KIRKLAND, Wash., Feb. 05, 2020 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (Nasdaq: 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