Press release

Lattice Semiconductor Reports First Quarter 2021 Results

0
Sponsored by Businesswire

Lattice Semiconductor Corporation (NASDAQ: LSCC), the low power programmable leader, announced financial results today for the fiscal first quarter ended April 3, 2021.

Jim Anderson, president and CEO, said, “We grew revenue 19% in Q1 year-over-year, along with a 52% expansion in non-GAAP net income year-over-year. Revenue from our new Lattice Nexus™ platform increased sequentially in Q1 2021, and we began production of our second Nexus device, Certus™-NX. Our recent addition to the S&P MidCap 400 Index recognizes our strong financial results, innovation and momentum. We are excited to be entering a new growth phase for the Company and look forward to providing a full business update at our Investor Day on May 11.”

Sherri Luther, CFO, said, “We drove record operating profit of 17.8% on a GAAP basis and 28.0% on a non-GAAP basis, along with gross margin expansion of 190 basis points on both a GAAP and non-GAAP basis compared to Q1 2020. We generated $29 million in cash flow from operations in the quarter and repurchased $15 million of the Company’s shares.”

Selected First Quarter 2021 Financial Results and Comparisons (in thousands, except per share data)

 

 

GAAP Financial Results (unaudited)

 

 

Q1 2021

 

 

Q4 2020

 

 

Q1 2020

 

 

Q/Q

 

Y/Y

Revenue

 

$

115,716

 

 

$

107,173

 

 

$

97,316

 

 

8.0%

 

18.9%

Gross Margin %

 

 

61.0

%

 

 

60.5

%

 

 

59.1

%

 

50 bps

 

190 bps

R&D Expense %

 

 

20.8

%

 

 

21.1

%

 

 

22.3

%

 

(30) bps

 

(150) bps

SG&A Expense %

 

 

21.7

%

 

 

22.9

%

 

 

23.2

%

 

(120) bps

 

(150) bps

Operating Expense

 

$

49,937

 

 

$

47,529

 

 

$

47,824

 

 

5.1%

 

4.4%

Operating Income

 

$

20,649

 

 

$

17,332

 

 

$

9,738

 

 

19.1%

 

112.0%

Net Income

 

$

18,813

 

 

$

15,989

 

 

$

8,167

 

 

17.7%

 

130.4%

Net Income per Share – Basic

 

$

0.14

 

 

$

0.12

 

 

$

0.06

 

 

$0.02

 

$ 0.08

Net Income per Share – Diluted

 

$

0.13

 

 

$

0.11

 

 

$

0.06

 

 

$0.02

 

$ 0.07

 

 

 

Non-GAAP* Financial Results (unaudited)

 

 

Q1 2021

 

 

Q4 2020

 

 

Q1 2020

 

 

Q/Q

 

Y/Y

Revenue

 

$

115,716

 

 

$

107,173

 

 

$

97,316

 

 

8.0%

 

18.9%

Gross Margin %

 

 

61.7

%

 

 

61.6

%

 

 

59.8

%

 

10 bps

 

190 bps

R&D Expense %

 

 

18.3

%

 

 

18.5

%

 

 

19.6

%

 

(20) bps

 

(130) bps

SG&A Expense %

 

 

15.4

%

 

 

16.5

%

 

 

17.5

%

 

(110) bps

 

(210) bps

Operating Expense

 

$

38,940

 

 

$

37,475

 

 

$

36,107

 

 

3.9%

 

7.8%

Operating Income

 

$

32,419

 

 

$

28,490

 

 

$

22,046

 

 

13.8%

 

47.1%

Net Income

 

$

30,693

 

 

$

27,540

 

 

$

20,195

 

 

11.4%

 

52.0%

Net Income per Share – Basic

 

$

0.23

 

 

$

0.20

 

 

$

0.15

 

 

$ 0.03

 

$ 0.08

Net Income per Share – Diluted

 

$

0.22

 

 

$

0.19

 

 

$

0.15

 

 

$ 0.03

 

$ 0.07

First Quarter 2021 Highlights

  • Revenue Growth: Revenue increased 19% in Q1 2021 compared to Q1 2020 and 8% in Q4 2020.
  • Profit Growth: Net income per diluted share expanded 117% on a GAAP basis and 47% on a non-GAAP basis compared to Q1 2020, with gross margin improving 190 basis points on both a GAAP and non-GAAP basis compared to Q1 2020.
  • Launched Lattice Crosslink™-NX for Automotive Applications: The new Crosslink-NX brings best-in-class low power, small form factor, high-performance I/O, and reliability to automotive applications.
  • Launched Lattice mVision™ 2.0: The latest solutions stack features multiple updates that further accelerate the design of embedded applications for industrial, automotive, and smart consumer systems.
  • Lattice Sentry™ and Lattice Supply Guard™ Win Gold: Lattice won a New Product-Service of the Year Gold Award from Cyber Security Global Excellence Awards®.
  • Lattice Joined S&P MidCap 400® Index: Lattice was added to the S&P MidCap 400® Index, effective April 20, 2021.
  • Lattice Investor Day 2021: Registration is now open to attend the virtual event on Tuesday, May 11, 2021 from 9-11 a.m. PDT / 12-2 p.m. EDT using link ir.latticesemi.com/investorday2021.

Business Outlook – Second Quarter of 2021:

  • Revenue for the second quarter of 2021 is expected to be between $116 million and $124 million.
  • Gross margin percentage for the second quarter of 2021 is expected to be 62% plus or minus 1% on a non-GAAP basis.
  • Total operating expenses for the second quarter of 2021 are expected to be between $40.5 million and $41.5 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 financial measures. With respect to the outlook for the first quarter of 2021, certain items that affect GAAP measurement of financial measures 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 2021, and business outlook on Tuesday, May 4 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 2619109. A live webcast 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, but are not limited to, statements relating to: our belief that we are entering a new growth phase for the Company; and the statements under the heading “Business Outlook – Second Quarter of 2021.” 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.

Estimates of future revenue are inherently uncertain due to such factors such as global economic conditions which may affect customer demand, pricing pressures, competitive actions, and international trade disputes and sanctions. In addition, the COVID-19 pandemic has negatively impacted the overall economy and, as a result of the foregoing, may negatively impact our operating results for future periods. 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, variations in manufacturing yields, the failure to sustain operational improvements, and the actual amount of compensation charges due to stock price changes. Actual results may differ materially from our expectations and are subject to 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 January 2, 2021, and Lattice’s quarterly reports filed on Form 10-Q. COVID-19 may increase or change the severity of our other risks reported in our Annual Report on Form 10-K for the fiscal year ended January 2, 2021. Lattice believes these and other risks and uncertainties could cause actual results to differ materially from the forward-looking statements. 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 and related tax effects, restructuring plans and related charges, amortization of acquired intangible assets, and the estimated tax effect of these items. The non-GAAP net income for the first quarter of fiscal 2021 and the fourth quarter of fiscal 2020 includes a change in the non-GAAP tax rate calculation to exclude profits from jurisdictions where there is a full valuation allowance on deferred tax assets to improve alignment of non-GAAP income tax expense to non-GAAP income before tax. 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 the low power programmable leader. We solve customer problems across the network, from the Edge to the Cloud, in the growing communications, computing, industrial, automotive, and consumer markets. Our technology, long-standing relationships, and commitment to world-class support let our customers quickly and easily unleash their innovation to create a smart, secure, and 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

 

 

 

April 3,

 

 

January 2,

 

 

March 28,

 

 

 

2021

 

 

2021

 

 

2020

 

Revenue

 

$

115,716

 

 

$

107,173

 

 

$

97,316

 

Cost of sales

 

 

45,130

 

 

 

42,312

 

 

 

39,754

 

Gross margin

 

 

70,586

 

 

 

64,861

 

 

 

57,562

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

24,066

 

 

 

22,633

 

 

 

21,693

 

Selling, general, and administrative

 

 

25,092

 

 

 

24,534

 

 

 

22,551

 

Amortization of acquired intangible assets

 

 

603

 

 

 

603

 

 

 

2,640

 

Restructuring

 

 

176

 

 

 

(241

)

 

 

940

 

Total operating expenses

 

 

49,937

 

 

 

47,529

 

 

 

47,824

 

Income from operations

 

 

20,649

 

 

 

17,332

 

 

 

9,738

 

Interest expense

 

 

(718

)

 

 

(788

)

 

 

(1,077

)

Other expense, net

 

 

(162

)

 

 

(125

)

 

 

(50

)

Income before income taxes

 

 

19,769

 

 

 

16,419

 

 

 

8,611

 

Income tax expense

 

 

956

 

 

 

430

 

 

 

444

 

Net income

 

$

18,813

 

 

$

15,989

 

 

$

8,167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.14

 

 

$

0.12

 

 

$

0.06

 

Diluted

 

$

0.13

 

 

$

0.11

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

136,401

 

 

 

136,104

 

 

 

134,253

 

Diluted

 

 

141,674

 

 

 

141,713

 

 

 

138,044

 

Lattice Semiconductor Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

April 3,

 

 

January 2,

 

 

 

2021

 

 

2021

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

185,268

 

 

$

182,332

 

Accounts receivable, net

 

 

71,090

 

 

 

64,581

 

Inventories, net

 

 

59,456

 

 

 

64,599

 

Other current assets

 

 

21,066

 

 

 

22,331

 

Total current assets

 

 

336,880

 

 

 

333,843

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

38,143

 

 

 

39,666

 

Operating lease right-of-use assets

 

 

28,006

 

 

 

22,178

 

Intangible assets, net

 

 

7,294

 

 

 

6,321

 

Goodwill

 

 

267,514

 

 

 

267,514

 

Deferred income taxes

 

 

566

 

 

 

577

 

Other long-term assets

 

 

9,181

 

 

 

9,968

 

 

 

$

687,584

 

 

$

680,067

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

27,384

 

 

$

27,530

 

Accrued expenses

 

 

24,559

 

 

 

21,411

 

Accrued payroll obligations

 

 

11,592

 

 

 

18,028

 

Current portion of long-term debt

 

 

17,144

 

 

 

12,762

 

Total current liabilities

 

 

80,679

 

 

 

79,731

 

 

 

 

 

 

 

 

 

 

Long-term debt, net of current portion

 

 

153,644

 

 

 

157,934

 

Long-term operating lease liabilities, net of current portion

 

 

23,539

 

 

 

18,906

 

Other long-term liabilities

 

 

38,137

 

 

 

39,069

 

Total liabilities

 

 

295,999

 

 

 

295,640

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

391,585

 

 

 

384,427

 

 

 

$

687,584

 

 

$

680,067

 

Lattice Semiconductor Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Three Months Ended

 

 

 

April 3,

 

 

March 28,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

18,813

 

 

$

8,167

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

10,454

 

 

 

8,728

 

Depreciation and amortization

 

 

5,901

 

 

 

7,793

 

Other non-cash adjustments

 

 

1,679

 

 

 

1,509

 

Net changes in assets and liabilities

 

 

(7,476

)

 

 

(5,094

)

Net cash provided by (used in) operating activities

 

 

29,371

 

 

 

21,103

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(1,270

)

 

 

(3,867

)

Other investing activities

 

 

(3,056

)

 

 

(2,775

)

Net cash provided by (used in) investing activities

 

 

(4,326

)

 

 

(6,642

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from long-term debt

 

 

 

 

 

50,000

 

Repayment of long-term debt

 

 

 

 

 

(4,375

)

Purchase of treasury stock

 

 

(15,002

)

 

 

 

Net cash flows related to stock compensation exercises

 

 

(6,870

)

 

 

(1,484

)

Net cash provided by (used in) financing activities

 

 

(21,872

)

 

 

44,141

 

Effect of exchange rate change on cash

 

 

(237

)

 

 

(111

)

Net increase in cash and cash equivalents

 

 

2,936

 

 

 

58,491

 

Beginning cash and cash equivalents

 

 

182,332

 

 

 

118,081

 

Ending cash and cash equivalents

 

$

185,268

 

 

$

176,572

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information and non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Interest paid

 

$

592

 

 

$

1,113

 

Income taxes paid, net of refunds

 

$

675

 

 

$

852

 

Lattice Semiconductor Corporation

Supplemental Historical Financial Information

(unaudited)

 

 

 

Three Months Ended

 

 

 

April 3,

 

 

January 2,

 

 

March 28,

 

 

 

2021

 

 

2021

 

 

2020

 

Balance Sheet Information

 

 

 

 

 

 

 

 

 

 

 

 

A/R Days Revenue Outstanding (DSO)

 

 

56

 

 

 

55

 

 

 

64

 

Inventory Days (DIO)

 

 

120

 

 

 

139

 

 

 

112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by Geography)

 

 

 

 

 

 

 

 

 

 

 

 

Asia

 

 

76

%

 

 

77

%

 

 

71

%

Americas

 

 

14

%

 

 

15

%

 

 

17

%

Europe (incl. Africa)

 

 

10

%

 

 

8

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by End Market)

 

 

 

 

 

 

 

 

 

 

 

 

Communications and Computing

 

 

43

%

 

 

43

%

 

 

39

%

Industrial and Automotive

 

 

43

%

 

 

43

%

 

 

43

%

Consumer

 

 

10

%

 

 

10

%

 

 

14

%

Licensing and Services

 

 

4

%

 

 

4

%

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue% (by Channel)

 

 

 

 

 

 

 

 

 

 

 

 

Distribution

 

 

85

%

 

 

88

%

 

 

78

%

Direct

 

 

15

%

 

 

12

%

 

 

22

%

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

April 3,

 

January 2,

 

March 28,

 

 

2021

 

2021

 

2020

 

 

 

 

Gross Margin Reconciliation

 

 

 

GAAP Gross margin

 

$

70,586

 

 

$

64,861

 

 

$

57,562

 

Stock-based compensation – gross margin (1)

 

 

773

 

 

 

1,104

 

 

 

591

 

Non-GAAP Gross margin

 

$

71,359

 

 

$

65,965

 

 

$

58,153

 

 

 

 

 

 

Gross Margin % Reconciliation

 

 

 

 

 

GAAP Gross margin %

 

61.0

%

 

 

60.5

%

 

 

59.1

%

Cumulative effect of non-GAAP Gross Margin adjustments

 

0.7

%

 

 

1.1

%

 

 

0.7

%

Non-GAAP Gross margin %

 

61.7

%

 

 

61.6

%

 

 

59.8

%

 

 

 

 

 

Research and Development Expense % (R&D Expense %) Reconciliation

 

 

 

 

 

GAAP R&D Expense %

 

20.8

%

 

 

21.1

%

 

 

22.3

%

Stock-based compensation – R&D (1)

 

(2.5

)%

 

 

(2.6

)%

 

 

(2.7

)%

Non-GAAP R&D Expense %

 

18.3

%

 

 

18.5

%

 

 

19.6

%

 

 

 

 

 

Selling, General, and Administrative Expense % (SG&A Expense %) Reconciliation

 

 

 

 

 

GAAP SG&A Expense %

 

21.7

%

 

 

22.9

%

 

 

23.2

%

Stock-based compensation – SG&A (1)

 

(6.3

)%

 

 

(6.4

)%

 

 

(5.7

)%

Non-GAAP SG&A Expense %

 

15.4

%

 

 

16.5

%

 

 

17.5

%

 

 

 

 

 

Operating Expenses Reconciliation

 

 

 

 

 

GAAP Operating expenses

$

49,937

 

 

$

47,529

 

 

$

47,824

 

Stock-based compensation – operations (1)

 

(10,218

)

 

 

(9,692

)

 

 

(8,137

)

Amortization of acquired intangible assets

 

(603

)

 

 

(603

)

 

 

(2,640

)

Restructuring charges

 

(176

)

 

 

241

 

 

 

(940

)

Non-GAAP Operating expenses

$

38,940

 

 

$

37,475

 

 

$

36,107

 

 

 

 

 

 

Income from Operations Reconciliation

 

 

 

 

 

GAAP Income from operations

$

20,649

 

 

$

17,332

 

 

$

9,738

 

Stock-based compensation – gross margin (1)

 

773

 

 

 

1,104

 

 

 

591

 

Stock-based compensation – operations (1)

 

10,218

 

 

 

9,692

 

 

 

8,137

 

Amortization of acquired intangible assets

 

603

 

 

 

603

 

 

 

2,640

 

Restructuring charges

 

176

 

 

 

(241

)

 

 

940

 

Non-GAAP Income from operations

$

32,419

 

 

$

28,490

 

 

$

22,046

 

 

 

 

 

 

Income from Operations % Reconciliation

 

 

 

 

 

GAAP Income from operations %

 

17.8

%

 

 

16.2

%

 

 

10.0

%

Cumulative effect of non-GAAP Gross Margin and Operating adjustments

 

10.2

%

 

 

10.4

%

 

 

12.7

%

Non-GAAP Income from operations %

 

28.0

%

 

 

26.6

%

 

 

22.7

%

(1)

 

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

Lattice Semiconductor Corporation

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended

 

 

 

April 3,

 

 

January 2,

 

 

March 28,

 

 

 

2021

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit) Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Income tax expense (benefit)

 

$

956

 

 

$

430

 

 

$

444

 

Estimated tax effect of non-GAAP adjustments (2)

 

 

(110

)

 

 

(393

)

 

 

280

 

Non-GAAP Income tax expense (benefit)

 

$

846

 

 

$

37

 

 

$

724

 

 

Net Income Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income

 

$

18,813

 

 

$

15,989

 

 

$

8,167

 

Stock-based compensation – gross margin (1)

 

 

773

 

 

 

1,104

 

 

 

591

 

Stock-based compensation – operations (1)

 

 

10,218

 

 

 

9,692

 

 

 

8,137

 

Amortization of acquired intangible assets

 

 

603

 

 

 

603

 

 

 

2,640

 

Restructuring charges

 

 

176

 

 

 

(241

)

 

 

940

 

Estimated tax effect of non-GAAP adjustments (2)

 

 

110

 

 

 

393

 

 

 

(280

)

Non-GAAP Net income

 

$

30,693

 

 

$

27,540

 

 

$

20,195

 

 

Net Income Per Share Reconciliation

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income per share – basic

 

$

0.14

 

 

$

0.12

 

 

$

0.06

 

Cumulative effect of Non-GAAP adjustments

 

 

0.09

 

 

 

0.08

 

 

 

0.09

 

Non-GAAP Net income per share – basic

 

$

0.23

 

 

$

0.20

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP Net income per share – diluted

 

$

0.13

 

 

$

0.11

 

 

$

0.06

 

Cumulative effect of Non-GAAP adjustments

 

 

0.09

 

 

 

0.08

 

 

 

0.09

 

Non-GAAP Net income per share – diluted

 

$

0.22

 

 

$

0.19

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculations:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

136,401

 

 

 

136,104

 

 

 

134,253

 

Diluted

 

 

141,674

 

 

 

141,713

 

 

 

138,044

 

(1)

 

The non-GAAP adjustments for Stock-based compensation include related tax expenses.

(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.”