Solera Holdings, Inc. Reports Third Quarter Fiscal Year 2012 Results - Page 7

PR Newswire
Tuesday, May 8th 2012

During the three months ended March 31, 2012 as compared to the three months ended March 31, 2011, the U.S. dollar strengthened against most major foreign currencies we use to transact our business. The average U.S. dollar strengthened versus the Euro by 4.1% and the Pound Sterling by 1.9%, which decreased our revenues and expenses for the three months ended March 31, 2012. A hypothetical 5% increase or decrease in the U.S. dollar versus other currencies in which we transact our business would have resulted in an increase or decrease, as the case may be, to our revenues of $6.9 million and $20.9 million during the three and nine months ended March 31, 2012, respectively.

All percentage amounts and ratios were calculated using the underlying data in whole dollars. We measure constant currency, or the effects on our results that are attributable to FX Changes, by measuring the incremental difference between translating the prior period and the current results at the monthly average rates for the same period from the prior year.

GAAP Income Tax Provision:
In the third quarter of fiscal year 2011, we recognized an income tax benefit of $35.2 million, reflecting the release of $50.7 million of the valuation allowance on our U.S. net deferred tax assets. The release of the valuation allowance resulted from our recent sustained history of operating profitability in the U.S. and Canada, and the determination by management that the future realization of the net deferred tax assets was judged to be more-likely-than-not. Additional details regarding the GAAP income tax provision will be provided in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 to be filed with the Securities and Exchange Commission by May 10, 2012.

Quarterly Dividend:
The Audit Committee of our Board of Directors approved the payment of a quarterly cash dividend of $0.10 per outstanding share of common stock and per outstanding restricted stock unit. The Audit Committee also approved a quarterly stock dividend equivalent of $0.10 per outstanding restricted stock unit granted to certain of our executive officers during fiscal years 2011 and 2012 in lieu of the cash dividend, which dividend equivalent will be paid to the restricted stock unit holders as the restricted stock unit vests. The dividends are payable on June 5, 2012 to stockholders and restricted stock unit holders of record at the close of business on May 22, 2012.