Investor Relations
Quarterly Results
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Use of Non-GAAP Financial Measures Management evaluates and makes operating decisions using various performance measures. In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, we also consider adjusted gross profit, operating income and net income, which we will refer to as "non-GAAP gross profit," "non-GAAP operating income" and "non-GAAP net income." In calculating non-GAAP gross profit, non-GAAP operating income and non-GAAP net income, management excludes certain items to facilitate its review of the comparability of the company's operating performance on a period-to-period basis because such items are not, in management's review, related to the company's ongoing operating performance. Non-GAAP gross profit excludes amortization of purchased technology and patents, non-cash stock-based compensation charges and stock-based compensation charges related to tender offer. Non-GAAP net income and non-GAAP operating income exclude amortization of purchased technology, patents and intangibles, non-cash stock-based compensation charges and stock-based compensation charges related to tender offer, acquisition related costs, loss on sale/disposal of assets and technology, restructuring (benefits) charges, SEC settlement charges, SEC and compliance costs, litigation settlement for a patent legal matter, impairment of marketable securities, provision for income taxes and certain other items. We present non-GAAP gross profit, non-GAAP operating income and non-GAAP net income because we consider each to be an important supplemental measure of our performance. Management uses these non-GAAP financial measures to make operational and investment decisions, to evaluate the company's performance, to forecast and to determine compensation. However, non-GAAP gross profit, non-GAAP operating income and non-GAAP net income have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for GAAP gross profit, operating income and net income or any other performance measure determined in accordance with GAAP. Investors and potential investors are encouraged to review the reconciliation of non-GAAP financial measures to the comparable GAAP results. For more information on how we use non-GAAP financial measures and for more discussion on the limitations of such non-GAAP financial measures, please review the additional discussion in our press releases as linked from this page. |
