Lattice Semiconductor Corporation (NASDAQ: LSCC), a leading provider of
FPGAs, announced financial results today for the fiscal first quarter
ended March 30, 2019.
Jim Anderson, President and Chief Executive Officer, said, “We achieved
significant improvements in both gross margin and net income
sequentially and year over year. Strategies we implemented to improve
the Company’s overall operational performance delivered initial benefits
in Q1. We are still in the early stages of our planned enhancements but
are encouraged by our progress and improved results. We remain focused
on execution as we unlock additional value for the Company and its
shareholders. We look forward to sharing more details at our Financial
Analyst and Investor Day on May 20th.”
Sherri Luther, Chief Financial Officer, said, “Our first quarter results
demonstrated meaningful improvements in net income with $0.05 per
diluted share on a GAAP basis and $0.11 per diluted share on a non-GAAP
basis in Q1, compared to a net loss of $0.05 per diluted share on a GAAP
basis and net income of $0.05 per diluted share on a non-GAAP basis in
Q1 2018. Gross margin expanded to 58.8% on a GAAP basis and 58.6% on a
non-GAAP basis in Q1 driven by the initial benefits of our operational
enhancements and product mix benefit. Our continued focus on working
capital generated $21.8 million in cash from operations in Q1 2019 up
from only $2.4 million in Q1 2018. In addition, we made $25 million in
discretionary debt payments further de-levering our balance sheet. We
are pleased with our progress in Q1 and remain committed to delivering
improved operating leverage.”
Selected First Quarter 2019 Financial Results and Comparisons (in
thousands, except per share data)
GAAP — Three Months Ended | Non-GAAP — Three Months Ended | |||||||||||||||||||||||
March 30, 2019 |
December 29, 2018 |
March 31, 2018 |
March 30, 2019 |
December 29, 2018 |
March 31, 2018 |
|||||||||||||||||||
Revenue | $ | 98,091 | $ | 95,977 | $ | 98,623 | $ | 98,091 | $ | 95,977 | $ | 98,623 | ||||||||||||
Gross Margin % | 58.8 | % | 56.6 | % | 57.3 | % | 58.6 | % | 56.7 | % | 57.6 | % | ||||||||||||
Operating Expense | $ | 45,176 | $ | 56,026 | $ | 57,316 | $ | 37,985 | $ | 37,814 | $ | 45,421 | ||||||||||||
Net Income (Loss) | $ | 7,408 | $ | (7,121 | ) | $ | (5,952 | ) | $ | 14,561 | $ | 11,131 | $ | 6,118 | ||||||||||
Net Income (Loss) per share – Basic | $ | 0.06 | $ | (0.05 | ) | $ | (0.05 | ) | $ | 0.11 | $ | 0.09 | $ | 0.05 | ||||||||||
Net Income (Loss) per share – Diluted | $ | 0.05 | $ | (0.05 | ) | $ | (0.05 | ) | $ | 0.11 | $ | 0.08 | $ | 0.05 | ||||||||||
First Quarter 2019 Highlights
-
Improved Profitability: Increased net income to $0.05 per
diluted share on a GAAP basis in Q1 2019 from a net loss of $0.05 per
diluted share in Q1 2018; more than doubled net income to $0.11 per
diluted share on a non-GAAP basis in Q1 2019 from $0.05 per diluted
share in Q1 2018. -
Continued Balance Sheet De-lever: Made an additional $25
million discretionary debt payment, while continuing to reduce
leverage ratio. -
Tapeout of Next Generation FPGA Platform: Taped out the first
version of our next generation FPGA platform, which will bring
customers valuable differentiation around low power. -
New Reference Design for Video Applications: Announced
availability of the first in a series of new reference designs
featuring the popular Lattice CrossLink™ FPGA for video bridging
applications. The MIPI CSI-2 Camera Aggregator Bridge reference design
provides customers with a template combining all necessary IP and
software needed to easily add CrossLink-based video bridging solutions
to applications using multiple image sensors. -
2019 Financial Analyst and Investor Day: Lattice Semiconductor
will hold is 2019 Financial Analyst and Investor Day on Monday, May
20, 2019 at NASDAQ’s MarketSite in Times Square, New York City.
Financial analysts and institutional investors that have not already
registered to attend the event can RSVP to Investor Relations (David
Pasquale, dpasquale@globalirpartners.com
or +1.914.337.8801). Advance registration is required to comply with
NASDAQ security procedures.
Business Outlook – Second Quarter of 2019:
-
Revenue for the second quarter of 2019 is expected to be between
approximately $98 million and $102 million. -
Gross margin percentage for the second quarter of 2019 is expected to
be approximately 58.5% plus or minus 1% on a non-GAAP basis. -
Total operating expenses for the second quarter of 2019 are expected
to be between approximately $37 million and $38 million on a non-GAAP
basis.
Non-GAAP Financial Measures: In addition to financial measures
prepared in accordance with generally accepted accounting principles
(GAAP), this earnings release makes reference to non-GAAP measures. With
respect to the outlook for the second quarter of 2019, certain items
that affect GAAP measurement of financial metrics are out of the
Company’s control and/or cannot be reasonably predicted. Consequently,
the Company is unable to provide a reasonable estimate of GAAP
measurement for guidance or a corresponding reconciliation to GAAP for
the quarter. Additional information regarding the reasons the Company
uses non-GAAP measures, a reconciliation of these measures to the most
directly comparable GAAP measures, and other information relating to
these measures are included below, following the GAAP financial
information.
Investor Conference Call / Webcast Details:
Lattice Semiconductor will review the Company’s financial results for
the fiscal first quarter and business outlook on Tuesday, April 30 at
5:00 p.m. Eastern Time. The dial-in number for the live audio call is
1-888-684-5603 or 1-918-398-4852 with conference identification number
3755966. A live webcast and replay of the conference call will also be
available on the investor relations section of www.latticesemi.com.
The Company’s financial guidance will be limited to the comments on its
public quarterly earnings call and the public business outlook
statements contained in this press release.
Forward-Looking Statements Notice:
The foregoing paragraphs contain forward-looking statements that involve
estimates, assumptions, risks and uncertainties. Any statements about
our expectations, beliefs, plans, objectives, assumptions or future
events or performance are not historical facts and may be
forward-looking. Such forward-looking statements include statements
relating to: our belief that we are still in the early stages of our
planned enhancements; that we will we unlock additional value for the
Company and its shareholders; that we will deliver improved operating
leverage and the statements under the heading “Business Outlook – Second
Quarter of 2019.” Other forward-looking statements may be indicated by
words such as “will,” “could,” “should,” “would,” “may,” “expect,”
“plan,” “project,” “anticipate,” “intend,” “forecast,” “future,”
“believe,” “estimate,” “predict,” “propose,” “potential,” “continue” or
the negative of these terms or other comparable terminology. Lattice
believes the factors identified below could cause actual results to
differ materially from the forward-looking statements.
Estimates of future revenue are inherently uncertain due to such factors
as global economic conditions, which may affect customer demand, pricing
pressures, competitive actions, the demand for our Mature, Mainstream
and New products, and in particular our iCE40™ and MachXO3L™ devices,
international trade disputes and sanctions, the ability to supply
products to customers in a timely manner, changes in our distribution
relationships, or the volatility of our consumer business. Actual gross
margin percentage and operating expenses could vary from the estimates
on the basis of, among other things, changes in revenue levels, changes
in product pricing and mix, changes in wafer, assembly, test and other
costs, including commodity costs, variations in manufacturing yields,
the failure to sustain operational improvements, the actual amount of
compensation charges due to stock price changes. Any unanticipated
declines in revenue or gross margin, any unanticipated increases in our
operating expenses or unanticipated charges could adversely affect our
profitability.
In addition to the foregoing, other factors that may cause actual
results to differ materially from the forward-looking statements in this
press release include global economic uncertainty, overall semiconductor
market conditions, market acceptance and demand for our new products,
the Company’s dependencies on its silicon wafer suppliers, the impact of
competitive products and pricing, technological and product development
risks. In addition, actual results are subject to other risks and
uncertainties that relate more broadly to our overall business,
including those risks more fully described in Lattice’s filings with the
SEC including its Annual Report on Form 10-K for the fiscal year ended
December 29, 2018, and Lattice’s quarterly reports filed on Form 10-Q.
You should not unduly rely on forward-looking statements because actual
results could differ materially from those expressed in any
forward-looking statements. In addition, any forward-looking statement
applies only as of the date on which it is made. The Company does not
intend to update or revise any forward-looking statements, whether as a
result of events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
Non-GAAP Financial Measures:
Included within this press release and the accompanying tables and notes
are certain non-GAAP financial measures that supplement the Company’s
consolidated financial information prepared in accordance with U.S.
GAAP. The non-GAAP measures presented exclude charges and adjustments
primarily related to stock-based compensation, restructuring plans and
related charges, acquisition-related charges, amortization and
impairment of acquired intangible assets, inventory adjustments related
to restructured operations, and the estimated tax effect of these items.
These charges and adjustments are a result of periodic or non-core
operating activities of the Company. The Company describes these
non-GAAP financial measures and reconciles them to the most directly
comparable GAAP measures in the tables and notes attached to this press
release.
The Company’s management believes that these non-GAAP financial measures
provide an additional and useful way of viewing aspects of our
performance that, when viewed in conjunction with our GAAP results,
provide a more comprehensive understanding of the various factors and
trends affecting our ongoing financial performance and operating results
than GAAP measures alone. Management also uses these non-GAAP measures
for strategic and business decision-making, internal budgeting,
forecasting, and resource allocation processes and believes that
investors should have access to similar data.
These non-GAAP measures are included solely for informational and
comparative purposes and are not meant as a substitute for GAAP and
should be considered together with the consolidated financial
information located in the tables attached to this press release.
About Lattice Semiconductor Corporation:
Lattice Semiconductor (NASDAQ: LSCC) is a leader in low power, small
form factor programmable logic devices. Our FPGAs deliver intelligence,
connectivity, and control solutions to the industrial, compute,
communications, consumer, and automotive markets. Our unwavering
commitment to our global customers enables them to accelerate their
innovation, creating an even better and more connected world.
For more information about Lattice, please visit www.latticesemi.com.
You can also follow us via LinkedIn, Twitter, Facebook, YouTube, WeChat, Weibo or Youku.
Lattice Semiconductor Corporation | ||||||||||||
Consolidated Statements of Operations | ||||||||||||
(in thousands, except per share data) | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 30, 2019 |
December 29, 2018 |
March 31, 2018 |
||||||||||
Revenue | $ | 98,091 | $ | 95,977 | $ | 98,623 | ||||||
Costs and expenses: | ||||||||||||
Cost of sales | 40,439 | 41,671 | 42,102 | |||||||||
Research and development | 19,665 | 19,296 | 22,941 | |||||||||
Selling, general, and administrative | 20,781 | 21,168 | 27,043 | |||||||||
Amortization of acquired intangible assets | 3,389 | 3,708 | 5,636 | |||||||||
Restructuring | 1,341 | 11,854 | 1,029 | |||||||||
Acquisition related charges | — | — | 667 | |||||||||
85,615 | 97,697 | 99,418 | ||||||||||
Income (loss) from operations | 12,476 | (1,720 | ) | (795 | ) | |||||||
Interest expense | (4,987 | ) | (5,018 | ) | (5,114 | ) | ||||||
Other income (expense), net | 153 | (3 | ) | 554 | ||||||||
Income (loss) before income taxes | 7,642 | (6,741 | ) | (5,355 | ) | |||||||
Income tax expense | 234 | 380 | 597 | |||||||||
Net income (loss) | $ | 7,408 | $ | (7,121 | ) | $ | (5,952 | ) | ||||
Net income (loss) per share: | ||||||||||||
Basic | $ | 0.06 | $ | (0.05 | ) | $ | (0.05 | ) | ||||
Diluted | $ | 0.05 | $ | (0.05 | ) | $ | (0.05 | ) | ||||
Shares used in per share calculations: | ||||||||||||
Basic | 130,992 | 129,521 | 124,076 | |||||||||
Diluted | 134,810 | 129,521 | 124,076 | |||||||||
Lattice Semiconductor Corporation | |||||||
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
March 30, 2019 |
December 29, 2018 |
||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 130,391 | $ | 119,051 | |||
Short-term marketable securities | — | 9,624 | |||||
Accounts receivable, net | 55,606 | 60,890 | |||||
Inventories | 66,773 | 67,096 | |||||
Other current assets | 28,993 | 27,762 | |||||
Total current assets | 281,763 | 284,423 | |||||
Property and equipment, net | 36,758 | 34,883 | |||||
Operating lease right-of-use assets | 27,868 | — | |||||
Intangible assets, net | 17,187 | 21,325 | |||||
Goodwill | 267,514 | 267,514 | |||||
Deferred income taxes | 215 | 215 | |||||
Other long-term assets | 13,421 | 15,327 | |||||
$ | 644,726 | $ | 623,687 | ||||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable and other accrued liabilities | $ | 57,366 | $ | 61,128 | |||
Current portion of long-term debt | 7,796 | 8,290 | |||||
Current portion of operating lease liabilities | 5,027 | — | |||||
Total current liabilities | 70,189 | 69,418 | |||||
Long-term debt, net of current portion | 225,662 | 251,357 | |||||
Long-term operating lease liabilities, net of current portion | 25,376 | — | |||||
Other long-term liabilities | 42,344 | 44,455 | |||||
Total liabilities | 363,571 | 365,230 | |||||
Stockholders’ equity | 281,155 | 258,457 | |||||
$ | 644,726 | $ | 623,687 | ||||
Lattice Semiconductor Corporation | ||||||||
Consolidated Statements of Cash Flows | ||||||||
(in thousands) | ||||||||
(unaudited) | ||||||||
Three Months Ended | ||||||||
March 30, 2019 |
March 31, 2018 |
|||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 7,408 | $ | (5,952 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
||||||||
Depreciation and amortization | 8,403 | 12,356 | ||||||
Amortization of operating lease right-of-use assets | 1,487 | — | ||||||
Amortization of debt issuance costs and discount | 686 | 507 | ||||||
Gain on sale or maturity of marketable securities | (53 | ) | (1 | ) | ||||
(Gain) loss on forward contracts | (84 | ) | 99 | |||||
Stock-based compensation expense | 3,686 | 4,800 | ||||||
Impairment of operating lease right-of-use asset (recorded in Restructuring charges) |
757 | — | ||||||
Loss (gain) on disposal of fixed assets | 8 | (58 | ) | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable, net | 5,284 | (8,867 | ) | |||||
Inventories | 323 | 2,356 | ||||||
Prepaid expenses and other assets | (1,965 | ) | (3,253 | ) | ||||
Accounts payable and accrued expenses (includes restructuring) | 330 | 1,567 | ||||||
Accrued payroll obligations | (2,788 | ) | (1,441 | ) | ||||
Operating lease liabilities, current and long-term portions | (2,089 | ) | — | |||||
Income taxes payable | 365 | 413 | ||||||
Deferred licensing and services revenue | — | (68 | ) | |||||
Net cash provided by operating activities | 21,758 | 2,458 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from sales of and maturities of short-term marketable securities |
9,655 | 2,500 | ||||||
Purchases of marketable securities | — | (9,603 | ) | |||||
Capital expenditures | (3,074 | ) | (1,804 | ) | ||||
Cash paid for software licenses | (1,739 | ) | (1,837 | ) | ||||
Net cash provided by (used in) investing activities | 4,842 | (10,744 | ) | |||||
Cash flows from financing activities: | ||||||||
Restricted stock unit tax withholdings | (418 | ) | (459 | ) | ||||
Proceeds from issuance of common stock | 11,986 | 1,608 | ||||||
Repayment of debt | (26,875 | ) | (875 | ) | ||||
Net cash (used in) provided by financing activities | (15,307 | ) | 274 | |||||
Effect of exchange rate change on cash | 47 | 589 | ||||||
Net increase (decrease) in cash and cash equivalents | 11,340 | (7,423 | ) | |||||
Beginning cash and cash equivalents | 119,051 | 106,815 | ||||||
Ending cash and cash equivalents | $ | 130,391 | $ | 99,392 | ||||
Supplemental disclosure of cash flow information and non-cash investing and financing activities: |
||||||||
Interest paid | $ | 4,383 | $ | 4,420 | ||||
Operating lease payments | $ | 2,597 | $ | — | ||||
Income taxes paid, net of refunds | $ | 280 | $ | 40 | ||||
Accrued purchases of plant and equipment | $ | 1,417 | $ | 232 | ||||
Operating lease right-of-use assets obtained in exchange for lease obligations |
$ | 219 | $ | — | ||||
Change in unrealized (gain) loss related to marketable securities, net of tax, included in Accumulated other comprehensive loss |
$ | (42 | ) | $ | 7 | |||
Lattice Semiconductor Corporation | ||||||||||||
– Supplemental Historical Financial Information – | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 30, 2019 |
December 29, 2018 |
March 31, 2018 |
||||||||||
Operations and Cash Flow Information | ||||||||||||
Percent of Revenue | ||||||||||||
Gross Margin | 58.8 | % | 56.6 | % | 57.3 | % | ||||||
R&D Expense | 20.0 | % | 20.1 | % | 23.3 | % | ||||||
SG&A Expense | 21.2 | % | 22.1 | % | 27.4 | % | ||||||
Depreciation and amortization (in thousands) | $ | 8,403 | $ | 8,521 | $ | 12,356 | ||||||
Stock-based compensation expense (in thousands) | $ | 3,686 | $ | 3,738 | $ | 4,800 | ||||||
Restructuring and severance related charges (in thousands) | $ | 1,341 | $ | 11,854 | $ | 1,029 | ||||||
Net cash provided by operating activities (thousands) | $ | 21,758 | $ | 30,898 | $ | 2,458 | ||||||
Capital expenditures (in thousands) | $ | 3,074 | $ | 2,206 | $ | 1,804 | ||||||
Repayment of debt (in thousands) | $ | 26,875 | $ | 15,875 | $ | 875 | ||||||
Interest paid (in thousands) | $ | 4,383 | $ | 4,631 | $ | 4,420 | ||||||
Taxes paid (cash, in thousands) | $ | 280 | $ | 338 | $ | 40 | ||||||
Balance Sheet Information | ||||||||||||
Current Ratio | 4.0 | 4.1 | 4.2 | |||||||||
A/R Days Revenue Outstanding | 52 | 58 | 61 | |||||||||
Inventory Months | 5.0 | 4.8 | 5.6 | |||||||||
Revenue% (by Geography) | ||||||||||||
Asia | 70 | % | 74 | % | 73 | % | ||||||
Europe (incl. Africa) | 12 | % | 10 | % | 12 | % | ||||||
Americas | 18 | % | 16 | % | 15 | % | ||||||
Revenue% (by End Market) | ||||||||||||
Communications and Computing | 36 | % | 34 | % | 28 | % | ||||||
Mobile and Consumer | 20 | % | 22 | % | 27 | % | ||||||
Industrial and Automotive | 37 | % | 37 | % | 41 | % | ||||||
Licensing and Services | 7 | % | 7 | % | 4 | % | ||||||
Revenue% (by Channel) | ||||||||||||
Distribution | 79 | % | 76 | % | 87 | % | ||||||
Direct | 21 | % | 24 | % | 13 | % | ||||||
Lattice Semiconductor Corporation | ||||||||||||
– Reconciliation of U.S. GAAP to Non-GAAP Financial Measures – | ||||||||||||
(in thousands, except per share data) | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 30, 2019 |
December 29, 2018 |
March 31, 2018 |
||||||||||
Gross Margin Reconciliation | ||||||||||||
GAAP Gross margin | $ | 57,652 | $ | 54,306 | $ | 56,521 | ||||||
Inventory adjustment related to restructured operations | (338 | ) | (160 | ) | — | |||||||
Stock-based compensation – gross margin | 202 | 288 | 237 | |||||||||
Non-GAAP Gross margin | $ | 57,516 | $ | 54,434 | $ | 56,758 | ||||||
Gross Margin % Reconciliation | ||||||||||||
GAAP Gross margin % | 58.8 | % | 56.6 | % | 57.3 | % | ||||||
Cumulative effect of non-GAAP Gross Margin adjustments | (0.2 | )% | 0.1 | % | 0.3 | % | ||||||
Non-GAAP Gross margin % | 58.6 | % | 56.7 | % | 57.6 | % | ||||||
Operating Expenses Reconciliation | ||||||||||||
GAAP Operating expenses | $ | 45,176 | $ | 56,026 | $ | 57,316 | ||||||
Amortization of acquired intangible assets | (3,389 | ) | (3,708 | ) | (5,636 | ) | ||||||
Restructuring charges | (1,341 | ) | (11,854 | ) | (1,029 | ) | ||||||
Acquisition related charges (1) | — | — | (667 | ) | ||||||||
Impairment of acquired intangible assets | 1,023 | 800 | — | |||||||||
Stock-based compensation – operations | (3,484 | ) | (3,450 | ) | (4,563 | ) | ||||||
Non-GAAP Operating expenses | $ | 37,985 | $ | 37,814 | $ | 45,421 | ||||||
Income (Loss) from Operations Reconciliation | ||||||||||||
GAAP Income (loss) from operations | $ | 12,476 | $ | (1,720 | ) | $ | (795 | ) | ||||
Inventory adjustment related to restructured operations | (338 | ) | (160 | ) | — | |||||||
Stock-based compensation – gross margin | 202 | 288 | 237 | |||||||||
Amortization of acquired intangible assets | 3,389 | 3,708 | 5,636 | |||||||||
Restructuring charges | 1,341 | 11,854 | 1,029 | |||||||||
Acquisition related charges (1) | — | — | 667 | |||||||||
Impairment of acquired intangible assets | (1,023 | ) | (800 | ) | — | |||||||
Stock-based compensation – operations | 3,484 | 3,450 | 4,563 | |||||||||
Non-GAAP Income from operations | $ | 19,531 | $ | 16,620 | $ | 11,337 | ||||||
Income (Loss) from Operations % Reconciliation | ||||||||||||
GAAP Income (loss) from operations % | 12.7 | % | (1.8 | )% | (0.8 | )% | ||||||
Cumulative effect of non-GAAP Gross Margin and Operating adjustments | 7.2 | % | 19.1 | % | 12.3 | % | ||||||
Non-GAAP Income from operations % | 19.9 | % | 17.3 | % | 11.5 | % | ||||||
(1) Legal fees and outside services that were related to our proposed acquisition by Canyon Bridge Acquisition Company, Inc. |
||||||||||||
Lattice Semiconductor Corporation | ||||||||||||
– Reconciliation of U.S. GAAP to Non-GAAP Financial Measures – | ||||||||||||
(in thousands, except per share data) | ||||||||||||
(unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 30, 2019 |
December 29, 2018 |
March 31, 2018 |
||||||||||
Income Tax Expense Reconciliation | ||||||||||||
GAAP Income tax expense | $ | 234 | $ | 380 | $ | 597 | ||||||
Estimated tax effect of non-GAAP adjustments (2) | (98 | ) | 88 | 62 | ||||||||
Non-GAAP Income tax expense | $ | 136 | $ | 468 | $ | 659 | ||||||
Net Income (Loss) Reconciliation | ||||||||||||
GAAP Net income (loss) | $ | 7,408 | $ | (7,121 | ) | $ | (5,952 | ) | ||||
Inventory adjustment related to restructured operations | (338 | ) | (160 | ) | — | |||||||
Stock-based compensation – gross margin | 202 | 288 | 237 | |||||||||
Amortization of acquired intangible assets | 3,389 | 3,708 | 5,636 | |||||||||
Restructuring charges | 1,341 | 11,854 | 1,029 | |||||||||
Acquisition related charges (1) | — | — | 667 | |||||||||
Impairment of acquired intangible assets | (1,023 | ) | (800 | ) | — | |||||||
Stock-based compensation – operations | 3,484 | 3,450 | 4,563 | |||||||||
Estimated tax effect of non-GAAP adjustments (2) | 98 | (88 | ) | (62 | ) | |||||||
Non-GAAP Net income | $ | 14,561 | $ | 11,131 | $ | 6,118 | ||||||
Net Income (Loss) Per Share Reconciliation | ||||||||||||
GAAP Net income (loss) per share – basic | $ | 0.06 | $ | (0.05 | ) | $ | (0.05 | ) | ||||
Cumulative effect of Non-GAAP adjustments | 0.05 | 0.14 | 0.10 | |||||||||
Non-GAAP Net income per share – basic | $ | 0.11 | $ | 0.09 | $ | 0.05 | ||||||
GAAP Net income (loss) per share – diluted | $ | 0.05 | $ | (0.05 | ) | $ | (0.05 | ) | ||||
Cumulative effect of Non-GAAP adjustments | 0.06 | 0.13 | 0.10 | |||||||||
Non-GAAP Net income per share – diluted | $ | 0.11 | $ | 0.08 | $ | 0.05 | ||||||
Shares used in per share calculations: | ||||||||||||
Basic | 130,992 | 129,521 | 124,076 | |||||||||
Diluted – GAAP (3) | 134,810 | 129,521 | 124,076 | |||||||||
Diluted – Non-GAAP (3) | 134,810 | 132,471 | 125,144 | |||||||||
(1) Legal fees and outside services that were related to our proposed acquisition by Canyon Bridge Acquisition Company, Inc. |
||||||||||||
(2) We calculate non-GAAP tax expense by applying our tax provision model to year-to-date and projected income after adjusting |
||||||||||||
for non-GAAP items. The difference between calculated values for GAAP and non-GAAP tax expense has been included as |
||||||||||||
the “Estimated tax effect of non-GAAP adjustments.” | ||||||||||||
(3) Diluted shares are calculated using the GAAP treasury stock method. In a loss position, diluted shares equal basic shares. |
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