| 2018 FOURTH QUARTER OUTLOOK | |||||
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN | |||||
| (Unaudited) | |||||
| Three Months Ending | |||||
| December 31, 2018 | |||||
| Low | High | ||||
| Gross margin | 55.2% | 56.2% | |||
| Adjustments to reconcile gross margin to non-GAAP gross margin: | |||||
| Stock-based compensation expense | 0.3% | 0.3% | |||
| Amortization of acquisition-related intangible assets | 0.1% | 0.1% | |||
| Non-GAAP gross margin | 55.6% | 56.6% | |||
| 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, 2018 | |||||
| Low | High | ||||
| R&D and SG&A expense | $ | 50,600 | $ | 55,600 | |
| Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense: | |||||
| Stock-based compensation expense | (13,000) | (15,000) | |||
| Non-GAAP R&D and SG&A expense | $ | 37,600 | $ | 40,600 | |
