2014 THIRD QUARTER OUTLOOK

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited)

Three Months Ending
 September 30, 2014

Low

High

Gross margin

54.1%

55.1%

Adjustments to reconcile gross margin to non-GAAP gross margin:

    Impact of stock-based compensation expense

0.3%

0.3%

    Non-GAAP gross margin

54.4%

55.4%

RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES

(Unaudited, in thousands)

Three Months Ending
September 30, 2014

Low

High

R&D and SG&A expenses

$ 30,000

$ 31,600

Adjustments to reconcile R&D and SG&A to non-GAAP R&D and SG&A:

    Stock-based compensation expense

(7,500)

(8,100)

    Non-GAAP R&D and SG&A expenses

$ 22,500

$ 23,500