Reconciliation of GAAP to Non-GAAP Financial Measures:
(Unaudited)
| Fiscal quarter ended | Three fiscal quarters ended | ||||||||||||||||||
| (In thousands, except per share data) | Dec 30, 2017 | Sep 30, 2017 | Dec 31, 2016 | Dec 30, 2017 | Dec 31, 2016 | ||||||||||||||
| Gross profit per GAAP | $ | 53,156 | $ | 26,532 | $ | 11,448 | $ | 106,108 | $ | 43,236 | |||||||||
| Purchase accounting | 242 | 242 | 229 | 735 | 686 | ||||||||||||||
| Equity compensation | 64 | 77 | 142 | 208 | 398 | ||||||||||||||
| Charges for other asset and inventory impairment | — | 6,083 | (170 | ) | 13,277 | 946 | |||||||||||||
| Charges from VAT audit | 777 | — | — | 777 | — | ||||||||||||||
| Non-GAAP gross profit | $ | 54,239 | $ | 32,934 | $ | 11,649 | $ | 121,105 | $ | 45,266 | |||||||||
| Operating expenses per GAAP | $ | 19,911 | $ | 22,084 | $ | 21,500 | $ | 64,948 | $ | 62,862 | |||||||||
| Purchase accounting | (116 | ) | (117 | ) | (210 | ) | (452 | ) | (663 | ) | |||||||||
| Equity compensation | (649 | ) | (1,253 | ) | (1,674 | ) | (3,113 | ) | (4,227 | ) | |||||||||
| Impairment of assets | — | — | 54 | — | (46 | ) | |||||||||||||
| Acquisition and integration costs | — | — | (31 | ) | — | (366 | ) | ||||||||||||
| Restructuring costs | (706 | ) | (2,162 | ) | (321 | ) | (4,079 | ) | (372 | ) | |||||||||
| Non-GAAP operating expenses | $ | 18,440 | $ | 18,552 | $ | 19,318 | $ | 57,304 | $ | 57,188 | |||||||||
| Operating income (loss) per GAAP | $ | 33,245 | $ | 4,448 | $ | (10,052 | ) | $ | 41,160 | $ | (19,626 | ) | |||||||
| Non-GAAP adjustments to gross profit | 1,083 | 6,402 | 201 | 14,997 | 2,030 | ||||||||||||||
| Non-GAAP adjustments to operating expenses | 1,471 | 3,532 | 2,182 | 7,644 | 5,674 | ||||||||||||||
| Non-GAAP operating income (loss) | $ | 35,799 | $ | 14,382 | $ | (7,669 | ) | $ | 63,801 | $ | (11,922 | ) | |||||||
| Non-operating income (expense), net per GAAP | $ | 789 | $ | (229 | ) | $ | 34 | $ | 376 | $ | 162 | ||||||||
| Gain on asset sale net of other non-operating expenses | (687 | ) | — | — | (687 | ) | — | ||||||||||||
| Acquisition-related adjustments | — | — | — | — | (190 | ) | |||||||||||||
|
Non-GAAP non-operating income
(expense) | $ | 102 | $ | (229 | ) | $ | 34 | $ | (311 | ) | $ | (28 | ) | ||||||
| Non-GAAP income (loss) before income taxes | $ | 35,901 | $ | 14,153 | $ | (7,635 | ) | $ | 63,490 | $ | (11,950 | ) | |||||||
| Net income (loss) per GAAP | $ | 33,973 | $ | 4,260 | $ | (9,693 | ) | $ | 41,135 | $ | (19,486 | ) | |||||||
| Non-GAAP adjustments to gross profit | 1,083 | 6,402 | 201 | 14,997 | 2,030 | ||||||||||||||
| Non-GAAP adjustments to operating expenses | 1,471 | 3,532 | 2,182 | 7,644 | 5,674 | ||||||||||||||
| Non-GAAP adjustments to non-operating expense | (687 | ) | — | — | (687 | ) | (190 | ) | |||||||||||
| Income tax effect of other non-GAAP adjustments | (235 | ) | (483 | ) | (248 | ) | (742 | ) | (284 | ) | |||||||||
| Non-GAAP net income (loss) | $ | 35,605 | $ | 13,711 | $ | (7,558 | ) | $ | 62,347 | $ | (12,256 | ) | |||||||
| Basic Non-GAAP net income (loss) per share | $ | 1.04 | $ | 0.40 | $ | (0.23 | ) | $ | 1.84 | $ | (0.38 | ) | |||||||
| Diluted Non-GAAP net income (loss) per share | $ | 0.99 | $ | 0.39 | $ | (0.23 | ) | $ | 1.75 | $ | (0.38 | ) | |||||||
Electro Scientific Industries, Inc.
