Exhibit 99.2
Reconciliation of GAAP to Non-GAAP Financial Measures for the Quarter Ended March 31, 2005
The following tables present a pro forma version of our revenues, gross profit, net income and earnings per share (basic and diluted) to illustrate our results from operations excluding the recorded non-cash sales discount relating to the warrants held by Quest. The tables present the most comparable GAAP measure to each non-GAAP measure, as well as the reconciliation to the corresponding GAAP measure. Our management believes that these non-GAAP financial measures provide a useful measure of our results of operations, excluding discounts that are not necessarily reflective of, or directly attributable to, our operations. We believe that these non-GAAP measures will allow investors to monitor our ongoing operating results and trends, gain a better understanding of our period-to-period performance, and gain a better understanding of our business and prospects for future performance. These non-GAAP results are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from similar non-GAAP measures used by other companies.
Three months ended March 31, 2005
| | | | | | | | | | | | | |
| | | | | | | Reconciliation: | | | | |
| | | | | | | Add Back | | | | |
| | | | | | | Non-Cash | | | | |
| | | GAAP | | | Sales Discount | | | Non-GAAP | |
| | | |
| Revenues | | $ | 19,327 | | | $ | 432 | | | $ | 19,759 | |
| Gross profit | | | 13,548 | | | | 432 | | | | 13,980 | |
| Net income | | | 925 | | | | 432 | | | | 1,357 | |
| Earnings per share: | | | | | | | | | | | | |
| | | | | | | $432 to revenues | | | | |
| Basic | | $ | 0.02 | | | used in calculation | | $ | 0.04 | |
| | | | | | | $432 to revenues | | | | |
| Diluted | | $ | 0.02 | | | used in calculation | | $ | 0.03 | |
Reconciliation of fiscal 2005 guidance for GAAP Earnings Per Share and Non-GAAP Earnings Per Share
| | | | | | | | | |
| | | Low end of range | | | High end of range | |
| Non-GAAP Earnings Per Share | | $ | 0.12 | | | $ | 0.19 | |
| Non-cash sales discount | | $ | 0.04 | | | $ | 0.04 | |
| | | | | | |
| GAAP Earnings Per Share | | $ | 0.08 | | | $ | 0.15 | |
The fiscal 2005 guidance constitutes forward-looking statements that involve risks and uncertainties that could cause actual results and outcomes to differ from what is expressed in those forward-looking statements. Please see the factors discussed relating to forward-looking statements contained in the press release filed as Exhibit 99.1 to this Report on Form 8-K.
