Condensed Consolidated Statement of Operations
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Three months ended September 30, |
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Nine months ended September 30, | ||||
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2013 |
|
2012 |
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2013 |
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2012 |
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Revenue |
$ 65,347 |
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$ 56,508 |
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$ 174,531 |
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$ 165,599 |
Cost of revenue (1) |
30,053 |
|
26,495 |
|
80,924 |
|
78,004 |
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Gross profit |
35,294 |
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30,013 |
|
93,607 |
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87,595 |
Operating expenses: |
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Research and development (1) |
12,643 |
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11,967 |
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37,246 |
|
35,553 |
Selling, general and administrative (1) |
13,891 |
|
11,955 |
|
40,941 |
|
36,088 |
Litigation expense (benefit) |
104 |
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(229) |
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(455) |
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(345) |
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Total operating expenses |
26,638 |
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23,693 |
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77,732 |
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71,296 |
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Income from operations |
8,656 |
|
6,320 |
|
15,875 |
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16,299 |
Interest and other income (expense), net |
(59) |
|
156 |
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149 |
|
621 |
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Income before income taxes |
8,597 |
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6,476 |
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16,024 |
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16,920 |
Income tax provision |
1,187 |
|
555 |
|
625 |
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1,412 |
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Net income |
$ 7,410 |
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$ 5,921 |
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$ 15,399 |
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$ 15,508 |
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Basic net income per share |
$ 0.20 |
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$ 0.17 |
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$ 0.42 |
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$ 0.45 |
Diluted net income per share |
$ 0.19 |
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$ 0.16 |
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$ 0.40 |
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$ 0.43 |
Weighted average common shares outstanding: |
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Basic |
37,910 |
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35,145 |
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37,079 |
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34,677 |
Diluted |
39,009 |
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36,438 |
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38,419 |
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36,008 |
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(1) Includes stock-based compensation expense as follows: |
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Cost of revenue |
$ 163 |
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$ 112 |
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$ 465 |
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$ 325 |
Research and development |
1,491 |
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1,465 |
|
4,557 |
|
4,255 |
Selling, general and administrative |
3,577 |
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2,605 |
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10,059 |
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6,746 |
Total stock-based compensation expense |
$ 5,231 |
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$ 4,182 |
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$ 15,081 |
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$ 11,326 |
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RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME | |||||||
(Unaudited, in thousands, except per share amounts) | |||||||
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|
Three months ended September 30, |
|
Nine months ended September 30, | ||||
|
2013 |
|
2012 |
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2013 |
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2012 |
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Net income |
$ 7,410 |
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$ 5,921 |
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$ 15,399 |
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$ 15,508 |
Net income as a percentage of revenue |
11.3% |
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10.5% |
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8.8% |
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9.4% |
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Adjustments to reconcile net income to non-GAAP net income: |
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Stock-based compensation |
$ 5,231 |
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$ 4,182 |
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$ 15,081 |
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$ 11,326 |
Deferred compensation plan expense |
9 |
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- |
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9 |
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- |
Cash award |
- |
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- |
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(266) |
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- |
Tax effect |
149 |
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(244) |
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(1,689) |
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(706) |
Non-GAAP net income |
$ 12,799 |
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$ 9,859 |
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$ 28,534 |
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$ 26,128 |
Non-GAAP net income as a percentage of revenue |
19.6% |
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17.4% |
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16.3% |
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15.8% |
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Non-GAAP earnings per share |
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Basic |
$ 0.34 |
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$ 0.28 |
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$ 0.77 |
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$ 0.75 |
Diluted |
$ 0.33 |
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$ 0.27 |
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$ 0.74 |
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$ 0.73 |
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Shares used in the calculation of non-GAAP earnings per share: |
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Basic |
37,910 |
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35,145 |
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37,079 |
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34,677 |
Diluted |
39,009 |
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36,438 |
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38,419 |
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36,008 |
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RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES | |||||||
(Unaudited, in thousands) | |||||||
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|
Three months ended September 30, |
|
Nine months ended September 30, | ||||
|
2013 |
|
2012 |
|
2013 |
|
2012 |
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Total operating expenses |
$ 26,638 |
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$ 23,693 |
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$ 77,732 |
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$ 71,296 |
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Adjustments to reconcile total operating expenses to non-GAAP total operating expenses: |
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Stock-based compensation |
$ (5,068) |
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$ (4,070) |
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$ (14,616) |
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$ (11,001) |
Deferred compensation plan expense |
(3) |
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- |
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(3) |
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- |
Non-GAAP operating expenses |
$ 21,567 |
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$ 19,623 |
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$ 63,113 |
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$ 60,295 |
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|
RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME | |||||||
(Unaudited, in thousands) | |||||||
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|
Three months ended September 30, |
|
Nine months ended September 30, | ||||
|
2013 |
|
2012 |
|
2013 |
|
2012 |
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Total operating income |
$ 8,656 |
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$ 6,320 |
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$ 15,875 |
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$ 16,299 |
Operating income as a percentage of revenue |
13.2% |
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11.2% |
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9.1% |
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9.8% |
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Adjustments to reconcile total operating income to non-GAAP total operating income: |
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Stock-based compensation |
$ 5,231 |
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$ 4,182 |
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$ 15,081 |
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$ 11,326 |
Deferred compensation plan expense |
3 |
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- |
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3 |
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- |
Non-GAAP operating income |
$ 13,890 |
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$ 10,502 |
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$ 30,959 |
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$ 27,625 |
Non-GAAP operating income as a percentage of revenue |
21.3% |
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18.6% |
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17.7% |
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16.7% |
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