| SUPPLEMENTAL FINANCIAL INFORMATION | ||||||||||||||||
| STOCK-BASED COMPENSATION EXPENSE | ||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Cost of revenue | $ | 707 | $ | 641 | $ | 1,906 | $ | 1,834 | ||||||||
| Research and development | 5,334 | 4,960 | 14,666 | 14,801 | ||||||||||||
| Selling, general and administrative | 16,934 | 15,699 | 46,009 | 43,384 | ||||||||||||
| Total stock-based compensation expense | $ | 22,975 | $ | 21,300 | $ | 62,581 | $ | 60,019 | ||||||||
| RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME | ||||||||||||||||
| (Unaudited, in thousands, except per share amounts) | ||||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net income | $ | 55,566 | $ | 29,528 | $ | 121,488 | $ | 76,402 | ||||||||
| Net income as a percentage of revenue | 21.4 | % | 17.5 | % | 19.9 | % | 16.6 | % | ||||||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||||||
| Stock-based compensation expense | 22,975 | 21,300 | 62,581 | 60,019 | ||||||||||||
| Amortization of acquisition-related intangible assets | - | 8 | - | 110 | ||||||||||||
| Deferred compensation plan expense (income) | 347 | (61 | ) | 901 | (46 | ) | ||||||||||
| Tax effect | 472 | (1,254 | ) | (10,717 | ) | (7,190 | ) | |||||||||
| Non-GAAP net income | $ | 79,360 | $ | 49,521 | $ | 174,253 | $ | 129,295 | ||||||||
| Non-GAAP net income as a percentage of revenue | 30.6 | % | 29.3 | % | 28.5 | % | 28.0 | % | ||||||||
| Non-GAAP net income per share: | ||||||||||||||||
| Basic | $ | 1.76 | $ | 1.14 | $ | 3.90 | $ | 3.00 | ||||||||
| Diluted | $ | 1.69 | $ | 1.08 | $ | 3.72 | $ | 2.84 | ||||||||
| Shares used in the calculation of non-GAAP net income per share: | ||||||||||||||||
| Basic | 44,970 | 43,308 | 44,737 | 43,055 | ||||||||||||
| Diluted | 46,955 | 45,833 | 46,819 | 45,516 | ||||||||||||
