| MOSYS, INC. | ||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Net Income (Loss) and Net Income (Loss) Per Share | ||||||||||||||||||
| (In thousands, except per share amounts; unaudited) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||
| GAAP net income (loss) | $ | 29,800 | $ | (5,711 | ) | $ | 11,256 | $ | (23,062 | ) | ||||||||
| Stock-based compensation expense | ||||||||||||||||||
| - Cost of net revenue | 270 | 63 | 407 | 309 | ||||||||||||||
| - Research and development | 586 | 429 | 1,961 | 1,524 | ||||||||||||||
| - Selling, general and administrative | 436 | 510 | 1,398 | 1,465 | ||||||||||||||
| Total stock-based compensation expense | 1,292 | 1,002 | 3,766 | 3,298 | ||||||||||||||
| Amortization of intangible assets (1) | 654 | 671 | 2,618 | 2,818 | ||||||||||||||
| Acquisition-related contingent compensation charges (2) | - | - | - | 987 | ||||||||||||||
| Acquisition-related transaction costs (3) | - | - | - | 195 | ||||||||||||||
| Non-GAAP net income (loss) | $ | 31,746 | $ | (4,038 | ) | $ | 17,640 | $ | (15,764 | ) | ||||||||
| GAAP net income (loss) per share - diluted | $ | 0.75 | ($0.17 | ) | $ | 0.28 | ($0.72 | ) | ||||||||||
| Reconciling items | ||||||||||||||||||
| - Stock-based compensation expense | 0.03 | 0.03 | 0.10 | 0.10 | ||||||||||||||
| - Amortization of intangible assets (1) | 0.02 | 0.02 | 0.06 | 0.09 | ||||||||||||||
| - Acquisition-related contingent compensation charges (2) | - | - | - | 0.03 | ||||||||||||||
| - Acquisition-related transaction costs (3) | - | - | - | 0.01 | ||||||||||||||
| Non-GAAP net income (loss) per share - diluted | $ | 0.80 | ($0.12 | ) | $ | 0.44 | ($0.49 | ) | ||||||||||
| Shares used in computing non-GAAP net income (loss) per share | ||||||||||||||||||
| Basic | 38,353 | 33,130 | 37,861 | 31,870 | ||||||||||||||
| Diluted | 39,765 | 33,130 | 40,377 | 31,870 | ||||||||||||||
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(1) |
Non-cash charges for amortization of intangibles arising from acquired assets. |
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(2) |
Contingent earn-out compensation charges arising from acquisitions. Amounts included in research and development (R&D) and selling, general and administrative (SG&A) expenses for the twelve months ended December 31, 2010 are $842,000 and $145,000, respectively. |
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(3) |
Charges primarily related to legal and accounting fees incurred for the acquisition of MagnaLynx, Inc. in March 2010. |
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| These charges are included in SG&A expenses. |
