• | Net revenue was $87.6 million, up 3% sequentially, and down 23% year-on-year. |
• | GAAP gross margin was 52.4%, compared to 51.6% in the prior quarter, and 45.8% in the year-ago quarter. |
• | GAAP operating expenses were $56.6 million in the fourth quarter 2018, or 65% of net revenue, compared to $56.4 million in the prior quarter, or 66% of net revenue, and $57.8 million in the year-ago quarter, or 51% of net revenue. |
• | GAAP loss from operations was 12% of revenue, compared to loss from operations of 15% in the prior quarter, and loss from operations of 5% in the year-ago quarter. |
• | Net cash flow provided by operating activities of $24.2 million, compared to cash flow provided by operations of $30.7 million in the prior quarter and cash flow provided by operating activities of $21.7 million in the year-ago quarter. |
• | GAAP income tax benefit was $14.0 million, which included a $11.3 million discrete tax benefit for a reduction in the valuation allowance on certain loss carryforwards as provisional estimates for the effects of the 2017 Tax Act were finalized, compared to an income tax benefit of $2.1 million in the prior quarter, and income tax provision of $9.0 million in the year-ago quarter. |
• | GAAP net income was $0.3 million, compared to net loss of $13.9 million in the prior quarter, and net loss of $19.4 million in the year-ago quarter. |
• | GAAP diluted earnings per share was $0.00, compared to diluted loss per share of $0.20 in the prior quarter, and diluted loss per share of $0.29 in the year-ago quarter. |
• | Non-GAAP gross margin was 62.7%. This compares to 62.5% in the prior quarter, and 62.0% in the year-ago quarter. |
• | Non-GAAP operating expenses were $36.7 million, or 42% of revenue, compared to $35.6 million or 42% of revenue in the prior quarter, and $38.3 million or 34% of revenue in the year-ago quarter. |
• | Non-GAAP income from operations was 21% of revenue, compared to 21% in the prior quarter, and 28% in the year-ago quarter. |
• | Non-GAAP effective tax rate was 7% of non-GAAP pre-tax income, compared to 7% in the prior quarter, and 4% in the year-ago quarter. |
• | Non-GAAP net income was $14.2 million, compared to $13.2 million in the prior quarter, and $26.3 million in the year-ago quarter. |
• | Non-GAAP diluted earnings per share was $0.20, compared to diluted earnings per share of $0.19 in the prior quarter, and diluted earnings per share of $0.38 in the year-ago quarter. |
• | Successfully validated the functionality of the Telluride products in 400Gbps mode through interoperability testing of Telluride PAM4 DSPs with Innovium's 12.8 Tbps TERALYNX Switch ASIC. |
• | Announced the integration of AirPHY multi-gigabit modem technology into Zinwell's 3rd generation ZRA-003 device, which can transfer power and gigabit data through glass windows and walls up to 20cm thick. |
• | G.hn home networking solutions with Comtrend selected by Chunghwa Telecom to deliver gigabit-class service to their subscribers in Taiwan. |
• | Announced collaboration with Intel and cable industry leaders to enable 10 Gigabit ready gateway platforms. |
• | G.hn Wave-2 technology selected by Zinwell for new family of home networking products. |
• | GAAP gross margin of approximately 52.5% to 53.5%; |
• | Non-GAAP gross margin of approximately 63.0% to 64.0%; |
• | GAAP operating expenses of approximately $56.0 million to $56.5 million; and |
• | Non-GAAP operating expenses of approximately $36.0 million to $36.5 million. |
Three Months Ended | |||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
Net revenue | $ | 87,627 | $ | 85,010 | $ | 113,721 | |||||
Cost of net revenue | 41,727 | 41,134 | 61,628 | ||||||||
Gross profit | 45,900 | 43,876 | 52,093 | ||||||||
Operating expenses: | |||||||||||
Research and development | 29,667 | 29,047 | 30,116 | ||||||||
Selling, general and administrative | 25,208 | 24,963 | 26,843 | ||||||||
Impairment losses | — | 2,198 | — | ||||||||
Restructuring charges | 1,737 | 236 | 800 | ||||||||
Total operating expenses | 56,612 | 56,444 | 57,759 | ||||||||
Loss from operations | (10,712 | ) | (12,568 | ) | (5,666 | ) | |||||
Interest income | 24 | 17 | 14 | ||||||||
Interest expense | (3,194 | ) | (3,473 | ) | (4,044 | ) | |||||
Other income (expense), net | 229 | 39 | (793 | ) | |||||||
Total interest and other expense, net | (2,941 | ) | (3,417 | ) | (4,823 | ) | |||||
Loss before income taxes | (13,653 | ) | (15,985 | ) | (10,489 | ) | |||||
Income tax provision (benefit) | (13,964 | ) | (2,050 | ) | 8,959 | ||||||
Net income (loss) | $ | 311 | $ | (13,935 | ) | $ | (19,448 | ) | |||
Net income (loss) per share: | |||||||||||
Basic | $ | — | $ | (0.20 | ) | $ | (0.29 | ) | |||
Diluted | $ | — | $ | (0.20 | ) | $ | (0.29 | ) | |||
Shares used to compute net income (loss) per share: | |||||||||||
Basic | 69,186 | 68,742 | 67,147 | ||||||||
Diluted | 71,267 | 68,742 | 67,147 |
Years Ended | |||||||
December 31, 2018 | December 31, 2017 | ||||||
Net revenue | $ | 384,997 | $ | 420,318 | |||
Cost of net revenue | 176,223 | 212,355 | |||||
Gross profit | 208,774 | 207,963 | |||||
Operating expenses: | |||||||
Research and development | 120,046 | 112,279 | |||||
Selling, general and administrative | 101,789 | 105,831 | |||||
Impairment losses | 2,198 | 2,000 | |||||
Restructuring charges | 3,838 | 9,524 | |||||
Total operating expenses | 227,871 | 229,634 | |||||
Loss from operations | (19,097 | ) | (21,671 | ) | |||
Interest income | 78 | 274 | |||||
Interest expense | (14,255 | ) | (10,378 | ) | |||
Other income (expense), net | 422 | (2,223 | ) | ||||
Total interest and other expense, net | (13,755 | ) | (12,327 | ) | |||
Loss before income taxes | (32,852 | ) | (33,998 | ) | |||
Income tax benefit | (6,653 | ) | (24,811 | ) | |||
Net loss | $ | (26,199 | ) | $ | (9,187 | ) | |
Net loss per share: | |||||||
Basic | $ | (0.38 | ) | $ | (0.14 | ) | |
Diluted | $ | (0.38 | ) | $ | (0.14 | ) | |
Shares used to compute net loss per share: | |||||||
Basic | 68,490 | 66,252 | |||||
Diluted | 68,490 | 66,252 |
Three Months Ended | |||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
Operating Activities | |||||||||||
Net income (loss) | $ | 311 | $ | (13,935 | ) | $ | (19,448 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Amortization and depreciation | 19,125 | 19,767 | 20,236 | ||||||||
Impairment losses | — | 2,198 | — | ||||||||
Amortization of inventory step-up | — | — | 9,715 | ||||||||
Amortization of debt issuance costs and discount | 287 | 287 | 287 | ||||||||
Stock-based compensation | 7,999 | 7,940 | 7,770 | ||||||||
Deferred income taxes | (8,827 | ) | 304 | 16,650 | |||||||
(Gain) loss on disposal of property and equipment | 430 | — | (33 | ) | |||||||
(Gain) loss on foreign currency | (268 | ) | (184 | ) | 738 | ||||||
Excess tax benefits on stock-based awards | (820 | ) | (93 | ) | (1,961 | ) | |||||
Impairment of leasehold improvements | 35 | — | — | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (867 | ) | 25,016 | 9,492 | |||||||
Inventory | 19 | 2,581 | 543 | ||||||||
Prepaid expenses and other assets | 1,905 | 712 | (424 | ) | |||||||
Accounts payable, accrued expenses and other current liabilities | 648 | (10,606 | ) | (2,494 | ) | ||||||
Accrued compensation | 2,387 | 2,671 | 1,351 | ||||||||
Deferred revenue and deferred profit | — | — | (12,862 | ) | |||||||
Accrued price protection liability | 2,036 | (5,662 | ) | (6,658 | ) | ||||||
Other long-term liabilities | (227 | ) | (275 | ) | (1,159 | ) | |||||
Net cash provided by operating activities | 24,173 | 30,721 | 21,743 | ||||||||
Investing Activities | |||||||||||
Purchases of property and equipment | (1,412 | ) | (1,609 | ) | (3,070 | ) | |||||
Proceeds from sale of property and equipment | — | — | 30 | ||||||||
Net cash used in investing activities | (1,412 | ) | (1,609 | ) | (3,040 | ) | |||||
Financing Activities | |||||||||||
Repayment of debt | (15,000 | ) | (35,000 | ) | (20,000 | ) | |||||
Net proceeds from issuance of common stock | 2,732 | 91 | 2,960 | ||||||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (2,606 | ) | (1,178 | ) | (1,718 | ) | |||||
Net cash used in financing activities | (14,874 | ) | (36,087 | ) | (18,758 | ) | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,939 | ) | 103 | 371 | |||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 5,948 | (6,872 | ) | 316 | |||||||
Cash, cash equivalents and restricted cash at beginning of period | 68,243 | 75,115 | 74,096 | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 74,191 | $ | 68,243 | $ | 74,412 |
Years Ended | |||||||
December 31, 2018 | December 31, 2017 | ||||||
Operating Activities | |||||||
Net loss | $ | (26,199 | ) | $ | (9,187 | ) | |
Adjustments to reconcile net loss to cash provided by operating activities: | |||||||
Amortization and depreciation | 79,027 | 66,738 | |||||
Impairment losses | 2,198 | 2,000 | |||||
Provision for losses on accounts receivable | — | 133 | |||||
Accretion of investment discounts, net | — | (60 | ) | ||||
Amortization of inventory step-up | — | 25,557 | |||||
Amortization of debt issuance costs and discount | 1,148 | 763 | |||||
Stock-based compensation | 31,721 | 32,668 | |||||
Deferred income taxes | (12,144 | ) | (31,767 | ) | |||
Loss on disposal of property and equipment | 430 | 168 | |||||
Loss on sale of available-for-sale securities | — | 38 | |||||
(Gain) loss on foreign currency | (809 | ) | 2,153 | ||||
Excess tax benefits on stock-based awards | (2,028 | ) | (8,559 | ) | |||
Impairment of leasehold improvements | 735 | — | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 6,595 | (4,377 | ) | ||||
Inventory | 11,696 | (1,788 | ) | ||||
Prepaid expenses and other assets | 5,833 | 1,272 | |||||
Accounts payable, accrued expenses and other current liabilities | 1,161 | (1,918 | ) | ||||
Accrued compensation | 8,961 | 1,567 | |||||
Deferred revenue and deferred profit | (138 | ) | (1,629 | ) | |||
Accrued price protection liability | (5,117 | ) | 6,395 | ||||
Other long-term liabilities | (381 | ) | (5,103 | ) | |||
Net cash provided by operating activities | 102,689 | 75,064 | |||||
Investing Activities | |||||||
Purchases of property and equipment | (7,825 | ) | (7,468 | ) | |||
Proceeds from sale of property and equipment | — | 30 | |||||
Purchases of intangible assets | — | (5,378 | ) | ||||
Cash used in acquisition, net of cash acquired | — | (473,304 | ) | ||||
Purchases of available-for-sale securities | — | (30,577 | ) | ||||
Maturities of available-for-sale securities | — | 84,546 | |||||
Net cash used in investing activities | (7,825 | ) | (432,151 | ) | |||
Financing Activities | |||||||
Proceeds from issuance of debt | — | 416,846 | |||||
Repayment of debt | (93,000 | ) | (70,000 | ) | |||
Repurchases of common stock | — | (334 | ) | ||||
Net proceeds from issuance of common stock | 6,839 | 12,052 | |||||
Minimum tax withholding paid on behalf of employees for restricted stock units | (7,623 | ) | (11,543 | ) | |||
Net cash provided by (used in) financing activities | (93,784 | ) | 347,021 | ||||
Effect of exchange rate changes on cash and cash equivalents | (1,301 | ) | 1,582 | ||||
Decrease in cash, cash equivalents and restricted cash | (221 | ) | (8,484 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 74,412 | 82,896 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 74,191 | $ | 74,412 |
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 73,142 | $ | 67,185 | $ | 71,872 | |||||
Short-term restricted cash | 645 | 349 | 1,476 | ||||||||
Accounts receivable, net | 59,491 | 58,633 | 66,099 | ||||||||
Inventory | 41,738 | 41,757 | 53,434 | ||||||||
Prepaid expenses and other current assets | 5,595 | 6,329 | 8,423 | ||||||||
Total current assets | 180,611 | 174,253 | 201,304 | ||||||||
Long-term restricted cash | 404 | 709 | 1,064 | ||||||||
Property and equipment, net | 18,404 | 19,413 | 22,658 | ||||||||
Intangible assets, net | 244,900 | 261,813 | 315,045 | ||||||||
Goodwill | 238,330 | 238,330 | 237,992 | ||||||||
Deferred tax assets | 51,518 | 42,691 | 39,878 | ||||||||
Other long-term assets | 4,664 | 4,935 | 6,921 | ||||||||
Total assets | $ | 738,831 | $ | 742,144 | $ | 824,862 | |||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | $ | 70,567 | $ | 66,464 | $ | 76,386 | |||||
Long-term debt | 255,757 | 270,470 | 347,609 | ||||||||
Other long-term liabilities | 12,571 | 12,816 | 13,443 | ||||||||
Total stockholders’ equity | 399,936 | 392,394 | 387,424 | ||||||||
Total liabilities and stockholders’ equity | $ | 738,831 | $ | 742,144 | $ | 824,862 |
Three Months Ended | |||||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | |||||||||
GAAP gross profit | $ | 45,900 | $ | 43,876 | $ | 52,093 | |||||
Stock-based compensation | 132 | 131 | 101 | ||||||||
Performance based equity | 56 | 53 | 35 | ||||||||
Amortization of inventory step-up | — | — | 9,715 | ||||||||
Amortization of purchased intangible assets | 8,875 | 8,969 | 8,465 | ||||||||
Depreciation of fixed asset step-up | — | 95 | 112 | ||||||||
Non-GAAP gross profit | 54,963 | 53,124 | 70,521 | ||||||||
GAAP R&D expenses | 29,667 | 29,047 | 30,116 | ||||||||
Stock-based compensation | (4,399 | ) | (4,726 | ) | (4,349 | ) | |||||
Performance based equity | (1,254 | ) | (1,517 | ) | (1,031 | ) | |||||
Amortization of purchased intangible assets | — | — | (97 | ) | |||||||
Depreciation of fixed asset step-up | (76 | ) | (321 | ) | (297 | ) | |||||
Non-GAAP R&D expenses | 23,938 | 22,483 | 24,342 | ||||||||
GAAP SG&A expenses | 25,208 | 24,963 | 26,843 | ||||||||
Stock-based compensation | (3,481 | ) | (3,070 | ) | (3,105 | ) | |||||
Performance based equity | (948 | ) | (785 | ) | (937 | ) | |||||
Amortization of purchased intangible assets | (7,994 | ) | (7,994 | ) | (8,760 | ) | |||||
Depreciation of fixed asset step-up | (2 | ) | (12 | ) | (20 | ) | |||||
Acquisition and integration costs | — | — | (54 | ) | |||||||
IP litigation costs, net | (3 | ) | (19 | ) | (38 | ) | |||||
Non-GAAP SG&A expenses | 12,780 | 13,083 | 13,929 | ||||||||
GAAP Impairment losses | — | 2,198 | — | ||||||||
Impairment losses | — | (2,198 | ) | — | |||||||
Non-GAAP Impairment losses | — | — | — | ||||||||
GAAP restructuring expenses | 1,737 | 236 | 800 | ||||||||
Restructuring charges | (1,737 | ) | (236 | ) | (800 | ) | |||||
Non-GAAP restructuring expenses | — | — | — | ||||||||
GAAP loss from operations | (10,712 | ) | (12,568 | ) | (5,666 | ) | |||||
Total non-GAAP adjustments | 28,957 | 30,126 | 37,916 | ||||||||
Non-GAAP income from operations | 18,245 | 17,558 | 32,250 | ||||||||
GAAP and non-GAAP interest and other income (expense), net | (2,941 | ) | (3,417 | ) | (4,823 | ) | |||||
GAAP loss before income taxes | (13,653 | ) | (15,985 | ) | (10,489 | ) | |||||
Total non-GAAP adjustments | 28,957 | 30,126 | 37,916 | ||||||||
Non-GAAP income before income taxes | 15,304 | 14,141 | 27,427 | ||||||||
GAAP income tax provision (benefit) | (13,964 | ) | (2,050 | ) | 8,959 | ||||||
Adjustment for non-cash tax benefits/expenses and effects of the Tax Act | 15,035 | 3,040 | (7,853 | ) | |||||||
Non-GAAP income tax provision | 1,071 | 990 | 1,106 | ||||||||
GAAP net income (loss) | 311 | (13,935 | ) | (19,448 | ) | ||||||
Total non-GAAP adjustments before income taxes | 28,957 | 30,126 | 37,916 | ||||||||
Less: total tax adjustments | 15,035 | 3,040 | (7,853 | ) | |||||||
Non-GAAP net income | $ | 14,233 | $ | 13,151 | $ | 26,321 | |||||
Shares used in computing non-GAAP basic net income per share | 69,186 | 68,742 | 67,147 | ||||||||
Shares used in computing non-GAAP diluted net income per share | 71,267 | 70,634 | 70,175 | ||||||||
Non-GAAP basic net income per share | $ | 0.21 | $ | 0.19 | $ | 0.39 | |||||
Non-GAAP diluted net income per share | $ | 0.20 | $ | 0.19 | $ | 0.38 |
Years Ended | |||||||
December 31, 2018 | December 31, 2017 | ||||||
GAAP gross profit | $ | 208,774 | $ | 207,963 | |||
Stock-based compensation | 489 | 332 | |||||
Performance based equity | 234 | 139 | |||||
Amortization of inventory step-up | — | 25,557 | |||||
Amortization of purchased intangible assets | 35,781 | 25,316 | |||||
Depreciation of fixed asset step-up | 303 | 337 | |||||
Deferred profit eliminated in purchase price accounting | — | 4,682 | |||||
Non-GAAP gross profit | 245,581 | 264,326 | |||||
GAAP R&D expenses | 120,046 | 112,279 | |||||
Stock-based compensation | (17,953 | ) | (16,190 | ) | |||
Performance based equity | (5,208 | ) | (4,001 | ) | |||
Amortization of purchased intangible assets | — | (386 | ) | ||||
Depreciation of fixed asset step-up | (1,050 | ) | (1,618 | ) | |||
Non-GAAP R&D expenses | 95,835 | 90,084 | |||||
GAAP SG&A expenses | 101,789 | 105,831 | |||||
Stock-based compensation | (13,279 | ) | (11,016 | ) | |||
Performance based equity | (3,512 | ) | (2,514 | ) | |||
Amortization of purchased intangible assets | (31,976 | ) | (28,827 | ) | |||
Depreciation of fixed asset step-up | (36 | ) | (106 | ) | |||
Acquisition and integration costs | — | (10,062 | ) | ||||
IP litigation costs, net | (83 | ) | (272 | ) | |||
Non-GAAP SG&A expenses | 52,903 | 53,034 | |||||
GAAP impairment losses | 2,198 | 2,000 | |||||
Impairment losses | (2,198 | ) | (2,000 | ) | |||
Non-GAAP impairment losses | — | — | |||||
GAAP restructuring expenses | 3,838 | 9,524 | |||||
Restructuring charges | (3,838 | ) | (9,524 | ) | |||
Non-GAAP restructuring expenses | — | — | |||||
GAAP loss from operations | (19,097 | ) | (21,671 | ) | |||
Total non-GAAP adjustments | 115,940 | 142,879 | |||||
Non-GAAP income from operations | 96,843 | 121,208 | |||||
GAAP and non-GAAP interest and other income (expense), net | (13,755 | ) | (12,327 | ) | |||
GAAP loss before income taxes | (32,852 | ) | (33,998 | ) | |||
Total non-GAAP adjustments | 115,940 | 142,879 | |||||
Non-GAAP income before income taxes | 83,088 | 108,881 | |||||
GAAP income tax benefit | (6,653 | ) | (24,811 | ) | |||
Adjustment for non-cash tax benefits/expenses and effects of the Tax Act | 12,469 | 32,433 | |||||
Non-GAAP income tax provision | 5,816 | 7,622 | |||||
GAAP net loss | (26,199 | ) | (9,187 | ) | |||
Total non-GAAP adjustments before income taxes | 115,940 | 142,879 | |||||
Less: total tax adjustments | 12,469 | 32,433 | |||||
Non-GAAP net income | $ | 77,272 | $ | 101,259 | |||
Shares used in computing non-GAAP basic net income per share | 68,490 | 66,252 | |||||
Shares used in computing non-GAAP diluted net income per share | 70,709 | 69,665 | |||||
Non-GAAP basic net income per share | $ | 1.13 | $ | 1.53 | |||
Non-GAAP diluted net income per share | $ | 1.09 | $ | 1.45 | |||
Three Months Ended | ||||||||
December 31, 2018 | September 30, 2018 | December 31, 2017 | ||||||
GAAP gross profit | 52.4 | % | 51.6 | % | 45.8 | % | ||
Stock-based compensation | 0.2 | % | 0.2 | % | 0.1 | % | ||
Performance based equity | 0.1 | % | 0.1 | % | — | % | ||
Amortization of inventory step-up | — | % | — | % | 8.5 | % | ||
Amortization of purchased intangible assets | 10.1 | % | 10.6 | % | 7.4 | % | ||
Depreciation of fixed asset step-up | — | % | 0.1 | % | 0.2 | % | ||
Non-GAAP gross profit | 62.7 | % | 62.5 | % | 62.0 | % | ||
GAAP R&D expenses | 33.9 | % | 34.2 | % | 26.5 | % | ||
Stock-based compensation | (5.0 | )% | (5.6 | )% | (3.8 | )% | ||
Performance based equity | (1.4 | )% | (1.8 | )% | (1.0 | )% | ||
Amortization of purchased intangible assets | — | % | — | % | (0.1 | )% | ||
Depreciation of fixed asset step-up | (0.1 | )% | (0.5 | )% | (0.2 | )% | ||
Non-GAAP R&D expenses | 27.3 | % | 26.4 | % | 21.4 | % | ||
GAAP SG&A expenses | 28.8 | % | 29.4 | % | 23.6 | % | ||
Stock-based compensation | (4.0 | )% | (3.6 | )% | (2.7 | )% | ||
Performance based equity | (1.1 | )% | (0.9 | )% | (1.0 | )% | ||
Amortization of purchased intangible assets | (9.1 | )% | (9.4 | )% | (7.7 | )% | ||
Depreciation of fixed asset step-up | — | % | — | % | — | % | ||
Acquisition and integration costs | — | % | — | % | — | % | ||
IP litigation costs, net | — | % | — | % | — | % | ||
Non-GAAP SG&A expenses | 14.6 | % | 15.4 | % | 12.2 | % | ||
GAAP Impairment losses | — | % | 2.6 | % | — | % | ||
Impairment losses | — | % | (2.6 | )% | — | % | ||
Non-GAAP Impairment losses | — | % | — | % | — | % | ||
GAAP restructuring expenses | 2.0 | % | 0.3 | % | 0.7 | % | ||
Restructuring charges | (2.0 | )% | (0.3 | )% | (0.7 | )% | ||
Non-GAAP restructuring expenses | — | % | — | % | — | % | ||
GAAP loss from operations | (12.2 | )% | (14.8 | )% | (5.0 | )% | ||
Total non-GAAP adjustments | 33.0 | % | 35.4 | % | 33.3 | % | ||
Non-GAAP income from operations | 20.8 | % | 20.7 | % | 28.3 | % | ||
GAAP and non-GAAP interest and other income (expense), net | (3.4 | )% | (4.0 | )% | (4.2 | )% | ||
GAAP loss before income taxes | (15.6 | )% | (18.8 | )% | (9.2 | )% | ||
Total non-GAAP adjustments before income taxes | 33.0 | % | 35.4 | % | 33.3 | % | ||
Non-GAAP income before income taxes | 17.5 | % | 16.6 | % | 24.1 | % | ||
GAAP income tax provision (benefit) | (15.9 | )% | (2.4 | )% | 7.9 | % | ||
Adjustment for non-cash tax benefits/expenses and the effects of the Tax Act | 17.2 | % | 3.6 | % | (7.0 | )% | ||
Non-GAAP income tax provision | 1.2 | % | 1.2 | % | 0.9 | % | ||
GAAP net income (loss) | 0.4 | % | (16.4 | )% | (17.1 | )% | ||
Total non-GAAP adjustments before income taxes | 33.0 | % | 35.4 | % | 33.3 | % | ||
Less: total tax adjustments | 17.2 | % | 3.6 | % | (7.0 | )% | ||
Non-GAAP net income | 16.2 | % | 15.5 | % | 23.1 | % |
Years Ended | |||||
December 31, 2018 | December 31, 2017 | ||||
GAAP gross profit | 54.2 | % | 49.5 | % | |
Stock-based compensation | 0.1 | % | 0.1 | % | |
Performance based equity | 0.1 | % | — | % | |
Amortization of inventory step-up | — | % | 6.0 | % | |
Amortization of purchased intangible assets | 9.3 | % | 6.0 | % | |
Depreciation of fixed asset step-up | 0.1 | % | 0.2 | % | |
Deferred profit eliminated in purchase price accounting | — | % | 1.1 | % | |
Non-GAAP gross profit | 63.8 | % | 62.9 | % | |
GAAP R&D expenses | 31.2 | % | 26.7 | % | |
Stock-based compensation | (4.7 | )% | (3.9 | )% | |
Performance based equity | (1.4 | )% | (1.0 | )% | |
Amortization of purchased intangible assets | — | % | (0.1 | )% | |
Depreciation of fixed asset step-up | (0.3 | )% | (0.3 | )% | |
Non-GAAP R&D expenses | 24.9 | % | 21.4 | % | |
GAAP SG&A expenses | 26.4 | % | 25.2 | % | |
Stock-based compensation | (3.4 | )% | (2.6 | )% | |
Performance based equity | (0.9 | )% | (0.6 | )% | |
Amortization of purchased intangible assets | (8.3 | )% | (6.9 | )% | |
Depreciation of fixed asset step-up | — | % | — | % | |
Acquisition and integration costs | — | % | (2.4 | )% | |
IP litigation costs, net | — | % | (0.1 | )% | |
Non-GAAP SG&A expenses | 13.7 | % | 12.6 | % | |
GAAP Impairment losses | 0.6 | % | 0.5 | % | |
Impairment losses | (0.6 | )% | (0.5 | )% | |
Non-GAAP Impairment losses | — | % | — | % | |
GAAP restructuring expenses | 1.0 | % | 2.3 | % | |
Restructuring charges | (1.0 | )% | (2.3 | )% | |
Non-GAAP restructuring expenses | — | % | — | % | |
GAAP loss from operations | (5.0 | )% | (5.2 | )% | |
Total non-GAAP adjustments | 30.1 | % | 34.0 | % | |
Non-GAAP income from operations | 25.2 | % | 28.8 | % | |
GAAP and non-GAAP interest and other income (expense), net | (3.6 | )% | (2.9 | )% | |
GAAP loss before income taxes | (8.5 | )% | (8.1 | )% | |
Total non-GAAP adjustments before income taxes | 30.1 | % | 34.0 | % | |
Non-GAAP income before income taxes | 21.6 | % | 25.9 | % | |
GAAP income tax benefit | (1.7 | )% | (5.9 | )% | |
Adjustment for non-cash tax benefits/expenses and the effects of the Tax Act | 3.2 | % | 7.7 | % | |
Non-GAAP income tax provision | 1.5 | % | 1.8 | % | |
GAAP net loss | (6.8 | )% | (2.2 | )% | |
Total non-GAAP adjustments before income taxes | 30.1 | % | 34.0 | % | |
Less: total tax adjustments | 3.2 | % | 7.7 | % | |
Non-GAAP net income | 20.1 | % | 24.1 | % |