| 2019 FOURTH QUARTER OUTLOOK | |||||||
| RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN | |||||||
| (Unaudited) | |||||||
| Three Months Ending | |||||||
| December 31, 2019 | |||||||
| Low | High | ||||||
| Gross margin | 54.8 | % | 55.4 | % | |||
| Adjustments to reconcile gross margin to non-GAAP gross margin: | |||||||
| Stock-based compensation expense | 0.4 | % | 0.4 | % | |||
| Non-GAAP gross margin | 55.2 | % | 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 | |||||||
| December 31, 2019 | |||||||
| Low | High | ||||||
| R&D and SG&A expense | $ | 56,200 | $ | 60,200 | |||
| Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense: | |||||||
| Stock-based compensation expense | (17,700 | ) | (19,700 | ) | |||
| Non-GAAP R&D and SG&A expense | $ | 38,500 | $ | 40,500 | |||
