EZchip Semiconductor Ltd. Condensed Consolidated Statements of Operations (U.S. Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended -------------------------------- --------------------- September September September September 30, June 30, 30, 30, 30, 2011 2011 2010 2011 2010 -------- --------- --------- --------- --------- Revenues $ 18,703 $ 17,306 $ 16,377 $ 49,188 $ 44,862 Cost of revenues 4,509 3,535 3,833 11,023 11,207 Amortization of purchased technology -- 298 471 597 1,462 -------- ---------- ---------- -------- -------- 14,194 13,473 12,073 37,568 32,193 Gross profit Operating expenses: Research and development, net 4,052 3,892 3,177 12,343 10,088 Selling, general and administrative 2,956 3,062 2,651 8,962 7,384 --------- -------- --------- -------- -------- Total operating expenses 7,008 6,954 5,828 21,305 17,472 --------- -------- --------- -------- -------- Operating 7,186 6,519 6,245 16,263 14,721 income Financial income, net 467 369 299 1,162 818 --------- -------- --------- -------- -------- Income before taxes 7,653 6,888 6,544 17,425 15,539 Taxes on 3 2,116 2,043 3,530 5,922 --------- -------- --------- -------- -------- income Net income $ 7,650 $ 4,772 $ 4,501 $ 13,895 $ 9,617 ========= ======== ========= ======== ======== Net income per share: Basic $ 0.28 $ 0.18 $ 0.18 $ 0.52 $ 0.38 Diluted $ 0.27 $ 0.17 $ 0.17 $ 0.50 $ 0.37 Weighted average shares used in per share calculation: Basic 26,900,439 26,600,650 25,421,522 26,569,283 25,080,837 Diluted 28,046,688 27,911,054 26,524,702 27,912,322 25,810,870 ----------- ---------- ----------- ---------- ----------
EZchip Semiconductor Ltd. Reconciliation of GAAP to Non-GAAP Measures (U.S. Dollars in thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended ------------------------------ -------------------- September June September September September 30, 30, 30, 30, 30, 2011 2011 2010 2011 2010 ----------- ------- ---------- --------- --------- GAAP gross profit $ 14,194 $ 13,473 $ 12,073 $ 37,568 $ 32,193 Stock-based compensation 73 73 58 286 169 Amortization of purchased technology -- 298 471 597 1,462 --------- -------- --------- -------- -------- Non-GAAP gross profit $ 14,267 $ 13,844 $ 12,602 $ 38,451 $ 33,824 --------- -------- --------- -------- -------- GAAP gross profit as percentage of revenues 75.9% 77.9% 73.7% 76.4% 71.8% --------- -------- --------- -------- -------- Non-GAAP gross profit as percentage of revenues 76.3% 80.0% 76.9% 78.2% 75.4% --------- -------- --------- -------- -------- GAAP operating expenses $ 7,008 $ 6,954 $ 5,828 $ 21,305 $ 17,472 Stock-based compensation: Research and development (1,107) (1,119) (754) (3,352) (2,159) Selling, general and administrative (1,012) (908) (677) (2,750) (1,870) Amortization of intangible assets Selling, general and administrative (95) (95) (194) (285) (580) --------- -------- --------- -------- -------- Non-GAAP operating expenses $ 4,794 $ 4,832 $ 4,203 $ 14,918 $ 12,863 --------- -------- --------- -------- -------- GAAP operating income $ 7,186 $ 6,519 $ 6,245 $ 16,263 $ 14,721 --------- -------- --------- -------- -------- Non-GAAP operating income $ 9,473 $ 9,012 $ 8,399 $ 23,533 $ 20,961 --------- -------- --------- -------- -------- GAAP net income $ 7,650 $ 4,772 $ 4,501 $ 13,895 $ 9,617 Stock-based compensation 2,192 2,100 1,489 6,388 4,198 Amortization of purchased intangible assets 95 393 665 882 2,042 Taxes on income* 3 2,116 2,043 3,530 5,922 --------- -------- --------- -------- -------- Non-GAAP net income $ 9,940 $ 9,381 $ 8,698 $ 24,695 $ 21,779 --------- -------- --------- -------- -------- Non-GAAP net income per share - Diluted $ 0.35 $ 0.33 $ 0.32 $ 0.87 $ 0.82 Non-GAA weighted average shares - Diluted** 28,577,753 28,455,818 27,130,452 28,381,465 26,427,024