| SELECTED GAAP RESULTS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (In millions, except for percentages and EPS) | |||||||||||||||||
|
For the quarter ended
December 29, 2018 |
For the quarter ended
December 30, 2017 |
Change vs. Q3
FY 2018 | |||||||||||||||
| Revenue | $ | 832.3 | $ | 845.7 | $ | (13.4 | ) | ||||||||||
| Gross profit | $ | 338.4 | $ | 336.9 | $ | 1.5 | |||||||||||
| Gross margin | 40.7 | % | 39.8 | % | 0.9 | ppt | |||||||||||
| Operating expenses | $ | 257.2 | $ | 256.6 | $ | 0.6 | |||||||||||
| Operating income | $ | 81.2 | $ | 80.3 | $ | 0.9 | |||||||||||
| Net income (loss) | $ | 69.5 | $ | (33.1 | ) | $ | 102.6 | ||||||||||
| Weighted average diluted shares | 126.8 | 127.0 | (0.2 | ) | |||||||||||||
| Diluted EPS | $ | 0.55 | $ | (0.26 | ) | $ | 0.81 | ||||||||||
| SELECTED NON-GAAP RESULTS1 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (In millions, except for percentages and EPS) | |||||||||||||||||
|
For the quarter ended
December 29, 2018 |
For the quarter ended
December 30, 2017 |
Change vs. Q3
FY 2018 | |||||||||||||||
| Revenue | $ | 832.3 | $ | 844.8 | $ | (12.5 | ) | ||||||||||
| Gross profit | $ | 411.8 | $ | 405.1 | $ | 6.7 | |||||||||||
| Gross margin | 49.5 | % | 48.0 | % | 1.5 | ppt | |||||||||||
| Operating expenses | $ | 150.5 | $ | 150.8 | $ | (0.3 | ) | ||||||||||
| Operating income | $ | 261.3 | $ | 254.3 | $ | 7.0 | |||||||||||
| Net income | $ | 234.1 | $ | 220.2 | $ | 13.9 | |||||||||||
| Weighted average diluted shares | 126.8 | 130.5 | (3.7 | ) | |||||||||||||
| Diluted EPS | $ | 1.85 | $ | 1.69 | $ | 0.16 | |||||||||||
1Excludes stock-based compensation, amortization of intangibles, restructuring costs, acquisition and integration related costs, non-cash deferred royalty revenue and equal and offsetting non-cash prepaid royalty amortization, start-up costs, (gain) loss on assets, asset impairment and accelerated depreciation, loss on debt extinguishment, other income and an adjustment of income taxes.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP revenue, (ii) non-GAAP gross profit and gross margin, (iii) non-GAAP operating income and operating margin, (iv) non-GAAP net income, (v) non-GAAP net income per diluted share, (vi) non-GAAP operating expenses (research and development; selling, general and administrative), (vii) free cash flow, (viii) EBITDA, (ix) non-GAAP return on invested capital (ROIC), and (x) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the "Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.
