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Monolithic Power Systems Announces Results for the Fourth Quarter and Year Ended December 31, 2019, and an Increase in Quarterly Cash Dividend

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KIRKLAND, Wash., Feb. 05, 2020 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (MPWR), a leading company in high performance analog solutions, today announced financial results for the quarter and year ended December 31, 2019. The Company also announced that its Board of Directors has approved an increase in the quarterly cash dividend from $0.40 per share to $0.50 per share. The first quarter dividend of $0.50 per share will be paid on April 15, 2020 to all stockholders of record as of the close of business on March 31, 2020.

The financial results for the quarter ended December 31, 2019 are as follows:

  • Revenue was $166.7 million for the quarter ended December 31, 2019, a 1.2% decrease from $168.8 million for the quarter ended September 30, 2019 and an 8.6% increase from $153.5 million for the quarter ended December 31, 2018.

  • GAAP gross margin was 55.1% for the quarter ended December 31, 2019, compared with 55.1% for the quarter ended December 31, 2018.

  • Non-GAAP (1) gross margin was 55.5% for the quarter ended December 31, 2019, excluding the impact of $0.6 million for stock-based compensation expense, compared with 55.6% for the quarter ended December 31, 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 $61.2 million for the quarter ended December 31, 2019, compared with $51.5 million for the quarter ended December 31, 2018.

  • Non-GAAP (1) operating expenses were $41.8 million for the quarter ended December 31, 2019, excluding $18.1 million for stock-based compensation expense and $1.4 million for deferred compensation plan expense, compared with $38.7 million for the quarter ended December 31, 2018, excluding $14.3 million for stock-based compensation expense and $1.5 million for deferred compensation plan income.

  • GAAP operating income was $30.7 million for the quarter ended December 31, 2019, compared with $33.1 million for the quarter ended December 31, 2018.

  • Non-GAAP (1) operating income was $50.8 million for the quarter ended December 31, 2019, excluding $18.7 million for stock-based compensation expense and $1.4 million for deferred compensation plan expense, compared with $46.6 million for the quarter ended December 31, 2018, excluding $14.8 million for stock-based compensation expense, $0.2 million for the amortization of acquisition-related intangible assets and $1.5 million for deferred compensation plan income.

  • GAAP interest and other income, net, was $2.7 million for the quarter ended December 31, 2019, compared with interest and other expense, net, of $0.4 million for the quarter ended December 31, 2018.

  • Non-GAAP (1) interest and other income, net was $1.6 million for the quarter ended December 31, 2019, excluding $1.2 million for deferred compensation plan income, compared with $1.6 million for the quarter ended December 31, 2018, excluding $2.0 million for deferred compensation plan expense.

  • GAAP income before income taxes was $33.4 million for the quarter ended December 31, 2019, compared with $32.7 million for the quarter ended December 31, 2018.

  • Non-GAAP (1) income before income taxes was $52.3 million for the quarter ended December 31, 2019, excluding $18.7 million for stock-based compensation expense and $0.2 million for deferred compensation plan expense, compared with $48.2 million for the quarter ended December 31, 2018, excluding $14.8 million for stock-based compensation expense, $0.2 million for the amortization of acquisition-related intangible assets, and $0.5 million for deferred compensation plan expense.

  • GAAP net income was $32.4 million and GAAP earnings per share were $0.70 per diluted share for the quarter ended December 31, 2019. Comparatively, GAAP net income was $27.6 million and GAAP earnings per share were $0.61 per diluted share for the quarter ended December 31, 2018.

  • Non-GAAP (1) net income was $48.4 million and non-GAAP earnings per share were $1.04 per diluted share for the quarter ended December 31, 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 $44.6 million and non-GAAP earnings per share of $0.99 per diluted share for the quarter ended December 31, 2018, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects.

The financial results for the year ended December 31, 2019 are as follows:

  • Revenue was $627.9 million for the year ended December 31, 2019, a 7.8% increase from $582.4 million for the year ended December 31, 2018.

  • GAAP gross margin was 55.2% for the year ended December 31, 2019, compared with 55.4% for the year ended December 31, 2018.

  • Non-GAAP (1) gross margin was 55.6% for the year ended December 31, 2019, excluding the impact of $2.4 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $0.1 million for deferred compensation plan expense, compared with 55.9% for the year ended December 31, 2018, excluding the impact of $1.9 million for stock-based compensation expense and $0.8 million for the amortization of acquisition-related intangible assets.

  • GAAP operating expenses were $243.8 million for the year ended December 31, 2019, compared with $209.2 million for the year ended December 31, 2018.

  • Non-GAAP (1) operating expenses were $163.5 million for the year ended December 31, 2019, excluding $76.3 million for stock-based compensation expense and $3.9 million for deferred compensation plan expense, compared with $151.1 million for the year ended December 31, 2018, excluding $58.7 million for stock-based compensation expense and $0.6 million for deferred compensation plan income.

  • GAAP operating income was $102.6 million for the year ended December 31, 2019, compared with $113.5 million for the year ended December 31, 2018.

  • Non-GAAP (1) operating income was $185.4 million for the year ended December 31, 2019, excluding $78.7 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $4.0 million for deferred compensation plan expense, compared with $174.3 million for the year ended December 31, 2018, excluding $60.6 million for stock-based compensation expense, $0.8 million for the amortization of acquisition-related intangible assets, and $0.6 million for deferred compensation plan income.

  • GAAP interest and other income, net was $10.6 million for the year ended December 31, 2019, compared with $5.0 million for the year ended December 31, 2018.

  • Non-GAAP (1) interest and other income, net was $6.8 million for the year ended December 31, 2019, excluding $3.8 million for deferred compensation plan income, compared with $6.0 million for the year ended December 31, 2018, excluding $1.0 million for deferred compensation plan expense.

  • GAAP income before income taxes was $113.1 million for the year ended December 31, 2019, compared with $118.5 million for the year ended December 31, 2018.

  • Non-GAAP (1) income before income taxes was $192.1 million for the year ended December 31, 2019, excluding $78.7 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 $180.4 million for the year ended December 31, 2018, excluding $60.6 million for stock-based compensation expense, $0.8 million for the amortization of acquisition-related intangible assets and $0.4 million for deferred compensation plan expense.

  • GAAP net income was $108.8 million and GAAP earnings per share were $2.38 per diluted share for the year ended December 31, 2019. Comparatively, GAAP net income was $105.3 million and GAAP earnings per share were $2.36 per diluted share for the year ended December 31, 2018.

  • Non-GAAP (1) net income was $177.7 million and non-GAAP earnings per share were $3.88 per diluted share for the year ended December 31, 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 $166.8 million and non-GAAP earnings per share of $3.74 per diluted share for the year ended December 31, 2018, excluding stock-based compensation expense, 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
December 31,

Year Ended
December 31,

End Market

2019

2018

2019

2018

Computing and storage

$

55,644

$

43,537

$

189,215

$

159,121

Automotive

24,129

22,221

90,303

80,078

Industrial

26,741

26,928

99,381

88,472

Communications

21,866

20,147

84,794

70,589

Consumer

38,358

40,664

164,228

184,122

Total

$

166,738

$

153,497

$

627,921

$

582,382

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

Three Months Ended
December 31,

Year Ended
December 31,

Product Family

2019

2018

2019

2018

DC to DC

$

157,525

$

143,021

$

589,651

$

537,512

Lighting Control

9,213

10,476

38,270

44,870

Total

$

166,738

$

153,497

$

627,921

$

582,382

“We will continue executing on our strategy and winning market share," said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’ financial targets for the first quarter ending March 31, 2020:

  • Revenue in the range of $161 million to $167 million.

  • GAAP gross margin between 55.1% and 55.7%. Non-GAAP (1) gross margin between 55.4% and 56.0%, which excludes an estimated impact of stock-based compensation expenses of 0.3%.

  • GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $58.4 million and $62.4 million. Non-GAAP (1) R&D and SG&A expenses between $41.0 million and $43.0 million, which excludes an estimate of stock-based compensation expenses in the range of $17.4 million to $19.4 million.

  • Total stock-based compensation expense of $18.0 million to $20.0 million.

  • Litigation expenses ranging between $1.5 million and $2.5 million.

  • Interest income of $1.5 million to $1.7 million.

  • Fully diluted shares outstanding between 46.2 million and 47.2 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, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. 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, February 5, 2020. 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 9587067. 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, including epidemics in areas where we or our customers have operations; 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’s 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 November 1, 2019. The forward-looking statements in this press release and statements made during the accompanying teleconference represent MPS’s 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)

December 31,

2019

2018

ASSETS

Current assets:

Cash and cash equivalents

$

172,960

$

172,704

Short-term investments

282,437

204,577

Accounts receivable, net

52,704

55,214

Inventories

127,500

136,384

Other current assets

19,605

11,931

Total current assets

655,206

580,810

Property and equipment, net

228,315

150,001

Long-term investments

3,138

3,241

Goodwill

6,571

6,571

Deferred tax assets, net

17,193

16,830

Other long-term assets

45,952

35,979

Total assets

$

956,375

$

793,432

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

27,271

$

22,678

Accrued compensation and related benefits

26,164

18,799

Other accrued liabilities

44,790

38,962

Total current liabilities

98,225

80,439

Income tax liabilities

37,596

34,375

Other long-term liabilities

47,063

38,525

Total liabilities

182,884

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: 43,616 and 42,505, respectively

549,517

450,908

Retained earnings

229,450

194,728

Accumulated other comprehensive loss

(5,476

)

(5,543

)

Total stockholders’ equity

773,491

640,093

Total liabilities and stockholders’ equity

$

956,375

$

793,432


Monolithic Power Systems, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share amounts)

Three Months Ended
December 31,

Year Ended
December 31,

2019

2018

2019

2018

Revenue

$

166,738

$

153,497

$

627,921

$

582,382

Cost of revenue

74,802

68,904

281,596

259,714

Gross profit

91,936

84,593

346,325

322,668

Operating expenses:

Research and development

27,011

22,735

107,757

93,455

Selling, general and administrative

33,240

28,372

133,542

113,803

Litigation expense

991

409

2,464

1,922

Total operating expenses

61,242

51,516

243,763

209,180

Income from operations

30,694

33,077

102,562

113,488

Interest and other income (expense), net

2,731

(393

)

10,558

4,994

Income before income taxes

33,425

32,684

113,120

118,482

Income tax expense

989

5,046

4,281

13,214

Net income

$

32,436

$

27,638

$

108,839

$

105,268

Net income per share:

Basic

$

0.75

$

0.65

$

2.52

$

2.49

Diluted

$

0.70

$

0.61

$

2.38

$

2.36

Weighted-average shares outstanding:

Basic

43,496

42,467

43,165

42,247

Diluted

46,503

45,058

45,763

44,602


SUPPLEMENTAL FINANCIAL INFORMATION

STOCK-BASED COMPENSATION EXPENSE

(Unaudited, in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2019

2018

2019

2018

Cost of revenue

$

574

$

504

$

2,409

$

1,888

Research and development

4,784

3,822

19,584

15,990

Selling, general and administrative

13,322

10,516

56,706

42,729

Total stock-based compensation expense

$

18,680

$

14,842

$

78,699

$

60,607


RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

(Unaudited, in thousands, except per share amounts)

Three Months Ended
December 31,

Year Ended
December 31,

2019

2018

2019

2018

Net income

$

32,436

$

27,638

$

108,839

$

105,268

Net income as a percentage of revenue

19.5

%

18.0

%

17.3

%

18.1

%

Adjustments to reconcile net income to non-GAAP net income:

Stock-based compensation expense

18,680

14,842

78,699

60,607

Amortization of acquisition-related intangible assets

-

197

110

841

Deferred compensation plan expense

235

458

189

431

Tax effect

(2,937

)

1,432

(10,128

)

(313

)

Non-GAAP net income

$

48,414

$

44,567

$

177,709

$

166,834

Non-GAAP net income as a percentage of revenue

29.0

%

29.0

%

28.3

%

28.6

%

Non-GAAP net income per share:

Basic

$

1.11

$

1.05

$

4.12

$

3.95

Diluted

$

1.04

$

0.99

$

3.88

$

3.74

Shares used in the calculation of non-GAAP net income per share:

Basic

43,496

42,467

43,165

42,247

Diluted

46,503

45,058

45,763

44,602


RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited, in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2019

2018

2019

2018

Gross profit

$

91,936

$

84,593

$

346,325

$

322,668

Gross margin

55.1

%

55.1

%

55.2

%

55.4

%

Adjustments to reconcile gross profit to non-GAAP gross profit:

Stock-based compensation expense

574

504

2,409

1,888

Deferred compensation plan expense

29

-

54

-

Amortization of acquisition-related intangible assets

-

197

110

841

Non-GAAP gross profit

$

92,539

$

85,294

$

348,898

$

325,397

Non-GAAP gross margin

55.5

%

55.6

%

55.6

%

55.9

%



RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

(Unaudited, in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2019

2018

2019

2018

Total operating expenses

$

61,242

$

51,516

$

243,763

$

209,180

Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:

Stock-based compensation expense

(18,106

)

(14,338

)

(76,290

)

(58,719

)

Deferred compensation plan (expense) income

(1,383

)

1,513

(3,941

)

591

Non-GAAP operating expenses

$

41,753

$

38,691

$

163,532

$

151,052


RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

(Unaudited, in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2019

2018

2019

2018

Total operating income

$

30,694

$

33,077

$

102,562

$

113,488

Adjustments to reconcile total operating income to non-GAAP total operating income:

Stock-based compensation expense

18,680

14,842

78,699

60,607

Amortization of acquisition-related intangible assets

-

197

110

841

Deferred compensation plan expense (income)

1,412

(1,513

)

3,995

(591

)

Non-GAAP operating income

$

50,786

$

46,603

$

185,366

$

174,345


RECONCILIATION OF INTEREST AND OTHER INCOME (EXPENSE), NET, TO NON-GAAP INTEREST AND OTHER INCOME, NET

(Unaudited, in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2019

2018

2019

2018

Total interest and other income (expense), net

$

2,731

$

(393

)

$

10,558

$

4,994

Adjustments to reconcile interest and other income (expense) to non-GAAP interest and other income:

Deferred compensation plan (income) expense

(1,176

)

1,971

(3,806

)

1,022

Non-GAAP interest and other income, net

$

1,555

$

1,578

$

6,752

$

6,016



RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

(Unaudited, in thousands)

Three Months Ended
December 31,

Year Ended
December 31,

2019

2018

2019

2018

Total income before income taxes

$

33,425

$

32,684

$

113,120

$

118,482

Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:

Stock-based compensation expense

18,680

14,842

78,699

60,607

Amortization of acquisition-related intangible assets

-

197

110

841

Deferred compensation plan expense

235

458

189

431

Non-GAAP income before income taxes

$

52,340

$

48,181

$

192,118

$

180,361


2020 FIRST QUARTER OUTLOOK

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited)

Three Months Ending

March 31, 2020

Low

High

Gross margin

55.1

%

55.7

%

Adjustments to reconcile gross margin to non-GAAP gross margin:

Stock-based compensation expense

0.3

%

0.3

%

Non-GAAP gross margin

55.4

%

56.0

%



RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES

(Unaudited, in thousands)

Three Months Ending

March 31, 2020

Low

High

R&D and SG&A expense

$

58,400

$

62,400

Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense:

Stock-based compensation expense

(17,400

)

(19,400

)

Non-GAAP R&D and SG&A expense

$

41,000

$

43,000