SUPPLEMENTAL FINANCIAL INFORMATION
STOCK-BASED COMPENSATION EXPENSE
(Unaudited, in thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Cost of revenue | $ | 642 | $ | 663 | $ | 1,199 | $ | 1,193 | ||||||||
| Research and development | 4,962 | 5,412 | 9,332 | 9,841 | ||||||||||||
| Selling, general and administrative | 15,440 | 16,634 | 29,075 | 27,685 | ||||||||||||
| Total stock-based compensation expense | $ | 21,044 | $ | 22,709 | $ | 39,606 | $ | 38,719 | ||||||||
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net income | $ | 30,167 | $ | 20,693 | $ | 65,922 | $ | 46,874 | ||||||||
| Net income as a percentage of revenue | 16.2 | % | 13.7 | % | 18.7 | % | 16.0 | % | ||||||||
| Adjustments to reconcile net income to non-GAAP net income: | ||||||||||||||||
| Stock-based compensation expense | 21,044 | 22,709 | 39,606 | 38,719 | ||||||||||||
| Amortization of acquisition-related intangible assets | - | 51 | - | 102 | ||||||||||||
| Deferred compensation plan expense | 460 | 151 | 554 | 15 | ||||||||||||
| Tax effect | (1,111 | ) | (1,739 | ) | (11,189 | ) | (5,937 | ) | ||||||||
| Non-GAAP net income | $ | 50,560 | $ | 41,865 | $ | 94,893 | $ | 79,773 | ||||||||
| Non-GAAP net income as a percentage of revenue | 27.2 | % | 27.7 | % | 27.0 | % | 27.3 | % | ||||||||
| Non-GAAP net income per share: | ||||||||||||||||
| Basic | $ | 1.13 | $ | 0.97 | $ | 2.13 | $ | 1.86 | ||||||||
| Diluted | $ | 1.08 | $ | 0.92 | $ | 2.03 | $ | 1.76 | ||||||||
| Shares used in the calculation of non-GAAP net income per share: | ||||||||||||||||
| Basic | 44,785 | 43,109 | 44,620 | 42,929 | ||||||||||||
| Diluted | 46,831 | 45,483 | 46,750 | 45,358 | ||||||||||||
