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| Q113 Reconciliation of GAAP to Non-GAAP Amount % of Net Revenues Amount % of Net Revenues GAAP gross margin 64,011 $ 69.2% 57,769 $ 66.5% Amortization of acquired intangibles 1,898 1,896 Stock-based compensation 870 916 Non-GAAP gross margin 66,779 $ 72.2% 60,581 $ 69.7% GAAP operating income 16,213 $ 17.5% 11,795 $ 13.6% Amortization of acquired intangibles 2,855 2,852 Stock-based compensation 5,017 4,889 Restructuring charges 2,315 104 Non-GAAP operating income 26,400 $ 28.5% 19,640 $ 22.6% GAAP net income 12,057 $ 7,317 $ Amortization of acquired intangibles 2,855 2,852 Stock-based compensation 5,017 4,889 Restructuring charges 2,315 104 Income tax adjustment (1) (5,281) (2,508) Non-GAAP net income 16,963 $ 12,654 $ GAAP net income 12,057 $ 7,317 $ Net interest 458 460 Provision for income taxes 3,853 4,306 Depreciation expense 2,945 2,881 Amortization expense 3,455 3,496 Stock-based compensation 5,017 4,889 Adjusted EBITDA 27,785 $ 23,349 $ Diluted net income per share GAAP 0.23 $ 0.14 $ Non-GAAP 0.32 $ 0.24 $ Shares used to compute diluted net income per share 52,598 53,363 (1) The estimated non-GAAP effective tax rate was 35% for the three months ended March 31, 2013 and 2012, respectively, and has been used to adjust the provision for income taxes for non-GAAP net income and non-GAAP diluted net income per share purposes. Three Months Ended March 31, 2013 Three Months Ended March 31, 2012 ADVENT SOFTWARE, INC. RECONCILIATION OF SELECTED CONTINUING OPERATIONS' GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except per share data) (Unaudited) To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States of America (or GAAP), Advent uses non-GAAP measures of continuing operations' gross margin, operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses, income, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advent’s underlying operational results and trends and our marketplace performance. In addition, these non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP. |