Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

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

Three months ended
June 30,

Six months ended
June 30,

2021

2020

2021

2020

Unaudited

Unaudited

Unaudited

Unaudited

GAAP net income (loss)

$ 315

($ 1,090)

($3,315)

($2,275)

Equity-based compensation expense included in cost of revenues

119

156

262

314

Equity-based compensation expense included in research and development
   expenses

1,743

1,722

3,428

3,345

Equity-based compensation expense included in sales and marketing
   expenses

367

512

785

963

Equity-based compensation expense included in general and administrative
   expenses

677

1,027

1,629

1,902

Income tax benefit related to equity-based compensation
   expenses

—

(135)

—

(184)

Amortization of intangible assets, net of taxes, related to acquisition of
   Intrinsix and Hillcrest Labs business, investments in NB-IoT and
   Immervision technologies

851

684

1,537

1,377

Costs associated with the Intrinsix acquisition

1,005

—

1,005

—

Non-GAAP net income

$ 5,077

$ 2,876

$ 5,331

$ 5,442

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

23,140

22,017

22,685

22,006

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

343

1,015

739

973

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

23,483

23,032

23,424

22,979

GAAP diluted net income (loss) per share

$  0.01

($ 0.05)

($ 0.15)

($ 0.10)

Equity-based compensation expense, net of taxes

$  0.13

$  0.14

$  0.27

$  0.28

Amortization of intangible assets, net of taxes, related to acquisition of
   Intrinsix and Hillcrest Labs business, investments in NB-IoT and
   Immervision technologies

$  0.04

$  0.03

$  0.07

$  0.06

Costs associated with the Intrinsix acquisition

$  0.04

—

$  0.04

—

Non-GAAP diluted earnings per share

$  0.22

$  0.12

$  0.23

$  0.24