| 2018 THIRD QUARTER OUTLOOK | ||||||||
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN | ||||||||
| (Unaudited) | ||||||||
| Three Months Ending | ||||||||
| September 30, 2018 | ||||||||
| Low | High | |||||||
| Gross margin | 55.2 | % | 56.2 | % | ||||
| Adjustments to reconcile gross margin to non-GAAP gross margin: | ||||||||
| Stock-based compensation expense | 0.3 | % | 0.3 | % | ||||
| Amortization of acquisition-related intangible assets | 0.1 | % | 0.1 | % | ||||
| Non-GAAP gross margin | 55.6 | % | 56.6 | % | ||||
| 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, 2018 | ||||||||
| Low | High | |||||||
| R&D and SG&A expense | $ | 52,300 | $ | 57,300 | ||||
| Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense: | ||||||||
| Stock-based compensation expense | (14,500 | ) | (16,500 | ) | ||||
| Non-GAAP R&D and SG&A expense | $ | 37,800 | $ | 40,800 | ||||
