Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
U.S. Dollars in thousands, except per share amounts

Three months  ended

Nine months ended

September 30

September 30

2017

2016

2017

2016

Unaudited

GAAP net income

$5,850

$3,388

$13,865

$7,899

Equity-based compensation expense included in cost of revenue

125

65

330

179

Equity-based compensation expense included in research and development expenses

991

741

2,834

2,162

Equity-based compensation expense included in sales and marketing expenses

381

179

1,040

681

Equity-based compensation expense included in general and administrative expenses

722

580

2,142

1,626

Income tax benefit related to equity-based compensation expenses

(84)

(51)

(268)

(148)

Amortization of intangible assets related to RivieraWaves transaction

309

309

927

927

Non-GAAP net income

$8,294

$5,211

$20,870

$13,326

GAAP weighted-average number of Common Stock used in computation of diluted net income per share (in thousands)

22,683

21,883

22,480

21,395

Weighted-average number of shares related to outstanding stock-based awards (in thousands)

273

267

301

354

Weighted-average number of Common Stock used in computation of diluted earnings per share, excluding the above (in thousands )

22,956

22,150

22,781

21,749

GAAP diluted net income per share

$0.26

$0.15

$0.62

$0.37

Equity-based compensation expense, net of taxes

$0.09

$0.07

$0.26

$0.20

Amortization of intangible assets related to RivieraWaves transaction

$0.01

$0.02

$0.04

$0.04

Non-GAAP diluted net income per share

$0.36

$0.24

$0. 92

$0. 61