| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||
| STOCK-BASED COMPENSATION EXPENSE | ||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended
December 31, |
Year Ended
December 31, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Cost of revenue | $ | 574 | $ | 504 | $ | 2,409 | $ | 1,888 | ||||||||
| Research and development | 4,784 | 3,822 | 19,584 | 15,990 | ||||||||||||
| Selling, general and administrative | 13,322 | 10,516 | 56,706 | 42,729 | ||||||||||||
| Total stock-based compensation expense | $ | 18,680 | $ | 14,842 | $ | 78,699 | $ | 60,607 | ||||||||
| RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME | ||||||||||||||||
| (Unaudited, in thousands, except per share amounts) | ||||||||||||||||
|
Three Months Ended
December 31, |
Year Ended
December 31, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net income | $ | 32,436 | $ | 27,638 | $ | 108,839 | $ | 105,268 | ||||||||
| Net income as a percentage of revenue | 19.5 | % | 18.0 | % | 17.3 | % | 18.1 | % | ||||||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||||||
| Stock-based compensation expense | 18,680 | 14,842 | 78,699 | 60,607 | ||||||||||||
| Amortization of acquisition-related intangible assets | - | 197 | 110 | 841 | ||||||||||||
| Deferred compensation plan expense | 235 | 458 | 189 | 431 | ||||||||||||
| Tax effect | (2,937 | ) | 1,432 | (10,128 | ) | (313 | ) | |||||||||
| Non-GAAP net income | $ | 48,414 | $ | 44,567 | $ | 177,709 | $ | 166,834 | ||||||||
| Non-GAAP net income as a percentage of revenue | 29.0 | % | 29.0 | % | 28.3 | % | 28.6 | % | ||||||||
| Non-GAAP net income per share: | ||||||||||||||||
| Basic | $ | 1.11 | $ | 1.05 | $ | 4.12 | $ | 3.95 | ||||||||
| Diluted | $ | 1.04 | $ | 0.99 | $ | 3.88 | $ | 3.74 | ||||||||
| Shares used in the calculation of non-GAAP net income per share: | ||||||||||||||||
| Basic | 43,496 | 42,467 | 43,165 | 42,247 | ||||||||||||
| Diluted | 46,503 | 45,058 | 45,763 | 44,602 | ||||||||||||
