Question

Stock based compensation (SBC) disclosure • $4.843 million of SBC in direct operating (cost of sales) • $4.052 million of SBC in selling and marketing • $2.657 million of SBC in R&D • $3.614 million of SBC in G&A Nonrecurring items • $0.210 million of integration and transaction costs in G&A • $1.264 million restructuring expenses in R&D • $0.042 million litigation gain allocated to Other Income Amortization • $3.290 million of amortization expense from nonrecurring purchases allocated to direct operating expenses (cost of sales) • $2.912 million of amortization expense from nonrecurring purchases allocated to selling and marketing Other • Tax Rate on Non-GAAP items: 40%

(1) Calculate Q1 2016 Non-GAAP gross profit:

(2) Calculate Q1 2016 Non-GAAP EBITDA (apply all relevant SBC and nonrecurring adjustments to EBITDA):

(3) Calculate Q1 2016 Non-GAAP operating income:

(4) Calculate Q1 2016 Non-GAAP Net Income.

Answer 1

1. Non GAAP gross profit or EBITDA

  

Cost of Sales			4.843
Selling and Marketing			4.052
R & D			2.657
Intergartion and Transaction Cost			0.21
Restructing Expense			1.264
Total Head			13.026
Less Tax @40%			5.21
Non GAAP Gross profit			7.82
Non GAAP EBITDA
Cost of Sales			4.843
Selling and Marketing			4.052
G & A Non recurring			3.614
Amortisation Expense			3.29
Non recurring selling and marketing			2.912
R & D			2.657
Intergartion and Transaction Cost			0.21
Restructing Expense			1.264
Total Head			22.842
Less Tax @40%			9.14
Non GAAP EBITDA(all relevant SBC)			13.71