EX-99.1 2 f40897exv99w1.htm EXHIBIT 99.1 exv99w1
         
Exhibit 99.1
(BROCADE LOGO)
BROCADE CONTACTS
Public Relations
  Investor Relations
Leslie Davis
  Alex Lenke
Tel: 408-333-5260
  Tel: 408-333-6758
lmdavis@brocade.com
  alenke@brocade.com
Brocade Reports Second Quarter Fiscal Year 2008 Results
New Product Ramp Helps Drive Record Revenue and Strong Earnings
SAN JOSE, Calif., May 14 /PRNewswire-FirstCall/ — — Brocade® (NASDAQ: BRCD), the leader in data center networking solutions that help enterprises connect and manage their information, today reported financial results for its second fiscal quarter, which ended April 26, 2008.
Commenting on the Company’s second quarter financial results, Michael Klayko, Brocade CEO, said, “It was another very good quarter for Brocade as we continued our excellent operational execution and performance. Our financial results were better than the Company expected, we added to the momentum of our aggressive product cycle, and we acquired Strategic Business Systems, Inc. (SBS), a privately held provider of data center-focused professional services, which significantly broadens our services offerings and expertise in the evolving data center market.”
Second Fiscal Quarter 2008 Business Highlights
  •   Sales of the Company’s new DCX Backbone exceeded revenue expectations and contributed to a record revenue quarter of the Company’s Director-class products.
 
  •   Brocade augmented its growing services business with the acquisition of SBS. SBS has deep skill sets and experience in several data center disciplines, including networking, security, storage, and virtualization.
 
  •   The Company started shipping the Brocade File Management Engine, or FME, in late Q2. This breakthrough product offers a number of industry firsts, most notably the ability to migrate files while they are in use, which helps customers avoid costly downtime.
 
  •   During the quarter, the Company finalized the development of a family of new 8Gbit/sec fabric switches that complement the DCX Backbone. These new switches, announced on May 13th, 2008, double the performance of previous models while consuming 40% less energy. The Company expects the majority of its major OEM partners to be in the market with these new switches in Brocade’s Q3, beginning with IBM and Sun.
 
  •   On May 13th, 2008 the Company also announced the availability of its new server HBA products that, when combined with Brocade’s new 8Gb/sec switches, directors and DCX Backbone, deliver a new level of end-to-end data center networking performance. The new Brocade HBAs are expected to be generally available in June.
Brocade
1745 Technology Dr., San Jose, CA 95110
T. 408.333.8000 F. 408.333.8101
www.brocade.com

 

 

Second Fiscal Quarter 2008 Financial Highlights and Additional Financial Information
  •   Brocade’s non-GAAP effective tax-rate was 30.7% in Q2 08, and its GAAP tax rate was -272%. The GAAP rate includes a P&L benefit of $167M due to the release of the valuation allowance previously recorded against the Company’s deferred tax assets. The Company has determined that it is more likely than not that it will realize the benefits of the deferred tax assets and the valuation allowance was released accordingly.
 
  •   In Q2, the Company achieved record revenue in its director product line, its embedded blade switch product line, and its services business. In addition, Brocade generated more cash from operations in Q2 08 than any previous quarter in the company’s history.
 
  •   The Company’s total installed base of SAN ports was approximately 17.3 million.
 
  •   In Q2 Average Selling Price (ASP) declines were in the low single digits compared to Q1 08.
 
  •   Net stock-based compensation expense was $11.2 million and has been excluded from the Company’s non-GAAP results.
 
  •   In Q2, the Company repurchased approximately 6.9 million shares of the Company’s common stock for approximately $50.2 million. As of the end of Q2 08, the Company had $452.3 million remaining under its $800 million total stock buyback program.
                         
    Q2 2008   Q1 2008   Q2 2007
Revenue
   $ 354.9 M     $ 347.8 M     $ 345.3 M  
GAAP net income
   $ 184.8 M     $ 19.8 M     $ 0.8 M  
GAAP EPS — diluted
   $ 0.47     $ 0.05     $ 0.00  
Non-GAAP net income
   $ 59.7 M     $ 64.2 M     $ 46.6 M  
Non-GAAP EPS — diluted
   $ 0.15     $ 0.16     $ 0.11  
Non-GAAP gross margin
     61.1 %     60.5 %     53.4 %
Non-GAAP operating margin
     22.9 %     23.8 %     16.8 %
Cash flow from operations
   $ 111.0 M     $ 79.2 M     $ 46.2 M  
 
Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. A detailed reconciliation between GAAP and non-GAAP information is contained in the tables included herein.
                         
As a % of total revenues   Q2 2008   Q1 2008   Q2 2007
OEM revenues
     86 %     88 %     85 %
Channel/Direct revenues
     14 %     12 %     15 %
10% or greater customers revenues (3)
     65 %     66 %     67 %
Domestic revenues
     62 %     62 %     65 %
International revenues
     38 %     38 %     35 %
Service revenues
     17 %     14 %     13 %
                         
    Q2 2008   Q1 2008   Q2 2007
Cash equivalents and investments, net of convertible debt
  $ 627.9 M     $ 614.9 M     $ 674.5 M  
Deferred revenues
   $ 140.9 M     $ 136.6 M     $ 126.0 M  
Capital expenditures
   $ 14.1 M     $ 17.2 M     $ 14.2 M  
Stock repurchases (in dollars)
   $ 50.2 M     $ 80.0 M     $ 60.0 M  
Stock repurchases (in shares)
     6.9 M       11.1 M       6.3 M  
Days sales outstanding
   43 days   40 days   40 days
Employees at end of period
     2,759       2,457       2,440  

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Non-GAAP Financial Measures
This press release and the related conference call contain non-GAAP financial measures. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP.
Management believes that non-GAAP net income and other non-GAAP measures used in this press release allow management to gain a better understanding of the Company’s comparative operating performance from period-to-period and to its competitors’ operating results. Management also believes these non-GAAP measures help indicate the Company’s baseline performance before gains, losses or charges that are considered by management to be outside ongoing operating results. Accordingly, management uses these non-GAAP measures for planning and forecasting of future periods and in making decisions regarding operations performance and the allocation of resources. Management believes these non-GAAP earnings measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
  •   the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results;
 
  •   the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
 
  •   a better understanding of how management plans and measures the Company’s underlying business; and
 
  •   an easier way to compare the Company’s most recent results of operations against investor and analyst financial models.
Management excludes certain gains or losses and benefits or costs in determining non-GAAP net income that are the result of infrequent events, or arise outside the ordinary course of our continuing operations. Management believes that it is appropriate to evaluate the Company’s operating performance by excluding those items that are not indicative of ongoing operating results or limit comparability. Such items include: (i) legal fees associated with indemnification obligations to former employees and other related costs, (ii) acquisition and integration costs, and (iii) legal fees associated with certain pre-acquisition litigation, (iv) facilities lease loss and (v) gain/loss on sale of investments.
Management also excludes the following non-cash charges in determining non-GAAP net income: (i) stock-based compensation and (ii) amortization of purchased intangible assets, and (iii) facilities lease loss. Because of varying available valuation methodologies, subjective assumptions and the variety of award types, management believes that the exclusion of stock-based compensation allows for more accurate comparisons of our operating results to our peer companies. Further, management believes that excluding stock-based compensation expense allows for a more accurate comparison of our financial results to previous periods during which our equity-based awards were not required to be reflected on our income statement. Management believes that the expense associated with the amortization of acquisition-related intangible assets is appropriate to be excluded because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have short lives and exclusion of the amortization expense allows comparisons of operating results that are consistent over time for the Company’s newly acquired and long-held businesses.
Finally, management believes that it is appropriate to exclude the tax effects of the items noted above as well as the release of the valuation allowance in order to present a more meaningful measure of non-GAAP net income.
Limitations. These non-GAAP measures have limitations, however, because they do not include all items of income and expense that impact the Company. Management compensates for these limitations by also considering the Company’s GAAP results. The non-GAAP financial measures the Company uses are not prepared in accordance with, and should not be considered an alternative to, measurements required by GAAP, such as operating income, net income and income per share, and should not be considered

Page 3 of 10

 

measures of the Company’s liquidity. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. In addition, these non-GAAP financial measures may not be comparable to similar measures reported by other companies.
Second Quarter Fiscal 2008 Conference Call and Web Cast Information
Brocade management will host a conference call to discuss second quarter 2008 results on Wednesday, May 14, 2008 at 2:00 p.m. Pacific Time. To access the live Web Cast, please visit Brocade’s Website at http://www.brcd.com at least 20 minutes prior to the call to download any necessary audio or plug-in software. A telephone replay will be available approximately two hours after the conference ends and will be available until 5:00 p.m. Pacific Time on May 21, 2008. A replay of the conference call will be available via the Web Cast at http://www.brcd.com for approximately twelve months. To access the replay, please dial 888-203-1112 for domestic access and 719-457-0820 for international callers; the access code for the telephone replay is #6776943.
Cautionary Statement
This press release contains statements that are forward-looking in nature, including statements regarding the Company’s new product offerings and market adoption. These statements are based on current expectations on the date of this press release and involve a number of risks and uncertainties, which may cause actual results to differ significantly from such estimates. The risks include, but are not limited to, the degree of market adoption of the Company’s new product and service offerings; market competition; the effect of changes in IT spending levels; our ability to realize anticipated benefits from acquisitions; the Company’s ability to anticipate future OEM and end-user product needs and to accurately forecast end-user demand; dependence on strategic partners; and the Company’s ability to manage its business effectively in a rapidly evolving market. Certain of these and other risks are set forth in more detail in “Item 1A. Risk Factors” in Brocade’s Quarterly Report on Form 10-Q for the fiscal quarter ended January 26, 2008. Brocade does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.
About Brocade
Brocade is the leading provider of data center networking solutions that help enterprises connect and manage their information. Organizations that use Brocade products and services are better able to optimize their IT infrastructures and ensure compliant data management. For more information, visit the Brocade Website at http://www.brocade.com or contact the company at info@brocade.com.
Brocade, Brocade B weave logo, Fabric OS, File Lifecycle Manager, McDATA, MyView, Secure Fabric OS, SilkWorm, and StorageX are registered trademarks and the Brocade B-wing logo and Tapestry are trademarks of Brocade Communications Systems, Inc., in the United States and/or in other countries. All other brands, products, or service names are or may be trademarks or service marks of, and are used to identify, products or services of their respective owners.
# # #

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BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
                                 
    Three Months Ended     Six Months Ended  
    April 26,     April 28,     April 26,     April 28,  
    2008     2007     2008     2007  
Net revenues
                                
Product
   $ 295,584     $ 300,438     $ 593,529     $ 507,654  
Services
     59,311       44,830       109,214       61,771  
 
                        
Total net revenues
     354,895       345,268       702,743       569,425  
Cost of revenues
                                
Product
     116,628       140,980       234,404       213,292  
Services
     32,814       33,440       66,309       43,918  
 
                        
Total cost of revenues
     149,442       174,420       300,713       257,210  
 
                        
Gross margin
     205,453       170,848       402,030       312,215  
Operating expenses:
                                
Research and development
     61,131       58,303       119,336       100,694  
Sales and marketing
     69,985       59,364       133,160       97,951  
General and administrative
     13,316       13,570       25,683       20,975  
Legal fees associated with indemnification obligations, SEC investigation and other related costs
     4,789       15,234       14,448       20,462  
Acquisition and integration costs
     —       7,564       —       14,997  
Amortization of intangible assets
     7,909       7,977       15,818       8,887  
Facilities lease losses
     (477 )     —       (477 )     —  
 
                        
Total operating expenses
     156,653       162,012       307,968       263,966  
 
                        
Income from operations
     48,800       8,836       94,062       48,249  
Interest and other income, net
     7,306       10,788       18,791       18,244  
Interest expense
     (1,760 )     (2,054 )     (3,281 )     (2,058 )
Loss on investments, net
     (4,725 )     —       (6,949 )     —  
 
                        
Income before provision for income taxes
     49,621       17,570       102,623       64,435  
Income tax provision/(benefit)
     (135,167 )     16,727       (102,010 )     30,273  
 
                        
Net income
   $ 184,788     $ 843     $ 204,633     $ 34,162  
 
                        
 
                                
Net income per share — Basic
   $ 0.49     $ 0.00     $ 0.54     $ 0.10  
 
                        
Net income per share — Diluted
   $ 0.47     $ 0.00     $ 0.52     $ 0.10  
 
                        
Shares used in per share calculation — Basic
     374,827       395,574       379,010       334,215  
 
                        
Shares used in per share calculation — Diluted
     393,471       411,989       398,375       348,563  
 
                        

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BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                 
    April 26,     October 27,  
    2008     2007  
Assets
                
Current assets:
                
Cash and cash equivalents
   $ 513,533     $ 315,755  
Short-term investments
     195,566       325,846  
 
            
Total cash, cash equivalents and short-term investments
     709,099       641,601  
Marketable equity securities
     —       14,205  
Accounts receivable, net
     167,879       175,755  
Inventories
     12,418       18,017  
Deferred tax asset
     64,502       22,781  
Prepaid expenses and other current assets
     45,985       39,841  
 
            
Total current assets
     999,883       912,200  
 
                
Long-term investments
     87,392       137,524  
Property and equipment, net
     210,872       204,052  
Goodwill
     306,637       384,376  
Intangible assets, net
     253,793       272,652  
Deferred tax asset
     153,767       167  
Other assets
     16,872       19,129  
 
            
Total assets
   $ 2,029,216     $ 1,930,100  
 
            
 
Liabilities and Stockholders’ Equity
                
 
                
Current liabilities:
                
Accounts payable
   $ 91,898     $ 108,810  
Accrued employee compensation
     78,885       76,017  
Deferred revenue
     102,990       94,533  
Current liabilities associated with lease losses
     13,941       12,807  
Purchase commitments
     27,238       23,176  
Other accrued liabilities
     63,072       94,358  
 
            
Total current liabilities
     378,024       409,701  
 
                
Convertible subordinated debt
     168,579       167,498  
Non-current liabilities associated with lease losses
     19,290       25,742  
Non-current liabilities — deferred taxes
     —       22,781  
Non-current deferred revenue
     37,875       36,344  
Other non-current liabilities
     42,893       1,376  
 
                
Stockholders’ equity
                
Common stock
     1,371,825       1,463,169  
Accumulated other comprehensive loss
     (1,650 )     (1,180 )
Accumulated deficit
     12,380       (195,331 )
 
            
Total stockholders’ equity
     1,382,555       1,266,658  
 
            
Total liabilities and stockholders’ equity
   $ 2,029,216     $ 1,930,100  
 
            

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BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended APRIL 26, 2008 and APRIL 28, 2007
(in thousands)
(unaudited)
                 
    Three Months Ended  
    April 26,     April 28,  
    2008     2007  
Cash flows from operating activities:
                
Net income
   $ 184,788     $ 843  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Release of valuation allowance
     (166,508 )     —  
Excess tax benefit from employee stock plans
     (3,105 )     6,153  
Depreciation and amortization
     28,635       32,289  
Loss on disposal of property and equipment
     567       55  
Net losses on investments and marketable equity securities
     4,780       —  
Non-cash compensation expense
     11,176       8,004  
Non-cash facilities lease loss benefit
     (477 )     —  
Provision for doubtful accounts receivable and sales returns
     1,620       1,535  
Changes in operating assets and liabilities:
                
Accounts receivable
     (10,116 )     49,873  
Inventories
     2,937       (3,627 )
Prepaid expenses and other assets
     (5,694 )     (3,906 )
Accounts payable
     13,491       (17,767 )
Accrued employee compensation
     18,713       (7,515 )
Deferred revenue
     4,282       3,949  
Other accrued liabilities
     28,235       (22,435 )
Liabilities associated with lease losses
     (2,365 )     (1,207 )
 
            
Net cash provided by operating activities
     110,959       46,244  
 
            
 
                
Cash flows from investing activities:
                
Purchases of property and equipment
     (14,072 )     (14,225 )
Purchases of short-term investments
     (26,656 )     (173,190 )
Proceeds from sale of marketable equity securities and equity investments
    4,123       —  
Proceeds from maturities and sale of short-term investments
     121,145       285,230  
Purchases of long-term investments
     (8,275 )     (39,625 )
Proceeds from maturities and sale of long-term investments
     22,331       2,150  
Cash acquired (paid) in connection with acquisitions, net of cash paid (acquired)
    (43,554 )     2  
Decrease in restricted cash
     —       5,839  
Cash acquired on merger with McDATA
     —       147,407  
 
            
Net cash provided by investing activities
     55,042       213,588  
 
            
 
                
Cash flows from financing activities:
                
Payments on capital lease obligations
     —       (706 )
Common stock repurchases
     (50,170 )     (59,874 )
Excess tax benefit from employees stock plans
     3,105       (6,153 )
Redemption of outstanding convertible debt
     —       (124,185 )
Proceeds from issuance of common stock, net
     6,876       45,193  
 
            
Net cash used in financing activities
     (40,189 )     (145,725 )
 
            
 
                
Effect of exchange rate fluctuations on cash and cash equivalents
     1,131       (76 )
 
            
 
                
Net increase in cash and cash equivalents
     126,943       114,031  
Cash and cash equivalents, beginning of period
     386,590       249,807  
 
            
Cash and cash equivalents, end of period
   $ 513,533     $ 363,838  
 
            

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BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended APRIL 26, 2008 and APRIL 28, 2007
(in thousands)
(unaudited)
                 
    Six Months Ended  
    April 26,     April 28,  
    2008     2007  
Cash flows from operating activities:
                
Net income
   $ 204,633     $ 34,161  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Release of valuation allowance
     (166,508 )     —  
Excess tax benefit from employee stock plans
     (7,030 )     (161 )
Depreciation and amortization
     59,524       40,802  
Loss on disposal of property and equipment
     1,196       203  
Net losses on investments and marketable equity securities
     6,447       —  
Non-cash compensation expense
     19,647       14,729  
Non-cash facilities lease loss benefit
     (477 )     —  
Provision for doubtful accounts receivable and sales returns
     3,309       1,662  
Changes in operating assets and liabilities:
                
Accounts receivable
     11,586       53,735  
Inventories
     5,599       (4,585 )
Prepaid expenses and other assets
     (2,383 )     (8,997 )
Accounts payable
     (16,792 )     (20,938 )
Accrued employee compensation
     2,597       (22,272 )
Deferred revenue
     9,988       12,274  
Other accrued liabilities
     63,665       (18,385 )
Liabilities associated with lease losses
     (4,841 )     (2,653 )
 
            
Net cash provided by operating activities
     190,160       79,575  
 
            
 
                
Cash flows from investing activities:
                
Purchases of property and equipment
     (31,251 )     (27,587 )
Purchases of short-term investments
     (101,575 )     (290,890 )
Proceeds from sale of marketable equity securities and equity investments
    9,926       —  
Proceeds from maturities and sale of short-term investments
     298,446       377,833  
Purchases of long-term investments
     (37,731 )     (91,801 )
Proceeds from maturities and sale of long-term investments
     22,483       5,847  
Cash paid in connection with acquisitions, net of cash acquired
     (43,554 )     (7,704 )
Decrease in restricted cash
     —       5,839  
Cash acquired on merger with McDATA
     —       147,407  
 
            
Net cash provided by investing activities
     116,744       118,944  
 
            
 
                
Cash flows from financing activities:
                
Payments on capital lease obligations
     —       (706 )
Common stock repurchases
     (130,181 )     (59,874 )
Excess tax benefit from employees stock plans
     7,030       161  
Redemption of outstanding convertible debt
     —       (124,185 )
Proceeds from issuance of common stock, net
     14,699       75,700  
 
            
Net cash used in financing activities
     (108,452 )     (108,904 )
 
            
 
                
Effect of exchange rate fluctuations on cash and cash equivalents
     (674 )     (145 )
 
            
 
                
Net increase in cash and cash equivalents
     197,778       89,470  
Cash and cash equivalents, beginning of period
     315,755       274,368  
 
            
Cash and cash equivalents, end of period
   $ 513,533     $ 363,838  
 
            

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BROCADE COMMUNICATIONS SYSTEMS, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP NET INCOME
(in thousands, except per share data)
(unaudited)
                         
    Three Months Ended  
    April 26,     January 26,     April 28,  
    2008     2008     2007  
Net income on a GAAP basis
   $ 184,788     $ 19,845     $ 843  
Adjustments:
                        
Stock-based compensation expense included in cost of revenues
     2,371       2,492       2,236  
Amortization of intangible assets expense included in cost of revenues
     8,512       11,328       11,328  
Legal fees associated with certain pre-acquisition litigation
     458       —       —  
 
                  
Total gross margin adjustments
     11,341       13,820       13,564  
Legal fees associated with indemnification obligations, SEC investigation and other related costs
     4,789       9,659       15,234  
Stock-based compensation expense included in research and development
     2,528       2,625       2,056  
Stock-based compensation expense included in sales and marketing
     3,146       1,986       1,682  
Stock-based compensation expense included in general and administrative
     3,131       1,371       944  
Amortization of intangible assets expense included in operating expenses
     7,909       7,909       7,977  
Acquisition and integration costs
     —       —       7,564  
Facilities lease losses
     (477 )     —       —  
 
                  
Total operating expense adjustments
     21,026       23,550       35,457  
 
                  
Total operating income adjustments
     32,367       37,370       49,021  
Loss on investments
     4,189       1,815       —  
Income tax effect of adjustments
     (161,658 )     5,206       (3,250 )
 
                  
Non-GAAP net income
   $ 59,686     $ 64,236     $ 46,614  
 
                  
 
                        
Non-GAAP net income per share — Basic
   $ 0.16     $ 0.17     $ 0.12  
 
                  
Non-GAAP net income per share — Diluted
   $ 0.15     $ 0.16     $ 0.11  
 
                  
 
                        
Shares used in non-GAAP per share calculation — Basic
     374,827       383,194       395,574  
 
                  
 
                        
Shares used in non-GAAP per share calculation — Diluted
     393,471       403,279       411,989  
 
                  
See explanation of non-GAAP information included herein.

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BROCADE COMMUNICATIONS SYSTEMS, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP NET INCOME
(in thousands, except per share data)
(unaudited)
                 
    Six Months Ended  
    April 26,     April 28,  
    2008     2007  
Net income on a GAAP basis
   $ 204,633     $ 34,161  
Adjustments:
                
Stock-based compensation expense included in cost of revenues
     4,863       3,677  
Amortization of intangible assets expense included in cost of revenues
     19,841       11,328  
Legal fees associated with certain pre-acquisition litigation
     458       —  
 
            
Total gross margin adjustments
     25,162       15,005  
Legal fees associated with indemnification obligations, SEC investigation and other related costs
     14,448       20,462  
Stock-based compensation expense included in research and development
     5,152       4,054  
Stock-based compensation expense included in sales and marketing
     5,132       3,068  
Stock-based compensation expense included in general and administrative
     4,502       1,597  
Amortization of intangible assets expense included in operating expenses
     15,818       8,887  
Acquisition and integration costs
     —       14,997  
Facilities lease losses
     (477 )     —  
 
            
Total operating expense adjustments
     44,575       53,065  
 
            
Total operating income adjustments
     69,737       68,070  
Loss on investments
     6,004       —  
Income tax effect of adjustments
     (156,451 )     (6,186 )
 
            
Non-GAAP net income
   $ 123,922     $ 96,045  
 
            
 
                
Non-GAAP net income per share — Basic
   $ 0.33     $ 0.29  
 
            
Non-GAAP net income per share — Diluted
   $ 0.32     $ 0.28  
 
            
 
                
Shares used in non-GAAP per share calculation — Basic
     379,010       334,215  
 
            
 
                
Shares used in non-GAAP per share calculation — Diluted
     398,375       348,563  
 
            
See explanation of non-GAAP information included herein.

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