SUPPLEMENTAL FINANCIAL INFORMATION
STOCK-BASED COMPENSATION EXPENSE
(Unaudited, in thousands)
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Cost of revenue | $ | 686 | $ | 574 | $ | 2,592 | $ | 2,409 | ||||
| Research and development | 5,367 | 4,784 | 20,033 | 19,584 | ||||||||
| Selling, general and administrative | 16,917 | 13,322 | 62,926 | 56,706 | ||||||||
| Total stock-based compensation expense | $ | 22,970 | $ | 18,680 | $ | 85,551 | $ | 78,699 | ||||
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, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net income | $ | 42,887 | $ | 32,436 | $ | 164,375 | $ | 108,839 | ||||||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||||||
| Stock-based compensation expense | 22,970 | 18,680 | 85,551 | 78,699 | ||||||||||||
| Amortization of acquisition-related intangible assets | - | - | - | 110 | ||||||||||||
| Deferred compensation plan expense | 156 | 235 | 1,057 | 189 | ||||||||||||
| Tax effect | (3,512 | ) | (2,937 | ) | (14,229 | ) | (10,128 | ) | ||||||||
| Non-GAAP net income | $ | 62,501 | $ | 48,414 | $ | 236,754 | $ | 177,709 | ||||||||
| Non-GAAP net income per share: | ||||||||||||||||
| Basic | $ | 1.38 | $ | 1.11 | $ | 5.28 | $ | 4.12 | ||||||||
| Diluted | $ | 1.31 | $ | 1.04 | $ | 5.04 | $ | 3.88 | ||||||||
| Shares used in the calculation of non-GAAP net income per share: | ||||||||||||||||
| Basic | 45,148 | 43,496 | 44,840 | 43,165 | ||||||||||||
| Diluted | 47,600 | 46,503 | 47,014 | 45,763 | ||||||||||||
