Gigamon (GIMO) 8-K Gigamon Reports Fourth Quarter and Fiscal Year 2013 Financial Results

Exhibit 99.1

MEDIA CONTACT:	INVESTOR CONTACT:
J.T. Eger	Cynthia Hiponia and Alice Kousoum
(408) 493-1247	(408) 493-1399
jt@gigamon.com	IR@gigamon.com

Gigamon Reports Fourth Quarter and Fiscal Year 2013 Financial Results

Fiscal Year 2013 Revenue Growth of 45%

Silicon Valley, CALIF., February 4, 2014 –Gigamon^® Inc. (NYSE:GIMO), a leader in traffic visibility solutions with the innovative Visibility Fabric™ architecture, today released financial results for the fourth quarter and fiscal year ended December 28, 2013.

Fiscal Fourth Quarter 2013 Financial Highlights:

• Revenues for the fourth quarter of fiscal 2013 were $43.1 million, compared to $31.9 million in the fourth quarter of fiscal 2012, representing growth of 35% year-over-year.

• GAAP gross margins of 80% in the fourth quarter of fiscal 2013, compared to 79% in the fourth quarter of fiscal 2012.

• Non-GAAP gross margins of 81% in the fourth quarter of fiscal 2013, compared to 79% in the fourth quarter of fiscal 2012.

• GAAP net loss for the fourth quarter of fiscal 2013 was $0.1 million, or $0.00 per diluted share, compared to GAAP net income of $2.1 million, or $0.12 per diluted share, in the fourth quarter of fiscal 2012.

• Non-GAAP net income for the fourth quarter of fiscal 2013 was $6.0 million, or $0.18 per diluted share, compared to non-GAAP net income of $4.9 million, or $0.28 per diluted share, in the fourth quarter of fiscal 2012.

• We generated $22.5 million of cash from operations.

Fiscal Year 2013 Financial Highlights:

• Revenues for fiscal year 2013 were $140.3 million, compared to $96.7 million in fiscal year 2012, representing growth of 45% year-over-year.

• GAAP gross margins of 78% in fiscal year 2013, compared to 79% in fiscal year 2012.

• Non-GAAP gross margins of 81% in fiscal year 2013, compared to 79% in fiscal year 2012.

• GAAP net loss for fiscal year 2013 was $9.5 million, or $0.39 per diluted share, compared to GAAP net income of $3.6 million, or $0.21 per diluted share, in fiscal year 2012.

• Non-GAAP net income for fiscal year 2013 was $15.9 million, or $0.53 per diluted share, compared to non-GAAP net income of $11.1 million, or $0.62 per diluted share, in fiscal year 2012.

• We generated $23.6 million of cash from operations.

“We are pleased to have exceeded our guidance for both revenue and earnings in the fourth quarter,” said Paul Hooper, CEO of Gigamon. “In the quarter we added 92 new customers, including 15 Fortune 1000 companies, continued to expand our portfolio of pervasive visibility and traffic intelligence solutions and laid the foundation for continued growth in 2014.”

Recent Business Highlights:

• Announced new applications and enhancements designed to provide Traffic Intelligence as the next phase of the Visibility Fabric evolution for enterprises and service providers.

• Introduced a NetFlow Generation application to optimize network management.

• Increased the attach rate of the GigaSMART^® platform in the fourth quarter.

• Named one of the fastest growing companies in North America on Deloitte’s 2013 Technology Fast 500™.

• Recognized as Business Analytics Innovator of the Year by Telecom Asia’s Readers’ Choice & Innovation Awards for vision and industry leadership.

Conference Call Information:

Gigamon will host an investor conference call and live webcast today at 5:00 p.m. ET (2:00 p.m. PT) to discuss its financial results for the fourth quarter and fiscal year ended December 28, 2013. To access the

conference call, dial 877-941-2068, using conference code 4659690. Callers outside the U.S. and Canada should dial 480-629-9712, using conference code 4659690. A replay of the conference call will be available through Tuesday, February 11, 2014. To access the replay, please dial 800-406-7325 and enter pass code 4659690. Callers outside the U.S. and Canada should dial 303-590-3030 and enter pass code 4659690. The live webcast will be accessible on Gigamon’s investor relations website athttp://investor.gigamon.com and will be archived and available on this site for twelve months.

Non-GAAP Financial Measures

In addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures. Non-GAAP financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similarly titled measures presented by other companies. Gigamon considers these non-GAAP financial measures to be important because they provide useful measures of the operating performance of the company, exclusive of unusual events or factors that do not directly affect what we consider to be our core operating performance, and are used by the company’s management for that purpose. In addition, investors often use similar measures to evaluate the operating performance of a company. Non-GAAP financial measures are presented for supplemental informational purposes only for understanding the company’s operating results. The non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from non-GAAP financial measures presented by other companies. Please see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure attached to this release.

Legal Notice Regarding Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this press release include, but are not limited to, our expectations that in 2014 our business will continue to grow. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to deliver and improve our products and successfully develop new products; customer acceptance and purchase of our existing products and new products; our ability to retain existing customers and generate new customers; the market for network traffic visibility solutions not continuing to develop; competition from other products and services; and general market, political, economic and business conditions. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with

the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the quarterly period ended September 28, 2013, filed with the Securities and Exchange Commission on November 7, 2013. The forward-looking statements in this press release are based on information available to Gigamon as of the date hereof, and Gigamon disclaims any obligation to update any forward-looking statements, except as required by law.

About the Visibility Fabric architecture

At Gigamon we realized that delivering the visibility essential to manage, analyze and secure the complex system that is the IT infrastructure requires a new approach. With millions of traffic flows across thousands of endpoints, visibility needs to be pervasive, intelligent and dynamic. Using our patented, unique technology, we created an innovative new approach for delivering this visibility called the Visibility Fabric architecture. This new approach is intelligent and versatile in its ability to enable visibility into the network. For more information visithttp://www.gigamon.com/traffic-visibility-fabric.

About Gigamon

Gigamon provides an intelligentVisibility Fabric™ architecture for enterprises, data centers and service providers around the globe. Our technology empowers infrastructure architects, managers and operators with pervasive and dynamic intelligent visibility of traffic across both physical and virtual environments without affecting the performance or stability of the production network. Through patented technologies and centralized management, the Gigamon GigaVUE portfolio of high availability and high density products intelligently delivers the appropriate network traffic to management, analysis, compliance and security tools. With over eight years’ experience designing and building traffic visibility products in the US, Gigamon solutions are deployed globally across vertical markets including over half of the Fortune 100 and many government and federal agencies.www.gigamon.com

Gigamon Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(unaudited)

	Three Months Ended						Fiscal Year Ended
	December 28,			December 31,			December 28,			December 31,
	2013			2012			2013(4)			2012
Revenue:
Product	$	31,698		$	23,710		$	101,717		$	69,516
Service		11,389			8,142			38,578			27,199
Total revenue		43,087			31,852			140,295			96,715
Cost of revenue:
Product (4)		7,646			6,064			26,103			18,039
Service		1,170			744			4,727			2,246
Cost of revenue (1), (2)		8,816			6,808			30,830			20,285
Gross profit		34,271			25,044			109,465			76,430
Operating expenses:
Research and development (1), (2)		10,341			5,406			42,067			17,730
Sales and marketing (1), (2)		18,004			12,061			72,024			39,359
General and administrative (1), (2)		4,682			3,904			25,575			11,665
Total operating expenses		33,027			21,371			139,666			68,754
Income (loss) from operations		1,244			3,673			(30,201	)		7,676
Other income (expense):
Interest income		60			3			95			64
Other expense, net		(17	)		(20	)		(94	)		(70	)
Income (loss) before income taxes		1,287			3,656			(30,200	)		7,670
Income tax (expense) benefit (3) (4)		(1,375	)		(11	)		20,663			(139	)
Net (loss) income		(88	)		3,645			(9,537	)		7,531
Accretion of preferred stock		—			(575	)		(1,088	)		(2,236	)
(Earnings) loss attributable to preferred stock holders		—			(980	)		1,107			(1,690	)
Net (loss) income to common stock holders	$	(88	)	$	2,090		$	(9,518	)	$	3,605
Net (loss) income per share attributable to common stock holders:
Basic	$	(0.00	)	$	0.12		$	(0.39	)	$	0.21
Diluted	$	(0.00	)	$	0.12		$	(0.39	)	$	0.21
Weighted-average number of shares used in per share amounts:
Basic		31,246			17,300			24,722			17,300
Diluted		31,246			17,393			24,722			17,303
(1)    Includes stock-based compensation expenses, as follows:
Cost of revenue	$	449		$	19		$	3,496		$	153
Research and development		2,620			182			11,467			542
Sales and marketing		2,606			334			11,034			893
General and administrative		1,511			735			6,546			2,011
Total stock-based compensation expenses	$	7,186		$	1,270		$	32,543		$	3,599
(2)    Includes performance unit plan compensation expenses, as follows:
Cost of revenue	$	—		$	—		$	353		$	—
Research and development		—			—			5,188			—
Sales and marketing		—			—			7,991			—
General and administrative		—			—			6,839			—
Total performance unit plan compensation expenses	$	—		$	—		$	20,371		$	—
(3)    Includes tax benefit upon conversion of LLC to a C Corporation on May 31, 2013	$	—		$	—		$	14,811		$	—

(4) The Company has revised its financial statements for the second quarter and third quarter of fiscal 2013 to reflect certain corrections related to its accounting for income taxes and inventory reserve releases, which also impacted the Company’s results for the full fiscal year 2013. In accordance with applicable accounting guidance, the Company concluded that these corrections were not material to any of its previously issued financial statements.

Please see the tables titled, “Impact of Revisions on Reported GAAP Statements of Operations” following the “GAAP Quarterly Trended Statements of Operations” table and “Impact of Revisions on Reported Non-GAAP Statement of Operations” following the “Non-GAAP Quarterly Trended Statement of Operations” table for further details.

Gigamon Inc.

Consolidated Balance Sheets

(In thousands)

(unaudited)

	December 28,			December 31,
	2013			2012
Assets
Current assets:
Cash and cash equivalents	$	79,908		$	18,675
Short-term investments		58,242			—
Accounts receivable, net		24,528			20,677
Inventories		1,484			3,736
Deferred income tax asset		3,574			—
Prepaid expenses and other current assets		5,606			3,407
Total current assets		173,342			46,495
Property and equipment, net		4,389			2,686
Deferred income tax asset, non-current		17,315			—
Other assets		471			2,316
Total assets	$	195,517		$	51,497
Liabilities, Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable	$	1,405		$	3,221
Accrued liabilities		22,401			13,889
Members’ distribution payable		476			4,821
Deferred revenue		37,592			23,917
Total current liabilities		61,874			45,848
Deferred revenue, non-current		9,884			6,903
Other liabilities		321			447
Commitments and contingencies
Series A preferred stock		—			28,344
Stockholders’ equity (deficit):
Common stock		3			1,625
Preferred stock		—			—
Treasury stock		(12,469	)		(12,469	)
Additional paid in capital		144,810			1,522
Accumulated other comprehensive income		23			—
Accumulated deficit		(8,929	)		(20,723	)
Total stockholders’ equity (deficit)		123,438			(30,045	)
Total liabilities, preferred stock and stockholders’ equity (deficit)	$	195,517		$	51,497

Gigamon Inc.

Consolidated Statements of Cash Flows

(In thousands)

(unaudited)

	Three Months Ended						Fiscal Year Ended
	December 28, 2013			December 31, 2012			December 28, 2013			December 31, 2012
Operating activities:
Net (loss) income	$	(88	)	$	3,645		$	(9,537	)	$	7,531
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		886			476			2,850			1,354
Stock-based compensation expense		7,186			1,270			32,543			3,599
Deferred income taxes		1,293			—			(20,889	)		—
Inventory (recovery) write-down		(326	)		(44	)		(816	)		1,543
Loss on disposal of fixed assets		—			1			14			52
Changes in operating assets and liabilities:
Accounts receivable, net		2,507			(9,358	)		(3,851	)		(4,280	)
Inventories		896			1,028			5,103			3,004
Prepaid expenses and other assets		(1,005	)		239			(3,274	)		1,621
Accounts payable		(109	)		1,516			(1,752	)		398
Accrued and other liabilities		4,757			(943	)		6,526			4,000
Deferred revenue		6,531			3,965			16,656			8,858
Net cash provided by operating activities		22,528			1,795			23,573			27,680
Investing activities:
Purchase of short-term investments		(19,383	)		—			(59,725	)		—
Sale of short-term investments		2,000			—			2,000			—
Purchase of property and equipment		(1,481	)		(501	)		(4,307	)		(2,006	)
Net cash used in investing activities		(18,864	)		(501	)		(62,032	)		(2,006	)
Financing activities:
(Offering costs paid for) proceeds from initial public offering, net		(111	)		(1,348	)		95,280			(1,920	)
Proceeds from follow-on public offering, net		10,232			—			10,232			—
Proceeds from exercise of stock options		1,608			—			1,719			—
Shares repurchased for tax withholdings on vesting of restricted stock units		(518	)		—			(518	)		—
Distribution of income to LLC members		(24	)		(4,981	)		(7,021	)		(18,181	)
Net cash provided by (used in) financing activities		11,187			(6,329	)		99,692			(20,101	)
Net increase (decrease) in cash and cash equivalents		14,851			(5,035	)		61,233			5,573
Cash and cash equivalents at beginning of period		65,057			23,710			18,675			13,102
Cash and cash equivalents at end of period	$	79,908		$	18,675		$	79,908		$	18,675

Gigamon Inc.

Reconciliation of Non-GAAP Financial Measures

Impact of Non-GAAP Adjustments on Reported Net (Loss) Income

(In thousands, except percentages)

(unaudited)

	Three Months Ended						Fiscal Year Ended
	December 28,			December 31,			December 28,			December 31,
	2013			2012			2013			2012
Reconciliation of Gross Profit and Gross Margin on a GAAP Basis to Gross Profit and Gross Margin on a Non-GAAP Basis:
Gross profit on a GAAP basis	$	34,271		$	25,044		$	109,465		$	76,430
Stock-based compensation expense		449			19			3,496			153
Performance unit plan compensation expense		—			—			353			—
Gross profit on a Non-GAAP basis	$	34,720		$	25,063		$	113,314		$	76,583
Revenue	$	43,087		$	31,852		$	140,295		$	96,715
Gross margin on a GAAP basis		80	%		79	%		78	%		79	%
Gross margin on a Non-GAAP basis		81	%		79	%		81	%		79	%
Reconciliation of Operating Income (Loss) and Operating Margin on a GAAP Basis to Operating Income and Operating Margin on a Non-GAAP Basis:
Operating income (loss) on a GAAP basis	$	1,244		$	3,673		$	(30,201	)	$	7,676
Stock-based compensation expense		7,186			1,270			32,543			3,599
Performance unit plan compensation expense		—			—			20,371			—
Operating income on a Non-GAAP basis	$	8,430		$	4,943		$	22,713		$	11,275
Operating margin on a GAAP basis		3	%		12	%		-22	%		8	%
Operating margin on a Non-GAAP basis		20	%		16	%		16	%		12	%
Reconciliation of Net (Loss) Income Attributable To Common Stockholders on a GAAP Basis to Net Income Attributable To Common Stockholders on a Non-GAAP Basis:
Net (loss) income attributable to common stock holders on a GAAP basis	$	(88	)	$	2,090		$	(9,518	)	$	3,605
Accretion of preferred stock		—			575			1,088			2,236
Earnings (loss) attributable to preferred stock holders		—			980			(1,107	)		1,690
Stock-based compensation expense		7,186			1,270			32,543			3,599
Performance unit plan compensation expense		—			—			20,371			—
Tax benefit upon conversion of LLC to a C Corporation		—			—			14,811			—
Income tax effect of Non-GAAP adjustments		(1,128	)		—			(42,295	)		—
Net income on a Non-GAAP basis	$	5,970		$	4,915		$	15,893		$	11,130

Gigamon Inc.

Reconciliation of Non-GAAP Financial Measures (continued)

Impact of Non-GAAP Adjustments on Reported Net (Loss) Income

(In thousands, except per share data)

(unaudited)

	Three Months Ended					Fiscal Year Ended
	December 28,			December 31,		December 28,			December 31,
	2013			2012		2013			2012
Reconciliation of Diluted Net (Loss) Income per Share on a GAAP Basis to Diluted Net Income per Share on a Non-GAAP Basis:
Diluted net (loss) income per share on a GAAP basis	$	(0.00	)	$	0.12	$	(0.39	)	$	0.21
Accretion of preferred stock		—			0.03		0.04			0.13
Earnings (loss) attributable to preferred stock holders		—			0.06		(0.04	)		0.10
Stock-based compensation expense		0.23			0.07		1.32			0.21
Performance unit plan compensation expense		—			—		0.82			—
Tax benefit upon conversion of LLC to a C corporation		—			—		0.60			—
Income tax effect on non-GAAP adjustments		(0.04	)		—		(1.71	)		—
Impact of difference in number of GAAP and non-GAAP diluted shares		(0.01	)		—		(0.11	)		(0.03	)
Diluted net income per share on a Non-GAAP basis	$	0.18		$	0.28	$	0.53		$	0.62
Reconciliation of GAAP Diluted Weighted-Average Number of Shares to Non-GAAP Diluted Weighted-Average Number of Shares:
GAAP diluted weighted-average number of shares		31,246			17,393		24,722			17,303
Dilutive impact due to stock options, restricted stock units and employee stock purchase plan purchase rights		2,100			214		5,323			570
Non-GAAP diluted weighted-average number of shares		33,346			17,607		30,045			17,873

Gigamon Inc.

Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations

Impact of Non-GAAP Adjustments on Reported Net (Loss) Income

For the Three Months and Fiscal Years Ended December 28, 2013 and December 31, 2012

(In thousands, except per share amounts and percentages)

(unaudited)

	Three Months Ended December 28, 2013									Three Months Ended December 31, 2012									Fiscal Year Ended December 28, 2013									Fiscal Year Ended December 31, 2012
	As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP			As Reported			Adjustments			Non-GAAP
Revenue:
Product	$	31,698		$	—		$	31,698		$	23,710		$	—		$	23,710		$	101,717		$	—		$	101,717		$	69,516		$	—		$	69,516
Service		11,389			—			11,389			8,142			—			8,142			38,578			—			38,578			27,199			—			27,199
Total revenue		43,087			—			43,087			31,852			—			31,852			140,295			—			140,295			96,715			—			96,715
Cost of revenue:
Product (1), (2)		7,646			(215	)		7,431			6,064			(9	)		6,055			26,103			(2,308	)		23,795			18,039			(44	)		17,995
Service (1), (2)		1,170			(234	)		936			744			(10	)		734			4,727			(1,541	)		3,186			2,246			(109	)		2,137
Cost of revenue		8,816			(449	)		8,367			6,808			(19	)		6,789			30,830			(3,849	)		26,981			20,285			(153	)		20,132
Gross profit		34,271			449			34,720			25,044			19			25,063			109,465			3,849			113,314			76,430			153			76,583
Product Gross Margin		76	%					77	%		74	%					74	%		74	%					77	%		74	%					74	%
Service Gross Margin		90	%					92	%		91	%					91	%		88	%					92	%		92	%					92	%
Total Gross Margin		80	%					81	%		79	%					79	%		78	%					81	%		79	%					79	%
Operating expenses:
Research and development (1), (2)		10,341			(2,620	)		7,721			5,406			(182	)		5,224			42,067			(16,655	)		25,412			17,730			(542	)		17,188
Sales and marketing (1), (2)		18,004			(2,606	)		15,398			12,061			(334	)		11,727			72,024			(19,025	)		52,999			39,359			(893	)		38,466
General and administrative (1), (2)		4,682			(1,511	)		3,171			3,904			(735	)		3,169			25,575			(13,385	)		12,190			11,665			(2,011	)		9,654
Total operating expenses		33,027			(6,737	)		26,290			21,371			(1,251	)		20,120			139,666			(49,065	)		90,601			68,754			(3,446	)		65,308
Income (loss) from operations		1,244			7,186			8,430			3,673			1,270			4,943			(30,201	)		52,914			22,713			7,676			3,599			11,275
Other income (expense):
Interest income		60			—			60			3			—			3			95			—			95			64			—			64
Other expense, net		(17	)		—			(17	)		(20	)		—			(20	)		(94	)		—			(94	)		(70	)		—			(70	)
Income (loss) before income taxes		1,287			7,186			8,473			3,656			1,270			4,926			(30,200	)		52,914			22,714			7,670			3,599			11,269
Income tax (expense) benefit (3), (4)		(1,375	)		(1,128	)		(2,503	)		(11	)		—			(11	)		20,663			(27,484	)		(6,821	)		(139	)		—			(139	)
Net (loss) income		(88	)		6,058			5,970			3,645			1,270			4,915			(9,537	)		25,430			15,893			7,531			3,599			11,130
Accretion of preferred stock		—			—			—			(575	)		575			—			(1,088	)		1,088			—			(2,236	)		2,236			—
(Earnings) loss attributable to preferred stock holders		—			—			—			(980	)		980			—			1,107			(1,107	)		—			(1,690	)		1,690			—
Net (loss) income to common stock holders	$	(88	)	$	6,058		$	5,970		$	2,090		$	2,825		$	4,915		$	(9,518	)	$	25,411		$	15,893		$	3,605		$	7,525		$	11,130
Net (loss) income per share attributable to common stockholders:
Basic	$	(0.00	)	$	0.19		$	0.19		$	0.12		$	0.16		$	0.28		$	(0.39	)	$	1.03		$	0.64		$	0.21		$	0.43		$	0.64
Diluted	$	(0.00	)	$	0.18		$	0.18		$	0.12		$	0.16		$	0.28		$	(0.39	)	$	0.92		$	0.53		$	0.21		$	0.41		$	0.62
Weighted-average number of shares used in per share amounts:
Basic		31,246			—			31,246			17,300			—			17,300			24,722			—			24,722			17,300			—			17,300
Diluted		31,246			2,100			33,346			17,393			214			17,607			24,722			5,323			30,045			17,303			570			17,873

Notes:

(1) Includes stock-based compensation in the three and twelve months ended December 28, 2013 and December 31, 2012.

(2) Includes performance unit plan compensation related expenses in the twelve months ended December 28, 2013.

(3) Amount for the twelve months ended December 28, 2013 includes tax benefit recorded upon the conversion from an LLC to a C Corporation on May 31, 2013.

(4) Includes income tax effect on non-GAAP adjustments for the three and twelve months ended December 28, 2013.

Gigamon Inc.

GAAP Quarterly Trended Statements of Operations

(In thousands, except per share data and percentages)

(unaudited)

		Three Months Ended
		Dec 28, 2013			Sept 28, 2013			June 29, 2013			Mar 30, 2013			Dec 31, 2012			Sept 30, 2012			Jun 30, 2012			Mar 31, 2012
Revenue
Product		$	31,698		$	29,146		$	23,354		$	17,519		$	23,710		$	18,700		$	16,213		$	10,893
Service			11,389			9,840			9,055			8,294			8,142			6,994			6,254			5,809
Total Revenue			43,087			38,986			32,409			25,813			31,852			25,694			22,467			16,702
Cost of Revenue
Product			7,646			6,789			6,944			4,724			6,064			4,524			4,086			3,365
Service			1,170			993			1,911			653			744			557			453			492
Total Cost of Revenue			8,816			7,782			8,855			5,377			6,808			5,081			4,539			3,857
Gross Profit			34,271			31,204			23,554			20,436			25,044			20,613			17,928			12,845
Product gross margin			76	%		77	%		70	%		73	%		74	%		76	%		75	%		69	%
Service gross margin			90	%		90	%		79	%		92	%		91	%		92	%		93	%		92	%
Gross Margin			80	%		80	%		73	%		79	%		79	%		80	%		80	%		77	%
Operating Expenses
Research & Development			10,341			8,958			17,097			5,671			5,406			4,809			3,570			3,945
Sales & Marketing			18,004			15,485			26,114			12,421			12,061			9,963			9,112			8,223
General and Administrative			4,682			4,696			12,688			3,509			3,904			3,720			2,735			1,306
Total Operating Expenses			33,027			29,139			55,899			21,601			21,371			18,492			15,417			13,474
Income (Loss) From Operations			1,244			2,065			(32,345	)		(1,165	)		3,673			2,121			2,511			(629	)
Operating Margin			3	%		5	%		-100	%		-5	%		12	%		8	%		11	%		-4	%
Interest Income			60			32			1			2			3			55			3			3
Other Expense, Net			(17	)		(52	)		(18	)		(7	)		(20	)		(17	)		(7	)		(26	)
Income before income tax (provision) benefit			1,287			2,045			(32,362	)		(1,170	)		3,656			2,159			2,507			(652	)
Income Tax (Provision) Benefit			(1,375	)		(502	)		22,569			(29	)		(11	)		(37	)		(28	)		(63	)
Net (Loss) Income			(88	)		1,543			(9,793	)		(1,199	)		3,645			2,122			2,479			(715	)
Accretion of preferred stock			—			—			(503	)		(585	)		(575	)		(564	)		(553	)		(544	)
Loss (earnings) distributable to preferred unit holders			—			—			538			569			(980	)		(497	)		(615	)		402
Net (loss) income attributable to common stockholders		$	(88	)	$	1,543		$	(9,758	)	$	(1,215	)	$	2,090		$	1,061		$	1,311		$	(857	)
Net (loss) income per share attributable to common stockholders:
Basic		$	(0.00	)	$	0.05		$	(0.51	)	$	(0.07	)	$	0.12		$	0.06		$	0.08		$	(0.05	)
	��
Diluted		$	(0.00	)	$	0.05		$	(0.51	)	$	(0.07	)	$	0.12		$	0.06		$	0.08		$	(0.05	)
Weighted average shares used in computing net (loss) income per share attributable to common stockholders:
Basic			31,246			30,933			19,247			17,300			17,300			17,300			17,300			17,300
Diluted			31,246			32,554			19,247			17,300			17,393			17,307			17,300			17,300

Gigamon Inc.

Impact of Revisions on Reported GAAP Statements of Operations

For the Three Months Ended June 29, 2013 and September 28, 2013

(In thousands, except per share amounts and percentages)

(unaudited)

Explanatory Note:

The Company’s financial statements for the second and third quarters of fiscal 2013 have been revised to reflect certain corrections related to its accounting for income taxes and inventory reserve releases. In accordance with applicable accounting guidance, the Company has concluded that these corrections were not material to any of its previously issued financial statements. As a result of these corrections, the Company has revised its results for the second and third quarters of fiscal 2013 as set forth below:

	Three Months Ended June 29, 2013												Three Months Ended September 28, 2013
	As Reported			Income Tax Adjustment			Inventory Adjustment			As Adjusted			As Reported			Income Tax Adjustment		Inventory Adjustment			As Adjusted
Revenue:
Product	$	23,354								$	23,354		$	29,146							$	29,146
Service		9,055									9,055			9,840								9,840
Total revenue		32,409			—			—			32,409			38,986			—		—			38,986
Cost of revenue:
Product		7,098						(154	)		6,944			6,744					45			6,789
Service		1,911									1,911			993								993
Cost of revenue		9,009			—			(154	)		8,855			7,737			—		45			7,782
Gross profit		23,400			—			154			23,554			31,249			—		(45	)		31,204
Product Gross Margin		70	%								70	%		77	%							77	%
Service Gross Margin		79	%								79	%		90	%							90	%
Total Gross Margin		72	%								73	%		80	%							80	%
Operating expenses:
Research and development		17,097									17,097			8,958								8,958
Sales and marketing		26,114									26,114			15,485								15,485
General and administrative		12,688									12,688			4,696								4,696
Total operating expenses		55,899			—			—			55,899			29,139			—		—			29,139
(Loss) income from operations		(32,499	)		—			154			(32,345	)		2,110			—		(45	)		2,065
Other income (expense):
Interest income		1									1			32								32
Other expense, net		(18	)								(18	)		(52	)							(52	)
(Loss) income before income taxes		(32,516	)		—			154			(32,362	)		2,090			—		(45	)		2,045
Income tax benefit (expense)		24,571			(2,002	)					22,569			(704	)		202					(502	)
Net (loss) income		(7,945	)		(2,002	)		154			(9,793	)		1,386			202		(45	)		1,543
Accretion of preferred stock		(503	)								(503	)		—								—
(Earnings) loss attributable to preferred stock holders		538									538			—								—
Net (loss) income to common stock holders	$	(7,910	)	$	(2,002	)	$	154		$	(9,758	)	$	1,386		$	202	$	(45	)	$	1,543
Net (loss) income per share attributable to common stockholders:
Basic	$	(0.41	)							$	(0.51	)	$	0.04							$	0.05
Diluted	$	(0.41	)							$	(0.51	)	$	0.04							$	0.05
Weighted-average number of shares used in per share amounts:
Basic		19,247									19,247			30,933								30,933
Diluted		19,247									19,247			32,554								32,554

Gigamon Inc.

Non-GAAP Quarterly Trended Statements of Operations

(In thousands, except per share data and percentages)

(unaudited)

	Three Months Ended
	Dec 28, 2013			Sept 28, 2013			June 29, 2013			Mar 30, 2013			Dec 31, 2012			Sept 30, 2012			Jun 30, 2012			Mar 31, 2012
Revenue:
Product	$	31,698		$	29,146		$	23,354		$	17,519		$	23,710		$	18,700		$	16,213		$	10,893
Services		11,389			9,840			9,055			8,294			8,142			6,994			6,254			5,809
Total revenue		43,087			38,986			32,409			25,813			31,852			25,694			22,467			16,702
Cost of revenue:
Product		7,431			6,660			4,992			4,712			6,055			4,491			4,084			3,365
Services		936			782			819			649			734			458			453			492
Total cost of revenue		8,367			7,442			5,811			5,361			6,789			4,949			4,537			3,857
Gross profit		34,720			31,544			26,598			20,452			25,063			20,745			17,930			12,845
Product Gross Margin		77	%		77	%		79	%		73	%		74	%		76	%		75	%		69	%
Services Gross Margin		92	%		92	%		91	%		92	%		91	%		93	%		93	%		92	%
Gross margin		81	%		81	%		82	%		79	%		79	%		81	%		80	%		77	%
Research and development		7,721			6,490			5,840			5,361			5,224			4,481			3,538			3,945
Sales and marketing		15,398			12,750			12,860			11,991			11,727			9,490			9,026			8,223
General and administrative		3,171			3,172			3,175			2,672			3,169			2,960			2,219			1,306
Total operating expenses		26,290			22,412			21,875			20,024			20,120			16,931			14,783			13,474
Income from operations		8,430			9,132			4,723			428			4,943			3,814			3,147			(629	)
Operating margin		20	%		23	%		15	%		2	%		16	%		15	%		14	%		-4	%
Interest income		60			32			1			2			3			55			3			3
Other expense, net		(17	)		(52	)		(18	)		(7	)		(20	)		(17	)		(7	)		(26	)
Income before provision for income taxes		8,473			9,112			4,706			423			4,926			3,852			3,143			(652	)
Income tax provision		(2,503	)		(3,374	)		(915	)		(29	)		(11	)		(37	)		(28	)		(63	)
Net income	$	5,970		$	5,738		$	3,791		$	394		$	4,915		$	3,815		$	3,115		$	(715	)
Basic EPS	$	0.19		$	0.19		$	0.20		$	0.02		$	0.28		$	0.22		$	0.18		$	(0.04	)
Diluted EPS	$	0.18		$	0.18		$	0.14		$	0.02		$	0.28		$	0.22		$	0.18		$	(0.04	)
Weighted Average Shares for Basic EPS		31,246			30,933			19,247			17,300			17,300			17,300			17,300			17,300
Weighted Average Shares for Diluted EPS		33,346			32,777			27,456			17,883			17,607			17,541			17,413			17,300

Gigamon Inc.

Impact of Revisions on Reported Non-GAAP Statements of Operations

For the Three Months Ended June 29, 2013 and September 28, 2013

(In thousands, except per share amounts and percentages)

(unaudited)

Explanatory Note:

The Company’s financial statements for the second and third quarters of fiscal 2013 have been revised to reflect certain corrections related to its accounting for inventory reserve releases. In accordance with applicable accounting guidance, the Company has concluded that these corrections were not material to any of its previously reported Non-GAAP financial statements. As a result of these corrections, the Company has revised its Non-GAAP results for the second and third quarters of fiscal 2013 as set forth below:

	Three Months Ended June 29, 2013									Three Months Ended September 28, 2013
	As Reported			Inventory Adjustment			As Adjusted			As Reported			Inventory Adjustment			As Adjusted
Revenue:
Product	$	23,354					$	23,354		$	29,146					$	29,146
Service		9,055						9,055			9,840						9,840
Total revenue		32,409			—			32,409			38,986			—			38,986
Cost of revenue:
Product		5,146			(154	)		4,992			6,615			45			6,660
Service		819						819			782						782
Cost of revenue		5,965			(154	)		5,811			7,397			45			7,442
Gross profit		26,444			154			26,598			31,589			(45	)		31,544
Product Gross Margin		78	%					79	%		77	%					77	%
Service Gross Margin		91	%					91	%		92	%					92	%
Total Gross Margin		82	%					82	%		81	%					81	%
Operating expenses:
Research and development		5,840						5,840			6,490						6,490
Sales and marketing		12,860						12,860			12,750						12,750
General and administrative		3,175						3,175			3,172						3,172
Total operating expenses		21,875			—			21,875			22,412			—			22,412
Income (loss) from operations		4,569			154			4,723			9,177			(45	)		9,132
Other income (expense):
Interest income		1						1			32						32
Other expense, net		(18	)					(18	)		(52	)					(52	)
Income (Loss) before income taxes		4,552			154			4,706			9,157			(45	)		9,112
Income tax expense		(915	)					(915	)		(3,374	)					(3,374	)
Net income (loss)		3,637			154			3,791			5,783			(45	)		5,738
Accretion of preferred stock		—						—			—						—
(Earnings) loss attributable to preferred stock holders		—						—			—						—
Net income (loss) to common stock holders	$	3,637		$	154		$	3,791		$	5,783		$	(45	)	$	5,738
Net income per share attributable to common stockholders:
Basic	$	0.19					$	0.20		$	0.19					$	0.19
Diluted	$	0.13					$	0.14		$	0.18					$	0.18
Weighted-average number of shares used in per share amounts:
Basic		19,247						19,247			30,933						30,933
Diluted		27,456						27,456			32,777						32,777