Condensed Consolidated Statement of Operations

(Unaudited, in thousands, except per share amounts)  

Three months ended

June 30,

Six months ended

June 30,

2013

2012

2013

2012

Revenue 

$ 57,714

$ 58,607

$ 109,184

$ 109,091

Cost of revenue (1)

26,786

27,435

50,871

51,509

       Gross profit 

30,928

31,172

58,313

57,582

Operating expenses:

  Research and development (1)

12,478

12,468

24,601

23,586

  Selling, general and administrative (1)

13,793

12,167

27,051

24,133

  Litigation benefit

(257)

(244)

(558)

(116)

       Total operating expenses 

26,014

24,391

51,094

47,603

Income from operations 

4,914

6,781

7,219

9,979

Interest and other income, net

218

359

208

465

Income before income taxes 

5,132

7,140

7,427

10,444

Income tax provision (benefit)

(357)

548

(562)

857

Net income 

$   5,489

$   6,592

$     7,989

$     9,587

Basic net income per share 

$     0.15

$     0.19

$       0.22

$       0.28

Diluted net income per share 

$     0.14

$     0.18

$       0.21

$       0.27

Weighted average common shares outstanding:

          Basic

37,053

34,665

36,657

34,385

          Diluted

38,239

35,997

38,019

35,660

(1) Includes stock-based compensation expense as follows:

            Cost of revenue

$      146

$      118

$        302

$        213

          Research and development

1,693

1,524

3,066

2,790

          Selling, general and administrative

3,351

2,187

6,482

4,141

        Total stock-based compensation expense

$   5,190

$   3,829

$     9,850

$     7,144