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CST: 26/08/2019 01:54:36   

Monolithic Power Systems Announces Results for the Second Quarter Ended June 30, 2019

25 Days ago

KIRKLAND, Wash., July 31, 2019 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a leading company in high performance analog solutions, today announced financial results for the quarter ended June 30, 2019.

The financial results for the quarter ended June 30, 2019 are as follows:

  • Revenue was $151.0 million for the quarter ended June 30, 2019, a 6.8% increase from $141.4 million for the quarter ended March 31, 2019 and an 8.0% increase from $139.8 million for the quarter ended June 30, 2018.
  • GAAP gross margin was 55.1% for the quarter ended June 30, 2019, compared with 55.5% for the quarter ended June 30, 2018.
  • Non-GAAP (1) gross margin was 55.6% for the quarter ended June 30, 2019, excluding the impact of $0.7 million for stock-based compensation expense and $0.1 million for the amortization of acquisition-related intangible assets, compared with 56.0% for the quarter ended June 30, 2018, excluding the impact of $0.5 million for stock-based compensation expense and $0.2 million for the amortization of acquisition-related intangible assets.
  • GAAP operating expenses were $63.1 million for the quarter ended June 30, 2019, compared with $52.7 million for the quarter ended June 30, 2018.
  • Non-GAAP (1) operating expenses were $40.3 million for the quarter ended June 30, 2019, excluding $22.0 million for stock-based compensation expense and $0.8 million for deferred compensation plan expense, compared with $36.9 million for the quarter ended June 30, 2018, excluding $15.4 million for stock-based compensation expense and $0.4 million for deferred compensation plan expense.
  • GAAP operating income was $20.1 million for the quarter ended June 30, 2019, compared with $24.9 million for the quarter ended June 30, 2018.
  • Non-GAAP (1) operating income was $43.7 million for the quarter ended June 30, 2019, excluding $22.7 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $0.8 million for deferred compensation plan expense, compared with $41.4 million for the quarter ended June 30, 2018, excluding $15.9 million for stock-based compensation expense, $0.2 million for the amortization of acquisition-related intangible assets and $0.4 million for deferred compensation plan expense.
  • GAAP interest and other income, net was $2.2 million for the quarter ended June 30, 2019, compared with $2.2 million for the quarter ended June 30, 2018.
  • Non-GAAP (1) interest and other income, net was $1.6 million for the quarter ended June 30, 2019, excluding $0.6 million for deferred compensation plan income, compared with $1.8 million for the quarter ended June 30, 2018, excluding $0.4 million for deferred compensation plan income.
  • GAAP income before income taxes was $22.3 million for the quarter ended June 30, 2019, compared with $27.1 million for the quarter ended June 30, 2018.
  • Non-GAAP (1) income before income taxes was $45.3 million for the quarter ended June 30, 2019, excluding $22.7 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $0.2 million for deferred compensation plan expense, compared with $43.2 million for the quarter ended June 30, 2018, excluding $15.9 million for stock-based compensation expense and $0.2 million for the amortization of acquisition-related intangible assets.
  • GAAP net income was $20.7 million and GAAP earnings per share were $0.45 per diluted share for the quarter ended June 30, 2019. Comparatively, GAAP net income was $24.2 million and GAAP earnings per share were $0.55 per diluted share for the quarter ended June 30, 2018.
  • Non-GAAP (1) net income was $41.9 million and non-GAAP earnings per share were $0.92 per diluted share for the quarter ended June 30, 2019, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects, compared with non-GAAP net income of $40.0 million and non-GAAP earnings per share of $0.90 per diluted share for the quarter ended June 30, 2018, excluding stock-based compensation income, amortization of acquisition-related intangible assets, net deferred compensation plan income and related tax effects.

The financial results for the six months ended June 30, 2019 are as follows:

  • Revenue was $292.4 million for the six months ended June 30, 2019, an 8.7% increase from $268.9 million for the six months ended June 30, 2018.
  • GAAP gross margin was 55.1% for the six months ended June 30, 2019, compared with 55.4% for the six months ended June 30, 2018.
  • Non-GAAP (1) gross margin was 55.6% for the six months ended June 30, 2019, excluding the impact of $1.2 million for stock-based compensation expense and $0.1 million for the amortization of acquisition-related intangible assets, compared with 55.9% for the six months ended June 30, 2018, excluding the impact of $0.9 million for stock-based compensation expense and $0.4 million for the amortization of acquisition-related intangible assets.
  • GAAP operating expenses were $119.4 million for the six months ended June 30, 2019, compared with $102.1 million for the six months ended June 30, 2018.
  • Non-GAAP (1) operating expenses were $79.3 million for the six months ended June 30, 2019, excluding $37.5 million for stock-based compensation expense and $2.6 million for deferred compensation plan expense, compared with $71.9 million for the six months ended June 30, 2018, excluding $30.0 million for stock-based compensation expense and $0.3 million for deferred compensation plan expense.
  • GAAP operating income was $41.8 million for the six months ended June 30, 2019, compared with $46.9 million for the six months ended June 30, 2018.
  • Non-GAAP (1) operating income was $83.2 million for the six months ended June 30, 2019, excluding $38.7 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $2.6 million for deferred compensation plan expense, compared with $78.6 million for the six months ended June 30, 2018, excluding $30.9 million for stock-based compensation expense, $0.4 million for the amortization of acquisition-related intangible assets and $0.3 million for deferred compensation plan expense.
  • GAAP interest and other income, net was $5.6 million for the six months ended June 30, 2019, compared with $2.7 million for the six months ended June 30, 2018.
  • Non-GAAP (1) interest and other income, net was $3.0 million for the six months ended June 30, 2019, excluding $2.6 million for deferred compensation plan income, compared with $2.4 million for the six months ended June 30, 2018, excluding $0.2 million for deferred compensation plan income.
  • GAAP income before income taxes was $47.4 million for the six months ended June 30, 2019, compared with $49.6 million for the six months ended June 30, 2018.
  • Non-GAAP (1) income before income taxes was $86.2 million for the six months ended June 30, 2019, excluding $38.7 million for stock-based compensation expense and $0.1 million for the amortization of acquisition-related intangible assets, compared with $81.0 million for the six months ended June 30, 2018, excluding $30.9 million for stock-based compensation expense and $0.4 million for the amortization of acquisition-related intangible assets.
  • GAAP net income was $46.9 million and GAAP earnings per share were $1.03 per diluted share for the six months ended June 30, 2019. Comparatively, GAAP net income was $46.1 million and GAAP earnings per share were $1.04 per diluted share for the six months ended June 30, 2018.
  • Non-GAAP (1) net income was $79.8 million and non-GAAP earnings per share were $1.76 per diluted share for the six months ended June 30, 2019, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects, compared with non-GAAP net income of $74.9 million and non-GAAP earnings per share of $1.69 per diluted share for the six months ended June 30, 2018, excluding stock-based compensation income, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects.

The following is a summary of revenue by end market for the periods indicated (in thousands):

    Three Months Ended June 30,     Six Months Ended June 30,  
End Market   2019     2018     2019     2018  
Computing and storage   $ 41,590     $ 36,957     $ 80,778     $ 67,927  
Automotive     21,225       20,340       41,742       38,072  
Industrial     22,438       19,121       43,778       36,676  
Communications     21,968       15,534       44,150       31,283  
Consumer     43,786       47,809       81,922       94,953  
Total   $ 151,007     $ 139,761     $ 292,370     $ 268,911  

The following is a summary of revenue by product family for the periods indicated (in thousands):

    Three Months Ended June 30,     Six Months Ended June 30,  
Product Family   2019     2018     2019     2018  
DC to DC   $ 139,691     $ 127,496     $ 272,402     $ 246,765  
Lighting Control     11,316       12,265       19,968       22,146  
Total   $ 151,007     $ 139,761     $ 292,370     $ 268,911  

“For the remainder of 2019, we remain cautious amidst the market uncertainty, but believe MPS is well positioned for long-term growth," said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’ financial targets for the third quarter ending September 30, 2019:

  • Revenue in the range of $162 million to $168 million.
  • GAAP gross margin between 54.9% and 55.5%. Non-GAAP (1) gross margin between 55.3% and 55.9%, which excludes an estimated impact of stock-based compensation expenses of 0.4%.
  • GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $57.1 million and $61.1 million. Non-GAAP (1) R&D and SG&A expenses between $39.4 million and $41.4 million, which excludes an estimate of stock-based compensation expenses in the range of $17.7 million to $19.7 million.
  • Total stock-based compensation expense of $18.3 million to $20.3 million.
  • Litigation expenses ranging between $400,000 and $600,000.
  • Interest income of $1.4 million to $1.6 million.
  • Fully diluted shares outstanding between 45.3 million and 46.3 million.

(1) Non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin, non-GAAP R&D and SG&A expenses, non-GAAP operating expenses, non-GAAP interest and other income, net, non-GAAP operating income and non-GAAP income before taxes differ from net income, earnings per share, gross margin, R&D and SG&A expenses, operating expenses, interest and other income, net, operating income and income before taxes determined in accordance with Generally Accepted Accounting Principles in the United States (GAAP). Non-GAAP net income and non-GAAP earnings per share exclude the effect of stock-based compensation expense, amortization of acquisition-related intangible assets, deferred compensation plan income/expense and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation expense and amortization of acquisition-related intangible assets. Non-GAAP operating expenses exclude the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP interest and other income, net excludes the effect of deferred compensation plan income/expense. Non-GAAP operating income excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Non-GAAP income before taxes excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation expense. Projected non-GAAP R&D and SG&A expenses exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of MPS' core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.  

Conference Call
MPS plans to conduct an investor teleconference covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, July 31, 2019. To access the conference call and the following replay of the conference call, go to http://ir.monolithicpower.com and click on the webcast link. From this site, you can listen to the teleconference, assuming that your computer system is configured properly. In addition to the webcast replay, which will be archived for all investors for one year on the MPS website, a phone replay will be available for seven days after the live call at (404) 537-3406, code number 5696076. This press release and any other information related to the call will also be posted on the website.

Safe Harbor Statement
This press release contains, and statements that will be made during the accompanying teleconference will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including, among other things, (i) projected revenues, GAAP and non-GAAP gross margin, GAAP and non-GAAP R&D and SG&A expenses, stock-based compensation expenses, litigation expenses, interest and other income, and diluted shares outstanding, (ii) our outlook for the long-term prospects of the company, including our performance against our business plan, revenue growth in certain of our market segments, our continued investment into R&D, expected revenue growth, customers' acceptance of our new product offerings, the prospects of our new product development, and our expectations regarding market and industry segment trends and prospects, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements of the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, our ability to attract new customers and retain existing customers; acceptance of, or demand for, MPS' products, in particular the new products launched recently, being different than expected; our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to increase market share in our targeted markets; competition generally and the increasingly competitive nature of our industry; any market disruptions or interruptions in MPS' schedule of new product development releases; adverse changes in production and testing efficiency of our products; our ability to realize the anticipated benefits of companies and products that we acquire, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; our ability to manage our inventory levels; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, including in foreign countries where MPS has offices or operations; adverse events arising from orders of governmental entities, including such orders that impact our customers, and adopting of new or amended accounting standards; the effect of catastrophic events; adequate supply of our products from our third-party manufacturing partners; the risks, uncertainties and costs of litigation in which we are involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on MPS' financial performance if its tax and litigation provisions are inadequate; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies; the ongoing consolidation of companies in the semiconductor industry; and other important risk factors identified in MPS' Securities and Exchange Commission (SEC) filings, including, but not limited to, our annual report on Form 10-K filed with the SEC on March 1, 2019, and our quarterly report on Form 10-Q filed with the SEC on May 10, 2019. The forward-looking statements in this press release and statements made during the accompanying teleconference represent MPS' projections and current expectations, as of the date hereof, not predictions of actual performance. MPS assumes no obligation to update the information in this press release or in the accompanying conference call.

About Monolithic Power Systems
Monolithic Power Systems, Inc. (MPS) provides small, highly energy efficient, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications. MPS' mission is to reduce total energy consumption in its customers' systems with green, practical, compact solutions. The company was founded by Michael Hsing in 1997 and is based in the United States. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

Contact:
Bernie Blegen
Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
investors@monolithicpower.com



Monolithic Power Systems, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value) 

    June 30,     December 31,  
    2019     2018  
ASSETS                
Current assets:                
Cash and cash equivalents   $ 197,012     $ 172,704  
Short-term investments     169,459       204,577  
Accounts receivable, net     55,398       55,214  
Inventories     143,622       136,384  
Other current assets     19,645       11,931  
Total current assets     585,136       580,810  
Property and equipment, net     213,830       150,001  
Long-term investments     3,215       3,241  
Goodwill     6,571       6,571  
Deferred tax assets, net     16,686       16,830  
Other long-term assets     42,675       35,979  
Total assets   $ 868,113     $ 793,432  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   $ 26,544     $ 22,678  
Accrued compensation and related benefits     22,960       18,799  
Other accrued liabilities     38,616       38,962  
Total current liabilities     88,120       80,439  
Income tax liabilities     32,402       34,375  
Other long-term liabilities     43,437       38,525  
Total liabilities     163,959       153,339  
Commitments and contingencies                
Stockholders' equity:                
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 43,234 and 42,505, respectively     503,759       450,908  
Retained earnings     204,533       194,728  
Accumulated other comprehensive loss     (4,138 )     (5,543 )
Total stockholders’ equity     704,154       640,093  
Total liabilities and stockholders’ equity   $ 868,113     $ 793,432  
                 



Monolithic Power Systems, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share amounts) 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
Revenue   $ 151,007     $ 139,761     $ 292,370     $ 268,911  
Cost of revenue     67,782       62,197       131,139       119,852  
   Gross profit     83,225       77,564       161,231       149,059  
Operating expenses:                                
Research and development     27,545       23,481       53,003       45,091  
Selling, general and administrative     35,058       28,561       65,611       55,879  
Litigation expense     503       640       781       1,171  
   Total operating expenses     63,106       52,682       119,395       102,141  
Income from operations     20,119       24,882       41,836       46,918  
Interest and other income, net     2,229       2,232       5,569       2,673  
Income before income taxes     22,348       27,114       47,405       49,591  
Income tax expense     1,655       2,908       531       3,529  
Net income   $ 20,693     $ 24,206     $ 46,874     $ 46,062  
                                 
Net income per share:                                
Basic   $ 0.48     $ 0.57     $ 1.09     $ 1.09  
Diluted   $ 0.45     $ 0.55     $ 1.03     $ 1.04  
Weighted-average shares outstanding:                                
Basic     43,109       42,237       42,929       42,079  
Diluted     45,483       44,400       45,358       44,341  
                                 



   
SUPPLEMENTAL FINANCIAL INFORMATION
STOCK-BASED COMPENSATION EXPENSE
(Unaudited, in thousands)
 
   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
Cost of revenue   $ 663     $ 480     $ 1,193     $ 913  
Research and development     5,412       4,194       9,841       8,188  
Selling, general and administrative     16,634       11,218       27,685       21,820  
Total stock-based compensation expense   $ 22,709     $ 15,892     $ 38,719     $ 30,921  
                                 



   
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts)
 
   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
Net income   $ 20,693     $ 24,206     $ 46,874     $ 46,062  
Net income as a percentage of revenue     13.7 %     17.3 %     16.0 %     17.1 %
                                 
Adjustments to reconcile net income to non-GAAP net income:                                
Stock-based compensation expense     22,709       15,892       38,719       30,921  
Amortization of acquisition-related intangible assets     51       197       102       447  
Deferred compensation plan expense (income)     151       (9 )     15       40  
Tax effect     (1,739 )     (332 )     (5,937 )     (2,546 )
Non-GAAP net income   $ 41,865     $ 39,954     $ 79,773     $ 74,924  
Non-GAAP net income as a percentage of revenue     27.7 %     28.6 %     27.3 %     27.9 %
                                 
Non-GAAP net income per share:                                
Basic   $ 0.97     $ 0.95     $ 1.86     $ 1.78  
Diluted   $ 0.92     $ 0.90     $ 1.76     $ 1.69  
                                 
Shares used in the calculation of non-GAAP net income per share:                                
Basic     43,109       42,237       42,929       42,079  
Diluted     45,483       44,400       45,358       44,341  
                                 


   
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited, in thousands)
 
   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
Gross profit   $ 83,225     $ 77,564     $ 161,231     $ 149,059  
Gross margin     55.1 %     55.5 %     55.1 %     55.4 %
                                 
Adjustments to reconcile gross profit to non-GAAP gross profit:                                
Stock-based compensation expense     663       480       1,193       913  
Amortization of acquisition-related intangible assets     51       197       102       447  
Non-GAAP gross profit   $ 83,939     $ 78,241     $ 162,526     $ 150,419  
Non-GAAP gross margin     55.6 %     56.0 %     55.6 %     55.9 %
                                 


   
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
 
   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
Total operating expenses   $ 63,106     $ 52,682     $ 119,395     $ 102,141  
                                 
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:                                
Stock-based compensation expense     (22,046 )     (15,412 )     (37,526 )     (30,008 )
Deferred compensation plan expense     (772 )     (410 )     (2,571 )     (273 )
Non-GAAP operating expenses   $ 40,288     $ 36,860     $ 79,298     $ 71,860  
                                 


   
RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands)
 
   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
Total operating income   $ 20,119     $ 24,882     $ 41,836     $ 46,918  
                                 
Adjustments to reconcile total operating income to non-GAAP total operating income:                                
Stock-based compensation expense     22,709       15,892       38,719       30,921  
Amortization of acquisition-related intangible assets     51       197       102       447  
Deferred compensation plan expense     772       410       2,571       273  
Non-GAAP operating income   $ 43,651     $ 41,381     $ 83,228     $ 78,559  
                                 


   
RECONCILIATION OF INTEREST AND OTHER INCOME, NET, TO NON-GAAP INTEREST AND OTHER INCOME, NET
(Unaudited, in thousands)
 
   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
Total interest and other income, net   $ 2,229     $ 2,232     $ 5,569     $ 2,673  
                                 
Adjustments to reconcile interest and other income to non-GAAP interest and other income:                                
Deferred compensation plan income     (620 )     (419 )     (2,556 )     (233 )
Non-GAAP interest and other income, net   $ 1,609     $ 1,813     $ 3,013     $ 2,440  
                                 


   
RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
(Unaudited, in thousands)
 
   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
Total income before income taxes   $ 22,348     $ 27,114     $ 47,405     $ 49,591  
                                 
Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:                                
Stock-based compensation expense     22,709       15,892       38,719       30,921  
Amortization of acquisition-related intangible assets     51       197       102       447  
Deferred compensation plan expense (income)     151       (9 )     15       40  
Non-GAAP income before income taxes   $ 45,259     $ 43,194     $ 86,241     $ 80,999  
                                 


   
2019 THIRD QUARTER OUTLOOK

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited)
 
       
    Three Months Ending  
    September 30, 2019  
    Low     High  
Gross margin     54.9 %     55.5 %
Adjustments to reconcile gross margin to non-GAAP gross margin:                
Stock-based compensation expense     0.4 %     0.4 %
Non-GAAP gross margin     55.3 %     55.9 %
                 


   
RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES
(Unaudited, in thousands)
 
   
    Three Months Ending  
    September 30, 2019  
    Low     High  
R&D and SG&A expense   $ 57,100     $ 61,100  
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   $ 39,400     $ 41,400  

 

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