Exhibit 99.4
RECONCILIATION OF GAAP TO NON GAAP OPERATING RESULTS
(U.S. dollars in thousands, except share and per share data)
THREE MONTHS THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED MARCH 31, ENDED JUNE 30,
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2006 2005 2006 2005 2006 2005
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GAAP costs of goods sold $160,779 $87,476 $174,380 $85,371 $335,159 $172,847
Stock based compensation (187) (45) (204) (49) (391) (94)
Amortization of intangible assets (92) - (90) - (182) -
Withholding taxes related to stock
option grants (104) - (17) - (121) -
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Non GAAP costs of goods sold $160,396 $87,431 $174,069 $85,322 $334,465 $172,753
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GAAP research and development, net $12,996 $9,274 $11,290 $8,175 $24,286 $17,449
Stock based compensation (726) (225) (821) (245) (1,547) (470)
Withholding taxes related to stock
option grants (417) - (69) - (486) -
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Non GAAP research and development,
net $11,853 $9,049 $10,400 $7,930 $22,253 $16,979
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GAAP selling and marketing $13,666 $8,580 $13,921 $8,484 $27,587 $17,064
Stock based compensation (691) (296) (978) (321) (1,669) (617)
Amortization of intangible assets (329) - (322) - (651) -
Withholding taxes related to stock
option grants (856) (296) (440) (296) (1,296) (592)
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Non GAAP selling and marketing $11,790 $7,988 $12,181 $7,867 $23,971 $15,855
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GAAP general and administrative $9,199 $4,037 $4,973 $2,463 $14,172 $6,500
Stock based compensation (710) (156) (1,014) (172) (1,724) (328)
Certain G&A expenses* (3,176) - - - (3,176) -
Withholding taxes related to stock
option grants (515) - (85) - (600) -
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Non GAAP general and administrative $4,798 $3,881 $3,874 $2,291 $8,672 $6,172
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GAAP operating income $12,853 $12,268 $14,546 $12,502 $27,399 $24,770
Stock based compensation 2,314 722 3,017 787 5,331 1,509
Amortization of intangible assets 421 - 412 - 833 -
Certain G&A expenses* 3,176 - - - 3,176 -
Withholding taxes related to stock
option grants 1,892 296 611 296 2,503 592
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Non GAAP operating income $20,656 $13,286 $18,586 $13,585 $39,242 $26,871
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GAAP other income, net $0 $0 $1,184 $0 $1,184 $0
Other income - - (1,184) - (1,184) -
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Non GAAP other income, net $0 $0 $0 $0 $0 $0
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GAAP taxes on income $1,112 $0 $1,414 $0 $2,526 $0
Amortization of intangible assets 144 - 144 - 288 -
Other income - - (367) - (367) -
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Non GAAP taxes on income $1,256 $0 $1,191 $0 $2,447 $0
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GAAP net income $3,133 $6,624 $5,651 $5,017 $8,784 $11,641
Stock based compensation 2,314 722 3,017 787 5,331 1,509
Amortization of intangible assets 277 - 268 - 545 -
Certain G&A expenses* 3,176 - - - 3,176 -
Withholding taxes related to stock
option grants 1,892 296 611 296 2,503 592
Other income - - (817) - (817) -
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Non GAAP net income $10,792 $7,642 $8,730 $6,100 $19,522 $13,742
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Basic net earnings per share
GAAP $0.08 $0.18 $0.15 $0.14 $0.23 $0.32
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Non GAAP $0.28 $0.21 $0.23 $0.17 $0.52 $0.38
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Diluted net earnings per share
GAAP $0.08 $0.17 $0.14 $0.13 $0.22 $0.30
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Non GAAP $0.26 $0.19 $0.21 $0.16 $0.47 $0.35
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Weighted average number of shares
used in computing basic net
earnings per share
GAAP 37,957,382 36,039,809 37,596,152 35,748,892 37,776,767 35,894,351
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Non GAAP 37,957,382 36,039,809 37,596,152 35,748,892 37,776,767 35,894,351
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Weighted average number of shares
used in computing diluted net
earnings per share
GAAP 42,465,375 41,070,719 41,344,978 38,479,010 41,905,177 39,774,865
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Non GAAP 42,842,218 41,262,582 42,601,169 38,915,901 42,721,694 40,089,242
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* Certain G&A expenses include expenses attributable to the review of prior
stock option grants and to the previously planned securities offering