SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549  
 
 
FORM 6-K
 

 
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of February 2020
 
Commission File Number: 001-36625  
 

 
CyberArk Software Ltd.
(Translation of registrant’s name into English)  
 

 
CyberArk Software Ltd.
9 Hapsagot St.
Park Ofer 2, POB 3143
Petach-Tikva, 4951041 Israel
 (Address of principal executive offices)  
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
 
Form 20-F ☒            Form 40-F ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐
 

 
EXPLANATORY NOTE

On February 12, 2020, CyberArk Software Ltd. (the “Company”), issued a press release entitled “CyberArk Announces Record Fourth Quarter and Full Year 2019 Results.” A copy of this press release is furnished as Exhibit 99.1 herewith.

Other than as indicated below, the information in this Form 6-K (including in Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

The U.S. GAAP financial information contained in (i) the consolidated balance sheets, (ii) consolidated statements of operations and (iii) consolidated statement of cash flows included in the press release attached as Exhibit 99.1 to this Report on Form 6-K are hereby incorporated by reference into the Company’s Registration Statements on Form S-8 (File Nos. 333-200367, 333- 202850, 333-216755, 333-223729 and 333-230269).

2


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
CYBERARK SOFTWARE LTD.
       
Date: February 12, 2020
 
 
 
By:
 
/s/ Joshua Siegel
 
 
 
 
 
 
Name: Joshua Siegel
 
 
 
 
 
 
Title:   Chief Financial Officer
 

3

EXHIBIT INDEX

     
Exhibit
  
Description
   

 

4




Exhibit 99.1

   

CyberArk Announces Record Fourth Quarter and Full Year 2019 Results
Fourth quarter total revenue of $129.7 million increases 19% year-over-year
Fourth quarter GAAP operating income of $22.9 million and non-GAAP operating income of $42.1 million
Full year total revenue of $433.9 million increases 26% year-over-year
Full year GAAP operating income of $62.3 million and non-GAAP operating income of $123.4 million
Full year net cash provided by operating activities of $141.7 million

Newton, Mass. and Petach Tikva, Israel – February 12, 2020 – CyberArk, (NASDAQ: CYBR), the global leader in privileged access management, today announced record financial results for the fourth quarter and year ended December 31, 2019.

“Our record fourth quarter results capped off another great year of strong growth driven by disciplined investments,” said Udi Mokady, CyberArk Chairman and CEO. “We were thrilled to win a record number of logos in the fourth quarter, signing nearly 300 new customers. Throughout 2019, organizations continued to recognize that protecting privileged access is foundational to a comprehensive security program and increasingly turned to CyberArk as a trusted advisor, particularly to secure mission-critical digital transformation and cloud migration strategies.  Our clear leadership position in the market and ongoing commitment to deliver innovation, positions us well to deliver profitable growth in 2020 and beyond.”

Financial Highlights for the Fourth Quarter Ended December 31, 2019

Revenue:


Total revenue was $129.7 million, up 19% compared with the fourth quarter of 2018.

License revenue was $76.5 million, up 15% compared with the fourth quarter of 2018.

Maintenance and Professional Services revenue was $53.1 million, up 26% compared with the fourth quarter of 2018.

Operating Income:
 

GAAP operating income was $22.9 million, compared to $27.5 million in the fourth quarter of 2018.  Non-GAAP operating income was a record $42.1 million, compared to $39.8 million in the fourth quarter of 2018.
 
Net Income:


GAAP net income was $20.7 million, or $0.53 per diluted share, compared to GAAP net income of $24.2 million, or $0.64 per diluted share, in the fourth quarter of 2018.  Non-GAAP net income was a record $37.8 million, or $0.97 per diluted share, compared to $33.4 million, or $0.89 per diluted share, in the fourth quarter of 2018.



Financial Highlights for the Full Year Ended December 31, 2019

Revenue:


Total revenue was $433.9 million, up 26% compared with 2018.

License revenue was $237.9 million, up 24% compared with 2018.

Maintenance and Professional Services revenue was $196.0 million, up 30% compared with 2018.

Operating Income:
 

GAAP operating income was $62.3 million, compared to $47.3 million in 2018.  Non-GAAP operating income was $123.4 million, compared to $90.5 million in 2018.
 
Net Income:


GAAP net income was $63.1 million, or $1.62 per diluted share, compared to GAAP net income of $47.1 million, or $1.27 per diluted share, in 2018. Non-GAAP net income was $107.9 million, or $2.77 per diluted share, compared to $76.5 million, or $2.06 per diluted share, in 2018.

The tables at the end of this press release include a reconciliation of GAAP to non-GAAP gross profit, operating income and net income for the three months and year ended December 31, 2019 and 2018. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Balance Sheet and Cash Flow From Operations:
 

As of December 31, 2019, CyberArk had $1.1 billion in cash, cash equivalents, marketable securities and short-term deposits. This compares to $451.2 million in cash, cash equivalents, marketable securities and short-term deposits as of December 31, 2018.
 

As of December 31, 2019, total deferred revenue was $190.4 million, a 27% increase from $149.5 million at December 31, 2018.
 

During 2019, the Company generated $141.7 million in net cash provided by operating activities compared to $130.1 million in 2018.

Business Outlook
Based on information available as of February 12, 2020, CyberArk is issuing guidance for the first quarter and full year 2020 as indicated below.
 
First Quarter 2020:
 

Total revenue is expected to be in the range of $106.0 million to $110.0 million.

Non-GAAP operating income is expected to be in the range of $16.5 million to $19.5 million.

Non-GAAP net income per share is expected to be in the range of $0.35 to $0.41 per share. This assumes 39.6 million weighted average diluted shares.
 

Full Year 2020:
 

Total revenue is expected to be in the range of $511.0 million to $519.0 million.

Non-GAAP operating income is expected to be in the range of $109.0 million to $115.0 million.

Non-GAAP net income per share is expected to be in the range of $2.26 to $2.38 per share. This assumes 39.8 million weighted average diluted shares.
 
Conference Call Information
 
In conjunction with this announcement, CyberArk will host a conference call on Wednesday, February 12, 2020 at 8:30 a.m. Eastern Time (ET) to discuss the company’s fourth quarter and year end financial results and its business outlook. To access this call, dial +1 877-823-7693 (U.S.) or +1 647-689-4543 (international).  The conference ID is 7689662. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s website at www.cyberark.com.

Following the conference call, a replay will be available for one week at +1 800-585-8367 (U.S.) or +1 416-621-4642 (international). The replay pass code is 7689662. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s website at www.cyberark.com.

About CyberArk                                                                                                       
CyberArk, (NASDAQ: CYBR) is the global leader in privileged access management, a critical layer of IT security to protect data, infrastructure and assets across cloud and hybrid environments, and throughout the DevOps pipeline. CyberArk delivers the industry’s most complete solution to reduce risk created by privileged credentials and secrets. The company is trusted by the world’s leading organizations, including more than 50% of the Fortune 500, to protect against external attackers and malicious insiders. A global company, CyberArk is headquartered in Petach Tikva, Israel, with U.S. headquarters located in Newton, Mass. The company also has offices throughout the Americas, EMEA, Asia Pacific and Japan. To learn more about CyberArk, visit www.cyberark.com, read the CyberArk blogs or follow on Twitter via @CyberArk, LinkedIn or Facebook.
 
Copyright © 2020 CyberArk Software. All Rights Reserved. All other brand names, product names, or trademarks belong to their respective holders.
 
Non-GAAP Financial Measures
CyberArk believes that the use of non-GAAP gross profit, non-GAAP operating income and non-GAAP net income is helpful to our investors. These financial measures are not measures of the Company’s financial performance under U.S. GAAP and should not be considered as alternatives to gross profit, operating income or net income or any other performance measures derived in accordance with GAAP.


Non-GAAP gross profit is calculated as gross profit excluding share-based compensation expense and amortization of intangible assets related to acquisitions.
 

Non-GAAP operating income is calculated as operating income excluding share-based compensation expense, acquisition related expenses, facility exit and transition costs and amortization of intangible assets related to acquisitions.
 

Non-GAAP net income is calculated as net income excluding share-based compensation expense, acquisition related expenses, facility exit and transition costs, amortization of intangible assets related to acquisitions, intra-entity intellectual property transfer tax effect, amortization of debt discount and issuance costs and the tax effect of other non-GAAP adjustments.
 

The Company believes that providing non-GAAP financial measures that exclude, as applicable, share-based compensation expense, acquisition related expenses, amortization of intangible assets related to acquisitions, facility exit and transition costs, intra-entity intellectual property transfer tax effect, non-cash interest expense related to the amortization of debt discount and issuance costs and the tax effect of the non-GAAP adjustments allows for more meaningful comparisons of its period to period operating results. Share-based compensation expense has been and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business and an important part of the compensation provided to its employees. Share based compensation expense has varying available valuation methodologies, subjective assumptions and a variety of equity instruments that can impact a company’s non-cash expense.  The Company believes that expenses related to its acquisitions and amortization of intangible assets related to acquisitions, facility exit and transition costs, intra-entity intellectual property transfer tax effect and non-cash interest expense related to the amortization of debt discount and issuance costs do not reflect the performance of its core business and impact period-to-period comparability.
 
Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company’s industry, as other companies in the industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items. In addition, there are limitations in using non-GAAP financial measures as they exclude expenses that may have a material impact on the Company’s reported financial results. The presentation of non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. CyberArk urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business.

Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense, acquisition related expenses, facility exit and transition costs, amortization of intangible assets related to acquisitions, intra-entity intellectual property transfer tax effect, non-cash interest expense related to the amortization of debt discount and issuance costs and the tax effect of the other non-GAAP adjustments. A reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability and significance of, the amounts of share-based compensation expense, amortization of intangible assets related to acquisitions, and the non-recurring expenses that are excluded from the guidance. Accordingly, a reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures for future periods is not available without unreasonable effort.
 
Cautionary Language Concerning Forward-Looking Statements
 
This release contains forward-looking statements, which express the current beliefs and expectations of CyberArk’s (the “Company”) management. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions.  Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: changes in the rapidly evolving cyber threat landscape; failure to effectively manage growth; the Company’s ability to increase its sales of software as a service (“SaaS”) solutions, while supporting and maintaining multiple software pricing and delivery models; near-term declines in our operating and net profit margins and our revenue growth rate; real or perceived shortcomings, defects or vulnerabilities in the Company’s solutions or internal network system, or the failure of  the Company’s customers or channel partners to correctly implement the Company’s solutions; fluctuations in quarterly results of operations; the inability to acquire new customers or sell additional products and services to existing customers; competition from IT security vendors; the Company’s ability to successfully integrate recent and or future acquisitions; the Company’s ability to comply with evolving laws and regulations, including those relating to privacy and data protection; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
 
###

Investor Contact:
Erica Smith
CyberArk
617-558-2132
ir@cyberark.com

Media Contact:
Liz Campbell
CyberArk
617-558-2191
press@cyberark.com



 
 
 CYBERARK SOFTWARE LTD.
 Consolidated Statements of Operations
 U.S. dollars in thousands (except per share data)
(Unaudited)

 
 
Three Months Ended
   
Twelve Months Ended
 
 
 
December 31,
   
December 31,
 
 
 
2018
   
2019
   
2018
   
2019
 
 
                       
Revenues:
                       
 License
 
$
66,769
   
$
76,526
   
$
192,514
   
$
237,879
 
 Maintenance and professional services
   
42,281
     
53,138
     
150,685
     
196,016
 
 
                               
       Total revenues
   
109,050
     
129,664
     
343,199
     
433,895
 
 
                               
 Cost of revenues:
                               
 License
   
3,005
     
2,801
     
10,526
     
10,569
 
 Maintenance and professional services
   
10,316
     
14,048
     
37,935
     
52,046
 
 
                               
        Total cost of revenues
   
13,321
     
16,849
     
48,461
     
62,615
 
 
                               
 Gross profit
   
95,729
     
112,815
     
294,738
     
371,280
 
 
                               
 Operating expenses:
                               
 Research and development
   
15,340
     
20,930
     
57,112
     
72,520
 
 Sales and marketing
   
40,307
     
52,939
     
148,290
     
184,168
 
 General and administrative
   
12,561
     
16,005
     
42,044
     
52,308
 
 
                               
        Total operating expenses
   
68,208
     
89,874
     
247,446
     
308,996
 
 
                               
 Operating income
   
27,521
     
22,941
     
47,292
     
62,284
 
 
                               
 Financial income, net
   
1,078
     
2,394
     
4,551
     
7,800
 
 
                               
 Income before taxes on income
   
28,599
     
25,335
     
51,843
     
70,084
 
 
                               
 Taxes on income
   
(4,419
)
   
(4,599
)
   
(4,771
)
   
(7,020
)
 
                               
 Net income
 
$
24,180
   
$
20,736
   
$
47,072
   
$
63,064
 
 
                               
 Basic net income per ordinary share
 
$
0.66
   
$
0.55
   
$
1.30
   
$
1.68
 
 Diluted net income per ordinary share
 
$
0.64
   
$
0.53
   
$
1.27
   
$
1.62
 
 
                               
 Shares used in computing net income
                               
 per ordinary shares, basic
   
36,570,609
     
37,957,899
     
36,174,316
     
37,586,387
 
 Shares used in computing  net income
                               
 per ordinary shares, diluted
   
37,607,625
     
39,148,849
     
37,065,727
     
38,890,108
 

 Share-based Compensation Expense:

 
 
Three Months Ended
   
Twelve Months Ended
 
 
 
December 31,
   
December 31,
 
 
 
2018
   
2019
   
2018
   
2019
 
 
                               
 Cost of revenues
 
$
980
   
$
1,802
   
$
3,350
   
$
5,690
 
 Research and development
   
2,174
     
3,347
     
7,922
     
10,960
 
 Sales and marketing
   
3,647
     
6,464
     
12,708
     
20,976
 
 General and administrative
   
3,493
     
6,418
     
11,984
     
17,891
 
 
                               
 Total share-based compensation expense
 
$
10,294
   
$
18,031
   
$
35,964
   
$
55,517
 

 


 CYBERARK SOFTWARE LTD.
 Consolidated Balance Sheets
 U.S. dollars in thousands
 (Unaudited)

 
 
December 31,
   
December 31,
 
 
 
2018
   
2019
 
 
           
 ASSETS
           
 
           
 CURRENT ASSETS:
           
 Cash and cash equivalents
 
$
260,636
   
$
792,363
 
 Short-term bank deposits
   
106,399
     
140,067
 
 Marketable securities
   
59,948
     
132,412
 
 Trade receivables
   
48,431
     
72,953
 
 Prepaid expenses and other current assets
   
6,349
     
8,406
 
 
               
 Total current assets
   
481,763
     
1,146,201
 
 
               
 LONG-TERM ASSETS:
               
 Property and equipment, net
   
15,120
     
16,472
 
 Intangible assets, net
   
14,732
     
9,143
 
 Goodwill
   
82,400
     
82,400
 
 Marketable securities
   
24,261
     
54,408
 
 Other long-term assets
   
31,863
     
72,091
 
 Deferred tax asset
   
23,481
     
24,451
 
 
               
 Total long-term assets
   
191,857
     
258,965
 
 
               
 TOTAL ASSETS
 
$
673,620
   
$
1,405,166
 
 
               
 LIABILITIES AND SHAREHOLDERS' EQUITY
               
 
               
 CURRENT LIABILITIES:
               
 Trade payables
 
$
4,924
   
$
5,675
 
 Employees and payroll accruals
   
32,853
     
41,345
 
 Accrued expenses and other current liabilities
   
13,271
     
27,132
 
 Deferred revenues
   
92,375
     
118,519
 
 
               
 Total current liabilities
   
143,423
     
192,671
 
 
               
 LONG-TERM LIABILITIES:
               
 Deferred revenues
   
57,159
     
71,836
 
 Other long-term liabilities
   
6,268
     
31,408
 
 Convertible senior notes, net
   
-
     
485,119
 
 
               
 Total long-term liabilities
   
63,427
     
588,363
 
 
               
 TOTAL LIABILITIES
   
206,850
     
781,034
 
 
               
 SHAREHOLDERS' EQUITY:
               
 Ordinary shares of NIS 0.01 par value
   
95
     
99
 
 Additional paid-in capital
   
303,900
     
396,437
 
 Accumulated other comprehensive income (loss)
   
(939
)
   
818
 
 Retained earnings
   
163,714
     
226,778
 
 
               
 Total shareholders' equity
   
466,770
     
624,132
 
 
               
 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
 
$
673,620
   
$
1,405,166
 


 
CYBERARK SOFTWARE LTD.
 Consolidated Statements of Cash Flows
 U.S. dollars in thousands
 (Unaudited)

 
 
Twelve Months Ended
 
   
December 31,
 
 
 
2018
   
2019
 
 
           
 Cash flows from operating activities:
           
 Net income
 
$
47,072
   
$
63,064
 
 Adjustments to reconcile net income to net cash
               
 provided by operating activities:
               
 Depreciation and amortization
   
10,078
     
10,646
 
 Amortization of premium and accretion of discount on marketable securities, net
   
293
     
(47
)
 Share-based compensation
   
35,964
     
55,517
 
 Deferred income taxes, net
   
(7,056
)
   
(6,974
)
 Increase in trade receivables
   
(3,116
)
   
(24,522
)
 Amortization of debt discount and issuance costs
   
-
     
1,966
 
 Increase in prepaid expenses and other current and long-term assets
   
(11,893
)
   
(14,321
)
 Increase in trade payables
   
1,955
     
1,571
 
 Increase in short-term and long-term deferred revenues
   
47,818
     
40,821
 
 Increase in employees and payroll accruals
   
6,896
     
7,337
 
 Increase in accrued expenses and other current and long-term liabilities
   
2,114
     
6,652
 
 
               
 Net cash provided by operating activities
   
130,125
     
141,710
 
 
               
 Cash flows from investing activities:
               
 Proceeds from (Investment in) short and long term deposits
   
1,600
     
(33,961
)
 Investment in marketable securities
   
(61,118
)
   
(165,714
)
 Proceeds from maturities of marketable securities
   
37,838
     
63,489
 
 Purchase of property and equipment
   
(8,613
)
   
(7,036
)
 Payments for business acquisitions, net of cash acquired
   
(18,450
)
   
-
 
 
               
 Net cash used in investing activities
   
(48,743
)
   
(143,222
)
 
               
 Cash flows from financing activities:
               
 Proceeds from withholding tax related to employee stock plans
   
-
     
1,155
 
 Proceeds from the issuance of convertible senior notes, net of issuance costs
   
-
     
560,107
 
 Purchase of capped calls
   
-
     
(53,648
)
 Proceeds from exercise of stock options
   
17,980
     
24,428
 
 
               
 Net cash provided by financing activities
   
17,980
     
532,042
 
 
               
 Increase in cash, cash equivalents and restricted cash
   
99,362
     
530,530
 
 
               
 Cash, cash equivalents and restricted cash at the beginning of the period
 
$
162,521
   
$
261,883
 
 
               
 Cash, cash equivalents and restricted cash at the end of the period
 
$
261,883
   
$
792,413
 


 
 
CYBERARK SOFTWARE LTD.
 Reconciliation of GAAP Measures to Non-GAAP Measures
 U.S. dollars in thousands (except per share data)
(Unaudited)

 Reconciliation of Gross Profit to Non-GAAP Gross Profit:
 
 
 
 
 
 
 

 
 
Three Months Ended
   
Twelve Months Ended
 
 
 
December 31,
   
December 31,
 
 
 
2018
   
2019
   
2018
   
2019
 
 
                       
 Gross profit
 
$
95,729
   
$
112,815
   
$
294,738
   
$
371,280
 
 Plus:
                               
 Share-based compensation - Maintenance & professional services
   
980
     
1,802
     
3,350
     
5,690
 
 Amortization of intangible assets - License
   
1,445
     
968
     
5,563
     
5,029
 
 
                               
 Non-GAAP gross profit
 
$
98,154
   
$
115,585
   
$
303,651
   
$
381,999
 

 Reconciliation of Operating Income to Non-GAAP Operating Income:
 
 
 
 
 
 

 
 
Three Months Ended
   
Twelve Months Ended
 
 
 
December 31,
   
December 31,
 
 
 
2018
   
2019
   
2018
   
2019
 
 
                       
 Operating income
 
$
27,521
   
$
22,941
   
$
47,292
   
$
62,284
 
 Plus:
                               
 Share-based compensation
   
10,294
     
18,031
     
35,964
     
55,517
 
 Amortization of intangible assets - Cost of revenues
   
1,445
     
968
     
5,563
     
5,029
 
 Amortization of intangible assets -  Sales and marketing
   
198
     
144
     
793
     
576
 
 Acquisition related expenses
   
-
     
-
     
268
     
-
 
 Facility exit and transitions costs
   
327
     
-
     
580
     
-
 
 
                               
 Non-GAAP operating income
 
$
39,785
   
$
42,084
   
$
90,460
   
$
123,406
 

 Reconciliation of Net Income to Non-GAAP Net Income:
 
 
 
 
 
 
 

 
 
Three Months Ended
   
Twelve Months Ended
 
 
 
December 31,
   
December 31,
 
 
 
2018
   
2019
   
2018
   
2019
 
 
                       
 Net income
 
$
24,180
   
$
20,736
   
$
47,072
   
$
63,064
 
 Plus:
                               
 Share-based compensation
   
10,294
     
18,031
     
35,964
     
55,517
 
 Amortization of intangible assets - Cost of revenues
   
1,445
     
968
     
5,563
     
5,029
 
 Amortization of intangible assets -  Sales and marketing
   
198
     
144
     
793
     
576
 
 Acquisition related expenses
   
-
     
-
     
268
     
-
 
 Facility exit and transitions costs
   
327
     
-
     
580
     
-
 
 Amortization of debt discount and issuance costs
   
-
     
1,966
     
-
     
1,966
 
 Taxes on income related to non-GAAP adjustments
   
(2,528
)
   
(4,014
)
   
(15,485
)
   
(18,251
)
 Intra-entity IP transfer tax effect, net
   
(475
)
   
-
     
1,768
     
-
 
 
                               
 Non-GAAP net income
 
$
33,441
   
$
37,831
   
$
76,523
   
$
107,901
 
 
                               
 Non-GAAP net income per share
                               
 Basic
 
$
0.91
   
$
1.00
   
$
2.12
   
$
2.87
 
 Diluted
 
$
0.89
   
$
0.97
   
$
2.06
   
$
2.77
 
 
                               
 Weighted average number of shares
                               
 Basic
   
36,570,609
     
37,957,899
     
36,174,316
     
37,586,387
 
 Diluted
   
37,607,625
     
39,148,849
     
37,065,727
     
38,890,108