Condensed Consolidated Statement of Operations

(Unaudited, in thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2014

2013

2014

2013

Revenue 

$ 68,436

$ 57,714

$ 128,497

$ 109,184

Cost of revenue 

31,337

26,786

59,301

50,871

Gross profit 

37,099

30,928

69,196

58,313

Operating expenses:

  Research and development 

13,368

12,478

28,971

24,601

  Selling, general and administrative 

16,853

13,793

32,962

27,051

  Litigation expense (benefit), net

274

(257)

(8,426)

(558)

Total operating expenses 

30,495

26,014

53,507

51,094

Income from operations 

6,604

4,914

15,689

7,219

Interest and other income, net

295

218

485

208

Income before income taxes 

6,899

5,132

16,174

7,427

Income tax provision (benefit)

502

(357)

759

(562)

Net income 

$   6,397

$   5,489

$   15,415

$     7,989

    Net income per share:

          Basic

$     0.17

$     0.15

$       0.40

$       0.22

          Diluted

$     0.16

$     0.14

$       0.39

$       0.21

Weighted-average shares outstanding:

          Basic

38,684

37,053

38,577

36,657

          Diluted

39,608

38,239

39,563

38,019

Cash dividends declared per common share

$     0.15

$         -

$       0.15

$           -