|
PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP GROSS PROFIT MARGIN * (Figures may not sum due to rounding) (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
|
2018
|
2018
|
2017
|
2018
|
2017
| |||||||||||
| Reconciliation of GAAP and non-GAAP gross profit margin | |||||||||||||||
| GAAP gross profit margin | 52.3 | % | 49.5 | % | 48.0 | % | 51.0 | % | 52.4 | % | |||||
| Amortization of acquired intangible assets | 1.4 | % | 1.5 | % | 1.1 | % | 1.6 | % | 0.3 | % | |||||
| Inventory step-up and backlog amortization | 0.5 | % | 1.2 | % | 5.4 | % | 0.8 | % | 1.6 | % | |||||
| Stock-based compensation | 0.4 | % | 0.4 | % | 0.3 | % | 0.4 | % | 0.3 | % | |||||
| Deferred revenue fair value adjustment | 0.2 | % | — | % | 0.1 | % | 0.1 | % | — | % | |||||
| Total reconciling items included in gross profit | 2.5 | % | 3.2 | % | 6.9 | % | 2.9 | % | 2.3 | % | |||||
| Non-GAAP gross profit margin | 54.7 | % | 52.7 | % | 54.9 | % | 53.9 | % | 54.7 | % | |||||
| *Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP measures should be carefully evaluated. Please refer to "Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
| |||||||||||||||
|
PIXELWORKS, INC.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL INFORMATION * (In thousands) (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2018 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| Reconciliation of GAAP net income (loss) and adjusted EBITDA | ||||||||||||||||||||
| GAAP net income (loss) | $ | 231 | $ | (2,613 | ) | $ | (4,706 | ) | $ | (2,980 | ) | $ | (621 | ) | ||||||
| Stock-based compensation | 1,458 | 1,387 | 1,357 | 4,045 | 3,096 | |||||||||||||||
| Restructuring | 414 | 602 | 1,481 | 1,035 | 1,481 | |||||||||||||||
| Amortization of acquired intangible assets | 399 | 399 | 266 | 1,197 | 266 | |||||||||||||||
| Inventory step-up and backlog amortization | 97 | 239 | 1,016 | 458 | 1,016 | |||||||||||||||
| Deferred revenue fair value adjustment | 52 | — | 25 | 52 | 25 | |||||||||||||||
| Tax effect of non-GAAP adjustments | (181 | ) | (154 | ) | (268 | ) | (236 | ) | 157 | |||||||||||
| Gain on debt extinguishment | — | — | — | (1,272 | ) | — | ||||||||||||||
| Discount accretion on convertible debt fair value | — | — | 72 | 69 | 72 | |||||||||||||||
| Acquisition and integration | — | — | 1,611 | — | 2,505 | |||||||||||||||
| Fair value adjustment on convertible debt conversion option | — | — | 122 | — | 122 | |||||||||||||||
| Non-GAAP net income (loss) | $ | 2,470 | $ | (140 | ) | $ | 976 | $ | 2,368 | $ | 8,119 | |||||||||
| EBITDA adjustments: | ||||||||||||||||||||
| Depreciation and amortization | $ | 933 | $ | 923 | $ | 900 | $ | 2,682 | $ | 2,714 | ||||||||||
| Interest expense and other, net | 112 | 131 | 334 | 474 | 534 | |||||||||||||||
| Non-GAAP provision for income taxes | 269 | 186 | 68 | 632 | 745 | |||||||||||||||
| Adjusted EBITDA | $ | 3,784 | $ | 1,100 | $ | 2,278 | $ | 6,156 | $ | 12,112 | ||||||||||
| *Set forth above are reconciliations of the non-GAAP financial measure to the most directly comparable GAAP financial measure. The non-GAAP financial measure disclosed by the company has limitations and should not be considered a substitute for, or superior to, the financial measure prepared in accordance with GAAP, and the reconciliations from GAAP to Non-GAAP measures should be carefully evaluated. Please refer to "Non-GAAP Financial Measures” in this document for an explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-GAAP measures, and the reasons why management believes the non-GAAP measures provide useful information for investors.
| ||||||||||||||||||||
