EZchip Semiconductor Ltd.
Reconciliation of GAAP to Non-GAAP Measures
(U.S. Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
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September September September September
30, June 30, 30, 30, 30,
2012 2012 2011 2012 2011
----------- ----------- ----------- ----------- -----------
GAAP gross profit $ 7,790 $ 12,911 $ 14,194 $ 32,937 $ 37,568
Stock-based
compensation 73 74 73 224 286
Amortization of
purchased technology - - - - 597
----------- ----------- ----------- ----------- -----------
Non-GAAP gross
profit $ 7,863 $ 12,985 $ 14,267 $ 33,161 $ 38,451
----------- ----------- ----------- ----------- -----------
GAAP gross profit
as percentage of
revenues 83.9% 81.7% 75.9% 83.4% 76.4%
----------- ----------- ----------- ----------- -----------
Non-GAAP gross
profit as percentage
of revenues 84.7% 82.2% 76.3% 84.0% 78.2%
----------- ----------- ----------- ----------- -----------
GAAP operating
expenses $ 8,229 $ 8,040 $ 7,008 $ 23,970 $ 21,305
Stock-based
compensation:
Research and
development (1,557) (1,545) (1,107) (4,463) (3,352)
Selling, general
and administrative (1,249) (1,216) (1,012) (3,609) (2,750)
Amortization of
intangible assets
Selling, general and
administrative (51) (51) (95) (153) (285)
----------- ----------- ----------- ----------- -----------
Non-GAAP operating
expenses $ 5,372 $ 5,228 $ 4,794 $ 15,745 $ 14,918
----------- ----------- ----------- ----------- -----------
GAAP operating
income (loss) $ (439) $ 4,871 $ 7,186 $ 8,967 $ 16,263
----------- ----------- ----------- ----------- -----------
Non-GAAP operating
income $ 2,491 $ 7,757 $ 9,473 $ 17,416 $ 23,533
----------- ----------- ----------- ----------- -----------
GAAP net income $ 127 $ 5,553 $ 7,650 $ 10,812 $ 13,895
Stock-based
compensation 2,879 2,835 2,192 8,296 6,388
Amortization of
purchased intangible
assets 51 51 95 153 882
Taxes on income* - - 3 - 3,530
----------- ----------- ----------- ----------- -----------
Non-GAAP net income $ 3,057 $ 8,439 $ 9,940 $ 19,261 $ 24,695
----------- ----------- ----------- ----------- -----------
Non-GAAP net income
per share -
Diluted $ 0.10 $ 0.29 $ 0.35 $ 0.65 $ 0.87
Non-GAAP weighted
average shares
- Diluted** 29,588,230 29,540,537 28,577,753 29,421,692 28,381,465
