Brocade Reports Fiscal Q2 2017 Results SAN JOSE,

SAN JOSE, CA--(Marketwired - May 25, 2017) - Brocade^® (NASDAQ: BRCD) today reported financial results for its second fiscal quarter, ended April 29, 2017. Brocade reported second quarter revenue of $553 million, up 6% year-over-year and down 5% quarter-over-quarter. The Company reported a GAAP diluted loss per share of $0.03, down from diluted earnings per share (EPS) of $0.11 in Q2 2016 and down from a diluted loss per share of $0.01 in Q1 2017. Non-GAAP diluted EPS was $0.10 for Q2 2017, down from non-GAAP diluted EPS of $0.22 and $0.16 in Q2 2016 and Q1 2017, respectively. The year-over-year decline in both GAAP and non-GAAP diluted EPS is primarily due to lower SAN and wired IP Networking revenue and the incremental operating expenses associated with the Ruckus Wireless acquisition. In addition, the year-over-year decline in GAAP diluted EPS also reflects the inclusion of certain acquisition-related expenses that negatively impacted Q2 2017 results. The sequential decline in the GAAP diluted loss per share and non-GAAP diluted EPS is primarily due to seasonally lower SAN revenue.

In light of the pending acquisition of Brocade by Broadcom Limited, Brocade will not provide fiscal Q3 2017 guidance and will not hold a conference call to discuss these financial results.

Key Financial Metrics:

	Q2 2017				Q1 2017				Q2 2016				Q2 2017 vs. Q1 2017		Q2 2017 vs. Q2 2016
Revenue	$	553	M		$	581	M		$	523	M		(5%)		6%
GAAP earnings (loss) per share--diluted	$	(0.03	)		$	(0.01	)		$	0.11			93%		(126%)
Non-GAAP EPS--diluted	$	0.10			$	0.16			$	0.22			(37%)		(52%)
GAAP gross margin		62.0	%			63.1	%			66.9	%		(1.1) pts		(4.9) pts
Non-GAAP gross margin		65.3	%			66.6	%			68.2	%		(1.3) pts		(2.9) pts
GAAP operating margin		(1.1	)%			0.7	%			15.8	%		(1.8) pts		(16.9) pts
Non-GAAP operating margin		11.1	%			15.5	%			22.4	%		(4.4) pts		(11.3) pts

Please see important note of explanation about the use of non-GAAP financial measures below, including a detailed reconciliation between GAAP and non-GAAP information in the tables included herein.

Highlights:

• SAN product revenue of $282 million was down 5% year-over-year. The decline was primarily the result of lower director and embedded switch sales, which declined 6% and 12% year-over-year, respectively. The year-over-year revenue performance was impacted by competition from alternative storage networking technologies and architectures, and customer uncertainty surrounding the pending acquisition of Brocade by Broadcom. Sequentially, SAN product revenue decreased 8%, consistent with historical seasonal revenue trends, with fixed-configuration and embedded switch revenues down 15% and 18%, respectively, partially offset by a 4% increase in director revenue.
  
  
• IP Networking product revenue of $173 million, including $71 million of product revenue from Ruckus Wireless, was up 32% year-over-year. The increase was primarily due to added wireless revenue following the acquisition of Ruckus Wireless in the third quarter of fiscal year 2016, partially offset by lower wired switch and router revenue, due in part to Broadcom's planned divestiture of Brocade's IP Networking business. Sequentially, IP Networking product revenue was flat.
  
  

Board Declares Dividend:

• The Brocade Board of Directors has declared a regular third fiscal quarter cash dividend of $0.055 per share of the Company's common stock. The dividend payment will be made on July 5, 2017, to stockholders of record at the close of market on June 12, 2017.
  
  

Other Q2 2017 product, customer, and partner announcements are available at http://newsroom.brocade.com/.

Brocade (www.brocade.com)
130 Holger Way, San Jose, CA 95134
T. 408.333.8000 F. 408.333.8101

Financial Highlights and Additional Financial Information

		Q2 2017			Q1 2017			Q2 2016
Routes to market as a % of total net revenues:
	OEM revenues	55	%		57	%		63	%
	Channel/Direct revenues	45	%		43	%		37	%
	10% or greater customer revenues	27	%		19	%		30	%
Geographic split as a % of total net revenues (1):
	Domestic revenues	50	%		47	%		53	%
	International revenues	50	%		53	%		47	%
Segment split as a % of total net revenues:
	SAN product revenues	51	%		53	%		57	%
	IP Networking product revenues	31	%		30	%		25	%
	Global Services revenues	18	%		17	%		18	%
	SAN business revenues (2)	60	%		62	%		67	%
	IP Networking business revenues (2)	40	%		38	%		33	%

Additional information:			Q2 2017				Q1 2017				Q2 2016
	GAAP net income (loss) attributable to Brocade		$	(11	)M		$	(6	)M		$	43	M
	Non-GAAP net income attributable to Brocade		$	43	M		$	68	M		$	89	M
	GAAP operating income (loss)		$	(6	)M		$	4	M		$	83	M
	Non-GAAP operating income		$	61	M		$	90	M		$	117	M
	GAAP effective tax rate			44.2	%			45.6	%			41.6	%
	Non-GAAP effective tax rate			16.1	%			13.6	%			20.8	%
	Cash and cash equivalents		$	1,300	M		$	1,230	M		$	1,428	M
	Capital expenditures		$	8	M		$	12	M		$	19	M
	Cash provided by (used in) operations		$	108	M		$	(3	)M		$	112	M
	Days sales outstanding			43 days				41 days				36 days
	Employees at end of period			5,524				5,823				4,724
	SAN port shipments			0.8	M			0.9	M			0.8	M
	Share repurchases		$	-			$	-			$	36.4	M

Please see important note of explanation about the use of non-GAAP financial measures below, including a detailed reconciliation between GAAP and non-GAAP information in the tables included herein.

(1)	Revenues are attributed to geographic areas based on known product delivery location. Since some OEM partners take delivery of Brocade products domestically and then ship internationally to their end users, the percentage of international revenues based on end-user location would likely be higher.
(2)	SAN and IP Networking business revenues include hardware and software product, support, and services revenues.

Non-GAAP Financial Measures

To supplement financial information presented on a GAAP basis, Brocade provides information presented on a non-GAAP basis. These non-GAAP financial measures include non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP operating income, non-GAAP tax rate, non-GAAP net income, and non-GAAP EPS. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, financial information presented on a GAAP basis. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. The most directly comparable GAAP information and a reconciliation between the GAAP and non-GAAP amounts is provided in the tables at the end of this press release.

Management believes that the non-GAAP financial measures used in this press release allow management to gain a better understanding of Brocade's comparative operating performance, both from period to period and relative to its competitors. These non-GAAP financial measures also help with the determination of Brocade's baseline performance before gains, losses or charges that are considered by management to be outside of ongoing operating results. Accordingly, management uses these non-GAAP financial measures for planning and forecasting of future periods and in making decisions regarding operations and the allocation of resources.

Management believes these non-GAAP financial measures, when read in conjunction with Brocade's GAAP financials, provide useful information to investors by offering:

• the ability to make more meaningful period-to-period comparisons of Brocade's ongoing operating results;
  
  
• the ability to make more meaningful comparisons of Brocade's operating performance relative to its competitors;
  
  
• the ability to better identify trends in Brocade's underlying business and to perform related trend analyses; and
  
  
• a better understanding of how management plans and measures Brocade's underlying business.
  
  

In determining non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP operating income, non-GAAP tax rate, non-GAAP net income and non-GAAP EPS, management excludes certain gains or losses and benefits or costs that are the result of events that arise outside the ordinary course of Brocade's continuing operations. Management believes that it is appropriate to evaluate Brocade's operating performance by excluding those items that are not indicative of ongoing operating results or limit comparability. Such items include, but are not limited to: (i) impact to cost of revenues from purchase accounting adjustments to inventory; and (ii) acquisition, divestiture, and integration costs.

Management also excludes the following non-cash charges in determining these non-GAAP financial measures: (i) stock-based compensation expense; (ii) amortization of purchased intangible assets; and (iii) non-cash interest expense related to the convertible debt.

Management believes that the exclusion of stock-based compensation allows for more accurate comparisons of Brocade's operating results to Brocade's peer companies. This is due to the varying use of valuation methodologies and subjective assumptions and the variety of award types. In addition, the exclusion of the expense associated with the amortization of acquisition-related intangible assets is appropriate because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have short lives, and the exclusion of amortization expense allows comparisons of operating results that are consistent over time for Brocade's newly acquired and long-held businesses. In connection with the convertible debt, under the relevant accounting guidance, a non-cash interest expense is recognized for the convertible debt as an imputed interest expense for the conversion feature. Management believes excluding the non-cash interest expense related to the convertible debt from its non-GAAP financial measures is useful for investors because the expense does not represent a cash outflow in the respective reporting periods and is not indicative of ongoing operating performance.

Finally, management believes that it is appropriate to exclude the tax effects of the items noted above and (i) tax charges and benefits related to unusual or infrequent intercompany transactions; (ii) tax charges or benefits that are a result of the implementation of restructuring plans; and (iii) tax charges resulting from the integration of intellectual property assets from acquisitions. Management believes that the exclusion of these items from its non-GAAP tax provision provides a more meaningful measure of Brocade's operational performance of non-GAAP net income and non-GAAP EPS.

Limitations: These non-GAAP financial measures have limitations because they do not include all items of income and expense that impact the company. In addition, these non-GAAP financial measures may not be comparable to similar measurements reported by other companies. Management compensates for these limitations by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. Management also provides robust and detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure, and management encourages investors to review carefully those reconciliations.

Forward-Looking Statements

This press release contains forward-looking statements including, but not limited to, statements regarding Brocade's financial results, goals, plans, strategy, business outlook and prospects. These statements are based on current expectations as of the date of this press release and involve a number of risks, uncertainties and assumptions that may cause actual results to differ significantly. The risks, uncertainties and assumptions include, but are not limited to: the effect on Brocade of increasing market competition and changes in the industry; the impact on Brocade of conditions in the market for Storage Area Networking products; Brocade's ability to execute on its sales strategy and plans for future operations; the impact on Brocade of macroeconomic trends and events and changes in IT spending levels; Brocade's ability to introduce and achieve market acceptance of new products and support offerings on a timely basis; risks associated with Brocade's international operations; and integration and other risks associated with acquisitions, divestitures and strategic investments. The risks, uncertainties and assumptions also include, but are not limited to: the risk that the proposed acquisition by Broadcom may not be completed in a timely manner or at all, which may adversely affect Brocade's business and the price of the common stock of Brocade; the failure to satisfy any of the conditions to the consummation of the proposed transaction, including the receipt of certain governmental and regulatory approvals; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; the effect of the announcement or pendency of the proposed transaction on Brocade's business relationships, operating results and business generally; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed transaction; risks related to diverting management's attention from Brocade's ongoing business operations; the outcome of legal proceedings that have been and may in the future be instituted against Brocade related to the merger agreement or the proposed transaction; and unexpected costs, charges or expenses resulting from the proposed transaction. Certain of these and other risks are set forth in more detail in Brocade's Form 10-Q for the fiscal quarter ended January 28, 2017, and in Brocade's Annual Report on Form 10-K for the fiscal year ended October 29, 2016. Brocade does not assume any obligation to update or revise any such forward-looking statements whether as the result of new developments or otherwise.

About Brocade

Brocade (NASDAQ: BRCD) networking solutions help the world's leading organizations turn their networks into platforms for business innovation. With solutions spanning public and private data centers to the network edge, Brocade is leading the industry in its transition to the New IP network infrastructures required for today's era of digital business. (www.brocade.com)

Brocade and the B-wing symbol are registered trademarks of Brocade Communications Systems, Inc., in the United States and many other countries. Other brands, products, or service names mentioned herein may be trademarks of Brocade or others. Additional information about Brocade's trademarks is available at: http://www.brocade.com/en/legal/brocade-Legal-intellectual-property/brocade-legal-trademarks.html.

© 2017 Brocade Communications Systems, Inc. All Rights Reserved.

BROCADE COMMUNICATIONS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
				Three Months Ended								Six Months Ended
				April 29, 2017				April 30, 2016				April 29, 2017				April 30, 2016
				(In thousands, except per share amounts)
Net revenues:
	Product			$	455,107			$	428,193			$	935,724			$	909,360
	Service				97,646				95,113				198,492				188,230
		Total net revenues			552,753				523,306				1,134,216				1,097,590
Cost of revenues:
	Product				164,738				132,208				331,393				276,305
	Service				45,255				40,787				92,940				82,159
		Total cost of revenues			209,993				172,995				424,333				358,464
Gross margin					342,760				350,311				709,883				739,126
Operating expenses:
	Research and development				119,545				89,263				243,048				182,520
	Sales and marketing				172,315				148,933				352,516				300,760
	General and administrative				31,016				22,791				64,513				45,220
	Amortization of intangible assets				7,582				902				15,176				1,804
	Acquisition, divestiture, and integration costs				18,236				5,757				36,273				5,757
	Restructuring and other related benefits				-				-				-				(566	)
		Total operating expenses			348,694				267,646				711,526				535,495
Income (loss) from operations					(5,934	)			82,665				(1,643	)			203,631
Interest expense					(15,949	)			(9,955	)			(31,442	)			(19,820	)
Interest and other income, net					2,098				1,091				2,556				1,760
Income (loss) before income tax					(19,785	)			73,801				(30,529	)			185,571
Income tax expense (benefit)					(8,753	)			30,716				(13,653	)			48,840
Net income (loss)				$	(11,032	)		$	43,085			$	(16,876	)		$	136,731
Less: Net loss attributable to noncontrolling interest				$	(65	)		$	--			$	(228	)		$	--
Net income (loss) attributable to Brocade Communications Systems, Inc.				$	(10,967	)		$	43,085			$	(16,648	)		$	136,731
Net income (loss) per share--basic attributable to Brocade Communications Systems, Inc. stockholders				$	(0.03	)		$	0.11			$	(0.04	)		$	0.34
Net income (loss) per share--diluted attributable to Brocade Communications Systems, Inc. stockholders				$	(0.03	)		$	0.11			$	(0.04	)		$	0.33
Shares used in per share calculation--basic					408,589				400,554				406,792				404,228
Shares used in per share calculation--diluted					408,589				408,748				406,792				411,917
Cash dividends declared per share				$	0.055			$	0.045			$	0.110			$	0.090

BROCADE COMMUNICATIONS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
			Three Months Ended							Six Months Ended
			April 29, 2017				April 30, 2016			April 29, 2017				April 30, 2016
			(In thousands)
Net income (loss)			$	(11,032	)		$	43,085		$	(16,876	)		$	136,731
Other comprehensive income and loss, net of tax:
	Unrealized gains (losses) on cash flow hedges:
		Change in unrealized gains and losses		576				1,964			167				(336	)
		Net gains and losses reclassified into earnings		251				724			436				1,350
	Net unrealized gains on cash flow hedges			827				2,688			603				1,014
	Foreign currency translation adjustments			2,023				2,070			663				(133	)
Total other comprehensive income				2,850				4,758			1,266				881
Total comprehensive income (loss)			$	(8,182	)		$	47,843		$	(15,610	)		$	137,612
Less: Net loss attributable to noncontrolling interest				(65	)			--			(228	)			--
Less: Total other comprehensive loss attributable to noncontrolling interest				(4	)			--			(72	)			--
Total comprehensive income (loss) attributable to Brocade Communications Systems, Inc.			$	(8,113	)		$	47,843		$	(15,310	)		$	137,612

BROCADE COMMUNICATIONS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
			April 29, 2017				October 29, 2016
			(In thousands, except par value)
ASSETS
Current assets:
	Cash and cash equivalents		$	1,299,660			$	1,257,075
	Accounts receivable, net of allowances for doubtful accounts of $1,965, and $1,736 as of April 29, 2017, and October 29, 2016, respectively			260,343				284,344
	Inventories			78,467				69,355
	Prepaid expenses and other current assets			69,100				62,236
		Total current assets		1,707,570				1,673,010
Property and equipment, net				434,795				455,326
Goodwill				2,291,246				2,295,184
Core/developed technology intangible assets, net				227,199				248,938
Other intangible assets, net				182,152				200,840
Non-current deferred tax assets				27,995				12,736
Other assets				46,273				53,777
		Total assets	$	4,917,230			$	4,939,811
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts payable		$	111,980			$	128,685
	Accrued employee compensation			163,949				154,165
	Deferred revenue			214,103				221,940
	Current portion of long-term debt			76,765				76,692
	Other accrued liabilities			121,805				113,170
		Total current liabilities		688,602				694,652
Long-term debt, net of current portion				1,472,501				1,502,063
Non-current deferred revenue				87,352				90,051
Non-current income tax liability				91,964				102,100
Other non-current liabilities				4,538				5,370
		Total liabilities		2,344,957				2,394,236
Commitments and contingencies
Stockholders' equity:
Brocade stockholders' equity:
	Preferred stock, $0.001 par value, 5,000 shares authorized, no shares issued and outstanding			--				--
	Common stock, $0.001 par value, 800,000 shares authorized:
		Issued and outstanding: 409,865 and 401,748 shares as of April 29, 2017, and October 29, 2016, respectively		410				402
	Additional paid-in capital			1,601,809				1,514,730
	Accumulated other comprehensive loss			(26,147	)			(27,413	)
	Retained earnings			993,767				1,055,194
		Total Brocade stockholders' equity		2,569,839				2,542,913
Noncontrolling interest				2,434				2,662
		Total stockholders' equity	$	2,572,273			$	2,545,575
		Total liabilities and stockholders' equity	$	4,917,230			$	4,939,811

BROCADE COMMUNICATIONS SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
				Six Months Ended
				April 29, 2017				April 30, 2016
				(In thousands)
Cash flows from operating activities:
	Net income (loss)			$	(16,876	)		$	136,731
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
		Excess tax benefits from stock-based compensation			(2,220	)			(10,987	)
		Depreciation and amortization			82,643				45,839
		Loss on disposal of property and equipment			464				437
		Amortization of debt issuance costs and debt discount			10,511				8,704
		Provision (recovery) for doubtful accounts receivable and sales allowances			2,320				(1,083	)
		Non-cash purchase accounting adjustments to inventory			3,921				--
		Non-cash stock-based compensation expense			70,745				48,833
	Changes in assets and liabilities, net of acquisitions:
		Accounts receivable			21,681				32,051
		Inventories			(2,177	)			(424	)
		Prepaid expenses and other assets			602				(1,882	)
		Deferred tax assets			48				(74	)
		Accounts payable			(24,986	)			(5,127	)
		Accrued employee compensation			(9,858	)			(21,136	)
		Deferred revenue			(11,536	)			(11,715	)
		Other accrued liabilities			(19,708	)			5,500
		Restructuring liabilities			(330	)			(1,035	)
			Net cash provided by operating activities		105,244				224,632
Cash flows from investing activities:
	Purchases of non-marketable equity and debt investments				--				(2,000	)
	Purchases of property and equipment				(19,851	)			(42,425	)
	Net cash paid in connection with acquisitions				--				(8,061	)
	Proceeds from collection of note receivable				250				250
			Net cash used in investing activities		(19,601	)			(52,236	)
Cash flows from financing activities:
	Payment of principal related to the term loan				(40,000	)			--
	Payment of principal related to capital leases				--				(197	)
	Common stock repurchases				--				(180,848	)
	Proceeds from issuance of common stock				39,693				20,512
	Payment of cash dividends to stockholders				(44,780	)			(36,445	)
	Excess tax benefits from stock-based compensation				2,220				10,987
			Net cash used in financing activities		(42,867	)			(185,991	)
	Effect of exchange rate fluctuations on cash and cash equivalents				(191	)			356
	Net increase (decrease) in cash and cash equivalents				42,585				(13,239	)
	Cash and cash equivalents, beginning of period				1,257,075				1,440,882
	Cash and cash equivalents, end of period			$	1,299,660			$	1,427,643

BROCADE COMMUNICATIONS SYSTEMS, INC. RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES (Unaudited)
			Three Months Ended
			April 29, 2017				January 28, 2017				April 30, 2016
			(In thousands, except per share amounts)
Non-GAAP adjustments
	Stock-based compensation expense included in cost of revenues		$	3,234			$	5,650			$	3,531
	Amortization of intangible assets expense included in cost of revenues			12,679				13,060				3,193
	Purchase accounting adjustments to inventory			2,384				1,537				-
		Total gross margin impact from non-GAAP adjustments		18,297				20,247				6,724
	Stock-based compensation expense included in research and development			6,631				12,074				5,123
	Stock-based compensation expense included in sales and marketing			9,779				16,815				11,052
	Stock-based compensation expense included in general and administrative			6,645				10,975				5,083
	Amortization of intangible assets expense included in operating expenses			7,582				7,594				902
	Acquisition, divestiture, and integration costs			18,236				18,037				5,757
		Total operating income impact from non-GAAP adjustments		67,170				85,742				34,641
	Convertible debt interest			4,018				3,968				3,824
	Effects of certain intercompany transactions on the tax provision			-				-				13,670
	Income tax effect of non-GAAP adjustments			(17,029	)			(15,639	)			(6,329	)
		Total net income impact from non-GAAP adjustments	$	54,159			$	74,071			$	45,806
Gross margin reconciliation
	GAAP gross margin		$	342,760			$	367,123			$	350,311
	Total gross margin impact from non-GAAP adjustments			18,297				20,247				6,724
		Non-GAAP gross margin	$	361,057			$	387,370			$	357,035
	GAAP gross margin, as a percentage of total net revenues			62.0	%			63.1	%			66.9	%
	Non-GAAP gross margin, as a percentage of total net revenues			65.3	%			66.6	%			68.2	%
Operating income reconciliation
	GAAP operating income (loss)		$	(5,934	)		$	4,291			$	82,665
	Total operating income impact from non-GAAP adjustments			67,170				85,742				34,641
		Non-GAAP operating income	$	61,236			$	90,033			$	117,306
	GAAP operating income (loss), as a percentage of total net revenues			(1.1	)%			0.7	%			15.8	%
	Non-GAAP operating income, as a percentage of total net revenues			11.1	%			15.5	%			22.4	%
Net income (loss) and net income (loss) per share attributable to Brocade reconciliation
	Net income (loss) attributable to Brocade on a GAAP basis		$	(10,967	)		$	(5,681	)		$	43,085
	Total net income impact from non-GAAP adjustments			54,159				74,071				45,806
		Non-GAAP net income attributable to Brocade	$	43,192			$	68,390			$	88,891
	GAAP net income (loss) per share--basic attributable to Brocade		$	(0.03	)		$	(0.01	)		$	0.11
	Total impact on net income (loss) per share--basic from non-GAAP adjustments			0.14				0.18				0.11
		Non-GAAP net income per share--basic attributable to Brocade	$	0.11			$	0.17			$	0.22
	GAAP net income (loss) per share--diluted attributable to Brocade		$	(0.03	)		$	(0.01	)		$	0.11
	Total impact on net income (loss) per share--diluted from non-GAAP adjustments			0.13				0.17				0.11
		Non-GAAP net income per share--diluted attributable to Brocade	$	0.10			$	0.16			$	0.22
	Shares used in GAAP and non-GAAP per share calculation--basic			408,589				404,995				400,554
	Shares used in GAAP per share calculation--diluted			408,589				404,995				408,748
	Shares used in non-GAAP per share calculation--diluted			419,614				415,861				408,748
Effective tax rate reconciliation
	GAAP income (loss) before income tax			(19,785	)			(10,744	)			73,801
	Total operating income impact from non-GAAP adjustments			67,170				85,742				34,641
	Convertible debt interest			4,018				3,968				3,824
		Non-GAAP income before income tax		51,403				78,966				112,266
	GAAP income tax expense (benefit)			(8,753	)			(4,900	)			30,716
	Effects of certain intercompany transactions on the tax provision			-				-				(13,670	)
	Income tax effect of non-GAAP adjustments			17,029				15,639				6,329
		Non-GAAP income tax expense		8,276				10,739				23,375
	GAAP income (loss) before income tax			(19,785	)			(10,744	)			73,801
	GAAP income tax expense (benefit)			(8,753	)			(4,900	)			30,716
	GAAP effective tax rate			44.2	%			45.6	%			41.6	%
	Non-GAAP income before income tax			51,403				78,966				112,266
	Non-GAAP income tax expense			8,276				10,739				23,375
	Non-GAAP effective tax rate			16.1	%			13.6	%			20.8	%