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TECHWELL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2006 2005 2006 2005
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(unaudited) (unaudited) (unaudited) (audited)
Revenues $16,010 $10,792 $53,712 $36,051
Cost of Revenues 6,865 4,860 22,977 17,304
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----------- ----------- ------------ ---------
Gross Profit 9,145 5,932 30,735 18,747
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Operating Expenses
Research and
development 2,199 2,566 9,183 8,684
Selling, general and
administrative 2,638 1,683 8,702 5,730
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Total operating
expenses 4,837 4,249 17,885 14,414
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Income from operations 4,308 1,683 12,850 4,333
Interest income 646 120 1,670 368
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Income before income
taxes 4,954 1,803 14,520 4,701
Provision for income
taxes 104 40 1,298 160
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Net Income $4,850 $1,763 $13,222 $4,541
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Net income per share
Basic $0.24 $0.41 $1.04 $1.14
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Diluted $0.22 $0.09 $0.64 $0.25
=========== =========== =========== =========
Shares used in
computing net income
per share
Basic 20,187 4,281 12,772 3,993
Diluted 22,206 18,772 20,538 18,434
TECHWELL, INC.
RECONCILIATION OF GAAP NET INCOME
TO NON-GAAP NET INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2006 2005 2006 2005
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GAAP net income $4,850 $1,763 $13,222 $4,541
Stock-based compensation:
Cost of revenues 45 5 117 31
Research and development 191 112 1,100 427
Selling, general and administrative 243 177 1,050 442
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Total stock-based compensation
expenses 479 294 2,267 900
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Tax effect on stock-based
compensation (8) - (68) -
Non-GAAP net income $5,321 $2,057 $15,421 $5,441
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Non-GAAP net income per share
Basic $0.26 $0.48 $1.21 $1.36
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Diluted $0.24 $0.11 $0.75 $0.30
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Shares used in computing
Non-GAAP net income per share
Basic 20,187 4,281 12,772 3,993
Diluted 22,206 18,772 20,538 18,434
Non-GAAP Financial Information
In addition to disclosing financial results calculated in accordance
with U. S. generally accepted accounting principles (GAAP), the
operating results presented contain non-GAAP financial measures that
exclude the income statement effects of stock-based compensation,
including the effect of our adoption of SFAS 123R.
We exclude stock-based compensation to calculate non-GAAP net income
and non-GAAP earnings per share for the fourth quarter and twelve
months of 2006 to allow for a better comparison of results in the
current period to those in prior periods that did not include SFAS
123R stock-based compensation.
