gt advanced technologies corporate overviewdoc.xueqiu.com/1442109a82c243fdcdcf0c58.pdf · 2014. 2....
TRANSCRIPT
GT Advanced Technologies
Corporate Overview
January 2014
©2013 GTAT Corporation. All rights reserved.
Forward Looking Statement
• This presentation contains information about
management’s future expectations, plans and
prospects of our business that constitute forward-
looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation
Reform Act of 1995.
• Please see final slide for additional information
regarding these statements.
2 ©2013 GTAT Corporation. All rights reserved.
©2013 GTAT Corporation. All rights reserved. 3
GT Advanced Technologies (“GT”) is a
diversified capital equipment maker
supplying leading crystal growth
technologies & process tools
– Serves the high growth global LED,
consumer electronics, power
electronics and solar industries
– A market share and technology
leader in each of its served markets
Building a sapphire materials business to
drive recurring revenues and take
advantage of industry leading cost
structure
Provider of advanced materials & innovative crystal growth equipment for a
diversified set of high-growth markets
Significant Growth Forecast In
Served Markets
Company Overview
GT Advanced Technologies Overview
LED &
Industrial
Solar ~100% of revenue
in CY2010
Power
Electronics
Consumer
Electronics &
Non-LED
©2013 GTAT Corporation. All rights reserved.
New products are expected to further diversify the business & drive growth
Select Applications
Note 1. Annealing, GaN HVPE,, HiCz™ and Hyperion products in development
4
GT’s Diversifying Product Portfolio
Low Cost LEDs
High Efficiency
Solar Panels
Display
Applications
Power Systems for
Electric Vehicles
Hyperion™ Ion
Implant1
Thin substrate solution targeted to deliver value across core and
new markets
LED & Industrial
Power
Electronics
GT’s Equipment Products
SiClone™
Silicon
Carbide
Systems
GaN HVPE 1 ASF® Systems Inspection Sys.
Solar HiCz™
Mono
Systems1
SDR™
Reactors
DSS™
Consumer
Electronics
& Non-LED
GaN HVPE1 ASF® Systems Inspection
ASF® Systems Annealing1 Inspection
©2013 GTAT Corporation. All rights reserved. 5
Combination of advanced equipment technology and new materials business to accelerate growth
Sapphire
materials business
New growth opportunities in
LED sector and as a
materials player in other
segments
Foundation of
core products &
equipment revenues
Market leading ASF ® platform
Large scale
Supply chain leverage
Expert team
Low cost structure
Opportunity to grow GT’s
LED sapphire business
Potential to add other
materials platforms
Base equipment growth
fueled by new products
Growing market opportunities
Serv
ed
Mark
ets
Consumer
Electronics &
Non-LED
LED &
Industrial
Power
Electronics
Advanced Solar
GT’s Evolving Business Model Drives Growth
Financial Overview
©2013 GTAT Corporation. All rights reserved.
$79
$164
$182
$88
$0.54
$1.13
$1.41
$0.73
-$0.50
$0.00
$0.50
$1.00
$1.50
$2.00
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
CY09 CY10 CY11 CY12
$M
M
Non-GAAP Net Income Non-GAAP EPS Diluted
©2013 GTAT Corporation. All rights reserved. 7
$M
M
GT has established a foundation for future growth through its diversification strategy
Historical Financial Performance
CY09 CY10 CY11 CY12
Sapphire $0.0 $8.9 $54.7 $224.0
Polysilicon $228.2 $194.9 $288.6 $460.6
PV $259.9 $618.2 $530.2 $48.9
Non-GAAP GrossMargin %
40% 41% 45% 38%
$488
$822
$874
$734
40% 41%
45%
38%
10%
15%
20%
25%
30%
35%
40%
45%
50%
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Revenue, Non-GAAP Gross Margin (%)
Non-GAAP EPS Fully-Diluted, Net Income
PV, $2
$301
$355
$0
$100
$200
$300
$400
$500
$600
$700
$800$658M Backlog
PV Poly Sapphire
$62
$4, Letters of Credit
$90
$502
Deferred Revenue (already shipped)
Letters of Credit
Non-Refundable Customer Deposits
Balance of Unshipped Orders
Reported Backlog Profile (as of September 28, 2013)
©2013 GTAT Corporation. All rights reserved. 8
Note: Certain amounts in the above chart may not sum due to rounding
Backlog Profile
($ in millions)
Growth & Diversification
Increased Shareholder Value
Supports Targeted Investment
To Preserve Balance Sheet
To Drive Organic
Growth/Diversification
$42.6
$70.6
$78.7
$0
$10
$20
$30
$40
$50
$60
$70
$80
CY11 CY12 LTM
Solid Balance Sheet, Continued Commitment to R&D
R&D Spending
Leaner Operations,
Targeted M&A Program
Focused R&D Solid Balance Sheet
$258 $261
-$25
$25
$75
$125
$175
$225
$275
$325
$375
As of Q3CY13
Cash and Cash Equivalents Debt
Cash Position
©2013 GTAT Corporation. All rights reserved.
($ millions) ($ millions)
9
LTM as of September 28, 2013
Sapphire Business
©2013 GTAT Corporation. All rights reserved. 10
Sapphire Business Snapshot
©2013 GTAT Corporation. All rights reserved. 11
Primary Products
• Crystal Growth
Technology: ASF®, KY
• Automated sapphire
inspection tools
• Annealing technology
• Sapphire materials
End Markets
• LED backlighting and
general illumination
• Non-LED devices
• Medical, Aerospace,
Military, Industrial
Market Position
• Market Leader; several
hundred ASFs in the field
• Establishing non-LED
sapphire materials business
• Driving technical
innovation, cost reduction
& new markets
Select Segment
Financials
•Backlog2: $355M
•LTM Revenue2: $35M
1 –In development 2 - As of 9/30/13
Sapphire Business Overview
©2013 GTAT Corporation. All rights reserved. 12
Sapphire Equipment Business
GT offers market-leading equipment solutions
that increase yields and lower costs, including:
• A variety of sapphire growth systems,
including the market leading ASF®
sapphire growth furnace
• Automated sapphire inspection tools
• Annealing furnace
Sapphire Materials Business
GT produces high-quality sapphire materials
for a wide variety of markets including
optical, photonics, POS and Ti:sapphire.
• In Nov 2013, GT signed a multi-year
sapphire materials supply agreement
with a leading OEM which is expected to
to provide GT with a platform for
recurring sapphire materials revenues
GT is a leading provider of sapphire production equipment solutions and
sapphire materials for a growing number of end market applications
What is Sapphire?
• Sapphire is a single crystal
Al2O3 (Alumina)
• Recognized for its high optical
performance and mechanical
strength
• Used in a wide range of
applications: LED substrates,
aerospace, armor, photonics,
dental, lasers, non-LED
electronics
©2013 GTAT Corporation. All rights reserved. 13
A boule of single crystal sapphire
Because of its strength and optical purity sapphire is used
in a wide range of applications
The ASF® Sapphire Growth Platform
• GT’s ASF® sapphire growth platform delivers high system throughput, high productivity and low cost of ownership
• ASF technology can be used to grow high quality sapphire for use in a variety of markets including LED, industrial, medical & non-LED
• GT is accelerating the development of its next generation, large capacity ASF furnaces to deliver low cost, high volume manufacturing of sapphire material
©2013 GTAT Corporation. All rights reserved. 14
GT’s proprietary ASF solution is built upon 40+ years of technical innovation
Heat extraction
Sapphire Business Drivers
• Overall sapphire market conditions have
continued to improve
• Sapphire demand/pricing has shown
strength driven largely by LED general
lighting and the emerging use of sapphire in
new applications
• GT’s ASF® customers continue to operate
at high utilization rates
• GT’s expanding sapphire materials
business is expected to provide a recurring
revenue stream and contribute to GT’s
diversification
©2013 GTAT Corporation. All rights reserved. 15
Sapphire business is expected to be a key driver of GT’s business in 2014
Solar Businesses: PV and Polysilicon
©2013 GTAT Corporation. All rights reserved. 16
Photovoltaic (PV) Business Snapshot
©2013 GTAT Corporation. All rights reserved. 17
1 –In development 2 - As of 9/30/13
HiCz™
DSS™650
Primary Products
• DSS™ Ingot Growth Systems
(DSS™MonoCast™,
DSS™450, DSS™450HP,
DSS™650, DSS™850)
• HiCz™ Monocrystalline
Growth Systems1
Market Position
• Market Leader ≈3400 DSS in the field2
• Enabled top PV players in the world
• Driving critical transition to Cz systems (HiCz™)
End Markets
• Solar
Select Segment
Financials
•Backlog2: $2M
•LTM Revenue2: $27M
PV Business Overview
• Market Leader with >3300 DSS Systems in the field
– Majority of the world’s multicrystalline silicon wafers
are produced from ingots grown in GT’s DSS
• Driving critical transition to higher efficiency, n-type monocrystalline materials with HiCz™
– HiCz is GT’s next-gen monocrystalline PV furnace
– Optimized to produce N-type silicon wafers that
enable high conversion efficiency cells
– In development for availability in late 2014
©2013 GTAT Corporation. All rights reserved. 18
Focused on enabling improved economics & efficiencies for PV manufacturing
HiCz™
DSS™450
PV Business Q3CY13 Update
• Encouraged by improving fundamentals in
the solar market. However, GT believes
the next major PV capital equipment cycle
is not likely to begin until late 2014 at the
earliest
• Continue to advance HiCz n-type material
solution
– Demonstrated HiCz’s unique capability
to grow high quality 10-meter long
ingots (3-4x length of typical batch Cz
process)
• HiCz market introduction targeted for late
2H 2014
©2013 GTAT Corporation. All rights reserved. 19
HiCz puller (above)
HiCz ingot (below)
Polysilicon Business Segment Snapshot
©2013 GTAT Corporation. All rights reserved. 20
Market Position
• Market Leader; >300 reactors in the field2
• Established merchant market in 2006
• Enabled OCI Top 3 polysilicon producer
1 –In development 2 - As of 9/30/13
Primary Products
• SDR reactors for
polysilicon growth
• Hydrochlorination, TCS &
Silane Equipment
• Engineering services
End Markets
• Solar (primary)
• Semiconductor
• Chemicals
Select Segment
Financials
• Backlog2: $301M
• LTM Revenue2: $307M
21
Polysilicon Business Overview
©2012 GTAT Corporation. All rights reserved.
• GT is a leading provider of key polysilicon equipment and technologies including:
– SDR Reactors (>300 shipped1)
– Hydrochlorination TCS equipment & services
• GT’s best-in-class polysilicon solutions can enable profitable polysilicon operation of <$14/kg cash costs
• Innovation drives market leadership
– GT’s Gen 7 reactor targets 10x productivity improvement, >60% energy savings compared to SDR100
21
GT is the established polysilicon merchant market leader
©2013 GTAT Corporation. All rights reserved.
1- As of Sep 30, 2013 *This is for informational purposes only and contains forward-looking statements for the purposes of the Safe Harbor provisions. The
Company reserves the right to modify or delete elements of its development plan and is under no obligation to update such plans.
Polysilicon Business Q3CY13 Update
• Remain optimistic about long term poly
opportunities
– Pipeline continues to develop
– Supply and demand are coming into
balance
– Expect poly pricing to stabilize over
next 6-9 months
– China’s preliminary ruling on silicon
tariffs favorable for GT’s largest
customers
• While polysilicon opportunities exist, GT
does not expect increase in bookings until
2015; polysilicon revenues likely to remain
light through 2014
©2013 GTAT Corporation. All rights reserved. 22
Hyperion™ Ion Implanter Technology
©2013 GTAT Corporation. All rights reserved. 23
Targets production of thin substrates with negligible kerf loss and lower consumable cost
Potential benefits of Hyperion Ion Implanter:
• Reduced material costs
• Elimination of grinding/thinning processes
• Potential for creation of advanced multi-layered substrates
Competitive Advantages:
• Targeted to be highest power/throughput commercial ion implanter
• Hyperion has 30 issued patents (US) and 30+ pending (US & Intl)
Targeted Applications:
• Thin sapphire laminates
• Thin solar wafers
• SiC exfoliates
Hyperion Business Update
• GT acquired the Hyperion technology in
November 2012
• GT has made significant progress across
several applications, including:
– Producing ultra-thin silicon wafers
– Developing low cost composite glass
and thin sapphire structures
– Thin, relatively inexpensive, SiC wafer
©2013 GTAT Corporation. All rights reserved. 24
• Pre-production Hyperion tool is in operation in GT’s development lab
• Targeting Hyperion market availability in 2015
• GT believes that the Hyperion business, once mature, could rival the
size of GT’s PV business at its peak
Pre-production Hyperion tool in Danvers,
MA Development Lab
HVPE - Path to Low Cost LED Manufacturing
• HVPE equipment is expected to
produce GaN templates w/ higher
quality, lower cost
• GT is developing a high-volume
production tool HVPE process
• GT has continued to receive very
positive feedback on HVPE from
market leaders, LED
manufacturers
• Targeting commercial availability at
back end of 2014; expect revenue to
ramp gradually starting in 2015
© 2013 GT AT Corporation. All Rights Reserved. 25
HVPE positions GT to participate in downstream LED manufacturing process
Hydride Vapor Phase Epitaxy (HVPE)
system currently in development
Key differentiators:
• >80% reduction in precursor
costs vs. traditional MOCVD
• Uniform multi-wafer via
proprietary injector system
• In-situ cleaning
HVPE – Breakthrough Value
© 2013 GT AT Corporation. All Rights Reserved. 26
Sapphire
uGaN
nGaN
SLS
MQWs
pGaN
Sapphire
Nucleation/Transition Layer
nGaN
SLS
pGaN
Current Process - MOCVD Only
MQWs
HVPE+MOCVD
MO
CV
D
AS
F®
AS
F®
M
OC
VD
H
VP
E
Benefits of HVPE
• Helps drive ~25% reduction in the Epi stack cost
(Higher growth rates, lower consumable/precursor costs)
• Increases LED quality (thicker/less defective nGaN layer)
• Significantly increases throughput/ reduces Capex for MOCVDs
pAlGaN pAlGaN
HVPE Solution Lowers CAPEX Expense
© 2013 GT AT Corporation. All Rights Reserved. 27
GT HVPE solution expected to lower CAPEX up to 25%
HVPE MOCVD
With HVPE Without HVPE
MOCVD
©2013 GTAT Corporation. All rights reserved.
• No other capable SiC merchant
equipment suppliers
• GT released its first generation silicon
carbide sublimation furnace in Q2 2013
and is developing differentiated process
recipes that will provide a path to
producing lower cost SiC
– Targeting 4” solution release in 1H14;
6” solution by end of 2014
• Expect SiC business will ramp slowly
given long design-in cycles for new
power devices
• Longer-term, growth opportunity is in
pairing SiC with Hyperion™ technology
Silicon Carbide (SiC) Sublimation Technology
28
GT SiClone™ sublimation furnace (above)
GT-grown SiC boules (below)
SiC is a high-temperature
semiconductor material used in
power electronics devices
Next-Gen Solar Update
• New technologies that drastically lower the cost of solar
manufacturing are key to sustained solar industry recovery
• In addition to HiCz™, GT continues to work on advanced
Polysilicon reactors & other technologies not yet disclosed
• As solar industry returns to health, GT expects to play an
important role in helping customers lower cost throughout
the process of manufacturing solar cells
©2013 GTAT Corporation. All rights reserved. 29
SE
RV
ED
MA
RK
ET
S
GT’s Business Model
©2013 GTAT Corporation. All rights reserved. 30
Crystal Growth
Si, SiC, GaN, Sapphire
Thin Wafer Tech.
Hyperion, Bonding
LED Mfg. Tools HVPE, PVD
Process Tools Anneal, Inspect, etc.
Equipment Business
Sapphire Materials
Materials Business
Potential Expansion Opportunities
Thin Wafers , Composites, Consumables
Consumer
Electronics
LED Manufacturing
Industrial/ Military
Power Electronics
Advanced Solar
Technology & Know-how Transfer
Thank You.
Investor Relations Contact: [email protected]
Media Contact:
©2013 GTAT Corporation. All rights reserved.
Forward Looking Statements Certain of the information in this presentation relates to the Company’s future expectations, plans and prospects for its business and industry that constitute "forward-looking
statements" for the purposes of the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to: the Company serves several high-
growth markets; Company is actively diversifying into new growth markets including next-gen solar, consumer electronics and power electronics; Company’s strong balance
sheet supports targeted investment; Company is targeting leaner operations and targeted M&A program (to preserve balance sheet); Company will continue focused R&D (with
intention to drive organic growth/diversification); Company intends to grow and diversify and increase shareholder value; Company positioned as the total solution for high
volume sapphire manufacturing; potential future applications for sapphire material; LED market environment is improving; sapphire is expected to be the key driver of the
Company’s business in 2H 2013 and through 2014; Company remains confident in ability to expand sapphire business into non-LED markets; Company confident that ASF
shipments and orders will resume in second half of the year based on LED and non-LED opportunities; Company’s innovation in polysilicon business drives market leadership;
future performance metrics for Gen 7 polysilicon reactor and targeting further future improvements (including with respect to output and energy consumption); the Company
having good visibility with respect to polysilicon revenue for the second half of 2013; polysilicon business’ order pipeline and backlog will drive polysilicon revenues over next
several years; there are projections of tightening polysilicon supply; China’s ruling on polysilicon imports will be favorable to the Company; Company’s PV business is driving
critical transition to higher efficiency, n-type monocrystalline materials with HiCz™; HiCz™ optimized to produce N-type silicon wafers that enable high conversion efficiency
cells; HiCz™ in development and will be available in late-2014; Company has continued success in converting DSS inventory to cash, albeit at low gross margins; Company
continues to make progress with HiCz™ tool; China’s commitment to increase domestic PV consumption; the next PV investment cycle will likely begin in late 2014/early 2015;
Company expects SiC business to ramp slowly and, in the longer-term, the higher growth opportunity with SiC is in pairing it with Company’s Hyperion technology; Hyperion tool
broadens potential applications by allowing high productivity at high film thickness; Company expects to take Hyperion technology to market in 2015; HVPE tool is expected to
lower the cost of LED production; HVPE will allow producers to better utilize their existing MOCVD capital assets, lower consumable costs and reduce cycle times; Company is
intending to grow based upon a diversified foundation; future product releases by the Company (and timing of product introductions); Company’s product roadmap; Hyperion is
targeting to drive performance/value advancements in several applications; Company’s financial guidance (including expected ranges of financial results) related to the calendar
year 2013 with respect to: revenue, gross margins, total operating expenses, R&D expenses, capital expenditures, non-GAAP earnings per share, and cash and cash
equivalents (at December 31, 2013); Company is driving technical innovation, cost reductions and new markets in sapphire industry; HiCz™ is targeted to enable critical move to
higher efficiency; cost per good kg Si produced and cell efficiency based on several technologies; and HiCz is targeted to enable 22%+ cell efficiencies which will be critical in
reducing total system costs ($/watt). These forward-looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many
of which are outside the Company's control, which could cause actual events to differ materially from those expressed or implied by the forward looking statements. These
factors may include the possibility that the Company is unable to recognize revenue on contracts in its order backlog. Although the Company's backlog is based on signed
purchase orders or other written contractual commitments in effect as of the end of our fiscal quarter ended June 29, 2013, we cannot guarantee that our bookings or order
backlog will result in actual revenue in the originally anticipated period or at all, which could reduce our revenue, profitability and liquidity. Other factors that may cause actual
events to differ materially from those expressed or implied by our forward-looking statements include the impact of continued decreased demand and/or excess capacity in the
markets for the output of our solar and sapphire equipment, general economic conditions and the tightening credit markets having an adverse impact on demand for the
Company’s products, trade disputes involving China, limited sales of PV equipment products, the possibility that changes in government incentives may reduce demand for solar
products, which would, in turn, reduce demand for our equipment, technological changes could render existing products or technologies obsolete, the Company may be unable to
protect its intellectual property rights, competition from other manufacturers may increase, exchange rate fluctuations and conditions in the credit markets and economy may
reduce demand for the Company's products and various other risks as outlined in GT Advanced Technologies Inc.'s filings with the Securities and Exchange Commission,
including the statements under the heading "Risk Factors" in the company's quarterly report on Form 10-Q for the quarter ended June 29, 2013. Statements in this presentation
should be evaluated in light of these important factors. The statements in this presentation represent GT Advanced Technologies Inc.'s expectations and beliefs as of the date
hereof. GT Advanced Technologies Inc. anticipates that subsequent events and developments may cause these expectations and beliefs to change. GT Advanced Technologies
Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events,
or otherwise.
©2013 GTAT Corporation. All rights reserved. 32
Non-GAAP Financial Measures
©2013 GTAT Corporation. All rights reserved. 33
December 31, December 31, January 1, December 26,
2012 2011 2011 2009
Non-GAAP Gross Profit and Gross Margin
Revenue $733,536 $873,442 $822,033 $488,113
Cost of revenue 527,132 482,106 487,831 302,742
Gross profit 206,404 391,336 334,202 185,371
Non-GAAP adjustments:
Write-down of inventory and vendor advances 71,754 - - 11,587
Accelerated depreciation for early retirement of fixed assets 2,520 - - -
Non-GAAP gross profit $280,678 $391,336 $334,202 $196,958
Non-GAAP gross margin 38.3% 44.8% 40.7% 40.4%
Twelve Months Ended
GT Advanced Technologies Inc.
Reconciliation of GAAP to non-GAAP results
(In thousands, except per share data)
(Unaudited)
Non-GAAP Financial Measures
©2013 GTAT Corporation. All rights reserved. 34
December 31, December 31, January 1, December 26,
2012 2011 2011 2009
Non-GAAP Net Income & Earnings per Share
Net income ($63,235) $156,218 $156,132 $65,743
Non-GAAP adjustments:
Amortization of acquired intangible assets 10,165 6,630 4,313 3,163
Share-based compensation expense 15,176 13,118 7,531 4,806
Third party acquisition related expenses 1,550 3,574 785 -
Write-down of inventory and vendor advances 71,754 - - 11,587
Accelerated depreciation for early retirement of fixed assets 2,520 - - -
Impairment of goodwill 57,037 - - -
Restructuring charges and asset impairments 33,441 - - -
Contingent consideration (income) expense (8,965) 5,193 1,000 -
Non-cash portion of interest expense 3,799 9,942 652 360
Income tax effect of non-GAAP adjustments (1) (35,349) (12,989) (6,900) (7,064)
Non-GAAP net income $87,893 $181,686 $163,513 $78,595
Non-GAAP earnings per diluted share ("Non-GAAP EPS") $0.73 $1.41 $1.13 $0.54
Diluted weighted average shares outstanding 120,067 128,680 145,150 145,034
(1) The Company utilized the with and without method to determine the income tax effect on non-GAAP adjustments.
Twelve Months Ended
GT Advanced Technologies Inc.
Reconciliation of GAAP to non-GAAP results
(In thousands, except per share data)
(Unaudited)
Use of Non-GAAP Financial Measures
©2013 GTAT Corporation. All rights reserved. 35
In addition to providing financial measurements based on generally accepted accounting principles in the United States of
America (GAAP), GT Advanced Technologies is providing additional financial metrics that are not prepared in accordance with
GAAP (non-GAAP). We believe that the inclusion of these non-GAAP financial measures helps investors to gain a meaningful
understanding of our past performance and future prospects, consistent with how management measures and forecasts
company performance, especially when comparing such results to previous periods or forecasts. Our management uses these
non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and
comparing our performance to prior periods and to the performance of our competitors. Management also uses these
measures in its financial and operational decision-making.
We define “non-GAAP gross profit” as GAAP gross profit excluding inventory and vendor advance write-downs and the
accelerated depreciation for early retirement of fixed assets. We consider non-GAAP gross profit to be an important indicator of
our operational strength and performance of our business because it eliminates the effects of events that are not part of the
Company's core operations.
We define "non-GAAP net income" as GAAP net income excluding share-based compensation expense, amortization of
acquired intangible assets, acquisition and acquisition related expenses, contingent consideration, inventory and vendor advance
write-downs, goodwill impairment, restructuring and asset impairment, and the non-cash portion of interest expense. We consider
non-GAAP net income to be an important indicator of our operational strength and performance of our business because it
eliminates the effects of events that are not part of the Company's core operations.
We define "non-GAAP earnings per share on a fully-diluted basis" as our non-GAAP net income divided by our weighted average
shares outstanding on a fully-diluted basis.