RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)
(In thousands, except per share amounts)
| Three months ended | Nine months ended | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||
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2023
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2023
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2022
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2023
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2022
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| GAAP net income (loss) | $ | (4,972 | ) | $ | 6,835 | $ | 1,385 | $ | 2,218 | $ | (3,912 | ) | |||||||
| Adjustments to reconcile GAAP net income (loss) to non-GAAP net income: | |||||||||||||||||||
| Stock-based compensation expense | 5,999 | 4,678 | 5,136 | 15,561 | 14,561 | ||||||||||||||
| Amortization of acquired technology under costs of revenues | 574 | 553 | 553 | 1,680 | 1,660 | ||||||||||||||
| Amortization of other acquired intangible assets | 328 | 326 | 318 | 979 | 945 | ||||||||||||||
| Expenses of arbitration (1) | 226 | 166 | 556 | 2,525 | 1,043 | ||||||||||||||
| Acquisition-related costs (2) | 33 | 176 | — | 209 | — | ||||||||||||||
| Proceeds from sale of previously written-off property and equipment | (105 | ) | — | — | (105 | ) | — | ||||||||||||
| Tax impact of valuation allowance for deferred tax assets and reconciling items (3) | 5,904 | (5,238 | ) | (373 | ) | (314 | ) | 1,228 | |||||||||||
| Non-GAAP net income | $ | 7,987 | $ | 7,496 | $ | 7,575 | $ | 22,753 | $ | 15,525 | |||||||||
| GAAP net income (loss) per diluted share | $ | (0.13 | ) | $ | 0.17 | $ | 0.04 | $ | 0.06 | $ | (0.10 | ) | |||||||
| Non-GAAP net income per diluted share | $ | 0.20 | $ | 0.19 | $ | 0.20 | $ | 0.58 | $ | 0.41 | |||||||||
| Weighted average common shares used in GAAP net income (loss) per diluted share calculation | 38,187 | 39,076 | 38,054 | 38,977 | 37,285 | ||||||||||||||
| Weighted average common shares used in non-GAAP net income per diluted share calculation | 38,992 | 39,076 | 38,054 | 38,977 | 38,082 | ||||||||||||||
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