PDF SOLUTIONS, INC.
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)
(In thousands, except per share amounts)
| Three months ended | Six months ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| GAAP net income (loss) | $ | 6,835 | $ | 355 | $ | (1,147 | ) | $ | 7,190 | $ | (5,297 | ) | ||||||||
| Adjustments to reconcile GAAP net income (loss) to non-GAAP net income: | ||||||||||||||||||||
| Stock-based compensation expense | 4,678 | 4,884 | 3,872 | 9,562 | 9,425 | |||||||||||||||
| Amortization of acquired technology under costs of revenues | 553 | 553 | 553 | 1,106 | 1,106 | |||||||||||||||
| Amortization of other acquired intangible assets | 326 | 325 | 314 | 651 | 628 | |||||||||||||||
| Expenses of arbitration (1) | 166 | 2,133 | 36 | 2,299 | 487 | |||||||||||||||
| Acquisition-related costs (2) | 176 | — | — | 176 | — | |||||||||||||||
| Tax impact of valuation allowance for deferred tax assets and reconciling items (3) | (5,238 | ) | (980 | ) | 664 | (6,218 | ) | 1,601 | ||||||||||||
| Non-GAAP net income | $ | 7,496 | $ | 7,270 | $ | 4,292 | $ | 14,766 | $ | 7,950 | ||||||||||
| GAAP net income (loss) per diluted share | $ | 0.17 | $ | 0.01 | $ | (0.03 | ) | $ | 0.19 | $ | (0.14 | ) | ||||||||
| Non-GAAP net income per diluted share | $ | 0.19 | $ | 0.19 | $ | 0.11 | $ | 0.38 | $ | 0.21 | ||||||||||
| Weighted average common shares used in GAAP net income (loss) per diluted share calculation | 39,076 | 38,859 | 37,028 | 38,968 | 37,316 | |||||||||||||||
| Weighted average common shares used in non-GAAP net income per diluted share calculation | 39,076 | 38,859 | 37,615 | 38,968 | 38,096 | |||||||||||||||
