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Management uses our non-GAAP financial measures, and in particular
non-GAAP operating loss, for internal managerial purposes because we
believe such measures are one important indicator of the strength and the
performance of our business because they provide a link to operating cash
flow. We also believe that analysts and investors use such measures to
evaluate the overall operating performance of companies in our industry,
including as a means of comparing period-to-period results and as a means
of evaluating our results with those of other companies.
Three Months Ended Nine Months Ended
December 31, December 31,
2007 2006 2007 2006
Gross Profit
GAAP gross profit $2,939,359 $1,406,092 $7,664,323 $3,922,700
% of sales 79% 65% 79% 69%
SFAS 123 (R) stock
option charges 9,008 - 18,695 1,361
Depreciation expenses 13,277 12,330 41,882 36,358
Non-GAAP gross
profit 2,961,644 1,418,422 7,724,900 3,960,419
Operating Expenses
GAAP operating
expenses 3,868,656 $2,459,060 $10,787,959 $8,040,105
SFAS 123 (R) stock
option charges 187,438 158,770 848,394 634,585
Depreciation
expenses 43,842 37,015 122,001 108,367
Amortization
expenses 209,862 25,210 632,865 78,323
Non-GAAP operating
expenses 3,427,514 2,238,065 9,184,699 7,218,830
Operating Loss
GAAP operating
loss
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