(in thousands, except percentages and per ADS data, unaudited)
| For the Three Months Ended | ||||||||||||
| Dec. 31, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | ||||||||||
| ($) | ($) | ($) | ||||||||||
| Gross profit (GAAP) | 63,287 | 70,574 | 62,098 | |||||||||
| Gross margin (GAAP) | 46.5 | % | 50.9 | % | 50.3 | % | ||||||
| Stock-based compensation expense (A) | 167 | 80 | 246 | |||||||||
| Gross profit (non-GAAP) | 63,454 | 70,654 | 62,344 | |||||||||
| Gross margin (non-GAAP) | 46.6 | % | 51.0 | % | 50.5 | % | ||||||
| Operating expenses (GAAP) | 49,769 | 38,337 | 44,873 | |||||||||
| Stock-based compensation expense (A) | (7,887 | ) | (4,468 | ) | (12,132 | ) | ||||||
| Amortization of intangible assets | (956 | ) | (741 | ) | (741 | ) | ||||||
| Impairment loss of goodwill | (10,337 | ) | - | (625 | ) | |||||||
| Litigation expense | - | (8 | ) | (7 | ) | |||||||
| Operating expenses (non-GAAP) | 30,589 | 33,121 | 31,368 | |||||||||
| Operating profit (GAAP) | 13,518 | 32,237 | 17,225 | |||||||||
| Operating margin (GAAP) | 9.9 | % | 23.3 | % | 14.0 | % | ||||||
| Total adjustments to operating profit | 19,347 | 5,297 | 13,751 | |||||||||
| Operating profit (non-GAAP) | 32,865 | 37,534 | 30,976 | |||||||||
| Operating margin (non-GAAP) | 24.1 | % | 27.1 | % | 25.1 | % | ||||||
| Non-operating income (expense) (GAAP) | 638 | 805 | 336 | |||||||||
| Foreign exchange loss (gain), net | 447 | 749 | 9 | |||||||||
| Loss (gain) on equity-method investment | - | 98 | 169 | |||||||||
| Impairment loss of long-term investment | 120 | - | 1,242 | |||||||||
| Non-operating income (expense) (non-GAAP) | 1,205 | 1,652 | 1,756 | |||||||||
| Net income (GAAP) | 9,818 | 29,184 | 17,301 | |||||||||
| Total pre-tax impact of non-GAAP adjustments | 19,914 | 6,144 | 15,171 | |||||||||
| Income tax impact of non-GAAP adjustments | (1,320 | ) | (825 | ) | (2,273 | ) | ||||||
| Net income (non-GAAP) | 28,412 | 34,503 | 30,199 | |||||||||
| Earnings per diluted ADS (GAAP) | $0.27 | $0.81 | $0.48 | |||||||||
| Earnings per diluted ADS (non-GAAP) | $0.79 | $0.95 | $0.83 | |||||||||
| Shares used in computing earnings per diluted ADS (GAAP) | 36,005 | 36,171 | 36,070 | |||||||||
| Non-GAAP Adjustments | 169 | 147 | 293 | |||||||||
| Shares used in computing earnings per diluted ADS (non-GAAP) | 36,174 | 36,318 | 36,363 | |||||||||
| (A) Excludes stock-based compensation as follows: | ||||||||||||
| Cost of Sales | 167 | 80 | 246 | |||||||||
| Research & development | 5,131 | 2,804 | 8,380 | |||||||||
| Sales & marketing | 1,194 | 897 | 1,418 | |||||||||
| General & administrative | 1,562 | 767 | 2,334 | |||||||||
Silicon Motion Technology Corporation
