Full Press Release Details
EMERGENT BIOSOLUTIONS REPORTS FOURTH QUARTER 2023 FINANCIAL RESULTS
Fourth Quarter 2023 Total Revenues of $277 million, which aligned our Full Year to the mid-point of guidance
Full Year 2023 Total Revenues of $1.05 billion, which was the mid-point of guidance
Fourth Quarter 2023 Net Loss of $50 million and Adjusted EBITDA of $3 million
Issues Q1 2024 and FY 2024 guidance
GAITHERSBURG, Md., March 6, 2024-Emergent BioSolutions Inc. (NYSE EBS) today reported financial results for the quarter and year ended December 31, 2023.
Emergent has a long history of helping protect people around the world from opioid overdose emergencies and chemical, biological and radiological threats. This commitment to public health, together with Emergent's leadership, give me confidence in the long-term future of the company, said Joe Papa, President and CEO at Emergent. Emergent faces some short-term challenges, which we are addressing head on. At the same time, we are making decisions and putting strategies in place for Emergent to add value for customers, patients and investors. Emergent is a company with a bright future, and I am excited to help lead it forward.
FINANCIAL HIGHLIGHTS (1)
| ($ in millions, except per share amounts) | Q4 2023 | Q4 2022 | % Change | |||||
| Total Revenues | $ | 276.6 | $ | 330.2 | (16) | % | ||
| Net Loss | $ | (49.5) | $ | (67.0) | 26 | % | ||
| Net Loss per Diluted Share | $ | (0.95) | $ | (1.34) | 29 | % | ||
| Adjusted Net Income (Loss) (2) | $ | (40.0) | $ | 5.9 | * | |||
| Adjusted Net Income (Loss) per Diluted Share (2) | $ | (0.77) | $ | 0.11 | * | |||
| Adjusted EBITDA (2) | $ | 3.4 | $ | 44.0 | (92) | % | ||
| Total Segment Gross Margin % (2) | 31 | % | 32 | % | ||||
| Total Segment Adjusted Gross Margin % (2) | 32 | % | 48 | % | ||||
| * % change is greater than + - 100% |
Full Year 2023 vs. Full Year 2022
| ($ in millions, except per share amounts) | 2023 | 2022 | % Change | |||||
| Total Revenues | $ | 1,049.3 | $ | 1,117.5 | (6) | % | ||
| Net Loss | $ | (760.5) | $ | (211.6) | * | |||
| Net Loss per Diluted Share | $ | (14.85) | $ | (4.22) | * | |||
| Adjusted Net Loss (2) | $ | (319.0) | $ | (99.7) | * | |||
| Adjusted Net Loss per Diluted Share (2) | $ | (6.23) | $ | (1.98) | * | |||
| Adjusted EBITDA (2) | $ | (22.3) | $ | 28.8 | * | |||
| Total Segment Gross Margin % (2) | 31 | % | 36 | % | ||||
| Total Segment Adjusted Gross Margin % (2) | 33 | % | 41 | % | ||||
| * % change is greater than + - 100% |
SELECT Q4 2023 AND FULL YEAR BUSINESS UPDATES
Launched NARCAN Naloxone HCl Nasal Spray 4 mg Over-The-Counter ("OTC NARCAN "), broadening our customer base and sales channels to retail pharmacies and digital commerce websites as well as through physician-directed or standing order prescriptions at retail pharmacies, health departments, local law enforcement agencies, community-based organizations, substance abuse centers and other federal agencies
Announced U.S. Food and Drug Administration ("FDA") approval of CYFENDUS (Anthrax Vaccine Adsorbed, Adjuvanted), previously known as AV7909, a two-dose anthrax vaccine for post-exposure prophylaxis use
Awarded a $75 million option to Emergent's existing contract for the acquisition of the newly approved CYFENDUS
Awarded a 10-year contract by the Biomedical Advanced Research and Development Authority ("BARDA") for advanced development, manufacturing scale-up, and procurement of EbangaTM (ansuvimab-zykl) product, a treatment for Ebola
Awarded a $379.6 million U.S. Department of Defense contract for RSDL
The FDA closed out its inspection of the Company's Camden facility and issued a "close-out letter" of its Warning Letter issued in August 2022
Continued progress on strengthening our fundamentals with key focus on our Medical Countermeasure ("MCM") and NARCAN products
Implemented organizational and resource changes resulting in $160 million of annual savings
Amended and extended maturity of our secured credit facility to May 2025
Divested the Travel Health business valued at $380 million
FOURTH QUARTER 2023 FINANCIAL PERFORMANCE (1)
Beginning in 2023, the Company revised the categories used in discussing product service level revenues. The new categories are
NARCAN - comprises contributions from NARCAN Nasal Spray
Other Commercial Products - comprises contributions from Vaxchora and Vivotif , which we sold to Bavarian Nordic as part of our travel health business in May 2023
Anthrax MCM - comprises potential contributions from CYFENDUS , previously known as AV7909, BioThrax , Anthrasil and Raxibacumab
Smallpox MCM - comprises potential contributions from ACAM2000 , VIGIV and TEMBEXA
Other Products - comprises potential contributions from BAT , RSDL and Trobigard
Bioservices - comprises service and lease revenues from the Bioservices business
| ($ in millions) | Q4 2023 | Q4 2022 | % Change | |||||
| Product sales, net (3) | ||||||||
| NARCAN | $ | 111.0 | $ | 91.1 | 22 | % | ||
| Other Commercial Products | - | 4.9 | NM | |||||
| Anthrax MCM | 111.6 | 56.4 | 98 | % | ||||
| Smallpox MCM | 11.5 | 144.6 | (92) | % | ||||
| Other Products | 15.0 | 8.7 | 72 | % | ||||
| Total Product sales, net | $ | 249.1 | $ | 305.7 | (19) | % | ||
| Bioservices | ||||||||
| Services | $ | 20.6 | $ | 17.2 | 20 | % | ||
| Leases | 0.2 | 0.2 | - | % | ||||
| Total Bioservices revenues | $ | 20.8 | $ | 17.4 | 20 | % | ||
| Contracts and grants | $ | 6.7 | $ | 7.1 | (6) | % | ||
| Total revenues | $ | 276.6 | $ | 330.2 | (16) | % | ||
| NM - Not Meaningful |
Products Revenue, net
For Q4 2023, revenues from NARCAN (naloxone HCl) Nasal Spray increased $19.9 million, or 22%, as compared with Q4 2022. The increase was primarily driven by higher OTC NARCAN sales to U.S. public interest channels and retailers, partially offset by a decrease in sales of prescription based NARCAN due to the launch of OTC NARCAN in 2023 and the cessation of authorized generic NARCAN sales related to the termination of the Company's relationship with Sandoz.
Other Commercial Products
For Q4 2023, revenues from Other Commercial Products decreased $4.9 million as compared with Q4 2022. The decrease was driven by no sales of our Vaxchora and Vivotif products during the current year quarter, which we sold to Bavarian Nordic as part of our travel health business in May 2023.
For Q4 2023, revenues from Anthrax MCM increased $55.2 million, or 98%, as compared with Q4 2022. The increase reflects the impact of timing of sales related to CYFENDUS (Anthrax Vaccine Adsorbed, Adjuvanted), Anthrasil (Anthrax Immune
Globulin Intravenous (human)) and BioThrax (Anthrax Vaccine Adsorbed). Anthrax vaccine product sales are primarily made under annual purchase options exercised by the U.S. Government ( USG ). Fluctuations in revenues result from the timing of the exercise of annual purchase options, the timing and amount of USG purchases, the availability of governmental funding and timing of Company delivery of orders that follow.
For Q4 2023, revenues from Smallpox MCM decreased $133.1 million, or 92%, as compared with Q4 2022. The decrease was due to no current quarter sales of TEMBEXA and timing of VIGIV deliveries. Fluctuations in revenues from Smallpox MCM result from the timing of the exercise of annual purchase options in existing procurement contracts, the timing of USG purchases, the availability of governmental funding and timing of Company delivery of orders that follow.
For Q4 2023, revenues from other product sales increased $6.3 million, or 72%, as compared with Q4 2022. The increase was primarily due to higher BAT product sales, partially offset by lower sales of RSDL .
Bioservices Revenues
For Q4 2023, revenues from Bioservices services increased $3.4 million, or 20%, as compared with Q4 2022. The increase was primarily driven by resolution of a customer's outstanding obligation at our Bayview facility and increased production at our Camden facility, partially offset by a decrease in production at our Winnipeg facility. In the prior year, there was a reversal of revenue related to the halt in manufacturing under the Janssen Agreement.
For Q4 2023, revenues from Bioservices leases were consistent with Q4 2022.
Contracts and Grants
For Q4 2023, revenues from contracts and grants decreased $0.4 million, or 6%, as compared with Q4 2022. The decrease was primarily attributable to changes in the mix and timing of various development initiatives.
| ($ in millions) | Q4 2023 | Q4 2022 | % Change | |||||
| Cost of Commercial product sales | $ | 50.1 | $ | 40.2 | 25 | % | ||
| Cost of MCM product sales | 97.2 | 127.6 | (24) | % | ||||
| Cost of Bioservices | 37.8 | 52.7 | (28) | % | ||||
| Goodwill impairment | - | 6.7 | NM | |||||
| Research and development ("R D") | 29.4 | 47.0 | (37) | % | ||||
| Selling, general and administrative ("SG A") | 89.7 | 93.4 | (4) | % | ||||
| Amortization of intangible assets | 16.2 | 17.9 | (9) | % | ||||
| Total operating expenses | $ | 320.4 | $ | 385.5 | (17) | % | ||
| NM - Not Meaningful |
Cost of Commercial Product Sales
For Q4 2023, cost of Commercial product sales increased $9.9 million, or 25%, as compared with Q4 2022. The increase was primarily due to higher sales of OTC NARCAN and Branded NARCAN , partially offset by no sales of Vivotif and Vaxchora or related expenses during the current quarter due to the sale of our travel health business to Bavarian Nordic in May 2023.
Cost of MCM Product Sales
For Q4 2023, cost of MCM product sales decreased $30.4 million, or 24%, as compared with Q4 2022. The decrease was primarily due to lower sales of TEMBEXA and lower shutdown costs, partially offset by increases due to higher sales of CYFENDUS , Anthrasil and BioThrax , inventory write-offs and additional allocations of cost of goods sold to MCM Products from Bioservices.
For Q4 2023, cost of Bioservices decreased $14.9 million, or 28%, as compared with Q4 2022. The decrease was primarily due to higher allocations to MCM Product cost of goods sold and reduced production activities related to the halt in manufacturing under the Janssen Agreement at our Bayview facility, coupled with decreases in production at the Company's Camden and Winnipeg facilities.
Research and Development Expenses
For Q4 2023, R D expenses decreased $17.6 million, or 37%, as compared with Q4 2022. The decrease was primarily due to the sale of the Company's development program for CHIKV VLP to Bavarian Nordic, which was a significant contributor to prior period R D expense, as well as a decrease in funded R D across various development initiatives and reduction in related overhead costs driven by headcount reductions, partially offset by write-offs related to program terminations during the period and an increase in Ebanga and TEMBEXA funded R D.
Selling, General and Administrative Expenses
For Q4 2023, SG A expenses decreased $3.7 million, or 4%, as compared with Q4 2022. The decrease was primarily due to decreases in consulting and contracted services and decreases in compensation and other employee costs related to the restructuring initiatives taken during 2023. The decrease was partially offset by an increase in marketing expenses related to the launch of OTC NARCAN and higher professional services fees related to legal remediation services.
For Q4 2023, goodwill impairment decreased $6.7 million as compared with Q4 2022. The decrease was related to the Q4 2022 $6.7 million non-cash impairment charge to Goodwill in the Bioservices reporting unit, which reduced the reporting unit's goodwill balance to zero.
ADDITIONAL FINANCIAL INFORMATION (1)
Capital Expenditures
| ($ in millions) | Q4 2023 | Q4 2022 | % Change | |||||
| Capital expenditures | $ | 11.4 | $ | 23.6 | (52) | % | ||
| Less capital expenditures reimbursed | - | 2.5 | NM | |||||
| Net capital expenditures | $ | 11.4 | $ | 21.1 | (46) | % | ||
| Capital expenditures as a % of total revenues | 4 | % | 7 | % | ||||
| Net capital expenditures as a % of total revenues | 4 | % | 6 | % | ||||
| NM - Not Meaningful |
For Q4 2023, capital expenditures decreased largely due to lower product development activities across the Company's facilities.
In the fourth quarter of 2023, we realigned our reportable operating segments to reflect recent changes in our internal operating and reporting process. The Company now manages the business with a focus on three reportable segments (1) a Commercial Products segment consisting of our NARCAN and other commercial products which were sold as part of our travel health business in the second quarter of 2023 (2) a MCM Products segment consisting of the Anthrax - MCM, Smallpox - MCM and Other products and (3) a services segment ("Services") consisting of our Bioservices. The Company evaluates the performance of these reportable segments based on revenue and segment adjusted gross margin, which is a non-GAAP financial measure. Segment revenue includes external customer sales, but does not include inter-segment services. The Company does not allocate contracts and grants, R D, SG A, amortization of intangible assets, interest and other income (expense) or taxes to its evaluation of the performance of these segments.
FOURTH QUARTER 2023 SEGMENT RESULTS
| ($ in millions) | Commercial Products | ||||||||||
| Quarter Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 111.0 | $ | 96.0 | $ | 15.0 | 16 | % | |||
| Cost of sales | 50.1 | 40.2 | 9.9 | 25 | % | ||||||
| Gross margin ** | $ | 60.9 | $ | 55.8 | $ | 5.1 | 9 | % | |||
| Gross margin % ** | 55 | % | 58 | % | |||||||
| Segment adjusted gross margin (2) | $ | 60.9 | $ | 55.8 | $ | 5.1 | 9 | % | |||
| Segment adjusted gross margin % (2) | 55 | % | 58 | % | |||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. |
Commercial Products gross margin increased $5.1 million, or 9%, to $60.9 million in the quarter, as compared with $55.8 million in the prior year quarter. Commercial Products gross margin percentage decreased 3 percentage points to 55% for the quarter ended December 31, 2023. The decrease was primarily due to an increase in royalty expense on OTC NARCAN compared to Q4 2022, partially offset by a favorable change in product mix related to the sale of our travel health products. Commercial Products segment adjusted gross margin was consistent with gross margin.
| ($ in millions) | MCM Products | ||||||||||
| Quarter Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 138.1 | $ | 209.7 | $ | (71.6) | (34) | % | |||
| Cost of sales | 97.2 | 127.6 | (30.4) | (24) | % | ||||||
| Gross margin ** | $ | 40.9 | $ | 82.1 | $ | (41.2) | (50) | % | |||
| Gross margin % ** | 30 | % | 39 | % | |||||||
| Add back | |||||||||||
| Changes in fair value of contingent consideration | $ | 0.6 | $ | 0.2 | $ | 0.4 | * | ||||
| Inventory step-up provision | 2.0 | 51.4 | (49.4) | (96) | % | ||||||
| Restructuring costs | (1.4) | - | (1.4) | NM | |||||||
| Segment adjusted gross margin (2) | $ | 42.1 | $ | 133.7 | $ | (91.6) | (69) | % | |||
| Segment adjusted gross margin % (2) | 30 | % | 64 | % | |||||||
| * % change is greater than + - 100% | |||||||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| NM - Not Meaningful |
MCM Products gross margin decreased $41.2 million, or 50%, to $40.9 million in the quarter, as compared with $82.1 million in the prior year quarter. MCM Products gross margin percentage decreased 9 percentage points to 30% for the quarter ended December 31, 2023. The decrease was largely due to lower sales volumes and inventory write-offs, coupled with an unfavorable product revenue mix which was weighted more heavily to lower margin products compared with the prior year quarter. MCM Product segment adjusted gross margin in the current year period excludes the impact of non-cash items related to the changes in the fair value of contingent consideration of $0.6 million, the inventory step-up provision of $2.0 million and the impact of restructuring costs of $(1.4) million.
| ($ in millions) | Services | ||||||||||
| Quarter Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 20.8 | $ | 17.4 | $ | 3.4 | 20 | % | |||
| Cost of services | 37.8 | 52.7 | (14.9) | (28) | % | ||||||
| Gross margin ** | $ | (17.0) | $ | (35.3) | $ | 18.3 | 52 | % | |||
| Gross margin % ** | (82) | % | (203) | % | |||||||
| Add back | |||||||||||
| Restructuring costs | $ | 0.3 | $ | - | $ | 0.3 | NM | ||||
| Segment adjusted gross margin (2) | $ | (16.7) | $ | (35.3) | $ | 18.6 | 53 | % | |||
| Segment adjusted gross margin % (2) | (80) | % | (203) | % | |||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| NM - Not Meaningful |
Services gross margin increased $18.3 million, or 52%, to $(17.0) million in the quarter, as compared with $(35.3) million in the prior year quarter. Services gross margin percentage increased 121 percentage points to (82)% for the quarter ended December 31, 2023. The increase was primarily due to the resolution of a customer's outstanding obligation at our Bayview facility coupled with one-time costs and reserves related to the Janssen Agreement in the prior year quarter, partially offset by additional investments in quality enhancement and improvement initiatives at the Company's Camden facility and decreased production at the Company's Winnipeg facility in the current year. Services segment adjusted gross margin in the current year period excludes the impact of restructuring costs of $0.3 million.
FULL YEAR 2023 SEGMENT RESULTS
| ($ in millions) | Commercial Products | ||||||||||
| Year Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 497.3 | $ | 386.6 | $ | 110.7 | 29 | % | |||
| Cost of sales | 210.3 | 160.3 | 50.0 | 31 | % | ||||||
| Gross margin ** | $ | 287.0 | $ | 226.3 | $ | 60.7 | 27 | % | |||
| Gross margin % ** | 58 | % | 59 | % | |||||||
| Segment adjusted gross margin (2) | $ | 287.0 | $ | 226.3 | $ | 60.7 | 27 | % | |||
| Segment adjusted gross margin % (2) | 58 | % | 59 | % | |||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. |
Commercial Products gross margin increased $60.7 million, or 27%, to $287.0 million in 2023, as compared with $226.3 million in the prior year. Commercial Products gross margin percentage decreased 1 percentage point to 58% in 2023. The decrease was largely due to a decrease in the per unit selling price in response to increased competition for generic NARCAN , partially offset by a decrease in royalty expense. Commercial Products segment adjusted gross margin was consistent with gross margin.
| ($ in millions) | MCM Products | ||||||||||
| Year Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 447.2 | $ | 579.6 | $ | (132.4) | (23) | % | |||
| Cost of sales | 305.6 | 264.3 | 41.3 | 16 | % | ||||||
| Gross margin ** | $ | 141.6 | $ | 315.3 | $ | (173.7) | (55) | % | |||
| Gross margin % ** | 32 | % | 54 | % | |||||||
| Add back | |||||||||||
| Changes in fair value of contingent consideration | $ | 0.2 | $ | 2.6 | $ | (2.4) | (92) | % | |||
| Inventory step-up provision | 3.9 | 51.4 | (47.5) | (92) | % | ||||||
| Restructuring costs | 5.6 | - | 5.6 | NM | |||||||
| Segment adjusted gross margin (2) | $ | 151.3 | $ | 369.3 | $ | (218.0) | (59) | % | |||
| Segment adjusted gross margin % (2) | 34 | % | 64 | % | |||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| NM - Not Meaningful |
MCM Products gross margin decreased $173.7 million, or 55%, to $141.6 million in 2023, as compared with $315.3 million in the prior year. MCM Products gross margin percentage decreased 22 percentage points to 32% for the year ended December 31, 2023. The decrease was largely due to lower sales volumes and higher shutdown related costs and inventory write-offs, coupled with an unfavorable product revenue mix which was weighted more heavily to lower margin products compared with the prior year. MCM Product segment adjusted gross margin in 2023 excludes the impact of restructuring costs of $5.6 million, non-cash items related to the changes in the fair value of contingent consideration of $0.2 million and the inventory step-up provision of $3.9 million.
| ($ in millions) | Services | ||||||||||
| Year Ended December 31, | |||||||||||
| 2023 | 2022 | $ Change | % Change | ||||||||
| Revenues | $ | 78.5 | $ | 109.9 | $ | (31.4) | (29) | % | |||
| Cost of services | 189.5 | 268.5 | (79.0) | (29) | % | ||||||
| Gross margin ** | $ | (111.0) | $ | (158.6) | $ | 47.6 | 30 | % | |||
| Gross margin % ** | (141) | % | (144) | % | |||||||
| Add back | |||||||||||
| Restructuring costs | $ | 8.4 | $ | - | $ | 8.4 | NM | ||||
| Segment adjusted gross margin (2) | $ | (102.6) | $ | (158.6) | $ | 56.0 | 35 | % | |||
| Segment adjusted gross margin % (2) | (131) | % | (144) | % | |||||||
| ** Gross margin is calculated as revenues less cost of sales. Gross margin % is calculated as gross margin divided by revenues. | |||||||||||
| NM - Not Meaningful |
Services gross margin increased $47.6 million, or 30%, to $(111.0) million in 2023, as compared with $(158.6) million in the prior year. Services gross margin percentage increased 3 percentage points to (141)% for the year ended December 31, 2023. The increase was primarily driven by one-time costs and reserves related to the Janssen Agreement in the prior year. Services segment adjusted gross margin in 2023 excludes the impact of restructuring costs of $8.4 million.
2024 FINANCIAL FORECAST
The Company provides the following financial forecast for full year 2024 and Q1 2024, in both instances reflecting management's expectations based on the most current information available.
| ($ in millions ) METRIC | Full Year 2023 Actual | Full Year 2024 Forecast |
| Total revenues | $1,049.3 | $900 - $1,100 |
| Net loss | $(760.5) | $(183) - $(133) |
| Adjusted net loss (2) | $(319.0) | $(130) - $(80) |
| Adjusted EBITDA (2) | $(22.3) | $50 - $100 |
| Total segment adjusted gross margin % (2) | 33% | 40% - 45% |
| Segment Level Revenue (4) | ||
| Commercial Products | $497.3 | $460 - $500 |
| MCM Products | $447.2 | $340 - $490 |
| Services | $78.5 | $70 - $80 |
| ($ in millions ) METRIC | Q1 2024 Forecast |
| Total revenues | $200 - $250 |
(1) All financial information included in this release is unaudited.
(2) See "Non-GAAP Financial Measures" and the Reconciliation of Non-GAAP Financial Measures tables for the definitions and reconciliations of these non-GAAP financial measures to the most closely related GAAP financial measures.
(3) Product sales, net are reported net of variable consideration including returns, rebates, wholesaler fees and prompt pay discounts in accordance with U.S. generally accepted accounting principles.
(4) Other Commercial products, which includes Vivotif and Vaxchora , which were sold to Bavarian Nordic as part of our travel health business in May 2023, are not included in the 2024 forecast.
CONFERENCE CALL, PRESENTATION SUPPLEMENT AND WEBCAST INFORMATION
Company management will host a conference call at 5 00 pm eastern time today, March 6, 2024, to discuss these financial results. The conference call and presentation supplement can be accessed from the Company's website or through the following
Advance registration is required.
Visit https register.vevent.com register BI4568368bc7f24d88b225baf83e5fa29c to register and receive an email with the dial-in number, passcode and registrant ID.
Visit https edge.media-server.com mmc p zaanahs2.
A replay of the call can be accessed from the Emergent website.
ABOUT EMERGENT BIOSOLUTIONS INC.
NON-GAAP FINANCIAL MEASURES
In the accompanying analysis of financial information, we sometimes use information derived from consolidated and segment financial information that may not be presented in our financial statements or prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). Certain of these financial measures are considered not in conformity with GAAP ("non-GAAP financial measures") under the United States Securities and Exchange Commission ("SEC") rules. Specifically, we have referred to the following non-GAAP financial measures
Adjusted Net Income (Loss)
Adjusted Net Income (Loss) per Diluted Share
Total Segment Revenues
Total Segment Gross Margin
Total Segment Gross Margin %
Total Segment Adjusted Gross Margin
Total Segment Adjusted Gross Margin %
Segment Adjusted Gross Margin
Segment Adjusted Gross Margin %