|
Condensed Consolidated Statement of Operations
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|
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| ||||
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|
Three months ended September 30, |
|
Nine months ended September 30, | ||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ 65,347 |
|
$ 56,508 |
|
$ 174,531 |
|
$ 165,599 |
|
Cost of revenue (1) |
30,053 |
|
26,495 |
|
80,924 |
|
78,004 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
35,294 |
|
30,013 |
|
93,607 |
|
87,595 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development (1) |
12,643 |
|
11,967 |
|
37,246 |
|
35,553 |
|
Selling, general and administrative (1) |
13,891 |
|
11,955 |
|
40,941 |
|
36,088 |
|
Litigation expense (benefit) |
104 |
|
(229) |
|
(455) |
|
(345) |
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
26,638 |
|
23,693 |
|
77,732 |
|
71,296 |
|
|
|
|
|
|
|
|
|
|
Income from operations |
8,656 |
|
6,320 |
|
15,875 |
|
16,299 |
|
Interest and other income (expense), net |
(59) |
|
156 |
|
149 |
|
621 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
8,597 |
|
6,476 |
|
16,024 |
|
16,920 |
|
Income tax provision |
1,187 |
|
555 |
|
625 |
|
1,412 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ 7,410 |
|
$ 5,921 |
|
$ 15,399 |
|
$ 15,508 |
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|
|
|
|
|
|
|
|
|
Basic net income per share |
$ 0.20 |
|
$ 0.17 |
|
$ 0.42 |
|
$ 0.45 |
|
Diluted net income per share |
$ 0.19 |
|
$ 0.16 |
|
$ 0.40 |
|
$ 0.43 |
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Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
37,910 |
|
35,145 |
|
37,079 |
|
34,677 |
|
Diluted |
39,009 |
|
36,438 |
|
38,419 |
|
36,008 |
|
|
|
|
|
|
|
|
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(1) Includes stock-based compensation expense as follows: |
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|
|
|
|
|
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|
Cost of revenue |
$ 163 |
|
$ 112 |
|
$ 465 |
|
$ 325 |
|
Research and development |
1,491 |
|
1,465 |
|
4,557 |
|
4,255 |
|
Selling, general and administrative |
3,577 |
|
2,605 |
|
10,059 |
|
6,746 |
|
Total stock-based compensation expense |
$ 5,231 |
|
$ 4,182 |
|
$ 15,081 |
|
$ 11,326 |
|
|
|
|
|
|
|
|
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|
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME | |||||||
|
(Unaudited, in thousands, except per share amounts) | |||||||
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| |||||||
|
|
Three months ended September 30, |
|
Nine months ended September 30, | ||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
Net income |
$ 7,410 |
|
$ 5,921 |
|
$ 15,399 |
|
$ 15,508 |
|
Net income as a percentage of revenue |
11.3% |
|
10.5% |
|
8.8% |
|
9.4% |
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|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to non-GAAP net income: |
|
|
|
|
|
|
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|
Stock-based compensation |
$ 5,231 |
|
$ 4,182 |
|
$ 15,081 |
|
$ 11,326 |
|
Deferred compensation plan expense |
9 |
|
- |
|
9 |
|
- |
|
Cash award |
- |
|
- |
|
(266) |
|
- |
|
Tax effect |
149 |
|
(244) |
|
(1,689) |
|
(706) |
|
Non-GAAP net income |
$ 12,799 |
|
$ 9,859 |
|
$ 28,534 |
|
$ 26,128 |
|
Non-GAAP net income as a percentage of revenue |
19.6% |
|
17.4% |
|
16.3% |
|
15.8% |
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|
|
|
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|
Non-GAAP earnings per share |
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| |||
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Basic |
$ 0.34 |
|
$ 0.28 |
|
$ 0.77 |
|
$ 0.75 |
|
Diluted |
$ 0.33 |
|
$ 0.27 |
|
$ 0.74 |
|
$ 0.73 |
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|
|
|
|
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Shares used in the calculation of non-GAAP earnings per share: |
|
|
|
|
|
|
|
|
Basic |
37,910 |
|
35,145 |
|
37,079 |
|
34,677 |
|
Diluted |
39,009 |
|
36,438 |
|
38,419 |
|
36,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES | |||||||
|
(Unaudited, in thousands) | |||||||
|
| |||||||
|
|
Three months ended September 30, |
|
Nine months ended September 30, | ||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
$ 26,638 |
|
$ 23,693 |
|
$ 77,732 |
|
$ 71,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses: |
|
|
|
| |||
|
Stock-based compensation |
$ (5,068) |
|
$ (4,070) |
|
$ (14,616) |
|
$ (11,001) |
|
Deferred compensation plan expense |
(3) |
|
- |
|
(3) |
|
- |
|
Non-GAAP operating expenses |
$ 21,567 |
|
$ 19,623 |
|
$ 63,113 |
|
$ 60,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME | |||||||
|
(Unaudited, in thousands) | |||||||
|
| |||||||
|
|
Three months ended September 30, |
|
Nine months ended September 30, | ||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
Total operating income |
$ 8,656 |
|
$ 6,320 |
|
$ 15,875 |
|
$ 16,299 |
|
Operating income as a percentage of revenue |
13.2% |
|
11.2% |
|
9.1% |
|
9.8% |
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile total operating income to non-GAAP total operating income: |
|
|
|
| |||
|
Stock-based compensation |
$ 5,231 |
|
$ 4,182 |
|
$ 15,081 |
|
$ 11,326 |
|
Deferred compensation plan expense |
3 |
|
- |
|
3 |
|
- |
|
Non-GAAP operating income |
$ 13,890 |
|
$ 10,502 |
|
$ 30,959 |
|
$ 27,625 |
|
Non-GAAP operating income as a percentage of revenue |
21.3% |
|
18.6% |
|
17.7% |
|
16.7% |
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|
