The following table sets forth our unaudited quarterly Consolidated Statement of Operations data for each of the eight quarters ended December 31, 2019. In management’s opinion, the data has been prepared on the same basis as the audited Consolidated Financial Statements included in this report, and reflects all necessary adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of this data.



	Fiscal 2019
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	80,106		$	84,865		$	115,725		$	122,178
Gross profit ⁽¹⁾	41,849			43,928			75,540			61,695
Net income (loss)	(11,306		)	(11,845		)	11,657			5,570
Net income (loss) per share:
Basic	$	(0.13	)	$	(0.13	)	$	0.13		$	0.06
Diluted	$	(0.13	)	$	(0.13	)	$	0.12		$	0.06
Shares used in per share calculations:
Basic	88,165			88,931			89,964			91,124
Diluted	88,165			88,931			97,596			97,499
	Fiscal 2018
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
	(In thousands, except per share amounts)
Quarterly Data:
Net revenue	$	90,127		$	99,160		$	100,616		$	113,655
Gross profit ⁽¹⁾	47,183			51,603			50,102			60,321
Net income (loss) ^{(2) (3)}	(13,694		)	(2,913		)	(7,758		)	3,330
Net income (loss) per share:
Basic and diluted	$	(0.16	)	$	(0.03	)	$	(0.09	)	$	0.04
Shares used in per share calculations:
Basic	83,912			85,304			86,321			86,846
Diluted	83,912			85,304			86,321			89,028

(1) Gross margin in the first, second and fourth quarter of fiscal 2019 was 52.2%, 51.8% and 50.5%. The movement in gross margin in these quarters was primarily due to product mix. Gross margin increased to 65.3% in the third quarter of 2019 primarily due to the recognition of $37.5 million in software license revenue from the Comcast CableOS software license agreement during the third quarter of fiscal 2019. Gross margin decreased to 49.8% during the third quarter of 2018 compared to 52.0% during the second quarter of 2018 and increased to 53.1% during the fourth quarter primarily as a result of product mix.

(2) During the third and the fourth quarter of 2019, the Company recorded net income primarily due to growing success of our Cable OS solution and with stronger gross margins due to increase in revenue from Software. During the fourth quarter of 2018, the Company recorded net income primarily due to higher revenues with stronger gross margins of 53.1% coupled with reduced operating expenses as a result of our vigilant cost management.

(3) During the fourth quarter of 2019, the Company recorded a one-time benefit of approximately $2.0 million due to changes in the Company's global tax structure. In addition, the Company recorded a one-time benefit of approximately $0.8 million due to a valuation allowance release for one of its foreign subsidiaries due to changes in forecasted taxable income resulting from the Company receiving a favorable tax ruling during the first quarter of 2019. During the fourth quarter of 2018, the Company released $1.0 million of valuation allowance associated with one of Company’s foreign subsidiaries.