EZchip Semiconductor Ltd.
Reconciliation of GAAP to Non-GAAP Measures
(U.S. Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended -------------------------------------- ----------------------- December September December December December 31, 30, 31, 31, 31, 2011 2011 2010 2011 2010 ---------- ---------- ---------- ---------- ---------- GAAP gross profit $ 945 $ 14,194 $ 12,222 $ 38,513 $ 44,415 Stock-based compensation 73 73 133 359 302 Amortization of purchased technology -- -- 453 597 1,915 Repayment of OCS grants* 9,938 -- -- 9,938 -- Non-GAAP gross ---------- ---------- ---------- ---------- ---------- profit $ 10,956 $ 14,267 $ 12,808 $ 49,407 $ 46,632 ---------- ---------- ---------- ---------- ---------- GAAP gross profit as percentage of revenues 6.6% 75.9% 71.3% 60.7% 71.6% ---------- ---------- ---------- ---------- ---------- Non-GAAP gross profit as percentage of revenues 76.8% 76.3% 74.7% 77.9% 75.2% ---------- ---------- ---------- ---------- ---------- GAAP operating expenses $ 7,449 $ 7,008 $ 6,194 $ 28,754 $ 23,666 Stock-based compensation: Research and development (1,094) (1,107) (782) (4,446) (2,941) Selling, general and administrative (1,051) (1,012) (717) (3,801) (2,587) Amortization of intangible assets Selling, general and administrative (95) (95) (193) (380) (773) Non-GAAP operating ---------- ---------- ---------- ---------- ---------- expenses $ 5,209 $ 4,794 $ 4,502 $ 20,127 $ 17,365 ---------- ---------- ---------- ---------- ---------- GAAP operating income (loss) $ (6,504) $ 7,186 $ 6,028 $ 9,759 $ 20,749 Non-GAAP operating ---------- ---------- ---------- ---------- ---------- income $ 5,747 $ 9,473 $ 8,306 $ 29,280 $ 29,267 ---------- ---------- ---------- ---------- ---------- GAAP net income (loss) $ (5,953) $ 7,650 $ 4,026 $ 7,942 $ 13,643 Stock-based compensation 2,218 2,192 1,632 8,606 5,830 Amortization of purchased intangible assets 95 95 646 977 2,688 Repayment of OCS grants* 9,938 -- -- 9,938 -- Taxes on income** -- 3 2,314 3,530 8,236 Non-GAAP net ---------- ---------- ---------- ---------- ---------- income $ 6,298 $ 9,940 $ 8,618 $ 30,993 $ 30,397 ---------- ---------- ---------- ---------- ---------- Non-GAAP net income per share - Diluted $ 0.22 $ 0.35 $ 0.31 $ 1.09 $ 1.14 Non-GAAP weighted average shares - Diluted*** 28,605,559 28,577,753 27,596,018 28,432,175 26,616,453