Monolithic Power Systems Announces Results for the Second Quarter Ended June 30, 2023
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Monolithic Power Systems Announces Results for the Second Quarter Ended June 30, 2023

KIRKLAND, Wash., July 31, 2023 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless company with a global footprint that provides high-performance, semiconductor-based power electronic solutions, today announced financial results for the quarter ended June 30, 2023.

The financial results for the quarter ended June 30, 2023 are as follows:

 Revenue was $441.1 million for the quarter ended June 30, 2023, a 2.2% decrease from $451.1 million for the quarter ended March 31, 2023 and a 4.3% decrease from $461.0 million for the quarter ended June 30, 2022.
   
 GAAP gross margin was 56.1% for the quarter ended June 30, 2023, compared with 58.8% for the quarter ended June 30, 2022.
   
 Non-GAAP gross margin (1) was 56.5% for the quarter ended June 30, 2023, excluding the impact of $1.2 million for stock-based compensation expense and $0.3 million for deferred compensation plan expense, compared with 59.0% for the quarter ended June 30, 2022, excluding the impact of $1.2 million for stock-based compensation expense. 
   
 GAAP operating expenses were $135.4 million for the quarter ended June 30, 2023, compared with $129.1 million for the quarter ended June 30, 2022.
   
 Non-GAAP operating expenses (1) were $96.0 million for the quarter ended June 30, 2023, excluding $36.8 million for stock-based compensation expense and $2.5 million for deferred compensation plan expense, compared with $92.7 million for the quarter ended June 30, 2022, excluding $41.7 million for stock-based compensation expense and $5.3 million for deferred compensation plan income.
   
 GAAP operating income was $112.3 million for the quarter ended June 30, 2023, compared with $141.9 million for the quarter ended June 30, 2022.
   
 Non-GAAP operating income (1) was $153.1 million for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense and $2.7 million for deferred compensation plan expense, compared with $179.4 million for the quarter ended June 30, 2022, excluding $42.9 million for stock-based compensation expense and $5.4 million for deferred compensation plan income.
   
 GAAP other income, net, was $6.5 million for the quarter ended June 30, 2023, compared with other expense, net, of $5.1 million for the quarter ended June 30, 2022.
   
 Non-GAAP other income, net (1) was $4.1 million for the quarter ended June 30, 2023, excluding $2.5 million for deferred compensation plan income, compared with non-GAAP other expense, net, of $7,000 for the quarter ended June 30, 2022, excluding $5.1 million for deferred compensation plan expense.
   
 GAAP income before income taxes was $118.9 million for the quarter ended June 30, 2023, compared with $136.8 million for the quarter ended June 30, 2022.
   
 Non-GAAP income before income taxes (1) was $157.2 million for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense and $0.3 million for net deferred compensation plan expense, compared with $179.4 million for the quarter ended June 30, 2022, excluding $42.9 million for stock-based compensation expense and $0.3 million for net deferred compensation plan income.
   
 GAAP net income was $99.5 million and $2.04 per diluted share for the quarter ended June 30, 2023. Comparatively, GAAP net income was $114.7 million and $2.37 per diluted share for the quarter ended June 30, 2022.
   
 Non-GAAP net income (1) was $137.5 million and $2.82 per diluted share for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense, $0.3 million for net deferred compensation plan expense and $0.3 million for related tax effects, compared with $157.0 million and $3.25 per diluted share for the quarter ended June 30, 2022, excluding $42.9 million for stock-based compensation expense, $0.3 million for net deferred compensation plan income and $0.3 million for related tax effects.
   

The financial results for the six months ended June 30, 2023 are as follows:

 Revenue was $892.2 million for the six months ended June 30, 2023, a 6.4% increase from $838.7 million for the six months ended June 30, 2022.
   
 GAAP gross margin was 56.8% for the six months ended June 30, 2023, compared with 58.4% for the six months ended June 30, 2022.
   
 Non-GAAP gross margin (1) was 57.1% for the six months ended June 30, 2023, excluding the impact of $2.3 million for stock-based compensation expense and $0.5 million for deferred compensation plan expense, compared with 58.7% for the six months ended June 30, 2022, excluding the impact of $2.5 million for stock-based compensation expense and $0.1 million for deferred compensation plan income.
   
 GAAP operating expenses were $269.9 million for the six months ended June 30, 2023, compared with $251.8 million for the six months ended June 30, 2022.
   
 Non-GAAP operating expenses (1) were $192.0 million for the six months ended June 30, 2023, excluding $72.7 million for stock-based compensation expense, $5.1 million for deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $179.2 million for the six months ended June 30, 2022, excluding $80.2 million for stock-based compensation expense, $7.7 million for deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
   
 GAAP operating income was $236.6 million for the six months ended June 30, 2023, compared with $238.0 million for the six months ended June 30, 2022.
   
 Non-GAAP operating income (1) was $317.2 million for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $5.5 million for deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $313.1 million for the six months ended June 30, 2022, excluding $82.7 million for stock-based compensation expense, $7.8 million for deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
   
 GAAP other income, net, was $11.8 million for the six months ended June 30, 2023, compared with other expense, net, of $5.7 million for the six months ended June 30, 2022.
   
 Non-GAAP other income, net (1) was $6.8 million for the six months ended June 30, 2023, excluding $5.0 million for deferred compensation plan income, compared with $1.6 million for the six months ended June 30, 2022, excluding $7.3 million for deferred compensation plan expense.
   
 GAAP income before income taxes was $248.4 million for the six months ended June 30, 2023, compared with $232.3 million for the six months ended June 30, 2022.
   
 Non-GAAP income before income taxes (1) was $324.0 million for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $0.5 million for net deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $314.6 million for the six months ended June 30, 2022, excluding $82.7 million for stock-based compensation expense, $0.5 million for net deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
   
 GAAP net income was $209.3 million and $4.30 per diluted share for the six months ended June 30, 2023. Comparatively, GAAP net income was $194.2 million and $4.02 per diluted share for the six months ended June 30, 2022.
   
 Non-GAAP net income (1) was $283.5 million and $5.82 per diluted share for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $0.5 million for net deferred compensation plan expense, $0.1 million for amortization of purchased intangible assets and $1.4 million for related tax effects, compared with $275.3 million and $5.70 per diluted share for the six months ended June 30, 2022, excluding $82.7 million for stock-based compensation expense, $0.5 million for net deferred compensation plan income, $0.1 million for amortization of purchased intangible assets and $1.3 million for related tax effects.
   

The following is a summary of revenue by end market (in thousands):

  Three Months Ended June 30,  Six Months Ended June 30, 
End Market 2023  2022  2023  2022 
Storage and Computing $124,543  $122,288  $244,365  $218,874 
Enterprise Data  47,982   65,199   95,145   107,708 
Automotive  104,394   61,019   209,736   115,565 
Industrial  49,729   55,865   97,198   104,403 
Communications  49,293   59,299   117,199   114,873 
Consumer  65,187   97,334   128,550   177,295 
Total $441,128  $461,004  $892,193  $838,718 


The following is a summary of revenue by product family (in thousands):

  Three Months Ended June 30,  Six Months Ended June 30, 
Product Family 2023  2022  2023  2022 
DC to DC $418,175  $442,250  $843,356  $801,099 
Lighting Control  22,953   18,754   48,837   37,619 
Total $441,128  $461,004  $892,193  $838,718 


“We continue to execute our long-term strategy,” said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’s financial targets for the third quarter ending September 30, 2023:

 Revenue in the range of $464.0 million to $484.0 million.
   
 GAAP gross margin between 55.5% and 56.1%. Non-GAAP gross margin (1) between 55.7% and 56.3%, which excludes an estimated impact of stock-based compensation expenses of 0.2%.
   
 GAAP operating expenses, between $129.4 million and $133.4 million. Non-GAAP operating expenses (1) between $96.9 million and $98.9 million, which excludes estimated stock-based compensation expenses in the range of $32.5 million to $34.5 million.
   
 Total stock-based compensation expenses of $33.5 million to $35.5 million.
   
 Interest and other income of $3.0 million to $3.4 million.
   
 Fully diluted shares outstanding between 48.6 million and 49.0 million.
   

(1) Non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income (expense), net, non-GAAP operating income and non-GAAP income before taxes differ from net income, earnings per share, gross margin, operating expenses, other income (expense), net, operating income and income before taxes determined in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). Non-GAAP net income and non-GAAP earnings per share exclude the effect of stock-based compensation expense, deferred compensation plan income/expense, amortization of purchased intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP operating expenses exclude the effect of stock-based compensation expense, amortization of purchased intangible assets and deferred compensation plan income/expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income/expense. Non-GAAP operating income excludes the effect of stock-based compensation expense, amortization of purchased intangible assets and deferred compensation plan income/expense. Non-GAAP income before taxes excludes the effect of stock-based compensation expense, amortization of purchased intangible assets and deferred compensation plan income/expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation expense. Projected non-GAAP operating expenses exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.

Earnings Webinar
MPS plans to host a Zoom webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, July 31, 2023. You can access the webinar at: https://mpsic.zoom.us/j/94201186204. The webinar will be archived and available for replay for one year under the Investor Relations page on the MPS website.

Safe Harbor Statement
This press release contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the sections “Business Outlook” and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation expenses, interest income, and fully diluted shares outstanding, (ii) our outlook for the third quarter of fiscal year 2023 and the near-term, medium-term and long-term prospects of the company, including our performance against our business plan, our ability to grow despite the softening in our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment into R&D, expected revenue growth, customers' acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements of the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued adverse changes to the global economy, including due to the Russia-Ukraine conflict and the global economic downturn; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, MPS’s products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the COVID-19 pandemic and the Russia-Ukraine conflict); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in MPS’s schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that we acquire, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which we are involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on MPS’s financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics, such as the COVID-19 pandemic, on the global economy and on our business; the risks associated with the financial market, economy and geopolitical uncertainties, including the recent banking collapse and the Russia-Ukraine conflict; and other important risk factors identified under the caption “Risk Factors” and elsewhere in MPS’s Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 24, 2023 and our Quarterly Report on Form 10-Q filed with the SEC on May 5, 2023. The forward-looking statements in this press release and statements made during the accompanying webinar represent MPS’s projections and current expectations, as of the date hereof, not predictions of actual performance. MPS assumes no obligation to update the information in this press release or in the accompanying webinar.

About Monolithic Power Systems 
Monolithic Power Systems, Inc. (“MPS”) is a fabless company with a global footprint that provides high-performance, semiconductor-based power electronic solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient and cost-effective, while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

Contact:
Bernie Blegen
Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
investors@monolithicpower.com  

 
 
Monolithic Power Systems, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value)
 
  June 30,  December 31, 
  2023  2022 
ASSETS        
Current assets:        
Cash and cash equivalents $506,959  $288,607 
Short-term investments  433,527   449,266 
Accounts receivable, net  169,180   182,714 
Inventories  427,432   447,290 
Other current assets  95,253   42,742 
Total current assets  1,632,351   1,410,619 
Property and equipment, net  341,911   357,157 
Goodwill  6,571   6,571 
Deferred tax assets, net  35,755   35,252 
Other long-term assets  204,032   249,286 
Total assets $2,220,620  $2,058,885 
         
LIABILITIES AND STOCKHOLDERS EQUITY        
Current liabilities:        
Accounts payable $70,614  $61,461 
Accrued compensation and related benefits  66,817   88,260 
Other accrued liabilities  113,410   113,679 
Total current liabilities  250,841   263,400 
Income tax liabilities  54,032   53,509 
Other long-term liabilities  76,658   73,374 
Total liabilities  381,531   390,283 
Commitments and contingencies        
Stockholders’ equity:        
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,611 and 47,107, respectively  1,055,130   975,276 
Retained earnings  827,356   716,403 
Accumulated other comprehensive loss  (43,397)  (23,077)
Total stockholders’ equity  1,839,089   1,668,602 
Total liabilities and stockholders’ equity $2,220,620  $2,058,885 
 


Monolithic Power Systems, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share amounts)
 
  Three Months Ended June 30,  Six Months Ended June 30, 
  2023  2022  2023  2022 
Revenue $441,128  $461,004  $892,193  $838,718 
Cost of revenue  193,453   190,043   385,738   348,877 
Gross profit  247,675   270,961   506,455   489,841 
Operating expenses:                
Research and development  63,688   57,131   127,397   111,234 
Selling, general and administrative  71,662   71,942   142,457   140,585 
Total operating expenses  135,350   129,073   269,854   251,819
 
Operating income  112,325   141,888   236,601   238,022
 
Other income (expense), net  6,543   (5,092)  11,840   (5,726
Income before income taxes  118,868   136,796   248,441   232,296 
Income tax expense  19,364   22,117   39,135   38,051
 
Net income $99,504  $114,679  $209,306  $194,245
 
                 
Net income per share:                
Basic $2.10  $2.46  $4.42  $4.17 
Diluted $2.04  $2.37  $4.30  $4.02 
Weighted-average shares outstanding:                
Basic  47,489   46,675   47,361   46,550 
Diluted  48,756   48,286   48,705   48,268 
                 


SUPPLEMENTAL FINANCIAL INFORMATION
STOCK-BASED COMPENSATION EXPENSE
(Unaudited, in thousands)


  Three Months Ended June 30,  Six Months Ended June 30, 
  2023  2022  2023  2022 
Cost of revenue $1,150  $1,198  $2,297  $2,505 
Research and development  9,313   9,187   17,927   17,588 
Selling, general and administrative  27,529   32,530   54,777   62,633 
Total stock-based compensation expense $37,992  $42,915  $75,001  $82,726 


         
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts)
 
  Three Months Ended June 30, Six Months Ended June 30,
   2023   2022   2023   2022 
Net income $99,504  $114,679  $209,306  $194,245 
         
Adjustments to reconcile net income to non-GAAP net income:      
Stock-based compensation expense  37,992   42,915   75,001   82,726 
Amortization of purchased intangible assets  33   33   66   66 
Deferred compensation plan expense (income), net  260   (302)  511   (475)
Tax effect  (280)  (314)  (1,367)  (1,276)
Non-GAAP net income $137,509  $157,011  $283,517  $275,286 
         
Non-GAAP net income per share:        
Basic $2.90  $3.36  $5.99  $5.91 
Diluted $2.82  $3.25  $5.82  $5.70 
         
Shares used in the calculation of non-GAAP net income per share:
Basic  47,489   46,675   47,361   46,550 
Diluted  48,756   48,286   48,705   48,268 
                 
                 
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited, in thousands)
 
  Three Months Ended June 30, Six Months Ended June 30,
   2023   2022   2023   2022 
Gross profit $247,675  $270,961  $506,455  $489,841 
Gross margin  56.1%  58.8%  56.8%  58.4%
         
Adjustments to reconcile gross profit to non-GAAP gross profit:      
Stock-based compensation expense  1,150   1,198   2,297   2,505 
Deferred compensation plan expense (income)  280   (48)  460   (51)
Non-GAAP gross profit $249,105  $272,111  $509,212  $492,295 
Non-GAAP gross margin  56.5%  59.0%  57.1%  58.7%
         
         
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
 
  Three Months Ended June 30, Six Months Ended June 30,
   2023   2022   2023   2022 
Total operating expenses $135,350  $129,073  $269,854  $251,819 
         
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:    
Stock-based compensation expense  (36,842)  (41,717)  (72,704)  (80,221)
Amortization of purchased intangible assets  (33)  (33)  (66)  (66)
Deferred compensation plan income (expense)  (2,469)  5,338   (5,073)  7,701 
Non-GAAP operating expenses $96,006  $92,661  $192,011  $179,233 
         
         
RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands)
 
  Three Months Ended June 30, Six Months Ended June 30,
   2023   2022   2023   2022 
Total operating income $112,325  $141,888  $236,601  $238,022 
         
Adjustments to reconcile total operating income to non-GAAP total operating income:    
Stock-based compensation expense  37,992   42,915   75,001   82,726 
Amortization of purchased intangible assets  33   33   66   66 
Deferred compensation plan expense (income)  2,748   (5,387)  5,533   (7,752)
Non-GAAP operating income $153,098  $179,449  $317,201  $313,062 
         
         
RECONCILIATION OF OTHER INCOME (EXPENSE), NET, TO NON-GAAP OTHER INCOME, NET
(Unaudited, in thousands)
 
  Three Months Ended June 30, Six Months Ended June 30,
   2023   2022   2023   2022 
Total other income (expense), net $6,543  $(5,092) $11,840  $(5,726)
         
Adjustments to reconcile other income (expense), net to non-GAAP other income (expense), net:    
Deferred compensation plan expense (income)  (2,488)  5,085   (5,022)  7,277 
Non-GAAP other income (expense), net $4,055  $(7) $6,818  $1,551 
         
         
RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
(Unaudited, in thousands)
 
  Three Months Ended June 30, Six Months Ended June 30,
   2023   2022   2023   2022 
Total income before income taxes $118,868  $136,796  $248,441  $232,296 
         
Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:   
Stock-based compensation expense  37,992   42,915   75,001   82,726 
Amortization of purchased intangible assets  33   33   66   66 
Deferred compensation plan expense (income), net  260   (302)  511   (475)
Non-GAAP income before income taxes $157,153  $179,442  $324,019  $314,613 
         

 

2023 THIRD QUARTER OUTLOOK
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited)


  Three Months Ending September
30, 2023
 
  Low  High 
Gross margin  55.5%  56.1%
Adjustment to reconcile gross margin to non-GAAP gross margin:        
Stock-based compensation expense  0.2%  0.2%
Non-GAAP gross margin  55.7%  56.3%


RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)


  Three Months Ending September
30, 2023
 
  Low  High 
Operating expenses $129,400  $133,400 
Adjustments to reconcile operating expenses to non-GAAP operating expenses:        
Stock-based compensation expense  (32,500)  (34,500)
Non-GAAP operating expenses $96,900  $98,900 

 


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