As described under “Use of Non-GAAP Financial Measures” above, ACM presents non-GAAP gross margin, operating income and net income as supplemental measures to GAAP financial measures, each of which excludes stock-based compensation (“SBC”) from the equivalent GAAP financial line items. The following tables reconcile gross margin, operating income and net income to the related non-GAAP financial measures:
| Three Months Ended December 31, | |||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||
| Actual | SBC | Adjusted | Actual | SBC | Adjusted | ||||||||||||||
| (GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | ||||||||||||||||
| (In thousands) | |||||||||||||||||||
| Revenue | $ | 24,608 | $ | - | $ | 24,608 | $ | 20,848 | $ | - | $ | 20,848 | |||||||
| Cost of revenue | (12,165 | ) | (37 | ) | (12,128 | ) | (10,532 | ) | (27 | ) | (10,505 | ) | |||||||
| Gross profit | 12,443 | (37 | ) | 12,480 | 10,316 | (27 | ) | 10,343 | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing | (3,223 | ) | (76 | ) | (3,147 | ) | (1,845 | ) | (5 | ) | (1,840 | ) | |||||||
| Research and development | (3,302 | ) | (154 | ) | (3,148 | ) | (4,156 | ) | (124 | ) | (4,032 | ) | |||||||
| General and administrative | (2,069 | ) | (386 | ) | (1,683 | ) | (1,675 | ) | (436 | ) | (1,239 | ) | |||||||
| Income from operations | $ | 3,849 | $ | (653 | ) | $ | 4,502 | $ | 2,640 | $ | (592 | ) | $ | 3,232 | |||||
| Net income attributable to ACM Research, Inc. | $ | 3,944 | $ | (653 | ) | $ | 4,597 | $ | 2,286 | $ | (592 | ) | $ | 2,878 | |||||
| Year Ended December 31, | |||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||
| Actual | SBC | Adjusted | Actual | SBC | Adjusted | ||||||||||||||
| (GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | ||||||||||||||||
| (In thousands) | |||||||||||||||||||
| Revenue | $ | 107,524 | $ | - | $ | 107,524 | $ | 74,643 | $ | 74,643 | |||||||||
| Cost of revenue | (56,870 | ) | (250 | ) | (56,620 | ) | (40,194 | ) | (71 | ) | (40,123 | ) | |||||||
| Gross profit | 50,654 | (250 | ) | 50,904 | 34,449 | (71 | ) | 34,520 | |||||||||||
| Operating expenses: | |||||||||||||||||||
| Sales and marketing | (11,902 | ) | (328 | ) | (11,574 | ) | (9,611 | ) | (120 | ) | (9,491 | ) | |||||||
| Research and development | (12,900 | ) | (1,093 | ) | (11,807 | ) | (10,380 | ) | (255 | ) | (10,125 | ) | |||||||
| General and administrative | (8,061 | ) | (1,901 | ) | (6,160 | ) | (7,987 | ) | (2,917 | ) | (5,070 | ) | |||||||
| Income from operations | $ | 17,791 | $ | (3,572 | ) | $ | 21,363 | $ | 6,471 | $ | (3,363 | ) | $ | 9,834 | |||||
| Net income attributable to ACM Research, Inc. | $ | 18,894 | $ | (3,572 | ) | $ | 22,466 | $ | 6,574 | $ | (3,363 | ) | $ | 9,937 | |||||
