(in thousands, except percentages and per ADS data, unaudited)
For the Year Ended | ||||||||
Dec. 31, 2017 | Dec. 31, 2018 | |||||||
($) | ( $) | |||||||
Gross profit (GAAP) | 251,194 | 260,807 | ||||||
Gross margin (GAAP) | 48.0 | % | 49.2 | % | ||||
Stock-based compensation expense(A) | 293 | 390 | ||||||
Gross profit (non-GAAP) | 251,487 | 261,197 | ||||||
Gross margin (non-GAAP) | 48.0 | % | 49.3 | % | ||||
Operating expenses (GAAP) | 155,845 | 152,529 | ||||||
Stock-based compensation expense (A) | (15,200 | ) | (20,388 | ) | ||||
Amortization of intangible assets | (2,534 | ) | (2,964 | ) | ||||
Impairment loss of goodwill | (10,337 | ) | (625 | ) | ||||
Litigation expense | - | (37 | ) | |||||
Operating expenses (non-GAAP) | 127,774 | 128,515 | ||||||
Operating profit (GAAP) | 95,349 | 108,278 | ||||||
Operating margin (GAAP) | 18.2 | % | 20.4 | % | ||||
Total adjustments to operating profit | 28,364 | 24,404 | ||||||
Operating profit (non-GAAP) | 123,713 | 132,682 | ||||||
Operating margin (non-GAAP) | 23.6 | % | 25.0 | % | ||||
Non-operating income (expense) (GAAP) | 3,652 | 3,786 | ||||||
Foreign exchange loss (gain), net | 157 | 615 | ||||||
Loss (gain) on equity-method investment | 120 | 1,242 | ||||||
Investment loss-equity method | - | 473 | ||||||
Non-operating income (expense) (non-GAAP) | 3,929 | 6,116 | ||||||
Net income (GAAP) | 74,955 | 100,273 | ||||||
Total pre-tax impact of non-GAAP adjustments | 28,641 | 26,734 | ||||||
Income tax impact of non-GAAP adjustments | (2,306 | ) | (3,480 | ) | ||||
Net income (non-GAAP) | 101,290 | 123,527 | ||||||
Earnings per diluted ADS (GAAP) | $2.09 | $2.78 | ||||||
Earnings per diluted ADS (non-GAAP) | $2.81 | $3.41 | ||||||
Shares used in computing earnings per diluted ADS (GAAP) | 35,902 | 36,128 | ||||||
Non-GAAP Adjustments | 107 | 133 | ||||||
Shares used in computing earnings per diluted ADS (non-GAAP) | 36,009 | 36,261 | ||||||
(A) Excludes stock-based compensation as follows: | ||||||||
Cost of Sales | 293 | 390 | ||||||
Research & development | 9,255 | 13,277 | ||||||
Sales & marketing | 3,166 | 3,407 | ||||||
General & administrative | 2,779 | 3,704 | ||||||
Silicon Motion Technology Corporation