| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2020 | 2019 | |||||||
| Cost of revenue – software | $ | 366 | $ | 64 | ||||
| Research and development | 1,428 | 358 | ||||||
| Sales and marketing | 727 | 462 | ||||||
| General and administrative | 650 | 328 | ||||||
| Total stock-based compensation expense | $ | 3,171 | $ | 1,212 | ||||
ALTAIR ENGINEERING INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
| Three Months Ended March 31, | ||||||||
| (In thousands) | 2020 | 2019 | ||||||
| OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 6,030 | $ | 13,019 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 5,660 | 5,194 | ||||||
| Provision for credit loss | 338 | 120 | ||||||
| Amortization of debt discount and issuance costs | 2,653 | 4 | ||||||
| Stock-based compensation expense | 3,171 | 1,212 | ||||||
| Deferred income taxes | (6,001 | ) | (654 | ) | ||||
| Other, net | 7 | — | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 14,463 | 7,678 | ||||||
| Prepaid expenses and other current assets | 1,184 | (5,755 | ) | |||||
| Other long-term assets | (321 | ) | (1,516 | ) | ||||
| Accounts payable | (3,001 | ) | (1,792 | ) | ||||
| Accrued compensation and benefits | (2,581 | ) | (2,815 | ) | ||||
| Other accrued expenses and current liabilities | 8,580 | 4,093 | ||||||
| Operating lease right-of-use assets and liabilities, net | (17 | ) | 286 | |||||
| Deferred revenue | (2,129 | ) | 6,241 | |||||
| Net cash provided by operating activities | 28,036 | 25,315 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Capital expenditures | (1,644 | ) | (4,583 | ) | ||||
| Payments for acquisition of developed technology | (433 | ) | (344 | ) | ||||
| Other investing activities, net | 62 | 2 | ||||||
| Net cash used in investing activities | (2,015 | ) | (4,925 | ) | ||||
| FINANCING ACTIVITIES: | ||||||||
| Payments on revolving commitment | — | (68,395 | ) | |||||
| Borrowings under revolving commitment | — | 52,289 | ||||||
| Proceeds from the exercise of stock options | 194 | 458 | ||||||
| Other financing activities | (118 | ) | (119 | ) | ||||
| Net cash provided by (used in) financing activities | 76 | (15,767 | ) | |||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,113 | ) | (176 | ) | ||||
| Net increase in cash, cash equivalents and restricted cash | 23,984 | 4,447 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 223,497 | 35,685 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 247,481 | $ | 40,132 | ||||
| Supplemental disclosure of cash flow: | ||||||||
| Interest paid | $ | 15 | $ | 225 | ||||
| Income taxes paid | $ | 1,831 | $ | 2,327 | ||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Finance leases | $ | 29 | $ | 488 | ||||
| Property and equipment in accounts payable, other current liabilities
and other liabilities | $ | 382 | $ | 295 | ||||
