| 2017 FIRST QUARTER OUTLOOK | ||||||||
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN | ||||||||
| (Unaudited) | ||||||||
| Three Months Ending | ||||||||
| March 31, 2017 | ||||||||
| Low | High | |||||||
| Gross margin | 53.8 | % | 54.8 | % | ||||
| Adjustments to reconcile gross margin to non-GAAP gross margin: | ||||||||
| Stock-based compensation expense | 0.5 | % | 0.5 | % | ||||
| Amortization of acquisition-related intangible assets | 0.5 | % | 0.5 | % | ||||
| Non-GAAP gross margin | 54.8 | % | 55.8 | % | ||||
| RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES | ||||||||
| (Unaudited, in thousands) | ||||||||
| Three Months Ending | ||||||||
| March 31, 2017 | ||||||||
| Low | High | |||||||
| R&D and SG&A expense | $ | 40,000 | $ | 44,000 | ||||
| Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense: | ||||||||
| Stock-based compensation expense | (11,700 | ) | (13,700 | ) | ||||
| Non-GAAP R&D and SG&A expense | $ | 28,300 | $ | 30,300 | ||||
Contact: Bernie Blegen Chief Financial Officer Monolithic Power Systems, Inc. 408-826-0777 investors@monolithicpower.com
