T E CHNOLO G Y G i=IOU;::t N'orHJAAIP IMDUirH !;tj l'lQ n-GAAP m•ro;lud m!J 1\dJIIIgrQ!!<lin$ or.d -.v •n cwr $$ lill mcomxw:t mg $IOP•r•h l!<>'--nt J)/ 1••• •• $41J)I;Jio!nl•l lr$1,$11r• qf Ou r 11$11' Q f h $li< JIM!0$1,rli<$ hlllr•t;olQ no ;111d )""' $hlluld nQ1 <;Q n"""' 1h1n <l n Qr ti-.J;jm •• $hi$ lo r •110lly$1 $ Qf Qllr flllaoo:lsl re&ulls US OAAP he ched tab!!.>p!O'>\ de a reconcl stJOn o/ ee.ch oort-G/\1\P me&Bll'"Lo Lhe mo6L near!cornparable meaure •moor US O_AAP /o411151>Mnt5 to II WO"Icalr.5ullilfJKIII rvtro&p <-nY• •dopWol) <>f ASC g R•" "l,l!j lro111 Con1r.!c"ti IW<th CtOfrlel'i-The Compo n y a:hlod ASC GOO Re••nua fJ>IIm C..nlr.u:ts. wfth Cuslcm.,.s effKb'll> Joru•IJ 1 , 201ll usmg 1111! fu Jd ocbw odop'hon ll"il!lh cd. Undor 1111! full ldro!Jil!OC w odcph:m ll"il!lhcd, 1ho Compollo'/ proson1s r""""'"• far """""'I amioomp:r.lll.w penorls,., "'"' odJUslod b»is, roft ocbng lho now a:cau nlmg slo nd or a. Th.. ar.;l h!ilhfy lflllerdepandant Yollll ana li" ri)' malllaNi!lca 5'-'!(X)and oGler seMces, I1EII o1 Lhe related cos ot s!l!es H<SOOncany !he Company has aoooul'or sales on a gross s, Yollll third pari)' ITlOM sign• collll11111(JQCI o-f aoopllrg !he standard rE!.-s 1o !he I"EICQII bon ot rav"8ru8 for SO"rtw.ara - ur oolin.::ludod in 1ol "'""-Recoll<ilia.tiool ol n..t s•tto odjus'led Ill"'"" billinlll" 4Smi iam l Yea r elided J une 30, 2017 Year ended J un£ 30, 2.016 Yea r ended J une 30, .20:15 Si11 months ended June :a.-o.• 2011 Adjust d f!!\'0!5$ bill im gs AdjUJ d gr05$ bilin.gs M)ust d f!J•O$$ bi'llin gs Adjusted gro!l$ bi ll ings conot sale Cost ot s;a l'e.s (q.st of Co5t of s;a ll!s Co.st of s;a les gf05$ if lli n:gs Net Sa les Net Sales sa les Net Sa e Net Sales N'etSa ll!s 0.0 s H rdW&r• S< 5rprod : el $-75.9 95.4 76_() 4.9 $ 6U 87. 7 (0..0) $-(82.5) 6$.9 5.2 143.9 10.7 $ 148..9 173.7 $ $-148.9 10.7 $ $ $ $ $ 143.9 184.7 l!.48--4 156.5 1413.4 11.4 (90.5) (173.9) (163.0) (145.2) Maln!enance ancl service Software·security & highly interdependent with support 70.3 {66.7) 3.6 59. 2 {56.2) 3.0 120.8 {114.9) 5.9 95.4 {90.5) 4.9 77.1 {73.2) 3.9 Total $ (157.2) $ (218.4) $ 241.6 84.5 $ 215.8 (138.7) $ 77.1 449.4 $ (288.8) $ 160.6 $ 418.1 (253.5) 164.6 382.1 $ $ 163.7 We define adjusted gross billings as net sales in accordance with US GAAP, adjusted for the cost of sales related to Sohware - security and highly interdependent with support and Maintenance, support and other services. We provided a reconciliation of Adjusted gross billings to net sales, which is the most directly comparable US GAAP measure. We use Adjusted gross billings of product and services as a supplemental measure of our performance to gain insight into the volume of business generated by our business, and to analyze the changes to our accounts receivable and accounts payable. Our use of Adjusted gross billings of product and services as analytical tools has limitations, and you should not consider them in isolation or as substitutes for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate Adjusted gross billings of product and services or similarly titled measures differently, which may reduce their usefulness as comparative measures. Net income (loss) reconciled to Net income excluding separation expenses, net oftaxes (Non-GAAP)$000's: Six IOOUlhs ended 480 2,446 jiill. 2,S92 Net income (loss) Separation expenses Income tax benefit related to separation expenses Net income excluding separation expenses, net of taxes 2,:592 2.488 Diluted earnings (loss) per share reconciled to Diluted earnings per share excluding separation expenses, net of taxes (Non-GAAP): Six mont.hs: ended June 30, Jmte 30. Diluted earnings (loss) per share Separation expenses Income tax benefit related to separation expenses Diluted earnings per share excluding separation expenses, net of taxes 0.10 o.ss O.l7 O.ll O.l7 (1) We define Net income excluding separation expenses, net of taxes, as Net income (loss), plus Separation expense, less the income tax benefit attributable to the separation expenses. We provided a reconciliation of Net income excluding separation expenses, net of taxes, to Net income, as well as the related amounts per share, which are the most directly comparable US GAAP measure. We use Net income excluding separation expense as a supplemental measure of our performance to gain insight into comparison of our businesses profitability when compared to the prior year. Our use of Net income excluding separation expenses, net of taxes has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate separation expenses net of taxes, or similarly titled measures differently, which may reduce their usefulness as comparative measures. 16 WAVSIOE