

NOTE 12.	Quarterly Financial Information (Unaudited)

The following table sets forth unaudited consolidated statements of operations data for each of the quarters in the two-year period ended December 31, 2015. The unaudited quarterly consolidated statements of operations data set forth below have been prepared on the same basis as the audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K and, in the opinion of management, reflect all necessary adjustments, which consist only of normal recurring adjustments, necessary for a fair presentation of such data. Historical results are not necessarily indicative of the results for the full year or any other period. This data should be read together with the consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K.



	Three Months Ended
	Mar. 31, 2014			Jun. 30, 2014		Sep. 30, 2014			Dec. 31, 2014			Mar. 31, 2015			Jun. 30, 2015		Sep. 30, 2015			Dec. 31, 2015
	(unaudited)
	(in thousands, except per share data)
Revenues	$	30,356		$	32,302	$	34,348		$	36,573		$	37,493		$	39,877	$	42,469		$	44,445
Cost of revenues	6,846			7,175		7,421			7,521			7,964			8,157		8,762			9,002
Gross profit	23,510			25,127		26,927			29,052			29,529			31,720		33,707			35,443
Operating expenses:
Research and development	6,404			6,411		6,490			7,015			7,150			7,205		7,564			7,532
Sales and marketing	12,492			11,845		11,774			11,938			11,443			12,776		12,282			13,068
General and administrative	4,875			5,081		5,156			5,888			6,016			6,427		6,983			7,147
Total operating expenses	23,771			23,337		23,420			24,841			24,609			26,408		26,829			27,747
Income (loss) from operations	(261		)	1,790		3,507			4,211			4,920			5,312		6,878			7,696
Other income (expense), net	12			41		(119		)	(568		)	(77		)	128		(154		)	(183		)
Income (loss) before income taxes	(249		)	1,831		3,388			3,643			4,843			5,440		6,724			7,513
Provision for (benefit from) income taxes⁽¹⁾	182			174		283			(22,270		)	1,841			2,124		2,601			2,089
Net income (loss)	$	(431	)	$	1,657	$	3,105		$	25,913		$	3,002		$	3,316	$	4,123		$	5,424
Net income (loss) per share:
Basic	$	(0.01	)	$	0.05	$	0.09		$	0.77		$	0.09		$	0.10	$	0.12		$	0.16
Diluted	$	(0.01	)	$	0.04	$	0.08		$	0.69		$	0.08		$	0.09	$	0.11		$	0.14

⁽¹⁾ Provision for income taxes consists primarily of taxes on income in foreign jurisdictions and state income taxes in the U.S. In the fourth quarter of 2014, the Company recorded a tax benefit of $23.7 million to recognize its U.S. federal and certain state deferred tax assets.