000 shares authorized; 57,811,668
and 55,901,996 shares issued and outstanding as of December 31, 2017
and March 31, 2017, respectively
694 671
Additional paid-in capital 202,281 183,752
Accumulated deficit (99,953 ) (94,017 )
Accumulated other comprehensive loss (6,587 ) (8,414 )
Total shareholders’ equity 96,435 81,992
Total liabilities and shareholders’ equity $ 297,309 $ 205,352

MIMECAST LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

Three months ended December 31,     Nine months ended December 31,  
2017   2016       2017   2016  
Operating activities                                
Net loss $ (2,593 ) $ (3,370 ) $ (5,832 ) $ (2,823 )
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 4,719 3,042 12,578 8,703
Share-based compensation expense 3,142 3,641 8,698 7,949
Provision for doubtful accounts 30 33 142 83
Loss (gain) on disposal of fixed assets 1 2 1 (3 )
Other non-cash items 27 30 191 66
Unrealized currency loss (gain) on foreign denominated transactions 629 14 1,427 (6,293 )
Changes in assets and liabilities:
Accounts receivable (7,162 ) (6,820 ) (7,593 ) (6,038 )
Prepaid expenses and other current assets 1,147 (828 ) (627 ) 509
Other assets 9 1 42 (38 )
Accounts payable (733 ) 22 760 2,451
Deferred revenue 12,272 9,453 19,717 15,204
Accrued expenses and other liabilities 1,165 609 2,121 2,847
Net cash provided by operating activities 12,653 5,829 31,625 22,617
Investing activities  
Purchases of investments   (23,468 ) (57,514 ) (47,989 ) (57,514 )
Maturities of investments   16,308 54,808
Purchases of property, equipment and capitalized software   (8,186 ) (3,628 ) (21,589 ) (13,357 )
Payments for acquisitions (1,381 ) (5,574 ) (1,381 ) (5,574 )
Net cash used in investing activities (16,727 ) (66,716 ) (16,151 ) (76,445 )
Financing activities  
Proceeds from issuance of ordinary shares 3,084 402 9,520 1,963
Payments on debt (553 ) (1,139 ) (1,631 ) (3,629 )
Payments on capital lease obligations (227 ) (416 )
Net cash provided by (used in) financing activities 2,304 (737 ) 7,473 (1,666 )
Effect of foreign exchange rates on cash 832 (1,015 ) 1,724 (2,784 )
Net (decrease) increase in cash and cash equivalents (938 ) (62,639 ) 24,671 (58,278 )
   
Cash and cash equivalents at beginning of period 76,928 110,501 51,319 106,140
Cash and cash equivalents at end of period $ 75,990 $ 47,862 $ 75,990 $ 47,862

Key Performance Indicators
In addition to traditional financial metrics, such as revenue and revenue growth trends, we monitor several other non-GAAP financial measures and non-financial metrics to help us evaluate growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts and assess operational efficiencies. The key performance indicators that we monitor are as follows:

Three months ended December 31,   Nine months ended December 31,  
2017   2016   2017   2016  
(dollars in thousands)   (dollars in thousands)  
Revenue constant currency growth rate (1) 36 % 39 % 40 % 36 %
Revenue retention rate (2) 111 % 112 % 111 % 112 %
Total customers (3) 29,200 24,900 29,200 24,900
Gross profit percentage 74 % 73 % 74 % 73 %
Adjusted EBITDA (1) $ 6,732 $ 3,653 $ 18,528 $ 8,248

 

(1) Adjusted EBITDA and revenue constant currency growth rates are non-GAAP measures. For a reconciliation of Adjusted EBITDA and revenue constant currency growth rates to the nearest comparable GAAP measures, see “Reconciliation of Non-GAAP Financial Measures” below.
(2) We calculate our revenue retention rate by annualizing constant currency revenue recorded on the last day of the measurement period for only those customers in place throughout the entire measurement period. We include add-on, or upsell, revenue from additional employees and services purchased by existing customers. We divide the result by revenue on a constant currency basis on the first day of the measurement period for all customers in place at the beginning of the measurement period. The measurement period is the trailing twelve months. The revenue on a constant currency basis is based on the average exchange rates in effect during the respective period.
(3) Reflects the customer count on the last day of the period rounded to the nearest hundred customers. We define a customer as an entity with an active subscription contract as of the measurement date. A customer is typically a parent company or, in a few cases, a significant subsidiary that works with us directly.

Reconciliation of Non-GAAP Financial Measures

The following table presents a reconciliation of revenue growth rate, as reported to revenue constant currency growth rate:

Three months ended December 31, Nine months ended December 31,
2017   2016 2017   2016  
(dollars in thousands)
Reconciliation of Revenue Constant Currency Growth Rate:               
Revenue, as reported $ 67,272 $ 48,333 $ 188,496 $ 134,154
Revenue year-over-year growth rate, as reported 39 % 30 % 41 % 28 %
Estimated impact of foreign currency fluctuations (3 )% 9 % (1 )% 8 %
Revenue constant currency growth rate 36 % 39 % 40 % 36 %

The following table presents a reconciliation of Net loss to Adjusted EBITDA:

Three months ended December 31,   Nine months ended December 31,  
2017     2016   2017     2016  
(in thousands)  
Reconciliation of Adjusted EBITDA:    
Net loss $ (2,593 ) $ (3,370 ) $ (5,832 ) $ (2,823 )
Depreciation and amortization 4,719 3,042 12,578 8,703
Interest (income) expense, net (245 ) (103 ) (698 ) (63 )
Provision for income taxes 845 362 1,723 1,216
Share-based compensation expense 3,142 3,641 8,698 7,949
Foreign exchange expense (income) 864 81 2,059 (6,734 )
Adjusted EBITDA $ 6,732 $ 3,653 $ 18,528 $ 8,248

The following table presents a reconciliation of Net loss to Non-GAAP net income (in thousands, except per share amounts):

Three months ended December 31,   Nine months ended December 31,  
2017     2016   2017     2016  
Reconciliation of Non-GAAP Net Income:    
Net loss $ (2,593 ) $ (3,370 ) $ (5,832 ) $ (2,823 )
Share-based compensation expense 3,142 3,641 8,698 7,949
Provision for income taxes (1) 1,076 (206 ) (731 ) (411 )
Non-GAAP net income (1) $ 1,625 $ 65 $ 2,135 $ 4,715
Non-GAAP net income per ordinary share – basic $ 0.03 $ 0.00 $ 0.04 $ 0.09
Non-GAAP net income per ordinary share – diluted $ 0.03 $ 0.00 $ 0.04 $ 0.08
Weighted-average number of ordinary shares used in
computing Non-GAAP net income per ordinary share:
Basic 57,505 54,949 56,944 54,625
Diluted 61,222 59,755 60,918 58,545

 

(1) Non-GAAP net income excludes the impact of excess tax benefits resulting from share option exercises which were recorded on a GAAP basis.  Without the availability of excess tax benefits on a non-GAAP basis, our non-GAAP US tax provision utilizes net operating loss carryforwards to offset current year taxable income. We have not yet completed a full assessment of potential limitations under Section 382 of the Internal Revenue Code of 1986, as amended, and the finalization of a study may result in an adjustment to or limitation on the amount of net operating loss carryforwards we use.

The following table presents a reconciliation of Net cash provided by operating activities to Free Cash Flow (in thousands):

Three months ended December 31,   Nine months ended December 31,  
2017     2016   2017     2016  
Reconciliation of Free Cash Flow:                                    
Net cash provided by operating activities $ 12,653 $ 5,829 $ 31,625 $ 22,617
Purchases of property, equipment and capitalized software (8,186 ) (3,628 ) (21,589 ) (13,357 )
Free Cash Flow $ 4,467 $ 2,201 $ 10,036 $ 9,260

Share-based compensation expense for the three and nine months ended December 31, 2017 and 2016 (in thousands):

Three months ended December 31,   Nine months ended December 31,  
2017   2016   2017   2016  
Cost of revenue $ 344 $ 730 $ 786 $ 1,201
Research and development 663 735 1,946 1,468
Sales and marketing 1,195 1,531 3,265 3,637
General and administrative 940 645 2,701 1,643
Total share-based compensation expense $ 3,142 $ 3,641 $ 8,698 $ 7,949

Revenue Constant Currency Growth Rate reconciliation (dollars in millions):

Three months ended December 31, Nine months ended December 31,  
2017     2016     % Change 2017     2016   % Change
Total revenue as reported $ 67.3 $ 48.3 39 % $ 188.5 $ 134.2 41 %
Estimated impact of foreign currency fluctuations (3 )% (1 )%
Total revenue constant currency growth rate 36 % 40 %
Exchange rate for period      
USD 1.000 1.000 1.000 1.000
GBP 1.328 1.244 1.305 1.331
ZAR 0.073 0.072 0.075 0.070
AUD 0.769 0.749 0.770 0.751

Mimecast Social Media Resources

Press Contact
Alison Raymond Walsh
Press@Mimecast.com
617-393-7126

Investor Contact
Robert Sanders
Investors@Mimecast.com
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Pakistan’s Media Authority Reminds Licensees to Refrain from Promoting Valentine’s Day

WASHINGTON Pakistan has again banned Valentine’s Day events and media coverage of them, after a court ruled the holiday un-Islamic for a second consecutive year.

The judgment prohibited any advertising or the sale of merchandise associated with the day.

In order to comply with the court ruling, Pakistan’s Electronic Media Regulatory Authority (PEMRA) last week sent out instructions to its TV and radio licensees to remind them of the ban.

“Respondents are directed to ensure that nothing about the celebrations of Valentine’s Day and its promotion is spread on the Electronic and Print media,” PEMRA’s directive stated. “No event shall be held on an official level and at any public place. PEMRA is directed to ensure that all the TV channels shall stop the promotion of Valentine’s Day forthwith.”

On Feb. 13, 2017, the Islamabad High Court issued a judgment on a petition claiming Valentine’s Day was spreading “immorality, nudity and indecency” in the society.

The court prohibited Valentine’s Day celebrations in public places and government offices in Islamabad, and further instructed PEMRA to “ensure that nothing about the celebration of Valentine’s Day and its promotion is spread.”

PEMRA’s reminder to media outlets has renewed debate about the romantic celebration among different segments of society. Some view the day as an opportunity to express love, while others question its validity in relevance to Islamic, societal and cultural norms.

Saleema Hashmi, a Lahore-based artist and renowned educator, expressed her frustration with a system that focuses on “irrelevant issues,” rather than making decisions on issues that really impact society and the country.

“Don’t our courts have better things to do instead of passing rulings on celebrating a mere romantic day?” she asked. “I do not understand how celebrating or denouncing Valentine’s Day can impact our religion, traditions, social or cultural norms.”

She added, “If we do not agree that girls and boys can enjoy their right of expressing love, then it is our issue. We need to revisit our thinking patterns and accept the reality.”

Valentine’s Day has gained popularity in recent years in Pakistan, where Pakistani youths use the symbolic day to exchange cards, chocolates and gifts with their loved ones.

But public displays of affection and love is not allowed in the largely conservative society that considers such acts violations of Islam and Pakistani culture.

Aniq Ahmad, a prominent TV host who conducts a religious show on Dunya TV, believes the day holds no significance for Pakistan on moral, social and religious grounds.

“I agree with the court ruling that was passed last year, Ahmad told VOA. “Our values were being compromised. Our cultural norms and religious values were being affected. Celebrating the day of love is an insult to our religion. We need to teach our youth the morals and cultural norms in the light of Islam and the Quran,” he said.

The ruling has impacted many businesses. Last year, flower vendors and shops selling Valentine’s Day-related merchandise experienced a huge drop in sales after the ban was imposed.

The symbolic day of love has been openly condemned by religious groups and political parties such as Jamaat-e-Islami. In 2016, Valentine’s Day celebrations were prohibited by local authorities in Kohat, a city in the northwestern province of Khyber Pakhtunkhwa. Also that year, Pakistani President Mamnoon Hussain warned citizens to refrain from celebrating, as Valentine’s Day was “not a part of Muslim tradition, but of the West.”

Source: Voice of America

No Progress Reported in Pakistan-Afghanistan Talks

ISLAMABAD Afghanistan’s two-day dialogue with neighboring Pakistan ended Saturday without progress on issues dividing the two countries and fueling bilateral tensions, officials said.

Islamabad hosted the meeting of what is named the Afghanistan-Pakistan Action Plan for Peace and Solidarity, or APAPPS. The inaugural round of the Pakistan-initiated dialogue was held in Kabul on February 3.

Pakistani Foreign Ministry spokesman Mohammad Faisal said the two sides held good discussions with some agreements but said further work [was] required. He did not elaborate.

He said Pakistani Foreign Secretary Tehmina Janjua and Afghan Deputy Foreign Minister Hekmat Khalil Karzai led their respective delegations comprising senior civilian and military officials.

However, an Afghan Foreign Ministry statement issued in Kabul after Saturday’s talks categorically said the discussions made no headway on matters related to deteriorating security in Afghanistan.

While some progress was made on the mechanism of cooperation, no progress was achieved on specific, results-oriented, time-bound measures in the APAPPS, particularly in the areas of counter terrorism, reduction of violence, peace and reconciliation to meet the priorities of Afghanistan, according to the statement.

The Afghan government alleges the Taliban use sanctuaries on Pakistani soil to plot insurgent attacks and claimed last month’s bloody attacks in Kabul were planned in the neighboring country. Afghan officials also shared what they called evidence with Islamabad and demanded swift action against the perpetrators.

Pakistan denied any links to the spate of attacks in the Afghan capital and maintains no Taliban sanctuaries are present on its side of the border. Islamabad has also offered to conduct joint investigations into the recent violence.

For its part, Islamabad also alleges militants conducting terrorist attacks in Pakistan use sanctuaries on Afghan soil for plotting the violence. The allegations and counter allegations have plunged bilateral relations to new lows in recent years.

Saturday’s talks also covered subjects such as repatriation of around three million Afghan refugees from Pakistan and joint economic development.

Pakistani officials insist the prolonged presence of the refugee community coupled with inadequate border security on the Afghan side hamper Islamabad’s counterterrorism efforts.

The United States has also increased pressure on Pakistan to take action against alleged militant sanctuaries, including those of the Haqqani terrorist network. Islamabad asserts the country is being scapegoated for U.S. failures to secure Afghanistan.

Source: Voice of America

Apex Shipping Begins Process for CRI Group’s Anti-Bribery Management Certification

Founded on ethical values, Dubai-based logistics firm enrolls in ISO 37001:2016 ABMS standard

LONDON, Feb. 9, 2018 /PRNewswire/ — Corporate Research and Investigations Pvt. Ltd. (CRI Group) announced today that Apex Shipping Services LLC, based in Dubai, UAE, has engaged its CRI Certification services to achieve the ISO 37001 Anti-Bribery Management System Standard certification.

Building Trust. Promoting Compliance.

In a message to its stakeholders, Apex Shipping said the certification will allow the company to “implement our Anti-Bribery and Anti-Corruption program” and “will also enhance the eligibility criteria for Apex Shipping Services LLC to participate in Maritime Anti-Corruption Network (MACN) actively.”

London-based CRI Group is a global provider of Integrity Due Diligence, Employment Background Screening, Third-Party Risk Management and Compliance and Other Professional Investigative Research services. In 2016, the company launched its Anti-Bribery and Anti-Corruption Centre of Excellence (ABAC® CoE) to offer CRI Certification and expert training in programs including 3PRM-Certified™ and 3PRM-Qualified™.

Zafar Anjum, CRI Group’s CEO, said: “We look forward to working with Apex Shipping and we stand committed to helping them achieve their goals through ISO 37001:2016 certification, with standards that are recognized and practiced in more than 160 countries worldwide.”

ISO 37001:2016 Certification

The ISO 37001 standard helps global organizations implement an anti-bribery management system by specifying a series of measures required by the organization to prevent, detect and address bribery.

CRI Certification’s auditors and analysts develop measures that integrate with existing management processes and controls, including implementing an anti-bribery policy, providing compliance training, communicating the policy and program to all personnel, providing risk assessments, conducting due diligence, implementing internal controls and developing reporting and investigation procedures.

In its statement, Apex Shipping ownership said: “CRI Group is a frontrunner in the field of corporate integrity, and their certification gives Apex Shipping an official seal of approval in the way of business ethics.”

ABOUT CRI GROUP

Over the past 28 years, CRI Group has emerged as a global leader in corporate investigations and risk management, serving distinguished clients across six continents. CRI Group safeguards businesses by establishing the legal compliance, financial viability, and integrity levels of outside partners, suppliers and customers seeking to affiliate with an organization.

CONTACT CRI GROUP

Anil Sunagar
Marketing Manager
Corporate Research and Investigations Pvt. Ltd.
917-918, Liberty House, DIFC, Dubai, UAE
T: +971 4 3589884 | T: +971 521042433
www.CRICertification.com

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