| 2017 FOURTH QUARTER OUTLOOK | ||||||||
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN | ||||||||
| (Unaudited) | ||||||||
| Three Months Ending | ||||||||
| December 31, 2017 | ||||||||
| Low | High | |||||||
| Gross margin | 54.4 | % | 55.4 | % | ||||
| Adjustments to reconcile gross margin to non-GAAP gross margin: | ||||||||
| Stock-based compensation expense | 0.4 | % | 0.4 | % | ||||
| Amortization of acquisition-related intangible assets | 0.4 | % | 0.4 | % | ||||
| Non-GAAP gross margin | 55.2 | % | 56.2 | % | ||||
| RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES | ||||||||
| (Unaudited, in thousands) | ||||||||
| Three Months Ending | ||||||||
| December 31, 2017 | ||||||||
| Low | High | |||||||
| R&D and SG&A expense | $ | 44,000 | $ | 48,000 | ||||
| Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense: | ||||||||
| Stock-based compensation expense | (12,500 | ) | (14,500 | ) | ||||
| Non-GAAP R&D and SG&A expense | $ | 31,500 | $ | 33,500 | ||||
