MPWR Monolithic Power Systems Inc

Monolithic Power Systems, Inc. (“MPS”) (Nasdaq: MPWR), a fabless company with a global footprint that provides high-performance, semiconductor-based power electronic solutions, today announced financial results for the quarter ended June 30, 2023.

The financial results for the quarter ended June 30, 2023 are as follows:

	•	Revenue was $441.1 million for the quarter ended June 30, 2023, a 2.2% decrease from $451.1 million for the quarter ended March 31, 2023 and a 4.3% decrease from $461.0 million for the quarter ended June 30, 2022.
	•	GAAP gross margin was 56.1% for the quarter ended June 30, 2023, compared with 58.8% for the quarter ended June 30, 2022.
	•	Non-GAAP gross margin (1) was 56.5% for the quarter ended June 30, 2023, excluding the impact of $1.2 million for stock-based compensation expense and $0.3 million for deferred compensation plan expense, compared with 59.0% for the quarter ended June 30, 2022, excluding the impact of $1.2 million for stock-based compensation expense.
	•	GAAP operating expenses were $135.4 million for the quarter ended June 30, 2023, compared with $129.1 million for the quarter ended June 30, 2022.
	•	Non-GAAP operating expenses (1) were $96.0 million for the quarter ended June 30, 2023, excluding $36.8 million for stock-based compensation expense and $2.5 million for deferred compensation plan expense, compared with $92.7 million for the quarter ended June 30, 2022, excluding $41.7 million for stock-based compensation expense and $5.3 million for deferred compensation plan income.
	•	GAAP operating income was $112.3 million for the quarter ended June 30, 2023, compared with $141.9 million for the quarter ended June 30, 2022.
	•	Non-GAAP operating income (1) was $153.1 million for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense and $2.7 million for deferred compensation plan expense, compared with $179.4 million for the quarter ended June 30, 2022, excluding $42.9 million for stock-based compensation expense and $5.4 million for deferred compensation plan income.
	•	GAAP other income, net, was $6.5 million for the quarter ended June 30, 2023, compared with other expense, net, of $5.1 million for the quarter ended June 30, 2022.
	•	Non-GAAP other income, net (1) was $4.1 million for the quarter ended June 30, 2023, excluding $2.5 million for deferred compensation plan income, compared with non-GAAP other expense, net, of $7,000 for the quarter ended June 30, 2022, excluding $5.1 million for deferred compensation plan expense.
	•	GAAP income before income taxes was $118.9 million for the quarter ended June 30, 2023, compared with $136.8 million for the quarter ended June 30, 2022.
	•	Non-GAAP income before income taxes (1) was $157.2 million for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense and $0.3 million for net deferred compensation plan expense, compared with $179.4 million for the quarter ended June 30, 2022, excluding $42.9 million for stock-based compensation expense and $0.3 million for net deferred compensation plan income.
	•	GAAP net income was $99.5 million and $2.04 per diluted share for the quarter ended June 30, 2023. Comparatively, GAAP net income was $114.7 million and $2.37 per diluted share for the quarter ended June 30, 2022.
	•	Non-GAAP net income (1) was $137.5 million and $2.82 per diluted share for the quarter ended June 30, 2023, excluding $38.0 million for stock-based compensation expense, $0.3 million for net deferred compensation plan expense and $0.3 million for related tax effects, compared with $157.0 million and $3.25 per diluted share for the quarter ended June 30, 2022, excluding $42.9 million for stock-based compensation expense, $0.3 million for net deferred compensation plan income and $0.3 million for related tax effects.

The financial results for the six months ended June 30, 2023 are as follows:

	•	Revenue was $892.2 million for the six months ended June 30, 2023, a 6.4% increase from $838.7 million for the six months ended June 30, 2022.
	•	GAAP gross margin was 56.8% for the six months ended June 30, 2023, compared with 58.4% for the six months ended June 30, 2022.
	•	Non-GAAP gross margin (1) was 57.1% for the six months ended June 30, 2023, excluding the impact of $2.3 million for stock-based compensation expense and $0.5 million for deferred compensation plan expense, compared with 58.7% for the six months ended June 30, 2022, excluding the impact of $2.5 million for stock-based compensation expense and $0.1 million for deferred compensation plan income.
	•	GAAP operating expenses were $269.9 million for the six months ended June 30, 2023, compared with $251.8 million for the six months ended June 30, 2022.
	•	Non-GAAP operating expenses (1) were $192.0 million for the six months ended June 30, 2023, excluding $72.7 million for stock-based compensation expense, $5.1 million for deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $179.2 million for the six months ended June 30, 2022, excluding $80.2 million for stock-based compensation expense, $7.7 million for deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
	•	GAAP operating income was $236.6 million for the six months ended June 30, 2023, compared with $238.0 million for the six months ended June 30, 2022.
	•	Non-GAAP operating income (1) was $317.2 million for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $5.5 million for deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $313.1 million for the six months ended June 30, 2022, excluding $82.7 million for stock-based compensation expense, $7.8 million for deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
	•	GAAP other income, net, was $11.8 million for the six months ended June 30, 2023, compared with other expense, net, of $5.7 million for the six months ended June 30, 2022.
	•	Non-GAAP other income, net (1) was $6.8 million for the six months ended June 30, 2023, excluding $5.0 million for deferred compensation plan income, compared with $1.6 million for the six months ended June 30, 2022, excluding $7.3 million for deferred compensation plan expense.
	•	GAAP income before income taxes was $248.4 million for the six months ended June 30, 2023, compared with $232.3 million for the six months ended June 30, 2022.
	•	Non-GAAP income before income taxes (1) was $324.0 million for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $0.5 million for net deferred compensation plan expense and $0.1 million for amortization of purchased intangible assets, compared with $314.6 million for the six months ended June 30, 2022, excluding $82.7 million for stock-based compensation expense, $0.5 million for net deferred compensation plan income and $0.1 million for amortization of purchased intangible assets.
	•	GAAP net income was $209.3 million and $4.30 per diluted share for the six months ended June 30, 2023. Comparatively, GAAP net income was $194.2 million and $4.02 per diluted share for the six months ended June 30, 2022.
	•	Non-GAAP net income (1) was $283.5 million and $5.82 per diluted share for the six months ended June 30, 2023, excluding $75.0 million for stock-based compensation expense, $0.5 million for net deferred compensation plan expense, $0.1 million for amortization of purchased intangible assets and $1.4 million for related tax effects, compared with $275.3 million and $5.70 per diluted share for the six months ended June 30, 2022, excluding $82.7 million for stock-based compensation expense, $0.5 million for net deferred compensation plan income, $0.1 million for amortization of purchased intangible assets and $1.3 million for related tax effects.

The following is a summary of revenue by end market (in thousands):

		Three Months Ended June 30,								Six Months Ended June 30,
End Market		2023				2022				2023				2022
Storage and Computing		$	124,543			$	122,288			$	244,365			$	218,874
Enterprise Data			47,982				65,199				95,145				107,708
Automotive			104,394				61,019				209,736				115,565
Industrial			49,729				55,865				97,198				104,403
Communications			49,293				59,299				117,199				114,873
Consumer			65,187				97,334				128,550				177,295
Total		$	441,128			$	461,004			$	892,193			$	838,718

The following is a summary of revenue by product family (in thousands):

		Three Months Ended June 30,								Six Months Ended June 30,
Product Family		2023				2022				2023				2022
DC to DC		$	418,175			$	442,250			$	843,356			$	801,099
Lighting Control			22,953				18,754				48,837				37,619
Total		$	441,128			$	461,004			$	892,193			$	838,718

“We continue to execute our long-term strategy,” said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’s financial targets for the third quarter ending September 30, 2023:

	•	Revenue in the range of $464.0 million to $484.0 million.
	•	GAAP gross margin between 55.5% and 56.1%. Non-GAAP gross margin (1) between 55.7% and 56.3%, which excludes an estimated impact of stock-based compensation expenses of 0.2%.
	•	GAAP operating expenses, between $129.4 million and $133.4 million. Non-GAAP operating expenses (1) between $96.9 million and $98.9 million, which excludes estimated stock-based compensation expenses in the range of $32.5 million to $34.5 million.
	•	Total stock-based compensation expenses of $33.5 million to $35.5 million.
	•	Interest and other income of $3.0 million to $3.4 million.
	•	Fully diluted shares outstanding between 48.6 million and 49.0 million.

(1) Non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income (expense), net, non-GAAP operating income and non-GAAP income before taxes differ from net income, earnings per share, gross margin, operating expenses, other income (expense), net, operating income and income before taxes determined in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”). Non-GAAP net income and non-GAAP earnings per share exclude the effect of stock-based compensation expense, deferred compensation plan income/expense, amortization of purchased intangible assets and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP operating expenses exclude the effect of stock-based compensation expense, amortization of purchased intangible assets and deferred compensation plan income/expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income/expense. Non-GAAP operating income excludes the effect of stock-based compensation expense, amortization of purchased intangible assets and deferred compensation plan income/expense. Non-GAAP income before taxes excludes the effect of stock-based compensation expense, amortization of purchased intangible assets and deferred compensation plan income/expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation expense. Projected non-GAAP operating expenses exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors’ understanding of MPS’s core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.

Earnings WebinarMPS plans to host a Zoom webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, July 31, 2023. You can access the webinar at: https://mpsic.zoom.us/j/94201186204. The webinar will be archived and available for replay for one year under the Investor Relations page on the MPS website.

Safe Harbor StatementThis press release contains, and statements that will be made during the accompanying webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the sections “Business Outlook” and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation expenses, interest income, and fully diluted shares outstanding, (ii) our outlook for the third quarter of fiscal year 2023 and the near-term, medium-term and long-term prospects of the company, including our performance against our business plan, our ability to grow despite the softening in our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment into R&D, expected revenue growth, customers' acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements of the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued adverse changes to the global economy, including due to the Russia-Ukraine conflict and the global economic downturn; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, MPS’s products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the COVID-19 pandemic and the Russia-Ukraine conflict); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in MPS’s schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that we acquire, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which we are involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on MPS’s financial performance if its tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics, such as the COVID-19 pandemic, on the global economy and on our business; the risks associated with the financial market, economy and geopolitical uncertainties, including the recent banking collapse and the Russia-Ukraine conflict; and other important risk factors identified under the caption “Risk Factors” and elsewhere in MPS’s Securities and Exchange Commission (“SEC”) filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on February 24, 2023 and our Quarterly Report on Form 10-Q filed with the SEC on May 5, 2023. The forward-looking statements in this press release and statements made during the accompanying webinar represent MPS’s projections and current expectations, as of the date hereof, not predictions of actual performance. MPS assumes no obligation to update the information in this press release or in the accompanying webinar.

About Monolithic Power Systems Monolithic Power Systems, Inc. (“MPS”) is a fabless company with a global footprint that provides high-performance, semiconductor-based power electronic solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient and cost-effective, while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

Contact: Bernie BlegenChief Financial OfficerMonolithic Power Systems, Inc.408-826-0777investors@monolithicpower.com  

Monolithic Power Systems, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value)
		June 30,				December 31,
		2023				2022
ASSETS
Current assets:
Cash and cash equivalents		$	506,959			$	288,607
Short-term investments			433,527				449,266
Accounts receivable, net			169,180				182,714
Inventories			427,432				447,290
Other current assets			95,253				42,742
Total current assets			1,632,351				1,410,619
Property and equipment, net			341,911				357,157
Goodwill			6,571				6,571
Deferred tax assets, net			35,755				35,252
Other long-term assets			204,032				249,286
Total assets		$	2,220,620			$	2,058,885
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	70,614			$	61,461
Accrued compensation and related benefits			66,817				88,260
Other accrued liabilities			113,410				113,679
Total current liabilities			250,841				263,400
Income tax liabilities			54,032				53,509
Other long-term liabilities			76,658				73,374
Total liabilities			381,531				390,283
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,611 and 47,107, respectively			1,055,130				975,276
Retained earnings			827,356				716,403
Accumulated other comprehensive loss			(43,397	)			(23,077	)
Total stockholders’ equity			1,839,089				1,668,602
Total liabilities and stockholders’ equity		$	2,220,620			$	2,058,885

Monolithic Power Systems, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share amounts)
		Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Revenue		$	441,128			$	461,004			$	892,193			$	838,718
Cost of revenue			193,453				190,043				385,738				348,877
Gross profit			247,675				270,961				506,455				489,841
Operating expenses:
Research and development			63,688				57,131				127,397				111,234
Selling, general and administrative			71,662				71,942				142,457				140,585
Total operating expenses			135,350				129,073				269,854				251,819
Operating income			112,325				141,888				236,601				238,022
Other income (expense), net			6,543				(5,092	)			11,840				(5,726	)
Income before income taxes			118,868				136,796				248,441				232,296
Income tax expense			19,364				22,117				39,135				38,051
Net income		$	99,504			$	114,679			$	209,306			$	194,245
Net income per share:
Basic		$	2.10			$	2.46			$	4.42			$	4.17
Diluted		$	2.04			$	2.37			$	4.30			$	4.02
Weighted-average shares outstanding:
Basic			47,489				46,675				47,361				46,550
Diluted			48,756				48,286				48,705				48,268

SUPPLEMENTAL FINANCIAL INFORMATION

STOCK-BASED COMPENSATION EXPENSE

(Unaudited, in thousands)

		Three Months Ended June 30,								Six Months Ended June 30,
		2023				2022				2023				2022
Cost of revenue		$	1,150			$	1,198			$	2,297			$	2,505
Research and development			9,313				9,187				17,927				17,588
Selling, general and administrative			27,529				32,530				54,777				62,633
Total stock-based compensation expense		$	37,992			$	42,915			$	75,001			$	82,726

RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts)
		Three Months Ended June 30,								Six Months Ended June 30,
			2023				2022				2023				2022
Net income		$	99,504			$	114,679			$	209,306			$	194,245
Adjustments to reconcile net income to non-GAAP net income:
Stock-based compensation expense			37,992				42,915				75,001				82,726
Amortization of purchased intangible assets			33				33				66				66
Deferred compensation plan expense (income), net			260				(302	)			511				(475	)
Tax effect			(280	)			(314	)			(1,367	)			(1,276	)
Non-GAAP net income		$	137,509			$	157,011			$	283,517			$	275,286
Non-GAAP net income per share:
Basic		$	2.90			$	3.36			$	5.99			$	5.91
Diluted		$	2.82			$	3.25			$	5.82			$	5.70
Shares used in the calculation of non-GAAP net income per share:
Basic			47,489				46,675				47,361				46,550
Diluted			48,756				48,286				48,705				48,268
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited, in thousands)
		Three Months Ended June 30,								Six Months Ended June 30,
			2023				2022				2023				2022
Gross profit		$	247,675			$	270,961			$	506,455			$	489,841
Gross margin			56.1	%			58.8	%			56.8	%			58.4	%
Adjustments to reconcile gross profit to non-GAAP gross profit:
Stock-based compensation expense			1,150				1,198				2,297				2,505
Deferred compensation plan expense (income)			280				(48	)			460				(51	)
Non-GAAP gross profit		$	249,105			$	272,111			$	509,212			$	492,295
Non-GAAP gross margin			56.5	%			59.0	%			57.1	%			58.7	%
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
		Three Months Ended June 30,								Six Months Ended June 30,
			2023				2022				2023				2022
Total operating expenses		$	135,350			$	129,073			$	269,854			$	251,819
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:
Stock-based compensation expense			(36,842	)			(41,717	)			(72,704	)			(80,221	)
Amortization of purchased intangible assets			(33	)			(33	)			(66	)			(66	)
Deferred compensation plan income (expense)			(2,469	)			5,338				(5,073	)			7,701
Non-GAAP operating expenses		$	96,006			$	92,661			$	192,011			$	179,233
RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands)
		Three Months Ended June 30,								Six Months Ended June 30,
			2023				2022				2023				2022
Total operating income		$	112,325			$	141,888			$	236,601			$	238,022
Adjustments to reconcile total operating income to non-GAAP total operating income:
Stock-based compensation expense			37,992				42,915				75,001				82,726
Amortization of purchased intangible assets			33				33				66				66
Deferred compensation plan expense (income)			2,748				(5,387	)			5,533				(7,752	)
Non-GAAP operating income		$	153,098			$	179,449			$	317,201			$	313,062
RECONCILIATION OF OTHER INCOME (EXPENSE), NET, TO NON-GAAP OTHER INCOME, NET
(Unaudited, in thousands)
		Three Months Ended June 30,								Six Months Ended June 30,
			2023				2022				2023				2022
Total other income (expense), net		$	6,543			$	(5,092	)		$	11,840			$	(5,726	)
Adjustments to reconcile other income (expense), net to non-GAAP other income (expense), net:
Deferred compensation plan expense (income)			(2,488	)			5,085				(5,022	)			7,277
Non-GAAP other income (expense), net		$	4,055			$	(7	)		$	6,818			$	1,551
RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
(Unaudited, in thousands)
		Three Months Ended June 30,								Six Months Ended June 30,
			2023				2022				2023				2022
Total income before income taxes		$	118,868			$	136,796			$	248,441			$	232,296
Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:
Stock-based compensation expense			37,992				42,915				75,001				82,726
Amortization of purchased intangible assets			33				33				66				66
Deferred compensation plan expense (income), net			260				(302	)			511				(475	)
Non-GAAP income before income taxes		$	157,153			$	179,442			$	324,019			$	314,613

 

2023 THIRD QUARTER OUTLOOK

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited)

		Three Months Ending September 30, 2023
		Low				High
Gross margin			55.5	%			56.1	%
Adjustment to reconcile gross margin to non-GAAP gross margin:
Stock-based compensation expense			0.2	%			0.2	%
Non-GAAP gross margin			55.7	%			56.3	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

(Unaudited, in thousands)

		Three Months Ending September 30, 2023
		Low				High
Operating expenses		$	129,400			$	133,400
Adjustments to reconcile operating expenses to non-GAAP operating expenses:
Stock-based compensation expense			(32,500	)			(34,500	)
Non-GAAP operating expenses		$	96,900			$	98,900