2Assumes all outstanding ordinary shares are represented by ADSs. Each ADS represents four ordinary shares.
| Silicon Motion Technology Corporation
Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except percentages and per ADS data, unaudited) | ||||||||||
| For the Three Months Ended | ||||||||||
|
Dec. 31
,
2016 ($) |
Sep. 30
,
2017 ($) |
Dec. 31
,
2017 ($) | ||||||||
| Gross profit (GAAP) | 72,118 | 58,470 | 63,287 | |||||||
| Gross margin (GAAP) | 50.0 | % | 46.0 | % | 46.5 | % | ||||
| Stock-based compensation expense (A) | 199 | 58 | 167 | |||||||
| Gross profit (non-GAAP) | 72,317 | 58,528 | 63,454 | |||||||
| Gross margin (non-GAAP) | 50.2 | % | 46.0 | % | 46.6 | % | ||||
| Operating expenses (GAAP) | 37,263 | 36,893 | 49,691 | |||||||
| Stock-based compensation expense (A) | (8,228 | ) | (3,263 | ) | (7,887 | ) | ||||
| Amortization of intangible assets | (526 | ) | (526 | ) | (878 | ) | ||||
| Impairment loss of goodwill | - | - | (10,337 | ) | ||||||
| Litigation expense | (2 | ) | - | - | ||||||
| Operating expenses (non-GAAP) | 28,507 | 33,104 | 30,589 | |||||||
| Operating profit (GAAP) | 34,855 | 21,577 | 13,596 | |||||||
| Operating margin (GAAP) | 24.2 | % | 17.0 | % | 10.0 | % | ||||
| Total adjustments to operating profit | 8,955 | 3,847 | 19,269 | |||||||
| Operating profit (non-GAAP) | 43,810 | 25,424 | 32,865 | |||||||
| Operating margin (non-GAAP) | 30.4 | % | 20.0 | % | 24.1 | % | ||||
| Non-operating income (expense) (GAAP) | 718 | 1,726 | 638 | |||||||
| Foreign exchange loss (gain), net | (112 | ) | (701 | ) | 447 | |||||
| Impairment of long-term investments | 13 | - | 120 | |||||||
| Non-operating income (expense) (non-GAAP) | 619 | 1,025 | 1,205 | |||||||
| Net income (GAAP) | 26,157 | 17,594 | 9,896 | |||||||
| Total pre-tax impact of non-GAAP adjustments | 8,856 | 3,146 | 19,836 | |||||||
| Income tax impact of non-GAAP
adjustments | (1,147 | ) | (393 | ) | (1,320 | ) | ||||
| Net income (non-GAAP) | 33,866 | 20,347 | 28,412 | |||||||
| Earnings per diluted ADS (GAAP) | $ | 0.73 | $ | 0.49 | $ | 0.27 | ||||
| Earnings per diluted ADS (non-GAAP) | $ | 0.95 | $ | 0.57 | $ | 0.79 | ||||
| Shares used in computing earnings per diluted ADS (GAAP) | 35,623 | 35,828 | 36,005 | |||||||
| Non-GAAP Adjustments | 201 | 129 | 169 | |||||||
| Shares used in computing earnings per diluted ADS (non-GAAP) | 35,824 | 35,957 | 36,174 | |||||||
| (A) Excludes stock-based compensation as follows: | ||||||||||
| Cost of Sales | 199 | 58 | 167 | |||||||
| Research & development | 5,076 | 1,960 | 5,131 | |||||||
| Sales & marketing | 1,476 | 767 | 1,194 | |||||||
| General & administrative | 1,676 | 536 | 1,562 | |||||||
