| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||
| STOCK-BASED COMPENSATION EXPENSE | ||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Cost of revenue | $ | 453 | $ | 403 | $ | 1,264 | $ | 1,217 | ||||||||
| Research and development | 3,838 | 3,986 | 11,297 | 11,001 | ||||||||||||
| Selling, general and administrative | 9,678 | 9,127 | 28,198 | 22,023 | ||||||||||||
| Total stock-based compensation expense | $ | 13,969 | $ | 13,516 | $ | 40,759 | $ | 34,241 | ||||||||
| RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME | ||||||||||||||||
| (Unaudited, in thousands, except per share amounts) | ||||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Net income | $ | 23,642 | $ | 14,373 | $ | 53,132 | $ | 36,146 | ||||||||
| Net income as a percentage of revenue | 18.3 | % | 13.5 | % | 15.6 | % | 12.7 | % | ||||||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||||||
| Stock-based compensation expense | 13,969 | 13,516 | 40,759 | 34,241 | ||||||||||||
| Amortization of acquisition-related intangible assets | 513 | 513 | 1,538 | 1,538 | ||||||||||||
| Deferred compensation plan expense (income) | (50 | ) | (70 | ) | 90 | (218 | ) | |||||||||
| Tax effect | (1,519 | ) | (823 | ) | (4,285 | ) | (2,901 | ) | ||||||||
| Non-GAAP net income | $ | 36,555 | $ | 27,509 | $ | 91,234 | $ | 68,806 | ||||||||
| Non-GAAP net income as a percentage of revenue | 28.4 | % | 25.8 | % | 26.7 | % | 24.1 | % | ||||||||
| Non-GAAP net income per share: | ||||||||||||||||
| Basic | $ | 0.88 | $ | 0.68 | $ | 2.21 | $ | 1.71 | ||||||||
| Diluted | $ | 0.84 | $ | 0.66 | $ | 2.10 | $ | 1.65 | ||||||||
| Shares used in the calculation of non-GAAP net income per share: | ||||||||||||||||
| Basic | 41,458 | 40,590 | 41,276 | 40,335 | ||||||||||||
| Diluted | 43,486 | 41,895 | 43,384 | 41,752 | ||||||||||||
