RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (UNAUDITED)
(In thousands, except per share amounts)
| Three months ended | Year ended | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||
| GAAP net income (loss) | $ | 887 | $ | (4,972 | ) | $ | 483 | $ | 3,105 | $ | (3,429 | ) | |||||||
| Adjustments to reconcile GAAP net income (loss) to non-GAAP net income: | |||||||||||||||||||
| Stock-based compensation expense | 5,923 | 5,999 | 5,088 | 21,484 | 19,649 | ||||||||||||||
| Amortization of acquired technology under costs of revenues | 586 | 574 | 553 | 2,266 | 2,213 | ||||||||||||||
| Amortization of other acquired intangible assets | 306 | 328 | 325 | 1,285 | 1,270 | ||||||||||||||
| Expenses of arbitration (1) | 75 | 226 | 852 | 2,600 | 1,895 | ||||||||||||||
| Acquisition-related costs (2) | — | 33 | — | 209 | — | ||||||||||||||
| Proceeds from the sale of previously written-off property and equipment | — | (105 | ) | — | (105 | ) | — | ||||||||||||
| Tax impact of valuation allowance for deferred tax assets and reconciling items (3) | (2,060 | ) | 5,904 | 98 | (2,374 | ) | 1,326 | ||||||||||||
| Non-GAAP net income | $ | 5,717 | $ | 7,987 | $ | 7,399 | $ | 28,470 | $ | 22,924 | |||||||||
| GAAP net income (loss) per diluted share | $ | 0.02 | $ | (0.13 | ) | $ | 0.01 | $ | 0.08 | $ | (0.09 | ) | |||||||
| Non-GAAP net income per diluted share | $ | 0.15 | $ | 0.20 | $ | 0.19 | $ | 0.73 | $ | 0.60 | |||||||||
| Weighted average common shares used in GAAP net income (loss) per diluted share calculation | 38,814 | 38,187 | 38,276 | 38,937 | 37,309 | ||||||||||||||
| Weighted average common shares used in non-GAAP net income per diluted share calculation | 38,814 | 38,992 | 38,276 | 38,937 | 38,130 | ||||||||||||||
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