Exhibit 12.1
SILVER SPRING NETWORKS, INC.
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
| Six Months Ended June 30, |
Year Ended December 31, | |||||||||||||||||||||||
| 2016 | 2015 | 2014 | 2013(1) | 2012 | 2011 | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Ratio of earnings to combined fixed charges and preference dividends, if applicable |
7.0 | 46.7 | — | (2) | — | (2) | — | (2) | — | (2) | ||||||||||||||
| Deficiency of earnings to combined fixed charges and preference dividends, if applicable |
N/A | N/A | $ | (85,839 | ) | $ | (63,744 | ) | $ | (83,688 | ) | $ | (90,466 | ) | ||||||||||
| Earnings: |
||||||||||||||||||||||||
| Income (loss) before income taxes |
$ | 8,600 | $ | 83,057 | $ | (87,748 | ) | $ | (66,583 | ) | $ | (89,327 | ) | $ | (91,996 | ) | ||||||||
| Fixed charges |
1,431 | 1,816 | 1,909 | 2,839 | 5,639 | 1,530 | ||||||||||||||||||
| Adjusted Earnings (deficiency of earnings) |
$ | 10,031 | $ | 84,873 | $ | (85,839 | ) | $ | (63,744 | ) | $ | (83,688 | ) | $ | (90,466 | ) | ||||||||
| Fixed Charges: |
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| Interest expense (3) |
7 | 52 | 132 | 1,199 | 4,296 | 343 | ||||||||||||||||||
| Estimated interest component of rental expense (4) |
1,424 | 1,764 | 1,777 | 1,640 | 1,343 | 1,187 | ||||||||||||||||||
| Total Fixed Charges |
$ | 1,431 | $ | 1,816 | $ | 1,909 | $ | 2,839 | $ | 5,639 | $ | 1,530 | ||||||||||||
| Combined fixed charges and preference dividends: |
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| Interest expense (3) |
7 | 52 | 132 | 1,199 | 4,296 | 343 | ||||||||||||||||||
| Deemed dividend (1) |
— | — | — | 105,000 | — | — | ||||||||||||||||||
| Estimated interest component of rental expense (4) |
1,424 | 1,764 | 1,777 | 1,640 | 1,343 | 1,187 | ||||||||||||||||||
| Total combined fixed charges and preference dividends |
$ | 1,431 | $ | 1,816 | $ | 1,909 | $ | 107,839 | $ | 5,639 | $ | 1,530 | ||||||||||||
| (1) | We recognized a deemed dividend to convertible preferred stockholders of $105.0 million in 2013, which was the only year such a dividend was incurred. For 2013, deficiency of earnings consists of loss before income taxes and fixed charges, excluding preference dividend of $105.0 million. |
| (2) | Earnings were insufficient to cover fixed charges by approximately $87.7 million, $66.6 million, $89.3 million, and $92.0 million for the years ended December 31, 2014, 2013, 2012, and 2011, respectively; accordingly, no ratio is presented for such periods. |
| (3) | Interest expense represents interest charges from promissory notes and capital leases. |
| (4) | Represents the estimated portion of operating lease rental expense that is considered by us to be representative of interest (one-third of rent expense). |