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Rimini Street announced its financial performance for the first quarter of 2018

on March 31, 2018, the number of active users reached 1581, with a year-on-year increase of 23%

Rimini street, Inc. (NASDAQ: rmni), a leading third-party support service provider of global enterprise software products and services and Oracle and SAP products, today announced its financial performance for the first quarter as of March 31, 2018

rimini Street co-founder and CEO Seth A. Ravin said that Rimini street had made achievements in revenue, service delivery and global operations in the first quarter of 2018. We have increased our investment in sales and marketing, and invested in the development of a number of new products and service solutions that were launched in April and may. The continuous litigation between the company and Oracle has also made positive progress, including the U.S. Court of appeal overturning and revoking some resolutions, and ordering Oracle to return about $50million in funds (Oracle has paid, some of which are temporarily placed in third-party custody). Rimini street plans to recruit and hire more senior management talents, further increase sales and marketing investment, increase sales of new products and services, and improve global service delivery capacity, so as to promote growth and improve operational leverage

Tom sabol, chief financial officer of Rimini street, said that the revenue in the first quarter of fiscal 2018 was in line with our guidance and was driven by the balanced growth of all regions. The 21.5 million litigation return received by the company from Oracle in this quarter is mainly used to pay the debt generated by the credit arrangement on April 3, 2018. This has reduced the total debt level of the company and reduced the debt repayment cost in the future. In addition, we will continue to work to further reduce the cost of capital and improve free cash flow to fund investment in growth opportunities

launch of new products and service solutions

on April 24, Rimini Street announced the immediate launch of the latest products of the new solution family, Rimini Street mobility and Rimini Street analytics, which are designed to help institutions with mature and high-value enterprise software investment improve their competitive advantages. Rimini Street advanced database security is the first product of the new product family, which was released in 2017. Rimini Street's new solution enables organizations to quickly modernize their current enterprise software in a cost-effective manner and give them the latest features and functions they expect. It also allows the company's technology platform to proactively respond to unknown technological changes and help its systems withstand evolving threat environments. Rimini Street's new solution enables institutions to use existing systems to provide a solid backing for the implementation of innovative hybrid it strategies

in addition, Rimini Street announced today that it will expand its proven award-winning support model and internationalization functions of software as a service (SaaS) products, starting with salesforce sales cloud and service cloud products. The goal of the company is to help customers achieve greater success by optimizing their investment in hybrid support enterprises. Today, it includes support for traditional licensing and software as a service software enterprises. Salesforce customers can use Rimini Street's ultra responsive award-winning services to supplement and improve the core maintenance projects provided by salesforce, so as to accelerate the delivery of functions, optimize the overall operating costs, and maximize the return on investment. These new services will enable salesforce customers to benefit from Rimini Street's reliable 24X7X365 round the clock operation support, as well as the 15 minute response guarantee for urgent problems. At the same time, they also provide managed system management and setting, customization and project integration services

the company will publish a draft containing additional relevant information about new products and service solutions on the company's website

summary of performance in the first quarter of 2018

net revenue in this quarter was $59.8 million, up 22% from $49.1 million in the same period last year

the annualized subscription revenue in this quarter was $239 million, an increase of 22% over $196 million in the same period last year

as of March 31, 2018, there were 1581 active customers, up 23% from 1285 in the same period last year

the retention rate of revenue for the 12 months ended March 31, 2018 was 92.9%, compared with 93.6% in the same period last year

the gross profit margin in this quarter was 60.6%, compared with 62.6% in the same period last year, reflecting the increase in infrastructure investment and taxes, as well as the legal and regulatory results of some countries

the operating income in this quarter was $25.2 million, compared with $2.8 million in the same period last year, including Oracle's $21.3 million litigation refund. Non GAAP operating income in the quarter was $6.1 million, compared with $7.1 million in the same period last year

net income was $3.5 million, or diluted earnings per share of $0.05 (based on the weighted average value of 68.2 million shares after fully diluted outflows), net loss of $14.5 million, or diluted loss per share of $0.59 (based on the weighted average value of 24.4 million shares after fully diluted outflows). Non GAAP net loss in the quarter was $16.3 million, compared with $4.5 million in the same period last year

the cash flow from operations in this quarter was $18.7 million, compared with $6.6 million in the same period last year

adjusted EBITDA was $6.7 million, compared with $7.7 million in the same period last year

in March 2018, the U.S. Court of appeals ordered Oracle to return about $50million of funds previously paid to Oracle by Rimini Street according to court judgments, which have been overturned and revoked. In addition, on May 2, 2018, according to the agreement reached between Rimini street and Oracle, Oracle made a new remittance of $28.5 million into the court controlled third-party escrow account, which will be released after the result of the lawyer's fee retrial decision is announced. At present, we expect the U.S. District Court to make a ruling on this matter sometime in 2018

the reconciliation table of non GAAP financial indicators in this draft against the most directly comparable GAAP financial indicators has been listed in the financial tables at the end of this draft. The draft also introduces these indicators and calculation methods in the column entitled about non GAAP financial indicators and some key indicators

in the first quarter of 2018, the company's highlights

expanded the Rimini Street executive team and appointed Gregory symon as the senior vice president of global field operations. Mr. symon has worked in the enterprise technology and software sales industry for 30 years. He is a senior person in this field. He has proven successful experience in the leadership, business development and sales strategy of the sales team in plastic injection molding, including sales leadership positions at Intel, red hat and sitecore

appoint hyungwook Kevin Kim as the regional manager of South Korea. Mr. Kim brought his more than 20 years of experience in sales and sales leadership to Rimini street. He recently held the position of Senior Sales Director of Korean Oracle, and previously worked in the Sales Department of sap in Korea

since its inception, it has saved customers more than $3 billion in total maintenance costs

more than 7000 support cases have been completed in 49 countries, and the average rating of customer support delivery service satisfaction of the company has reached 4.8 points again (out of 5 points, representing Excellence)

was awarded five awards by Stevie awards for sales customer service, including customer service department of the year and customer service leader of the year

participated in 11 CIO, it and procurement leadership activities worldwide, including those held in Brazil, Japan, the Netherlands, South Korea, the United Kingdom and the United States

revenue guidance for the second quarter of 2018

the company currently expects the range of revenue guidance for the second quarter of 2018 to be about $60million to $61million

2018 annual revenue guidance

the company reconfirmed that the 2018 annual revenue guidance was about US $250million to US $270Million

broadcast and conference information

rimini Street will hold a conference and broadcast on May 10, 2018 at 5 p.m. Eastern time/2 p.m. Pacific time to discuss the performance of the first quarter of 2018. You can log in to Rimini Street investor relations station to watch the live broadcast of the meeting. Participants in the United States and Canada can listen to the conference by dialing (855) and entering a code. The investor relations column of the company station will provide broadcasting and recording after the meeting for at least 90 days

the company's use of non GAAP financial indicators

this draft contains some non GAAP financial indicators mainly due to buffer failure. Non GAAP financial indicators are not based on comprehensive accounting standards or principles. This non GAAP supplementary information is not intended to replace the operational performance indicators used for the disclosure required by GAAP. Non GAAP financial indicators should be regarded as a supplement to GAAP financial indicators, rather than a substitute or better than this indicator. The financial tables in this draft cover the comparison information between GAAP and non GAAP performance. Non GAAP financial indicators and some key indicators columns introduce and explain non GAAP financial indicators

about Rimini street, Inc.

rimini street, Inc. (nasdaq: rmni) is the world's leading provider of enterprise software products and services, and is also a major provider of third-party support services for Oracle and SAP software products (based on the number of active customers and the recognition of industry analysis companies). Since 2005, the company has redefined enterprise software support services with its award-winning innovative service program, which enables licensed enterprises of IBM, Microsoft, Oracle, sap and other software dealers to save up to 90% of the total support costs. Customers can continue to use their existing software versions for at least 15 years without any upgrade. More than 1580 global organizations in all walks of life, Fortune 500 companies, medium-sized enterprises, public utilities departments and other institutions have chosen Rimini street as their trusted third-party support provider since this year

rimini street, inc.

unaudited condensed consolidated balance sheet

(in thousands, except the amount per share)

march 31, 2018 December 31, 2017

ordinary shares, par value $0.0001. Approved 1000000 shares; As of March 31, 2018 and December 31, 2017, 59440 shares and 59314 shares have been issued and circulated respectively

the weighted average number of shares for the three months ended March 31, 2017 has been restated to reflect the reverse capital restructuring completed on October 10, 2017

about non GAAP financial indicators and some key indicators

in order to provide investors and others with more information about the performance of Rimini street, we have disclosed the following non GAAP financial indicators and some key indicators. We explain below that active customers, annual subscription revenue and revenue retention rate are important operating indicators for our business. In addition, we have disclosed the following non GAAP financial indicators: non GAAP operating income, non GAAP net loss, EBITDA and adjusted EBITDA. Rimini street has provided a comparison table between each non GAAP financial indicator used in this draft and the most directly comparable GAAP financial indicator in the above table. Since the company has made valuation allowance for deferred tax assets, the non GAAP adjustment has no tax impact. These non GAAP financial indicators are also described below

the main purpose of using non GAAP indicators is to provide supplementary information, which the management believes may be helpful to investors and enable investors to evaluate the company's performance in the way of management. Another reason we provide these non GAAP financial indicators is that we believe that these indicators

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