Non-GAAP EPS is defined as non-GAAP net income divided by the weighted average number of shares on a fully-diluted basis.
Non-GAAP gross profit and gross margin consists of GAAP gross profit and gross margin excluding share-based compensation expense under SFAS No 123R.
Non-GAAP operating expenses consists of GAAP operating expenses excluding share-based compensation expense under SFAS No. 123R, amortization of purchased intangibles, settled securities litigation and CEO transition expenses.
Non-GAAP income from operations consists of GAAP income from operations excluding share-based compensation expense under SFAS No. 123R and amortization of purchased intangibles.
Non-GAAP tax rate consists of the GAAP tax rate adjusted for the tax effect of the adjustments from GAAP net income to non-GAAP net income.
Management believes that it is useful in measuring Thoratec's
operations to exclude amortization of intangibles, and in-process research
and development expenses. These costs are primarily fixed at the time of an
acquisition and, unlike other fixed costs that result from ordinary
operations, are the result of infrequent and irregular events. Management
also believes that it is useful to exclude settled securities litigation
and CEO transition expenses because these expenses occur infrequently and
therefore are not relevant to an understanding of our core operating
performance. Management believes it is useful to exclude the value of the
make-whole provision of our convertible notes as this item is also not
indicative of Thoratec's core operating business. The make-whole provision
is a non-operating item that is included in other income (expens
|SOURCE Thoratec Corporation|
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