| SUPPLEMENTAL FINANCIAL INFORMATION | |||||||||||
| STOCK-BASED COMPENSATION EXPENSE | |||||||||||
| (Unaudited, in thousands) | |||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | ||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||
| Cost of revenue | $ | 641 | $ | 471 | $ | 1,834 | $ | 1,384 | |||
| Research and development | 4,960 | 3,979 | 14,801 | 12,168 | |||||||
| Selling, general and administrative | 15,699 | 10,393 | 43,384 | 32,213 | |||||||
| Total stock-based compensation expense | $ | 21,300 | $ | 14,843 | $ | 60,019 | $ | 45,765 | |||
| RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME | |||||||||||||||
| (Unaudited, in thousands, except per share amounts) | |||||||||||||||
|
Three Months Ended
September 30, |
Nine Months Ended
September 30, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Net income | $ | 29,528 | $ | 31,568 | $ | 76,402 | $ | 77,630 | |||||||
| Net income as a percentage of revenue | 17.5 | % | 19.7 | % | 16.6 | % | 18.1 | % | |||||||
| Adjustments to reconcile net income to non-GAAP net income: | |||||||||||||||
| Stock-based compensation expense | 21,300 | 14,843 | 60,019 | 45,765 | |||||||||||
| Amortization of acquisition-related intangible assets | 8 | 197 | 110 | 644 | |||||||||||
| Deferred compensation plan income | (61 | ) | (66 | ) | (46 | ) | (26 | ) | |||||||
| Tax effect | (1,254 | ) | 800 | (7,190 | ) | (1,746 | ) | ||||||||
| Non-GAAP net income | $ | 49,521 | $ | 47,342 | $ | 129,295 | $ | 122,267 | |||||||
| Non-GAAP net income as a percentage of revenue | 29.3 | % | 29.6 | % | 28.0 | % | 28.5 | % | |||||||
| Non-GAAP net income per share: | |||||||||||||||
| Basic | $ | 1.14 | $ | 1.12 | $ | 3.00 | $ | 2.90 | |||||||
| Diluted | $ | 1.08 | $ | 1.06 | $ | 2.84 | $ | 2.75 | |||||||
| Shares used in the calculation of non-GAAP net income per share: | |||||||||||||||
| Basic | 43,308 | 42,362 | 43,055 | 42,173 | |||||||||||
| Diluted | 45,833 | 44,669 | 45,516 | 44,450 | |||||||||||
