| 2018 FIRST QUARTER OUTLOOK | ||||||||
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN | ||||||||
| (Unaudited) | ||||||||
| Three Months Ending | ||||||||
| March 31, 2018 | ||||||||
| Low | High | |||||||
| Gross margin | 54.8 | % | 55.8 | % | ||||
| Adjustments to reconcile gross margin to non-GAAP gross margin: | ||||||||
| Stock-based compensation expense | 0.3 | % | 0.3 | % | ||||
| Amortization of acquisition-related intangible assets | 0.2 | % | 0.2 | % | ||||
| Non-GAAP gross margin | 55.3 | % | 56.3 | % | ||||
| RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES | ||||||||
| (Unaudited, in thousands) | ||||||||
| Three Months Ending | ||||||||
| March 31, 2018 | ||||||||
| Low | High | |||||||
| R&D and SG&A expense | $ | 45,600 | $ | 50,600 | ||||
| Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense: | ||||||||
| Stock-based compensation expense | (13,500 | ) | (15,500 | ) | ||||
| Non-GAAP R&D and SG&A expense | $ | 32,100 | $ | 35,100 | ||||
