Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

U.S. Dollars in thousands, except per share amounts

Three months ended

Six months ended

June 30

June 30

2018

2017

2018

2017

GAAP net income (loss)

($2,090)

$3,908

($4,272)

$8,015

Equity-based compensation expense included in cost of revenue

168

114

325

205

Equity-based compensation expense included in research and development expenses

1,359

972

2,628

1,843

Equity-based compensation expense included in sales and marketing expenses

423

370

877

659

Equity-based compensation expense included in general and administrative expenses

895

722

1,786

1,420

Income tax benefit related to equity-based compensation expenses

(153)

(69)

(282)

(184)

Amortization of intangible assets related to RivieraWaves transaction and in 2018 NB-Iot technologies

275

309

634

618

Non-GAAP net income

$877

$6,326

$1,696

$12,576

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

22,129

22,563

22,139

22,376

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

903

269

935

315

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

23,032

22,832

23,074

22,691

GAAP diluted earnings (loss) per share

($0.09)

$0.17

($0.19)

$0.36

Equity-based compensation expense, net of taxes

$0.12

$0.10

$0.23

$0.16

Amortization of intangible assets related to RivieraWaves transaction and in 2018 NB-IoT technologies

$0.01

$0.01

$0.03

$0.03

Non-GAAP diluted earnings per share

$0.04

$0.28

$0.07

$0.55